The Twin Falls times. [volume] (Twin Falls, Idaho) 1905-1916, 1916-03-21
SUGGESTS CHANGES IN
LAND LOAN SYSTEM
State Treasurer John w. EaglestOn
Would Have Counties Loan Money
at Low Rates to Small Owners.

The following excerpts are taken
from a pamphlet entitled "a Plan to
Use Our State Endowment Funds at
Lower Interest" issued this week by
State Treasurer John w. Eagleston.
The plan involves the loaning of
money from state endowment funds
through the several counties under the
direction of the several boards of
county commissioners, at low rate,
preferably in small amounts. Mr..
Eagleston claims that this would raise
the price of state lands and on the
other hand would encourage develop
ment through lowering the interest
rates.
Since the transfer of the mortgages
and school bonds last April and May
from the land department to the
treasurer's office, a number OF
changes in the method of making
loans, collection of interest and prin-
cipal and the sale of state lands have
come to my mind which l think will
materially affect taxation, reduce in
terest rates enhance the states en-
dowment funds and simplify the
states methods Cf doing business and
reduce the cost thereof.
My reason for presenting the plan
for consideration at this time is be-
cause 1T requires legislative action,
and such important changes should be
discussed pro and con before the leg
islature msets, so that bills may be
drawn that will meet the approval of
the people.
Idaho has oveI two and one-half
million dollars Invested in farm mort
cages bearing 6 and per cert inter-
est, payable semi-annually; about the
same amount invested in school bonds
bearing and rer cent interest, pay
able scmi-annually, and about five
million in land sale contracts bearing
6 per cent payable annually. In other
words, the state is getting about per
cent interest on over ten million dol
lars from the sale of its permanent
endowment fund lands. We still have
for sale approximately three million
acres OF other endowment furd lands
(about seven hur dred thousand acres
of which is covered with mercantable
TIMBER.
1t is estimated that when all this
land and timber is sold Idaho ought
to 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 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 and re-
duce commercial rates and get al
af1,a,- rOcoihIa hon afitc Wpll2
The recent extension of time for The
payment of state land purchases from
16 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 it's land!
by material reduction of interes
and a long time amortization of the
principal can only be estimated, blu
that it would be extremely profitable
to the state by the increase in thu
value of its lands none will even doub
and that other lands would rise II
value is also self-evident. That every
school district, taxpayer and borrower
of money would be benefited is also
just as self-evident. Every dollar Of
increase in the value of the states
ldnuS auuS just tnal much more W IHt
amount of the endowment funds which
will earn interest for all time, anC
as this interest is all used for the ex-
penses of schools and the state insti
buttons, it reduces taxes accordingly
So far as the future sale of our lane
is concerned, it would well pay the
state to sell on five per cent basis
that is four per cent interest and one
per cent amortization of the principal
This would certainly enhance The
price of the land far beyond the diff
ference in interest for a few years
besides the increased price would be-
in the permanent endowment fund:
and would be to loan for all time.
The greatest handicap to the devel
opment of our state at this time is
the high rate of interest our farmers
merchants and manufacturers arr
comnalled IN nav IN act money RI