The Birmingham age-herald., 1920-10-20
BANKERS DISCUSS TAX REVISION AND
 A|DFOR FARMERS
Meredith's Plea for Square Deal for Farmers Opens Way for Discussion, But No
 Plan Reached
By Associated Pres.

Washington, October 19-Discussion of federal taxation revision and financial relief for the agricultural interests was pressed to the fore today before the con- vention of the American Bankers Asso- citation. Suggested changes in tax laws were indefinite, however, although some of them probably will be dealt with in resolutions to be considered Thursday.
 Secretary Merediths speech, pleading for a square deal for farmers by the banking interests, opened the way for several informal meetings by rural bank \ers, while none of them crystallized into a settled plan. Representatives of bank CTS in the cotton states decided upon a general mass meeting for tomorrow night at which their particular difficult ties and those of their producer-custom- CTS will be taken up.
 Robert Maddox, Atlanta banker, de- clared that the south was not nearly so broke as it has been made to appear.
 Banker and cotton producer alike should take an offensive rather than defensive stand, he said, and he predicted that the creation of a sentiment of optimism among them would greatly enhance cot ton values.
 MT. Maddox. however, said he appre- ciated the situation said to be facing inc cotton growers, and that there ap- peared to be no hope for help from the government. He suggested the formation of a great cotton export corporation pro-
 posed for the southern states by Cover nor Harding of the federal reserve board a year ago, saying this seemed to be the
 only practical solution.
 LAWS HAMPER BUSINESS The tax question came up in the sec tional meeting of the trust company bankers, where Lynn V. Dinkins Q, New Orleans, president of the group said the present tax laws placed 3 handicap on financial pioneering ano acted as a brake on business Tt IS, oi course necessary" MT. Dinkins said "to raise by taxation sufficient in come to pay the current expenses ol the government interest on the public debt and provide reasonable sinking fund to be used in hquidating the pub 1ic debt. There can be little discussion about that, but the sources from which this income Is derived is different subject.
 Tn the judgment of the most able men. the methods in use at present dis courage investment in new enterprises and therefore retards the development of our country. It discourages the ef- forts of adventurous men endowed witf initiative and self-reliance who woulc
  clined to undertake engagements which would result in an increase in the coun try's wealth. Of course, such under takings would pay in taxes portion o' their earnings, but the amount taker should be so graduated that consid' eration of it would not chill enthu' siasm."
 MT, Dinkins said he believed there was a widespread disposition among both bankers and merchants to coop q crate in an orderly liquidation of out standing credits" He believed that thu | bankers should not hesitate to increas, . their credit extension to solvent GUS toners when that method would, in tn, end, aid in reducing ultimately thu amount of funds tied up by completion of manufacturing programmes. If thu
 recent drop in prices was accepted a.
 forecast of what is in store for thu
 future. he said, ''the question of defla
 tion will be settled without very mucf
 advice or assistance from the bankers
 Savings bankers who met also as ;
 sectional group joined with member.
 of the section from New York in adopt
 ing a resolution urging changes in tn,
 savings bank laws of that state tt
 permit the free purchase of railroad
 securities by such banks.