Evening capital news. (Boise, Idaho) 1901-1927, 1916-03-12
new PLAN FOR THE MAKING OF
STATE LOANS PROPOSED
John W. EagbsOn, State Treasurer, Suggests
Substantial Reduction In Interest Rates
and Long Time Amortization

state Treasurer John w. Eagleson
yesterday issued statement propos-
ing Il plan by which he claims the
state stands to earn much more on
the funds that ii loans at greater con-
venience to its borrowing citizens. He
points out that the state stands to Sc
cure greater earnings on its money by
a material reduction of interest rates
and long time amortization OF the
principal, while the states lands would
be materially increased in value and
every school district, taxpayer and
borrower of money would be benefited
The statement of Treasurer Eagleson
Is as follows:
'Since the transfer Of the mortgages
and school bonds last April and May
from the land department to the treas
urer's office, number Of changes in
the method of making loans, collection
of interest ana principal and the sale
of state lands have come to my mind
which l think wll materially affect
taxation, reduce interest rates, enhance
the states endowment funds and sim
plify the states methods of doing bus
mess and reduce the cost thereof.
"My reason for presenting the plan
for consideration at this time is be-
cause it requires legislative action and
such important changes should be dis
cussed pro ana con before the Iegis-
lature meets so that bills may be
drawn that win meet the approval of
the people, These securities and lands
belong TO the people who are living in
Idaho now, just as much as to those
coming here in the future and surely
we Of the present are entitled to all the
benefits possible from these funds and
lands, both directly and indirectly
provided only that we safeguard the
original funds for the use of those COM
ing later.
Millions Invested.
idaho has over $500, 900 invested in
farm mortgages bearing 6 and I per
cent interest payable semi annually;
about the same amount invested in
school bonds bearing and per cent
interest, payable semi-unnually and
about S5.o00000 in land sale contracts
bearing { per cent payable annually
In other words, the state is getting
about per cent on over $4,000, 600
from the sale Of its permanent en-
dowment fund lands. We still have
for sale approximately 100000 acres
of other enjoyment fund lands
Cabout 100000 acres Of which is COW
cred with merehantable timber). 1t
is estimated that when all this land
and timber is sold Idaho ought to
have upwards Of SfoO00O,O0O 10 invest
IN farm loars and school bonds. This
vast sum Of money IT secured, and
used for the peoples benefit as it ac-
cumulates will control and lower the
interest rates charged in the state In
any event, the present rates must be
reduced from time te time to meet COM
mercial rites. but hy not begin now
and reduce commercial rates and get
all other possible benefits as well?
The recent extension Of time for
the payment of state land purchases
from Is to 40 years, on the partial
payment plan, has notieeably stimulate
cd buying and materially increased the
bids How much more money the state
would get from the sale of its lands
by material reduction Of Interest and
long time amortization of the prin-