Imperial Valley Press

-By RALPH H. TAYLOR

Executive Secretary, Agricultural Council of California

California's farm mortgage debt has been decreased nearly 14 per cent during the last five years and now stands at approximately $497,148,000.

Authority for that statement is M. R. Benedict, economic advisor of the California Farm Debt Adjustment commission.

But there are unhappy sides to the picture, too. The debt reduction (on farms) in California has been somewhat lower than that in the nation at large. And although farmer bankruptcies have shown a marked decline in the United States during the past year, California bankruptcies have increased.

California, according to Dr. Benedict, has a more difficult problem of adjustment than many other states in the nation. "And, in addition," he comments, "we may not have the same general national interest in these problems that we have had during recent years."

There are increasing indications that dependence (in meeting the debt problem) will have to be placed more largely on state activity and less on federal participation.

Pointing the problem, Dr. Benedict makes the following general comment:

"As citizens of the United States and as farmers, we are interested not only in the situation immediately ahead, but, in that which is likely to be with us five and ten years hence. We should, I think, be bearish on the upbuilding of debts.

"Agriculture, as well as other industries, has been carrying too large an obligation and paying out too much of its income in form of interest. There is serious danger that in the present situation, we are again building a very dangerous debt structure in a somewhat different form.

"Farm obligations as a whole are being worked down and the larger use of amortization procedures should enable us gradually to get onto a sounder foundation. Unfortunately, however, public debts at the same time have been increasing much more than farm obligations have been cut down. It would seem wholesome that we move more slowly, initiating new ventures more gradually if necessary and operating more largely on a pay-as-you-go program.

"It is only in this way that we can hope to meet future depressions or war situations without disaster."

Dr. Benedict's warning that public debts are increasing more rapidly than private debts are being reduced should be considered most seriously by farmers and all common property taxpayers.

At the General Election, a few back, a proposal appears on the ballot-the Garrison Revenue Bond act-which would have reduced the required vote for revenue bond issues from two-thirds to a bare majority.

True, the Garrison act was defeated by a decisive majority, but similar measures are liable to bob up in the period just ahead and agriculture should be prepared to combat any attempt to make it easier to get into debt, regardless of the excuse that may be offered.