The Washington times., 1929-01-26
BUSINESS GAIN
SEEN IN AUTO
PROGRESS
~
R ID i. sTRONG

kfe9faene OF tue BUICK mot0r W.
n you would follow the trend Of
the nations business, keep your
finger on the pulse Of the automotive
industry. For the automotive indus
cry, as much as any other, truthfully
mirrors conditions throughout the
country.
The automotive industry, which
directly affects the prosperity Of the
nation as whole, faces one OF the
brightest eras in its history in the
year just beginning. Consequently,
III Ii apparent that the entire country
stands on the threshold of year
that bids fair to equal, IL not sur
pass, any similar period In the last
decade.
For the automobile industry, EN-
ploying directly and Indirectly 4,110,-
900 in the United States, makes ap.
proximately $4,000, 900 persons -
about one-sixth of the total popula'
fion-dependent on it for their liveli-
hood, their life, liberty and pursuit
ot happiness.
Business Sound
Business throughout the nation is
sound; all lines of industry are rum
ming smoothly: conditions in the vast
agricultural areas are good and with
the automobile industry running to
capacity, prosperity must result.
Employment is at peak and the
presidential year "bugaboo" Is past.
In few ways is the general pros
nerity of the nation more clearly
shown than the billions of dollars
invested by United States citizens in
stocks and bonds in the last year and
the additional billions invested in
automobiles.
This has been made possible to a.
large extent by the huge increase In
the national income, which has
Jumped from so billions in 1920 to
700 billions in 1928. That the people
of the United States are saving more
and more further is shown in the
fact that, despite the enormous sums
invested, they total but a small part
ok the 40 billions increased income.
Savings Show Gain
The huge growth of savings in the
last 10 years. or during the so-called
motor age" is a big item.
ain 1917, American Bankers Asso-
clatjon figures show, savings de-
posits in the country amounted to
$10,S75, ,602 900, and building and loan
association assets totaled $1,769, 142,-
It's. That year the wholesale value
OF motor vehicles was $1.274, 4SS, ,449.
Eleven years later, 18th motor We
hicles valued at approximately three
billions, savings deposits had reached
d total of $4,000. .902 900 and build
Ing and loan association assets had
climbed to $1,000, 900 900.
That the average American family
now has more to spend on the motor
car is revealed in figures of the Ma
tional Automobile Chamber of Com
merce. which show that the percent
age tof new cars sold on instalment
payments in this country decreased
from rs per cent OF the total in 1925
TO 68.1 per cent. in 1928. and the per-
centage Of used cars sold on deferred
payments over the same period de-
creased from 62.8 to COS per cent.
The outlook for the automotive
Industry Is affected fayorably, too.
by the progress in construction Of
g0od roads throughout the nation;
hy the generally excellent crop con-
ditions Of the past season and the
prospect Of another year of good
yield in 1929, as well as by the re-
Isl6val Of the excise tax on motor
ears.
Market BFOadens
Our own confidence in substantial
Good things ahead Is based further
Iiron our market analyses, which
are being compiled constantly and
which show the existence of sound
conditions.
Another factor that indicates a
banner year In the industry In 1929
ig the broadened scope of the mar
ket, particularly the ever-increasing
replacement demand, which has
Jumped from less than 100000 in
1917 to about 1000, 900 in 1927 and
which win show a further increase
In 1923 and in the coming year.
Then there is the big growth in
EWO and three-car families which
now has reached total or more than
5000, 900 In the United States and
which steadily is increasing as A-e-
alizAtion of the necessity for more
than one car in family becomes
more apparent.
still another factor in increasing
mAIeB Il the huge growth of the for
eiiEn market, which has pushed ahead
United States exports of automobiles
from sg,430 in 1921 to approximately
ES4,642 in 1928.
And, az the automobile industry
proepers, 80. too, must the nearly
q score of allied industries.