Evening capital news. (Boise, Idaho) 1901-1927, 1916-05-14

Editors note.-C overnor Alexander
has prenared series o. articles on
state government and how the affairs
Of the people OF Idaho are handled by
state officials. Tie following article
deals with the work of loaning money
the board of lad commissioners.
Other articles will follow from time to
eFhe on subjects of interest with regard
to the way in which the administra-
tive officers of the state take care of
a vast volume OF business).
BY Moses Alexander, Governor idaF
The state of IDAHO in addition to
other business, operates quite an ex-
tensive bank. in fact the largest in the
state. Its resources are larger than that
OF any two combined banks in the state.
1t has assets and no liabilities and the
bank is virtually rtr by five directors,
who are the members of the state land
board. consisting of the governor, at
torney general, secrets ry of state, state
auditor and superintendent Of public
instruction. The governor is the
president of tho bank and the other
members are active directors.
This bank has on hand on May !,
1916, 1921, 34640. 1t is run on the same
principles as an other organization.
The money is loaned out at interest to
| the -arious banks throughout the state,
he interest being " per cent per an
khum on daily balance, and subject to
call on check without notice at any
day or any hour. This money is earn
ing something all the time for the state
and at the same time helps the COM
munities where deposited by swelling
bank deposits and making loans and
discounts easier. Any bank in the state
that applies for state money can have
II by putting up the right kind of a
bond
The money loaned out on farm
mortgages consists of the irreduc'ble
school fund first, next the agricultural
college endowment fund; university
endowment: normal schools endow-
ment; school 4 science endowment;
penitentiary endowment; charitable in
situations endow,2cnt
On the first OF May there was about
$4,000 in these funds to be loaned
out. This money is virtually all loaned
on first mortgage farm loans through
.%ght the state. The final papers on same
Ye6re not yet made out but are coming
in from day to day Mvre money is
coming in all tho time and the state Is
anxious to loan this money to the bona
fide settlers of the state Those loans
ire growing from year to year, and the
interest is the only part used.
How Money is Loaned.
The process of loaninS money Il
about as follows:
y The state furnishe a blank appl.ca'
ton to the party applying; the Dor
= rover fills 1t out, swears to it, and at
taches a bank draft or certified check
for one per cent of the amount of the
loan asked for aGd mills it to the reg.
lister % the land department. who II
turn enters il and turns it over to tn,
commissioner of the land department
who looks 1t over carefully and If thu
application Is made out in the prope,
manner, he then turns it over to ONT
of the field men, who has to report frs
on the location of the land, the county
post office address of the applicant
4 number of acres quality of sell, anC
water supply. where obtained from
Smount of shares If in an irrigation
project. tho kind of Improvements, kinC
of fencing. and kind of crops that arr
beinr raised and have been raised II
4 order 4, show the p oductiyeness o
the land; also the general character C
the applicant, his ability to pay inter
est and principal back vii lin five year
and such other information as amour
of rainfall. and then send his repor
attached to the application back to tn
commissioner of the land department
The ,mmissiCner then takes the re
mort and goes over It again and l. h
finds anything lacking, II Is added Q
corrected and then he passes upon |
with his deductions either recon-
mending the loan, reducing the amount
or rejecting it.
When this is done, the application
for loan comes before the land boar
In full session nd the land board re
EoIves itself into committee on loan:
Every loan Is acted upon separated
and again gone over in detail, the ap
plicant's statement. the field man
notification and the report Of the Ian
commissioner. and II the reports ar
found satisfactory, the loan is then al
lowed or reduced, or II not satisfactor!
Is rejected.
No Preference Shown.
No preference is shown in the loan
ing of state money. Every application
n given full consideration and Is al
lowed or disallowed as the facts exis
The loan is considered from the poin
of security and from no other point
When loans have passed the Ian
board, they are then taken back by tn
register of the state land board and
y the abstract of title is found alrigt
after being examined by the attorne
general, the register then draws a
order signed by the governor and him
self on the state auditors departmer
and the auditor then issues an orde
on the state treasurer in favor