The Washington times., 1915-12-13
New York Organization Says
This Alone Will Help the
Small Farmer and Tenant.
FARM MORTGAGES USELESS
Letter to Senator Fletcher Cites
Waste of Billions in Ground
Rent System.

Senator Fletcher of Florida, CHAIR
man of the United States commission
on co-operative land mortgage banks
the Society to Lower Rents. and Re-
duce Taxes on Homes, with heal
quarters in New York. declares that
the proposed system of land. NOR
gage banks will be utterly useless
She average tenant farmer OF the
! country and the man VINO wants 70
; own a farm. unless the present tax
system be changed.
The communication, which is sign
1 ed by Frederic c. Leubuscher, az
president, and Benjamin {. Marsh, eK-
ccutive secretary of the society, ls eN-
lpected to attract notice In connection |
with the efforts to get rural credits
/ legislation this winter.
Would Tax Land Values.
II Is a plea for transferring taxes
from labor to land values. as the only |
means of really helping tenants AMI
small farm owners. 1t is pointed out
that values of farm lands are swell |
+ ing rapidly, at an enormous rate. and
that reducing interest rates on land
mortgages. under present tax meth
, ods. will increase the selling price ot |
land and not help the tenant and small |
! farmer or man who is trying to get
farm.
The letter follows:
Dear Mr.. Senator: The commend !
bile effort Of the president and oi you"
commission to better the financial and
economic status of the farmers deserves
feartiest support
'Ts il conceivable. however. that
farmers themselves will secure any
real benefit from pyramiding specula-
tive land prices and their debt burdens
which would be the inevitable result
~ reducing interest rates to farmers,
under our present system of taxation?
THE United States census gives the
following facts for 1910: The value Of
farm lands was SIS. S.4!5 81, 1853, an In
crease in the decade of sl5il7 ,666. ia or
1lS1 per cent: the value of farm build
ings was 81. .325 .45l .52s. an increase in the
decade of 81, 76s.s12 ,O32 or rs per. cent;
the value Of implements and machinery
decade of Sis. SASS. or ss7 per cent
the value of live stock was &925, l13,6lO.
an increase In the decade Of $1.S49 695 ,9O7,
or 60.l per cent.
Billion Dead Waste.
The net ground rent at per cent on
the increase in land values during the
decade was, in 1910, s77OSs3. .30S. while in
terest at 6 per cent on the increase
would amount 10 1926 059,970. total of
81, ,69b, ,943, 279. This sum. nearly one and
'three-quarters of billion dollars, and
only $3.50 000, 600 less than the value of
the corn and wheat crops of that year,
is tR annual dead waste in the cost
OF agricultural production, due to our
most forces speculative land prices.
while putting a heavy burden OF taxa
tion on all producers.
Land mortgage banks will help the
average tenant farmer and would-be
farm owner under our present tax sys-
tenn about as much as sticking feath-
er in a rushing mountain torrent would
'fn 1910, there were 1854 SS7 farms op-
Grated by owners owning the entire
farm. The value Of the land of these
f. ~I,y
There were 3006.605 farms operated
by part owners. managers. and tenants.
the land of which was worth SIS, 033,
S39 $50. The farms directly operated by
tenants numbered 2.354676, and the land
thereof was worth $3.50, ,693,'76
The present decades speculation in
farm lands would load an annual wast e
of four billions on the cuuntry's pro-
ducers.
The folly of attempting to meet the
desperate situation of the tenant farm
.rs and small farm owners. shown IN
the report of the United States Com,
mission on Industrial Relations. by land
mortgage banks is even more apparent
when we look ahead four years to 1870
Burden On Consumers.
"If the value of farm lands increases
ms rapidly during the present decade
as during the past. the increase viii
he So. .601 ,295.5l9. Five per cent grounc
rent on this enormous sum-over ore
sixth of our national wealth in lSl2-
Is 1850, O64,7I Six per cent interest or
S3696, ,l42.JII. This is lhIce-Cuarters u
Tho total governmental debt OF the
country. Approximately this sum inu"
lie paid directly. or indirectly betGr,
farm producers get any profit and tn!
charge must be paid by tho consumers
Tho total mortgage Indebtedness Ii'
19lO) Of 1O06,5ll farm owner" inCludlhs
those who rent additional land. Wa
,the census rrpOrtsl Si.72i.l72 S5l, o
about one-twentieth of tn" additiona
dead loss debt of producers to Lane
specuiators involved I'm tn" proball
speculative increase in land values dur
ing the Gresent decade. Reducing ~
rercst rates viii increase the selIini
rico II land, so Iona as 'and value
are lightly taxed as now.
In view of the Se't-eN'dent facts Sc
forth above, We respectfully suggeS
ihat any bill establishing land morris <
IanXs should iolIOw the principle q
10 Sni,h-Iever oil fur sgricultura
extension work. 1t should provide tina
,,dOral and, through land morlEat
lauks Will he extended only To thos
states which abolish taN"s upon m
lrorCmeuIs and all products OF laDo
ND so"lIrc revenue for local and Stat
,uIposrS hv tANm" land values.
y on and all members of your CON
Mission. as we'll as the President, kno
r,is tranSfc.' of taxes from labor TO Ian
values will benefit all small larm owl
,lS and tcnlntS. the value OF who's" 1T
:
ihc bare site value of tnc'r farms.
j. also tho only effective means TO brea
rr the monopoly of farm land In OF
country where ONLY ! D'r cent oI n
Inn acreage Is in farms of less tina
twenty acres. and nearly one-hfth Is
rarms nf .HO0 to 100000 acres.
at alone will insure to real iarne
the benefit Of land mortgage bank
oven rural cooperation and credit sy
The untaNing OF the products
labor Is endorsed by the progress
oranges of the country, The Washin
ION State Grange, at its convention
June. adopted the following resoluio
That we go on record as faVorir
the adoption of u system OF taXau
whereby personal property and all II
rrovements would be exempt, and I
burden be borne entirely by la
values
This principle has been recommend
by tho United States Comm ssiOn on
d1strial Relati II is the nov 10.
,aI stcn in hclpinc farmers and shou
Ircrcdc the establishment of land mol
cage banks.