Evening Republican, Volume 22, Number 295, Rensselaer, Jasper County, 9 December 1919 — HUGHES SAYS AID TO FARMING LEGAL [ARTICLE]

HUGHES SAYS AID TO FARMING LEGAL

Declares it Duty of Government to Protect Nation’s Food Supply. TAX EXEMPTION NECESSARY Former Justice of U. S. Supreme Court Makes Powerful Argument Defending Constitutionality of Federal Farm Loan Act. That the general welfare of the nation demands \that the government shall aid and protect agriculture by pfnatever means and to whatever extent may be necessary to safeguard tnk nation’s food supply, even thoughzthose means of aid and protection sliall include the appropriation of government money and the extending of government credit, or even the lending of government moneys, was the contention of former Justice of the Supreme Court Charles Evans Hughes, when he appeared in the federal court at Kansas City as one of the attorneys to defend the constitutional--Ity of the federal farm loan act. Government's Duty to Aid Farming. Mr. Hughes pointed out that from the earliest history of this nation there has been a continuous disbursement of public money in aid of agricultural development. He show&d how, while congress had not attempted to operate farms and had not stepped into any state to legislate as to the use of farm lands, still congress bad provided information, had dissemiated instructions, had distributed seeds, and had supported in every manner which was deemed wise, the great national interest of agriculture. He told how the government had sought to protect agriculture from great pests such as the gypsy moth, the brown-tail moth, the boll weevil, or even the grasshopperall for the general welfare. He showed how the government had provided for the distribution of seeds of new and useful varieties and how it had provided for the introduction and protection of insectivorous birds and how It had provided also for the establishment and maintenance of laborstories for experiments In agricultural chemistry. He told how later the bureau of animal husbandry was established to study and to dlsseminate information as to the proper breeding and as to the diseases of’domestic animals. He told later of how the weather bureau was taken away from the army and put in charge of the department of agriculture so that the farmers and all interested in the production and distribution of food might have comprehensive Information as to rainfall and weather prognostications. Protecting Nation’s Food Supply. From all this he reasoned that the government recognized It as a proper function of government to encourage, aid find protect agriculture, and he held that it was the duty of the government to guard against any shortage in the food supply of the nation. There: fore, he said, when this great underlying Industry stood in need of funds for operation or for development, it was clearly the duty of the government and clearly within Its rightful powers to provide the means by which the necessary funds could'be placed at the disposal of I<lose engaged in the cultivation of -the-soil.---“Here is a great activity,” he said, “which has received financial support from the foundation of the government. 1 “Our position Is that the federal government was competent in the application of money and investment of moneys in the stock of the federal land banks, to organize these banks and to Invest moneys In their stock, to borrow money, and to loan money for these purposes, and to provide for the issue of bonds for these purposes. Being competent to do this, the govern-, ment could organize whatever agencies were necessary and convenient and could authorize this thing for the government.” —Bonds Had to Be Exempt. Mr. Hughes contended that as congress could create the land banks as corporations and clothe them with power to lend money and to Issue bonds, the government could, of course, protect these corporations and these bonds Issued by them from discussion or impairment by any action. He said' that, “as the power to tax was the power to destroy,” the government, of course, had the right to exempt, these bonds from taxation. And this rule, he quid, had particular force in this case. As the bonds of these banks had to be sold In competition with other tax-exempt securities, and that without their ‘being tax exempt money could not be secured for the fanners at low rates of Interest. To help the farmer the rate had to be low, and to get the low rate the bonds had to be exempt from'taxes.