The Blackfoot optimist. [volume] (Blackfoot, Idaho) 1907-1918, 1916-09-21

merit Is evidenced by the fact that 1T
has the endorsement Of O. c. Beebe Of
Zion s Savings Bank & Trust Company
of Salt Lake, w. d. Vincent, vice pres
ident of the Old National Bank Of Spo-
kane, +. H. Parsons, cashier of the Pa
cific National Bank of Boise, the editor
of the Pacific Banker of Portland. and
financiers and students Of economies
He has not overlooked the more COM
monplace issues, such as good roads,
economy and efficiency in office, re-
moving state boards from political
domination and constitutional prohibi-
| ton, the righteousness of all of which
he champions, but is devoting the great
er part of his time and energies to q
discussion of the new issues he has
made. His ideas will be Of interest to
all of the western states which have
not exhausted their resources because
they apply elsewhere as well as in Ida
no. In a rcent statement he said:
"Idaho s resources can be made to
pay the costs of government. To do so
requires only that they be converted
into cash and interest bearing securities
and part of the earnings invested
each year. This statement is based on
thesfact that sum of money drawing
six per cent interest, the interest added
to the principal and reinvcstcd each
| will
years. 1t makes no difference how
large capital we have to begin with.
Our state lands are estimated worth at
least fifty million dollars. But even
if we can dispose of only enough of
them to realize one half of this amount
it will take only twelve years to in
crease the fund to fifty million dollars
by re-investing the earnings By con
tinuing this policy great fund would
soon develop, the earnings from which
would be in excess of the amount need
ed for all purposes for which taxes arc
now levied.
"There is nothing new in this idea
except its application to the handling
Of the states resources. Every insur-
ance company, every bank or trust
company, every mercantile institution
which has from small beginning
grown strong, has done so by reinvested
earnings. Hundreds of our business
enterprises are doing exactly what I
maintain the state should do; putting
a part of their earnings back into the
business. Almost every community has
it's example Of this kind, and this fact
has made it easy for the people to grasp
the possibilities that this plan holds
That eastern states did not adopt this
policy before their resources were ex.
hausted is no reason why western states
should not adopt it.
81 advocate the conversion of our re-
sources into interest bearing securities
using a part of the earnings for current
expenses and re-investing the surplus
earnings. The cost of our common
schools, the University, our two state
normals, the Technical 1ntitute, the
School for the Deaf and Blind, Indus
trial School, Soldiers Home, the north
and south Idaho asylums for the in
sane, the penitentiary, the capital
buildings and grounds can be provided
in this way and surplus beyond their
Reeds Developed. When this condition
s.t:,-,. g..-.u WI be no reason why
- ,""ro.!"a surplus can not be APP
70 met ether expenses for which
So ,<,;"a, ana thus ultimately
a.asc cur resources pay all the costs of
government, unless the people them
selves prefer to continue paying ia xes.
Mr.. Davis has issued lengthy state
ment setting forth in detail his plan
of handling and administering Idaho s
resources and the establishment of a
simple state rural credits system that
will interest laymen as well as stu
dents of conomics.-Pacific Coast
| Monufa rturpr