Arizona republican., 1921-05-01
U. 5. LAND BANK A[[0TSs400,000
 fO THIS VALLEY
Money Will Be Loaned Farmers By Federal h. stltution - Official An nouncement Received Here

That sa00,000 has been apportioned to the Salt River valley by the fed eral bank of Berkeley was announced yesterday by F. C. Henshaw, secre- tary of the Salt River Valley Water Users association, who has been in formed of the apportionment by Will lard E. Ellis, president of the federal land bank.
 The action of the banks follows the organization about a year ago of an association of Salt River valley farmers under the rules of the farm law act. The officers of this ascocia- tlon are John P. Orme, president; O. c. kunce. vice president, and F. C.. Henshaw, secretary and treasurer. Application was made at this time Tor loans. but these were made held up by litigation over farm titles.
 The value of the announcement made yesterday is shown by the fact that the action of the federal land bank Will permit farmers in this valley to borrow money at 6 per cent for a B year period. it being option al whether the money be paid back m installments after rive years.
 The association has called a meet ing for May 10, when all farmers who desire to borrow money under the apportionment will form 9 local na- conal farm loan association under the farm loan act.
 The letter in which notice of the sppcrtionment was carried follows in full.
 Dear NIT. Henshaw: Some days ago the secretary of the bank MT. A. M. Norton. forwarded your application blanks and other necessary papers for use by the proposed National
 2rrn Loan association. We have ap- fportioned as an amount that we will loan in the Salt River valley through your association until further mo- tice. S400. 900. This amount is large portion of the loanable funds we shall have for our entire district until we sell another issue of farm loan bonds. This means that we will loan s400,000 to farmers in your section, but we make no promises to close loan ag- gregating more than S400.000.
 We urge upon you the necessity of getting representative farmers in that organization and that tie loan committee or the organization be composed of men who know land val
 = in the valley and men who are ronservative in their Judgment. . Just as soon now as you are in position to send the applications to us. We shall be prepared to have the farms appraised We should like to have a preliminary statement regard ing the title. the title evidence, or a plat or certified description of the rropcrty accompany each application sent to the bank.
 We expect to have another bond sale in July and while we cannot make any promises as 10 what funds will be available for loaning through your association at that time, we hone that conditions will improve SO that we shall be in a position to accept more applications.
 We should like very much to com pfete the loans aggregating s4oo,Oot inst as soon as possible. We cannot consider at this time loans that vii he made for the purpose of purchas- snr more land, where the farmer all ready has some land; neither can we consider applications for loans where inc farmer already has some land neither can we consider applications for loans where the proceeds will Dc used for the payment of indebtedness no. vet due. neither shall We consid- CT applications from any but bons fsae farmers. We cannot loan more than 50 per cent of che agricultura value of the land, plus 20 per cen of the value of the insurable inn provements-
 r. these is anything in connection with the operation of association ,bat has not been explained to yol nr- Mir. Norton in his letter. we shal he pleased to hear from you