Evening star., 1933-01-06
GOVERNMENT BANK
CONTROL EXTENDED.
Social Trend Report Also
Notes Official Influence
in Other Fields.
RY the Associated Press.

NEW YORK, January 6-Extension
of Government control over banks and
public utilities, and greater govern
mental influence in other fields is
general trend foreseen in the report
of the Presidents Committee on Re
cent Social Trends
This conclusion is a major finding in
the special report on economic organi-
Zation by DR.. Lee Wolman, economics
professor at Columbia University, and
Dr. Edwin F. Gay, professor OF eco
nomic history at Harvard University.
The special report is one Of 90 chap
ters in the 1,500-page study OF the
Presidents committee.
while no elaborate development OF
Government functions may Immediately
grow out of the current discussion OF
economic planning, or the bills in Con-
gress providing for the establishment
of economic councils, 1t is clear that
public preoccupation with the problems
of industrial stability and financial
safety and with the Governments part
in achieving both Is more general than
before" the economics report says.
Economic Stability Is Aim.
at seems probable that control over
public utilities and banks will be ex-
tended and strengthened. And at every
point in the contemporary scene the
suggestion springs unforced from the
evidence that the future will almost
certainly see a continuation OF the ex-
listing strong movement toward the
building of institutions aiming to Sc
cure increased economic stability.
Although 1t is true that private busi-
ness has by no means demonstrated its
capacity of stabilizing industry and,
what is more important, to come 10
terms with the public as to standards
of service and price, the fact remains
that the goal of stability through con-
solidation and agreement Is now more
widely accepted by business than ever
before, and that it Is destined to play
a dominant role In affecting the trend
and purposes of business organization
in the next years"
The report cites statistics to show
that there were over 1900 mergers IN
manufacturing and mining between
1919 and 1923, involving net dSap-
pearance Of over 5000 independent en-
terpriseS by the end Of 1928, and some
1000 more by the end OF 1880. over
1000 enterprises among public utilities
were absorbed in the same period. and
nearly 1900 bank mergers caused the
disappearance OF an unrecorded, ouI
DTODdDlV ldISe llllllbSL VI NaAiAo'
Similarly in the retail trade, by 1880
sectional and national chains we're
transacting practically one-fifth OF the
total retail trade of the country, but
in many retail fields the proportion was
much higher. The report finds the
record of these chains in the depres-
sion as indicative of their great sta
bility.
Holding Company.
The report cites the holding company
as another example of the trend TOWARD
economic stability, combination or
agreement. For, example, SO per cent
Of all electric power output in the
country comes from 40 utility systems;
as per cent Of total gas sales; and 81
per cent of total traction service.
THE public interest in stability,
the report comments, "and the convic-
ton OF business that stability can be
achieved by combination will no doubt
further promote the consolidation move
ment.
Whatever the forms business chooses
to effect its ends. the public's preoccu-
patton will be with the invention and
improvement of regulatory machinery,
burdened with more difficult and puz-
zling problems of social control than
ever before"