IDLE BILLIONS WOULD RELIEVE UNEMPLOYMENT
IDLE BILLIONS WOULD RELIEVE UNEMPLOYMENT Manager of Wall Street Journal Says Corporations Should Release $4,000,000,000 (Special to The Progressive) CLEVELAND, Ohio. — Four billion dollars are...
...Hogate pointed out that before the October crash cf the New York stock market that corporations were loaning four billion dollars on call and time loans at from 5 to 20 per cent interest...
...It is not actively passing dozens of times a day from purchaser to seller...
...Mr...
...After the crash, he paid, they withdrew this money to the treasuries and are holding most cf It as surplus in their accounts...
...At the the same time, he said, their working capital exclusive of inventories increased by $400,000,000...
...vice president and general manager of the Wall Street Journal of New York, at the dedication exercises of the new Stock Exchange here...
...We hear that this surplus reinforces the position of the corporation,'' declared Mr...
...Hogate cited 16 large corporations whose stocks have been used for computing industrial averages and index numbers, and said that these 16 concerns had between V821 and 1930 cut their bonded indbtedness $600,000,-000 to around $300,000,000 and increased their cash and marketable securities by $350,000,000 to about one billion dollars...
...Mr...
...More than 200 bankers, brokers, and business men of northern Ohio heard Mr...
...If corporations would disburse their surpius cash to the rightful owners— the stockholder?.' said Mr...
...But this money is passively at work...
...Four billion dollars are lying idle in the "surplus" accounts of the big corporations of the country which, if put to work, would go a long way in relieving the present business depression, declared Kenneth C. Hogate...
...negates address at a hotel luncheon given on the second day of ceremonies connected with the opening of the new exchange...
...Hogate suggested that if wealthy corporations would disgorge some of this surplus and thereby place more funds in position to start a buying movement by declaring extra dividends from surplus, it would create a huge sum to be passed among Individuals whose purchasing power.thus increased would stimulate demand, revive trade, and do much to relieve unemployment...
...Hogate, "and that it is a back log for an emergency and strengthens the stockholder's equity...
...Pointing out the present affluent condition of some of the large corporate organizations, Mr...
...It has no velocity...
...Hogate, "a sum approaching $4,000,000,000 would flow into channels of trade and frozen cash wouM be put to work...
Vol. 1 • September 1930 • No. 43
