Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-01-27
a% M@.1~~
mosNAr on MONEY AND CREDIT;

considerable discussion Of late In the
newspapers OF Iowa regarding changing
or modifying the tax on monies and
credits in this state, and making our
Anticipated tax system better meet
modern conditions. It seems that some
changes are very advisahle IN lowa's
tax system, and many good points have
been made in the discussion that has
been In progress. But there IL another
line Of reasons why the present state
legislature now in session should make q
change in Iowa's taxation laws This
reason have not seen stated As yet.
1t affects Iowa farm values. ana Is
therefore Of the utmost importance.
During the last thirty yeafs this law
office has placed several hundred thou.
san dollars in farm loans in this v1cin-
ity on good Iowa farn14. and never the
loss Of a dollar in interest or prin-
cipal or a foreclosure. During all this
time these farms have beeen increasing
In value. and have never decreased in
value They have been improved by bet
ter buildings. fences. bitches and thing,
and now sell as high az 317s per acre.
and in fact a small farm Of sixty acre
near Belle PLANE sold sometime ago
for $3.50 per acre, and the improve
ments are not above the average.
Nearly every farm sale means mort
gage in order to finance the sale. Some
times the seller takes q mortgaSe back
on the place, but since the tax on mort
cages has been enforced especially thru
the tax ferrets sellers have been less
willing to take part Of the purchase
price IN a mortgage back on the farm
sold. Thus the money has 70 DO found
elsewhere. The average tar on farm
mortgages in Iowa is as far as I can
learn probably nearly 2 per cent on the
actual amount Thus mortgage bear
ing per cent interest-and few years
ago plenty Of money could be had on
Iowa farm mortgages at per cent,
and can be had in the large cities now
on good collateral-wouiA net the in
vestor after paying his tax on 1t, only
about 3 per cent The result IL that
the investor seeks more profitable
places to put his money.
What is true of the seller OF farm
in iowa not wanting to take mort
gage back on 1t. is true alike OF all
local investors for the same reason.
that the income IL not sufficient. and
lower than can be secured with SAFETY
elsewhere.
The result is that to finance sales OF
iowa farms, we have become almost
wholly dependent upon outside money.
especially funds supplied by the large
life insurance companies. Now fof
some reason, the big insurance COM
panies have suddenly decided not to
make any more loans on Iowa farms
at present. Their reasons for this ac-
ton are probab bly, because their policy
holders are drawing on them for policy
loans, and also because Of . genera
unrest thru the effort Of investors to
secure q higher interest rate. The bor-
rowing Of money on life insurance Dol.
icies is really almost another way OF
stating the same fact. This Il In real
ity "robbing the TILL" and endangerin3
the provision made for widows and
orphans. which is the primary object OF
the best life insurance, that . man may
carry, but when men can get money IN
that way at Q little lower than the Gen-
any odds of anyone or the local bank.
they will borrow on their policies and
many are doing so now.
There IL plenty OF money In the
country. New York City 70 puttinG
out q big bond issue Of as0.oeo.oee 81
az Der cent interest, when bankers
said that the rate must be ~ PSF cent
and there are other Indications that
could be mentioned. There 10 plenty
Of money right here in Iowa 70 hnance
farm sales. IN Iowa, but this money Il
driven elsewhere where It can earn q
better income.
Ths result 10 that while Iowa Aafusl
are iDereasinG IN value. ~ 0o& -
SutssAo 0Ausv. mainly hon ~ n.
ouraaee eempaniss. and wAen ~ -
eide 70 mA1co NO more leans Ter an
reason, tbs sale Of thousands q aceel
I = Knocked IN the head. bAean0o Il Y
| impossible 70 AnAnea such ealeo.
Whon sales can not b 0nAneo1, 1anl
tronsfers will be difficult and viii 0tAut
san, .snd when anything cAn 49, y