Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-03-01
ARM LOAN ACT IS
UPHELD IN FEDERAL
SUPRE NE COURT
Designed to Assist i'm Agri-
cultural Development
of United States.
FARMERS TO HAVE ACCESS
TO FEDERAL LAND BANK
Opinion Clears Away Every
Legal Question and Re-
moves All Doubts.
INSTITUTIONS TO ISSUE BONDS
IL Will BE at Least Thirty Days BE.
fore Funds Will BE Available
for Borrowing.
FARMERS TO HAVE ACCESS
TO FEDERAL LAND BANK
INSTITUTIONS TO ISSUE BONDS
IL Will BE at Least Thirty Days BE-
fore Funds Will BE Available
for Borrowing.
lBv Associated Press


WASHINGTON, Feb. 2S--'rhc farm
loan act, designed to assist the agri-
cultural development OF the United
states by providing readily acccssi-
bic credits 10 farmers through Fed
crai land banks. vas declared valid
by the Supreme Cour, today.
In q, opinion which Commissioner
Charles +. Lobdeli. 81 the Farm Loan
Board. declared clears away every
legal question and removes every
shadow OF question as TO the legal
ity OF the banks or their bonds. the
court held that Congress had full
authority to establish the land banks
and the corelativc authority to
cNcmp, their bonds from state taxa
tion.
Commissioner Lobdcil announced
that there would be an immediate
issue OF farm loan bonds ITO an un-
dcterminatc amount' 20 finance the
hundred of million Of dollars in
loans which already had been ap.
proved by the board and which were
held up pending the courts decision
"A Dond offering would he made
as soon as the bonds can be made
ready" Mr.. Lobdell said. "and i'm
mediately thereafter tho distribution
Of funds begun. II will bc at least
thirty days. however, before funds
are availahs. for actual loaning.
The Farm Loan Board Is hopeful
loan bends equal 10 the borrowing
Il p.1y, ,f D r..
try. hut no one can predict with
safety. tho result of a financial opera
ton OF this maSntudc."
Case 4. on Appeal.
The ease decided today was an np-
peal from lower court DEGREES re-
fusinG an injunction sought by
Charles ". Smith. . stockho!Ger in
the Kansas city Title and Trust Com
pany, TO restrain that institution
from investing its funds in the Sc
curitics OF the land banks.
The contention was made that the
farm foam act was invalid as Con-
sress had neither the authority un-
der the Constitution to establish
! banks or To exempt these securities
from State taxation.
The court in practically unanimous
opinion, upheld the authority of the
government in both instances. The
power TO. designate fiscal agencies
has been conceded to Congress since
the days of Chief Justice Marshall,
the opinion held, and the tax ex-
cmption provision was n necessary
protection.
Justices McReynoids and Holmes.
dissenting from the majority opinion
explained that they took exception
10 the courts assumption OF juris.
d:ction rather than TO the findings
themselves. The case should have
been dismissed. they said, as n matter
entirely within the scope of the Mis-
souri, laws and the state courts.
Day Delivers Opinion.
Justice Day, who delivered tho
opinion for the court, said it had
been contended that the power To
designate these uhe joint stock land
banfis) as repositories has not been
exercised by the government" but
added that the existence OF the
power under the Constitution is not
determined by the extent Of the cXer-
else OF the authority conferred under
it,"
"Congrss declared IL necessary to
create these fiscal agencies. he
added. "and to make them authorized
repositories OF public moneys. Its
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