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

which nave TO issue bonds of small de
nominations and for which there is no,
good market. The State loans tn.
money to encourage the building up Of
schools, which is one Of the funda
mental principles Of the State.
Has Two-Fold Purpose.
| Loans the usually made for a term
OF five years, but they can be paid at
any time man has the money and in.
clination to take them up, The only
preference the State makes in the mat
ter OF loans is in favor Of the small
borrower who wants from 800 to 81. OOO
Tor the express purpose of improving
his farm. No loans are made to non.
residents Of the State, nor to speculat
ors, nor will the State deal with any
one indirectly. SO no middleman need
apply. The State deals directly with
the applicant for the money. The
smaller the loan the greater the pref
erence, and very few loans are made
to anyone but the bona fide settler. An
owner of farm land who lives in town
and lets someone else run his place has
very little chance for q loan.
The loaning Of this money has two.
fold purpose; to get the interest for
the irreducible school fund and to en-.
courage actual home builders.
/ The State loans only upon first mort
cages and good title.
Full information, blank applications
and rules governing the loaning of State
money will be furnished free by applica
| ton to the registrar Of the State land
board, Boise, Idaho.
| IL takes from week to month a
time to get loan approved and pass
through the various channels and the
state endeavOrs to hurry matters when
1t is ease where one has to have the
money quicker.
NO loans are made to any one per-
son for over $4,000 and no land is ap-
praised, no matter where located. for
more than 5000 per acre, and the State
loans only one-third of the value of the
land, not counting the improvements
thereon.
Sometimes the State loans a little
more than one-third of the appraised
value, depending upon the security and
the object of the loan. The State does
not ask for any insurance to be carried
on any Of the buildings.
In care of Carey act project or irri.
cation district, the water certificate Of
stock must be attached to the loan and
assigned to the State.
Speculative Loans.
The State does not loan money! on
timber lands OH account of the fire haz.
ard.
A party applying for State loan
has to take one thing into consideration
and decide for himself: Would any
weli-managed business that loaned
money loan on the security he presents
to the State3 With that end in view
he can about tell what the Judgment of
the State land board will be. There
have been some loans made in the past
the value of which was based on the in
fiated values of land at the time of the
loans. However, l can say that loans
made to the bona fide settler even at
inflated values of five or six years ago
have worked themselves out satisfac-
torily even under those conditions.
The only loans that are risks are
speculative loans and not those to the
home builders, and these loans are now
being treated by the land board the
same as any private loaning institution
would treat them. We have been com
PEELED to foreclose on those who have
paid no taxes, interest or water rents.
as 1t is necessary to do so to protect
the interests of the State. Speculative
loans of course are usually made by
man in good faith in the hope that
land values would rise and that he
would realize upon his investment. A
great many of those speculative trans.
actions are also working out by the
borrower paying a part of the interest
and gradually wiping it all out and
eventually the principal.
We have collected quite little on
these loans and the money is coming in
right along and the burden is becoming
lighter on each loan. If man shows
the proper willingness to cooperate
with the State i'll wiping out his indebt-
edness, he will be given every chance
and cooperation that he might need.
Foreclosure proceedings are only had
as last resort to save the State from
loss.
Will Bear Close Investigation.
The l per cent charged at the time
the loan is applied for will in three
years, properly husbanded, take care
OF all the losses that may occur and |
with the accumulation of this l per |
cent fund after this year, there will be |
enough reserve to cover all the losses
that ever can occur if properly man.
aged and looked after.
All the trouble that has arisen has
been caused by loans made at the time
OF inflated land prices in close proximi.
ty to large towns by men who did not
have the interest of the cultivation Of
the soil at heart as much as they did
to make turn ON the land. However.
the new rule of not loaning more than
to any one person, no matter
what the security is, obviates largely
this particular feature.
The lOaning department of the State
will bear the closest investigation at
any time. 1t is run on the strictest
business principles, and only one other
hing is necessary to make it great
success; that is to loan money on the
amortization plan not to exceed 5 per