Evening star., 1938-12-11

nearly a dozen major factors of economic
change as blamed by Leon Henderson,
executive secretary of the committee,
for forcing revision in the basic reli-
ances of the American capitalistic COM
petitive system.
Cites Other Factors.
Other factors he enumerated as fol-
lows:
A. Passing of frontier.
B. Leveling of of population.
c. Decline OF competition, due in
part to-
/. Unequal bargaining power, large
VS.. small, or few VS.. many, in impor-
tant market areas.
2. Changes in selling practices, e.g,
price leadership, greater emphasis on
organized sales effort.
g. Importance of overhead costs.
4. Widening use Of corporate form.
Dominant corporations
5. Differentiation of product.
g. Rise in collective effort-"revul-
sion against risk"
D. Decline in concept of possible con-
troll through monetary policies.
E. INSTRUMENTATION of savings. Gn-
surance companies, savings banks, cor
porate surpluseS, etc.
F. Lessening of composition through
import restrictions.
G. Absence of great new industries
recently.
H. Excess of savings over new invest
ment in capacity to produce.
I. Enormous increase in consumer
credit.
In the light of these important cir
cumstances, Mr.. Henderson indicated,
particular consideration is to be given
| to existing conditions of concentration
and control of natural resources, of in
surance and financial institutions, trans
portation, communications, distribution
enterprises, etc. Prices are TO be studied
| exhaustively in an effort to learn their
effect on general levels of trade, on de-
mand for specific products, on profits
and consumption and on employment
| trends.
Interlocking Relationships.
A broad field of study is indicated in
| connection with the interlocking rela-
tionships found in American industry
and the prevalence of investment trusts
and holding companies in the utility and
banking lines Effort is to be made also
to shape proper appraisal Of the i'm
portance in our economy of the giant
insurance companies based upon their
investment policies, practices and or
ganization.
| AS a prologue to the open hearings,
the committee prepared itself with three
days Of background presentation by
three of the Nations leading economists
namely, DR.. Isadcr Lubin, United States
commissioner of labor statistics; DR.. Will
lard Thorp, director Of economic re-
search for Dun & Bradstreet and now q
special consultant Of the Department of
Commerce, and Mr.. Henderson.
Although the background and rela-
tionship of these three men to the New
Deal is different in each case, there was
unanimity Of opinion among them as
to the fundamentals of our economic
structure, the manner in which it has
been functioning and the desirability of
comprehensive study of the changes
and developments of recent years. Such
unanimity, 1t may be hoped, augurs well
for the success of the committees ven-
ture.
Translation of Losses.
Most arresting, perhaps, of the. in
formation presented by DR.. Lubin was
his translation of the past nine years
into figures of losses suffered by wage
earners, by stockholders and by farmers
Since the peak year of 1929, he esti-
mated, the cumulative losses in wages
and salaries have amounted to $119, 9,000,-
100000, he figured, with farmers suffer-
ing IN additional loss Of $3s s,000, 900 900
and stockholders missing another &c.