, 1922-01-16
HIS IDEA oF SECURITIES.

In a recent interview Henry Ford declared that his
bank balance was in the neighborhood Of 14o,o0o,0 900
and that he had no doubt his assets could be capital
lied and sold for c billion dollars. He had previous
" given out the information that his income and ex-
cess profits tax last year was SIS, 600, 1000. Conclud-
ing his recent statement he said: "AIl the money that
comes to me goes into new industries. / never invest
money in bonds or anything of the kind"
In view of some public comments Mr.. Ford had pre-
viously made on the subject of the rights. of bond
holders it may be worth while to take more than a
passing glance at his quoted remark.
Mr.. Ford is by native talent and training a man Of
mechanical skill, and Of rare ability in the organic
ing of productive industry. He not only knows how
a piece Of machinery should be constructed in order
TO get the best results out Of the least material but
how to produce that machinery at the lowest cost. He
also knows how to put that machine on the market to
the best advantage. He not only has capital but he
has the ability to use that capital better than anyone
else could use it for him.
But Mr.. Ford makes a grievous mistake when he
assumes that others should or can do as he has done.
There is many n man of mechanical skill who can con-
ceive a new idea in machinery but who has not the
business ability TO get together enough capital to fl
nance production. There are also men Of earning
power as wage earners who have no business aoiEty
which would enable them to make by themselves prof
liable use of their savings. Our present complex In
dustrial organization Is made up very largely by bring
ing together the men Of skill in production and the
men of accumulated savings.
The man with five or ten thousand dollnrn Of saw
ings to invest cannot 20 into the business OF produc-
ing automobiles, or sewing machines, or typewriters,
CT pnonoBTapns, put II enough OF these small cnpl-
talists put their money together under the manage
ment Of some man skilled in production they can put
into practical operation an industrial enterprise which
will not only earn a profit for the manager but a
profit for those numerous small capitalists, whose
savings are thus employed. Without this combina-
ton of the capital of one class of people and the skill
Of another, both the capital and skill would remain
idle. These capitalists must, of course, have some
evidence of their interest In the business and that evil
denee is recognized by stocks or bonds.
Because he has capital enough of his own to be the
sole owner of his establishment and to have no bonded
indebtedness, Mr.. Ford recently declared that bonds
were q commercial evil and should be thrown away.
Under that theory Of business organization the saver
of small amounts of money would be denied the op.
portunity to use that capital in useful production.
Moreover under Mr.. Ford's theory the man who has
skill in production but no capital would also be denied
the opportunity to become a useful producer on an
extensive scale.
Mr.. Ford's latest declaration regarding his invest
n,ents, practically ~repudiates former statements on
the same subject.