32 BULLETIN 1177, U. S. DEPARTMENT OF AGRICULTURE. 
because no other purchaser can be found, and that if the district can 
sell the bonds elsewhere for more than 90 it has no need of State 
assistance. In other words, some incentive is given the district to 
seek purchasers in the open market. The director of conserva- 
tion and development construes the law to limit such purchases to 
development purposes, rather than to include improvements needed 
by already developed communities. Up to the present time the 
State has in no instance bought the entire bond issue of an irrigation 
district. The purpose has been to give limited aid where possible 
by buying partial issues at 90 and reselling them at the same or 
higher figures when the development thus made possible shall have 
enhanced the security for the bonds and made them more attractive 
to private investors. The difficulty with this plan, however, is that 
partial assistance does not always accomplish the purpose sought, 
particularly if the district is unable to dispose of additional bonds; 
and it is now felt by the administration that the State could be better 
served by taking a single project and seeing it through than by 
spreading smaller amounts of money over a number of projects. 
The Washington officials investigate a district very thoroughly 
before buying its bonds, inquiring particularly into the water-supply 
and engineering features, soils, and general feasibility. The market 
value of the land without water is not considered, however, owing to 
the fact that areas in need of reclamation in eastern Washington 
have often only a nominal value without irrigation. The prospective 
value of the land when put under irrigation is the criterion. The 
State of course reserves to itself the right to exercise close super- 
vision over the expenditure of funds turned over to the district for 
such bonds. 
Oregon. — In Oregon a different form of State assistance to irri- 
gation and drainage districts was put into effect in 1919. This 
involves the payment by the State of interest on district bonds for 
periods of not to exceed five years. The purpose is to give districts 
an opportunity to get on a paying basis before any demands for 
interest shall fall due. To this end it is provided that the money 
advanced by the State for payment of interest shall be repaid after 
the maturity of the last bond on which the State has paid interest. 
Funds are obtained by the State for such purpose by the sale of State 
bonds upon which the districts benefited are required to pay interest, 
so that the State, although lending its credit, is fully reimbursed for 
expenditures. The amount of indebtedness that the State may incur 
for this purpose is limited to 2 per cent of the assessed valuation 
of all property in Oregon. To August 1, 1921, the interest on 
$4,042,500 of bonds of four irrigation districts had been paid and 
State bonds in the amount of $390,300 had been issued to finance 
the payments. 
Administration of the Oregon method is in the hands of the com- 
mission designated to handle the certification of bonds, viz., the State 
engineer, the attorney general, and the superintendent of banks. 
The law does not require, as in the case of bonds considered for certi- 
fication, that the aggregate amount of all bonds shall not exceed 
50 per cent of the aggregate market value of lands, irrigation works, 
etc., for the aim of this policy is not to duplicate the purpose of bond 
certification, but rather to ^ive assistance to districts not yet able to 
stand on their own feet. Its purpose is development, rather than 
