The Kadoka press and Kadoka reporter. [volume] (Kadoka, S.D.) 1910-1923, 1911-12-29

| nay purposes.
further, the state has loaned out at
interest 50, ,O27, ,o15.O0, common school,
endowment and public building funds,
and the interest on this amount to-
gether with the rental from the com
mon school lands assists very mater
tally in keeping down taxes, and when
all these lands are sold the revenue
from the fund, which will then amount
to at least 1925, 100000, will care for
our public schools.
In addition to the common school
lands the state yet owns Ga, 407 acres
of land, the proceeds OF which are de-
voted by the state to the maintenance,
up-keep and Improvement of It's pub
lie buildings and educational, penal
and charitable institutions. With
these lands rapidly becoming avail
able and nearly all now producing
some revenue taxes in South Dakota
must continue low.
In dealing with the subject of the se-
culities of our state, we find it neces-
sary to overcome something Of preju-
dice that apparently exists in the
minds of many eastern people in re-
gard To- western secures in general.
There is no doubt that a lack of
thorough understanding as to the un-
mistakable possibilities of investment
in our section of the west is largely
responsibility for this incorrect e5ti-
mate, which has taken root in some
portions OF the east, ard we are CON
fident that careful analysis of the
subject will demonstrate and main
tain our position which is that no bet
ter securities can be found in any Sec
tion than those In the new west which
is undergoing such rapid and exten-
siye development at this time. Only
one thing is necessary and that is a
correct and adequate conception of
the real values of the securities we
offer, for with this realization is the
accompanying knowledge Of their alb
solute safety and unequalled stability.
This condition of supremacy, which
we assert for ourselves, is accomplish
ed by the unusual appreciation of
prices in our section, which is much
greater and more marked than in any
of the older settled portions OF the
country Let us take for example,
school, village, city, township or
county bonds. All are based, of
course upon certain per centum OF
the real value of the organization is
suing the bonds and the continued
and rapid appreciation OF property
within the organization is constantly
reducing the debt to a smaller and
yet smaller per centum of the actual
value of the property behind the in
debtedness; hence the deduction fol-
lows and is apparent that bonded
indebtedness that is to day FIVE per
cent of the assessed valuation of a city
may not be more than two or three
per cent of the assessed valuation Of
that city after a !. ear or two of growth.
This is also true of village, township
and county organizations. Very sell
dom, if ever, are such bonds repudi-
ated.
Our contention is applicable as we'll
TO first mortgage farm loans, for the
basic relation Is the same. Not more
than thirty of forty per cent is loaned
on land and inasmuch as farm mor6-
cages have been depreciating in value
for the past ten years. and will so con-
tinue for the next ten to twenty years
to come, thereby continually increas-
ing the value of the property covered
by the mortgage, you can readily see
that western securities are really the
prime securities of the nation today.
And so they will continue to be, for
we have the soil, the climate, the en-
terprise and the scientific knowledge
and ability to produce more abundant
ly than any other section Of the coun-
try.
The banks of the west carry their
reserves in the banks of the east.
The great eastern insurance and
surety companies receive large por-
tion of their premiums from the west,
like wise other concerns, and so in
an objective business way, the east
is near to the west, but when the eq-
uasion is reversed and our section,
with its splendid investment oppor-
tunities, looks towards the east, the
latter at once decides that the latter
is too far distant for such relations.
This tendency which seems really
operative in the east should be di-
verged and the relationship changed.
Certainly our securities should be
considered on the merits of their real
value; not in regard to the number. OF
miles from South Dakota to New York
or the eastern cities, but as the actual
security supporting each and every
security. If this can'be done we are
o,r,ffa1 m