is actually
the case that I suggest the policy of reclamation by means of local
districts, financed on the basis of their own credit but with the
fullest measure of encouragement and moral support of the Government,
practically expressed through the Reclamation Service.

In this connection it seems worth while to recall that with a net
expenditure of $119,000,000 the Reclamation Service has created taxable
values of $500,000,000 in the States where it has operated. The ratio is
better than three to one, and that is a wider margin of security than is
usually demanded by the most conservative banking methods. There is no
reason to doubt that the overflow lands of the South, the cut-over areas
of the Northwest, and the abandoned farm districts of New England and
New York and other States would do quite as well as the deserts of the
West if handled by such an organization.

What is the legitimate function of the Government in connection with
reclamation districts to be financed entirely upon their own credits
without the aid of national appropriations? I should say that the
Government, with great advantage to the investor, the landowner, the
future settler, and the general public, might do these things:

1. Employ its trained, experienced engineers, attorneys, and economists
in making a thorough investigation of all the factors involved in a
given situation, to be followed by a thorough official report upon the
district proposed to be formed.

2. Offer the district securities for public subscription in the open
market. This, of course, would follow the actual organization of the
district and the approval of its proceedings by the Government's legal
experts.

3. Construct the works of reclamation with proceeds of district bond
sales, and administer the system until it becomes a "going concern,"
when it may be safely confided to its local officers.

The most obvious advantage of Government cooperation is the fact that it
would assure the service of a body of engineers, builders, and
administrators trained in the actual work of reclamation. This
advantage, as compared with the management that might be had in a
sparsely settled local district, would often make all the difference
between success and failure. Unquestionably it would materially reduce
the interest rate on district bonds and greatly facilitate their sale in
the open market.

There are other advantages less obvious but really more important.
Experience has