The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1936-04-16
Observations From
Washington
Another Bunk Story Exploded
(By Congressman Harold Knutson)


The old familiar fake cry that
"2 per cent of the people own 81
per cent of the wealth" persists. II
still is heard in the halls of Con-
gress. firing of hearing this slo-
gan repeated, Representative Geo
/ A. Dondero, of Michigan, took the
trouble to probe into the question
| of wealth distribution and made
some interesting discoveries which
he recently related to the House.
Relying on Government statistics
he discovered that there are more
than 100000 farms in the United
! States. Farm land and buildings
alone are worth 30 billion dollars.
He found 100000 non-farm
homes owned by their occupants.
| The Census Bureau estimates their
value at $4,478, which means nearly
! As billion dollars invested in urban
homes,
There are 100000 savings &C
counts in American banks. To the
credit of these savers stands near
ly 30 billion dollars.
Another 100000 have their saw
ings invested in building and loan
associations whose aggregate work
ing capital is approximately 8 bill
lion dollars.
The estimated wealth Of the Unit
| ed States is 246 billion dollars; the
population, approximately 125,OOO,-
| 600. The items thus far show where
131 billion dollars of the 247 billion
| is owned.
Further, 9 billion dollars is In
vested in livestock and machinery
on the farms. Furniture in Ameri-
can homes, If averaged at $500 per
home, would account for another
10 billion dollars.
The United States has nearly 3d.
900, 900 automobiles. If their aver
age value is $40O, this accounts for
8 billion dollars of the Nations In
| vested wealth.
Outstanding today are 115,O00,00O
life insurance policies, representing
a liability of close to 100 billion
dollars. The cash surrender or
these policies would account Tor
| billions more.
The Michigan congressman ola
not attempt to show the extent TO
which thrifty citizens have invest
ed their savings in great and small
corporations. He referred only to
the 100000 stockholders whose
funds are invested in securities OF
! the American Telephone and Tele-
graph Company.
Mr.. Dondero asked: How can
anyone in view of these figures, as
| sert that 80 per cent Of the wealth
! of the Nation Is owned by per
cent of the people?"
It will be well to bear these fig
ures in mind the next time some
demagogue comes along with the
old chestnut that "2 per cent OF the
people own 80 per cent OF the
wealth." 1t will be safe to put him
down as either an ignoramous or
a champion liar.
The New Tax Bill
We concluded hearings on the
new tax bill last Wednesday night
at ten minutes to one, and it was
job that we were all glad to get
behind us. 1t is estimated that the
new tax bill will bring in something
like S8OO,OO0,O0O. After having
heard and read the testimony, am
more convinced than ever that 1t
is necessary for business concerns
to carry substantial surpluses that
will enable them to operate during
depressions.
The testimony brought out the
fact that a great many manufactur.
ing concerns would have been OBJ
liged to greatly curtail employment
or possibly to close down, altogeth'
err, had it not been for the surplus
fund which had been accumulated
over a period of good years.
A number Of small millers and
packers state that the imposition OF
the 80 per cent windfall tax, with
which it is proposed to recapture
processing tax money, will drive
number of them out Of business as
they say they were not able t.
pass the tax on in many instanc'
es, owing to the stiff competition
given them by the big packers ane
millers.