Evening star., 1934-09-23
Seeking What Is Wrong
With Economic Machine
BY HARDEN COLFAX

The effect of long-term debts-per-
sonal and individual, as well as public
and governmental-on general eco
nomic activity. and thus on production
and consumption. is becoming so i'm
portant that better knowledge of the
situation is being sought. A detailed
study is now being undertaken in
Washington.
For some time the Federal Govern
ment has been probing into business
facts, conditions, practices and prob
lens in its endeavor to find out just
what is wrong with our economic ma
chinery. The Bureau Of the Census
has been making a number OF COM
pilations and these are supplemented
by surveys undertaken by various pri-
yate agencies.
There have been censuses Of Ameri-
can business, wholesale and retail, a
property inventory. and many less am
bilious investigations into the flow of
business activity. There have also
been surveys of income and changes
in purchasing power. Some months
ago the Bureau of Foreign and Do
mestic Commerce, in cooperation
with the National Bureau of Economic
Research, made study OF national
income. Its findings, recently pub
lished in the form of Senate docu-
ment, have been available to the Sen
ate for some time in its consideration
of tax legislation.
The Department of Commerce
brings out annually survey of retail
credit. 1t is now undertaking new
debt survey which, it is expected, will
be of great value in determining pur-
chasing power. Income unhampered
by debt is, after all, the true measure
of nations ability to buy commodi-
ties and services.
The Business Advisory and Planning
Council of the Department of Com
merce, made up of some 80 nationally
known business leaders, recently rec
commended a study of internal debts
in the United States by the Commerce
Department. This was reinforced by
resolution of the Twentieth Century
Fund, Inc, which has already made
study of internal debts for the United
States for 1888 The fund expressed
the belief that the lack of this type
of information now represents one OF
the most seriously deficient fields Of
statistical data"
The Bureau of Foreign and Domes-
tic Commerce, through its director,
DR.. C. T. Murchison, has now an
nounced the beginning Of such sur
vey. 1t will include a study OF in
debtedness in the personal, corporate
public utility, railroad, insurance. ru-
rak and banking fields. 1t is proposed
to conduct this study every year.
II X
Members of the Advisory and Plan
ming Council say the study will aim
at determining not only the volume
of debt, and the dates at which these
obligations were incurred, but expert
ence in relation to the payment of
interest and principal, default and re-
adjustment" together with the cur
rent reporting of such data period
ically. The study in the Commerce
Bureau will be under the direction of
Dr. Donald c. Horton Of Ann Arbor,
Mich.
1t is interesting to note that the
National Association of Finance Com
panies has just brought out an analy-
sis of the amount of automobile in
stallment debt in the United States,
one of the largest items in the whole
personal debt field. On estimated sales
during the first half of 1884 more
than 100000 units, the amount in
volved in notes and other deferred
charges was found to be less than 40
per cent Of the total value.
copyright, 19340