Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1920-06-06
RESERNE EN\k OITiCIiI.
Gi\E> Ut STLTEuE>r Z
So. The Ss~,

IiDU STON. Jun. Referring % the
Temporary SUSPENSION boz thu CLOSING 81
new loans o., Federal Land Banks "
"a Go. go. president 81 the Federal
Land Bluk 81 Huustuns CAV, uut th'
following statvmcn,
At the instance of "a, Farm Mort.
gage llnk,rS Association 81 America
. representing m, old lu, mortgage com.
i pani,-. suit Wi, ui,l in the United
, States Circuit Court go Kansas cts.
aud was tried n ,.fuh,r 1919. THIS
uit involved an attack an the validity
~ th, Federal Farm Loan Act, n,.ut.
INK the tax free features ~ hurds b..
sued ly banks created under 'lid Act.
IN "a, trial court. the entire law was
upheld. aud "a, ,i-p appealed 60 tn
supreme Court oi th, United States It
Washington. where % was submitted
ga argument 90 January 1890 After
kr,pue the cas-. uul. giyis. W'ut tHI
months. the Suprym. court .nuuuu,'d
that % desired q rrlrrum,nt ol the
,J.,. bat failed Co mann, time fur such
r,argum,ut t,iurr m, summer al.
Iouium,ut This operate. 60 postpUn p
"a decision until about the middle 90
November az the earliest
Expected Early Decision.
I'm January. when We had every
reason 90 expect AN early decision -
IA, case. and en- order 10 continue tho
closing az loans, when checks w''r
t,inL passed 10 borrowers at IA" iltr
~ S. 600 UuO PER month. th.f bank h"r.
ttuN,i from commercial banks Co tide
us over pant 81 this waiting period.
bet ca March 18th. in view uf IN. un.
expected delay by the Sgpr,m, Court
IN reaching q decision, W. stopped tn
closing 60. loans. In this situation.
CONGRESS has Just passed hin author
izlrg th, Secretary 81 N, Treasury Co
buy On limited amount IT Federal Land
i.ark bonds. which viii enable this and
other Federal Land Banks in the sNs.
tenn. 90 repay loans from commercial
aluBa which enabled co.. o. continue a.
business for thu months ~ January AMI
February 1921. and also sufuci,n.
sum % clos, approved loans wherein q.
ties have been examined and approved
and pgp,rg executed and recorded but
provided that no loans are Co be- closed
which were approved after March LIST
| Al applicants TOT loans which do u",
come within tho class stated. will hv
compelled 60 look elsewhere Tor funds
until S., are IN position to renew the
making ~ new loans after the law IS
upheld and Federal Land Bank bonds
Sold This We anticipate. viii De- aroun !
December Isl. 1890. checks 10 close tn
Diifs Di loans ahov, named, We cXpr, {
tu send GA, July d., and Immediately
following
situation Regretted.
This situation is very much regret
I'D hy The Farm Loan lioard ~ Wash
ington. and the Officers and Board Il
Directors ~ the Federal Land Bank 81
Houston We have closed loans q
farmers IN this stat, 81 nearly $40 600,
uou. 20 an interest rate IT . IL per cent
pry Jnnum. with a consequent s1Niu-
tu the borrowers Il ~ least 81 O0o. 0ol
p'r anuum IN rate ~ interests Th'
low ut, charged bv th. Federal Land
t1nl. and th, easy terms OF payment
ga the amortization plan. had the ~
f'Df 90 materially r,durr thu interest
! Charge by m" mortgage ,umpIni,
| since the operation of these hank
/ which Indirectly resulted iu saving
boo l's interest rates charged my mort
gIg. companies 81 probably aonth,i
million dollars per annum. o. H. 10 y.
| regretted that since The suspension e.
| closing new loans. oDrdaUn,l hy 90.
unexpected delay IN decision hy ~,
S4Tr.iu" court. ~ the result 81 litigl
fIur started hy the mortgage Dompan
b. fh'i many 81; them have RAISED
their rate OF interest from q per cent
cent o. o. per cent and per cent %
utf ..r' including commissions. an.
su.'Iu,. % per cent AMI lD prr c.u.
fH borrowing farmers
9TH. service which Federal LAM
BANKS lfte rendered has been q great
'HIH' i. agricultural interests and m.
Judgment md rtat.smanship ~ the au
fhHr- u' 'be law Vindic1t"d n H. De-
Viewed 'H1' whether The airiun - "a.
SaFf.W, court results in uuhuidinE ih'
JOSS 'r u.' That SOM" plan will he work
'I uy' o.. amended legislation. u Nee
,sttT. whereby farmers 81 this cnuu
iIr u.I ,uH'iuu, o. got IA. h''ufit 1t
lower r1'. ~ Interest and easy aWpr'
Iy.sl payments than wa pugsiil' hsfor.
th" lU we enacted. ~ than the 90
lm. m'rrr. ,"mpIni 1r' lffurlu.
i 90 tH. l.."
HESS a -i.I'NER
Engineers