The Devils Lake world., 1921-06-08
First Installment.

ceipts?
There is no doubt but what all far
mers will favor commodity financing
based on bonded warehouse receipts
In this connection the following points
should be remembered. First: Con
gress in 1916 passed bonded ware
house act which was amended in 1918
which in substance provides that all
persons, firms or corporations doing
an interstate or foreign business in
grain shall be bonded under the reg
ulations or restrictions imposed by
the U. S. Commission Of Agriculture
Warehouse certificates are of two
kinds, first, negotiable; second, non
negotiable. The second point to be
remembered is that most states Of the
union have similar state law. North
Dakota has such law, providing in
substance that all persons, firms OF
corporations engaged in the handling
Of grain shall be licensed and shall
provide a bond ranging from $4,000
to $4,000 in cases Of line elevators
owning several units in North Dakota
This department is under the jurisdic-
ton of the Commissioner of Grades
Weights and Measures. The third
point to remember is every elevator in
the state must secure a state license
and be bonded by the state and Sec
ondly, these same elevators doing an
interstate business shall be bonded un-
der the act Of Congress. Warehouse
certificates issued by any bonded
warehouse, negotiable in form, are
really the foundation of credit which
must be obtained in order to move
the crops of the country. The federal
reserve bank is not giving these ware
house certificates the credit they are
entitled to and consequently agricul-
tural loans have not received the
same fair treatment that other busi-
ness concerns have.
2. Do you favor livestock financing
based on an adequate pledge of ami
mails and feed?
Il can only say that this question
answers itself. Everyone interested
in agriculture will not be opposed to
that means of finance.
3. Do you favor the development
of personal rural credits system
based on proper safeguards?
Question number three strikes at
the amendment now before Congress
concerning the Federal Farm Loan
Act which is designed to give farmers
long time periods of credit on live
stock to be paid back to the govern
ment on the same plan as farm loans
are now paid.
A. Do you request that authority
be granted the Federal Reserve
Board to so classify rediscounts as
to give priority to loans for basic
production of all kinds?
The answer to this question would
invariably be YES. By basic produc-
tion we mean agricultural production
and this provision simply means that
of two classes of loans one is spec
ulative business venture and the other
a production venture. The plan out.
lined means that the Federal Reserve
Bank is giving preference to those OF
the latter class.
5. Do you favor increasing the
limit on Federal Land Bank mortgage
loans from $4,000 to $25,OOO?
In many of the middle west states
where the limit of any farmers loar
is $4,000 it does not give him very
adequate credit so far as his farm
loan is concerned. In this section OF
the United States there is no question
but what the present law would be ade.
quate enough, but for the general agri
culture of the United States it must
be said that the limit should be raiset
above $4,000.
6. Do you favor asking Congress tt
submit to the state a constitutions
amendment prohibiting the issuance O.
all tax-free securities?
Tax-free securities have been mad,
50 in the past for the purpose Of max
ing bond issues sell more readily, bu
the inevitable result Of this is tha
finally, and in most cases very short
~. this class Of security drifts int,
the hands Of the monied people o
the country and many of this elias
have accumulated most of their ne
property in tax free securities an,
thereby avoid paying taxes, TIL
principle of all taxation should be tha
those most able to pay taxes shoul,
4 pay them and this principle of tax
E free securities has really circumvent
ed the fundamental principle of taxa
tion. Therefore, it ought to be plai,
that no more tax-free securitie
6 should be turned loose in the arterie
Of commerce Of this country.
Are you in favor of continuin
the Excess Profits Tax?
9. Are you opposed to the enact
lnent Of General Sales Tax?
Consider these two together for tn
people who recommend the Geners
6ales Tax, also recommend the dis
ecnttnuing Of the Excess Profits Ia,
The four principles Of taxation a
putdned by the American Farm Bu
edsration are as follows:
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