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JANUARY 1961
Economic Report
or me President
TRANSMITTED TO THE CONGRESS
Economic Report
of the President
TRANSMITTED TO THE CONGRESS
JANUARY 18, 1961
UNITED STATES GOVERNMENT PRINTING OFFICE
WASHINGTON : 1961
Additional copies of this report are for sale by the Superintendent of Documents,
U.S. Government Printing Office, Washington 25, D.C.
Price of single copy, $1
LETTER OF TRANSMITTAL
THE WHITE HOUSE,
January 18,1961.
To the Congress of the United States:
I present herewith my Economic Report, as required by Section 3 (a) of
the Employment Act of 1946.
The Report was prepared with the advice and assistance of the Council
of Economic Advisers., who, in turn, have had the assistance of the heads of
the executive departments and independent agencies directly concerned with
the matters discussed. Pursuant to the requirements of the Employment
Act, the Report summarizes the economic developments of the year and the
policy actions taken to promote balanced growth of the economy, appraises
the economic outlook, and puts forward a number of legislative proposals
designed to help achieve the purposes of the Act. The Report also reviews
the performance of the economy under the Employment Act, and particularly during the period of this Administration, and discusses policies for the
future in the light of this experience.
The major conclusions and recommendations of the Report are set forth
below, in part in the words of the Report itself.
As the year 1960 came to a close, the Nation was producing goods and
services at an annual rate of $503.5 billion, the same as in the third quarter
of the year, though slightly less than in the second quarter. For the year as
a whole, the total output of our economy, in dollars of constant buying
power, was 2.6 percent greater than in 1959.
Production and employment declined in the latter part of 1960, and unemployment rose, owing in large measure to an inventory adjustment. In
the first quarter, inventories were being built up at an annual rate of $11.4
billion, but in the fourth quarter they were being reduced at an annual rate
of $4.0 billion. It is encouraging, however, that the declines in production
and income were moderate. And it is especially important that final demands for goods and services—that is, the sum of the Nation's expenditures
except those resulting in inventory change—rose without interruption during
the year and in the final quarter reached the level of $507.5 billion.
The achievement of a reasonable equilibrium in the Nation's international
transactions continued to be a goal of our policies in 1960. The over-all
deficit in the United States balance of payments last year remained close
to that in each of the two preceding years, but the structure of the deficit
ill
changed markedly. Short-term capital outflows accelerated, mainly in
response to a widening of the margin by which interest rates abroad exceeded those in this country. But the deficit on all other transactions
diminished greatly, as a result of a rapid rise in exports.
The underlying strength of our economy, manifested in final demand for
goods and services, is a distinctly favorable element in appraising the economic outlook. So, also, is the fact that economic conditions today are free
of maladjustments and imbalances which, to be corrected, would require
prolonged contraction. Businessmen and consumers have kept their use of
credit within reasonable limits, and speculative excesses have been generally
avoided. Inflationary pressure has been restrained. While this may have
affected inventory policies and, perhaps, other demands for goods and services, it has helped to prepare a solid foundation for a resumption of sustainable growth. Because action to maintain balance and to consolidate gains
was taken in good time, we can look forward, provided public and private
policies are favorable, to a period of sound economic growth from a firm
base.
The Federal policies needed to promote balanced growth can, to a considerable extent, be applied under existing administrative authority. But there
are certain areas in which legislative action is needed.
First, funds appropriated by the Congress for the fiscal year 1962 should
be held within the limits of expected revenues. A budget conforming to
this standard has been presented to the Congress. It makes certain suggestions for revenues to cover projected expenditures, including necessary extensions of taxes that would otherwise terminate or be reduced on July 1,
1961; an increase in the highway fuel tax to 4^2 cents per gallon, to supply
needed funds in the Highway Trust Fund; the rescinding by the Congress
of action taken in 1959 which would divert funds from the general fund of
the Treasury for road construction; and a rate increase to place the postal
system on a self-supporting basis.
Second, Congress should give the Secretary of the Treasury authority to
raise funds in the long-term capital market when, in his judgment, this is
in the public interest, even if the cost of the funds is above 4^4 percent.
The existing ceiling remains an important impediment to the Treasury's
flexibility in achieving significant debt lengthening.
Third, as I have pointed out to the Congress each year since 1955, legislation is needed to enable the Federal Government to give constructive
assistance to areas where there is high and persistent unemployment. The
character of the legislation needed is described in the Economic Report,
and an Administration proposal drafted to meet the standards indicated
has been placed before the Congress.
Fourth, legislative needs in the areas of health, education and welfare,
antitrust enforcement, long-term agricultural adjustment, unemployment
compensation, and housing and community development are outlined in
the Report. These are also described in the Budget Message.
rv
Finally, I recommend again that Congress amend the Employment Act
of 1946 to make reasonable price stability an explicit goal of national economic policy, coordinate with the goals of maximum employment, production, and purchasing power now stated in the Act. The amendment
proposed is limited to a change in the language of the Act's declaration of
policy and would accomplish its aim without placing restrictions on the
effective operation of economic markets. It would strengthen the Employment Act which, as the Economic Report shows, has been a useful statute
under which our citizens have made notable further advances in their
welfare.
