The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-10-27
WEALTH IN u. S.
SETS new HIGH
! IN DISTRIBUTION
Labor'S Proportion of In
come Shows Increase,
Bank Ayers.

b. Tfrnes Special
NEW YORK, oct. 27.-The in
cressing share OF national income
paid out to labor IN recent years
apparently has resulted in wider
distribution Of wealth than the
United States has ever known here
tofore, the Index, publication Of the
New York Trust Company, revealed
today.
While the depression caused a
drop of more than so per cent in
national income, from S03 OBJ 900, -
600, in 1929, 10 500 1856 900 600 in
1892" the study said, the share Of
labor as a whole remained at ap-
proximately 65 per cent, IN comparl-
son with So per cent twenty years
earlier, that Of entrepreneurs fell to
1s per cent, and property income
largely in the form Of dividends and
interest. accounted for the remain
ing II per cent.
Trend Noticeable
Figures Of 1888 and 1884 are not
available. but a trend toward still
wider distribution of income is dis
eerned IN a further increase in
labors share of the total and IN The
governments expenditures for relief,
of which labor and agriculture are
the chief recipients. These eX-
penditures must sooner or later be
met by general taxation and the
higher income groups will feel more
heavily the burden of carrying the
public debt"
In denying that 2 per cent OF the
people own 30 per cent of the
wealth, the Index points out that
AZ Der cent of the families N the
country own their own homes, four
out of five have automobiles, and all
but the smallest minority have some
share in national savings, either
through bank deposits or life lnsur-
ance. which amounted to more than
$4,000 100000 in 1888.
More Investors
The relatively broad distribution
of national income today has come
about not only through the steadily
increasing proportion paid out IN
the form of wages and salaries,
the Index says further, but through
the growth of the investor class,
which, to a considerable extent, IN
cludes labor. The steady rise in ma
tional savings is itself proof that
the number OF persons receiving
rents. royalties, interest and diyi-
dends from invested funds is con-
stantly growing.
In any event. available evidence
indicates that, between 1909 and
1929. total wages and salaries IN
creased greatly, the relative income
of entrepreneurs propOrtionately de-
clined. and there was almost no
change in the percentage OF income
paid out on business investments.
The depression was characterized
bv reduced income for all recipients.
but for the maintenance even OF
these reduced payments industry
was obliged to draw heavily upon
its accumulated reserves and the
business savings shown in previous
years turned into large losses IN
1930-1933.
Public Debt Piling Up
Finally, the present trend of
economic development appears to
forecast a further drain upon the
resources of entrepreneurs and in
vestors TO meet the charges of the
huge public debt being piled up
largely for the relief of those nor
mally employed as wage earners and
salary workers.
In the future evolution of our
national economic policy, it is es-
sential that the facts in regard TO
income distribution be fully recog-
nized. so that the direction of legls-
lation NAV not be influenced by the
MANY misconceptions so widely held
TODAY. The basic problem in the
whole question is the extent TO
which it may prove advisable to at
tempt to increase purchasing power
through a wider distribution OF IN
come. and the extent to which en-
trepreneurS and investors should De
allowed to retain income for further
capital expansion.
The dangers to industry as a
whole. and therefore to salary and
wage earners as well as entrepren-
eurs and investors. of any sudden
change or severe dislOcation in the
existing economic organization OF
the country are obvious. Every
group Of income recipients would
suffer and on them all would rest
the burden of paying the bill Tor
radical augmentation