The Monmouth inquirer., 1920-10-28
help The FARMER
AND CUT THE TAX
Bankers Are Told Prime Needs
of Country in the Task Of
Business Reconstruction.
ECONOMY BEST WATcHWoRD.
Secretary Meredith Stresses Need Of
Aiding Young Farmer and PIac-
ing Capital in Productive
Channels.

Washington Discussion of federal
taxation revision and financial relief
for the agricultural interests was
pressed to the fore before the conven-
tion of the American Bankers Asso-
citation.
Secretary Meredith's speech pleading
for square deal for farmers by the
banking interests opened the way for
several informal meetings by rural
bankers. While none of these crystal
lized into a settled plan, representa-
tiVes of bankers in the cotton. states
decided upon general mass meeting
at which their particular difficulties
and those of their producer-cu
will be taken up.
Robert Maddox. Atlanta banker de-
clared that the south was not NEARLY
so broke as it has been made to ap-
pear" Banker and cotton producer
alike should take an offensive rather
than a defensive stand he said, and
he predicted that the creation of a
sentiment of optimism among them
would greatly enhance cotton values.
Mr.. Maddox, however, said he APP
preciated the situation said to be fac
Ing the cotton growers and that there
appeared to be no hope for help from
the government. He suggested the
formation of a great cotton export cor
poration proposed for the southern
states by Governor Harding of the
Federal Reserve Board a year ago.
saying this seemed to be the only prac-
teal solution.
The tax question came up in the sec
tional meeting of the trust company
bankers where Lynn V. Dinkins, New
Orleans, president of the group, said
he believed present fax laws placed
handicap on commercial pioneering
and acted as brake on business.
"It is, of course, necessary Mr..
Dinllins said, "to raise by taxation suf-
ficient income to pay the current eX-
penses of the government, interest on
the public debt and provide, rea-
sonable sinking fund to be used in
liquidating the public debt. There can
be little discussion about that, but the
sources from which this income is de-
rived is different subject.
''In the judgment of the most able
men, the method in use at present dis
courages investment in new enter
prises and therefore retards the de-
velopment of our country. 1t discour
ages the efforts of adventurous men
endowed with initiative and self-re-
lance who would otherwise and un-
der other conditions De inclined to un-
dertake engagements which would re-
suit in an increase in the country's
wealth. OF course, such undertakings
would pay in taxes a portion of their
earnings, but the amount taken should
be so graduated that consideration of
it would not chill enthusiasm"
Mr.. Dinkins said he believed there
was a widespread disposition among
both bankers and merchants to coop
crate in an orderly liquidation of out
standing credits. He believed that the
bankers should not hesitate to increase
their credit extension to solvent Gus
toners when that method would, in
the end, aid in reducing ultimately the
amount of funds tied up by compile
ton of manufacturing programs.
'If the recent drop in prices was ac-
cepted as forecast of what is in
store for the future" he said, 'the
question of defiation will be settled
without very much advice or assistance
from the bankers"