GASOLENE 3 r 



money has been derived. Here is a new channel of 

 expenditure into which an enormous flood of funds has 

 been suddenly turned. From what other channels has 

 it been diverted ? If we say it comes from the recent 

 general increment of wealth or the fictitious increment 

 due to inflation, then we can put the question in another 

 way: For what would this eight billions of dollars be 

 spent if there were no motor cars? 



I do not know that the question can be answered 

 statistically but perhaps you get an answer from indi- 

 vidual observation or experience. When a man buys a 

 car and spends say a thousand dollars a year on it in 

 interest, depreciation and supplies, what does he 

 economize on? Does he take it out of his savings or 

 what he otherwise would have laid up for a rainy day? 

 But savings and investments have also increased during 

 this period. Does a family after it owns an auto spend 

 less on clothing or food or theatres or books or summer 

 resorts or golf? Or does it spend more? Is there a 

 saving on shoe leather by using rubber tires? But 

 more is spent on shoes and clothing than there used to 

 be. So of almost everything else. The only field in 

 which a definite falling off can be discerned and ascribed 

 to the introduction of the auto is in carriages, city sta- 

 bles and the like, but this is little compared with what is 

 spent on motor cars and motoring. 



The building of railroad mileage has been virtually 

 at a standstill for a number of years, though the popu- 

 lation and business activity of the country have been 

 increasing. It may be said, then, that a large part of 

 the money spent for motor transportation would other- 



