Arizona sentinel and Yuma weekly examiner., 1913-08-07
Washington, D. c.
Dear Sir

l In as much as the conferences nav been held relating to the differen reclamation projects and the reclama tion service, and in as much as 1 an somewhat interested at Yuma Ariz ona, under the government projec there, l wish to suggest that it seems to be the opinion of a great many tha one of the great retarding factors il the development of these projects, i! the lack of ready credit. A grea deal has been said lately about fur nishing more ready credit to farmer: in Illinois and other states, and bank | ing associations have interested them selves in extending credit to farmers making it a special business. The re suits are reported as being surprising ly beneficial both to the banks and tC the farmers.
 The Canadian Pacific Railway Com pany has realized that land credit is necessary, and is making twenty year loan to purchasers of their land who actually settle upon the lant with the intention of farming. A loan of $2,000 is granted on tract of 16 acres, and the rate of interest is only 6 per cent. Over and above this the purchaser pays for his land in 20 annual installments at 6 per cent The Yuma rates run from 10 to r. per cent.
 You have a rule, believe, or law which limits the acreage to which wat CT will be served for any one person company or corporation. You also have law making it at least extreme ly burdensome for non-residents tC hold any of the property under the government projects.
 The development of a new country, depends largely, in my opinion, upon a flexible land credit. A loan and Trust Company could do a great dea of good in the Yuma District, anC could iaself build up a substantial ant profitable business in loaning money at a reasonable rates, instead of a rate of 10 and 12 percent, if it wer, not for the law limiting the acreage to which water will be supplied for any one person or corporation. A Loan & Trust Company, however, would hardly be justified in establish ing abusiness, where it's business would depend upon project lands, and where one must always consider what might ultimately be the result. h loans were made on great many acres, and depression should come, and foreclosure necessary, and no redemp- tion should be made, the Loan & Trust Company would have to carry the land, and would have to make thu .and pay it's way as far as possible by production of crops. But it seems that the acreage to which water would be served would be limited, and if the price of the land should be dowL at the time, the Trust Company would be forced to sell at a sacrifice and loss, while it might feel vedy conf. lent that if the land were held a year or two or three, much more than the money invested would De realized
 1 am especially interested in this proposition, because several gentle men have spoken about the difficulty in obtaining money for reasonable rates, and who would be interested in starting Loan & Trust Company, or ] Martgage Investment Company in that district.
 I would be pleased to hear from you regarding this matter. The lap6 is expensive, and it takes more money 70 farm under these projects than il does up here, and if any district should be unhampered in obtaining a land credit, it is such district as this.
 Very truly yours,
 J. w. SCHMITT.