It is not without precedent in principle or in fact for the United States to improve its own property and for its advances take a mortgage upon the wealth it creates, and in one-half of 50 years we would regain our capital.

Inasmuch as the title to these oil and other lands would remain in the government and be excluded from State taxation, it would seem to be fair that a certain percentage of the royalties received should go to the States within which the revenues are raised. Twentyfive per cent might be a minimum, but a higher percentage would seem advisable if the whole might remain for a time in the government's hands to be used in such coöperative irrigation enterprises as the State might desire, and after such use has been made and the fund replenished, be fully released to the State.

COOPERATION OF THE FEDERAL GOVERN

MENT WITH THE STATES

This suggestion of coöperation with the State is not made idly. I look forward with confidence to a more intimate relationship between the States and the Federal government in undertaking this work of developing the West. The mass of the people are sympathetic with the purposes of the government. They regard with pride the great engineering works of this service, which stand as monuments to the interest of the nation in their welfare.

So cordial, indeed, is the spirit of the West toward this work that within a few months the State government of Oregon and the Federal government, through the Reclamation Service, have become partners in several projected irrigation plans, one involving no less than the pumping of water from the Columbia River by electric power generated by the river itself. A similar coöperative enterprise has been entered upon with the State of Washington.

The plan is that we shall do the work, supplying one-half the funds and the State one-half. This is a tendency which it is well to foster; for the State will well appreciate the effort of the nation when it makes like sacrifice itself. And nothing could more induce to the success

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of the nation's effort than to have some local check and interest. To place at a State's service a large sum gathered from the resources of the public lands within her borders would enable this character of mutual effort to expand.

This can be done if we will retain for national improvement a portion of the national resources. And this may be done, I believe, with the hearty good will of the people who are chiefly concerned— the people of the West.

One reason stands out demanding the promptest possible action in this matter. Reservoir sites are few and becoming fewer each succeeding year. Those that may be had are rising steadily in value. So valuable, indeed, have some sites become since the institution of the Reclamation Service that projected enterprises are not now regarded as feasible, for the dependent lands which it was intended. to irrigate can not make a return sufficient to pay the increased cost.

And let this not be forgotten, that stored water means more than fields of alfalfa, generous orchards, and the homes of hearty husbandmen; it means power for industries, light and heat for town and farm. These two-irrigation and hydro-electric power-are companions. One does not think of the one without suggesting the other. And the magic worked by each is rivaled by its mate. Electricity is coal and kerosene which need no railroad to transport them. The significance of these irrigation reservoirs from this point of view is but beginning to be appreciated and will grow greater as the country becomes more thickly populated and factories come to supplement the farms.

THE ENORMOUS VALUE OF POWER SITES

And this brings me to the consideration of the government's policy toward the use of the public lands for reservoir and dam sites. It is one of the most perplexing problems that engages the mind of the man who wishes to see the West thrive more abundantly. What is such land worth? Are we justified in measuring its value by the use to which it is put, or should we yield this strategic resource without compensation?