The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1911-07-27
STATE TO LOAN
CASH ON FARMS
Will Help the Farmers, De-
velop the State, and
Lower Interest.

EN- ID. Tayl0r 10 take Inc $Z,UUU,-
10000 endowment funds from it's
present investment in school dis
trict bonds and loan it to farm
ers of the state at an increased
rate of interest, and Endorsed the
idea.
Last Saturday Auditor Taylor
introduced a resolution at a meet
ing of the State land board in
Boise along this line, and which,
if carried to its 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 in
terest ON loans. In brief, it means
the transfer of the endowment
funds of the state from invest
ments in school district bonds to
farm loans.
The interest received by the
state ON these bonds now is s.
per cent. Ii transferred to- farm
loans it would be raised to 6 per
cent. The state now has 2,00O,-
10000 in such bonds, so that this
increase Of i per cent in the in
come would mean an increase of
500, 600 a year in the revenues of
the state.
But it is the farmer who is com
PEELED to borrow money to inn
prove his land that would be the
principal gamer. The Idaho farm
ers are now paying an average
of approximately 8 per cent on
the money borrowed in the east.
If instead of borrowing 81, 900, 600
in the east at per cent they
could borrow this $2,000,000 from
the the state right at home, they
would save 3 per cent on the
$2,O00,0OO, or 100000 a year
which is no mean item. Auditor
Taylor resolution submitted to
the land board is as follows:
Resolution Submitted.
Whereas, The state board of
land commissioners has for many
years pursued the policy of in
vesting the endowment funds of
the state largely in school dist
riot bonds, and have by reason of
such policy accumulated approx
imately $2,000,000 worth of such
securities and
Whereas, 1t is the sense OF
this board that the time has ar
rived when it is deemed advis-
able to dispose of said securities
and turn the same into cash, with
view of reinvesting said funds
in farm loans and thereby earn
ing an additional / per cent on
the endowment funds and saving
the farmers of the state from 3 tC
A per cent interest charges; there
fore be it
"Resolved, By the state board
of land commissioners that the
proper officers be instructed to
negotiate the sale of said securi-
ties, 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 reloan-
ed, atoathe end that additional
capital may be acquired for the
deyelOumeTt of ethe state.
This matter was referred by
thel board to Attorney General
McDongall for his legal opinion
ON the proposition. 1t will come
up at an early meeting OF the
land board.
Would Affect Whole State.
As matter of fact this move
means more to the state and to
the farmers especially than the
saving of $4,000 in interest Oh
the amount the state could loaI
at this time. The loaning of that
much money at 6 per cent would
have marked influence in lower
ing the general rate of Interest
in the state, and this would be
important. 1t would turn loose
in the agricultural districts of thu
state this large sum of money
and at such rates that the farm
ers could afford to use it in the
development of their property
and this in itself would give q
stimulus to agricultural industry
that would mean great things t.
the state, which just now needs
capital for development above
all else.
Auditor Taylor has been assur
ed by well informed local finan
ciers that there are bond houses
and syndicates that would b.
clad to take the 100000 il
school bonds off the states hand
= -- on..4 md now q rrar1 IN M