Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1923-02-22
Propose Land Taxes to
Better Farm Marketing
COM. OF MARKETS STATES BILL
IMPORTANT STEP TOWARD
MARKETING PROBLEM


TODAY. Edward Nordman, Commission
er of Markets, states that, in his opin
ion. the land values taxation bill in
troduced by Assemblyman Grimstad
at the request of the Department OF
Markets and which puts shrtax of
1 per cent on all holdings o. land
above $4,000 while exempting soil
fertility and improvements from the
surtax, is the most important step
taken so FAR towards the solution of
The marketing problem. 1t constitu-
ties an entering wedge to policy that
looks forward tow irds fundamental
solution Of the question Of good mar
kets.
What makes the problem of good
markets so complicated, states Mr..
Nordman, is that every ste9, every
change for the etter in the field OF
marketing of farm products anG manu-
featured commodities is intimately
connected and directly influenced by
the gene raj ecoro,n'C conditions pre-
vailing in the country. A low earn
ing power of the general population,
the absence of opportunities for pro
ducers to earn in proportion to the
worth of their services, anc the num-
crous obstacles that interfere with
tho free play of the law of supply
and demand exert a bad influence on
marketing conditions. Investigations
have shown that the farmer cannot
hope to obtain good markets until
these conditions are improved and
until the obstacles that interfere with
the free operation of the law of supply
and demand are removed.
The most. powerful of these obstac-
les, in the opinion of Mr. Nordman,
is the unjust and unfair remunera-
ton of producers for their services
which is characteristic of the present
economic system 1t curtails the de-
mand for the products of farm and
factory, gluts the markets and results
i'll periodical business and industrial
depressions. The primary cause of
this situation is that under present
economic conditions some are in a
position to extract, through monopoly
and speculation. more than they are
entitled to at the expense of the great
mass of producers.
Thus, monopoly of and speculation
in agricultural land initiate land values
and increase the farmers cost of
production. These inflated values,
moreover, place a barrier between the
land and the man of small means
with the result that men are kept
away from farming and are crowded
into industries. This creates an over
supply of labor which reduced wages,
creates unemployment, reduces pur-
chasing power and so, of course, cur
tails the farmers best markets. The
Grimstad Bill, by taxing the monopo
lies of natural resources, looks for
ward towards breaking up monopoly
and speculation in land and other
natural resources. It's object is to
open up opportunities to munerative
activities. It's ultimate purposes is to
make taxation operate as a balance
wheel that will distribute labor and
just compensation for their services.
This will naturally increases their pur
chasing power thus benefiting the
farmer, the manufacturer and all the
other producing groups of society. 1t
must be noted, however, that legisla-
ton of which the Grimstad bill is
typical will not, by making land ac-
cessible, necessarily increase the mum
Der of people engaged in farming 1t
will simply keep in reserve for the
working man of the city an outlet to-
ward which he may turn in case of
unfavorable conditions in unemploy-
ment This will endow him with a
bargaining power equal to that of
the employer and compel the latter
to pay fair and just wages. The tax
ing of monopolies of natural resources
will, moreover, relieve agriculture
from a part of the burden of taxation
Tax on industry is a tax on consump-
ton. Reducing such tax will tend to
decrease the prices for the supplies
which the farmer buys and reduce
proportionately his cost of production
The current opinion that a bill of
this character will fall heavily on the
average working farmer, continues
Mr.. Nordman, is without foundation.
Data on file in the Department of
Markets show that the average work
ing farmer will be exempt from the
surtax imposed by the Grimstad Bill
and that it will fall entirely upon land
values concentrated in our large
cities and on the large holdings of
agricultural land, waterpowers and
mining properties. The placing of the
1 percent surtax on the value of these
holdings will result in reducing the
burden of taxation now carried by
business men, home owners and work
ing farmers.
In the past, concludes Mr.. Nordman
all attempts to solve the marketing
problem have been directed towards