Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-12-01
Dlsc0URAGIING PRODUCTION

&&F IA6 war mas created the need Tor production OK
commodities Of all kinds at an unparalleled rate. The
principles which have governed our taxation are euch
as directly to discourage production by penaltzins it and
q number Of ways, among them in the operation OF the
federal land loan bank.
Bonds issued to provide funds for the operatton OF
the system. and all income derived from those bonds.
are exempt from taxation Of every kind, except inheri-
lance taxation. which does not affect the purchaser dur-
Ing his lifetime. The man Of many millions. therefore.
needs only to convert his holdings into these bonds III
order to escape all taxation. But If he is 90 unfortunate.
or 70 unwise. or 80 stubborn as to keep his capital In
ins securities, he is taxed coming and going. taxed on
his earnings and hts income, taxed on his right to do
business, on his very right to exist. W.
The investor in farm bank bonds takes no chances.
Il there is any risk, he assumes none Of II. His earn
inss are fixed and definfte,> and are payable at stated
periods, and at the time of maturity he Is certain Of get
ting his money back, dollar for dollar. There is no
more attractive investment In the world for the rich man
who does not need to exert himself, and who has no de-
sire to do SO, the man who has no ambition in life be-
yond the possession OF an assured income and the OPP
portunity to spend as much of It az he pleases on things
TINT contribute to his. own personal enjoyment. Z
But the man who is engaged In q productive enter
prise on his own account faces a different set Of con-
NAANAA ES ~ A1oS A0SO ~ DLkAS x6CkOly lEOUA
his father, and may have the not unnatural ambition
to make It grow into a big one. He may own q farm
which he is trying to improve. He may be a small-town
merchant who is trying to keep his head above water.
1t makes no difference. He must accept all the risks
OF his calling. Poor crops, mistaken judgment. or any
OF q multitude Of adverse business conditions may land
him flat on his back. and he lives continually in an at
naosphere Of risk. It he loses money he gets scant SYM
patty, and IL by any chance his profits in one year
are sufacient 70 recoup him in part for the LOSSES OF other
years he is denounced as . grinding monopolist and Q
constituencies prof1teer. And all the time he i, taxed.
taxed on every motion that he makes and on every breath
that he drawA
N sane man supposes@ that we can get along without
taxation. Ind, because Of the enormous and unavoidable
expenses OF the wal. We must expect to be taxed heavily.
But the 5absurdity ana the wrong exist In the adoption
OF . policy which. by holding ont q direct invitation 70
individuals to invest n Z given line Of securities In or
der thai they may escape t-azaston. places = premium on
idIsness ana imposes additions, burdens on every form
Of produetion.
Every dollar invested in fedora, farm bank bonds
IeMers by exactly ons dollar the amount Of taxable prop
erty A ths eedptry. and insresses Ia Just tia. proportion
the taxeswhich must be collected on every other dollars
worth 81 property. And there is q sort Of grim humor
81 ths fact sthat whereas this tax exemption feature was
adopted a = sop q the farmer, ~ exemptinE the rich
man from staxation ia makes II necessary to collect just
that much Snnors taxss from the FARMER.
5HG