But, and the very, very high equity advantage of the banks it's done at such a percentage that the bank can't really lose. You're not really losing money because his replenishment capabilities and so forth, are really very high, and along with unjust terms.

At any rate, the banks then, Walter Chrysler found, the banks owned the automobiles. Then, furthermore, the salesman in order to be able to sell that car had to agree to take the car in. So, it, then again, the distributor couldn't buy all those cars, so the banks bought them. So we find the banks all the lots full of cars around the country here, your deposits own those. You don't know it, but the Bank Manager is very eager to get to be sure to get rid of those. And so far at least up till now he's done pretty well. And the equities they have, I say, are such that they can the mark can go fairly far off.

But, what Walter Chrysler discovered was: that if you advance car #1 your best car, too fast, it deteriorates the value of your second hand cars, it accelerates the deterioration, and the banks would not allow the automobile companies at Detroit to advance their models. They could be really quite superficial, where what they did was, then, to make a superficial change in the body and then in the styling departments of all these automobile companies, they were putting clay in the mud guards making these a little more streamlined each year. And then making them so the mud guards and everything outside looked different, but they were exactly the same chassis. There were gradual improvement of the better brake where the brake is. There were some engineerings that did get better, but this was really very slow. And the changes were really entirely superficial.

So that the banking equity was not in jeopardy. In other words, it was not a matter of the automobile companies wanting to produce the Dymaxion Car, they just found they couldn't.

Now, I've told all that to you because, after W.W.II, W.W.II found all the enormous production capability of Detroit wanting to get in on the enormous money of W.W.II, so that they had to agree to give up their automobile production while they were getting out the tanks and everything else. But all of the automobile companies, then, agreed, one with the other, and they advertised that everyone wanted, the men when they got back, wanted to have their nice old car, that ran this way. I want my new Franklin, I want my nice new Franklin. But it's going to be just like that car so they advertised that this was what G.I. Joe wanted and so forth, keep everything for me so they kept all their dies.

Now new tooling of a car costs around oh about, my figures I haven't had this recently in 1951 I know it cost about $70 million to re-tool a new car. So they don't like to spend that kind of money. At any rate, they agreed to keep their tools. W.W.II technology advance was incredible. It meant then when the war was over, then, Italy and the foreign people were not in this mass production, but were really producing cars really went all steel, were very, very advanced. And the American companies came in, got out all the old dies, and they couldn't compete with the beautiful technology of the rest of the world.

As a consequence, they found that the distributors didn't like their automobile business anymore. The cars were not selling with the ease that they did. General Motors and Ford got enormous building programs where they get fancy new quarters Cadillac and Buick continually upping the sales rooms, trying to make things look more "schmaltzy" and so forth, but the distributor found that he just was having a very hard time to sell his cars because, in the meantime, labor rates were going up, everything was going up, and the margin of 30 or 40% that the distributor had was really eaten up by everything his rents and the works. He was going through a terrific headache, and making no money. So that he said, "I'm going to give up my dealership," and they realized he was a very good man, and they didn't want to lose him, so what the automobile companies started doing was designing a perfectly good car, but deliberately putting in inferior metal into this part or that part. It looked like just the way the part should look, and so it should really fool your eye alright, but it was designed to wear out in an hurry.

So they guaranteed that all their dealers selling cars that the customers would come back at least once a month and would pay so much, and what they did then was to advance the prices of the parts in the catalogue, to where if you wanted to put together a car out of the parts catalog of the Buick or so forth it would cost you four or five times what the Buick would cost. So that the only way they were able to keep their dealers was this is where the words "designed in obsolescence" came from. America, then, really started then cheating itself. It's own businesses deliberately fooling its own people. This was a fundamentally very unhealthy matter.

Well, I'll come to the point now, that I am renting my cars, and I find that when I rent the car because they, General Motors and Ford own their Avis and their Hertz and so forth, then they maintain the cars and they don't put in the bad parts. So when I rent my car I get a very superior car to anything I can buy, I assure you. And I can get almost a new car every time, and it's really very pleasant, and I can keep it as long as I want it. When I go out for Christmas time in California with my family, I'll rent a car for the month, and it's my car just as much as it ever was my car. There's no kidding about it, so this was just pure kidding myself about owning it.

And, so I simply see, this is the way it's going to go. I FIND OWNERSHIP BECOMING INCREASINGLY ONEROUS. I have moved a number of times and just finding very valuable, lovely old things that our grandmothers and grandfathers gave us years ago being stolen. Then we want to move from town to town and it costs you $25,000 and so forth. The OWNERSHIP IS BECOMING INCREASINGLY ONEROUS.

And I find all the big corporations are really realizing that, so Chrysler and Ford realized they've got to get into the renting business, and this is exactly what I said to you earlier. The only industries that are going to survive are going to be giving services, and they are going to be giving good services. And they are going to be continually improving the product because the better the product the more people use it. So if they earn just on the frequency of giving good service, it gets into a very different kind of a drive from what it has been trying to get you to buy something, and leave it up to you to get rid of it.

Now, I talked to you a lot about these things go off on these drives and I had a this is then relative, all these things I'm saying to you to the talk I gave you the other night about monies and banking and world economics and what's on the books and so forth, so you really, the best I can I want to get you to feel and understand the kind of accounting revolution that will come about. Where it will go from the ownership over to the service, where it will go from the just ownership blindly, to know-how. And the understanding that really the important part of wealth is the know-how part. That the material, just the rock by itself is nothing.