LAND RECLAMATION POLICIES IN THE UNITED STATES 17 
during the period of payment of interest by the State instead of 
the 6 per cent called for by the bonds. The advances made by the 
State to a district are to be repaid after the bonds of the district have, 
been paid, that is, after 20 years. 
The Oregon law does not give the State authority to supervise the 
^ expenditure of funds raised by the sale of certified bonds, but the 
State administrative officers have made such supervision a condition 
of their approval of the bonds. None of the State-aided districts 
has yet (1923) reached the stage where it must pay its own interest, 
and the test of the efficacy of the law has not yet come. 
Oregon districts, like those in California, contain large areas that 
are not now producing sufficiently to meet district taxes. In order 
to meet these taxes these lands must be brought into production, and 
that involves sale and settlement. As an additional safeguard for 
the State's investment the State officials charged with passing upon 
bond issues have made the listing of nonproducing land for sale at 
reasonable prices a condition of the approval of bond issues. The 
idea behind this policy is that the interests of the State demand the 
settlement of such land by persons who have at least a fair chance to 
succeed and become permanent farm owners; and that the sale of 
land at high prices foredooms the settlers to failure, and hinders 
rather than promotes the progress of the districts. 
Washington State does not certify bonds as legal investments for 
trust and public funds, but has created a special " reclamation " 
fund of $5,000,000 which is to be used in the purchase of district 
bonds. In theory this is a revolving fund, to be used in the purchase 
of bonds, that are to be resold by the State, but with no certification 
or guarantee by the State. This fund has been used to assist districts 
that have begun works and need additional funds to complete their 
works and get them into use. While the law does not provide di- 
rectly for this, the reclamation officials have required State super- 
vision of expenditures as a condition of their purchase of district 
bonds. The State has purchased several bond issues at 90, and has 
resold some of these bonds. In one instance it sold bonds at 95. 
The operations under this law have not been extensive enough to 
show its possibilities. 
The Idaho bond certification law was enacted in 1921. It is similar 
to the California law, but provides a larger margin of safety, in that 
the board certifies that the total bonded indebtedness of a district 
does not exceed 50 per cent of the reasonable value of the lands with 
the water. Proposed districts are investigated by State officials be- 
fore they are formally organized : they are investigated again before 
bonds are voted; and yet again before bonds are certified. As a rule, 
the engineers' reports are depended upon for the value of the land. 
In a few instances appraisers have been employed. 
In Idaho there has been little activity in the organization of dis- 
tricts for new construction since the passage of the certification law. 
Most of the bonds certified have been issued for the purpose of refund- 
ing former issues, or for taking over works built by other agencies. 
Some of the refunding has been at very low figures — 25 to 50 cents 
on the dollar — and the participation of the State in such refunding 
90478°— 24 3 
