NOTES

CHAPTER ONE

1. It was thirty years ago that I wrote of the United States: "Yet most of its people are, paradoxically, very poor; most of them own nothing but a few sticks of furniture and the clothes on their backs." America's Sixty Families, hereafter coded as ASF, Vanguard Press, N.Y., 1937. Those lines, which some critics accepted only as extravagant hyperbole, were written during a vast economic depression but the statement holds literally true of boom periods too, which are different only in that people have low-paid jobs.

2. Carl Bakal, The Right to Bear Arms, McGraw-Hill, N.Y., 1966, p. 1.

3. Jack Anderson, Washington Exposé, Public Affairs Press, Washington, D.C., 1967, pp. 447-58.

4. For a preliminary insight into the extent of the American military-industrial establishment, see Fred J. Cook, The Warfare State, Macmillan, N.Y., 1962. As to the effects of the military-industrial establishment, see Seymour Melman, Our Depleted Society, Holt, Rinehart and Winston, N.Y., 1965.

5. Studies of the concentration of wealth have been: G. K. Holmes, "The Concentration of Wealth," Political Science Quarterly, December, 1893, PP- 589-600; C. B. Spahr, The Present Distribution of Wealth in the, United States, N.Y., 1896; W. R. Ingalls, Current Economic Affairs, York, Pa., 1924, and Wealth and Income of the American People, York Pa., 1924 using income-tax data for the first time; W. I. King, "Wealth Distribution in the Continental United States at the Close of 1921," Journal of the American Statistical Association, June, 1927, PP- 135-53; Frederick R. Macaulay, Income in the United States, II, National Bureau of Economic Research, N.Y., 1922, PP- 424-25; Lewis Corey, The Decline of American Capitalism, N.Y., 31934; W. L. Crum, The Distribution of Wealth, Boston, 1935, study of estate-tax returns, 1916-33; R. R. Doane, The Measurement of American Wealth, N.Y., 1933; Maxine Yaple, "The Burden of Direct Taxes as Paid by Income Classes, American Economic Review, December, 1936; Fritz Lehmann (with Max Ascoli), Political and Economic Democracy, N.Y., 1937; Charles Stewart, "Income Capitalization as a Method of Estimating the Distribution of Wealth by Size Groups," Studies in Income and Wealth, III; and Mary S. Painter, "Distribution of Wealth in Estates and Estate Tax Yield," unpublished ms., NBER, 1946. These historical sources are cited by Lampman (q.v.).

6. The National Bureau of Economic Research, sponsor of the study, was founded in 1920 as a nonpartisan, nonprofit organization to study economic problems. Its many studies have been executed by economists of impeccable repute. Among its directors are Marion B. Folsom, director of the Eastman Kodak Company; Crawford H. Greenewalt, chairman of E. I. du Pont de Nemours and Company; Gabriel Hauge, president of the Manufacturers Hanover Trust Company of New York; Albert J. Hettinger, Jr., partner of the international banking house of Lazard Frères and Company; and Charles G. Mortimer, chairman of the General Foods Corporation, as well as others. The big enterprises are interested in such data as part of market research; for there are absolute financial limits to the market for products of various kinds, particularly costly items like houses, cadillacs, yachts, airplanes, world cruises and fallout shelters but also for many relatively inexpensive massprocessed products.

7. Robert J. Lampman, The Share of Top Wealth-Holders in National Wealth, 1922-1956. A Study by the National Bureau of Economic Research. Princeton University Press, Princeton, N.J., 1962, p. 14.

8. Ibid., p. 23.

9. Ibid., pp. 23, 192-93.

10. Ibid., pp. 202, 204, 209.

11. Ibid., p. 213.

12. Ibid., p. 220.

13. Ibid., pp. 86-87.

14. Ibid., p. 84.

15. Ibid., pp. 84, 276.

16. Ibid., p. 217.

17. A. A. Berle, Jr., The American Economic Republic, Harcourt, Brace & World, N.Y., 1963, p. 221. Professor Berle finds even more sunshine than this in the Lampman text. Lampman set it forth, as Berle notes, that the top 1.4 per cent received 14.2 per cent of all income though they held more than 25 per cent of wealth and that the top 1 per cent of adults, though they held 25 per cent of personally owned wealth, Berle said, are "only able to save 15 per cent of all saving." Apart from the fact that this 15 per cent of savings is disproportionately large, not subject to rapid depletion for personal emergencies, and hardly deserving of the diminishing qualification "only" (at this same rate the upper 8.4 per cent would have 90 per cent of all savings!), Berle does not let on that dividend income paid to stockholders in the aggregate represents less than half of corporate earnings; the balance is ploughed back into the companies but accrues to the account of the owners and can be personally captured by the sale of some stock. Income received by wealth-holders, then, is only part of income actually accrued to their accounts. Such accrued undistributed corporate income amounts in effect to concealed personal income. Berle asserts happily that the United States "has gone a considerable distance toward socializing income," although what this means other than something mysteriously and vaguely pleasant is far from clear.

