Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1922-12-19
TAX.FREE SECURITIES
Mr.. Stevenson Attacks the Republl-
Can Policy.
IT is AIMED AT The FARMERS, He SAYS
Federal Government Seeks to Avail IT..
self of Advantage That Is Now Being
Used BY the States With Which to
Build School Houses and Roads.

self of Advantage That Is Now Being
Used BY the States With Which to
Build School Houses and Roads.
The following remarks by Congress
man Stevenson in opposition TO the
proposition looking to Federal taxation
of state and municipal securities, are
taken from the Congressional Record
of December Il:
Mr.. Taylor Of Colorado. Mr.. Chair
man, l yield 10 minutes to the gentle
man from South Carolina [Mr. Steven
sonl.
Mr.. Stevenson. Mr. Chairman, 1
want to discuss for few minutes
tendency among the aristocracy to
amendment to the Constitution of the
United States, which is being pressed
by the president, to prohibit the issu-
ance of further taX-free securities.
This agitation did not begin until the
farm loan system began to function
and the bonds to procure the loans for
the farmers of this country were being
sold tax free over the country. We
have had a tremendous amount of agi-
tation against flooding the country
with tax-free securities as the result.
The situation is this that we are get
ting the money for the farmers and
lending it to them at per cent. The
law as it originally was provided that
they could not charge a farmer more
than per cent more than they paid on
the bonds, and not exceeding per
cent. 1t became evident that we had
to give little higher rate, because the
rate of per cent represents the limi-
tation as being the highest that could
be paid. We had difficulty in selling
them at 5 per cent. The result was
that, at the request of the farn-loan
system, we have amended it so that
bonds car be now sold by them at IL
per cent, ana the farmer is charged 6
per cent, and the system is run on one
half of one per cent, as it is now run
ming; but if you put tax on the bond
or O. tax on the income derived from
them you can see very easily you have
to elevate the rate to the farmer or you
do not sell the bonds. Now this is the
thing l desire to refer to. The presi-
dent made q considerable appeal on be-
half of the farmer. He is exceedingly
interested in their behalf, both in his
first message and in his last message.
Now, l want to call attenti"n to one of
the things that the farmer has been
after, and that is to have a farmer
member of the Farm Loan board. That
law has been in existence since last
May, and yet the president has not
been able, being so interested in the
farmer, to appoint member yet. The
financial problems for the coming year
have been all staked out and the pro-
gram arranged. l am inclined to think
that this promise to the farmer is not
being justified by the performance in
so doing. This proposition to retire all
taX-free securities is a proposition
which will Immediately and inevitably
cages that are being taken all over the
country.
Mr.. Qun. What is the reason the
president will not appoint a farmer?
Mr.. Stevenson. l do not know what
is his reason. It has been announced
that he will appoint J. r. Howard, who
is the only farmer in the United States
who has announced that he was in ia
vor of a ship subsidy bill.
Mr.. Clarke Of New York. 1 deny
that.
Mr.. Stevenson Mr.. Mellon gave out
the statement, and he is a higher au-
thority than the gentleman from New
York. The proposition to make all
state bond issues of every kind taxable
by the National government is simply
proposition to destroy, cripple, and
limit the credit of the state and its
sub divisions. You may say that is a
rash statement. Let US see if it is.
What does the president say about it?
He says:
"Tax- exempt securities are drying up
the sources of Federal taxation and en-
couraging unproductive and eXtrava-
CANT expenditures by states and muni-
cipalitics"
In other words, the power Of this
government is invoked by an amend
ment to the constitution and by the
taxing power to step in and regulate
extravagant expenditures and unpro-
ductive expenditures of states and mu-
inequalities. In other words, when you
want to build 4 school house in any
school district in this country they
propose 10 fix it so they will put tax
on the bonds issued for the purpose,
because they are spending too much
money on school houses. If you want
to build good roads and the county
wants to issue bonds, they propose to
put a tax on it because forsooth, the
president says the states and munich
paIities are becoming extravagant.
1t is just simply another effort to de-
horn and to destroy the power of the
state governments, and to do it by more
1irtation from WASHINGTON rs TO what