American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1916-07-27
IN

Idaho is a new state, just beginning it's development.
Like a new farm, where the land has to be cleared, and
fenced, and new buildings provided, the costs of its Oper-
alton are high. Taxes are increasing because we are de-
veloping. We are expanding hundreds of thousands OF
dollars for good roads, and have only made a beginning.
In 1913 there was expended for new school buildings and
grounds $4,000. In 1914 about $4,000 were expended
for the same purposes. The cost of our schools is about
43 per cent of all the taxes we pay, and this expense will
increase. The earnings from our endowment funds, in
creasing rapidly as they are, are not increasing as fast
eminent instead Of less. Our only hope of relief is to
capitalize our resources and make them lift our burden.
This is not a new idea. Although. have gone to some
length in trying to make its operation. clear, one need to
remember but two things in order to understand it per-
fectly. These are:
IA sum of money placed at six per cent interest, the
interest added to the principal and reloaned annually,
will double in less than twelve years; and
2-Keep the money invested. O.
The first proposition is a mathematical proposition that
any school boy can demonstrate. The second needs no
demonstration. 1t is a certainty that no sane man will
pay nine per cent for money when he can get it for six.
With a hundred millions in farm loans now in this state,
and increasing every year, there is no reason to doubt
that we can keep our money working. All we need to do
is to make this money available. Our present system Of
making appraisements and of closing loans is responsible
for all the delay we have ever had in getting money out.
The development that will follow the financing of Ida
hos farmers and stockmen is one of the greatest advan-
tages of the system presented above. We lack both peo-
Pile and capital. Both will follow the adoption of this pol
icy. Every acre of land sold will not only take its place
on the tax rolls to bear its share of the cost of govern
meHI, DuJ VIII RELEASE IHe dHOuTJI U WHICH IL Sells LOT CHc
use of those who need capital, and Idaho will experience
a measure of development such as it has never had.
Criticisms of this policy have been made, but the most
bitter opponent will not deny that it will Immediately in
crease our common school revenues, eventually pay all
the costs Of our common schools, and take care of all the
costs of our university, the normals, the Pocatello Techni-
cal Institute, the asylums, the penitentiary, the state capt.
tOl and grounds, and provide our farmers with money they
so badly need at a much lower rate than they are now
paying.
If it will do all these things it is a good policy, and its
adoption can not come too soon for the welfare of all the
people of the state. Our present system of handling our
resources will not pay more than a small part of the
costs of any of these institutions.
Every insurance company, every bank or trust company,
every mercantile institution which has from a small be-
ginning grown strong has done so by reinvested earnings.
Hundreds of Idaho business enterprises are doing exactly
what / maintain that the state should do, putting a part
of their earnings back into the business. Almost every
town has it's example Of this kind.
| submit this plan of handling the states resources up
on an unbroken record of success. 1t has never failed and
never can fail. Our endowment funds can not be safer
than when invested in real estate mortgages, and when
invested on a plan that will make them double every
few years, failure is impossible. Our opportunity is now.
That other states have not adopted this policy before their
resources were exhausted is no reason why we should
not adopt it. 1t is sound in principle and practical in ap-
plication, and is the only remedy for our distress which
promises immediate relief and ultimate cure.
d. w. DAVIS.