THE IRRIGATION AGE. 



81 



which, for a quarter century, has in season and out of 

 season, consistently advocated the reclamation of the 

 arid lands of the West, it is a matter for sincere congrat- 

 ulation that the opportunity to secure an emphatic ex- 

 pression of endorsement of the work of the United States 

 Geological Survey in its water resources investigations, 

 and of its claim upon more substantial financial support 

 was not overlooked, and an added source of satisfaction 

 is the resolution calling for the means for speedy com- 

 pletion of the unfinished government reclamation 

 projects with its consequent relief to be afforded settlers 

 upon these projects now enduring hardships for lack of 

 long-delayed water for irrigation. 



Coming as it does simultaneously with the public 

 announcement of the position taken by Secretary of the 

 Interior Ballinger upon this vital question, it is to be 

 hoped that the national legislators will take heed and 

 respond to the "call of the West." 



The need for further legislation authorizing co- 

 operation between the State and Federal Governments in 

 the construction of drainage works and the prevention 

 t,f floods and forest fires is pointed out, while the estab- 

 lishment of agricultural high schools in each congres- 

 sional district would be an unmixed blessing. 



It is to be hoped that the call for a conference com- 

 i/jittee, as authorized by Mr. Walsh, will meet with the 

 same prompt and hearty response that was accorded the 

 eall to the larger gathering. It may be well, as sug- 

 gested, to strike while the iron is hot, and convoke this 

 committee in January or February, 1910. Whether the 

 idea of a "Central Board of Publicity" inviting, as it 

 Joes, states control and co-operation, or the plan of a 

 "centralized bureau of colonization" under Federal con- 

 trol will prevail, with the better chance of ultimate 

 success, within a measurable period of time, remains 

 to be seen. 



The 



Bond 



Market. 



It is interesting to note the following 

 comment on bonds in general and irriga- 

 tion bonds in particular, from the monthly 

 letter of Farson Sons & Company, New 

 York and Chicago : 

 "A preponderance of evidence indicates that 

 throughout the entire country there is a feeling of se- 

 curity and satisfaction over the business situation sel- 

 dom, if ever, equaled. Manufacturing seems fully re- 

 vived, and excellent crops with high prices tend toward 

 a prolonged period of prosperity. The truest reflection 

 of those conditions is the fact that November and De- 

 cember show the greatest business ever handled by the 

 leading trunk line railroads in the United States. 



"All this has its bearing on the bond market. 

 Banks, trust companies, insurance companies, fraternal 

 organizations and all classes of bond investors are influ- 

 enced by this feeling of confidence the market for the 

 better class of higher income bonds being excellent. 

 Those investors who formerly were slow to investigate 



irrigation, drainage and timber bonds netting from 5 

 to 6 per cent are now not only looking into these secu- 

 rities, but actually are absorbing almost more than the 

 conservative bond houses can procure. It is well dem- 

 onstrated that the security back of high-grade irrigation, 

 drainage and timber bonds is ample for the most con- 

 servative investors. It is also demonstrated that owners 

 of such properties, as well as municipalities, can well 

 afford to pay 6 per cent for money. 



"Prosperity brings with it high prices. These prices 

 influence not only the luxuries, but the necessities of 

 life. It is a fact that the price of living has increased 

 over 100 per cent during the last ten years. This con- 

 dition reflects itself in the bond market by a strong 

 tendency of a large portion of bondholders to convert 

 their lower income bonds into securities that will bring 

 a more remunerative return and at the same time give 

 absolute security of principal. 



"The market for low income bonds, however, is not 

 dead, and during the last few weeks has shown much 

 life. As there are different personalities, so there are 

 different ideas as to what a bond should represent. Cer- 

 tain institutions also are limited by old laws to this 

 class of securities. Good bonds paying all the way 

 from 3!/2 to 4 per cent are always in demand. The low 

 prices of these bonds at the present time make them es- 

 pecially attractive, and we predict that those persons 

 desiring securities of this class will not find a better 

 market to purchase them in than that we are now expe- 

 riencing." 



To the thousands of innocent settlers who 

 Congress were led to file on land under government 

 To Study irrigation projects in the expectation that 

 Irrigation water would be supplied to the parched 

 Question. acres within a reasonable time, but who 

 have been subjected to a series of disap- 

 pointments and are even now seemingly far distant from 

 that joyful day, the present session of congress is filled 

 with grave import. 



Aside from the unanimous demand of western repre- 

 'sentatives at Washington, President Taft has promised 

 his support to an act to authorize the issuance of gov- 

 ernment bonds for the completion of the federal reclama- 

 tion projects. Whether or not these forces can outweigh 

 the opposition and secure the desired legislation, is a 

 question that cannot be determined until the general 

 policy of the session may be more fully outlined. 



It is claimed that certain interests in the east arc 

 working for a do-nothing session and will therefore 

 attempt to throttle all aggressive action toward discussion 

 and disposition of new projects. If this policy prevails, 

 it is fair to conclude that the west must endure till 

 slower progress on its government reclamation work. 



Comment on the proposed bond issue as given in 

 the eastern press leads to the belief that the real nature 

 of this loan is either grossly misunderstood or is inten- 

 tionally distorted for political purposes. 



