The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-03-24
PRESENTS 4
WORTHY PLAN OF
STATE FINANCES

and school bonds last Apl!l and Ma,
from the Land Department to TIL
Treasui cr's Office, number o
changes in The method of making
loans, collection of interest and prin
cipal and the sale of State lands hav,
come to my mind which | think will
materially affect taxation, reduce in
terest rates, enhance the States en-
dowment funds and simplify the States
methods of doing business and reduce
the cost thereof.
My reason for presenting the plar
for consideration at this time is be
cause it requires legislative action ane
such important changes should be dis
cussed pro and con before the legis
lature meets, so that bills may be
drawn that will meet the approval Of
the people. These securities and lands
belong to the people who are living
in ldal o now. just as much as to
those coming here in the future and
surely we of the present are entitled
to all the benefits possible from these
funds and lands, both directly and in
directly-provided only that we safe
guard the original funds for the use
of those coming later.
Idaho has over 2H million dollars
invested in farm mortgages bearing
and 7%o interest payable semi-an-
nually; about the same amount invest
ed in school bonds bearing and SO
interest payable semi-annually and
about million in land sale contracts
bearing 81 payable annually. In
other words, the State is getting
about SO interest on over 10 million
dollars from the sale of its permanent
endowment fund lands. We still have
for sale approximately million acres
of other endowment fund lands (about
100000 acres Of which is covered with
merchantable timber.) 1t is estimat-
ed that when all this land and timber
is sold, Idaho ought to have upwards
of 100 million dollars 10 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 re-
duced from time TO time to meet COM
mercial rates. but why not begin now
and reduce commercial rates and get
all other possible benefits as well?
The recent extension of time for the
payment of state land purchases from
10 to 40 years, on the partial payment
plan, has noticeably stimulated buy
ing and materially increased the bids.
How much more money the State
would get from the sale of its lands
by material reduction of interest
and long time amortization of the
principal, can only be estimated, but
that it would be extremely profitable
to the State by the increase in the val
Tie of its lands, none will even doubt
and that other lands would rise in
value is also self-evident. That every
school district, taxpayer and borrow
er of money would be benefited is
also just as self-evident. Every dol
lar of increase in the value of the
States lands adds just that much
more to the amount of the endowment
funds which will earn interest for all
time and as this interest is all used
for the expense of schools and the
state institutions, it reduces taxes &C
cordingly.
So far as the future sale of our land
is concerned, it would well pay the
state to sell on a So basis-that is +%
interest and l@o amortization of the
principal This would certainly en-
nance the price of the land far beyond |
the difference in interest for a few |
years besides the increased price
would be in the permanent endow-
ment funds and would be to loan for |
all time.
The greatest handicap to the de-
velopment of our state at this time is
the high rate of interest our farmers,
merchants and manufacturers are
compelled to pay to get money to
make their improvements. If we
could mobilize the 100 million into
loans the next few years at a low rate
OF interest, ON the lGo amortization
plan, Idaho would not need Govern
ment aid to get cheap money.
We now have between 1900 and l40O
farm loans. made on lands in almost
every county OF the State. These
loans range in amounts from $500 to
$4,000 and cover from S to 23OO
acres. The records show that the
small borrower pays both principal
Isd interest more promptly than the
larger one, and any banker will testify
that 10 loans of 500 are safer than
one loan of $1,000 based on an equal
security. While in my judgment, it
would be very unwise to unnecessar-
lily restrict large loans. the small loan
should always have the preference.
regardless OF the highe, proportionate
expense of making it, which in fact
is too small to consider. That small
loans will aid more Deoole should be
a sufficient reason for the loan and
for the cheerful assistance of every
official in whatever station he may
serve.
The long time amortization plan of
loans at low rate of interest and
with small amortization of the prin-
clpai is not new thing. 1t has been
tried out successfully in many places
and always with great advantage to
the people. 1t has the direct effect
Of otf-setting taxes. stimulating inn
Drovement of lands in particular and
he development of the states re-
sources in general, and increases very
materially the desirability of the new
= X + X + X X X X X X + +