Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1931-11-05
OLSON OFFERS
FARM AID PLAN
Conference of Thirty Farm Leaders At
State Capitol Hears Governors
Address With Favor.


last week Governor Floyd B. Olson Of
fered a program of farm relief which
leaders present adopted almost with
out reservation. Governor Olson's adj
dress contained four proposals of
farm relief as follows:
Recommendation of adoption of a
graduated income tax in Minnesota to
lift part of the taxation burden from
real estate.
A reduction in the rate of taxation
on farm and homestead property.
A proposal to attempt to loan from
the government at low interest rate
with which state rural credit bureau
loans could be refnanced or new loans
made at lowered interest rates.
Creation of farm committee of rep
reSentatives to act in an advisory ca
pacity to the rural credit bureau.
About thirty representatives from
farm co-operatives and other organi-
cations throughout the state were
present and the governors plan was
adopted with only two reservations
coming from J. S. Jones, secretary of
the Minnesota Farm Bureau fedora
tion and w. S. Moscrip of Lake Elmo,
president of the Twin City Milk Pro-
ducers' association, who said that,
while they personally favored the
plan, they desired time to present it
to their organizations.
The Address.
Governor Olson's entire address be-
fore the conference follows:
We are gathered here today because
we believe that Agriculture is the
basic industry of the United States;
because we believe that because of
conditions over which he has NO con-
troll, the farmer is Disseminated
against under our economic system;
because we believe that just relief for
the farmer would help other people,
and because we desire by our CO.
operative effort to declare a position
with respect to the farmer, which may
be said to represent the sentiment of
a great majority of the farmers of
Minnesota, speaking through the Of
ficers of the farm organizations of
which they are members.
The buying power of food, which is
the vital necessity of life, determines
the genuine prosperity of nation
The people who live in cities are
therefore dependent for their prosper
ity largely upon the buying power of
the farmer. The farmer is the chief
supporter of the cities. When the
farmer receives a fair price for his
produce he buys extensively of the
products manufactured in the cities.
If his buying power is curtailed the
sale of city manufactured articles
drops off with consequent unemploy-
ment in the cities.
Farm.TOwn Population Reversed.
Thirty years ago 500 of the popu-
lation of the United States lived in
rural communities; 1910 lived in the
cities. Today that situation is almost
exactly reversed,-60% of the popu-
lation lives in the cities and 400 in
rural communities. The burden of
being the main support of the other
500 of our population, together with
the determinations to which the
farmer has been subjected, has been
a major contributing cause of our
present depression. The farmer has
been obliged to buy on closed mar
ket and sell on an open market be-
cause of the inequalities of the tariff
system, and otherwise. In times of
Initiation such as the period of the
War and thereafter, the selling price
of commodities produced by him was
regulated whereas the selling price
of commodities purchased by him was
not regulated. During the periods of
deflation following periods of infla-
ton he has felt the first and most
severe effects of such deflation.
Offers Farm Aid Suggestions.
There are two ways of helping the
farmer:
U BY reducing the cost of his OPP
GRAFTON and production.
(2) By regulating by law the prices
he receives for the basic commodities
he produces and by improving his
marketing conditions.
| shall not engage in a discussion
of methods of farming. There are
many others present who, if they de-
sire, are far more capable of discuss
ing that subject than l am.
Two major items of expense of op-
GRAFTON are taxes, and interest on bor-
rowed money. If the taxes paid by
the farmer, and the interest rate
charged him could be reduced a very
material benefit would accrue to him.
FavOrs Income Tax.
l shall first discuss the subject of
taxation-There are many inequalities
under our present tax system, and the
burden of taxation is unequally dis
tributed. The fairest form of tax
alton is an income tax because an
individual pays that tax upon the
basis of what he or she earns and is
permitted to enjoy by reason of the
protection of Government. There will
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