Helena weekly herald., 1889-03-28
IOWA SCHOOL LANDS.

In considering the best policy for Mon
tana to adopt in regard to lher magnificent
dowry of school lands, it would be in
point to inquire what other States have
done, and look at the results. In taking
the case of Iowa, we have in testimony one
of the most progressive of the Western
States, and the one in which the lands
were of the most uniform value. There
was the same proportion of area, two
sections in each township, as in Montana,
given for schools. Out of an area of little
less than 100000 acres this amoun-
ted to nearly 100000 acres. At the
close OF the year 1887 only 53,927 acres re-
mained unsold and the permanent school
fund derived from these sales amounted to
$4,187, 1893 "a, showing that the lands were
sold for about So so per acre. If
Congress had exercised the same provision
when Iowa was admitted as in the case of
Montana, prohibiting the sale of her school
lands at less price than $40 per acre, the
permanent school fund of that State would
have been more than four times what it
now is.
But if the people of Iowa had for them
selves adopted the policy that we hope to
see adopted in Montana, their school fund
to-day would have been equivalent to $780,
100000 by the general rise in the value of
the lands. Those lands we're sold as soon
as they reached in value So so per acre. If
the State had in its constitution made
these lands inalienable, all the sub
sequent rise in the value of the lands
would have gone to swell the value of the
permanent school fund. Now having
parted with the title, though the value Of
these lands may raise to 500 per acre, as
no doubt will be the case in the next forty
years, it will add nothing to the perma-
nent school fund. On the contrary, the
reduction of the rate of interest from to
per cent. will be equivalent to the loss of
one-half of the fund.
Why should not Montana profit by the
errors and losses of other States and fix it
in her constitution that her school lands
and all their enhancement in value should
forever constitute her permanent, inaliena-
BILE and irreducible school funds. The lands
themselves are safer than any possible in
vestment. They could not run away to
Canada, nor could any one carry them off.
If rented for terms of 81 years,
at the expiration of this term there
would be re-adjustment of rents to the
enhanced value and the annual income of
the fund increased. At the rate at which
the school lands of Iowa were sold, it is
equivalent at per cent to rental of fif-
teen cents per acre or $24 per annum for
160 acres. 1t would be very poor quarter
section that would not rent for 500 per
annum and that would be equal to la per
cent interest on valuation of $40 per acre.
Lands would rent at this price long before
they could be sold at S. per acre.
Resolving from the outset that our
school lands should never be sold, we
should save to the school fund all the "un-
earned increment" of the lands. We could
rent the lands always for more than the
current rate of interest on their estimated
value and could rent them earlier than
they could be sold at the minimum allowed
by Congress.
If Congress had coupled with every grant
of school lands the condition that none of
them could ever be sold the permanent
school fund of this country would be fifty
times as great as it is now and the annual
income nearly as much greater in proper
ton. Let the folly of others teach rs
wisdom, and though Congress has imposed
no such condition, we can do it for our
selves and in few years have q greater
permanent school fund than any State or
country in the world.