The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1913-07-17

merce (sce President Taft's letter to
governors) despite the fact that there
Is no better security than farm lands.
And,
Whereas, We have in the state some
over 800. 600. 900 on deposit in our
banks, mostly the spare money of
farmers, and our banking laws en-
courage the sending out OF the state
for investment purposes, a large part
OF said deposits to reserve banks in
the east where 1t Is used for trust
exploitation In New York City and
abroad, to our d%etriment, and from
whence Il cannot be secured in time OF
need, as. for instance, during the
panic OF 1907. And,
Whereas, A large amount of the
money of our citizens is annually sent
east to pay for life insurance, and
there used by the men who control,
for the personal and speculative pur.
poses. including the development OF
foreign countries: And,
Whereas, We have in natural re-
sources, and intelligent, industrious
citizenship. one OF the best states in
the union, as proof OF which we offer
the fact, that for n number OF years
we have produced more wealth per
capita than any other state. We be.
lieve that II this surplus wealth, Great,
ed by our citizens. was retained in our
state for state development purposes,
that II would so a long way toward
solving our farm and industrial prob,
lens; Therefore,
Resolved. That good citizenship de.
mands that the resources of our state,
so far as practicable, be retained in
the state, for the development Of the
state. and 10 this end We recommend
the following:
(a) That We instruct our represen-
tatiyes in congress to use their best
endeavor TO amend our postal savings
bank laws so as to pay the depositor
interest at the rate of 3 per cent The
federal government. instead OF loan
ing to the national banks al 2la per
cent, loan to the several states at the
rate OF 81 per cent. The state in
turn to loan for state development
purposes, such as for cheaper trans
p~ortation facilities. and as with our
school fund. on our farm lands, at a
rate not to exceed 5 per cent; prefer.
ably Az per cent.
(b) That a state savings bank
should be organized with adequate
branches throughout the state: first,
as a safe depository for the savings OF
our people; and second. that the
money may be retained in the state
for state development purposes; the
rate Of interest to be paid depositors,
say 4 per cent; and the rate Of inter
est to be charged TO be not to exceed
5 per cent. Until such time as a
state savings bank a be organized,
the state might offer state warrants
for sale at 4 per cent in denomina-
tons OF S. and m~ultiples thereof, and
use proceeds as suggested for state
development purposes.
(c) That a state life insurance COM
pany be organized for the double pur.
pose of safe protection at the mini
mum of expense, and TO conserve the
reserve funds in the state for dexelop-
ment purposes.
New Zealand i~naugurated such a
system in 1870, and with a population
about one-third greater than South
Dakota, has an accumulated fund of
So. 500. 900, and an annual income OF
:, 750,000.
The foregoing do not by any means
exhaust N home resources but would.
We believe, be sufficient to supply all
reasonable present demands. They are
each and all in successful operation
in the lands of our competitors in the
worlds markets.
Note-To the foregoing 1 would now
ugges the following addition:
Whereas. The Owen. Glass. Wilson
currency bill now before congress does
not make any provision for the supply
of money or credit for agricultural
purposes at as low a rate Of interest
as 1t is supplied for industry and com
merce. and as ii is supplied by their
respective governments, ( our com.
peti,ors in the worlds markets;
! Therefore,
Resolved. That we urge our repre-.
s~entatiyes in congress 70 try to amend
such bin so as Z provide that the
! federal government shall loan to the
} several states for development pur.
! poses at the same rate of interest as
they propose to loan to the national
} hanks