Twin-City herald. [volume] (Minneapolis, Minn.) 1927-1940, 1932-10-08
PROPOSED AMENDMENT NO. !.


now reads as follows:
"The credit of the state shall
never be given or loaned in aid
of any individual, association or
corporation, except as hereinafter
provided. Nor shall there be any
further issue of bonds denominar.
ed Minnesota State Railroad
Bonds, under what purports to be
an amendment to- section ten l10l
of article nine (s1 Of the Consti-
which is hereby expunged from
the Constitution, saving, excepting
and reserving to the state, never.
theless, all rights, remedies and
amendment. Provided. however,
that for the purpose of developing
the agricultural resources of the
state, the state may establish and
maintain system of rural credits
and thereby loan money and ex-
tend credit to the people of tho
state upon real estate security in
such manner and upon such terms
and conditions as may be pre-
scribed by law, and to issue and
negotiate bonds to provide money
to be so loaned. The limit of in
debtedness contained in section
of this article shall not apply to
the provisions of this section. and
the purposes for which the credit
of the state or the aforesaid NUM-
cipal subdivisions thereof may be
given or loaned as herein provided
are declared to be public pur-
poses"
If the proposed amendment is adopt
ed. the section will read as follows:
1.-THE credit Of the state shall
never be given or loaned in aid OF
any Individual, association or cor
poration, except as hereinafter
provided. Nor shall there be any
further issue of bonds denominat-
ed Minnesota State Railroad
Bonds, under what purports 10 he
an amendment to section ten t101
of article nine (9) of the Consti-
tuition, adopted April Is. 1858,
which is hereby expunged from
the Constitution, saving, except
nevertheless. all rights, remedies
and forfeitures accruing under
said amendment. Provided. how
ever, that for the purpose of de-
veloping the agricultural re-
sources of the state, the state may
establish and maintain a system
of rural credits and thereby loan
money and extend credit to the
people of the state upon real
estate security in such manner and
upon such terms and conditions as !,
may be prescribed by law. and 10
Issue and negotiate bonds to pro-
vide money to be so loaned The
limit of indebtedness contained in
apply to the provisions of this sec-
ton, and the purposes for which
the credit of the state or the afO. e.
said municipal subdivisions there
of may be given or loaned as
herein provided are declared to he
public purposes
The legislature may authorize
the taxing of any lands, title TO
which is acquired by the state
through the operation of such sys-
tenn OF rural credits, during the
period such lands are held by the
state. and for the assessment
thereof for benefits arising from
improvements. and may provide for
the payment of such taxes and
assessments out of the funds aris-
ing from the sale of such bonds
or the operation of such system of
rural credits. In lieu of such tax
alton the legislature may appro-
pirate out of such funas without
districts. towns. counties. cities,
villages and boroughs in which
such lands are located sums Of
money not exceeding the amounts
which would have been realized
by such governmental subdivisions
from the assessments against or
taxation of such lands II private
ly owned"
The Purpose Of the Proposed Amendment
partment of Rural Credit the state OF
Minnesota has acquired title TO large
amount of Improved farm lands. Prop
erty owned by the state is not subject
to taxation. The purpose Of this pro.
posed amendment Is TO give the iegis.
lature constitutional authority to sub.
ject lands acquired through the oper.
alton of the system Of rural credits to
taxation and the payment OF assess
ments for improvements, and TO provide
-
paid out OF funds arising from the sale
of bonds or the operation Of such sys-
tenn Of rural credits. 1t Is further In
tended to permit the 'egisIature to ap.
discrimination, to all the school dis
trlcts, towns, counties, cities, villages
and boroughs Of the state in which such
lands are located, sums Of money not
exceeding the amounts which would
have been realized by such govern.
mental subdivisions from the assessments
against or taxation Of such lands II prl-
vateIy owned.
The Effect Of the Proposed Amendment
II adopted, the proposed amendment
will enable the legislature, In its dIsere-
ton, to subject real estate acquired by
the state through the operation OF the
system of rural credits to taxation and
the payment of assessments, the same
as lands privately owned. The Iegisla-
ture may provide that such taxes and
assessments be paid from the rural
credit funds, or Il may appropriate
from such funds TO the school districts,
towns. counties, cities, villages and
boroushs of the state in which such
lands are located without discrlmIna-
ton, an amount not exceeding what
would have been realized by these goy-
ernmentai subdivisions from assessments
against or taxation Of such lands " prt.
vateiy owned.
The ballot used at the election
should have printed thereon the fol-
lowing: ~
Fourth:
TAXATION or RURAL CREDITS
LANDS sa s..s.,
Amendment to section 10 OF arr.
ticle of the constitution of the
State of Minnesota, to authorize
the taxing of lands acquired by
the state through the operation Of
the system of rural credits and
the appropriation of moneys from
the funds of the Department Of.