DWIGHT D. EISENHOWER.
CONTENTS
Page
INTRODUCTION
CHAPTER 1. Economic Developments and Policies in 1960
Principal Sectors of Demand
Inventories
Plant and Equipment Expenditures
Residential Construction
Net Exports
Government Expenditures
Consumption and Income
Employment and Unemployment
Prices
Agriculture
Monetary and Fiscal Areas
Monetary and Credit Policy
Fiscal and Debt Management Policies
Federal Housing and Home Financing and Aid for Highways. .
International Economic Developments
Economic Expansion Abroad
United States Payments Dejicit
Policies for Reducing the Payments Dejicit
International Economic Policies
Outlook
CHAPTER 2. Experience Under the Employment Act of 1946
Background and Meaning of the Employment Act
Adjustment from Wartime to Peacetime Economy
Expansion of National Output
Growth of Resources for Production
Strengthening of Our Enterprise System
Improvement of Personal Security and Welfare
Greater Economic Stability
Lessons of Experience Under the Employment Act
CHAPTER 3. Policies for the Future
Government and Private Policies
Maintenance of Price Stability
Tax Policy
Measures to Reduce Unemployment
Education and Health Services
International Responsibilities
Statistical Information
Legislative Proposals
VII
xi
1
4
4
6
6
7
7
7
10
15
19
21
21
28
32
33
35
36
39
40
41
45
45
47
48
49
50
51
52
53
56
57
58
59
60
61
62
63
64
APPENDIXES
A. Report to the President on the Activities of the Council of Economic Advisers During 1960
B. Some Recent Economic Developments
I. Employment and Earnings
II. Agriculture
III. United States Foreign Trade and Payments
C. Statistical Tables Relating to Income, Employment, and Production
Page
69
79
81
93
107
121
LIST OF TABLES AND CHARTS
(Chapter 1 and Appendix B)
Tables
1. Gross National Product, 1958-60
2. Changes in Book Value of Manufacturing and Trade Inventories,
1959-60
3. Changes in Consumer Price Index, 1959 and 1960
4. Net Changes in Commercial Bank Holdings of Loans and Investments, 1955-60
5. Changes in Selected Liquid Assets Held by the Public, 1957-60. .
6. Federal Budget Expenditures, 1959-62
7. Federal Budget Receipts, 1959-62
8. World Exports, 1959-60
B-l. Growth of the Labor Force, by Employment Status, 1959-60.
B-2. Growth of the Labor Force, by Sex and Age, 1950-60
B-3. Changes in Nonagricultural Employment, by Major Industry
Groups, October 1959-December 1960
B-4. Industrial Structure of Nonagricultural Employment, 1929,
1947, and 1957-60
B-5. Civilian Nonagricultural Employment, by Major Occupational Groups, 1930, 1947, and 1957-60
B-6. Employees Receiving Wage Increases Under Major Labor
Agreements, by Size of Increase, 1956-60
B-7. Farm Production, Prices, Assets, and Liabilities: Selected
Data, 1953, 1956, and 1958-60
B-8. Net Farm Income of Selected Types of Commercial FamilyOperated Farms, 1953, 1956, and 1958-60
B-9. Number of Farms, by Economic Class, 1950, 1954, and 1959.
B-10. Number of Farms, by Acreage Groups, 1950,1954, and 1959.
B-l 1. Production Assets Used in Agriculture, 1940, 1950, and 1960.
B-l 2. Farmers' Cooperative Associations and Their Membership, by
Type
B-l 3. Net Business Volume of Farmer Cooperative Associations
Engaged in Marketing, Farm Supply, and Related Services, 1957-58
VIII
2
4
16
25
27
28
30
36
81
82
85
86
86
91
94
96
97
99
100
101
102
Tables
B-14. Acreage Reserve and Conservation Reserve Programs,
1956-60
B-15. Conservation Reserve Program Acreage Under Contracts
for Future Years, 1961-69
B-16. Total Population and Population in Low-Income Farming
Areas, 1950 and 1960
B-17. United States Balance of Payments, 1959-60
B-18. United States Merchandise Exports, 1956-60
B-19. United States Merchandise Imports, 1956-60
B-20. Treasury Bill Rates in the United States, Canada, and the
United Kingdom, 1958-60
B-21. Expenditures for Foreign Economic Assistance and Other
Contributions to Less Developed Countries, 1956-59 Total.
B-22. Industrial Countries' Shares of Exports of Manufactures,
1938, 1950, and 1957-60
B-23. United States Merchandise Exports to Western Europe,
1956-60
B-24. Measures of Demand for United States Imports, Selected
Years, 1929-60
Page
104
104
106
107
109
110
113
115
117
118
119
Charts
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Gross National Product
Growth of Credit
Personal Income, Spending, and Saving
Corporate Profits
Civilian Labor Force
Employment in Nonagricultural Establishments
Hours and Earnings in Manufacturing
Consumer Prices
Wholesale Prices
Indicators of Agricultural Conditions
Member Bank Reserves and Borrowings
Stock Prices and Stock Market Credit
Money Supply
Interest Rates and Bond and Mortgage Yields
Surplus or Deficit of the Federal Government. .
