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Show CHICKENS COME HOME TO ROOST The right of congress to exempt federal farm loan banks from taxation, taxa-tion, under tho federal farm loan act Is being disputed In the courts. Therefore federal farm "loan banks are unable to sell any bonds. They have applications for loans totaling $65,000,000 and the farmers need the money. It tax exempt bonds for purely private pri-vate purposes can be Issued. for the farmers by the samo authority they may be Issued for manufacturers or any other class of citizens who aro Just as hard pressed for money as the farmers. To furnish money for the federal . farm loan banks, pending decision of tho court as to the legality of thorn being tax exempt, It la now proposed that the U. S. treasury tako $200,-000,00.0 $200,-000,00.0 of he farm loan bonds. .Already fifteen billion dollars ot tax exempt securities have been Is-Bued Is-Bued In this country and absorbed by investors In order to escapo the ifavy surtax 'and lncomo tax. The U. S. treasury Is hard pressed for' money as It Is. . To buy these bonds It must uso tax money. That the farmers need government aid arises largely from the scarcity of capital for farm loans. This scarcity scar-city Is due to the scramble to buy tax exempt securities because the samo Income would be so heavily taxed If Invested' In private cntcrprlso or farm loans. Can tho government remedy tho situation by loaning tax-m tax-m on tax exempt securities when it must collect the taxes which It loans from some other over burdened taxpayer? tax-payer? The present situation Is tho outcome out-come ot taxing the earning power ot capital out of existence. The source ot revenue Is soon dried up. Capital may be confiscated by the government govern-ment nnd spent, and then there Is nothing left to tax or confiscate, em - |