The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-06-04

ing places. The money centers too
have been benefited, for they have
exchanged money, fraction Of which
would otherwise lie idle, for bonds
(the equivalent of, and which may at
any time be exchanged for money!
bringing revenue.
3. The nations industrial relations
are SO intertwined that what affects
the prosperity of any considerable
part affects the prosperity of all. New
York City, for instance. does not pro-
| duce grain of wheat pound of me-
tai. or a foot of timber. Her wealth
and industrial life depend upon the
prosperity of the industrial sections
over which her business operations
sponsive to every considerable change
in the, fortunes of the world
But the settlers of the arid west are
not included in any of the rural credit
bills thus far presented to congress.
Hon. /. D. O'Bonneil, in a statement
recently made in the Reclamation
Record calls attention to this fact.
and states that certain Senator, who
has been active in securing benefits
for the settlers, stated that he had
| u
that there was no way by which the
settlers could be included.
The difficulty arises from the fact
that cheap money can only be secured
on gilt edged security, consisting of a
hrst mortgage on not to exceed 50
per cent of the market value of the
land. The settlers land is already en-
numbered with first mortgage lien
for water right. 1t will probably be
exceedingly hard to get any real bene-
tcial rural credit bill through con-
greSs, for while undoubtedly many
OF our public men are strong and
fearless, too many. | fear, have not
spine enough to run up against the
powerful banking interests. which are
a unit against it.
| mean not the least reflection upon
our Idaho representatives in Congress
when | say that it is up to those who
have the interest of the western set
tier, and the interest of the middle
west Tor that matter, at heart, to work
out a practicable solution to the
difficulty, and to create a sentiment
in its favor that must be reckoned
with in our national councils.
We have two fertile suggestions in
our ordinary insurance policy, and the
TACT that for many years Denmark has
guaranteed rural loans to very nearly
the market value of the land, and to
a recent date (the last figures that |
have) she had lost less than two
thousand dollars, or an insignificant
fraction of one per cent.
The scheme would work as follows.
Farmer "a, who has a lien for water
right for, say 50 per cent Of the unin-
numbered value of the land applies
tor loan for say 40 per cent addition
al, which would increase the incum-
berance to 90 per cent The sum
would be raised by a government
guaranteed bond for the amount of
the loan, the government deducting
ABOUT per cent as an insurance to
cover the risk. An amount not ex-
ceedlng one per cent, per annum, if
| thought advisable, could be added to
interest and amortization, all in ex-
cess OF the amount required to meet
| losses and costs to either be returned
to the borrower from time to time.
or put to his credit against future
payments.
With per cent initial charge and |
per cent per annum, 20 years after
the loans for any one year are made
about one-fifth their total amount
would be paid into the insurance fund
or enough to meet all losses under
the most trying circumstances several
times over. even if the land had no
value above the lien for water RIGHT
| believe that two per cent initial in
surance charge would cover all losses
and that therefore the per annum
charge would be unnecessary. or nrac.
tically its entire amount would be re-
turned to the borrowers. 1t is not i'm
probably that bonds with such securi-
ty behind them would command a
premium that would considerably re-
duce the interest charge.