U.S. Balance of Payments
U.S. Merchandise Exports and Imports
IX
,
3
5
9
10
11
13
14
17
18
20
22
23
24
26
29
34
37
INTRODUCTION
This Economic Report is the eighth prepared by this Administration
pursuant to the provisions of Section 3(a) of the Employment Act of 1946,.
Since the eight Reports cover a period that embraces more than half of
the lifetime of the Act, the present occasion seems an appropriate one
for a brief survey of the performance of our economy since 1946 and an
exploration of the challenges and opportunities of the years ahead.
Accordingly, these topics are treated here, as well as the required review
of 1960 and the examination of issues that will more immediately concern
the new President and the new Congress.
The first chapter in the Report reviews the outstanding economic
developments of 1960, describes the policies pursued by the Federal Government during the year to help achieve the purposes proclaimed in the
Employment Act, and appraises the economic outlook for the next year.
The second chapter considers the Nation's economic performance during
the entire period since 1946, and in particular during the eight years
spanned by the present Administration. In the light of this experience
we can appreciate more fully the vigor of the American economy and its
promise for further improvement of the welfare of our citizens. The third
chapter identifies major problem areas to which attention should be directed
in the future and for which effective policies and programs should be devised
within our proven economic, political, and social framework. In addition,
Chapter 3 presents proposals for the legislation needed to help achieve the
purposes of the Employment Act. These include some items which were
presented in last year's economic program of the Administration and on
which action has not yet been taken; they merit renewed consideration in
the current economic context.
It is not amiss here to mention an observation made several times in
this Report: the history of the past 15 years offers a solid basis for confidence in the continued efficacy of the American system of complementary
private and public endeavor. This concept of shared responsibility for
economic growth and improvement, so clearly reflected in the declaration
of policy of the Employment Act, points the way to sound achievement,
in a changing domestic and international environment, of the common
economic purposes of all Americans.
XI
Chapter 1
Economic Developments and Policies in 1960
E
MPLOYMENT, production, and income in the United States attained
in 1960 levels well above those of 1959. The advances, however,
were concentrated in the first half of the year; in the second half, production
and employment declined and unemployment rose. For the year as a
whole, the gross national product in current prices was 4.4 percent higher
than in 1959; in constant prices, the increase was 2.6 percent.
The improvement in the first part of 1960 was an extension of the advance
that had begun in the spring of 1958; this expansion had been aided by the
fact that consumer income and outlays had fallen very little during the
preceding contraction. Before mid-1958, personal income began to rise,
and consumers increased their spending. These developments helped to restrain, and later to reverse, the severe inventory liquidation that had been in
progress. Subsequent impulses came from an upward turn in outlays on
residential construction followed by a renewed advance in plant and equipment expenditures. Throughout 1958, Government expenditures for goods
and services continued to rise fairly steadily. With a substantial Federal
deficit and an easing of monetary policy, the expansion of the economy
proceeded vigorously, supported by steadily mounting consumption.
Expansionary forces continued to show strength in 1959, although they
were distorted by the effects of the steel strike. As prices began to rise
after a year of approximate stability and more serious inflationary pressures
threatened, Federal Reserve authorities increased the degree of monetary and credit restraint that had been initially applied in the summer of
1958. Moreover, the gap between Federal cash receipts and expenditures
(seasonally adjusted) was being steadily reduced in accordance with the
program for a balanced budget.
In the early part of 1959, the rise in economic activity was accelerated
by the anticipation of a steel strike and by the further build-up of inventories which this tended to promote. The long strike that marked the
second half of 1959 reversed this process in some measure. Inventory
investment dropped markedly, and employment and income declined. In
response to these developments, the rise in final demands—the sum of
the Nation's expenditures on goods and services except those resulting in
inventory change—slackened during the second half of 1959. However,
with continued strength in the underlying expansive forces, economic
activity fell less drastically than might have been expected in the face of
this stoppage in one of the major industries of the Nation.
The halting of the steel strike by a Federal court injunction in November brought an upsurge in economic activity. Steel users rushed to rebuild
depleted inventories, and automobile production was stepped up sharply.
By the end of 1959, demands that had accumulated during the strike
led to widespread expectations of a strong boom and further inflationary
pressures.
Fears of inflation, however, were lessened by other developments. Monetary authorities had brought credit expansion under effective control. The
budget proposed for the fiscal year 1961 showed a substantial surplus.
The terms under which the steel strike had been halted were believed to be
favorable to stable prices for steel and other products; and the competition
from abroad that was felt by a widening range of American industries
also served as a restraint on prices. Inventories were restored rapidly in
early 1960, and industrial capacity generally was found to be ample.
