Evening capital news. (Boise, Idaho) 1901-1927, 1916-05-14

the chairman of the state land board,
and the warrant is then again present |
ed to the governor for his signature !
and he indorses it on the back as |
chairman of the board of land commits |
sioners.
The warrant is then complete for the !
amount allowed and it is mailed by the |
land department to the applicant for
loan and with the applicants indorse-
ment added, 1t then a commercial
piece of paper and he is able to take it
to any bank and get his money.
The land board endeavors to make |
every loan as expeC.tiousty as possible |
but each loan is thoroughly gone over
in detail and | think is as quickly gone
over and allowed as Is any loan from
loaning company. Wit the system
adopted, and proper judgment exer-
cised, there will be losses on first
mortgage ans in Idaho
The interest has been reduced from
I to per cent and the borrower is re-
quired to pay one per cent of the
amount of money borrowed in orde-. to
pay for the expenses in making these
loans and to accumulate a little sink
ing fun in the course of time an for
the protection of some loan now and
then that is doubtful which is bound
to occur in the course of business no
matter how wei, looked after.
The state also buys school bonds of
the various districts of the state bear
ing per cent interest and under the
law the state has the first right to pur-
chase state school bonds issued by any
district in the state. However. the
! larger districts 90 not need the states
help as much as the smaller districts
which have to issue bonds of small
denominations I'd for which there is
not good mari-et. The state loans the
money to encourage the building up of
schools which is one of the funda-
mental principles of the state.
Has Two Fold Purpose.
Loans are us ally made for a term of
five years but they can be paid at any
time a man has the money and in
clination to take them up. The only
preference the state makes in the mat
ter of loans is in favor of the small
borrower who wants from $10) to $1,000
for the express purpose of Improving
his farm. No loans are made to ron
residents of the state, nor to spec
ulators, nor will the state deal with any
one indirectly, so no middleman need
apply. The state deals directly with
the applicant for tbs money. The
smaller the loan the greater the pre-,
ference and very few loans are made
to anyone but the bona fide settler. An
owner of farm land who lives in town
and let's someone else run his place has
very little chance for loan.
The loaning of this money has two
fold purpose; to get the interest for
the rreducible school fund and to
encourage actual ho-nebuilders.
, The state Loan only upon first mort
cages and good title.
Full inform 81, blank appli .ations
! and rules governing the Ioan.ng of state
money win be furnished free by appli-
; cation to the registrar of the state
: land board. Boise Idaho.
; It takes from =. week to a months
/ time to get loan approved and pass
, through the various channels and the
state endeayors to hurry matters when
1t is a case where one has to have the
money quicker.
/ No loans are made to any one person
for over $4,000 and no Land is appraised,
; no matter where located, for more than
500 per acre an the state loans only
I ne-third of the value of the land not
{ counting the improvements thereon
Sometimes the state loans a little
) more than one-third of the appraised
t value, depending upon the security and
t the object of the loan. The state does
3 not ask for any insurance to be carried
J. on any of the buildings.
In care of Carey act project or irri-
e cation district. the water certificate
r of stock mus be attached to the loan
t and assigned to the state.
Speculative Loans.
!, The state does not loan money on
timber lands on account of the fire