El Paso herald. (El Paso, Tex.) 1901-1931, 1918-01-25

HE first large transaction under ArzoHa's state land
loan law has lust been effected Governor Hunt and
other state officials having made investigation
personally loan Of $4,000 to farmers Of St Johns.
Apache county, has been arranged with 1900 acres held
ander mortgage to the state security for repayment
year OF so ago the Lyman dam in Apache county
washed time Of high water causing the irrigation
company the themselves heavy loss, both IN
the destruction of the dam and in the flooding OF lands and
osz property damage The farmers were left In serious
financial condition.
Aid began reaching them almost at Sympathetic
fellow citizens sent them money for their immediate needs
they enabled to get along for the time being Nov
the state with loan to finance the rebuilding OF the
irrigation system It viii cost Si5ooo Of which the Tiga
ton company puts $4,000 and the state the remainder
The money viii suffice provide better dam the
Little Colorado river than before and better diversion
system.
furnishing this loan the state of Arizona not merely
philanthropc It is business matter both parties
drstand The state amply protected by the security for
the land is worth the $40 which the
represents Even the irrigation system should
be destroyed by food and the farmers put back
rainfall basis the land would be worth than enough to
reimburse the state for its oan for the rainfall sufficient
for crops Supplementng the rainfall with irrigation,
the farmers raise splendid Crops including some Of the best
apples the Arizona and New Mexico markets. They can
relied upon in whatever contingency to pay the state
principal and interest the loan.
Nevertheless the benefit to the farmers by state aid
is quite apparent The state make loans which local
banks might be unable finance without difficulty and at
al lower rate Of interest than they could grant
Moreover the state could grant extensions needed more
literally than banks might feel justified in doing
Banks not often IN position, particularly small
local banks 20 for community financing This is the
states opportunity, and the loan about to be made to the
farmers Apache county the first big project of this
kind Arizona has undertaken Many thousands have been
loaned to farmers individually parts Of the state
principally in the Salt River valley but this the first
attempt at financing an entire locality.
ATizonas land loan system is somewhat parallel to the
federal farm loan bank involves less time negotiation
loans There requirement that associations of app
csnts formed and there is long delay In acting upon
applications Had the farmers of Apache county applied to
the federal bank for relief they would get it in
three years from now for the federal system has
waiting list Of applications far In Of its available
funds By borrowing from the state the farmers are en-
abled get immediate action and they will have their
irrigation system built and in operation before they could
have obtained the money from the government.
IN 1894, there a somewhat ike that of the
farmers Of Apache county There what known
the ST. Johns canal the Salt river Is miles southwest
Phoenix with dam, diversion headgate and system of
lsteras and group Of settlers obtained water from this
project their land That winter heavy flood which
destroyed the dam wrecked the headgate and washed out
and latera One Just like It had occurred the
winter before and the canal company unable to weather
second blow. could not raise the money to rebuild
the system and It gave up the project failure. The
settlers partly repaired and obtained little water for