As 1960 progressed and as stocks approached or exceeded the volume
deemed appropriate to the sales actually experienced, the high rate of
inventory investment declined. On the other hand, expenditures for fixed
investment and for consumption, as well as the export balance, increased.
In the second quarter, gains in final demand outweighed the drop in inventory investment, and gross national product (GNP) continued to advance,
albeit more slowly than in the first quarter (Table 1 and Chart 1). Employment and income also showed good gains.
In the second half of the year, expenditures on business plant and equipment, as shown in the Securities and Exchange Commission—Department
TABLE 1.—Gross national product, 1958-60
[Billions of dollars, seasonally adjusted annual rates]
Change in gross national product
from preceding quarter
Gross national product
Period
Total
Final
purchases
Change in
business
inventories
Total
Final
purchases
Change in
business
inventories
1958: First quarter
Second quarter
Third quarter
Fourth quarter
432.0
436.8
447.0
461.0
438.9
441.3
448.6
458.1
-6.9
-4.5
-1.6
2.9
-10.3
4.8
10.2
14.0
-4.6
2.4
7.3
9.5
-5.7
2.4
2.9
4.5
1959: First quarter
Second quarter
Third quarter
Fourth quarter
473.1
487.9
481.4
486.4
465.5
476.4
481.5
481.7
7.6
11.5
-.1
4.7
12.1
14.8
-6.5
5.0
7.4
10.9
5.1
.2
4.7
3.9
-11.6
4.8
1960: First quarter
Second quarter _
Third quarter !
Fourth quarter
501.3
505.0
503.5
503.5
489.9
499.7
502.9
507.5
11.4
5.3
.6
-4.0
14.9
3.7
-1.5
.0
8.2
9.8
3.2
4.6
6.7
-6.1
-4.7
-4.6
1
Preliminary estimates by Council of Economic Advisers.
Source: DepartmentrOf Commerce (except as noted).
CHART
1
Gross National Product
Final purchases advanced in 1960.
Inventory accumula-
tion was substantial early in the year but lessened thereafter and gave way to liquidation.
BILLK3NS OF DOLLARS
SEASONALLY
ADJUSTED ANNUAL RATES
^
500
GROSS NATIONAL
PRODUCT .
,.»**
,
/>*£
&• **
X
^* FINAL PUR
CHASES
450
~
' ^^^
>
<j
<^
_
_
25
CHANGE IN
BUSINESS INVENTORIES
,*x
0
-25
I
I
1957
I
I
I
1958
I
1
1
1959
1
1
1
1
I960
SOURCES: DEPARTMENT OF COMMERCE AND COUNCIL OF ECONOMIC ADVISERS.
of Commerce survey, began to decline, reflecting adequate productive capacity, diminishing profits, and a slowing down in the growth of demand. The
advance in consumer expenditures slackened despite a further, though more
moderate, rise in disposable income, and the rate of saving increased accordingly. Housing activity continued the decline that had begun in the
second half of 1959. Inventory expenditure continued to be a contractive force, as liquidation took place toward the end of the year. These
negative factors outweighed the major positive elements of demand—
rising exports and Government purchases—and GNP dropped slightly in
the third quarter. In the final quarter of the year, however, GNP remained
at its third quarter level.
PRINCIPAL SECTORS OF DEMAND
Inventories
The rapid restocking of inventories in the early part of 1960 and the
subsequent reversal of this movement were the principal factors shaping
the course of the economy during the year. In the first quarter, manufacturers of durable goods accounted for 60 percent of the total inventory
accumulation of more than $11 billion (annual rate), and automobile
retailers accounted for another 25 percent (Tables 1 and 2). In the second
quarter, the build-up continued, but the rate of accumulation was reduced
to about $5 billion, as producers found their needs more adequately covered.
The steel industry, in particular, accumulated sizable supplies of finished
steel and materials during that quarter.
TABLE 2.—Changes in book value of manufacturing and trade inventories', 7959-60
[Billions of dollars, seasonally adjusted annual rates]
Change from preceding quarter 1
1959
Industry group
1960
First
quarter
Second
quarter
Third
quarter
Fourth
quarter
First
quarter
Second
quarter
Third
quarter
Fourth
quarter a
5.6
11.0
-0.4
0.8
11.7
4.7
-1.3
-1.3
6.0
8.2
-2.6
-.7
10.3
3.1
-1.9
-2.3
4.4
.3
1.2
1.7
5.2
.9
2.1
1.9
-1.6
-.3
-.6
-.9
1.1
.3
-2.1
-2.3
6.7
.9
2.7
2.8
1.8
.5
.7
.8
-1.6
-.1
-.3
-.3
-3.2
-.3
1.2
1.4
Nondurable goods
-.4
2.8
2.1
1.5
1.4
1.6
.6
1.0
Manufacturing
Wholesale
Retail
.7
-.5
-.6
1.5
.8
.4
.7
1.0
.5
1.1
.2
.3
.9
-.2
.6
1.2
.3
.1
.0
.2
.3
.5
.9
-.4
Total
Durable goods
Manufacturing
Wholesale
Retail
Automotive
i Change in book value of inventories at end of periods; differs from net change in business inventories
component of GNP which relates to all industries and which includes an adjustment for inventory
valuation.
