Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-01-27


OF time boSofe an unstable article
will drop In price. no matter what it,
real. intrinsac value may be. There
10 no one who has q higher opinion
as to the real value OF Iowa land than
have. and this 10 based upon what
this land when handler according TO
the most modern methods will pro-
duce. I know Of yields on Iowa gardens
running into the hundreds Of dollars
for single acre In q season. and Of
Iowa orchards that have netted over
$1,000 per acre per crop. but II this
land can not be sold. its value 10 sure
to decrease.
Unless the present state Legislature
grants some relief. Iowa farmers will
be sure to see drop in the value Of
their farm for the reasons above given.
and then there will be something doing
in a political way by these same Iowa
farmers that will be noticed by the
state legislature. 1t may take some
time. but the farmers of Iowa will do
good Job when they get at it, should
anything OF that sort become neces-
sary. An Iowa farmer will stand a
great deal patiently, but when his land
is unstable or drops In value he will
get busy and get at the cause.
Minnesota has q mortgage tax sys-
tenn that seems to work well and 1t
consists OF q small tax on the mort
gage. 81 1t Is said. and this is IN place
OF any other and all other taxes. 1t is
to be paid by the holder OF the mort
sage. the same as the fee for record
ing the mortgage. Some such plan in
Iowa would make 1t easy to get plenty
OF money to finance the sales of Iowa
farms. as on that basis, there are mill
lions OF dollars OF Iowa money that
would be invested in farm loans. and
owners Of farms would be willing to
take mortgages back for part of the
purchase price.
AS to owners taking a mortgage
back as part of the purchase price, the
farm Is taxed at an amount less than
its actual value. and the mortgage at
its full value. For example I know OF
a $50 acre farm not far from Belle
Plaine. Iowa. and this is a fair ex-
ample. that is taxed at about SIS per
year. The tax on mortgage covering
the total value OF this farm would be
over $500. Thus If farms are taxed too
low. mortgages on them are taxed too
high. and as both are taxed under our
taxation laws. there is a double taxa
ton
There is no suggestion that any
financial trouble is expected in this
country. or that money is going to be
tight or that there IL any chance of
panic. or anything Of that sort. In fact
business conditions in general in the
United States are improving steadily.
IN the face OF this fact, it is very diff
hcuF TO secure money on first mort
gage loans on Iowa farms. for Y to u
the actual value of these farms. Like
all others in the farm loan business
l have number OF applications for
money on farm loans for which I can
NOT spare the cash. First Of March
IS settlement day on these farm trans
feEs and there are going to be a large
number Of disappointed men who are
trying to borrow money with which to
buy Iowa farms
Inc claim was made some time ago
that Iowa farmers we've snecuIotjnr ~
western and southwestern and north.
efn cheap. Wild lands. and mortRaR;ng
ther iowa farms for the funds for
sucn speculation. II that was true a
.e" years ago 1t 10 not true now. and
IN Placing these farm loans It is nee
essary TO and out for what the money
10 70 be used. and in no case IL II to be
used for anything else than the mr.
chase nrfoa OF the land or some i'm
pfovements on the land. in any case
.hat mas come to my attention or
The present legislature has this tax.
ataon matter before It as the most i'm
portant work 1t has 20 do The last
ies1slature was too busy passing rattle
snake bounty laws. etc, to have time
70 even appoint q commission to look
INTO the tax situation In Iowa, to re-
port to the present legislature. It ia
greatly to be hoped that the present
law makers will pass a law Changing
this bad condition. Otherwise Iowa
viii experience decrease In the value
OF farm lands, which might be even
worse than decrease in population.
Very truly.
H. r. MOSNAT,
Belle PLANE, Iowa.