A bill was introduced in Congress by Senator Myers (S. 4947, 65th Congress, 2d Session) in October, 1918, and backed by the Department of the Interior, which provided for a survey and classification by this department of all unentered public lands and all privately owned unused lands for the purpose of finding out what lands can be reclaimed and put to productive use by returning soldiers who would like to settle on land and engage in agriculture. After such an investigation the Secretary of the Interior was required to report to Congress and to propose a plan for the settlement and cultivation of such lands.
There were two bills (S. 5397 and H. 15672) introduced by Senator W. S. Kenyon of Iowa and Representative M. Clyde Kelly of Pennsylvania, respectively, which, among other features, made possible development of rural districts. Although differing in details, the bills both appropriated $100,000,000 to be expended in providing employment primarily for returning soldiers. This was to be done through the authorized public construction work, or through the organization and extension of useful public works, in the development of natural resources. Only in localities where the Secretary of Labor reports extraordinary unemployment to exist shall public works be carried on from this fund.
The House bill provided for the building of new post roads; for the transfer of war material no longer needed by the army, the same to be used for the construction, improvement, and maintenance of the post roads; for supplementing the public school equipment where public school buildings are or shall be designated as postal stations, for the use of the construction service; and for other purposes. The bill provides for the establishment of motor transport and postal routes; for the organization of a system of marketing facilities for the collection and delivery, through the postal service and public school buildings, of farm products from producer to consumer; and for the construction of any authorized public work.
In addition to these more indirect ways of opening up the country the bill carried specific provision for promoting and conducting land-settlement colonies, as well as provision for logging or milling operations, contingent upon a continuous yield of timber, so that the forest communities would be permanent. The provisions of the bill were to be carried out by an interdepartmental National Board of Public Construction, which would organize a body of workers, known as the United States Construction Service.
Since the bill carried the reclamation and technical land-improvement work, the only question might be, is there any need for this to be carried on by a special Construction Service? Would it not be a duplication of the work of the already existing Reclamation Service of the Department of the Interior? Would it not be economical and otherwise proper to increase the staff and other working forces of the Reclamation Service to the extent of the proposed reclamation duties of the Construction Service?
Representative E. T. Taylor of Colorado introduced in the House, February 15, 1919, a bill (H. R. 15993) providing for employment and the securing of rural homes for returned soldiers and for the promotion of the reclamation of land for cultivation under the direction of the Secretary of the Interior. Short-term loans to settlers were provided for. This bill contains a good land-development plan, except that the Reclamation Service, Department of the Interior, ought not to be burdened with colonization work and with loans to settlers. Colonization work ought to be the duty of a separate body, and the extension of credit to settlers naturally belongs to the Farm Loan Board, Department of the Treasury.
Representative Mondell of Wyoming introduced in the House, May 19, 1919, a bill (H. R. 487) providing employment and rural homes for returned soldiers through the reclamation of lands under the direction of the Secretary of the Interior, who may, for this purpose, acquire by gift, purchase, deed in trust, or otherwise, the necessary lands for soldier settlement projects and, for the same purpose, may withdraw, utilize, and dispose of by contract and deed suitable public lands. An appropriation of $500,000 is proposed.
The plan in this bill for the acquisition and reclamation of unused land is a strong one. Equally commendable is the provision for safeguarding the settlers' holdings against speculation, for the selling, leasing, or mortgaging of the land by settlers requires the approval of the Secretary of the Interior. The bill requires that the Interior Department, through its Reclamation Service, acquire and improve lands, colonize them, and make loans to settlers. It would seem a more efficient plan to make a division of these various duties. The Reclamation Service should acquire and improve lands for settlement, while the colonization work and the extension of loans to settlers would be made the duties of other public authorities, as pointed out below.
House Bill No. 3274, introduced by Representative Knutson, May 27, 1919, proposes to create, in the Treasury Department, a National Colonization Board with local colonization commissions, for the purpose of providing capital for the development by land colonization of the agricultural resources of the nation, affording certain privileges to soldier settlers. The commissions approve and charter private colonization companies and recommend applications for loans after seeing all the provisions of the act have been complied with. The commissions are to include the directors of the district land bank.
The main aim of the bill is to standardize private land colonization companies to a certain degree, to facilitate the extension of credit to them, and to make loans to soldier settlers. The Knutson bill in meeting these needs is a comprehensive one. It deserves the closest attention of Congress. Would it not be advisable, however, to attach the administrative machinery for credit extension outlined in the bill to a division to be created in the Farm Loan Board, with separate colonization credit funds, and to leave the regulation and licensing of the private colonization companies to a separate body as outlined below?