* Change from end of third quarter to end of November.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.
At midyear, total inventories in relation to sales were not large, measured
by historical standards. They were more substantial for some durable goods
manufacturers and for automobile retailers and relatively less so for many
producers of nondurable goods. As early as midyear, there was evidence
that manufacturers' inventories of purchased materials, notably steel, were
being reduced. Meanwhile, businessmen's holdings of finished products
increased further, a development which in part may not have been intended,
especially with regard to consumer durable goods lines. As the year progressed, inventory policies in some lines of business underwent modification in response to declining sales, less optimistic expectations, and ample
capacity of suppliers in many industries. The reduction in profits provided another incentive for more cautious inventory policies. Additional
CHART 2
Growth of Credit
The growth in business loans slowed down in I960, while
new issues of securities increased slightly.
BILLIONS OF DOLLARS
0
5
1958
1959
I960
10
15
CHANGE IN BUSINESS LOANS
AT COMMERCIAL BANKS V
1958
1959
CORPORATE SECURITY ISSUES:
NEW MONEY*/
I960
There was also less demand for credit by individuals and
by various levels of government.
BILLIONS OF DOLLARS
0
5
1956
1959
I960
15
10
INCREASE IN
CONSUMER CREDIT-^
1958
1959
I960
INCREASE IN
NONFARM
MORTGAGE DEBT
(I-TO 4-FAMILY HOMES)-17
1956
STATE AND MUNICIPAL
SECURITY ISSUES-^
1959
I960
1958
1959
CHANGE IN
U.S. GOVERNMENT
SECURITIES ±J±J
I960
I
-y CHANGE IN AMOUNT OUTSTANDING.
£/ NET PROCEEDS.
I/PRINCIPAL AMOUNTS.
^EXCLUDES GUARANTEED SECURITIES.
SOURCES: VARIOUS GOVERNMENT AND PRIVATE AGENCIES.
576899 O—61-
contributing factors may have been the greater confidence in price stability
and improving techniques of inventory control. As a result, inventory
reductions developed in some industries during the third quarter and became
more extensive in the final quarter of the year.
The changes in inventory policy were reflected in the business loans of
banks (Chart 2). During the early months of the year, bank credit of this
type increased more than seasonally, but subsequently, as businessmen slowed
their inventory accumulation and later shifted to inventory liquidation,
the expansion in credit was reduced markedly. Some easing occurred in
the availability of credit, and in August the prime rate for bank loans was
lowered from 5 percent to 4J4 percent.
Plant and Equipment Expenditures
Outlays for business plant and equipment, as reported by the SEGCommerce survey, which had started to advance in the fourth quarter of
1958, continued to rise in the first half of 1960, the most significant gain
occurring in the manufacturing industries. Total outlays in the six-month
period were 13 percent higher than in the first six months of 1959. During
the second half of the year, however^ these expenditures began to decline.
For the year as a whole, they exceeded expenditures in 1959 and approached,
but did not quite equal, the record level attained in 1957.
The financing in 1960 of the larger volume of plant and equipment
expenditures by corporations proceeded in an environment of generally
easing capital markets. Corporations other than sales finance companies
relied somewhat less heavily upon new issues of securities than in 1959,
although, in the aggregate, offerings were expanded. With lower interest
rates, the volume of bond flotations rose substantially. Offerings of stocks,
however, declined as stock prices fell. The flow of internal funds appears
to have been slightly below that in 1959, because rising depreciation and
amortization allowances were not fully sufficient to offset reduced profits.
But the expanded capital outlays were met without strain, since requirements
for funds to finance additions to inventories were less than in 1959 and
liquid holdings of cash and Treasury obligations were used more intensively.
Residential Construction
Expenditures on residential construction in 1960 were 10 percent below
those in 1959. The number of new starts dropped somewhat more sharply
than expenditures, but the effect of this reduction upon the home building
industry was mitigated by the improvement in the volume of activity in
additions and alterations.
The decline in housing activity was tempered by an increase in the
availability of mortgage credit and, to a much lesser extent, by lowered
borrowing costs. Another favorable factor was the rise in income. However, the response to these stimuli was less than in 1958. Vacancy rates
in rental units rose from 6.6 percent in the third quarter of 1959 to 7.6
percent in the third quarter of 1960. Reflecting developments in housing
activity, outstanding mortgage debt on 1- to 4-family homes rose by $11
billion in I960, compared with a net increase of $13 billion in 1959.
Net Exports
The mounting favorable export balance was an expansive factor throughout 1960. After showing an excess of imports over exports of $2.2 billion
(annual rate) in the second quarter of 1959, the Nation's export balance
improved rapidly, and by the fourth quarter of 1960 it was $4.0 billion.
Exports of goods and services rose during the year while imports fell slightly.
(The balance of payments is discussed in a later section of this chapter.)
