Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1923-07-24
.FARMLANDBANK
PRESIDENT WILL
TALK in VALLEY
Announcement Made That he
will Deliver Address at
Valley Chamber Meeting
in Harlingen August 3

M. H. Gossett, president of the Fed
eral Land Bank at Houston, has ac-
cepted the invitation of the Rio Grande
Valley, Inc. and will deliver an address
at the next meeting of that organiza-
tion. which will be held at Harlingen
Friday, August 3. at the Baptist Tab
ernacle. George B. Armistead. recently
appointed state highway commissioner
for this section, IL also expected to be
present.
President Gossett. in replying to the
invitation. which requested that he dis
cuss the Federal intermediate Credits
Bank and the scope of the service which
may be expected Of il. especially as II
applies to the Lower Rio Grande Valley.
stated:
at Is matter OF personal regret to
the members of the executive commit
tee of the Federal Land Bank that we
have not found ourselves in the posi-
tion to enter the irrigated territory in
your section for the pufpcse Of making
loans upon standards of value which re-
suit from irrigation.
1T is probable, however. that through
the cooperation of the banks and the
well-to-do people Of the Lower Rio
Grande Valley in the organization of
cattle loan companies or agricultural
credit corporations, access may be pro-
vided to the new line Of discount credit
for the benefit of your livestock inter-
ests. We are now discounting paper on
cattle loans when offered to US through
livestock associations, banks. ETC., en-
dorsed by the agency offering the pap
er. at 1-2 per cent.
"Under the law. the agency offer
ing the acceptable eligible paper Is al
lowed to charge l-2 per cent premi-
um thereby making a maximum loan
rate to those having satisfactory Sc
curity at per cent per annum. That is
line of service which this new insti-
tuition may supply which the average
commercial bank is not allowed to fur
nish because Of the length Of time eli
gible borrowers with livestock sccuri-
ty need line of credit. In many parts
Of the state bankers are organizing live
stock loan companies to be used as aux
iliary corporations through which they
will supply the long time loan needs OF
Of the growers of livestock.
"while nine months is the maximum
length Of loans discounted by US at
this time. it may be understood that il
at the maturity Of such paper discount
ed by us the security Is intact and the
proper margin of safety is protected. an
extension and renewal for an additional
time within the provisions Of the agri-
cultural credit act of 1928 may be ex-
pected."
Farmers and stockmen Of the Rio
Grande Valley are reported TO be tax
ing great interest in the possibility OF
securing loans through the federal
loan bank. and the address by Presi-
dent Gossett Of the Houston bank will.
il is believed, open the way whereby
these loans may be secured. Ever since
the passage Of the agricultural credit
act. early in the year. officers Of the
Rio Crandc Valley. Inc. have been con
sidering this step and President Cos
sett's prompt acce ptance of the organic
zation's invitation indicates that the
bank is a.so taking considerable inter
est in the Valley.
The Rio Grande Valley, Inc. desires
to have every town and community
represented mt the Harlingen meeting
in order that every section Of the
Valley may secure the desired informs-
tion in regard to the operations of the
farm loan bank and the possibility of
the Valley farmers securing aid through
this source.