Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1923-05-10
NOrdman Sees Farmer
Benefits in New Bill
GRIMsTAD BILL WILL AID IN
MARKETING PROBLEMS OF
THE FARMER


fact that the Grimstad Bill now pend
ing in the Legislature is not primari-
ly a revenue measure but rather a
measure designed to remedy condi-
tions in agriculture which the market
ing law alone cannot cure.
The law under which the Depart,
ment of Markets is operating, startes
Mr.. Nordman, has been effective in
eliminating the mechanical defects of
our system of distribution. 1t has
stabilized to a large extent the sale
of a number Of agricultural commodi-
ties and it has eliminated in many in
stances the immediate causes of the
waste and nefficiency of our system
of marketing. The program of stan
dardization and inspection, Of co-opera
tive marketing and of elimination of
unfair practices of trade has had the
effect of materially improving the
quality and reputation of Wisconsin's
agricultural products. The Depart
ment of Markets is endeavoring to
still further improve the mechanics of
distribution so as to make it as nearly
perfect as possible.
With all these accomplishments,
however, the attainment of the real
object of the Legislature of four years
ago. namely more profitable agricul-
ture, has not made the desired pro-
gress and will not until supplementary
steps are taken to remedy present con
ditions under which the demand for
farm products is below the supply.
No marketing legislation, states Mr.
Nordman, will be completely effective
unless it eliminates the causes of the
low buying ability of the consumer
which is chiefly responsible for the
insufficient demand for the products
of farm and factory. These causes,
however, lie deeper than the purely
mechanical ones referred to above.
They deal with the low purchasing
power of the consumer which is the
result of a condition over which the
Department of Markets has no con
troll, namely the existence of certain
privileged groups who, through ser
vice, contribute to the production Of
wealth in all it's forms and it is this
condition that the Grimstad Bill
seeks to gradually eliminate by
breaking ground towards the elimi-
nation of the unearned incomes re
sulting, among others, from monopol-
istic holdings of natural resources.
The Grimstad bill constitutes an at
tempt to solve the problem of poor
markets in fundamental way by
trying to lift the burden of taxation
off the products Of industry and put
ting them on unearned incomes. In
other words it is plan of breaking
down the shackles with which modern
industry is handicapped by making
the receivers of unearned incomes
bear larger share Of government ex-
pense. Under present conditions real
producers are burdened in two ways;
first, by having to pay toll to special
privilege and, second, by having to
pay an undue proportion of the reven-
ue needed for the support of the gov
eminent. The purchasing power of
such producers is reduced accordingly
and they are, therefore, not in posi-
ton to make an effective demand for
marketable commodities.
Production and exchange, states Mr.
Nordman, cannot function normally un
less the producers can buy back that
which they produce. In order to do
that, however, they must receive in
wages, salaries and incomes the
equivalent of their labor or services.
Anything that through initiation Of
prices reduces their wages leaves
them with insufficient means to make
an effective demand for their share of
production. The most visible and most
easily removed causes of initiation are
the inflated land values which result
from monopolistic holdings of land
both in the city and in the country.
The holders of such land receive in
comes which are not due to any work
on their part but which come from
the pockets of the real producers.
Millions of dollars are annually sub
tracted in this manner from the right
full earnings of such producers with
the result that the markets of the
country suffer from lack of ability on
the part of the mass OF wage-earners
to buy to the extent they would be
able to were they to receive the full
equivalent of their share in produc-
ton The Grimstad bill, by taxing
such unearned incomes more will re-
duce taxes on products of labor and
industry. This will necessarily reduce
the cost of articles Of production and
consumption. A tax on the products of
industry is always shifted on to the
consumer. Taxes on industry in
crease, therefore, the prices of every
thing that the farmer and the working
man buy. Taxes on industry make the
cost of production and of living higher
than it should be- In this connection
it must be noted that one of the funda