The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-03-19
RADIO ADDRESS
ON RECOVERY
w. j. Cameron of the Ford
Motor Company Diagnoses
Business Conditions.

is the government SAID w. j. Cameron
of the Ford Motor company, in his adj
dress over the Columbia system Sunday
night and then continued:
There are greater spenders than the
government ever could be. The country
made some effort in its own behalf; but
that phase of recovery is never pre-
sented. We present it tonight from
United States government statistics"
Further he continued:
Public money for work relief began
to flow in 1888. BY the end of 1885 a
little more than billion dollars had
been spent If you add the Presidents
fund of 48 billion dollars, not yet ex-
pended. the government total is about
10 billions Now compare that with
the 81 billion dollars which American
Business spent over and above its in
come to assist the work Of recovery.
From 1880 to 1884, inclusive, American
business produced an income of 214
billionS-a little more than half its in
come at the 1929 rate-and paid out PAL
billions. That is 10 say, besides spend
ing all its income, American Business
took 81 billions from its savings of for
mer years, and spent that too. 1t was
not philanthropy. 1t was not Loan
Just as the physical body responds when
suddenly forced to draw upon its re-
serves of strength, SO. the economic body
responded Fortunately the economic
reserve was there to be drawn upon.
The use of the business surplus was the
most gigantic effort that was made to
keep the country going, and was by all
OCr,s the most effective.
You may add to this 81 billions, if
you like, the governments emergency
relief expenditures, for it all comes from
the same source-from the people and
from business, either as the government
borrowS it from banks or as the people
pay it in taxes. Everything that is
spent is our own; there is no one to
supply it except ourselves. During
1933-34 while government was spending
billions on work relief, American
business was spending Az billions above
its income to keep the wheels turning.
At the same time, business was receiving
only $500 of its usual income, while
government income had risen to 1850
In other words, the government, finan-
cially and comparatively speaking, Jared
twice as we'll as business, and helped
half as much.
There is not time tonight to give in
detail each industry'S contribution to
this 81 billion dollar expenditure for
recovery Every branch of production
and service contributed, and was still
contributing when the latest govern
ment figures were issued. Heaviest con-
tributor to recovery during the 1930-34
period, was the manufacturing in
duStries, which paid out nearly 9 billion
dollars more than they took in. Next
comes Trade,-the merchants and deal
ers who kept their doors open in spite
of difficulty-they expended almost 51k
billion dollars more than they received
Financial institutions spent 3 billion
dollars above income. The Service In
duStrieS carried on during the lean
years by spending nearly 21A billions
more than they collected. Transpor-
tation companies spent about IL bill
lion beyond their revenues. And so on
This is money actually spent in excess
of receipts. There is nothing in govern
ment recovery spending to equal it.
How all this became possible is per-
fectly clear. In normal times business
surplus is used for expansion, improve
ment and constructive development. In
emergencies it is used, together with
current income, to maintain our sources
of supply and to prevent collapse
Whether in the family or in business
these are the natural uses of surplus
For example, at the beginning of the
depression, the Ford Motor Company by
deliberate, and some said unwarranted
wage increases, paid out S33 100000 il
might have reserved. In another year
to maintain a certain standard of en-
ployment, it paid out S68000,000 more
than it received. That was made pos
Sible by a surplus. Last year-1935-
without sound of trumpetS the company
gave wage increases amounting to
$12,OOO,OOO in total pay roll of $780,
10000. The employees also drew more
than half million dollars income from
their investment certificates. For ma
terials the Company paid $617 100000
to other branches of American business
So that, last year, the Company came
almost within sight Of circulating full
billion dollars. 1t did circulate more
than 8-10thS OF billion.
private surplus is public security
Si1ce 1890 it has been national saliva
ton. But any surplus is limited and
easily exhausted 1t must be replen-
iShed by production The recovery eff
fort made by American business was
colossal; it was in fact so effective that
during the depression the nations pro-
ductive life was held at about the 1922
level. Besides spending billions Of dol
lars more than government spent for
recovery, Business maintained for the
producers of the national income the
same relative share they had in 1929.
and during four-fifths of the period of
the depression it kept three-fourths of
the workers employed. These are great
achievements
In estimating and comparing public
services, therefore, it is just as well to
have in mind the fact that the 81 bill
lion dollars in excess of income which
Business fortunately possessed and
freely spent, still heads the list of re-
covery expenditures"