Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-01-26
THE DILEMMA OF TIE FARMERS


evident that in regard to some of these
difficulties speedy legislative relief is
urgently demanded. The farmer who has
borrowed money on his crop, giving his
note for it, is to-day in most embarrass-
ing position. In the first place the notes
which are drawn for this purpose are what
is called lronclad." They give to the
holders OF them power to sell the wheat at
few hours notice, or even without notice,
if the state Of the market becomes such as
to threaten to invade the margins. As of
course the holders of the notes must be the
judges of the arrival of such contingency,
the maker of the note is wholly at their
mercy, and either such bear movement
as has been DEVELOPED recently, or the ap-
| proach of the annual assessment for taxes,
may constitute the justification for forced
sales. The mere danger of such an event
market still further, for it is obvious that
buyers viii not seek to hold up prices at
time when the exigencies of the producer
compel him to take almost anything
that may be offered. The menace of the
double taxation which now impends
over the farmers, who are also
borrowers, is however scarcely capable of
being exaggerated. It involves, on the
surplus crop still unsold, an additional
impost amounting to from 100000 to
| Sc, 900, 900, and it threatens to make all
the difference between profit and loss in
very large number of cases. That is to
say, that between the new Constitution
and the wheat-buyers' ring, the farmers
are threatened with the practical destruc-
ton of their livelihood, and if there were
no means available for remedying this
situation it might become a question of
instant concern whether wheat should
hereafter be raised in anything like the
| quantities of the past. Nor are the
difficulties referred to the only ones which
face the producer at this juncture. The
question of municipal taxation promises to
be the last straw that breaks the camel's
back, If the wheat now in warehouse at
Stockton, Vallejo, Sacramento and else
where, is to be subject to municipal as well
as State and county taxation, the result
of the wheat but to the cities and towns in
which warehousing has been an important
and profitable business.
In Stockton, for example, there are at
present l25,00 tons of wheat in ware
house. In Vallejo there are from 10000
to $4,000; and in Sacramento there are
some 5000 tons, though no regular ware
housing interest exists here Now, if all
this wheat is subjected to municipal taxa
ton, in towns where the rate of local tax
alton ranges from 2 to per cent, it is per.
fectly apparent that the effect will be to
kill the warehousing business in these
places, whatever else it does. The farmers
cannot pay these rates, and therefore they
will have to get their wheat stored outside
OF municipal limits. Such change would
| be most disastrous blow to the prosperity
of Stockton, and would seriously iniure
Vallejo and other places. The warehous-
ing business once removed would in all
probability not return to its old channels,
EVENT. wheat was exempted from local taxa
ton, and great deal of capital now in
vested in that business would be virtually
destroyed. Of course the effect upon the
farming interest would be calamitous in
the extreme. This cumulative system of
taxation would ultimately impose tax
upon their produce equal to eight per
cent, which is one per cent. more than
the present value of money upon first
class collateral securities. It does not
require any argument to show that the
producers cannot stand such an access of
taxation, and that if they are exposed to
it without remedy, they must abandon the
business Of wheat-growing. And it is
equally clear that the new Constitution is
responsible for the evils which are crowd
ing upon them, and that the vicious and
inequitable principle of regarding solvent
debts as property has put in the hands of the
wheat-buyers' ring the weapon with which
the farmers are being beaten down. The
banks cannot change their policy. They
are thu. atened by falling market on one
hand, and by the Assessor on the other
They must compel their customers to pay
the tax upon their notes, and they must
protect their loans. No help or remission
can therefore be looked for in that quarter,
and unless the question of transportation
deficiency can be solved in one of the ways
suggested by US yesterday, the prospect
will be dark one. Il is, however, appa-
rently possible to avoid the intolerable
extra burden of municipal taxation on
wheat in warehouses, and this should be
urged alike by the farmers and by the
inhabitants OF the towns which depend
largely upon the warehousing business
As to double taxation, that is unfortu.
nately in the Constitution, and it is SO
fixed there that it is to be feared the Su-
preme Court would find it impossible to
construe it away, no matter how good it's
intentions il that direction might be-