The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-02-21
MOVEMENT ON FOOT
TO KILL FEDERAL
LAND BANK
Continued from Page Two)

practicable safeguard is to amend the
law now, so future issues of Lane
| Bankbonds shall bear their share oil
| the tax burdens of the nation, the
same as commercial securities, like
bank stocks, transportation and in
dustrial bonds, and mortgages on
country and city property.
No Benefit to 80 Per Cent of Ameri-
can Families
There are in this country %, 800, 600
families whose combined incomes are
100000, 100000. Of these 21,375,0 600
/ receive incomes of $4,000 a year OF
less. Only 6,633 families receive in
, comes over 100000 a year or more.
Of these 100 receive incomes in .ex-
cess of $1,500,000 each. Persons re-
ceiving incomes of 100000 per year
realize more from per cent tax
exempt securities than from per
cent taxable securities, while persons
having Incomes of $4,000 or less,
realize more from GO taxable Sc
curities. A person with an income Of
100000 a year weuld realize. 5 per
cent on a Land Bank 5 per cent Bond,
while he would realize only 161 per
cent or less than one-third as much
on a 4 Il per cent Liberty Bond, held
in excess of the tax exemption limit.
The principal benefit of tax exemp-
ton goes to the millionaires, while
the 21,375,000 families with small in
comes cannot possibly benefit one
single cent by exempting the bonds
TOW 11TI
when their Liberty Bonds depreciate.
QUESTION No. 3-Do you consider
it wise financial policy for the
Government to continue this tax ex-
emption of bonds issued under the
Federal Farm Loan Act by Federal
Land Banks and by Joint Stock Land
Banks Or, should the law be
amended SO that their securities
would stand on the same taxing level
as the bonds of industrial institu-
tons, transportation companies and
other banks?
More Credit Banks Proposed
The mistaken idea that tax exemp-
ton of farm loan bonds legitirnateIy
produces cheaper money has already
started active agitation for two more
kinds Of Government loan banks
whose success shall be based on tax
exempt securities.
Residents Of cities are already
clamoring for the organization Of
banks to give them the same special
as those granted by tbs
Federal Land Banks. Within the
last few months the real estate board
of New Orleans passed resolutions
urging the enactment Of such a law.
A bill now before Congress pro-
vldes for the organization Of personal
credit banks. It's object is to provide
cheap loans for persons who have
neither country nor city property, |
real or personal, to offer as security, |
There appears to be no good rea-
son why any distinction should bel
made between farmers and honest
working men in town. IL banks are
TO be operated on capital partly fur
nished by taxpayers under the super
vision Of officials whose salaries and |
expenses are paid by the Govern
ment, there are as good arguments in
favor of loaning on personal credit, |
etc " SlAC IIl6t1L WIZ OWIlS ~ 1Ct1 Ill Vi IL
town lot. It will only be question
Of time until all three kinds of banks
will be on the same level, If this be-
comes a political issue, because the
borrowers who live in towns and
those who have no land, far outnum-
bers the farmers.
QUESTION No. 4.-Do you think
it would be good plan for Congress
to create Personal Credit Banks and
City Mortgage banks, and permit
them to issue tax exempt bonds in
with Liberty Bonds, bank
stocks, commercial securities, trans
oortation bonds and industrial bonds.
which are subject to taxation?
Needy Farmers to Get No Benefit
The Federal Farm Loan Law was
passed for the purpose of helping
poor men. The high rates of inter-
SCH maid hxv 70 rry1ny.c In fhn Gn11fhoyv