Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-10-19
AUTO GROWTH IN U. S.
NOT A MUSHROOM
IS LOGICAL OUTCOME

New York, Oct. IL IA. F.J-1He
automobile industry of North Amer
lea is not>a mushroom growth, but
logical development of the American
carriage industry, says the Com
merce Monthly, published by the Ma
tional Bank Iof Commerce in New
York, dealing with 1.-THE Motor Car
in Relation to the Economic Life of
the United States and Canada
"The simple facts as to the produc-
ton and use of automotive vehicles
in the United States and Canada"
says the article, ARE SO astounding
that the attention not only OF the
business world but the general public
as we'll has been focused on them
and speculations as to the future or
the automotive industry are fruit
full theme of discussion"
From the standpoint of the value
of product, the industry now Is
third in the United States, and there
arc more than 100000 workers direct
ly dependent upon it for livelihood,
while the number indirectly depend
emit is much greater.
1.-THE relationship Of this vast in-
dustry to the general well-being of
the country is obviously very close"
the article continues. land a correct
understanding of the problems con-
nected with it is of vital Importance
in judging business trends in the
two leading countries of North
America"
1t is pointed out that at the begin
ming of 1928 there we're approximate
ly 14,500,00 registered motor vehicles
in the world and the United States
and Canada possessed SO percent OF
them, and the proportion of the an
nual world output is probably even
higher, for the United States and
Canada together dominate the mar
kets of most importing countries.
The argument that the industry is
dependent upon road improvement is
refuted by the fact that France with
a population, of 100000 and famed
for it's good roads has only 100000
passenger cars and $4,000 trucks;
Great Britain with 47,000,000 popula-
ton has $4,000 passenger cars land
145,OOO trucks while Canada with
a population of only 100000 has
100000 passenger cars and $4,000
trucks 1t also is pointed out that in
the relatively newer portions of the
United State, such as Montana,
Idaho, South Dakota and Nebraska,
the ratio of motor vehicles to
population is much higher than New
York Massachusetts and Pennsyl-
yania with their admirable highways.
The total wholesale value of p
$4,000 motor vehicles produced in
the United States and in American
controlled plants in Canada in 1922
was s1,7S9,63S,000. passenger vehicles
constituting 80 percent of the total
number. During the first seven
months of 1923 there were produced
trucks. Regis tration of motor
vehicles in the United States on July
/, 1923, was 100000, of which H.
$1,000 were private passenger cars.
OF the passenger car registration of
10.SOO,0 900 at the end of 1922, it is
estimated that 100000 were owned
by farmers.
In relation to the economic life the
article declares that not until the eX-
penditures on motor cars begin to
cut into the savings of the people
can they be criticized. That this
point has not been reached is shown
by the fact that savings deposits in
S86 institutions increased from So
712,00O.000 on November /. 1921. to
$6,657, 100000 on July ], 1923.
1t is the judgment of the trade
that more than 100000 cars will be
produced in the current year.
"While somewhere there is a point
beyond which further growth of the
industry would be unsound," the ar
ticle concludes. there is no method
by which that point can as vet even
approximately be determined. The
reasonable expectation is that the
leaders of the industry by means of
careful study of their markets and
by the eXertion of ordinary business
foresight will gradually adjust out
put to changing conditions as they
may arise"