The Bismarck tribune., 1924-12-04
PROSPERITY IN
COUNTRY SEEN
BY MR.. MELLON
Secretary of the Treasury, in
Annual Report, Expresses
Confidence
OUT OF WAR STAGE
United States, He Says, Is the
First Country to Com
plete Transition

aSnlnEtOn, DcC. Il ears Ol
prosperous and healthy conditions
such as succeeded the election of
1885, were forecast for the United
States by Secretary Mellon in the
annual report of the Treasury sent
to Congress today.
The Secrctary's views are based
he said, on the reputation Of "vari-
Gus theories inconsistent with eco
nomic laws" and the Endorsement of
Il program Of constructive handling
OF government affairs given in the
last election. He counselled the
nation, however, to approach its
problems with intelligence that the
progress made and the ground work
laid in the last four years may not
come to naught.
The United States, he asserted,
was the first world power to come
through the postwar transition
stage successfully and the first to
be able to present "reasonable as
surance" that "true progress" will
continue within it's borders. Mr.. Mel
lon urged perpetuation of the pro-
gram adopted by "the great majority
o. our people in the last election"
which he interpreted as one of "hard
work, economy and sound policies
Transition Told
In general economic conditions as
well as in the domain of federal
fiscal operations, Mr.. Mellon re-
counted how complete the transition
had been. He said that in the last
four years the per capita tax on cit
izcns Of the United States had been
cut from $5l to $27, or exactly one
half; public expenditures which in
| only $3,5OO.O0O,OoO in the fiscal year
which ended last July /, and the
complete disorganization" of the
economic structure by the collapse
of prices in 1920 and 1921 has been
rectified.
The lifting of the tax burden, al
! though slight as the decrease has
been, has done much for business,
Mr.. Mellon said, and he expressed
the hope that more could be done
soon. He said he desired tax re-
form as we'll as tax reduction and
warned against using the field Of
! taxation as field "for socialistic
! experiment or as club to punish
success" If this were done, he said,
the conditions Of few years ago
may come back.
In Sound Position
"While it has taken time for this
situation completely to remedy it.
SELF" the secretary continued, "the
adjustment has now been made, and
both banking and business conditions
are in thoroughly sound position.
Prices have been comparatively sta
bic for two or three years, produc-
tion has increased twenty or twenty
| five percent, bank debts, fifteen or
twenty per cent, and employment
eight or ten percent. Interest and
discount rates, as rule, have been
reduced more than half. Discount
rates of the Federal Reserve Bank
Of New York, for example, have been
IcuuCcu lIUHi oCNCu anu VIC Hol1 "
three and one half percent. Bank
deposits have increased six or eight
billion dollars from the low point
of 1921, or over twenty percent.
"At the same time reserves are
unusually high, frozen loans have
been almost completely liquidated
and the country's banking and credit
structure was never in a stronger
position and more able to support
continued business and industrial
expansion. The traffic handled by
the railroads continues at almost
record levels, and many roads are
returning to dividend paying basis
after years Of financial difficulties
and struggles to build up road and
equipment to basis Of efficiency.
The building and automotive indus
tries are prosperous and in turn are
big factors in maintaining the coun-
try's general prosperity.
Agriculture Stronger
"While recovery of agriculture
has been slow, it has been substan-
tial and today due largely to chang
ing conditions in world crops and
world markets, faces a new era. The
maladjustmcnt between agriculture
and other industries has been remov-
ed, and the farmer is nearly restored
t. his proper status in the economic
system"
But American commerce and in
dustry must maintain an anchor to
the windward in future world trade,
the Secretary said, for, as America
has recovered, SO now Europe is be-
coming stabilized. Mr.. Mellon gave
credit to the Dawes reparation plan
as providing a foundation of eco
nomic recovery there. While declar-
ing improved conditions in Europe
meant benefits to the United States,
Mr. Mellon argued that cheaper pro-
duction and lower living standards
abroad would force closer calculation
here in world market selling.
The population of Rumania has
increased by 100000 since 1922,
] bringing it TO l3,600,O00.