The Bismarck tribune., 1933-01-03
Foreign Representatives
SMALL. SPENCER, BREWER
(Incorporated)
CHICAGO NEW YORK BOSTON
They Have the knowledge

lncOrpOrateu)
CHICAGO NEW YORK BOSTON
They Have the knowledge
No legislature in the history of
North Dakota has been better equip
ped 10 deal with q specific problem
than is the case with the present
group Of lawmakers and the state
farm loan issue.
This is because no group has better
understanding OF the effects of this
system than have the men who live
on the farmland the bulk Of our
1888 legislators are farmers.
The question Is presented peril
nently by the state governmental
survey commission, IL 1t comes up in
no other way, with the recommends
ton that the state rural credits sys-
tenn be abolished and liquidated or
, that further increase in the bonded
indebtedness Of the state be forbid
den by constitutional amendment.
This farmer dominated legislature
is best equipped to deal with the
matter because, if the system has
had evil effects, they have been felt
most keenly on the farm.
Every farmer knows. or can make
IN accurate guess at, the effect on
his own taxes of land foreclosures
by the Bank of North Dakota and
the state land department. It is not
an extreme view to state that this
system, designed to help the farmer,
now Is making it increasingly diff
cult for men who still own their land
to keep 1t.
Every time piece of land is placed
under foreclosure there is that much
-3e4 to pay state taxes. The bank
fails. to receive the anticipated reve-
nue. and . tax levy is necessary to
make up the deficit. This year the
sum levied was 100000 and ii the
entire project had been put in good
condition the amount would have
been three times that figure.
Farmers who still own their land
might be able to stand this pressure.
heavy Is it is. because city property
has to pay part Of this burden. But
that is only part-and the least
important part-of the dire results.
Where the shoe pinches hardest IS
at home. in the townships and school
districts.
AS land goes to foreclosure the
Bank OF North Dakota tries to make
it pay out by renting it, and quite
properly. But the land no longer
pays township or school taxes and
the renter Is liable to have fully as
many children as the farm owner.
In other words. foreclosure Of that
land does not reduce the burden
which the district must carry, it
merely places that burden upon fewer
farms.
In one Burleigh county township,
according to q man who lives In 1t,
at least six sections are under FORE
closure by state agencies. The school
expenses have not decreased but the
cost has been automatically redis-
tributed. AS . result, men still on
their own land find it increasingly
to stay there.
There may be several answers to
this question. One IS to have the
Bank Of North Dakota pay taxes on
land which Il has taken on fore
closure. It may be hard on the bank
but that is less Of an evil than to
create an impossible situation for the /
farmer, or to permit present condi-
lions to continue. This or some SIM
liar action should be taken at this
session.
II prohibition of further state bond
issues seems . long Jump from the
political psychology which has pre-
vailed in recent years. the remainder
of the problem can be permitted to
rest for while. There viii be no
more farm loans In the near future;
It is impossible to sell state bonds at
par and there seems no likelihood
hat they viii b IN strong demand
Turing the next few years.
Definite action may be distasteful
n view Of the political tradition Of
he party now controlling the legis-
ature. but that should be no bar to
;areful examination and analysis and
action. Fact = much
more important than fancy and no
me has . better right 70 stop .
than the men who started
Archaic and Silly
In Arizona g grand Jury recon-.