Resources for Financing Industry in the South

Abstract

In considering the many factors which have a bearing upon the development of southern industry, the question of the availability of funds within the South for financing a major industrial expansion should not be neglected. The existence of the problem of adequate financial resources is generally recognized, but, after having recognized the problem, there is some tendency to regard it as one which will be self-correcting when other factors retarding the development of southern industry are removed.' That this position is substantially correct cannot be denied. The financial resources of a region do and will increase with increases of real wealth and income. And it is mainly to these increases in real wealth and income that one must look for the basic causes of expanding financial resources. Yet, while the validity of this position is admitted, it cannot be denied that the existence of greater financial resources substantially facilitates a region's industrial growth. Further development of industry and greater financial resources will go hand in hand, and enlargement and improvement of the South's financial institutions will facilitate the development of industry just as the development of industry will increase the region's financial