The Huttig news., 1917-05-19
To Farm Loan Associations.

etdfy-tfeaSureT Benton Coun- ty National Farm Loan association what this land bank is doing and when it will be making loans:
 St. Louis, May g, 1917. My dear Mir. Rice:
 Your letter just received, and as the questions you ask are those that naturally come to the mind of members of a national farm loan association or the individual farmer who hopes to become a member of such an association and thus be eligible to borrow on his farm lands from this land bank in this district, am going into some details so as to answer your ques- tions fully.
 First-l want to call attention to the fact that this land bank was only chartered and organized to get ready for business on March l |. last. We have. therefore, had these past two months March and Aprll-in which to get quarters, work out the many forms for the National Farm Loan association and the necessary book forms for the bank, and have these forms printed, after being finally approved by the farm loan board, and ready for use. Sixty days is a small time in which to do as much work as has been done by this bank in this di- rection.
 Now, farmers who are members Of the National Farm Loan asso- citations that were organized last fall, must naturally feel some dis appointment in the fact that their land bank has not begun operation and is not now actually lending the money to them unless they stop to think and consider the facts as outlined in the paragraph above.
 Second, the next step necessary for this land bank. and the most essential one of all, was to deter mine a permanent and rapid outlet or market for our farm loan bonds. for when you understand that five appraisers working in Illinois, Mis- souri and Arkansas, would be able to absorb this banks entire capital in sixty days work, you will readily see that we must have a market for our bonds issued against these mortgage loans, so that we can im- mediately convert the bonds into money and continue making loans.
 This immediate conversibility of our bonds is the point that has been occupying the attention of the members of the joint commit tee on currency of the senate and the house of representatives. and the entire federal farm loan board at Washington. We are advised that this question will be finally settled in way that will result in a contract that is soon to be closed for the purchase of one-half of all the bonds issued by all the twelve land banks for the next six months, at par, leaving the land banks only half of the bonds that they may is- sue to sell to the public.
 This land bank is now receiving subscriptions to it's farm loan bonds from the public and, from the nun : Der of subscriptions that are com ing in voluntarily by mail and in person of the subscribers them selves, 1 can say that there will be no question about the sale of the bonds of this land bank all of these as fast as we can get them out, if the present demand is any criterion. One single subscription of yesterday was $2OO.OOO-by an Illinois banker and capitalist. The bond subscriptions vary from this amount down to as low as $500.
 You must bear in mind that these farm loan bonds bear 4 l2 per cent interest and under the terms of the farm loan act, the mortgage, notes and farm loan bonds issued under the pro- of th,c ara 1oapoad and