54 



THE IRRIGATION AGE. 



in the nature of experiment, and the knowledge thus 

 gained can be applied. 



"With a view of lending national credit to the 

 financing of future projects for application of this 

 knowledge Senator Jones, of Washington, intro- 

 duced his bill. It provides in substance that the 

 Secretary of the Interior, on behalf of the Govern- 

 ment, may guarantee bonds issued by an irrigation 

 district for a Reclamation Project which he ap- 

 proves after examination by Government engineers. 

 The bonds are to run for not more than forty years 

 nor to bear more than 4 per cent interest. In case 

 of default by the district the Government may fore- 

 close. The district being a co-operative body of 

 land owners, there is no room for speculation, as in 

 the case of a company operating for profit, and there 

 is every inducement to economy. The Government 

 is protected against liability for projects which are 

 not feasible, for on finding that to be the case it 

 can refuse to guarantee bonds on them. The dis- 

 trict has no inducement to promote an unworthy 

 project, for debt and foreclosure would result. 



"If Congress cannot be induced to pass the 

 Jones bill, each Western state can safely and wisely 

 guarantee district irrigation bonds, if proper limita- 

 tions on total expenditures are established. They 

 are more vitally interested than is the Government, 

 for lack of irrigation cramps their development in 

 far greater proportion than that of the nation as a 

 whole. If it be desired to increase the security, the 

 states can add their guaranty to that of the nation. 

 Whether state or nation, or both, stand behind the 

 bonds, construction and operation should be in the 

 hands of the district, of course, under the eye of 

 the guarantor, who would desire assurance that the 

 work was done according to the design approved. 

 We should then have a combination of local initi- 

 ative, local construction, and local primary liability, 

 with state or national credit and general super- 

 vision. That combination should effect economy 

 and expedition in doing the work." 



The Oregon Irrigation Congress also acted in 

 the matter. A constitutional amendment was fa- 

 vored by a resolution submitted to the Congress by 

 the resolution committee, which would provide a 

 state guarantee for principal and interest of irriga- 

 tion and drainage bonds, as well as for a state sys- 

 tem of rural credits. 



A committee was named for the purpose of 

 calling a conference of what is to be known as the 

 State Irrigation Drainage and Rural Credits Con- 

 ference, and this latter body is to make all arrange- 

 ments to conduct a campaign in behalf of the pro- 

 posed amendment. 



The Portland Oregonian, commenting on this 

 action of the Congress : 



"If Congress should not act, we shall then be 

 ready for business ; if Congress should act in a man- 

 ner to supply the need, the state can step aside and 

 no harm will have been done. If Congress should 

 adopt an unsatisfactory plan, we can go ahead 

 under state law. There are undoubted advantages 

 in national action uniform bonds and methods in 

 all the states, a broader market, lower interest 

 but Congress may attach unworkable conditions. 



"The working out of the plan can be provided 

 with safeguards which will reduce the state's risk 



to a minimum. No guaranty would be given to the 

 bonds of any district until all the plans for improve- 

 ment of a district or purchase of land had been ap- 

 proved by a state board, its engineers and ap- 

 praisers. A system of amortizing debt extending 

 over a long term would steadily reduce the prin- 

 cipal while the security was growing in value and 

 while the debtor's equity was increasing. 



"The bond-guaranty would be paternalistic, 

 but all governments have become paternal. It 

 would be in line with the laws by which Germany, 

 Austria, Italy, Britain and even Russia have used 

 government funds or government credit to assist 

 tenants to buy farms. It would not promote so- 

 cialism; on the contrary, it would be a protection 

 against socialism. There is no stronger bulwark 

 against socialism than a large body of farmers, each 

 owning the small tract of land which he cultivates. 

 Socialism finds its recruits among the rent-paying 

 workmen of the cities. Owning no home, having 

 no fixed residence and no permanent job, they are in 

 constant doubt where they will work and live, and 

 they lend a ready ear to the doctrines of unrest." 



In this connection the following from the 

 Stockton, Calif., Record is interesting: 



"The irrigation bond market is looking up. 

 E. K. Knight & Co. of Los Angeles, who bought 

 the recent $400,000 bond issue of the Oakdale irri- 

 gation district, are now ahead of their contract, call- 

 ing for delivery of more bonds than had been speci- 

 fied. They have already sold $187,000 worth of the 

 bonds, which are now bringing 96 and a fraction. 

 The South San Joaquin district has an issue of ap- 

 proximately $575,000 yet on hand, which are now 

 being sold. These are five per cent bonds, which 

 were left in the treasury to be used for the con- 

 struction of reservoirs. The district has received 

 numerous inquiries for these bonds, and expects 

 to receive a number of good bids, as probably no 

 more irrigation bonds will be issued for some time 

 to come. 



SOUTH AMERICA AFTER IRRIGATION 

 MACHINERY 



A report from an American consular officer in 

 South America states that a representative of sev- 

 eral private interests is in the United States with 

 the object of purchasing drainage and irrigation ma- 

 chinery for large and small canal dredging, ma- 

 chinery for the transportation of earth, bridge con- 

 nections, etc. The representative also desires to 

 meet electrical construction engineers and manu- 

 facturers of water-power electric machinery. Quo- 

 tations on water-power and electric-transmission 

 equipment, as well as offers for the construction of 

 a large capacity water-power electric plant are re- 

 quested. Bank references are given. 



Send $1.50 for 1 year's subscription to the IRRIGA- 

 TION AGE and bound copy of THE PRIMER OF IRRIGA- 

 TION. If you desire a copy of The Primer of Hydrau- 

 lics add $2.00 to above price. 



