The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1931-01-09
RICH STILL GRAB AS OTHERS
SUFFER
By SCOTT NEARING, Federated Pre-

by SCOII NEARlNCI FEDERATED Press
The late December figures indicate that
the year 1880 closed with the highest total in
terest and dividend payments in the entire history
of he United States There will also be more
business failures than in any previous year. On
the face of things these two statements would
seem to be contradictory How can they be ex-
planned?
U. S. income tax returns show that it is only
among the rich that interest and dividends make
up a considerable part of the income total. In all
incomes of from $125 to 5000 per week. for ex-
ample, only about onesixth of the total is secured
from interest and dividends. In incomes of less
than S125 per week. the proportion of interest and
dividend payments Is very much less A banner
year of interest and dividend payments therefore
means banner year for the rich.
When the stock crash in October and No
vember, 1929, followed by general business
slump corporation profits decreased. Thousands
Of men and women were thrown out of work;
wages were cut; workers were speeded up. By
these means money was saved, and the savings
used to pay interest and dividends. In some
cases corporations took part of their surplus to
pay interest and dividends By these means, the
interests of the rich were safeguarded at the ex-
pense of the poor.
But what of the unprecedented number of busi-
ness failures during 1880? They will total about
$4,000 The highest previous year reached total
of only 23,S00 How can they be explained?
Most of the failing firms were small. Three
quarters of them were worth less than $5,000;
about nine-tenths OF them were worth less than
$4,000. For years the development of the chain
store has cut into the profits of the small shop
keeper. His position has grown steadily worse,
TIL brought against the test of hard year, he has
gone bankrupt. Most failing businesses are "small
fry"-with few dollars invested in stock and an
unimportant line of local credit.
The year 1880 was a banner year for the rich
living on interest and dividends. 1t was also a
banner year for the small shopkeepers, who are
trying to squeeze living out of chain store leav-
ings
But socially, these small shopkeepers are the
largest single element in the "great American
Middle Glass; upon whom the rich must rely, when
trouble threatens. The rich very few in number,
would be helpless in case of mass revolt unless
they could call some allies to help them maintain
to live on interest and dividend payments. But in
1880, bleak, hard year for business, the rich went
on paying themselves interest and dividends while
their potential allies the small shopkeepers failed
by the thousands.
The same facts may be noted in the case of 9TH
middle class elements: the owning farmers fail
ing at a rate never heretofore equalled; the doc
tors, lawyers and other non-salaried professional
men, with incomes cut to a small fraction of 1929
levels; the engineers and experts, in many fields
with cut salaries where they have been able to
hold their jobs
The rich in the United States are grabbing as
usual By this means they become rich and by
the same process they stay rich. But while grab
bring for their pocketbooks they are forcing
their potential allies-the middle classes-to take
a savage cut in income and assets The rich in
the United States are saving their own skins BY
throwing their logical protectors to the wolves
For 1880 this may work. 1t may still go in
1881. But in the great day of reckoning that is
ahead, United States plutocrats will wish that In
this test their system of profiteering had permit
ted them to do less grabbing and more sharing.