18. James D. Smith and Staunton K. Calvert, "Estimating the Wealth of Top Wealth-Holders from Estate Tax Returns," Proceedings of the American Statistical Association, Philadelphia annual meeting, September, 1965, 19 pp.

19. Lampman, passim. Lampman brings out, for example, that the median age of top wealth-holders in 1953 was 54 years, with more than half 40 to 60 years old. The median age of the entire adult population was 44 years. Of the top wealth-holders 72 per cent were married, 16 per cent were widowers or widows, 3 per cent were divorced or separated and 9 per cent were single. About 85 per cent of the men were married; only about half the women. "... the wealth-holders form a larger part of the widow and widower population than of any other marital status group" (p. 100). While there were more women than men with over $1.5 million of gross estate, women held only 40 per cent of the wealth. "The information on top wealth-holders furnishes little support for the popular idea that women own the greater part of American wealth" (p. 20). Many women appear among the top wealth-holders because of the practice of estate-splitting that has developed since the introduction of the income tax and the estate tax. They are also heirs of wealthy fathers and husbands--in brief, few made it by economic efforts of their own. But only 25 per cent of all aged couples received any income at all from assets in 1951 (p. 91). Succinctly, only one in four aged Americans succeeded in making even meager provisions for retirement. Occupation was found to be an important determinant of income, with nearly three-fourths of the upper 2 per cent of income recipients independent professionals, businessmen and executives, and one-tenth farmers (pressumably operators of large-scale industrial-type farms).

20. "Survey of Consumer Finances," Federal Reserve Bulletin, 1953, Supplementary Table 5, p. 11.

21. Statistical Abstract of the United States, 1964, Michigan Survey, p. 474

22. Ibid., p. 473.

23. New York Times, May 2, 1965; IV, 4:1.

24. Statistical Abstract, 1964, p. 474.

25. Temporary National Economic Committee, 76th Congress, 3rd session, Survey Of Shareholdings in 1,710 Corporations with Securities Listed on a National Securities Exchange, Government Printing Office, Washington, D.C., 1941. Monograph No. 30, p. 241.

26. Lewis H. Kimmel, Share Ownership in the United States, Brookings Institution, Washington, D.C., 1952, pp. 43, 46.

27. J. Keith Butters, et al., Effects of Taxation--Investment by Individuals, Harvard Business School, Boston, 1953, p. 85.

28. Survey, cited in text, p. 151.

29. Ibid., p. 148.

30. Ibid., p. 151. 31. Ibid., p. 136.

32. Ibid., p. 96.

33. Gabriel Kolko, Wealth and Power in America, Praeger, N.Y., 1962, pp. 49, 70, 89-91, 94, 109, 130-31.

34. Ibid., p. 34.

35. Ibid., p. 48.

36. W. J. Cash, The Mind of the South, Knopf, N.Y., 1954, p. 115.

37. Statistical Abstract, 1964, p. 336.

38. New York Times, May 3, 1965; 24:3.

39. New York Times, May 2.7, 1965; 4:5.

40. Kathleen M. Langley, "The Distribution of Capital in Private Hands in 1936-38 and 1946-47," Parts I and II, Bulletin of the Oxford University Institute of Statistics, December, 1950, Table XIII, p. 352; February, 1951, Table XVB, p. 46. Cited by Lampman, pp. 211, 216.

41. London Times dispatch cited in Felix Greene, A Curtain of Ignorance, Doubleday, N.Y., 1964, pp. 112, 141.

42. The great amount of intermarriage among wealthy Americans, and with titled Europeans, is given considerable discussion in ASF, pp. 9-18.

43. Associated Press dispatch to the New York Times, December 26, 1960.

44. Paul Woodring, A Fourth of a Nation, McGraw-Hill, N.Y., 1957.

45. Cleveland Amory, Who Killed Society?, Harper, N.Y., 1960, p. 476.

46. Ibid., index.