Payette enterprise. (Payette, Canyon Co., Idaho) 1909-1935, 1916-08-17
SOMETHING NEW
TO THINK ABOUT
PLAN or D. W. DAVIS TO
LIFT TAX BURDEN IN
IDAHO.
New West Magazine

The West is indebted to Idaho fol
the introduction of new political sub
jects The thinkers have been Civ
en- something to think about. Sena
tor D. w. Davis, the American Falls
| banker and farmer who is a candi
! date for the Republican nomination
! for governor of Idaho, has supplied
the new subjects, and has so forci
bly, presented his ideas as to at
tract the attention of people with
out as well as within his own state.
His plan is to capitalize the re-
sources of Idaho and make them
lift the tax burden and at the same
time supply funds for a simplified
rural credits system that will fl
nance the producers of his state and
greatly reduce their interest pay
ments. That his plan has merit is
evidenced by the fact that it has
| the endorsement of o. C. Beebe of
lions Savings Bank & Trust Com
pany of Salt Lake, w. d. Vincent,
yice-president of the Old National
Bank of Spokane, F. H. Parsons,
cashier of the Pacific National Bank
of Boise, the editor of the Pacific
Banker of Portland, and large
number of other financiers and stu
dents of economics. He has not
overlooked the more commonplace
issues, such as good roads, econ
omy and efficiency in office, re-
moving state boards from political
domination and constitutional prohi-
bition, the righteousness of all of
which he champions, but is deyot-
ing the greater part of his time and
energies to discussion of the
new issues he has made. His ideas
will be of interest to all the west
ern states which have not exhaust
ed their resources because they APP
ply elsewhere as well as in Idaho.
In a recent 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 bear
ing securities and part of the
earnings reinvested each year This
statement is based on the fact that
a sum of money drawing six per
cent interest, the interest added to
the principal and reinvested each
year, will double in less than twelve
years. 1t makes no difference how
arge a capital we have to begin
with Our state lands are estimated
20 have a value of at least fifty
million dollars. But if we can readi-
y dispose of only enough of them
% realize one-half of this amount it
will take only twelve years to in
,rease the fund to fifty million dol
ars by re-investing the earnings. By
continuing this policy great fund
would soon develop. the earnings
rom which would be in excess of
he amounts needed for all purposes
or which taxes are now levied. Il
There is nothing new in this
dea except its application to the
handling of the states resources.
every insurance company. every
'ank or trust company, every mer-
antile institution which has from
small beginning grown strong has
one so by re-invested earnings. Hun
reds of our business enterprises are
DING exactly what l maintain the
tate should do; putting part OF
heir earnings back into the business.
.lmost every community has it's ex-
mple of this kind, and this fact
as made it easy for the people to
rasp the possibilities that this plan
olds. That eastern states did not
dept this policy before their re-
ources were exhausted is no reason
ny western states should not adopt
81 advocate the conversion of our
into interest bearing secur-
les, using a part of the earnings for
urrent expenses and re-investing the
1rplus earnings. The cost of our
ommon schools, the University, our
yo state normals, the Technical In
.itute, School for the Deaf and
lind, Industrial school, Soldiers
ONE, the north and south Idaho
sylums for the insane, the peniten- q
airy, the capital building and
can be provided in this way u
nd surplus beyond their needs Q
syeloped. When this condition is
cached there will be no reason why
lis unneeded surplus can not be n
oplied to meet other expenses for
hich taxes are levied, and thus al U
mately make our resources pay all D
lie costs of government. unless the n
sople themselves prefer to continue
aging taxes" :