The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-04-30

rural population OF the country.
which includes 100000 workers
and hands. 100000 farm owners
and managers ana more than 3d.
100000 residents OF small towns
directly dependent for their exist
once upon the farmer.
The farm managers and owners
naturally pay the great bulk OF taxes
levied in the rural regions. Conse-
qurntly the burden Of increased
taxes due TO bonus legislation Will be
upon their shoulders.
Erect In Oihcr Directions.
Tho farmers viii also be hafupcrcd
IN other directions by tho bonus.
Tho operating costs Of farms will be
Increased according to the experts
of both treasury and agricultural de
parimcnts. II the banks are com
PEELED 10 advance money for bonus
certificates the farmer VIII certainly
find II difficult to borrow money
with which to operate his farm and
NOV" his crops, 10 say nothing OF
buying new machinery and making
necessary improvements.
Discussing this phase of tho bonus
scheme today, Actuary Mccoy said:
In the south the bonus would So
rlouaIy interfere with the production
of the cotton crop ana tend to send
soaring the wages Of plantation
hands. Tho bonus would place In
the hands ~ many plantation labor
cIH sums ranging upward from $50
into several hundreds. There are
many cX-scrvice mon among the
plantation hands These work crs
scldom In their lives have had large
sums of money In their possession.
"What * likely to happen is that
many plantation hands viii sct to
work 10 spend the money az quickly
~ they can. This means long abb
scnce from work. Labor prices nre
bound 10 rise. 10 say nothing of the
fact that II might be Impossible to
obtain enough hands. To get In tho
crops.
"Thfs VIII occur not Just once, but
AT least twice during different CROP
years. Under the present bonus plan
cash payments up to $50 Will be
made Immediately.
Certificates OF Loans.
at about the same time service
certificates will be issued which the
banks are gNopoCted to recognize az
collateral for loans up to 90 per cent
Of tho face value Of each certificate.
The distribution of these Ccrtificateg
therefore Will be COiucidcnt with
making a large distribution of cash
to many plantation workers
"a second d'stributlon viii occur
in september. 1925. when the bin
provides that the government shall
pay Off the loans on which the bOr-
rowcrs have dcfaultcd and turn over
the balance In each case to the bor-
rover up to 80 per Ccut of the face
value of his certificate. IL is rea-
sonablc TO suppose that the bonus
will interfere with the planting and
harvesting OF cotton during the crop
year 1928 and also during that OF
1925.
There is still another factor IN
the bonus situation which will tend
to hamper agriculture. This Is the
clogging OF banks with millions Of
frozen credits as n result of the loan
provisions OF the bill. when n bank
makes a loan on n service certificate
II may not discount II and pass the
burden along To the federal reserve
systcm as In nearly all other caseS Z
Instead the loan must remain on the
books of the bank. That means the
tying up Of a great deal of money
for two years or more until the gov
ernment Is ready to take over the
burden In September, 1925.
Farmers have long complained
they cannot get enough credit at the
banks to market their crops effec-
lively. The bonus is likely to make
1t more difficult for farmers ana all
business men to obtain credit at the
banks.
"The bonus. OF course, will tend to
Increase the cost OF living In every
section of the country and for all
groups OF persons including the ex-
serYlcc men themselves."