Capital journal. (Salem, Or.) 1919-1980, 1921-08-13
Safeguarding the Bonus

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Successful administration of the Oregon Soldiers bonus
law toe working organization of which being per
fected by the World War Veterans State Aid commission
to depend primarily the personal efficiency Of the
boards and Officers who to administer it and their
qualifications for the trust reposed in them
Without the loan feature the administration of the law
would be comparatively simple routine embracing the loan
It's application is complex task aboundng opportunities
Tor abuses working deterent to the state the beneciaes
and the purpose for which it was enacted
Proper and equitable apprasemens Of the property
which the loans made the vital problem in the
administration Of the law 1t is here that the interests of
both the state and the eserce be abused and
endangered
Under the terms Of theaw service men can borrow up to
only threeourths of the appraised valuation of the
ery upon which the loan sto be made with limit of SO 900
on the amount to be loaned any applicant Low val
atons made by the appraisers will therefore, destroy the
value Of the loan feature Of the law to the in
tended to benefit by preventing many Of them from taking
advantage Of it, Appraisement of home with market
value at present Of $4,000 down to $1,000 he approximate
valuation which would be given by commercial loan COM
panies) would put the property beyond the reach of the
service with little money of his After in
vestng the 800 he would receive appraisement
he would still be $500 short the purchase price of the
property To the applicant to assume an indebtedness of
$1,000 in addition to his 81 800 obligation to the state would
be to bar nine applicants Of participation in the
loan Nor is it to be expected that many desirable properties
would be found in the market terms which would necess
tate the seller assuming mortgage for than
half Of the purchase price Of the property.
Over opomisc appraisements at the start the other
hand while permitting of the first applicants for loans
to buy properties at prevailing market prices practically out
right with the four percent 28ear money borrowed from
the state would before long have seriously detrimental
effect Apprasements Of $4,000 $4,000 properties would
damage the credit of the state and lower the market
value of future issues of the bonus bond which must be sold
when funds from the first block of 5O0O0O0 have been
hausted Prices small properties would rapidly avate to
false levels destroying the initial value Of the padded
pasemens the beneciare of the loan and force them
buy at boom prices not at ALL In the end the state
would be large loser the many properties bound to
require thru failure of the borrowers to quidate their
mortgages When the latter had transpred and the bubble
fcous values had burst the veterans would find their
money tied up in properties upon which they could not
ealize two-thirds of their investments
H.
Sane and equitable appraisemens based reasonable
market values win prevent abuses of the loan law and place
Is benefits within reach of every exserce man. Property
already indicating their willingness to assume Il
econd mortgages for reasonable amounts the strength
the substantial cash payments which the loan makes
ossib The of the venture from the standpoint of
intent Of the law is assured If the state commission in
pponng the appraisers three for each county will banish
otcs and other uteror considerations and the ap
raser on the strength of their unqueoned integrity and
nowledge of real estate values. al