The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1910-07-31
THE AUTOMOBILE INDUSTRY.

lite Az tOMO6tIG iN0OSinY.
The automobile industry is won
derful industry. Untrammeled by the
traditions of any other manufactured
commodity the motor car sprang into
prominence with a rapidity that has
no parallel in industrial history. With
in period so short that during il
nearly every other industry remains
| in the infant class it has overtakeI
/ all but five of the leading industries
4 of the world; it has laid the seed from
which other, auxiliary, industries were
born; it has reformed business meth
DDS; it has made tributaries of near.
~ every industrial channel; it has
established an outlet for the skilled
labor of many thousands of American
/ citizens
In calling attention to these things
| in pamphlet just issued. Mr.. Ben
jamin Briscoe, president of the Unit
ed States Motor Company. also brings
to public notice the fact that incident
ally the automobile industry and it's
child, the motor car, have produced
AiieaHN otnCl SSttllS. hey lave
changed the traffic problems of our
big cities, Influenced our legislations,
and wrought Improvements of so great
magnitude that when the final his
tory of the twentieth century is writ
ten the automobile is certain to be
recorded as the most noteworthy in
dustrial feature of that time.
1t has been charged against the
automobile of late that it is largely
responsible for the present high cost
of living. The motor car, it is asserted,
represents very largely that extrav-
agance which absorbs capital without
returning it and which in the end is
apt to bring about general business
contraction. Mr. Briscoe suggests
that such statements should be aired
by an Investigation in order that it
may be clearly demonstrated whether
they are founded on sound Judgment
supported by facts, or whether they
are merely the somewhat distorted
opinions of those who are biased by
self-interest.
For some time past there has been
a certain lack of public support in
the bond and stock market, which has
found expression in the evident dis
inclination of investors and the public
to purchase low-dividend paying Sc
curities. The reason given by some
writer's is That the payments for auto
mobiles absorb an unduly great part
OF the capital heretofore invested in
securities and that in this way it is
retarding the progress of many CAPT
tal-seeking projects. Mr.. Eriscoe says
in reply to this theory:
Let us grant--if only for the sake
OF argument-that the total sum ex-
pended for new automobiles during
the fiscal year beginning August l.,
1909. and ending July 81. 1910. will
amount to approximately s240,000,0 900,
and that the additional expenditures
necessary to maintain all the automo-
biles in use in this country will be in
the neighborhood of $75,000,000, or
$100,000000, so. that the total auto
mobile expenditures reach the sum of
approximately $325,000,00O What do
these certainly liberal figures teach
us? Nothing but this: that, large as
the figures in themselves are, they are
yet SO small in comparison with the
vast volume of securities fed out an
nually by railroads, municipalities
and industries, that they cannot have
very appreciable effect on the bond
and stock market
No amount of juggling the sim
plest tenets of the MISUNDERSTOOD
science of political economy can be
made to prove the assertion that
money spent in the purchase of auto
mobiles passes out of circulation.
These sums are simply put into circu-
lation through industrial channels,
rather than through speculative chan
nels through which portion might
have flowed had 1t not been for the
automobile industry
The following figures for the auto
mobile business are given, being the
estimated production of automobiles
for the fiscal year 1910 tfrom August
1, 1909, to July 81, 1910: