The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-01-31
NEWSPAPERS OPINIONS
THE FARMERS BURDEN

THE FARMERS BURDEN
There is little question that the American farmer
is under heavy load. His burden consists mainly
of debts and taxes, both of which not only have
increased in recent years, but also have become
proportionately harder to pay farm prices fell.
1t may surprise some to learn that the taxes are
more of a weight than the interest on debts, yet
the department of agriculture found in 1881 that
taxes took about II per cent of gross farm income
in the United States, while interest on mortgages
took eight per cent-though payment on principal
might raise this to the size of the tax figure CT
more Both percentages are more than double
those of decade or two ago. But rural tax reduc-
ton is almost wholly problem for local-state
and county-governments debt relief is a subject
the national government can do something about,
and is increasingly expected to do something
about if congressional discussions are an index.
In general there are three ways of attempting
to lift or ease the burden. The monetary imitation
method urgently put forward may be likened to
dynamite. It's proponents would employ it to SIM
ply blast the load into the air. Granting that dy-
Mantle may have it's uses in removing old stumps,
there is uncertainty in this case as to whether the
blast would accomplish the price-lifting purpose
desired, there is a probability of destroying work
is great financial risk to innocent bystanders if not
to the farmer himself.
The second method, that of boItering up farm
prices, typifed in the domestic allotment plan may
be lkened to putting jack under the rock to help
the farmer lift it. The plea for lacking up farm
prices to approach level with industrial prices has
much justification if jack be found that will
stand up under the strain. If the difficulties Of
administering the allotment plan can be ironed out
and its application limited to products it fits, this
project may have genuine value, at least as an
emergency measure, during whatever period of
years it takes for trade to find world basis again.
The third, most obvious and under today's cir
cumstances probably the most practicable approach
to the problem, is to take some of the weight off
the burden itself Among the many bills before con-
greSs for farm debt relief possibly most attention
will center on that just introduced by Senator JOS
T. Robinson of Arkansas to extend 81, 500, 900 900
Of government credit into the farm mortgage field
through emergency agricultural refnance cor
pOratiOn and the federal land banks
Under plan of this sort properly carried out,
the money would not be used to create new farm
debts, but to convert part of the existing $780,
900 to $1,000 900, 900 of farm indebtedness
from loans carrying interest of per cent or above
into loans carrying from 5 to per cent nteres5.
The land banks would lend the farmer up to Is
per cent of the present value of his farm and he
would have that much with which to pay off his
creditors Holders of thousands of farm mortgages
no doubt would consider themselves we'll off to get
this much cash for their claims An alternative
method is proposed whereby the government would
guarantee some such portion of mortgage where
the MORTGAGE would make concessions in line with
the farmers ability to pay.
Mr.. Walter Lippman appropriately points out in
opposition to the arguments for relief of debtors
by imitation of money that there is no sharp line
between debtor and creditor classes in American
society, that millions both debtors and creditors
the family in mortgaged house has, neverthe-
less, savings account and depends fixed dol
lar wage, and But the nearly one-half of
Americas farmers who have mortgages on their
farms come pretty close to constituting an exclu-
sivey debtor population. What with low prices and
rural bank failures their savings are pretty near
nil.
| But the saving of these people from restitution
agrarian revolt may be discounted but should not
| be wholly dsregarded. For it is only justice that
the farm debtor should receive some relief from
obligations mat have doubled or quadrupled since
he contracted them. An increasing sentiment will
support government action to bring about an cas-
Monitor.