The Springdale news., 1917-05-18
ABOUT FEDERAL LAND BANKS
Letter Gives Detailed information
Relative to Land Bank at st. Louie

In view Of the fact that Spring
dale has National Farm Loan Asso-
citation, the following letter from Vim.
S. Mitchell, treasurer of the bank at
St Louis will be of special interest.
1t gives detailed information as to
how a farmer can become member
of a Loan Association, and much 9TH
er information.
Springdale is under the jurisdiction
of the St. Louis Bank.
St. Louis, May 9, 1917.
My Dear Mr. Rice:
Your letter just received and as the
questions you ask are those that nat
urally come to the mind CT members
of National Farm Loan Association
or the individual farmer who hopes
to become member of such an Asso-
cation, and thus be eligible to Dor
row on his farm from this Land Bank
in this district, | am going into some
detail so as to answer your questions
fully.
FIRST want to call attention to
the fact that this Land Bank was
only chartered and organized TO get
ready for business on March /, last.
We have therefore, had these past
two months-March and April-in
which TO get quarters, work out the
many forms for the National Farm
Loan Associations and the necessary
book forms for the Bank, and have
these forms printed. after being f.
nally approved by the Farm Loan
Board, and ready for use. Sixty
days is a small time IN which TO Go as
much work as has been done by this
Bank in this direction
Nov, farmers who are members Of
National Farm Loan Associations
that We're organized last fan, must
naturally feel some disappointment
in the fact that their Land Bank has
not begun operations and IS not now
actually lending the money 70 them
unless they stop to think and con-
slider the facts as outlined IN the par
agraph above
SECOND-The next step necessary
for this Land Bank. and the most es-
sential one Of all, was to determine
a permanent and rapid outlet, or
market for eur Farm Loan Bonds, for
when you understand that five Ap-
praisers working III Illinois, Missouri
and Arkansas, would be able to absorb
tins Banks entire capital IN loans
sixty days work you uill readily see
that We must have q market Tor
Bonds issued against these mortgage
loans, 50 that we can immed ately
convert the Bonds INTO money and
continue making loans.
This immediate convertibiity q our
Bonds IS the point that has been oeeu-
~ the attention Of the members q
The Joint Committee on Currency Of
the Senate and House Of Representa-
tives, and the entire Federal Farm
Loan Board at Washington We are
advised that this question "il. De =
nally settled IA way that VII re-
suit in a contract that is soon to be
closed, for ne purchase c. one-half q
all the Bones issued BY all he y
Land Banks for he next So months
al par. leaving the Land Banks only
half Of the bonds that they may issue
to sell 20 the public.
This Land Bank is nov receiving
subscr ptions to It's Farm Loan Bonds
from the public. and, from the number
Of subscriptions that are coming in
voluntarily by mail. aud IN person Of
the subscribers themselves, l can say
that there viii be no question sbout
the sale Of the Bonds of this Land
Bank-all of these as fast as We can
get them out, II present demand IS
any criterion Ore single subscrip-
ton OF yesterday was $2o0,00oo1-by
an Illinois Banker and Capitalist
The Bond subser ptions vary fro'e
this amount down to as Jew as LEO
You must bear IN miad that =. S
interest. ana under the terms o. dc
Earr7 aau Rop1e hear - npr Z. N