The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1916-10-20

the Gardner bill is direct step to-
ward single tax because It exempts
the bonds Of land banks from taxa
ton"
/ assert II is a direct step away
from single tax. do not know in
whose brain the brilliant idea ex-
pressed by the Judge was born. 1t is
evidently another opinion that he
grabbed Off in the heat of the cam
paign. A moments analysis will show
its utter falsity.
The best way to get at the effect Of
the Gardner bill is to compare the tax
burdens on real property under exist
ing laws with the tax burdens under
the Gardner bill. l proceed by Illus
tration.
Under the present law, If a farmer
owns piece of ground worth 100000
II will probably be assessed at approx
imately 40 per cent, or $4,000 If the
tax levy for state, county and school
purposes is 40 cents on the $500, then
the total tax against the land is $3.50.
Now, if the owner mortgages this
property for one-half its value he still
is obliged to pay the $16O tax al
though his equity In the land is only
so per cent.
Now, suppose that theaowner APP
plies for a mortgage loan on his
ground for $4,000. The man who is
to loan the money understands that
when he has secured his mortgage he
will be compelled to pay a tax there
on and probably be compelled to re-
hi p,,n e.
value. He, therefore, knows he will
be compelled to pay 5000 of taxes on
his mortgage. Accordingly, in making
the loan he will figure that he must
add to the interest rate he would 9th
erwise charge the amount of taxes he
is compelled to pay. If the tax rate
is 40 cents on the 800, then the tax
on his mortgage will be 5000, and he
is certain to add that amount to the
interest charged the farmer. So that
the land must bear the straight taxes
on the land of $3.50 and the tax on the
mortgage, which is added in by way
of interest, amounting to 5000, total
Of $3.50.
But under the Gardner bill the hold
er of the mortgage bond will not be
ObAi5CN W pay any ldA. ubI6lOT6y
the land, instead of being forced to
bear a burden of $500, will bear only
burden of $160. In a word, -the
present system imposes a double tax
alton upon the land that is mort.
gagged. The Gardner bill proposes that
only one tax shall be laid upon the
land. Therefore, instead of the Gard
ner system being in the direction of a
single tax, its effect is Numerically
the opposite.
In order to avoid this, of course,
Judge Lamm may claim that in MAX
ing loans the lender does not stop and
figure up the taxes and add them in
the interest charge; but everybody
knows that the man who loans money
figures on the net return to himself,
and II the tax rate upon his mortgage
is light or heavy he takes that fact
into consideration in making the loan:
SO that. as general proposition, it
may be truthfully said that the Dor
rover of the money pays the taxes
upon the mortgage through an in
crease of interest charges.
Judge Lamm contends that the crea-
ton of land bank is a discrimina.
ton in favor OF class, to-wit the
farmers. To the contention there are
three complete answers:
First, | shall answer the Judge out
Of his own mouth. He declares that
the national land bank system is a
good thing. He puts the seal of his
august approval upon that act. Yet
the national land bank is in every one
n raTi Ia AZ.
same as the Gardner land bank, How
can the Judge in one breath commend
the national legislation which estab-
fishes 6. national land bank scheme as
fair and just law and in the next
breath declare that another law, ex-
actly similar in its general character
istics, is discriminatory?
Second, the duty of the government
always has been to furnish the bank
ing machinery necessary for the prop
er conduct of the business of the coun-
try. In pursuance of this duty we
more than so years ago established a
national banking system, but confined
its activities to commercial business
and denied to national banks the right
to make real estate mortgage loans.
The Gardner bill and the federal land
bank bill simply propose to give to the
farmers privilege which for so
years has been granted to all other
lines of business but denied to the
farmer upon the chief class of secur.
Pity he had to offer
Third, it is impossible to benefit the
farming class without at the same
time benefitting the country at large
and every individual citizen thereof.
The truth of the whole matter is
that Judge Lamm has placed himself
in opposition to remedial legislation
which will work inestimable benefit to
the agricultural classes Of Missouri.
He undoubtedly plunged in without
having taken proper soundings. He is
beyond his depth. His opposition to
this progressive legislation shows him
to be the last man the state ought to
place in charge OF its business affairs.
Land bank bills mark the beginning
of new era in America. They do dot
undertake to give aid by doing VIC
llence to the laws of trade and COM
lmerce. They do not seek to benefit
| the farmer at the expense of other
classes, but they do furnish to the
farmer without loss or cost to the rest
OF the community means bv which