Imperial Valley press., 1922-07-29
Horne Says Flood Control
Lobbying Has Damaged
Valley Credit
APPROVALS REJECTED
Joint Stock Land Bank is
Tied Up After Asking
Applications

Farmers of Imperial valley will not
receive the benefits of cheap money
through the Pacific joint stock land
bank of Los Angeles until the federal
farm loan board changes its attitude
towards valley water problems, accord
ing to a statement made The Press to-
day by O. G. Horne, vice president and
cashier of the Security Commercial and
Savings bank of FL Centro.
81 just had an interview with Mr..
Hise, secretary of the Pacific land
bank of Los Angeles, to whom | went
for definite information, Mr.. Horne
writes from Long Beach. "The i'm
preston has been circulated in the val
ley that the Los Angeles bank was pre-
pared to accept applications. In fact,
the Los Angeles office sent out blank
applications to all the valley banks,
and circular letter inviting applica-
tions. Several applications for farm
loans have been sent in, but the appli-
cants will be disappointed if they ex-
,pect to receive favorable consideration
at this time.
Federal Board Governs Loans
cit is only fair to the Los Angeles
banks interested in the Pacific joint
stock land bank of Los Angeles to say
that it is through no fault of theirs
that Imperial valley farmers will not
participate in these loans now. The
federal farm loan act provides for the
organization of joint Stock land banks
in control of the federal farm loan
board, a board appointed by the presi-
dent and approved by the senate.
ga land bank may take farm loans
up to Is times its capital, but these
loans must be approved by the federal
board. When so approved, bonds may
be issued against them as collateral and
these bonds are sold in the open mar
ket, as an instrumentality of the Unit
ed States government. The federal
board has full power to approve or re-
iect any and all loans. 1t is very un-
fortunate that just now Imperial valley
is not in good favor with the federal
loan board.
Flood Lobbying Overdone
~ asked Mr.. Hise why Imperial
loans were not acceptable to the fed
eral board. He told me frankly that
our efforts to obtain legislation and
federal aid for flood control and pro-
lection had left the impression in
Washington that Imperial valley is not
safe place to make farm loans; that
if the risk is as great as our insistant
demands for protection indicates, the
loans would not offer the security
against which bonds could be issued.
g Imperial valley must present a unit
ed effort to wipe out the prejudice
against our county. Our farmers need
and must have cheaper money if they
hope to succeed and build up perman-
ent farming community of Americans
They need the long term amOrtized
loan of the federal land banks, to be
paid off in annual instalments cover
ing period of 90 and 33 years. Farm
ers cannot afford to pay eight and 10
per cent for capital loans-that is,
loans to carry their land improvement
aid local banks do not have the
money to loan on long terms at cheap
rates.
"Our job is to present proof that
loans can be made with safety on I'm
lperial lands, and that where properly
placed they will become acceptable as
investment for farm land banks.