THE THEORY OF INTEREST

drive for five million, dollars to aid scientific research.Major General George 0. Squier reported in the Nation’sBusiness for January, 1929, that in the laboratory ofthe American Telephone and Telegraph Company alone,$15,000,000 yearly were being devoted to the work of re-search which employed four thousand specialists. Withrespect to research General Squier added:

“We hear of expenditures by the millions—$200,000,000 a yearby some estimates, $70,000,000 through the Government, and $130,-000,000 through commercial firms. Any comprehensive inventory ofour research resources would include the bulky items of plant andequipment, and the incalculable intangibles reposed in the 300,000physicists, chemists, engineers, mathematicians, and trained tech-nicians. As for suggesting the substance of this tremendous adven-ture, we may turn to the structures erected by the General ElectricCompany, the United States Steel Corporation, General Motors ,and the United States Rubber Company.”

A survey by the National Bureau of Economic Re-search revealed, in its announcement of May 4, 1929,the extent to which industrial research prevailed as anew trend in manufacturing progress in the UnitedStates . Of 599 manufacturing concerns supplying infor-mation, the report stated that 52 per cent recorded thecarrying on of research as a company activity. Testinglaboratories were conducted by 7 per cent, leaving aminority in which no research work was being done. Some29 per cent reported that they were supporting coopera-tive research conducted through trade associations, engi-neering societies, universities or endowed fellowships.Especially in cement manufacture, leather tanning, andgas and electric utilities, cooperative research was highlydeveloped.

Statistical research has added its quota to investment

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