Evening star., 1923-11-11
MEXICAN business has quietly

A MEXICAN business has quietly
~ weathered a severe disturb
n ance without allowing the
public to be alarmed. This is
the best possible proof of the value
Of the federal reserve system, and 1t
carries a moral" Of especial peril
nence at this time when tax revisions
are being discussed.
The manufacturing industry of the
United States, which creates and
multiplies wealth by mutation of
through the processes Of manufac-
ture, has without sounding the tom
toms been digging into reserves to
save the whole country from the
throes Of disturbance that would in
evitably result from a general recog-
milton by the public Of the extreme
financial stringency.
Revealed By Inoomes.
This is disclosed in the statistics of
incomes for 1921. which have just
been compiled and made public by
the Treasury Department They re-
veal that the manufacturing indus
tries went from a net income of 4.12
per cent to minus 1.23 per cent, or a
real decrease of 535 per cent.
Only three kinds Of manufacturing
show a net increase-textiles and
textile products. printing and pub
fishing and stone, clay and glass
products.
Study Of theee statistics hrinps the
conclusion, which is confirmed by the
National Association of Manufac-
turers. that practically all manufac-
turing corporations would have gone
broke in 1921 if they had not dug
deep into their reserves.
The statistics of incomes for manu-
featuring in corporate form for 1920
show total net income, after de-
Quoting the tax of 4.12 per cent 1t
must be remembered that most of the
form, so that this gives practically
the whole story of the financial stand
ing of manufacturing in the United
States. This is confirmed by the
census of manufacturers for 1919.
which show that about 80 per cent of
the total value of goods manufactured
is found in those produced under the
corporate plan. while only 10 per cent
is found produced by partnerships
and individuals.
IL
income. So let's take a look at the
gross income figures in 1920, which
show a total of $50, 9.233,006. There
were 1911 manufacturing corpora
tions reporting. OF that number re-
porting in 1920, 49,425 had some net
income on which they paid taxes
There were 2s,746 that had no net in
come in 1920.
Now we take comparable figures
from the 1921 statistics just available.
NH A
corporations reporting. The increased
number represented those which had
changed over from partnerships or
individuals to corporate forms, rather
than the establishment of new enter
prises. OF these $1,000 had a net in
previous There were 42,71S that had
no net income as compared with 2S,-
746 the year before.
Gross Income shsv.n.
The gross income of the manufac-
turing corporations that had a net
income in 1921 was $24,422,o77.076.
while the gross income of the corpora
tions that had no net income was
$14,019,846,713. Add these together
and we get the gross income from
the manufacturing corporations in
lSIl as something less tnan $o6,oOO,-
100000. The gross income of the
manufacturing corporations that had
a net income in 1920 was S45,217,317,-
S92. while the gross income of those
that had no net income was $11,431,-
915,114. Add these and we have the
gross income in 1920 for all manu-
featuring corporations as approx
mately $57, 900, 200, 900, as against less
than $38,5O0, 200, 900 in 1921, with more
concerns reporting.
What saved the country when this
undoubted depression was at its
worst?