The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1922-03-09
DR.. LADD'S
WEEKLY LETTER
The American Farmer

t
Icreasing because of the apparently
unnecessary rapid defation in cur.
rency and credit that forced 50 many
farmers into bankruptcy Oh to the very
verge Of bankruptcy. But the CO.'S
per cent of farms managed by the
owners Of these farms only tells ia
part the story for a large share oi
the farms managed by the owners
themselves are heavily mortgaged and
many more will in the end be forced
to leave their homes after years of
toll and struggle and saving on the
part Of the farmer and his wife and
too often the children have been de-
prived Of proper educational oppor-
tunities. 81:
Til 1920 there were 6,44S,366 farms
in the United States. The farm lands
of this country are all too rapidly
| passing from the hands of real farm
( ers into the hands of landlords, land
Spectators or are being held as an
investment and in the future win be
operated by tenants or managers
largely foreigners. Should that time
come it will be a most unfortunate
day for this nation. Y .sl.5
The farmers are reported to be
carrying mortgage Indebtedness Of
not less than $4,000, ,000, 900 on their
farms which they are paying from Z
to 10 per cent and often with bonus
to say nothing of their other obliga-
tions and chattel mortgages which it
is estimated are at least s., ,000, ,000,-
900 additional. This money can and
should be had at per cent or a saw
ing of more than one-half in the in
terest charges or not less than $780,
000, 900 annually on the farm mort
cages alone. = 6s>s5.. ss5 Id. =
q 1t is said there are outstanding not
less than $40, ,O00, 100000 of tax ex-
empt Government bonds and fully
$4,000, 100000 Of state, county and
municipal tax exempt bonds. The gov
ernment nor the state receives no
revenues from any Of this 100000
0O0, 1000 but the burden of taxation is
thrown on other property. The farm
er feels the burden of the rapidly in
creasing taxes on his farm and every
time he makes an improvement by
adding new buildings or equipment he
is penalized by more taxation while
the man who holds land for increase
In value or to speculate on is exempt
of these added taxes. This is not fair
nor does it encourage Improvements
and the unused land rises in value out
Of all proportion. %sss. {. 81 lsaaa
The remedy for this bad condition
lies in the direction North Dakota has
taken, namely, to shift the taxes from
the products of the farmers labor to
the land value itself. That lis, there
should be no taxes on crops, live stock,
buildings or other improvements on
the land. Such course would at once
stop land speculation and make it
easier for farmers to acquire a farm,
for holding land out Of production
would no longer be profitable since
T the land would have to absorb the
large part of the taxes as well as OF
every improvement on the farm. The
foregoing is one of several steps to
be taken in the interest of bettering
the country but it is an important
step. 1t is worth while to study the
problem of taxation and so benefit
agriculture. True, the land holder and
the speculator will protest most Wig
orously but why should they dictate
the policy that shall further debase
agriculture and drag down our na-
tion }5y . s.S
Gold is not, never has been and
never can be the real basis Of credit
The real basis Of credit is value, moi
gold. In other words tangible pro-
perty. The United States now has up.
proximately one-haf of all the worlds
gold money. The law Of supply and
demand is almost completely nullified
with our granaries and warehouses
fairly bnlgi,lg with products and
European cotntries are demanding 81
the products We now have in excess
of our own want, hut Europe cannoi
buy and we cannot sell. What ID th1
cause of all this? Contraction d
credit and yet there Is no lack d
money still there Is almost no credil
available with which to transact bust;
mess hence commerce ii stiied, fo1
commerce is done almost wholly or
credit, not on money. That Is, for eacl
dollar Of money available in norma
\ times there are nearly 100 of credi1
i dollars available. That ID under nor
Il NAL conditions there are III circulation
about $15, 900, 900 Of real dollars AM
about ST ,5OO, ,000, 900 credit dollars nov
largely withdrawn but the gold, "a
\ called real money Is still available mi
\ vet the dicate that gold IS not no
4 never has been and never will be thl
/ basis Of credit and the sooner we -
Il cognize this fact The sooner win thi
nation md other nations On q soli'
financial basis
Supposing the q. s. should acquir
Il of the world stock OF gold, more thal
n 81, ,O00, ,00O, 900, what good would II d
/ Ius for bullion Tor commercial purpose
GRADE LOI
8