Payette enterprise. (Payette, Canyon Co., Idaho) 1909-1935, 1916-03-23
STATE TREASURER EAGLESON
PROPOSES PLAN WORTHY
OF CAREFUL CON-
SHERATON.

lands, which he believes will ma
| terially affect taxation, reduce inter
est rates, enhance the states endow
ment funds, simplify the method o
doing business and reduce the cost
His plan is submitted at this time
as it will require legislative action
and he desires full and free discus
sion of his suggestions before the
| Legislature meets.
| Idaho has over two and one-hali
million dollars invested in farm mort
cages, bearing and Z per cent in
terest, payable semi-annually. 1t has
about the same amount invested in
school bonds at the same interest
rate, and about five million dollars
in land sale contracts bearing 6 per
cent interest, payable annually. In
other words, the state is getting
about per cent interest on over
ten million dollars from the sale of
it's permanent endowment fund lands
The state has still for sale approx
mately three million acres of endow-
ment fund lands, about seven hun
dred thousand acres of which are
covered with merchantable timber 1t
is estimated that when all this land
and timber are sold the state should
have upwards of one hundred mil
lion dollars to invest in farm loans
and school bonds.
This vast sum of money, if secured
and used for public benefit, as it &C.
cumulates, will control and lower the
interest rates charged in the state,
In the opinion of Mr. Eagleson. In
any event, he states, present interest
rates must be reduced from time to
time to meet commercial rates. Why
not reduce them now, he asks, in
order to get other possible benefits?
The recent extension of time for
the payment Of state land purchases
from 16 to 40 years has greatly slim
ulated their sale
"How much more money the state
would get from the sale of its lands
by a material reduction of interest
and long time amortization of the
principal can only be estimated, Says
The treasurer. "That it would be ex-
profitable to the state by the
Increase in the value of its lands,
hone will even doubt, and that other
ands would rise in value is also. self
evident.
"That every school district, tax
payer and borrower of money would
,e benefited is also just as self-evi-
lent Every dollar of increase in the
Talue Of the states lands add just
hat much more to the amount Of,
he endowment funds which will earn
interest for all time, and as this in
crest is all used for the expenses Of
schools and the state institutions, 1t
educes taxes accordingly"
Mr.. Eagleson recommends the sale
If state lands on a 5 per cent basis;
hat is, per cent interest and 1 per
.ent amortization of principal
The greatest handicap to agricul-
ural development, he points out, is
he high rate of interest that farmers,
nerchants and manufacturers are
obliged to pay for money to make i'm
,rovements. By mobilizing one hum
red million into loans in the next
ew years at low rate of interest on
he per cent amortization plan, Ida
10 would not need government aid to
let cheap money.
There are now between 1900 and
400 farm loans on lands In almost
very county in the state. They range
rom 5000 to $4,000, and cover tracts
+ from five to 1900 acres. Records
how that the small borrower pays
9th principal and interest more
romptly than the large borrower.
'ankers will agree that 10 loans of
100 each are safer than one loan OF 1
1000, based on equal security. Small {
.ate loans are therefore desirable.
The amortization plan which he Of '
,rs is not new, says Mr.. Eagleson. t
has been tried out successfully in
any states.
Instead Of relying solely upon the t
'ports Of appraisers, the state treas a
rer recommends that county COM a
issioners should report on the val O
IS Of land offered as security for d
ate loans. They should be more p
miliar with the values and they t
ave assessments to guide them also. n
hey likewise equalize land values "
,arly. County attorneys could pass n
/ abstracts, relieving the attorney a
'nerals office Of this work. Col
ctions could be made by county e
easurers, being made a part Of tax s,
,tices The county treasurer could C