Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-02
United States Makes Ten
Per Cent on Investment
BIZ HARDEN COLFAx.

The United States is the best run
national business enterprise on earth.
According TO careful estimates by botlf
Federal and private statisticians and
economists the net return on its capital
investment iSsapproximately 10 Per cent.
At the most conservative estimate, the
gross income return on national wealth
is nearly 30 Per cent.
No other nation in the world Ia be-
Ieved even to approach such returns on
national wealth, and finanoierS see In
the record renewed warning against
ever selling America short" even In
times OF the most acute depression.
The Industrial Conference Board
places the national wealth, or what may
be called the national capitalization, at
$3.50, 100, 00O, 900. Since 1919 this has In
creased about 81 per cent with allew-
ance being made for the difference In
purchasing power Of the dollar. This
total shows only tangible, physical as
sets. 1t takes no account of credit, cur
rency, patents, processes or copyrights
or good will. AS to money. 1t includes
only gold and silver coin and bullion.
~
oficials Of the Department of Com
Herce and other statisticians place ma
tional gross income ct 500, 900, 900 900.
That gives q gross return on the Indus
trial Conference Board figures Of 29.I
per cent. The Federal income tax
figures, however, show . taxable income
OF $4,000, 000, 600 or more. In view Of
these figures Government ofacials feel
that the estimate Of $3.50, 100, 900 900 is
low, but that the actual net return is
about 10 per cent on the actual capital
investment.
The ratio between net income and
total wealth has been fairly constant In
the last IL years. One has grown at
aoous the same percentage OF increase
grown 81 per cent in the last 1s years
net income has grown ct about the same
rate. There - reason to believe that
the increase will continue on that basis,
with perhaps a gain in net through
more up-to-date and economic methods.
1t Is obvious that the natural re.
sources of the country have been no
more than scratched. These undoubt-
edly have possibilities Of doubling the
national wealth In the next 20 years.
There would result q doubling of the
national gross income and an even
II, rs some governments aver, the ma
tional wealth or capitalization, includ-
ing intangtbles, patants, copyrights,
good will, assets resulting from adver-
Using royalties and other items of
similar character, is around $1,000, 00O,~
100000, this would mean q capitalize
ton for the country 30 years from now
Of $4,000, 000, 000, 600, or q net income
Of $500, 000. 900, 900.
According to the National Institute
of Economic Research, about $780,
600 of the national gross income
in the last year was in the form OF
salaries, wages and pensions. In 20
years, If the trend outlined is followed
this will mean q distribution of around
$ll0, 900 900 900 in wages. salaries and
pensions. bringing a huge increase In
the prospective buying power Of the
wage earners of the country. II viii
mean the opening OF new outlets for
manufactured goods and raw materials,
thus aiding farmers, lumbermen. miR~
ers, manufacturers and all lines of coEn-
modify production.
Not only are the natural resources of
the country almost untouched, but the
trend of efficiency in production Is dis
tinctly upward. Efficiency OF worker
personnel has increased faster than ma
tional wealth or national income. Tt is
possible to produce more goods with
the same number Of workers. The de-
tionahiy win be followed by the fur
nishing OF cheaper power. All these
factors will work together to permit the
cheaper production of manufactured
articles and allow their sale ut price
levels which will stimulate increased
buying.
Business experts do not fear over
expansion of business and industry IS
o result of the prospective financial
growth. They say that the business
men of the country learned their les
SON from wartime overexpansion, and
have been 80 rapid In
equipment and the working
out Of new processes that they are tax
Ing no chances of overbuilding their
plants.
(copyrisht, 1900