The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1928-11-09
DEAN Russell WOULD
CUT FARM TAXES

Philadelphia - (FP = Tax relief
for American farms, final abandon
ment of dreams of riches through
land speculation, and stopping of de-
velopment of new reclamation and
irrigation projects by the government
these were the remedies for the
farm colleges presented by Dean H.
l.. Russell Of the University of Wis
consin College of Agriculture to the
American Bankers Association con-
ventiOn. The bankers were discuss
ing the farm depression.
Russell said that henceforth the
American farmer must earn his live
lihood by hard w0rk-he must Sim
prove his labor income" since land
values will never return to the war
time levels that led hundreds of
thousands of farmers to borrow
money for the purchase of lands at
high prices. He saw no cure-all in
the McNary-Haugen or any other
marketing plan. The bankers APP
proved his Judgment.
Why bankers are concerned with
the farm depression was disclosed by
Russell when he said; "a larger and
larger proportion of increasing farm
Indebtedness has passed into the
hands of city people. The current
value of invested capital in Ameri-
can agriculture is almost SO billion
dollars, with but 80 billions actually
owned by the farm operators. Tween
ty-seven billions represents the fin
ancial stake that the outside public
now has in American farms. Prior
to the war initiation, in 1910, the es-
timated obligations of farmers in the
hands of the public was only 16
billion"
Laying down the rule that the
only sound basis of value is "sta-
bilized earning cap acity," Rus
sell said that farm land values were
probably now down to rock bottom
so that "In all probability there viii
never be another opportunity in ou
lifetime to buy land as cheaDlv as car
be done at present"
Yet he showed that the replace
ment of horses by tractors and othel
motor equipment has reduced the u.s.
of land for the production of feeC
I for horses by about 100000 acre
This means that the 100000 acre
must be cultivated for other crops 1
the taxes and other charges agalns
the land are to be paid. AS mor
machinery is being installed eacl
wear. and as the new harvesting com
hines have flooded the early market
decreasing the price of wheat, he OF
fered no hope of improvement in thu
I condition.
II Reef and other meats, and con
| densed milk, said Russell, are NO.
bringing high prices because there
q shortage of supply. Potatoes an
very low in price because the tarn
ere failed to heed the warnings
Il fbe government last spring agaln'
over-nlanting. The acreage was II
creased 100000 this year, producInn
. total crop in this country OF 400
nm 000 bushels. Had there been on
116 1000. 600 bushels, he asserted, u
farnoere would have received SlOu
O00.OOO more for the crop NO n
+;onal hoard could control productle
nv stabilizing acreage, ne SAID, !. y
- csuse they could not determine u
= weather conditions.
Americas total food supply Pr pr
duced in the last four years, Des
Russell declared, has been IA per &c
rraater than in the four years III
81 although the population lncrea
- +bis period has been only 2
oant Thus food production mas
c creased so per cent faster tna M p =
,,iofion yet there were l3,vUU,u
less acres under crop in 1870 enan
1919 ,I
Taxes on farm lands should
reduced, Russell concluded as o .ns;.
tIe fundamental measures for ren'
inc; inc the debt-ridden farming class
clarks Fork-High grade ore mt