Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1917-04-20
Application Made to New
Spokane Bank Already
Reach Eight Millions
400 LOCALS ORGANIZED
Large Payments Expected
From Government Loan
OF Initial Capital

SPOKANE, April 19.-Applications
already are on file with the federal
farm loan bank of Spokane for loans
aggregating $S,0OO,OOO on the mini
mum estimate of $4,000 to each
farm loan association, according to
the announcement yesterday of d. G.
O'Shea, president. The directors after
two weeks of strenuous work have
almost reached the bottom of the pile
of correspondence that was waiting
here for them.
A. w. Cauthorn was assigned the
task of tabulating the applications
from farm loan associations actually
received and the inquiries from others
in process of formation. His figures,
announced by President O'Shea, show
that about 400 of these organizations
are formed or are being formed.
Many Associations Formed
They are divided by states .as fol-
lows: Washington, 1872; Idaho, 100;
Oregon, 100; Montana, so (incom-
plete).
Mr.. O'Shea stated that the Montana
figures when completed would bring
the grand total easily up to 400 asso-
Citations. On top of these figures a
large batch of applications secured
by an easern publication reached the
bank late yesterday afternoon too late
for tabulation and do not appear in
the figures given.
Minimum Loan $4,000.
Each association represents mini
mum of 10 farmers wanting a total
minimum loan of $4,000. No smaller
organizations or loans can be consid-
cred under the law. Many of the as
sociations have as many as so men,
bers and at least one has applied for
loans aggrcgating 100000 and there
are several which desire 100000.
Four hundred associations, if recog-
nized, and their applications, if ap-
proved, on the basis of 500, 900, the
minimum, will require $S,OOO,OOO i'm
mediately.
The banks initial capital is $780,
00O AS yet only small portion has
reached the bank, that raised by pub
lie subscription, which in the case of
the Spokane bank is approximately
$4,000. This sum is hardly sufficient
working capital to furnish the offices
with the necessary equipment Large
payments are expected soon from the
government, which subscribes to all
stock not taken up by the general
public.
Business of 100000 900
when the federal farm loan bank
Of Spokane is established in running
order our loan business will total
500. 900, ,G00," said Mr. O'Shea. THAT
is the loaning demand of our district
according to conservative estimate.
The war will not in the least affect
the operation of the farm loan banks.
The farm loan bonds should prove
more popular with investors than even
the war bonds that may be put on
sale and already we have many in
quiries concerning them"
Mr. O'Shea called attention to the
fact that bonds will be issued to the
general public to bear interest at Az
per cent in denominations of $25, $50,
$1OO, $500 and $1,000. While the Gus
tOmary procedure of advertising for
bids on the issues may be followed,
the bonds will also be on sale to in
dividual investors over the bank
counters at par as demanded. 1t will
not be practicable to dispose of the
entire issues in this way but the man
with small capital can purchase the
bonds direct if he cares to. 1t is be-
lieved they will attract much capital
now lying in savings accounts.
No Notice Of Appraisers.
The bank has received no notifica-
ton of the appointment from Wash
ington of the chief of appraisers and
his staff, who will pass on the farm
lands on which loans are asked.
Meanwhile the perfection of the or
ganization of the farm loan associa.
ton along lines set down in the law
is being pushed Each association is
virtually a branch of the Spokane
bank