Evening star., 1936-10-04
Is National Wealth
Declining?
BY FREDERIC J. HASKIN.


Census made an oficial estimate of the
national wealth Of the United States.
There have been annual subsequent
estimates Of the national income which
probably is more valuable measure, but
there remains only the 14-year-old ON
cial estimate of the wealth. In 1922 the
figure was stated as $500, ,804, ,000, 900.
The year 1922 was year of returning
prosperity, the country making q rapid
emergence from the depression of 1920
FL. That depression had been brief and
nothing to compare in severity with the
depression Of the sos. Still there un-
questionably had been at least temporary
impairment Of wealth. The Census Bu-
reaus wealth figures were made peri
odically up to 1922, but there are no
annual figures Of an oflcial nature avail
able. In 1912 the bureau gave the ma
tional wealth as $1S6 300, ,OOO, 900. In the
period between 1912 and 1922 there un-
questionably was a substantial apprecia-
ton In the national wealth. 1t is be.
lieved that 1920 saw q peak, some bill
lions higher than the last registered
figure Of 1920, 600, ,o00, 900 for 1922.
&x&*
Necessarily some arbitrary factors are
used by statisticians in estimating ma
tional wealth, and there is some differ
ence Of opinion as to the proper man.
ner OF judging apparent fluctuations.
The Census Bureau has confined itself
to tangible wealth in fairly narrow
field. The big item is real estate in
private hands, and the estimate of the
wealth placed Is in relation to the tax
status. AS this real estate Is affected by
the market to some extent. there are
fluctuations. and yet it might cogently
be argued that land does not really alter
in actual value for productive purposes.
That is to say. most land does not.
Eroded land and rundown land which
has not been refertilized does lose value
and, in the urban field, there are very
real changes in value due to vicissitudes
Of use and occupancy.
But Pixies Peak can scarcely be said
to have increased or declined in value
What value to place on the Great Lakes
Is a problem. AS trafic increases on
the Great Lakes 1t might be held that
their value as a national asset has
increased. These considerations have
not been gone into by the Census Bureau.
From a practical point of view there
must be recognized a relation between
wealth and income. Indeed, most wealth
estimates are in part based on the in
come given property produces. Well.
in 1922, when the wealth was estimated
at $500 900 900 ,000 the national income
was $62 ,000, 100000. That income sprang
from many intangibles as well as the
tangible assets and included profits and
the wages of labor. The income as
shown. taken without weighing and ad-
justment for intangibles, shows q rate
Of about 20 per cent.
For the peak year Of American pros
perity, 1929, an income of $S3, 900, ,000, 900
has been reported On the same basis
of return. this would suppose a national
wealth of s415, 900 900 ,000 At the depth
Of the depression in 1882. the national
income was but 39,4o0 00o, 900, and on
the same return basis this would mean
a national wealth Of s1e7 ,0oo, ,o0o, ,000 or
far below the wealth a full decade
earlier.
The latest figures estimate about $54.-
900 000, 900 as the income, and this would
mean national wealth Of $270 ,000, ,000,-
000 So, II these figures are to be ac-
cepted, our national wealth has shown q
net decline Of $4,000 100000 in the last
IA years.
Land is presumed to have the most
static value, to be the steadiest asset in
the country. and the overwhelming ma
jority of the land in use is farm land.
The very life OF the whole people is
dependent upon the production of this
farm land, so its worth must be regarded
as prime. 1t probably will astonish
good many people. but the statistical fact,
attested by the United States Govern
ment, is that farm land and buildings
today are worth scarcely any more this
year than they were a quarter Of a
century ago. With all the great gains in
transportation and the better marketing
facilities for farm products, farm values
are not today higher. In 1910 their
value was placed at $40,945 000, 900, and
for this year, Sal ,811 900, 900.
To be sure, in the meantime, farm
land and buildings have had a far
greater value, value almost twice ss
great. The peak Of value came in 1920,
when a figure of $7s436, 100000 was
registered. That was more than Is
years ago. and since then there has
been a progressive decline All through
the decade which included the Coolidge
Hoover boom, when many other values,
especially the intangibles, mounted, the
value of farm land and buildings kept
dropping. In 1929 at the height Of the
general boom, the value of the farm
property had fallen to s57 7,604, 100000.
The bottom was reached in 1888, when
the figure shown is only $50, ,235, 900 900
half Of what 1t had been Is years earlier.
The rise to the present SAL 900, 900 900 can
scarcely be said to represent much Of
a recovery.
Now as to urban property. figures are
somewhat confused. Manhattan Island,
the heart Of New York City, the place
where the greatest skyscrapers in the
world stand. has shown. in the last 20
years, a decline of around 80 per cent in
real estate values, according to studies
made by q special committee headed by
Frederic A. Delano the Presidents
uncle. It might be urged that this de-
cline was due to the depression Of the
sos, but the fact Is that the decline had
set In before the fatal 1929. Due to the
depression, at least 81 900 900 900 worth
of buildings were torn down because they
were not revenue producing and the
owners wished to reduce their tax
liability. Mirfion-dollar buildings which,
assuredly, had represented national
uealth were rllthlesSlv razed sn that