Camas Prairie chronicle. [volume] (Cottonwood, Idaho) 1901-1917, 1916-03-31
Would Use State Funds
at Lower Interest
State Treasurer Suggests Plan
Whereby State Funds May
be Loaned at Low Rates on
Long Time Payments.

cages and school bonds last April
and May from the land depart
ment to the treasurer's Office, a
number of changes in the method
of making loans, collection of in
terest and principal and the sale
of state lands have come to my
mind which think will materi-
ally affect taxation, reduce in
terest rates, enhance the states
end ,wment funds and simplify
he states methods of doing bust
ness and reduce the &C st thereof.
My reason for presenting the
plan of consideration at this time
is becaus it requires legislative
action, and such important
changes should be discussed pro
and con before the legislature
meets, so thatabills may be drawn
tn At will meet the approval of the
people. Tn sse 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 in
directly, provided only that we
safeguard the original funds for
the use of those coming later.
Idaho has over two and one
half million dollars invested in
farm mortgages bearing 6 and Z
per cent interest, payable semi
annually; about the same amount
invested in school bonds bearing
5 and 6 per cent interest, payable
semi-annually, and abont five
million in land sale contracts
bearing 6 per cent payable an
nually. In other words, the state
is getting about 6 per cent inter-
est on over ten million dollars
from the sale of its permanent
endowment fund lands. We still
have for sale approximately three
million acres Of other endow-
ment fund land (about seven
hundred thousand acres of which
is covered with merchantable
timber).
1t is estimated that when all
this land and timber is sold Idaho
ought to have upwards of one
hundred million dollars to invest
in farm loans and school bonds.
This vast sum of money, if Sc
cured and used for the peoples
benefit as it accumulates, will
control and lower the. interest
rates charged in the state. In
any event, the present rates must
be reduced from time to time to
meet commercial rates, but why
not begin now aud reduce COM
mercial rates and get all other
possible benefits as we'll?
The recent extension of time
for the payment of state land
purchases from I6 to 40 years, on
the partial payment plan, has
noticeably stimulated 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 amorti-
cation of the principal can only.
be estimated, but that it would
be extremely profitable to the
state by the increase in the value
of its lands none will even doubt
and that other land would rise in
value is also self-evident. That
every school district, taxpayer
and borrower of money would be
benefited is also just as self-evi-
dent. Every dollar of increase
in the value of the states lands
adds just that much more to the
amount of the endowment funds
which will earn interest for all
time, and as this interest is all
used for the expenses of schools
and the state institutions, it re-
duces taxes accordingly.
So far as the future sale of our
land is concerned, it would we'll
pay the state to sell on a five per
cent basis-that is four per cent
interest and one per cent amorti-