Middletown transcript., 1917-03-17
FARM LOAN BANK
TO OPEN SOON
Officers and Directors Will
Meet Next Week.
MAY BEGIN BUSINESS MAY |.
Banking House Not Yet Selected.
Field Force and Farmers As
sociation To Be Or
qanized.

"A Iue0LluS OI the OuCSIS duu uAASSs
ors of the Baltimore Farm Loan Bank
will be called within week or 10 days
to arrange for the opening of that IN
stitution and to make recommends
tions to the farm loan board for the
subordinate officers of the bank.
In the meantime George H. Steven.
son, president; D. Fred Shamberger,
vice-president; J. H. Hosinger, treas
urer, and Robert Catlett, counsel OF
the Baltimore bank, will be called to
Washington for conference with the
members of the Federal board. All
essential details of the organization
will be taken up there before the Bal
timore meeting.
President Has Fine Record.
The announcement of Mr.. Steven
sons appointment as president ofs the
bank has been received with pleasure
by his many friends among the farm
ers of Maryland. His record gives a
good idea of what may be expected of
him. He conducted the farm loan
business of big firm in Oklahoma and
bears the reputation of not having lost
a cent either of principal or interest
on any loan made by him during his
connection with the firm.
For several years he was specialist
on country agent work for the United
States Department of Agriculture
This work took him all over the coun-
II q n
expositions and promoted others. He
lives at Bel Alton, Md.
Mr.. Shamberger is a graduate of the
Maryland Agricultural College and is
president of the Maryland Roads AS
sociation. He has always had the
farmers interests at heart and has
worked for the promotion of co-opera-
ton among those engaged in agricuI
ture.
May Be Opened About May I.
1t is doubtful if the Baltimore Bank
will be ready to open before May 1. A
banking house must be found, furnish
ed and manned. A field force must be
selected and local associations of farm
ers desiring loans organized. These
important matters for the most part,
have been held up, pending the selec-
ton of officers and directors.
The capital of the Baltimore bank is
fixed at $750,000. Most of this was
subscribed by the Government itself,
and the money in lump sum is now
in the United States Treasury awaiting
the demand of the farmers in the Bal
t1more district for loans. The fund
will be transferred to Baltimore as
soon as required.
Officials in Washington have figured
that the cost Of operating the Balti-
more bank will not exceed one-half of
one per cent. In order to provide a
margin for possible miscalculation, in
that direction, the Farm Loan Board is
expected to fix the interest rate a,
5k per cent. and the bond rate at Az
per cent. AS soon as practicable, the
board is expected to reduce the inter-
est rate to 5 per cent, but for year
or SO may hold it at the higher figure
to meet organization and other ex-
penses.
To Discuss Sale Of Bonds.
No decision has been reached as to
the method of disposing of land bank
bonds. This will be determined soon
after the preliminary conferences are
held in Washington. Baltimore banks.
both national and State, have given as
surances to the Farm Loan Board that
they will create market in Baltimore
for the securities of the land bank.
Only small amount Of land bank
stock was subscribed for by Baltimore
interests. The stock books were Kept
open at the Subtreasury for some time.
but investors did not seem interested
in the offering. This circumstance
was not peculiar to this city, however.
1t was the same in other land bank
cities and was anticipated by Congress
when the institutions were created. 1t
was for that reason that the Govern
ment was authorized to subscribe for
all the unsold land banks stock IN each
of the II districts.