The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1923-01-05

pay is supposed to be measured by
| the value OF tho property he owns.
| But the value of his property does
not always measure his ability TO
pay, for he may have considerable
, unproductiye property or because OF
! adverse business conditions or other
misfortune he MAY have very little
| Income out Of which he can>pa a
tax"
But the burden of an income tax
Is entirely different for If there is
no income, thsre is no tax to pay. Ii
| he has an inC2me, the citizen can
| afford TO pay some tax; ii he has a
considerable income. he can afford
to pay a considerable tax A in :
come tax, with proper exemptions,
takes only from the citizens sur
plus and not from his necessities"
Laws Commended
Governor Prers also explained
$ ssion aud the previous session,
the following laws: y
Rural Credits; Cooperative
marketing and its needs; st. LaNr-
ence deep waterway; Taxes and the
cause OF tax burdens; Taxation o.
royalties on iron ore"
! Governor PreuS called the legis
lators' attention 10 the fact that the
rural credit amendment was passed
| by larger vote at the last election
than ever registered on any. consti-
tutional provision and said that it
is the peoples mandate that this
| session enact into a law rural
credits system.
He termed this measure as one
| the greatest of importance and that
I m hgiy Vy-fe, 1.Nr., IN, ssr,rr
such a law that the welfare of the
! farmers be safeguarded. He eau
tened them that a good substan
ttal and efficient rural credits
law be enacted as a loosely drawn
statute might result in that the
state rural credits sytem would be-
come the owner OF a large number
Of farms.
"A system must be inaugurated
which will be helpful in building up
| splendid farming communities il
this wonderful state, law in my
opinion which should be confined to
actual farmers. There is no NOR
al responsibility upon the state to
aid those who are spectators in
lands.
Farmers Credits
above all, it must be borne in
mind that the farm on which farm
ers' loans are placed. which will be-
come underlying security for bonds,
| must in all cases offer ample secur-
ity and provide sufficiently large
margin to reduce the possibility of
loss TO a minimum"
| Governor Preus urged that TO
| maintain the states NpreSent high
credit standing, every possible safe
guard must be thrown around the
administration OF any law the legis-
lature may enact.
| The governor commended the ac-
| ton of the session of the legislature
| two years ago for enacting the agri-
cultural program of cooperative
marketing into law, but said that
these laws should be amended so as
10 give them a BROADER scope.
He cited the various agencies es =
tabIshed under these laws and ex-
planned the beneficial functioning
and advantageous results secured
for the farmer.
The cooperative policy of mar
keting grain must be adopted.
wherever an actual saving to the
producers can be effected. They
must follow their grain to ex-
port or to mills. Furthermore,
grain stored in bonded elevators or
warehouses ought by a rigid en-
forcement OF existing laws, be made
liquid asset to the farmer by the
proper recognition by the state of
some form of warehouse receipt
which becomes negotiable in the
state"
For Cooperation Markets
An ordinary elevator ticket. he
said, is merely a local evidence of
movement of grain and Is not Ii
quid. This negotiable receipt would,
Of course, not represent the full
value or market value of the grain.
Because of the beneficial results
which have been returned to the
agricultural producers OF the state
through their own cooperative
able to still further amend the CO.
operative law to enable consumers
organizations such as Unions, for
instance, organize CO. operatively
under its provisions, and thereby to
meet the producers element OF the
state in the effort to diminish the
spread between the prices"
Governor Preus cited the heavy
losses OF potatoes and the i'm
mense injuries caused grain be-
cause of lack OF shipping facilities
as concrete evidence or the need OF
the st. Lawrence deep waterway.
The war with its consequent
growth in federal expenditures, NOT
only increased the burden Of the
federal tax, but, both directly and
indirectly. added to the burden of
state and local taxes, Governor
Preus said in discussing the case of
growing tax burdens.
A second cause of growing tax
burdens he continued, is found in
the expansion of government func-
tons in recent years. There is an
ever increasing tendency in recent
years to transfer the cost of many
state activities of a semi private
character from the single individ
ual to the collective individual call
ed government"
Advised Street Economy. r..
This expansion of governmental
function means increased public
expenditures and increased public
Expenditures mean increased taxes.
Governor Preus cited increases in
educational levies- road taxes, and
local and state taxes.
AS result Of these increased
burdens he advised strict economy
and suggested there be no revenue
fund tax. He amplified his state
ment with information that he will
give more detailed advice relative
| to the states finances at later