Evidence study no. 25 of the motion picture industry (1933)

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Foreign Problems <^ ^> <^ <^> <^ <^> 395 a more rapid rate than elsewhere. For one thing, there exists a great domestic market of high purchasing power, speaking substantially a single language, and interested in a general way in the same things.1 These conditions in themselves would have made possible a very large motion picture industry in the United States had it catered only to the domestic market. In addition to this, there are certain natural advantages which have been favorable to the development of the industry. There exists a great diversity of natural scenery, particularly in southern California; also the climate is such as to make possible the outdoor filming of pictures practically throughout the entire year. This was a special advantage during the early stages of the industry's development and before the invention of the "special" Panchromatic or fast film and the development in lighting. The industry was already well established by the time the World War broke out. In fact, it may almost be said that the European industry at that time was as well developed as was the American. The War, however, practically put a stop to the European production, whereas the American industry was permitted to grow without interruption. After the War, the rehabilitation of the industry in Europe was retarded because of the lack of capital, low purchasing power, heavy taxation burdens, and the pressure of essential reconstruction. In the United States, on the contrary, the purchasing power was at a higher level than ever. The use of the automobile caused people to leave home in search of recreation. Capital was liberally available for the construction of studios and theaters, for the study and improvement of technique, and, what was equally important, for the engaging of those European actors and actresses who were of real merit. Furthermore, the American burden of taxation was relatively light as compared with the European. In other words, the full value of the natural advantages possessed by this country could be capitalized to 1 This general statement is, of course, subject to limitations. Compare with pp. 82-84.