Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1936-09-17
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Picture view, ana again
has painted off,
cially a picture of general condi-
tions that l believe to be the most
accurate obtainable under present
chaotic conditions. might add that
h is one of the few official analyses
coming out from the government
these days that is not colored in
any manner or form.
The reason this review is so in
teresting is because it points out
what can be expected to happen by
a disclosure in detail of what has
happened in commerce and indus
try. To that extent it delivers a
rather definite body blow at some
New Deal policies affecting bust
ness. Since it does this sort of
thing, the review is entitled to more
faith and credit than usually is ac-
corded government publications,
whether compiled by the Roosevelt
administration or those before it..
Political leaders always want to put
their best foot forward and the New
Deal under Mr.. Roosevelt has not
failed to carry on this tradition to
the fullest possible extent.
The section of the "World Eco
nomic Review" that was most in
teresting to me contained this state
ment:
Deficits of great magnitude Gre
ated yearly during the depression to
meet payments of wages, salaries,
interest and dividends slapped the
vitality of the entire business struc-
tue and could not have been sus-
tanned indefinitely
Here then is an official declara-
ton from that agency of the govern
ment most concerned with COM
merce and industry which says that
corporations and employers of labor
maintained as far as they were
able the payrolls and interest pay
ments during the depression. It
says likewise that had corporations
failed to do this, our unemployment
problem would have been much
greater, the income of those who
hold securities, whether in large or
small amount, would not have re-
ceived dividends on their stocks or
interest on the bonds and, as a
result, it is obvious the buying pow
er OF the country as a whole would
have been sharply reduced. That
is to say, had these payments both
to labor and capital, been curtailed
there would have been even a lower
level of retail business than OBJ
tanned during the depression. It
ought to be added as well that had
a lower level of business resulted,
the manufacturing Industries from
which the retail stores buy their
supplies would have closed down
tnelr plants in even greater num-
Der than they did.
AS we look back over the last five
or SIX years it is easy to see how
things could have been very much
worse. 1t is easy to recognize that
me strength that comes from
amassing capital in corporation
form has developed in this country
one OF the greatest shock absorb
ers that any people may have when
nose corporations, those bust
hesses, are permitted to develop
under sound management and with
as little governmental interference
as the general public welfare will
permit.
NOW, as to the reason why these
businesses were able to accomplish
uae tnings they did: The answer is
simple. Arrangements of businesses
must follow the same practices in
sWolng the financial affairs of those
businesses as you or do in the
fairs. ~
ms brings us to a point of cur
'en' interest. In preparing for the
Rainy Day 5ainy day. S,so+s all
Fund great or small,
t.;. lays aside a GER
10 S'ii percentage of it's profits. This
called surplus. The surplus is
invested tive, 1t is made to yield a re-
S Inn IN the form of interest or divi-
illus, 1t is seldom touched. It is
t Ses.ed just as you and I would
n, ea. our savings accounts-iust as
account. A-e'' SAVINGS
din mus US the arrival of slack times,
ot 81 BUSINESS, no profits, the arrival
M,r we time when we must live on
Sua own fat so to speak, does not
thai u us without reserve because
M is what surplus is.
and records of the savings bank
nis S Of the life insurance compa-
S through the last six years show
Nouuely how many hundreds OF
that s land" of people had to draw on
Of surplus just as the Department
veal, commerce statement now re-
uno ,S nov now many corporations drew
tsi r" mel. ar supluses in order to main
worLo .neir organizations, pay the
Tho i yer and be honest by paving
this interest on their debts. All Of
trs sounds like chautauqua lee.
NAV vi savings. But however il
lepis,aSo sound, it links in directly to
last su that was enacted in the