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rate of interest when we started was 5 per cent, and we had 

 to raise it to 5|. There was some doubt in Washington, 

 when we first determined to have our loans at 5 per cent, as 

 to the wisdom of that step, but we felt that we ought to try, 

 and I firmly believe if it had not been for this w^ar we could 

 have put it through without any difficulty. Then you see the 

 Germans took it into their heads to sink our ships, and we 

 had to raise our rate to 5^ per cent. 



Mr. Parsons. The reason I asked this question was that 

 the savings banks have lately increased their rate from 5 to 

 5§. I was wondering if the farmers could make any money 

 by changing. 



Mr. B. W. Pot'ter. I would like to ask if it isn't true that 

 if a person wants to join this organization in order to get a 

 loan he hasn't got to buy a lot of shares; and if he hasn't 

 got to be responsible for all the losses — his share of the losses 

 — that may take place on the mortgages that are put up. 



Mr. Robinson. Each borrower must subscribe to the shares 

 of the association to the extent of $5 for each hundred dollars 

 he borrows. In addition he is only liable to the extent of that 

 much money again, that is, double liability, just as a share- 

 holder or stockholder in a national bank is; and that is the 

 extent of the liabilit.y of any one who joins the association, 

 and no more. We hope when we get going and begin making 

 money that we are going to pay dividends on our shares. It 

 was only, I think, yesterday that the Federal Reserve Bank 

 of New York went into the dividend class among reserve banks 

 after several years' operation. It will take a little while, but 

 I think in time we are going to pay dividends on our shares, 

 jiist as other banking institutions do. Of course, as soon as 

 a man pays his loan his shares are retired, and he gets his 

 money back. It isn't a permanent gift of any kind. It is 

 simply a purchase of shares, on which we hope to pay divi- 

 dends, and which is only to remain in the Land Bank as long 

 as the loan is alive. After you pay off your loan, no matter 

 when, you cannot keep your shares in there even if you want 

 to. You have got to take them out. 



Mr. B. W. Potter. I should also like to ask what expense 

 it would be to the applicant to get his loan. I made some 



