being the State's security for the loan. This is already being
done in some form in many European countries. The details of a plan such as suggested would require careful working out to insure safety for the State in its investment. We feel certain, however, that this is perfectly possible and we believe further that in the absence of State assistance our cut over lands will either be settled very slowly or else the clearing of them will be undertaken by large companies who in turn will derive their profit by a high charge to the home seeker.
The essentials in a plan of State aid can be summed up as follows;
- Careful inspection by a competent State officer of any land to be cleared with State funds, and should tract prove of inferior agricultural value money should not be advanced. In other words the State should look on the matter as would any private party contemplating the makmg of a loan.
- Conservative regulations governing the sum to be advanced, based either on acreage controlled or total value of property.
- A system of inspection of work performed to guarantee funds advanced being used on property for purpose of clearing only.
- Equitable stipulations as to payment of both interest and capital, and strict enforcement of such stipulations.
- Careful check by the State on management of land and improvements in addition to those made with State funds, such improvements to be required as an evidence of good faith.
- Provision for the State's taking over property without incurring expense upon failure of owner to fulfill every part of agreement and provision for re-disposal of property.
It is assumed that the applicant for State aid will in each case own the property in question outright, that he will not possess over 160 acres of land or have in his name property other that the land which would put him in a position to secure aid from sources other than the State. The aim should be to help the truly deserving home seeker in substantially the same way he would be helped by the Reclamation Service. It is felt that the end fully justifies the means.
Legislation of this nature is not recommended to the 1913 Legislature. It is not felt that the matter has been sufficiently thought out to justify action at present. It is, however, suggested that the problem be considered for future action.
