Private investment

“ For the private sector, instead of a sweeping capital gains windfall to the wealthy and those who speculate, we will create an investment tax credit and a capital gains reduction for patient investors in emerging technologies and new businesses. ”

“ It will require large outlays of money which should be raised through normal investment channels. But while private capital should finance this expansion program, the Government should recognize its responsibility for sharing part of any special or abnormal risk of loss attached to such financing. ”

“ The number of business men to-day in possession of funds in excess of their private wants and business requirements is far greater than it was ten years ago, and is constantly increasing. These men are confronted with a real investment problem. ”

“ The government granted tax exemptions, priority dollar allocations for raw materials, easy credit for essential industries, and protection through controls. Stimulated by these development policies, a stepped-up rate of investment both in the public and the private sectors yielded significant gains. ”

“ The capitalist may take his choice of any of these forms of investment, or he may turn to private, industrial or municipal securities which are constantly being offered on excellent terms and based upon unimpeachable assets. ”

“ The essential features in the adoption of any plan should be that the returns of the private owner should be in proportion to the skill and economy which he exercises in managing his business; that competition and its resulting waste be done away with; and that the industry be placed on such a safe and stable basis that the capital invested in it shall receive the lowest possible rate of interest, thus leaving the greatest possible amount for the payment of wages of labor and permitting sales of the product at a low price. ”

“ One is to sell it to a limited company which in return for certain concessions kindly puts up the necessary capital for development; the other way is to find the capital out of one's own private resources, and annex all the resultant profits. ”

“ If the circumstances of society are such as to furnish a ready investment of disposable capital; (as for instance in London, where the public funds and other securities, of undoubted stability, and affording great advantages for receiving the interest without trouble and realizing the principal without difficulty when required, tempt all persons who have sums of importance lying idle, to invest them on their own account without the intervention of any middleman;) ”

“ Our country must become an investment destination, capitalizing on the Corporate Recovery and Tax Incentives for Enterprises or the CREATE Law and the economic liberalization laws such as the Public Service Act and the Foreign Investments Act. ”

“ Here, too, is joint venture on the part of the Community just as much as on the part of Labor, Capital, or Management. What is 99 per cent. of the expenditure of government in normal times but outlays in the nature of investment in industry: investment in property and services of one kind or another, which alone makes possible the vast co-operation and co-ordination of effort which is the very life-blood of industry? The vaster industrial organization becomes, the more it depends, in a multitude of directions, upon the investments of the Community. ”

“ Effects of Drawing Interest from Investments beyond the Social Boundary.—Not all of these are consumers' goods. Some capital goods are imported and, moreover, many consumers' goods are passed over to the group called HH ́ ́ ́ in our table,—the one that makes active instruments of production,—and in this indirect way the earnings of capital invested abroad add to the amount of capital at home. In the long run the exportation of funds for permanent investment may, by its other and more indirect effects, increase the supply of them at home. ”

“ I desire, if it may be, that the corporation may have full liberty to invest its funds according to its own best discretion, without reference to, or restriction by, any laws or rules, legal or equitable, of any nature, regulating the mode of investment of trust funds; only I wish that neither principal nor income be expended in land or buildings, for any other purpose than that of safe and productive investment for income. ”

“ Its powers are wholly derived from legislation. It possesses them for the convenience of business at the sufferance of the public. Its stock is widely owned, passes from hand to hand, brings multitudes of men into its shifting partnerships and connects it with the interests and the investments of whole communities. It is a segment of the public; bears no analogy to a partnership or to the processes by which private property is safeguarded and managed, and should not be suffered to afford any covert whatever to those who are managing it. ”

“ They dispose of 49 per cent. of the holding company's stock to the public, retaining a working majority. At one step they have secured absolute control of a $10,000,000 industry with an investment of little more than one-quarter of that amount, and by pursuing the same process further they can reduce the investment necessary for controlling the industry almost to the vanishing point. ”

“ Devoting one's time and energies to the affairs of a corporation is not of itself, and without more, a trade or business of the person so engaged. Though such activities may produce income, profit or gain in the form of dividends or enhancement in the value of an investment, this return is distinctive to the process of investing and is generated by the successful operation of the corporation's business as distinguished from the trade or business of the taxpayer himself. ”

“ The capital of those who live on the interest of their own fortunes has generally sought and found some fixed investment, such as the public funds, mortgages, or the bonds of public companies, which investment, except under peculiar temptations or necessities, is not changed. ”

“ The weight of money in the hands of companies, and the public encouragement given, them, crush the efforts of private adventurers, while their success inspires emulation, and a desire in every individual to carry on a trade equally profitable.
Here a statesman ought nicely to examine the advantages which the company reaps from the incorporation of their stock, and those which proceed from the public encouragement given to the undertaking; that with an impartial hand, he may make an equal distribution of public benefits. ”

“ Capital has been accumulated by great corporations, known as “trusts,” which occupy gigantic buildings and use larger and more costly machinery than was ever before known. Even private life is affected in manifold ways by recent inventions. ”

“ Towards this end, public policies should learn from the experience of more advanced countries by encouraging the establishment of investment houses quite distinct from the mutual funds. This will further strengthen the financial basis of the economy and assure sources of long-term funds for desirable productive ventures.
D. Economic Nationalism and Trade
Even as we are making provisions for expanding production, we have attended to increasing outlets for our output. ”

