The Sisseton weekly standard. (Sisseton, Roberts County, S.D.) 1892-1929, 1921-03-04
u. S. COURT HOLDS
FARM LOAN LAWS
CONSTITUTIONAL
COURT IN PRACTICALLY uNANI-
NOUS OPINION UPHELD THE
AUTHORITY OF GOVERN
IN BOTH INSTANCES.
Thousands of Applications From,
North Dakota Will Now BE
Filled, Officials Say.

ST. PAUL, Mimi, Feb. 28.-
Thousands of North Dakota loans
will be made by the federal land
bank of St. Paul as result of the
supreme court decision, H. X. Ed
wards, secretary of the land bank,
announced today. Pending the nigh
courts decision the bank. has re
fused to take applications for loans
from any of the northwestern states,
Edwards said.
Mr.. Edwards said E. G. Quamme
president of the st. Paul fedora.
land bank is in Washington conferr-
Ing with Othe bank officials and
nothing would be done until he re-.
turned. Resumption of business by
the federal land bank will greatly
relieve the credit situation in the
northwest, Edwards predicted.
WASHINGTON, Feb. 2S.= The
farm loan act, designed to assist in
the agricultural development of the
United States by providing readily
accessible credits to farmers thru
federal land banks was declared val
Id today by the supreme court.
In the opinion which Commission
er Charles E. Lobdell. of the farm
loan board, declared scleans away
every legal question and removes
every shadow 70 question as to the
legality of the banks or their
bonds" the court held that congress
had full authority to establish the
land banks and the corelative au
thority to exempt their bonds from
state taxation.
Million Will Be Available.
Commissioner Lobdell announced
that there would be an immediate
issue OF farm loan bonds to an
undetermined amount" to finance
the hundreds of millions Of dollars
in loans which already Fave been
approved by the board and which
we're held up pending the courts de-
cision.
A bond offering will be made
as soon as the bonds can be made
ready" he said, land Immediately
thereafter the distribution of funds
begun. 1t will be at least 80 days
however, before funds are available
for actual loaning.
THE farm loan board is hopeful
that the market may absorb farm
loan bonds equal to the borrowing
demands of farms of the country,
but no one can predict with safety
The result of financial operation
of this magnitude.
Court Practically Unanimous
The case decided today was an
appeal from lower court DEGREES re-
fusing an injunction sought by
Charles w. Smith, stakeholder in
the Kansas City Title and Trust
company to restrain that institution
from investing its funds in the BE-
curities of the land banks. The con-
tention was made that the farm loan
act was invalid as congress had
neither the authority under the con-
stitution to establish banks nor OK
empt their securities from state tax
alton.
The court. in practically unani-
NOUS opinion upheld the authority
Of the government in both instances.
The power to designat fiscal agen-
eies has been conceded to congress
since the days of Chief Justice Mar
shall, the opinion held, and the tax
exemption provision was necessary
protection.
Congress Has Full Power, Held
Justices McReynolds and Holmes
dissenting from the majority opin.
ion explained that they took excep~
tion to the courts assumption OF
jurisdiction, rather than to the find.
ings themselves. The case should
have been dismissed. they said, as
Q matter entirely within the scope
Of Missouri laws and the state
courts.
Justice Dau, who delivered the
opinion Of the court. said It had been