Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1934-02-22
PLANNING AHEAD


preston means a planned society
and better distribution of wealth.
When depressions come some folks
naturally must seek protection from
the government. When their own re-
sources are depleted, no work is TO
be secured, and aid from relatives or
those nearest to them is no longer
for help. They seek government help.
That is one of the reasons taxes
do not go down in depression times.
Another reason is because some folks
are unable to pay their taxes. In
creased tax delinquency means that
much more to be paid by those who
are still paying. provided the same
amount of money is to be raised.
And in depression times the amount
of revenue required by the state and
other governmental subdivisions that
render direct or work relief is usually
greater than in normal times.
There must at all times be plan.
ming for the future, and so now is a
good time to think of future tax pro-
grams.
When depression hits us without
public funds laid aside for the rainy
day it shows lack of planning in the
past And history proves that de-
pressions have caught us unprepared.
Speaking in Minneapolis recently,
Governor Olson urged enactment of
an amendment to the city charter
permitting an extra tax levy of one
or two mills during prosperous years
in order to build up a reserve fund
to be used during times of emergency
for educational purposes alone.
AN adequate tax program to pre-
vent the distressing handicaps which
face public servants during depres-
sion periods is made doubly hard be-
cause it is the duty of the state to
attempt to cushion the fall of many
groups" the governor said. "The
Civil Works Administration program
is but one of many attempts
What Governor Olson said at the
school meeting concerning the build
ing up of reserves for school purposes,
is, of course. also fitting in many
other cases.
There is no reason why nearly
every township, village. city, school
district and state should be bonded.
If a $4,000 public building is to be
erected, or some other public project
causing a like expenditure is desired,
there should have been some money
laid aside for it. How many munich
palities have not bonded for the en-
tire $4,000 instead of waiting till
at least $4,000 or $4,000 had been
saved up for the project?
There are exceptions to all rules.
Urgent cases necessitate a bond is
sue and the project carried through
without having any reserve to
draw on.
Some folks may argue that it would
require too long a wait to raise in
tax money the $1,000 or the $4,000
for the $4,000 project.
Somebody-some corporation or
some individuals-had the money or
it could not have been borrowed by
the municipality for the bond issue.
Therefore if the taxing program is
not right, if the local municipality
cannot raise the money for required
local public projects without too much
of a burden on the local taxpayers
then the taxing program must be
changed.
The point that we wish to make
Is that we cannot borrow ourselves
into prosperity.
Conditions and prices must be such
that in normal times the municipal
tiles through the taxpayers are able
to lay aside something for the rainy
day or the lean years, and even builc
up funds for future improvements.
Interest rates, up to seven per cent
on farm mortgages, is ridiculous
When a farmer makes loan on hi.
farm at that rate he may as wei
give up for the hill is too steep
Paying such interest rates it Is quite
certain that he will be one Taxpayer
who cannot help build up any mum
cipal reserves, if indeed, he remains
a taxpayer at all.
Seven per cent interest rate OF
farm mortgages should certainly b.
a thing of the past. 1t belongs to tn
dark ages. And agents seeking ave
nues for money at such rates shoul'
be shown the door when he comes t.
the farmer.
The farmer may reason that he ha