The Richfield recorder. (Richfield, Idaho) 1909-1931, 1916-04-21
DAVIS IS A H CHOICE

ent average is much higher. When
it becomes known that Idaho has
adopted a policy leading to alb
solute freedom from taxation, .
nation wide demand for Idaho
land will follow. BY requiring
only a small cash payment, with
long time, a low rate of interest,
and cas- payments on the amor
trouble in ~disposing of 100000
acres a year at even better prices
than are now being secured. Al
ready the proposal to inaugurate
this policy is being discussed In
financial publications throughout
the country, and with average
financial conditions, there will be
nc lack of applications for Idaho
land by the time this plan can be
put into operation.
But assuming that we realize only
start off with $4,000, 900 from the fiji st
years sale of 300, 900 acres. At 6 per
cent this woull carr $270, Geo. Add
b interest 10 t'a principal, and We
close the year with Z funl of $A,770, 900
Then add another $4,000 from the
sale of the second 100000 acras. bring
Ing the total to 1929 900. the earn
ing from which would be 1856 200.
Add this interest and 81, 500, 900 from
the third 300, 900 acres and the fund
becomes $14.326 200, more by a third
almost, than has been accumulated
since the land department was estab
lished, and we have Just entered the
third year. Continuing until the sales
have reached $500, 900 acres II the
end of the eighth year, selling only
100 900 acres that year and leaving
nearly 700, 900 acres or almost one.
fourth of the total as unstable we
have a permanent revenue producing
fund of 4S.710,9 1922 producing a rev.
enue of 81, 922,655. By the end Of the
tenth year the fund amounts to $54,
731 ,591. By the end Of the twenty
second the fund will have grown to
$109,8 18 1874. with an earning power OF
almost s7,000,00 Our taxes. accord.
ing to the report Of the tax commits
sion for 1913, the last available figures
state, county, school and all except
municipal taxes, are only about 49,
nm mn and IN kxrarfufx Wy uaoro ura
have developed a revenue producing
fund that will almost pay them. Is
twenty-five years a long time to wait
for such a result? If you think so
just look back over the past twenty.
two years and see how little has been
accomplished in comparison.
But our taxes will increase, and we
will need more revenue to meet them
Il we leave this fund untouched at
end OF the thirty-fcr-th year IT
will be 1929, 304. 1896; the ~forty-fourth
year s44S, 09S, 400; the fifty-eigbth
year $685., 184,3O4. At 5 per zen this
would give the state an annual income
# $50, 1851, 05S, certainly enough to pay
Ill our taxes and leave a surplus to
added to the principal which would
continue to grow, and mako Idaho
forever.
10 the accumulation Of SO vast
a capital from our u only
the product of a wild fancy? II
you have doubts, put the problem
In your schools, take It to your
banker, or study the growth Of
the Continental Commercial Ma
tionaI Bank of Chicago, the great
transportation companies, the life
Insurance. companies, or the STAN
lard oil Company. They all
reached present proportions
through reinvested earnings.
Suppose we reach only one-haH
this total, or even a fourth Of It,
in the time stated. II we sell
100000 acres at SIS per acre and
do moi reInvest the earnings our
maximum capital will be only
$37,500,000 and its earning power
only $2,250,000 a year inc here Il
stops forever. But II we add In
terest to capital each year and f,
reinvest, It doubles In less than I
twelve years, and by frightening
the time a little, we can reach the 1
billion dollar mark, and far pass
it. We can conserve or we can !
frltter away. But we cannot eat .
our pudding INT still have It. :
Six per cent interest, compounded .
nnually, is equal to 1888 per cent per :
mum in twelve years. 1850 per cent
annum in "a years, 1871 per cent Z
Sc years, 31.73 per cent in IS years '
$50 per cent In so years, 1888 per 4
mt in u years, 1926 PER cent in
years, and 273.64 per cent per an
In SO years. Begin with $40 and
s per cent interest, compounded
nually, for SO years. and see what q
surprising total 1t will reach. :
The present method Of handling