66 UNITED STATES - AGRICULTURAL ECONOMY IN GENERAL 



to be amortized and bear the same interest as payments for the land. It 

 is believed that on these terms existing financial institutions can give 

 whatever credit is necessary for buying stock, including dairy cows. 



The selection of colonists should be entrusted to a board, and the subse- 

 quent business management to a single competent superintendent reporting 

 to this board. The State agricultural college should systematically provide 

 information as to farming, and the superintend ent should advise as to bujdng 

 live stock and equipping farms. The State should, by contract, build 

 houses, level land for irrigation, and lend money to settlers, within a fixed 

 maximum limit, on insurable improvements carried out under the direc- 

 tion and to the satisfaction of the authorities in control. 



The prices of farms, after subdivision, should be so adjusted that they 

 pay for land lost on roads and canals, interest on the cost of the land be- 

 tween the time of subdivision and the time of settlement, and all other 

 incidental expenses. 



The selection of the land should be entrusted to an expert committee 

 who would buy it at its productive value. This policy would, if it were 

 understood, be a guarantee to settlers that they were getting their money's 

 worth. The land might be paid for with State bonds bearing interest at 

 the rate of perhaps 4 per cent., or it might be bought under a contract by 

 which the landowner gave deeds to the settler directly, the State guarantee- 

 ing his payments and having the right to complete the purchase and enter 

 into full ownership at any time deemed advisable. Existing State authori- 

 ties could plan the works for a water supply, subdivide the area and fix 

 the size of farms. The amount of capital to be provided for financing the 

 settlers could be greatly reduced by making full use of the possibilities of 

 loans under the Federal Farm Ivoan Act. 