Government Expenditures
Government expenditures on goods and services increased throughout the
year, and in the final quarter they were $5 billion (annual rate) higher
than a year earlier. The rise reflected principally the steady advance in
State and local expenditures following their brief decline late in 1959,
which was occasioned in part by the impact of the steel strike upon public
construction. Government transfer payments and interest, which are not
included in expenditures on goods and services, rose from $33.6 billion in the
fourth quarter of 1959 to $36.9 billion in the fourth quarter of 1960, thus
making a very material contribution to final demand.
Federal expenditures, which had reached a peacetime high of $54.3
billion (annual rate) in the fourth quarter of 1958, fell to $51.7 billion in
the second quarter of 1960. Smaller inventory acquisitions by the Commodity Credit Corporation and lower expenditures for defense accounted
for most of this drop. However, Federal expenditures began to advance in
the second half of the year, owing largely to a pay increase for Government
employees and rising defense spending, and reached $53.2 billion in the
fourth quarter.
Consumption and Income
Consumer expenditures on services in 1960 continued the rise which has
been uninterrupted during the years since the war. However, this long
advance reflects in part pronounced and persistent price increases in this
sector. Expenditures on nondurable goods were especially strong just
prior to midyear, but weakened thereafter, as the rise in consumer income
slackened. Outlays on consumer durable goods changed little in the first
half of the year and declined in the second half. Sales of domestically
produced new automobiles totaled 6.1 million for the year as a whole, a
volume unequaled since 1955 though still below industry expectations
expressed in the early months of 1960. The increase in volume, however,
does not represent a fully proportionate gain in dollar value of sales; for
the first time, a considerable part of the total—at least 25 percent—consisted
of lower-priced compact cars. Meanwhile,, the demand for durable household goods exhibited weakness, reflecting in part the decline in the number
of new homes built.
The rise in consumer expenditures was supported by the growth of
personal income to a level 5 percent above that of 1959 (Chart 3). However, aggregate consumption in 1960 did not fully keep pace with the increase in individual incomes; consequently, saving increased, as a proportion
of income, from 6.6 percent in the strike-affected second half of 1959 to 7.7
percent in the second half of 1960. This increase in the rate of personal
saving was another important factor contributing to the declines in the
economy during the second half of the year and was reflected in the larger
accumulation of liquid assets by individuals, as well as in their more
restricted use of credit.
The advance in personal income that accompanied the rise in economic
activity during the early part of 1960 became less marked after the middle
of the year. Labor income benefited from the rise in basic wage rates of
approximately 3 percent per year, reflecting major collective bargaining
settlements, deferred wage increases, and cost of living adjustments. However, labor income was adversely affected by a decline in employment
which was especially marked in the more highly paid durable goods manufacturing industries, and by a lower average workweek of production
workers. After the middle of the year, labor income as a whole rose more
slowly and then declined, dropping more sharply as the year ended. Some
other forms of personal income—notably interest and transfer payments—
continued to increase during most of the year.
In the first half of the year, consumers made fairly extensive use of instalment credit, causing the total debt outstanding to expand at a substantial
rate. Thereafter, the marked slowing down of the rise (seasonally adjusted)
was one of the factors that contributed to the increase in the saving rate;
for 1960 as a whole, the growth in consumer credit was substantially less
than in 1959. While the growth rate in automobile and certain other
consumer goods paper fell off markedly from the first to the second half of
the year, the rate of growth in personal loans was more nearly maintained.
In contrast to personal income, corporate profits declined early in 1960
(Chart 4). In the first quarter, corporate profits before taxes were at an
annual rate of $48.8 billion, compared with the record figure of $51.7 billion
in the second quarter of 1959, and by the third quarter they had dropped to
$41.5 billion. A shift from profits to other forms of income can help sustain
a high level of over-all demand in the short run, although over a longer
period a shrinkage of profits relative to output may be expected to reduce
both the means and the incentive for business investment. In the second
half of 1960, however, the higher saving rate largely forestalled the favorable
effect that such a shift might have had, through higher consumer income,
upon consumer buying.
8
CHART
3
Personal Income, Spending, and Saving
Disposable personal income rose strongly during the first
half of 1960 but more moderately thereafter.
Since spend-
ing did not keep pace, personal saving tended to rise.
BILLIONS OF DOLLARS
400
-
350
DISPOSABLE PERSONAL
INCOME-1/
300 -
250 —
PERCENT
PERSONAL SAVING AS PERCENT OF
DISPOSABLE PERSONAL INCOME
-
10
0
I
i
i
i
1957
1958
1959
I960
* PERSONAL INCOME LESS TAXES.
SOURCES: DEPARTMENT OF COMMERCE AND COUNCIL OF ECONOMIC A D V I S E R S .
CHART 4
Corporate Profits
Corporate profits declined sharply after early I960.
The
reduction was absorbed by tax revenues and retained
earnings, while dividend payments were increased.
BILLIONS OF DOLLARS
30 -?;
20
10
1955
\j
1956
1957
1958
1959
I960
WITHOUT ALLOWANCE FOR INVENTORY VALUATION ADJUSTMENT.
SOURCE: DEPARTMENT OF COMMERCE.
