The Lexington intelligencer. [volume] (Lexington, Mo.) 1901-1949, 1916-06-30
NOT THE SINGLE TAX

To the Editor Of The Republic.
The statement which is being sent out by a certain politician
from Jefferson City that the Gardner landbank act is a singletax
measure is an insult to every farmer in the state OF Missouri Every
farmer in the state knows that it is not a single tax and they know
that politicians re making this statement simply because they think
the farmers are 80 ignorant that they do not know black from white
The National Grange, in convention in San Francisco, after con
sidering every rural credit measure of all the nations OF the world,
and all that have ever been submitted u Ia people OF te omeu
States, approved and Endorsed Mr.. Gardeners bill without a dissenting
vote. The National Grange was composed Of representative farmers
from every part Of the United States.
The Gardner land bank act has also been Endorsed by the State
Grange of Missouri, the State Corn Growers Association, the Fed
GRAFTON of Farm Advisers and every farm organization IN ue
of Missouri.
The people Of this state are asked to vote for a constitutional
amendment authorizing the establishment Of a land bank. The legis
lature has the right to amend or change any section of the land bank
act that it deems expedient 1t can raise or lower the percentage OF
valuation on which loans are based. 1t has the power to change the
section relative to the exemption Of the land bank bonds from taxa
ton; but it will never change that section with the consent OF the
farmers Of this state. Amy thinking man knows that the bonds will
sell at a loves rate on the market if they are exempt from taxation.
The land bank act provides that the farmer shall make his loans at
the exact rate at which the bonds are sold. For instance, suppose
the bonds were sold to the great financial institutions of the city OF
St Louis. The tax rate In St Louis is 1886. Does it not follow that
these financial institutions would add that much to the interest rate?
In other words, if they buy the bonds on a 4 per cent basis and have
to pay $2S5 taxes on them, would they not charge this $685. tax rate
up to the farmer? Common sense teaches that no large financial In
stituHon would buy bonds at 4 per cent and pay 1926 taxes on them,
leaving them only sl65 for interest
Another point is this: knowing that the bonds would be exempt
from taxation and that they would have tc meet local competition in
St Louis and Kansas City, the European buyers Of bonds would bid
much less for them in London, Paris and Berlin.
The money which the land bank advances to the farmer to create
new wealth, that is to say, for improving his farm, buying live stock,
machinery and farm equipment, Immediately becomes subject to local
county taxation, Therefore, would it be reasonable to have the bonds
bear interest, or be subject to taxation, which the farmer would have
to pay, and also pay taxes on the land itself?
United States government bonds are exempt from taxation. Why
has that never been called single tax? Foreign corporation stock
owned by citizens of Missouri is exempt from taxation. Why has
that never been called single tax? But when we want to exempt the
farmers land bonds from taxation the politicians say it is single tax
Insfncery pure and simple. But the farmers of this state are not
misled by these fake farmers club organizations in the back room Of
political headquarters within a stones throw to Jefferson City. The
farmers arr going to stand by Col Gardner and the land bank, and
the politicians might as well get that into their heads once for all.
/ notice that the St. Joseph convention Endorsed the rural credit
bill now pending In congress. This bill contains the same provision
for exemption from taxation that the Gardner bill contains. In fact
every student OF rural credit knows that the bill in congress was pat
termed after the Gardner bill The state convention has Endorsed
this bill, President Wilson has Endorsed It and the Joint committee in
oomross has Endorsed It, which means that Il has received the in
dorsement Of Republicans as well as Democrats. Some Of these poll
tdans M going to find themselves in pretty deep water. They will
find themselves in oppositon to their party platform and President
Wilson himself
E. H. BULLOCK, Edna, NO,
President State Organization Farm Bureau Boards, Vice PRESIDENT
state Federation Commercial Clubs.