The Blackfoot optimist. [volume] (Blackfoot, Idaho) 1907-1918, 1916-05-25

How the Land Board Loans
ldaho's Money
COMMISSIONERS BECOME WHO PLACE MONEY At
THREE HALF PER CENT PER ANNuM~THE PROCESS

The State Of Idaho, in addition tc
other business, operates quite an ex
tensive bank, in fact the largest in tht
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 run by five
directors, who are the members Of the
State land board, consisting Of the gov
ernOr, attorney general, secretary of
state, state auditor and superintendent
of public instruction. The governor is
the president of the bank and the other
members are active directors.
This bank had on hand on May /,
1916, $1,231, 346.49. 1t is run on the
same principles as any other organiza-
ton. The money is loaned out at inter,
est to the various banks throughout the
State, the interest being 31a per cent
per annum 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
communities where deposited by swell.
ing bank deposits and making loans
and discounts easier. Any bank in the
State that applies can have it by put
ting up the right kind Of bond.
The money loaned out on farm mort
cages consists of the irreducible school
fund first, next the agricultural college
endowment fund, university endowment,
normal school endowment, school of
science endowment, penitentiary en-
dowment, charitable institutions en-.
dowment.
On the first of May there was about
100000 in these funds to be loaned
out. This money is virtually all loaned
on first mortgage farm loans through
Z out the State. The final papers on same
are not yet made out, but are coming
in from day to day. More money is
coming in all the time and the State is
fde settlers Of the state. Those loans
are growing from year to year, and the
interest is only part used.
How Money Is Loaned.
The process Of loaning money is
about as follows:
The state furnishes blank applica-
ton to the party applying; the borrow
er fills it out, swears to it, and attaches
bank draft or certified check
for one per cent Of the amount Of the
loan asked for and mails it to the reg
lister of the land department, who in
turn enters it and turns it over to the
commissioner of the land department,
who looks it over carefully and if the
application is made out in the proper
manner, he then turns it over to one
of the field men, who has to report first
on the location of the land, the county,
post Office address Of the applicant,
number of acres, quality Of soil, and
water. supply, where obtained from,
amount of shares if in an irrigation
project, the kind Of improvements, kind
of fencing, and kind of crops that are
being raised and have been raised in
order to show the productiveness Of
the land; also the general character of
the applicant, his ability to pay inter-
est and principal back within five years
and such other information as amount
of rainfall, and then send his report
attached to the application back to the
commissioner of the land department.
The commissioner then takes the re-
port and goes over it again, and if he
finds anything lacking, it is added or
corrected, and then he passes upon it
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 board
in full session and the land board re-.
solves itself into committee on loans.
Every loan is acted upon separately
and again gone over in detail, the APP
plicant's statement, the field mans
verifcation and the report of the land
commissioner, and if the reports ARE
found satisfactory, the loan is then al
lowed or reduced, or if not satisfactory,
is rejected.
No Preference Shown.
No preference is shown in the loan
ing of state money. Every application
is given full consideration and is al
lowed or disallowed as the facts exist.
The loan is considered from the point
of security and from no other point.
When loans have passed the land
board, they are then taken back by the
register of the state land board and if
the abstract of title is found alright
after being examined by the attorney
general, the register then draws an |
order signed by the governor and him.
self on the state auditors department |
and the auditor then issues an order
on the state treasurer in favor Of !
the chairman of the State land board,
and the warrant is then again present
ell to the governor for his signature
and he indorses it on the back as chair
man of the board Of land commission
ers.
The warrant is then complete for the
amount allowed and it is mailed by the
land department to the applicant for
loan and with the applicants indorse-
ment added, it is then a commercial
piece of paper and he is able to take it
to any bank and get his money.
The land board endeavOrs to make
every loan as expeditiously as possible,
but each loan is thoroughly gone over
in detail and l think is asp uickly gone
over and allowed rs is any loan from
\ loaning company. With the system
adopted, and proper judgment exercised,
here will be no losses on first mortgage
OAns in Idaho