Statistics from the National Bureau lof Economic Research reveal, on the subject of "National Income and Capital Formation 1919-1035"—a re-ort prepared under the direction of Dr, Simon Kuznets—that - business [capital declined $16,000,000,000 during 1931 to 1935. The arrears in the maintenance of residential construetion is very great, the capital embodied therein showing decline that aggregated to about. U.S-$8,000, }000,000." In the capital goods industries construction remained deeply de-' the belief of the Chairman of the Chase Bank that the over [Production theory of crises is not. Justified either in-the Marxian form. for the more sophisticated one in which it Is found in the works of some of the later economic writers.
Certainly, justification cannot found for the theory in the actual facts of the current depression. - This! being so, he earnestly submits that the nation desist from adding thou sands of millions to their already excessive, overburdened public debt for the purpose of increasing consumer purchasing power, The big thing is to remove the clear mistakes that have been made:
(as has been shown to be the case with the undistributed profits tax and the high rates in the tax on capital gains) and adopt a frank reversal of policy as these "backward" steps are. Cesential and constitute progress rather than retrogression, 'What is needed at the present time is a prolonged period of quiet, not three to six months' breathing spell ut a two or three years rest during which both Government and business can consolidate, modify and assimilate what has already been done, and during which also it will be possible to study quietly the basis of further, reform.
Mr. Aldrich eloquently exhorts his! Government to pause now from its fast pace, and at points even to retreat, and to let business adjust itself to the whirlwind changes that have lulready taken place. He has proved that there exists avast arrearage in the production of capital goods, deferred maintenance, appalling obsolesjeence and a need' in many lines for; great expansion. If men can look head and make far-reaching industrial plans with assurance of stability in Government policy, great capital outlays will Inevitably ensue.—'This will not cost the Government mone) but, on the contrary, will create new income out of which the Government will be able to raise additional taxes, which it is devoutly to be hoped will be used for the reduction of public Touching all this to a finality, we would say that, in view of the! American political leader's genius for: bold experimentation, he may, during this 3-year ending period, strike that happy solution which could, by a nilecty of discretion, meet both the claims of social conscience and busi ness individualism,
Text read from the printed page and cleaned; old type leaves the occasional error.