The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1921-08-06
TAX EXEMPT SECURITIES

TAX EXEMPT SECURITIES
Continued issuance of tax-exempt Sc
cuIities by municipalities and the var
ious government bodies, including the
FEDERAL farm loan bonds, is menace to
the credit of all political subdivisions
and such policy is leading towards pro-
perty confiscation and materially delay
ing the industrial progress of the nation,
according to Representative Louis T.
McFadden, chairman of the house COM
mittee on banking and currency.
"The creation of two classes, one free
from the burdens Of taxation, and anoth-
er which is forced to bear the burdens of
which the wealthy are relieved through
the purchase of taX-exempt securities is
violation of social Justice, which is crys-
talizing in broad public opposition and
discomfort as the issuance of tax-exemDt
securities expands" said Representative
McFadden. "In the last few years we have
seen the personal wealth of the country
so rapidly segregated into the tax free
class that whereas the taxable income OF
the individual taxpayers, under the. fed
eral law for income taxes was 1892, 972,-
1856 in 1916, the amount decreased to
1871, 372, 053 in 1917 and to $780,, 247, 1929
Az AOAC. ~ 10 a S1lC COIlCluSIOU IIldL LUGN
have converted their wealth into tax free
securities so rapidly that at similar rate
of conversion they would be scot free of
all taxes by 1922.
1T is stated that more than 81, 100000
900 of state and municipal tax free secur-
tiles were issued in 1920 If these securi-
ties are held by the wealthy whose feder-
III ~; is at the rate Of 70 per cent,
%ha tnta oil :,
600. On a conservative basis the govern
ment alone, is now losing annually from
$l75,000,000 to $200,000,000 on tax ex-
empt bonds already issued
sI = 81
COMMON SENSE WILL PREVAIL
The U. S. National Bank of Portland
has this common sense view in its bust
IS digest just issued:
1--WE are now paving prosperity's debts
Ii was human nature to run up bills dur
ing good times and we did it. Now we
are paying our bills under pressure. We
borrowed fifty cent dollars so to speak
now we are repaying them with S5-cent
dollars-and as prices continue to come
down, it will be necessary to repay addi-
tional dollars obtained in boom times with
dollars which will be twice as hard to
earn. Of course it is hard and the worst
is not over. Though prices have fallen
greatly, there is still further deflation to
be accomplished. We are paying the
penalty for violating economic laws, and
all are guilty fro mthe federal govern
ment down. Extravaganza, perhaps JUS
titiable under the necessity of winning
war, was the order of the day. For
eral years, figuratively speaking, we
were borrowing ourselves rich. Now we
suffer because we must pay back.
But car people are looking facts in the
face. The country is not broke-it is
aa.clT oent. Common sense and hard
C,c- k honest work--thIift and economy
will pull us out Of the hole 1t is time to
g! 2ft or coats, 90 TO work, take our
--Cocne no matter how bitter suffer our
losses End benefit from our experience.
There have been times before when fin
ancial conditions seemed almost hopeless
but always common sense has pevailed,
and thus it will again"