Mountain Home maverick. [volume] (Mountain Home, Idaho) 1906-1911, 1911-07-27
LOAN CASH TO THE FARMERS
Two million Dollars Gould BE Put
In Circulation at 6 Per Cent.

made move in the meeting of the
state land board recently which. II
carried to It's logical conclusion, will
result in increased revenue for the
state and in an enormous saving to
the farmers of Idaho in the way OF
lower rates of interest on loans. In.
brief. it means the transfer of the
endowment funds of the state from
Investments in school district bonds
to farm loans.
The interest received by the state
on these bonds now is per cent. II
transferred to farm loans it would be
raised to per cent The state now
has 100000 in such bonds, 50 that
this increase of l per cent in the in
come would mean an increase of $40
900 a year in the revenues of the
state.
But it is the farmer who is COM
PEELED to borrow money to improve
his land that would be the principal
gamer. The Idaho farmers are now
paying an average of approximately
per cent on the money borrowed in
the east If instead of borrowing
$4,000. 900 in the east at ? per cent
they could borrow this $2,000.000
from the state right at home, they
would save 3 per cent on the $4,000
600 or 100000 a pear, which is no
mean item. Auditor Taylor's resolu-
ton submitted to the land board is
as follows:
Whereas. the state board of land
commissioners has for many years
pursued the policy of investing the
endowment funds of the state largely
in school district bonds, and have by
reason of such policy accumulated
approximately $2.0OO.OOO worth of
such securities; and
Whereas. 1t is the sense of this
board that the time has arrived when
it is deemed advisable to dispose of
said securities and turn the same into
cash, with a view of reinvesting said
funds in farm loans and thereby
earning an additional / per cent on
the endowment funds and saving the
farmers of the state from 3 to 4 per
cent interest charges; therefore be 1t
Resolved, BY the state board of
land commissioners that the proper
officers be instructed to negotiate the
sale of said securities. at not less than
par, Offering the same in sufficiently
large blocks, from time to time, to
keep the funds replenished as fast as
the money can be reioaned, to the
end that additional capital may be
acquired for the development of the
state"
The matter was referred by the
board to Attorney General McDougall
for his legal opinion on the PROPOSE
ton. I will come up at an early
meeting of the land board.
Would Affect Whole State.
AS a matter of fact this move
means much more to the state and to
the farmers especially that the saw
ing of 100000 in interest on the
amount the state could loan at this
time. The loaning of that much
money at 6 per cent would have
marked influence in lowering the gen
eral rate of interest in the state, and
this would be important. 1t would
turn loose in the agricultural districts
of the state this large sum of money
and at such rates that the farmers
could afford to use it in the develop
ment of their property, and this in
itself give a stimulus to agricultural
industry that would mean great
things to the state, which just now
needs capital for development above
all else.
Auditor Taylor has been assured by
well informed local inanciers that
there are bond houses and syndicates
that would be glad to take the ST.
O00,O in school bonds of the
states hands at per cent and pay
a premium besides. The plan, the
state auditor is assured. is feasible;
and the best opinions from bankers
and others he has consulted on the
subject is that it would be a splen-
did move for the state to make.
John T. Morrison appeared before
the board in the interest of the Thou
sand Springs Irrigation company,
which has a Carey Act project of g.
600 acres in the eastern part Of the
state. This was a matter that came
up before the former land board. 1t
was announced by Mr.. Morrison the
the company was now prepared to
carry ont its contract with the state.