The Winslow mail., 1923-01-12

W1OS advertising campaign lOT Iu6
purpose of bringing the resources of
Arizona to the attention of prOspec-
tive settlers and investors.
During the last few months several
hundred farmers in the Salt River
Valley have either had the mortgages
on their properties foreclosed or have
been obliged to execute deeds in order
to avoid foreclosure. This condition
is not conducive to the development
of the resources of the State of Ariz-
ona.
The depression in the farming dis
tricts was caused by conditions be-
yond the control of the farmers. The
bankers and others, upon whom the
farmers depended for credit, advised
the cultivation of certain crops.
/ When the market for these crops
failed, the farmers were left to carry
the DAD. AS a result of depressed
economic conditions and the deflated
market for agricultural products the
burden on the farmer is oppressive.
Taxes have become delinquent. In
many cases the time provided by law
has arrived when the county author
ltles must proceed to advertise the
property for sale to pay delinquent
/ taxes.
The fact that the farmers of the
State are undergoing such difficulties
is causing distress to business men
who have extended credits and con-
sequently find themselves unable to
pay their taxes, with the result that
ic h.
very embarrassing problem in getting
back to normal conditions.
| The provisions of law requiring in
terest, fees, penalties and costs to be
added to the amount due for delin-
quent taxes is a burden which, at this
time, is bearing heavily upon the citi-
zens of our State and is actively in
terfering with the successful conduct
of business affairs
| The total penalty provided by law
for tax delinquency amount to prac-
tlcalIy an interest rate of fourteen per
cent. If the taxpayer is forced to
borrow money at the rate of ten per
cent to pay these taxes it Isl burden
which would prove prohibitive even
in prosperous times.
In order to relieve the people from
the distressing conditions enumerated
| above and to enable them to pursue
their vocations without fear of the
| loss of their farms, ranches, homes
or business | recommend that the
time of payment of delinquent taxes
be extended for sufficient time to
permit the harvesting of at least one
or two crops, and that in addition anv
delinquent taxpayer who paws his
taxes within a reasonable time after
the next or succeeding harvest be ex-
empted from the interest, fees, pen
altles and costs now provided by law
to be collected for such delinquency.
Tax Anticipation Bonds.
The policy of financing government
expenditures by issuing tax anticipa-
tion bonds is bad in theory and wrong
as policy. So far as I have been
able to learn, it is j. system that is
not in wide use in the United States.
1t comes from the Old WorId-from
| bankrupt countries which are mort
gaging the future in order to live in
the present.
Plausible arguments may be advan-
ced in justification of the use of anti
| clpat1on bonds to meet emergency
requirements but I desire to impress
upon the members of the Legislature
that it is preferable, even though
there may be added interest, to fol-
low the policy which prevailed in the
past, of issuing State warrants.
! Tax anticipation bonds which are
sold through banking sysdicates on
| wall Street, or what typifies Wall
Street i'll other cities. means that the
interest on these bonds leaves the
State permanently, whereas interest
| paid on State warrants remains in
Arizona for reinvestment and the de-
velopment of Arizona enterprises.
| May | not suggest to the members
of the Legislature the imperative
necessity, if the resources of Arizona
are to be developed and the prosperi-
ty of the citizens of the State is to
be assured, that greater portion Of
the wealth produced in Arizona be
kept in Arizona. Tax anticipation
bonds-the Old World method of fin
ancing governments-shou not ap-
!
sound method of meeting our finan-
cial requirements.
Emergency Investigation Fund.
Several matters of Importance to
the State are now pending which may
become critical during the course of
the coming two years.
In order to cope with any situation
in this connection which may develop,
and be able to properly protect the
interests of the State, l deem it ad-
viSable to request the Legislature to
appropriate a sum of money sufficient
to enable the Governor to employ as
sistants for the purpose of investiga-
ton, securing of audits for engineer
ing work, and for the employment of
attorneys and clerical help.
l assure the members of the Legis-
lature that if it is necessary to spend
any of this money it will be done in
]