Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-07-14
PARTMENT OF
EDUCATION HAS
BEEN WASTEFUL'
This Is Statement of Ex-
Governor Hagerman in
Address to Roswell BuSi-
ness Men.

ness wen.
Following Is another INSTALL.
mcnt of the address of former
Governor III. j. Hagerman,
president of the State Taxpay-
Crs' association. to the busi-
ness men of Roswell. The
third instaIlment will appear
tomorrow:
While production and consump-
ton are not necessarily divided
into periods of time, it is helpful
for purposes of analysis to so di-
vide them, At the beginning of
a certain period the community
has stock of economic goods and
a certain labor force. Consump-
ton during that period must nor
mally be restricted to the net pro-
duction of the period. The stock
Of economic goods must be greater
at the end Of the period than at it's
beginning to permit greater con-
sumption during the next period;
otherwise, we will be living on our
capital, and economic disaster
must sooner or later ensue. 1t Is
possible for limited periods to live
on capital. but this cannot be con-
tinued for any extended period
without reducing the social in
come. Consumption must normal
| ly be restricted to social income
currently produced. Each genera
ton must at least pay its own way.
Moreover, il the capital fund is
| to be increased instead of merely
maintained, not all of the social
income can be absorbed in current
expenditures. Economic progress
depends in a large measure on the
rate at which community is able
to build up capital by RETAINING
from the consumption of its entire
social income.
Can't Wait Development.
Let us apply these principles to
our own situation. The view has
recently been expressed that what
is termed this bugaboo of high
tax rate" will automatically be dis
sipated and dispelled and expedi-
tiously solved by the fostering,
upbuilding and development of our
well-nigh ineXhaustible natural re-
sources, and the resultant increase
in our taxable wealth. Such a con-
summation is one devoutly to be
wished for, but I ashland with
all respect for the opinion of 9TH
ers-what are we to do to live in
the meantime? While we are
waiting for this development,
which may come-and, If it does
come, is long way off-while we
are waiting for the development
which is to justify the taxes which
we are now charged with; while
we are waiting, are these taxes a
| bugaboo, or are they a grinding,
an actual, an exhausting, demon
alizing, a disheartening fact?
Now, our greatest natural re-
source, our dominant and controll-
ing natural resource, is our graz
ing range. You men know that
to be true. You know that large
share of your business here, proba-
bly, four-fifths of all your business
| here, depends directly or indirectly
on the grazing industry. 1t is the
one great industry in New Mexico,
and its continuance depends on
two things-the restoration and
conservation Of the range, and
reasonable taxes.
Industry Is Hurt.
This great industry is being Sc
riously impaired by failure to con-
serve and foster the greatest of alt
our natural resources, and by well
nigh impossible taxes. Our wealth
and social income, 50 largely de-
pendent on the stock and grazing
industry, are both falling of rap
idly because of the depletion of
our greatest capital asset, the graz
ing range, and the absorption of
SO large share of our net income
Tor current expenditures.
or course, we have other re-
sources-mainly farming and min
eral resources. And we have the
railroads, which pay a great deal
in taxes. AS for the mines, they
constitute but a comparatively
small proportion of our total tax
able wealth. AS far as farming is
concerned-and l speak advisedly
after long and costly experience
I am firmly convinced that it's
future in New Mexico is largely
to be conditioned on the closest
possible cooperation between the
farming interests and the range
interests. In such cooperation
alone.l can / see real future
for the farmer in New Mexico.
Irrigation Affected.
20 Here let me again remind you
OF what you already we'll know,
that, as far as irrigation farming
is concerned, the, very factors
which make it at all possible are
the ones which make reasonable
taxes absolutely imperative. Be-
cause of irrigation and drainage
charges, our farming lands must
start off with handicap which
must be compensated for by low
err general taxes If the farmer is
to- survive. There is no use CAM
ohflaging such facts as these.
l am not going very far into
this much discussed question of
school and road expenditures
haven't the time. But it is fact
that the scope of public activities
and the amount Of public expen-
cultures, including both road and
school expenditures, should be de-
mined in a large measure on the
basis Of their efficiency in con-
tributing to the social income,
and that that efficiency should
be measured by comparison of
costs with benefits.
School Expenditures.
However, it is true that, what