Montgomery County sentinel., 1927-07-15
Serious Conditions In Many
Sections.

The serious condition existing in many
sections Of the country. more particularly
the agricultural districts, is reflected in
the annual report Of the Federal Reserve
Board for the calendar year 1925. copies
Of which have recently come from the
Government Printing Office.
The report shows that during last year,
the total number Of bank suspensions in
the country was 956. with deposits Of
approximately $275.000.000. These fe-
ures compare with 6l2 suspensions. with
deposits totaline approximately SIT S, ,000.-
600, for the calendar year 1925, and TIT
suspensions with deposits Of about $2l5.-
100000 for the calendar year 1924.
Thus there were 344 more bank suspen-
sions last year than during 1925. while the
deposits OF suspended banks were about
$l00,000.000 greater. The increase in
the number Of suspensions over 1924 was
almost 200, and the increase in deposits
OF suspended bank approximately $780,
100000.
The following paragraph. significant Of
the condition in the agricultural regions, is
taken from the Federal Reserve Board re-
port for 1925: Bank suspensions during
the year were chiefly in agricultural Sec
tions of the country and for the most part
in Iowa. South Dakota, Minnesota, North
Dakota Missouri, Kansas, Michigan, Texas.
4 Nd
Florida. These twelve states accounted for
about 80 per cent Of the total number Of
suspensions in the past year"
Eighty per cent OF the total number Of
failures is about 705 banks, so that
slightly more then 700 of the 956 banks
which suspended we're in the twelve states
above set out. All Of them are asricul-
tural states. and the high mortality rate
among financial institutions In these farm
ing states reflects the condition of the
agricultural industry. These figures are q
terrific indictment Of federal administra-
tion which has not merely failed 10 de-
velope helpful policy toward agriculture
but has gone to the extent Of defeating
legislative policy which the best minds
among the farmers themselves believed
would be helpful and insisted be adopted
Contrasted with the conditions In the
agricultural States is the high degree of
prosperity which certain tariff-favored cor
porate interests have enjoyed. particularly
the Steel Corporation. the Mellon alumi-
mum trust and the glass trust, in which the
family of Secretary Mellon is dominating
factor. While the high mortality rate
among banks was being maintained. in
dicating bankruptcy for thousands of farm
ers. the Steel Corporation was making huge
profits, much Of il on articles which the
farmer mus. have to till his farm, profits
80 huge that it was able to declare in one
year cash and stock dividends out OF its
earnings of approximately quarter Of a
billion dollars. Yet Notwithstanding these
huge dividend payments. the Steel Corpora
tion received special favor from the ad-
ministration in the form of SO per cent
increase in the duty on pig iron.
1t is no. wonder that because of this
policy of indifference. even opposition, to
agriculture, and Of special protection for
great corporate interests. the farmers are
adopting the slogan OF Protection for all
or protection for none" for the national
election campaign Of 1928. and are de-
manding that agriculture be placed on an
equality with other industries.
1t is significant. too. that the number of
failures during 1925. one year under the
Coolidge administration. was more than four
times greater than the number during the
entire four years Of the last Wilson ad-
ministtation. from 1917 to 1920. During the
four years of the second Wilson admins
tration. the total number of failures was
23l. and the liabilities of the insolvent
banks $90.Sl3,0i3. Thus the number Of
failures under Coolidge in 1925 was more
than four times greater than during four
years under Wilson. and the deposits Of the
banks falling last year were approximately
three times greater than the liabilities Of
all the banks failing in the four years
from 1917 to 1890, inclusive.
II is a coincidence that the Federal
Reserve Board report was being circulated
at just about the time President Coolidge,
in the Black Hills. issued a statement to
the effect that trade conditions are good
all over the United States"