Monopoly and the South

Abstract

More than eight years ago late President Roosevelt in a letter to members of Conference on Economic Conditions in South described plight of South as the Nation's Number One economic problem. You are familiar with substance of report of that conference. It drew a glaring portrait of an area rich in economic endowments but baffled in realization of its potential capabilities by hold of habit on economic outlook, by waste in economic resources, and by opposition of entrenched monopoly controls. Although it is not yet a decade since that report was completed, time has run and world has undergone irrevocable change. The South along with other great regions of United States threw its energy and its spirit into defense of freedom. In same way that immense drama of war and peace has altered economic facts and prospects elsewhere, so events of these years have left their imprint upon South. The South is now confronted by many profound questions which must be answered if its economic development is to continue and if it is not to slip back to doldrums of prewar years. Instead of becoming again a problem area, South, like West, undoubtedly will seek to retain its gains and to go forward in fulfillment of its capacities as a prosperous productive region within an expanding national economy. It may at once be said that gains which have been made during war years are striking. Their extent may be judged from a report recently issued by Department of Labor. This study, based upon a comprehensive survey of southern states from Virginia to Texas, offers a far different picture than that which this same region presented in 1938. New industries have grown up, products never made in South before war are now manufactured here, and both per capita income and productivity have risen at rates as high as or higher than in any other part of country. The percentage of total national income for which South now accounts is larger than at any time in history. During war years South has substantially reduced its indebtedness, thereby decreasing its interest-tribute to North, and increasing southernowned equity in southern industry. This new equity can be used by southern enterprisers to strengthen their hand in control and operation of southern industry, free and independent of northern domination. This, in most general terms, constitutes bright side of picture. It is a panorama of hope and promise, but it is not enough to warrant complacence about future. The South must progress a long way to reach economic parity with North and to throw off what has been described as its economic colonial status. The great bulk of southern industry, transportation, and commerce is still controlled by North. Monopoly during war strengthened its hand everywhere, including South. Absentee ownership and control of southern indus-