Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-12-30
FARMERS IN THE
NESILLA VALLEY
WILL GET LOANS
"You win Soon Have Some
Action" Says Senator
Bursum in a Letter to H.
H. Brook, Las Cruces.

Especial Correspondence to The Journal
Las Cruces. N. M. Dec. 29.--"It
seems to me that the atmosphere
is clearing up" says United States
Senator II. o. Bursum in letter
dated December % to II. H. Brook,
president Of the Elephant Butte
irrigation district. transmitting a
communication from Charles G.
Lobdell, farm loan commissioner,
"and," he adds. you will soon
have some action"
The letters from Senator Bur
sum and Mr.. Lobdell refer to farm
loans in the Mesilla valley. Con-
| tinuing, Senator Bursum says in
his letter to Mr.. Brook:
There are some other matters
with reference to the organization
of the (farm loan) board. which
pertain to administration. which l
am going to take up some time
| this week with a view to obtaining
q more friendly policy than has
been adopted toward our New Mex
leo farmers
Ill Ills ltLlcI " OSildlOT Dulcuih
under date Of December 20. Mr..
Lobdell says:
ain reply to your letter of De-
cember Is, enclosing letter from
Mr.. Brook, herewith returned, per-
nit me to state:
"The president OF tho several
federal land banks were In con-
ference during the past week, and
Messrs. Gossett' of the Houston
! (TeX.) bank, and Laseter Of the
Wichita bank discussed with us in
detail the situation Of the Elephant
Butte irrigation district. The first
important question was settled,
that is, that they are both now
ready to organize farm loan asso-
! Citations in that district and serve
them as rapidly as they can in har-
mony with the general demands in
their respective districts.
Il think they are agreed and the
board approves the thirty-three and
one-ha lf-year loan, although with
the repeated statements of large
profits from this type of land, the
board is unable to see why the
larger payments might not be
SaIely Undertaken.
'The bank presidents and the
board are quite in accord with the
second suggestion of Mr.. Brooks
letter, viz: that there can be no
general basis for per acre valua-
ton, and that each farm is an In
dividual proposition which must be
appraised by itself. Beyond this
the appraisal will have to be mat
ter of the judgment of the appraiser
who passes upon the application,
guided by the report of the en-
igncers who Investigated and APP
proved the project, and to some ex-
tent differentiate between different
localities in it.
1.-THE farm loan act specially pro-
vides that the productive value
shall be the principal test. The
selling value can safely be taken
into consideration as a maximum
for q loan, that is, no loan should
ever be made in excess of SO per
cent of the amount that the land
may reasonably be expected to sell
for at any time, but inflated
market values during boom periods
cannot be accepted. Applying the
test OF productive value, it will De
noted that these lands carry a
cost of about So an
acre, per annum, and construc-
ton and drainage cost of $40.
mixing an aggregate annual charge
of $40 an acre exclusive of mu-
nicipal tax and the payments which
the borrower must make on his
"In determining whether or not
q given loan can be made, the APP
praiser must of necessity take into
account the total annual charge an
acre, and determine whether or not
a given farm in the hands Of an
average farmer, raising the crops
raised on such land. in
that vicinity, will meet these
charges and the comfortable living
expenses of a borrower. OF course.
this is only one very general STAN
dard. II
I'VE have no doubt that both of
The banks involved will be as liberal
as sound business principles will
admit. and we are sure you would
ask no more"