The Mellette County pioneer. [volume] (Wood, Mellette County, S.D.) 19??-1971, 1924-02-08
OUR WASHINGTON LETTER


dent Coolidge's recent callers was Al.
win II. Sanders, of Chicago editor and
publisher of the Breeders Gazette
Sanders, who has been making, fol
some time, careful study Of condi
tions throughout the country, today
said:
1.-THE sorest spot on the map, finan.
cially speaking, is the northwest
more especially, the Dakotas, Mon
tana, Wyoming and adjacent areas
Attempted liquidation of loans pre-
cipitating bank failures because the
enforced disposition Of the collateral
security has not nettcd enough to
take up the obligation.
"The outpouring Of all classes OF
range cattle during the fall months
was too great for the central markets
to absorb at anything like normal
figures. There was no outlet for
breeding stock except through the
gates that led to the slaughtering
pens. This was n dcplorable situation
one sure to be reflected later on in
a cattle shortage from that region.
wheat growers were hard hit be-
cause Of high production costs and
low prices. In many cases the yield
per acre was too meagre to admit OF
profit. The Dakotas were Over-banked
for one tling-one bank to every 400
or 500 people tells its own story.
"The whole situation up there is
most distressing and | am glad to
note that President Coolidge is appar-
emily taking steps to extend govern
ment aid to the. remaining institutions
by some form of cooperation between
the Federal Reserve Bank Of that
district and other governmental agcn
cies. Unfortunately. aid comes toe
late to save many farmers and stock
men who have already been wiped out
but it will provide the necessary cap
ital for salvaging a lot of crippled
banks and some of their borrowers.
1.-THE corn belt states are in better
shape. Farmers who had avoided
land and other speculations and saved
some Of their war profits, are coming
through. They do not keep all their
eggs in one basket. Diversified farm
ing is the rule in the Middle West
Last years hog crop was marketed at
a fine profit and this year corn is
commanding a good price. Western
sheep and wool men have been en- Joy
ing real prosperity and should con
tinue to prosper unless the fear OF
tariff reduction sets them into "A
panic. 1t is certainly to be hoped
that this does not occur at this time
"The country seems slowly waking
up.to the fact that the most import
ant single feature of the tax-reduction
bill suggested by Secretary Mellon is
the sur-taX feature. Even the more
extreme advocation of high sur-taxes
are now conceding that the effort at
reaching the great incomes of the
wealthy classes through that means
has failed. President Coolidge is
standing firmly for 25 per cent as a
maximum. He is right in asserting
that any higher rate than that will
not call out and make available for
productive enterprises. On that basis
millions of money. now locked up in
tax-free bonds will be released to flow
into active business operations anc
farm mortgages. The rich will ther
begin to pay their share OF the IN
come tax, but at the rates proposes
by politicians, manuevering for sup
posed party advantage, they will pr~
fer to retain their municipal bonds
and the burden will thus be shifted tc
the backs of those less able to bear
it,
1t will thus be noted that the farm
editor has not been led astray by the
demagogues, who in their efforts here
III Washington to fool the people III
the matter of high sur-taxes which
would really place the greater burden
of taxation on persons with a small
income.