The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1939-01-05

hrafhN unanf ftsr w raNttN~S
unless private Investment gets
under WAY. n IL fails. govern
npent spending stli have 10
continue. Hut u viii hsNe 10
he Increased b. eNpsnd the Fssrs
/, seems incredible that private
Investment has lAgEed - long
There - perhaps ne argumca,
conceivable which could have Ia
dueed American business mee ~
lpS2 10 believe that tbe revival
of private investment would have
been DELAYED 80 long
onr Of tho most impattaat
factors ~ the last NesF wss
the decline IN private tnsrst.
meat.
Rut A. private Investment mas
declined the condition ef ne en-
tire plant of the American people
has grown steadily worse. and =
for the first time in cur history
actually smaller
In other words, our mass 81 fac
torres. machines. railroads utili.
ties houses stores. and 80 on
which makes UP the vast machine
with which We live and do business
u actually smaller than " has
been in a number of years
Most business men believe that
this shrinkage Of the national plant
must reach a point where replace
mcnt viii become 40 imperative
that II cannot longer he put off.
Certainly railroad rehabilitation
cannot be postponed much longcr,
The same is true 81 many factories
And this il growing daily true Of
our housing endowment
And so the moment must come
when We must from sheer ne
nossity. begin 90 returhlsh our ma
tional plant That VIII imply in
vosiment Will that point come
this year, Indeed, many ask, has
II not already come
Certainly the resumption OF
Investment has not vet begun.
For instance, In 1888, NJ Tar
NJ the figures are known, se-
euriiN financing for new In
dusirial purposes was actually
smaller than In 1877. Up 10
Oct. 81. 1897. new security
issues amounted 10 $685., t8s.-
600. while In the same period
Of 1888 u wa. only Stsg 600
The same thing Is true of prt-
vate construction Up 10 No
vember of 1887 private construc-
ton amounted to 81 762 COG, 600.
while In 1855 IL WAS 81 i2s 900 600.
There Ia this difference that In
1887 al that time II was diminish.
ing. while In 1898 lt Was inercss.
ing
Dark as these figures seem, how
ever, they only add TO the eondi.
ton referred to that the lack of
investment has resulted In anch n
vast volume of obsolescenee and
depreciation that star, at re-
placement on a grand scale must
begin soon.
~ H. this which makes 81
man, believe that this YEAR the
major swing VIII get under
way. Hut no one should cont
init himself rashiy 10 that pre-
/ dietion.
There IN one factor Of immense
f importance II there has been no
rise In investment. II Ia not BE-
cause the means of investment do
not exist.
Indeed. never in our most pros
porous periods has there been
available so much money IN the
commercial banks and In the sAy-
{ lngs banks for investment
One Of the sirangrst spec
/ taeIes In financial history IL
this vast reservoir ~ funds
{ which absolutely refuses 10
flow into Investment, whlis ~
the same time there IL vast
/ accumulation 81 plant rehabili-
tation and requirement crying
I out for money.
/ The one great commanding
problem before the country - the
means of starting this immense
ocean Of savings flowing into the
immense ocean Of investment
WIN II begin this year.
II Will not certainly. begin At
once. That ~. not IN the first
months Of the year But II may
begin sometime during the year.
No msn can predict about that
But. while waiting for i, every
thing depends on the course Of
government spending
Government spending u Dof'
roWed funds has besn on a greater
scale this year than last s1i
there are signs that there viii De
some effort 10 cheek this spending
when congress eonyenss.
Serious a. are tbe possibilities
81 future trouble IN this spending
program. u would BE- = very ssfi-
out matter n u we're curtalisd n01f
But IL would De equally serious u
the country pinned all iis hopes on
+ government spending,
That u merely a bridge "
We depend upon government
spending, the most Ns tan
hope for ~ moderate rise.
But " The means Of sppisinE
+ the spark 10 sssinEs 10 espiods
them into Investment can bs
found. then real recovery WIN
soos bs under Nay.
Rev. Arnold BssenhAgen offjcist-