EMPLOYMENT AND UNEMPLOYMENT
After the steel industry resumed operations in November 1959, total
civilian employment expanded rapidly and by December had almost recovered to its pre-strike figure, seasonally adjusted, of 66.2 million (Chart 5).
The expansion was largely in the employment of workers in durable goods
producing industries; most of the increase in employment was reflected in
a drop of unemployment, from 4.2 million in October 1959, when the
strike was still in progress, to 3.8 million in December 1959. During the
period of recovery from the strike, higher demand for labor also resulted
in longer workweeks and increased overtime in durable goods industries.
10
CHART 5
Civilian Labor Force
The labor force expanded substantially in 1960.
ment
declined
and
unemployment
Employ-
increased during
the
second half of the year.
MILLIONS OF PERSONS*
SEASONALLY ADJUSTED
75
CIVILIAN LABOR FORCE
70
65
NONAGRICULTURAL EMPLOYMENT
60
,
V
55
<
10
AGRICULTURAL EMPLOYMENT
••?
UNEMPLOYMENT
PERCENT OF CIVILIAN LABOR FORCE
10
UNEMPLOYMENT RATE
(SEASONALLY ADJUSTED) *~
1957
*
1958
1959
14 Y E A R S OF AGE AND OVER.
SOURCE: DEPARTMENT OF LABOR.
II
I960
Civilian employment continued to expand with the increase in economic
activity during the first half of 1960; by June, the seasonally adjusted
figure was 67.4 million. Meanwhile, the civilian labor force also increased
at about the same rate, so that the change in unemployment was minor.
For 1960 as a whole, employment averaged 66.7 million and the civilian
labor force averaged 70.6 million. These were record numbers, representing gains above average 1959 levels, after allowance for the inclusion of
Alaska and Hawaii.
Total payroll employment in nonagricultural establishments expanded
moderately during the first half of the year and reached 53.4 million,
seasonally adjusted, in June. Widely divergent trends appeared, however,
in important industries. Total employment in manufacturing changed
very little in the half year. Employment in durable goods industries decreased after February, as work forces were sharply reduced in industries
producing primary metals and transportation equipment, but this decrease
was largely offset by a moderate expansion in nondurable goods manufacturing. In nonmanufacturing industries, employment increased without significant interruption, especially in trade, finance, service, and
government.
Total payroll employment began to decline in August as additional manufacturing industries curtailed work forces, the automobile industry shut
down earlier than usual for its annual model changeover, and construction
firms restricted operations. In most major industry groups except finance,
services, and government, employment fell after midsummer (Chart 6).
Declines in aggregate employment continued to the end of the year, with
the declines being particularly marked in the final months. Through
December 1960, the total reduction of payroll employment from the July
peak amounted to about 951,000. Payroll employment in December 1960
totaled 52.5 million, compared with 52.9 million in December 1959.
The average workweek of production workers in manufacturing industries declined from 40.4 hours in January to 39.6 hours in April, both
seasonally adjusted (Chart 7). This contraction was due, in part, to temporary and noneconomic factors. After a recovery to 40.1 hours in May,
the average again fell as increasing numbers of workers in manufacturing
industries went on part-time schedules.
Unemployment, seasonally adjusted, declined to 3.5 million in May,
but then rose over the remainder of the year, to 4.9 million, or 6.8 percent of the labor force, in December. Insured unemployment, which covers
persons eligible to draw unemployment benefits, increased sharply, after
seasonal adjustment, in the second half of the year.
CHART 6
Employment in Nonagricultural Establishments
Manufacturing, mining, and transportation accounted for
nearly all of the decline in payroll employment after the
middle of 1960.
MILLIONS OF PERSONS
SEASONALLY ADJUSTED
54
TOTAL
52
50
TRADE, FINANCE,
SERVICE, AND
PUBLIC UTILITIES
22
20
MANUFACTURING, MINING,
AND TRANSPORTATION
18
/
GOVERNMENT
CONTRACT
CONSTRUCTION
X
•-
2 -
1958
SOURCE: DEPARTMENT OF LABOR.
1959
I960
CHART 7
Hours and Earnings in Manufacturing
The workweek declined during 1960, but average hourly
earnings increased slightly.
DOLLARS
HOURS
2.40
AVERAGE HOURLY EARNINGS
(LEFT SCALE)
2.20
2.00
41
40
39
38
AVERAGE WEEKLY HOURS*
(RIGHT SCALE)
1957
1958
1959
I960
Average weekly earnings declined as the workweek was
reduced,
DOLLARS
95
AVERAGE WEEKLY EARNINGS
IN I960 PRICES &
90
85
80
0 1i i i i i I i i i i i I i i i i i 1i i i i i I i i i i i I i i i i i I i i i i i i i i i i i I
1957
1958
1959
I960
±1 SEASONALLY ADJUSTED.
^CONSUMER PRICE INDEX USED AS DEFLATOR.
NOTE: DATA RELATE TO PRODUCTION WORKERS.
SOURCE: DEPARTMENT OF LABOR.