“ As a matter of course, the employment as additional capital in one's own enterprise is generally the most desirable wherever applicable, but this is a use of limited scope, relating to but few of the people engaged in productive activity who earn and save a surplus. The main resource for such accumulations is in safe investments, in the bonds and securities of our own country and those of well established enterprises. Not many among our embryo capitalists possess the experience or skill requisite for the safe and proper investment of their funds, they must rely upon the advice of others. ”

“ It is too powerful a weapon in the hands of those alive to its possibilities, enabling a small group of men with a relatively insignificant investment of capital to control a country-wide industry. Take the simplest possible illustration: The industry of manufacturing a particular commodity is carried on by a number of corporations scattered throughout the country with an aggregate capitalization of, say, $10,000,000. A, B, and C form a holding company to acquire a bare majority of the stock of each corporation, say $5,100,000 in the aggregate. ”

“ In this way there would be brought to the management of public affairs, and the administration of common funds,460 the skill, the attention, the fidelity, and integrity that can now be secured only for private interests, and a railroad or gas works might be operated on public account, not only more economically and efficiently than as at present, under joint stock management, but as economically and efficiently as would be possible under a single ownership. ”

“ Turn where one may, it is the Community that makes possible all the activities of industry, and helps to determine their value and scope.
Community investment is supposed to receive its return in enhanced purchasing power to consumers as respects the number and quality of available services and commodities. This is a return akin to the interest Capital receives, and to the wages Labor receives. But is not the Community equally entitled, on grounds of investment, to a voice in the control of industry and in the shaping of industrial policy? ”

“ Production on a large scale is greatly promoted by the practice of forming a large capital by the combination of many small contributions; or, in other words, by the formation of stock companies. The advantages of the principle are important, [since] (1) many undertakings require an amount of capital beyond the means of the richest individual or private partnership. ”

“ Invested capital—that is, capital sunk in enterprises which society will recognise as belonging to the old order—will take the alarm and fall in value enormously, while, on the other hand, capital seeking investment will welcome an outlet which has long been its sorest need. Invested capital will in its opposition be further weakened by another consideration. ”

“ The facilities which these Joint Stock Companies offer for the investment of capital, even of the smallest amount, the temptations which the prospect of large profits hold out, and the low interest obtained on national stock of every description, have attracted a vast body of capitalists, small and great, who have subscribed to these undertakings with the real intention of investment. ”

“ Such business cannot be included in the commercial affairs of the country, economically speaking, because they are essentially trust transactions, and the funds, generally, belong to the investment class. ”

“ It is also argued that to determine whether it is better to manufacture or to buy goods in the open market, and whether it is better policy to manufacture by means of expensive machinery and other equipment or by manual labor, interest on investment must be considered. ”

“ Capital investments were stimulated in both domestic and foreign sectors through the issuance of an Administrative Order to guide investments, the approval of an amendment to the Corporation Law to allow broader investments in mining ventures, and the enactment of an Investment Incentives Act designed to induce the rapid growth of industries. ”

“ At present, they do not seek investment outside of corporate limits, and, of course, the money they have been intrusted with, must be about all invested, and cannot be called idle money, or there could be no interest paid to its owners. ”

“ We must also nurture a stable capital market -- one that will encourage long-term investment confidence; mobilize efficiently domestic savings and foreign investments for our social and physical infrastructure; and work in conformity with international standards. Development of this capital market will require the passage of the Securities Regulation and Enforcement Act, and the Revised Investment Company Act -- both of which are already with this Congress. ”

“ Capital's contribution to industry is in the nature of material substance loaned by way of investment. Its possessor may be any kind of person, from a social parasite or ne'er-do-well, who is the inheritor of a fortune, to an infant totally incapable of any service to industry, and whose property is necessarily held in trust. ”

“ Well, the equivalent of that for home retrofits would be "Cash for Caulkers" -- (laughter) -- and what we would do is engage private enterprise, the likes of a Lowe's or a Home Depot, these organizations that have tens of millions of people a week coming into their storefronts, and use that private capital to incentivize consumers to then work with our out-of-work trades -- remodelers, production builders -- to do this kind of work. ”

“ In brief, our position is, that whenever, by the efforts of all parties to be advantaged—local landowners, manufacturers, merchants, trunk-line shareholders, &c., the capital for an extension can be raised—whenever it becomes clear to all such, that their indirect profits plus their direct profits will make the investment a paying one ”

“ This view of the development challenge underlines in each and every case our basic economy policies, particularly those governing the role of private enterprise in the economy. There have been questions raised as to the role of private enterprise. ”

“ There is reason to believe that large amounts of capital, both at home and abroad, are ready to seek profitable investment in the advancement of this useful and most civilizing means of intercourse and correspondence. ”

“ In the same country and under similar conditions otherwise than in respect to ownership and control, public ownership tends as a rule to make lower rates than private ownership. This tendency results from the fundamental difference of aim between the two systems. Private monopoly aims at dividends for stockholders; public ownership aims at service for all. A normal public institution aims at the public good, while a normal private monopoly aims at private profit. ”