The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1936-07-24
PROFITS RACE
AHEAD WHILE
WAGES CREEP
Fresh Collapse Not Distant,
Declares Socialist Committee

S"AA5 VI C4lC UuS1IlSSS curve UO1IlCS,
not to returning prosperity, but
to new crash in the not far dis
tant future"
The Socialist committee went on
to say that "lack of mass purchas-
ing power can lead only to fresh
collapse" According to a study
made for the committee by DR..
Joel Seidman, profits and divi-
dends have shown a rapid increase
while the wage level has risen only
imperceptibly. It is pointed out
that the public debt has reached
$34, 900, 100000, "highest in hist
tory" And, furthermore, chad the
proper taxes been levied upon the
wealthy, instead of money borrow
ed from the bankers, this debt
would not exist"
The report follows:
"The present upward swing of
the business curve points, not to
returning prosperity, but to a new
crash in the not far distant fu-
ture. So long as employers and
stockholders monoplize the coun-
try's increased income, with work
ers getting little or nothing out Of
it, the resulting lack of mass pur-
chasing power can lead only to
fresh collapse.
This is the situation now de-
veloping in the United States. The
business index of the New York
Times passed the estimated nor
NAL point in May for the first
time in six years. In the latter
part of June it stood several
points above that figure, at the
highest level since April, 1880.
PROFITS
RACE AHEAD
"Profits have raced far ahead
of production. In the first half of
1886 production was Is per cent
above 1886. Corporation profits
for the first quarter of this year,
however, ran so per cent above
last year, and second quarter pro-
fits are expected to exceed the
corresponding period Of 1885 by
Is per cent.
| AND
DIVIDENDS TOO
Dividends declared in June reach
ed the largest total for that month
since 1881. A total of $2D5 zoo, OOC
was declared, as compared with
1926, 100000 for June of 1886, ar
increase of is per cent. Dividends
for the first six months of 1886.
similarly, reached the highest fig
ure for that period IN five years
with ST, 661 100000 declared. This
compares with 1882, 100000 fol
the corresponding period of 1885, 8
rise of 20 per cent.
Railroads are getting their
share Of increased profits. In April
the eastern roads reported net op-
rating income Of 29,800,000, q
gain of 35 per cent over the pre-
vious year. The first "a roads to
report for May showed aggregate
net operating income of % pei
cent over May, 1885. The western
roads for the first four months OF
| 1896 showed gain in net operat-
ing income of 70 per cent over the
similar period Of 1885.
WHAT DOES
LABOR GET7
est is when we turn to labor's
share that we see why the next
crash is bound to come soon. Be-
cause of advancing living COSTS
living standard of the average en-
ploved worker in January of this
wear. had risen less than two Fer
cent over the 1888 level. The to-
tai real income of workers this
wear, according to A. +. of l.. tlg-
ures, is running only S.8 per cent
above 1885.
"Bv way of comparison. 1884 in
come statistics just released by
the u. S. Treasury Department
show that the aggregate gross IN
come of corporations in 1884 was
on per cent above that for 1888. In
1924. some 145,000 corporations
renorted net income aggregating
| S4,265, 100000. This represented q
gain of 43 per cent over the 1888
figure of $2,986,OO0,OO0.
PSYCHOLOGICAL
| UNEMPLOYMENT!
an April, 1880. when the New
! Yorw Times business index last
stood at the present level, the A. +.
IF r.. estimates showed only 4,O49,-
00O unemployed in the country.
This compares with the present to-
al of abo,1t ii 000. 900. indicating