Show fa LOAN ACT UPHELD washington fell feb as the tann farm loan act designed to assist agricultural development by providing readily accessible credits to farmers thru federal banks was declared valid today by the supreme court in ili an opinion which commissioner C E I 1 lobdell of the farm loan board declared removes ciery shadow of 0 question as to the lega legality fity of the banks or their bonds the court held congress had authority to establish the land and banks and the correlative authority to exempt the bonds front from state taxation lobdell announced there would be an immediate issue of farm loan bonds to finance the hundreds of millions of oe dollars in loans which had been approved 1 by the board A bond offering will ile be made as soon as the bonds can call be ready lie said and immediate ahe me distribution ot of funds begun it will be at ast thirty days clays however before funds are arc available the farni farm loan oin board Is hopeful that the market may absorb farm loan bonds equal to the alie borrowing demands demand s of the farms the case was an appeal front from lower court decrees re refusing firsing an all injunction sought by 0 W smith a stockholder lit in the kansas city title trust company to restrain that institution from investing funds in lii land bank atles the contention was made that the farm loan act was invalid as congress had no authority either to establish banks or to exempt their securities curi ties from state taxation the court in a practically unanimous opinion upheld the authority of 0 the government the power to designate fiscal agencies lias has been conceded congress since the days of oe chief J ustice justice marshall the opinion held and the tax exempt exemption ibn provision was a necessary protection justices Mcney and II holiness Hol olmes ineis dissenting dis explained that they took exception to the courts assumption ot of jurisdiction rather than to the findings the case should have been dismissed they said as a matter within the scope 0 of missouri laws and the state courts justice day who delivered the courts opinion said it had been contended that the power to designate these joint stock land banks as de tories lad had not licen been exercised by the government but added that the existence of the power under tinder the constitution ution is not determined by the extent ot of tho the exercise of 0 the authority conferred under tinder it congress declared it necessary to create these fiscal agencies lie he added and to make them authorized decosi tories of public mone s its power to do so is no longer open to question in discussing the general financial situation in ili utah and idaho a few days ago R 13 motherwell manager ina nager of tile the salt lake branch of 0 the federal reserve bank said that there could be no circumstance so helpful to this section as a favorable decision on tile constitutionality of 0 the tarm farm loan banks which decision was rende ered yesterday in talking of 0 the importance of this decision mr air motherwell referred to the groat great need tor for additional agricultural credits in this section particularly lit in idaho both to relieve the banks of the section ot of part of the burden of agricultural loans they are now carrying and to provide funds nece essary for the adequate utilization of the farms hundreds of thousands ot of dollars possibly millions in loani loan to farmers in fit idaho have ben applied tor for and approved by the farm loan banks but have been withheld pending a determination mi nation of tile the constitutionality of 0 tile the act not only will vill these funds be released in the immediate future but applications can now be acted upon with the certainty that many additional dit ional lonal loans will bo be extended the same situation will hold true trite although though til to a lesser extent in utah tile the relief relict on the banks will be a most opportune phase ot of tho the situation and will reflect itself not only in the agricultural sections but in ili the genral economic situation 0 of the intermountain mount aln country the section dependent as it is to such a large extent on agricultural production and consequently liquidation will be materially teri ter ally lally benefited commissioner Lob dells jells statement that a new issue ot of farm arm loan bondis bond la is to be made immediately is probably an all indication that the farm bank authorities intend to have the bank begin to function again at once adequate agricultural credits are tile the most ImProta Imp nt factor jn in the prosperity of 0 many sections of 0 utah and idaho the part which the farm arm loan bank will play in providing these credits remains of course to be determined but it will undoubtedly prove highly beneficial farmers ot of box elder county have applications for federal farm loans which will total many thousands ot of dollars |