duction of foodstuffs. If we take the case of a typical American farmer, whose capital is his land and equipment, and who is usually quite intelligent enough to study the news of the world’s grain markets with the same care as the grain-merchant or miller, we shall find him fully aware at seed-time that there is a heavy carry-over of oats, barley, corn and wheat, and fully aware, also, that at the ruling rate of wages his projected grain crop is likely to yield him less than it costs. Under parallel market conditions, a manufacturer would suspend operations, or vary his output; a silver miner would drift toward a gold camp; a copper producer would close down his mine and smelter; a financier would buy foreign bonds if local interest rates were too low, or if our offers of exemption were not sufficiently tempting; but we have our typical farmer safely pinned to his farm; and it is worth while for a moment to watch his struggles; for he has never dreamed that there was such a thing as exemption.
At first glance, it would appear that he, of all men, was most free to vary his output, or cease operations entirely and content himself with feeding his family. But he cannot do this; for, under our archaic system of taxing his equipment, effort and produce, he faces a burden the wealthy investor is often able to avoid—an annual capital tax. His only chance is to struggle on, hoping against hope that absolute disaster will overtake some competing grain area—and save him. He is obviously compelled to raise grain or hay, since this calls for the least hiring of labor and the least outlay of money. The isolated economic critic suggests gravely that he should diversify his crop under such circumstances; but the critic does not know that a crop of onions, celery, garlic or potatoes calls for the hazarding of an amount which is often far in excess of the improved value of the land. Such a critic might just as well talk of the advisability of a farmer in this position getting a limousine to save his children their three-mile trudge to their second-rate school. An onion crop, for example, which can well be grown on land assessed at $75 per acre, calls for a seasonal expenditure of $150 per acre, and this sum may be entirely lost if the weather is such that the plants go to seed. It is sheer mockery to talk of diversification and intensive culture. The real dilemma our typical farmer faces is due to the fact that he is the ultimate victim of nearly all our indirect taxation, and is also the victim of a direct annual property tax, based on his equipment, improvements, live-stock, crop and real estate, which is either already delinquent, and