The labor journal. [volume] (Everett, Wash.) 1909-1976, 1920-07-09
Farmers National
Councils Program
To Save Billions
Continued from Last Week.
A Capital Tax Should Be Levied to
pny ualf of Present Debt

Pay Half of Present Debt.
The American people cannot af-
ford to pay tens of billions of dol
lars interest on the national debt
during the next twenty-five or fifty
of the people who loaned the major
portion of the national debt.
A tax should Immediately be levied
upon the capital value Of property,
with an exemption of $25, 000-which
would raise at least fifteen billion
dollars, or about half of our present
debt. Less than 22,700 people out
of our population of l10,000,000 own
nearly one-third of the total national
wealth,-nearly seventy billion dol
lars.
A capital tax of one per cent
upon all property in excess of $685.,
900, with rapidly progressive rates
up to rs per cent on all property
worth $500,000,000 and over, would
yield almost fifteen billion dollars,
and take only about one-fifth Of the
aggregate value of property of those
having an income of $4,000 to $780,
900 from property.
monopolists would save the farmers
of America at least $1,500,000,000 a
year for many years to come-or an
average of 1929 per farmer family
of six.
5. Government Ownership and De-
velopment of Natural Resources.
The natural reasurces of the coun-
try, coal, oil, iron, phosphate, sodium
nitrate, gas, copper, waterpower and
timberlands, still in public ownership
are worth over 100000 900 900,
which is nearly the total commercial
and governmental Indebtedness of the
world.
Private ownership Of natural re-
sources is one of the fundamental
causes of the high cost of living,
and compels the farmers to pay a
high price for tractors, farm ma
chinery, coal and nearly everything
| which they use and wear. Govern
ment ownership and operation of
these natural resources would save
farmers hundreds of millions Of dol
| lars a year for natural resources and
their products.
A large proportion Of the great
fortunes of the United States is
based upon private ownership and
development of some natural re-
sources. In five years after the dis
| solution of the Standard Oil Com
pany, the companies included in that
combina ton distributed in cash, stock
at par value, and subscription rights
a total of $650,000,000, while the
capitalization of the companies in
cluded in that combination. was, in
1912, only about $227,OO0 900. The
Standard Oil doubled it's stock which
will permit deduction of nearly
| $53,OOO,0O0 in computing the excess
profits. In 1916 the corporations de-
veloping the gas and salt wells had
net income of nearly 1921, 900 900.
| The total net income Of the corpora
tons extracting minerals was in that
year, nearly $800,000,000 Eleven
mine owners or mine operators had,
in 1916, net income of over ST.
100000 each; ten had a net income
of over 81 5000 each, and several
had net income of over $4,000, 900.
In 1917 the net income of 404 coal
companies reported was $78,00O,0 900,
or nearly 45 per cent of their total
capital stock of $175,000,O00, and of
! those companies nearly half-185-
earned on their capital stock from
100 per cent to 1856 per cent. Much
of the stock was given as bonuses to
buyers of bonds.
6. Credit Must Be Made as Chean
and as Available to Agriculture as to
any other Legitimate and Responsible
Industry.
This will save the farmers at least
| $780, 900 a year.
The total Indebtedness gainst farm
values is about $6,000,000 900, and is
increasing. The average annual cost
thereof to farmers is at least 10
per cent exclusive Of payment on
principal-that is $500,00O,OOO a
year. 1t is feasible to reduce this
cost to about five per cent and save
farmers at least $200,000,000 or $40
on the average for a farmer family
of six. High interest constitutes
nearly half the cost of production of
some farm products.
This program of the Farmers Ma
tional Council will save the other
workers of America fully as much as
it will the farmers. 1t is to the
common interest of at least ninety
five per cent of the American peo-
pie to have it promptly put into
effect.