LAND RECLAMATION POLICIES IX THE EXITED STATES 21 
tion and drainage works, as may be necessary, subdivides the land 
into farms, farm-laborer's allotments, and town lots, and sells the 
land on easy payments to actual settlers. The law authorizes the 
land settlement board, which administers the law, to prepare the 
land for cultivation, seed, plant, and fence the land and put up 
buildings or make any other improvements " to render the allotments 
habitable and productive in advance of or after settlement." The 
cost of improvements on any one allotment may not exceed $1,500. 
The law also authorizes loans for stock and equipment, the amount 
to be loaned to one individual not to exceed $3,000, including the 
amount spent on improvements. 
The prices of the land are to be fixed at a figure that will cover 
the cost of the land, the cost of its reclamation, the cost of land set 
aside for highways and other public purposes, the cost of subdivision 
and sale, and such amount as may be deemed necessary to meet un- 
forseen contingencies. In short, it is intended that the enterprises 
shall be entirely self-supporting and devoid of subsidy. 
Funds have been provided by direct appropriation by the State 
legislature, with provision that they shall be returned to the treasury 
with interest at 4 per cent per annum within a period of 50 years. 
Overhead expenses during the period of construction and settlement 
are included in the prices charged for the land, and after that time 
they are to be covered by the difference between the 5 per cent interest 
paid to the board by settlers, and the 4 per cent interest paid by the 
board to the State. 
Settlers are required to pay, at the time of purchase, 5 per cent of 
the price of the land and 40 per cent of the cost of the improvements 
that have been made or are made by the board for the settler. The 
balance of the price of land is to be paid in amortized payments run- 
ning not more than 40 years, the balance on improvements in not 
more than 20 years, and livestock and equipment loans in not more 
than 5 years. The rate of interest on deferred payments is 5 per cent. 
The purchaser is required to establish residence on the land within 
6 months from the time of purchase, and to remain on the land at 
least 8 months of each year. He may not sell without the consent of 
the board, and must agree to cultivate the land in a manner approved 
by the board. The law gives the board authority to reject any ap- 
plicants for allotments for any reasons that it may choose. 
The California land settlement law was enacted in the belief that 
the cause of the financial failure of reclamation enterprises was delay 
in settlement and use of land, and that the causes of failure of set- 
tlers on reclaimed land were lack of capital and the use of short- 
term credit, which swamped them before they could get their land 
into use. The scheme was designed to correct all these conditions, 
and also to keep off the land those who, in the opinion of the board, 
were not likely to succeed because of lack of capital, lack of experi- 
ence, or lack of adaptability to farming. 
To 1923 two colonies had been established, one at Durham, in the 
Sacramento Valley, and one at Delhi, in the San Joaquin Valley. 
The Durham colony was established in 1917. The board purchased 
about 6,000 acres, prepared it for settlement, and put a part of it on 
the market in 1918. The report of the board, dated September 1, 
1922, shows that at that time all of the farms had been sold. There 
