Payette enterprise. (Payette, Canyon Co., Idaho) 1909-1935, 1916-03-30
CAPITALIZATION Of RESOURCES
WOULD ELIMINATE TAXES
SENATOR D. W. DAVIS PRESENTS HIS PLAN FOR MAXIM
STATE SELF-SUPPORT|NG- SIMPLE, ECONOM|-
CAL AND PROFITABLE.

EQUITABLE.
this $12,5OS,5OO would become $23,
OH, 900; in "a years $50, 900, Just
where we would have started If We
had sold all the 100000 acres OF
land at $16.14 per acre. This demon
strates that even though we may moi
be able to realize more than a fourth
as much as the best informed men
believe we should be able to realize
it will not delay the arrival at tax
less goal for longer period than "a
years.
CARRYING 1T OUT.
But let us continue on with this
$50, 034, 900 fund, assuming that it
has taken "a years to accumulate it.
In SO years it becomes 500, 06S, 900;
in AZ years $500, 10000; in 60 years
At 6 per cent interest this $800,544,-
900 would earn $4S,032, $40 annually,
which is many times more than OPP
ponents of this plan can offer at any
time in the future from the earnings
of all our resources by handling them
under any other plan that has been
proposed.
MAGICAL FIGURES.
This is impossible, these are mag
zeal figures, some may say. Well, di-
vide this amount by two, and then
divide it by two again. That is be-
ginning with one-fourth the most con-
sentative value that can be placed
on these holdings, and ending with
only one-fourth of the fund that
would accrue therefrom at per
cent compound interest, and still we
have eight times the capital, with
eight times the earnings, that we
would have if all the lands were sold
under the present system for the
same price of S16.14 per acre.
Now l do not maintain that We
would reach this enormous total in
the time stated from this small part
of our capital alone, because we
would use part of this. revenue to
help reduce our tax burdens and also
reduce the interest rate to borrow
ers from this land. l am merely. try
ing to give you an idea of how inter-
est on interest piles up. The sub
ject is too big to handle in one ad-
dress. have delivered a number of
in order to present the
matter fully and these will be circu-
lated in due time.
PRESENT SYSTEM WEAK.
IF We follow the present system
we will never have a capital Of more
han fifty to one hundred million dol
ars. with maximum earning capa-
city of not more than six million
lollars. By adopting the policy I
have suggested. we can build up
fund large enough within a reason
able time to make Idaho taxless for
ever.
II advise the using of part of
the earnings of this fund to help
Jay the current expenses of govern
nent, but never to use all the reve-
lues, but allow them to accumulate
md increase. By wisely conserving
his fund the first few years we
IAN make material reductions in our
ak burdens and yet keep the CAPT.
al increasing so that taxes will con-
tinue to grow less until they en-
tirely disappear.
INDIRECT BENEFITS.
There are indirect benefits as well
Is direct benefits that will follow the !,
adoption of this plan. The adding Of !
100000 acres of land to the tax
oils, with the improvements and per-
'onal property that will follow as
natter of their development, will of
tself decrease taxes by providing
more property and more people to
'odI lhcI <1uOtu0I Hull 6CL U6uClit
will be the saving in interest charges
o the people of the state of from
to 8 per cent per annum, which Of
tseif is equivalent to very mater
Al reduction In the taxes of every
orrower. We could begin to supply
ur own people money at per cent
ropping to s, and then to per cent.
his money should be loaned on real
state security only, taking care of
he farm loans first, and then We
ould buy school, county, and state
onds. When the local demand for
loney ceases, if it ever does, we can
NY the bonds Of other states that
ave not had the foresight to put a
milar plan In operation.
PLAN NOT NEW.
This plan is not new. 1t is only