Arizona republican., 1921-03-12
FOR
 U.S.FARML LOANS IN THIS VALLEY
This District To Benefit From Operations Of Fed eral Land Bank-Plans Still Tentative

Tentative piars for Federal Land bank loans in the Salt River valley U tine first ever authorized under proVi- ons of the farm loan act--wefe adj Nanced hy W. D. Ellis, president of the twelfth district bank at Berkeley. Cal. President rlls is enroute to his home at Berkeley from Washing ton, D. C.. where he attended q meeting of prczt- dents of the l. federal land banks.
 Preliminary arrangements for the floating of 9 S60000,00 bond issue by the 2 banks were made at the Wash ington conference, Mir. Ellis stated yes tcrday Proceeds from the bond sale will be equally divided among the F aisfflsts Each district bank then will loan to farmers where, in the opinion of bank officials. they money will do the most good
 heretofore have benefited from the operation of the federal farm loan act because government liens against rec lsmation projects were held to be first mortgag ges. Modification Of the orig inal ruling has been made since. so that lands within reclamation projects can be included in the operation of the act. Much credit for this modification is due to the untiring efforts of Lysander Cassidy, attorney and registrar of the Berkeley bank, Mr. l6hs said. MT. Cassidy was formerly d resident of Phoenix.
 Farm Loan Act Constitutional
 Operation of the federal farm loaF act was suspended last May, MT. Ellis said in view of the attack on the legal ity of the measure. The supreme court of the United States, in a decision handed down late in February, declared tiie act constitutional.
 Arrangements are now going for ward MT. Ellis said yesterday, for re newing operation of the act in the twelfth district, over which he pre- sides as president of the bank at Berk- eley- Until such time as the bond issue is disposed of. however, the farm ipan banks will De without funds to carry on the work originally started in 1917. In the three years of their opeT- ation the 12 federal farm joan banks loaned s35o.0o0,eoe to the far1aers of iais country, the Berkeley official stated
 Loans to farmers, he explained. are iuadc through farm loan associations. < farm loan association. as recognized by thc federal farm loan banks, coa- siztutes 1o or more farmers organize0 for iae purpose of deriving benefits from the farm loan act.
 To Organize Here
 Such an association or associations will eNeHcGaily be organized iu Mari copa county it was announced yester- 
 and organization of farm loan asso- citations were held yesterday between Mir Ellis and officials of the Water Tsers' association. Plans are yet in the formative state. it was declared. It will be 8 period Of months before any direct benefits will accrue to val ley farmers by operation Of tie act. President Ellis said
 The amount to be loaned in this com snunity depends largely upon financial conditions here and the sum availabls from the twelfth district bank at BerlS- e.ey for distribution in this district, Mr Ellis said. He indicated, however, hat an amount commensurate with farmers needs here as compared with other districts would be loaned. j Although valley farmers heretofore t-have never benefited from operation Of the farm loan act, large sums have been loaned in Arizona. especially un der state irrigation projects, MT. Ellis said. These loans. made prior to May. 1920. have especially benefited farm CTS in the northern and southern sec tions of the county, he concluded.