Montana labor news., 1936-03-19
THE AAA in MONTANA
By Lewis Penwell
Collector of Internal Revenue
District of Montana

Now it came to pass in the days
when the judges ruled that there was
famine in the land"
Ruth IL.
There has recently been received in
the office OF the Collector OF Internal
Revenue for the District OF Montana,
a statement compiled in Washington OF
all Income Tax collections for the cal
endar year 1885. 1t discloses the in
teresting fact that in the matter OF
percentage OF increase in income tax
collections in 1885 over the prior year,
MONTANA HEADS the list, and is
first in the entire United States.
There is no surer barometer of the
prosperity OF a state than the Income
Tax Collections. The fact that the per-
centage OF increase in Income Tax
Collections in Montana is the highest
in the United States clearly indicates
that Montana has and is enjoying a
greater rise in prosperity than any
other state, and that the increase in
prosperity Tor the past year has been
more rapid than in any other state.
To anyone living here in the state
and who is familiar with the circums-
tances, it must be abundantly apparent
that this astonishing result has been
brought about by the recovery policies
OF the Roosevelt administration and a
very large part OF the credit for Mon
tana's revival must be given to the Ag-
ricultural Adjustment Act and its in
telligent administration in this state.
AS President Roosevelt has recently
said II Human memories are short
lived, But all Of us who were familiar
with the agricultural conditions in
Montana recall that during the dark
days OF 1882 and the first few months
in 1888, agriculture in this state was
flat on its back, the result of condi-
tions which had been constantly grow
ing worse for more than ten years. BY
the beginning OF 1888 practically every
farmer and rancher in the state was
broke. His taxes for the past several
years had not been paid; he owed in
terest and back payments on his mort
gage; in most instances he owed the
local bank; and in practically every
instance he owed the local store such
a substantial amount for the necessi-
ties Of life that his credit had either
been shut off or was in jeopardy.
Foreclosures were being resisted with
violence by the so-called Farm Holi-
day Association and other radical or
CARNATIONS, Unemployment in towns
and cities had reached its maximum
local civic organizations composed Of
members who could i'll afford it were
organizing soup kitchens and temper
airy relief agencies to ward off rioting
and looting; the chain bank ~organiza-
had drained the state Of savings
by sale to the public of worthless sec
%urities. These conditions continued to
grow worse to such an extent that by
the time Roosevelt was inaugurated on
the 4th day Of March, 1888, practically
all the banks in the state were either
or were Immediately closed by
Roosevelt in order to stop panicky runs
and TO save them from utter ruin. Nor
this unfortunate situation limited
to Montana. Throughout the middle
west and in practically all states which
perdominantly agricultural, the
farmers were desperate, were barricad-
ing highways to enforce their demands
for better prices for farm products,
destroying food, dumping milk, and in
one case went so far as to get a rope
around the neck Of a district judge in
an earnest attempt to hang him to for
fend a foreclosure.
This unfortunate situation in the
spring Of 1888 had been almost wholly
brought about by prices for farm pro-
SO low that nowhere near the
cost Of production could be gotten for
ordinary farm commodities. For in
stance, wheat was selling for Is and
30 cents a bushel and hogs were four
All this in the face Of enor-
agricultural SURPRISES which the
public did not have the means to buy.
This was the picture Of agriculture
when Roosevelt was inaugurated on
he 4th day OF March, 1888. Because
agriculture was the largest single in