White Bluffs spokesman. [volume] (White Bluffs, Wash.) 1907-1938, 1917-01-05
.FEDERALFARM LOAN
BANK AT SPOKANE
MAKES CITY AN AGRICULTURAL
CENTER OF NORTH PACIFIC
sTATEs-DlsTRlCT IL.
FARMERS ONLY TO GET MONEY
Stock Subscriptions Open in january
Capital to Be $3.50, Ooo-DeaI With
Associations of Producers
Minimum Loans $4,000.

Spokane, in district No. IL, is the
selection of the federal farm loan
board for the northwestern land bank
for the territory comprising Washing
ton, Oregon, Montana and Idaho. The
announcement was made in Washing
ton, d. c. by the farm loan board.
Other Western Districts.
District No. 7, st. Paul, Minn.-Mich-
igan, Wisconsin, Minnesota and North
Dakota
District No. 8, Omaha, Neb.-Iowa
Nebraska, South Dakota and Wyoming.
District No. 9, Wichita, Kan.-Okla-
homa, Kansas, Colorado and New Mex
leo.
District No. 10, Houston, Tex.-Tex-
as.
District No. II, Berkeley, Cal.-Cali-
fornia Nevada, Utah and Arizona.
Open Subscription Books.
The new bank in Spokane will have
capital of $75O,00O and loaning ca
pacity of $15,OOO,OO6 1t will be put in
operation just as soon as the federal
farm loan board names the registrar
and directors Stock subscription
books will be opened, it is expected,
soon and they will remain open for
public subscription 80 days. All stock
outstanding at that time will be taken
up by the government.
In the meantime national farm loan
associations can be organized among
the farmers to take advantage of the
loaning facilities of the new bank. Ten
farmers can organize such an associa'
| ton to borrow minimum of $4,000
at per cent on the long time, amorti
cation plan.
The district bank is not a large in
bulk of the machinery is centered in
the farm loan associations. According
to the federal reserve act, the Spokane
bank will have registrar, who will
be the governor. He must be an at
torney to examine titles. Another sal
aried position is that Of the secretary
treasurer, who will virtually be gen
eral manager Then there will be a
federal Inspector appraiser and at first
organizers to assist the farmers in
forming the local associations. The
board of directors at the outset will
comprise five men and all the officials
will be named primarily by the fedora
farm loan. board.
Deals With Associations.
The board elects president ant
other officers, but the members do no
draw regular salaries, receiving pc
diem remuneration with expenses
while in session. Stenographic ant
clerical help will not be extensive ant
it is expected that the bank will sc
cure quarters above the street level il
a downtown location
The district bank does not deal di
rectly with the farmer who wishes tt
make loan. He must act through hi
association Only farmers or thos
actually intending to purchase farm
land can take advantage of the farm
loan bank facilities. The federal farm
loan board of five men, named by tn
president, the federal farm loan BAN
and the national farm loan associtiol
are the three units in the new system
The board at present comprise
George w. Norris, Herbert Quick
Charles E. Lobdell and W. s. A. Smith
who sat at the Spokane hearing, SCI
TENDER a, w. w. Flanagan, secretary
and William Gibbs McAdoo, secretar
of the treasury, ex-officio member.
Farmers Must Organize.
The initial terms of office are eight
six, four and two years, but when tn
first term expires the uniform lengt
of eight years will prevail. The fec
eral farm loan board will name fiv
/. directors for the Spokane bank t
serve temporarily. When the subscriI
lions of the associations to bank stoc
reach 100000 the board will be il
creased to nine, six elected by the al
sociations and three by the farm loa
board, and their terms will be for tire
years each.
1t is indefinite just when the ban
will be open for business, but Their
will be nothing for it to do until tn
farmers have organized association!
No stakeholder will have a vote ou
side of the government and the asst
citation stockholders. The bank ma
pay dividends, providing it earn
them. The government stock wi
,, gradually be paid off as the subscril
lions increase.
Each borrower must subscribe to
of stock in the bank for every $500 b
; borrows. He can dispose of this at pa
when his loan is paid out or use it a
the last payment on his loan.
Loan Limits Set.
Before any farmer can borrow,
least 10 must organize nations
farm loan association to borrow
minimum of $4,000.