79 AGRICULTURAL ECONOMICS 



and one or more land bank appraisers for each land bank district, and 

 such land bank examiners as shall be deemed necessary. Of $100,000 

 appropriated for organization expenses, they are instructed to use a 

 "reasonable portion" for publicity purposes, familiarizing the public 

 with the features of the new system and instructing farmers "regard- 

 ing the methods and principles of co-operative credit and organi- 

 zation." 



Federal land banks. The second part of the farm loan system 

 is made up of the various land banks. 



Continental United States is to be divided into twelve districts, 

 to be known as federal land bank districts. These districts are to be 

 apportioned with due regard to the farm loan needs of the country, 

 but may be readjusted from time to tune. In each district a federal 

 farm loan bank shall be established, in some city selected by the 

 Federal Farm Loan Board; later, branches may be established within 

 the district. The affairs of the bank shall be managed by a board 

 of nine directors, six of whom shall be known as local directors and 

 shall be elected by the farm loan associations of the district, and three, 

 known as district directors, shall be appointed by the Federal Farm 

 Loan Board. Directors must have been residents of the district for 

 at least two years prior to their election or appointment, and at least 

 one of the district directors must be " experienced in practical farming 

 and actually engaged at the time of his appointment in farming opera- 

 tions within the district." No director may, during his continuance 

 in office, act as an officer, director, or employee of any other concern 

 engaged in the business of banking or of dealing in land mortgage 

 loans. 



The capital stock which each federal land bank must have before 

 beginning operation shall be $750,000, divided into shares of $5 each, 

 and may be subscribed for by any individual, firm, or corporation or 

 by any state or by the United States. If, after subscription books 

 have been open for thirty days, any part of the capital stock still 

 remains unsubscribed, the Secretary of the Treasury of the United 

 States shall subscribe the balance in behalf of the United States. 

 Stock owned by the government shall receive no dividends, but all 

 other stock shall share in dividend distributions without preference. 

 Each farm loan association and the government of the United States 

 shalTbe entitled to one vote for each share of stock which they hold, 

 and no other shareholder shall be permitted to vote. After the 

 $750,000 of capital necessary for beginning operation has been secured 



