Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-05-26
Public Support Of Bill Expected.
Capital Goods Market
Of Greatest Importance
BY HARDEN COLFAX.

Since economists are now generally
agreed that, in every business de-
preston, unemployment has been
found to be greatest among the
makers of durable goods, including
those servicing such goods, the pros
poets for recovery in the heavy or
durable goods industry are of prime
importance to the country's jobleSs.
Any study of the capital goods market.
therefore, becomes of vital interest
to the Nation.
Some months ago the Machinery
and Allied Products Institute under
took such a study and, fortunately,
lust as the results of this investiga-
ton have become available, figures
gathered by the Census Bureau are
published, and it is interesting to
note how each of these sets of figures
confirms the other.
Without exception. the figures show
each major economic collapse in this
country has been followed by marked
let-down in the demand for durable
goods. Conversely, recovery and the
rebuilding of the capital goods mar
ket have gone hand in hand. The
survey by M. A. P. l. into the extent
to which business men have delayed
ordering new machinery, and the
amount of business now in prospect
along these lines, shows that some
IS cents out of every dollar paid by
American industry for its machinery
and equipment goes to labor in the
form of wages.
On the basis of questioning all its
So member trade associations, repre-
senting between IS and go per cent
of the volume of the country's pro-
duction, M. A. P. I. says that, in
round figures, twelve billion dollars
represents the pay roll cost Of pro-
ducing the machinery and equipment
which at the present time is required
to modernize American industrial
plants
At present there are more than
four million persons unemployed in
the capital goods industry, and prac-
tically all would find their services
needed If these machinery require
ments of the country could be met.
Moreover, says M. A. P. l., for each
man actually at work in machinery
manufacture probably at least three
others would then find employment
A conservative estimate. borne out
by figures gathered by the Census
Bureau, indicates that at least SO
per cent of the industrial plants active
in 1929 had become obsolete by the
close of 1884. Figures covering the
two periods prior to the depression
show an average annual production
of machinery to value OF somewhat
over six billion, six hundred million
dollars. During this present business
slump, the Census data indicate, the
average annual production was only
50, TOO. 100000. This would mean
decline over the five depression years,
the Census believes, Of over nineteen
billion dollars. In other words, the
potential demand for machinery &C
cumulated during the depression has
been Just that much.
The figures collected by M. A. P. l.,
private industrial organization.
show that of this total just over SO
per cent of requirements are in
foundries and machine shops, more
than 80 per cent in factories making
electrical machinery and apparatus
and smaller percentages in other
lines.
The results of a study Of obso-
lescence, made recently in more than
10000 factories by the machinery
industry, have also just become avail
able. These show that in 20 diff
ferent leading types Of machinery
there are large percentages Of ma
chimes more than 10 years old. In
foundry products the percentage of
these Is 80. In mining, including
oil-well construction, transmission.
turbines and water wheels, food ma