The turnover of the unemployed group remained high in 1960; during
most months of the year, from two-fifths to one-half of the total number
had been seeking work for less than 5 weeks. Nevertheless, long-term
unemployment—the number of persons seeking work for 15 weeks or
more—increased after May, and in December amounted to 1.2 million,
after seasonal adjustment, compared with 1.0 million in December 1959.
The unemployment rate for married men also increased during the second
half of the year; for 1960 as a whole, however, it averaged 3.7 percent of
their number in the labor force, about the same as in 1959.
The increase in unemployment was reflected in the Department of
Labor's classification of the Nation's 147 major labor market areas according to adequacy of labor supply. In November 1960, 48 major areas were
classified as having "substantial labor surpluses" (unemployment of 6
percent or more of the labor force), compared with 28 in January. A
large proportion of total unemployment, and an even larger part of longterm unemployment, remains concentrated in the 19 major labor market
areas having "substantial and persistent labor surpluses," most of which
are located in the northeastern part of the country. In May 1960, before
the downturn of total employment, the unemployment rate in these areas
averaged 7.9 percent, compared with 4.7 percent for all the remaining areas.
Semiskilled, unskilled, and inexperienced workers were reported to be
in surplus supply in nearly all sections of the country, but many labor
market areas continued to report shortages of professional, technical, secretarial, clerical, and skilled workers.
PRICES
Prices in different sectors of the economy followed divergent trends in
1960. The net result of these movements was an increase in the consumer
price index of 1.4 percent and an unchanged level for the index of wholesale prices.
The increase in the consumer price index was about the same as during
1959 (Table 3). This outcome conceals, however, an important difference
between the two years in the role of consumer goods prices, both of durables
and nondurables, which in the past have contributed importantly to upward movements. Whereas in 1959 both of these sectors showed noticeable
advances, in 1960 the prices of nondurable goods, excluding food, rose only
very moderately5 while those of durable goods declined. Food prices, on the
other hand, which tend to move partly in response to special factors,
increased in 1960, while they had fallen in 1959. Prices of services advanced, as they have done in earlier years (Chart 8).
Investment goods prices also reflected an easing of upward pressures.
Prices of producer finished goods rose until September 1959, but thereafter
15
TABLE 3.—Changes in consumer price index, 1959 and 1960
Relative
importance
December
1959
(percent) 1
Item
All items
Commodities
__ _
Food. .
_ .
Food at home... .
Rent
All services less rent
December
1959 to
November
1960
100.0
1.5
1.5
64.1
.8
1.0
.
28.0
23.2
-.7
-1.5
2.8
3.0
36.1
1.8
-.4
22.5
8.9
1.4
2.4
1.7
7.4
1.0
1.4
.1
13.6
3.0
1.8
8.8
3.1
1.1
.5
6.4
.2
.2
-2.7
-2.9
-14.2
-.5
-1.1
35.9
2.9
2.4
6.2
29.7
1.3
3.1
1.3
2.6
Nondurable commodities
Apparel
Shoes »-
Services _
December
1958 to
November
1959
_
Commodities less food
Durable commodities
Cars, new .
Cars, used
Durables less cars
Appliances23
Percentage change
__
__ _ _
-
______
__
_
1 Weights do not add to 100 because the miscellaneous category, not actually priced but imputed, is
omitted.
23 Comparisons are for December 1958 to December 1959 and December 1959 to September 1960.
Includes household appliances, radios, and television sets.
Source: Department of Labor.
fluctuated within a narrow range. Since the turn of I960,, construction
costs have shown a similar stability.
Wholesale prices in general have remained steady since early 1958
(Chart 9). In the earlier part of the period, there was a moderate increase
in industrial prices, but this was offset by lower prices of farm products and
processed foods. The reverse was true in 1960, as prices of farm products
and processed foods rose noticeably and industrial prices drifted down a
little. However, prices of certain basic items, such as metals and their products, electrical machinery, and especially lumber, declined more markedly.
Prices of crude industrial materials as a group fell considerably; but at
intermediate stages of processing, declines in industrial prices have not
been large.
The weakening in the upward tendency of prices reflected the combined
impact of several factors. Monetary and fiscal policies served to avoid
speculative excesses and pressures of demand upon capacity and helped to
create attitudes on the part of businessmen and consumers favorable to
price stability. As 1960 progressed, evidence of ample supplies and the
slackening of the economic advance strengthened these attitudes and gave
rise to keener competition as well as more careful buying habits. Wage
increases of only moderate amount likewise contributed to greater price
stability. Average hourly earnings of production workers in manufacturing,
16
adjusted for interindustry shifts, which had advanced by more than 5
percent in 1956 and 1957, gained only 3.4 percent in 1959 and about the
same amount in the past year. However, such increases in manufacturing
and industries other than agriculture, viewed as part of the long-term trend
in hourly wage rates, are still somewhat greater than the average annual improvement in productivity in the past decade.
CHART 8
Consumer Prices
The 1960 rise in consumer prices was due largely to an
advance in food prices and to the continuing increase in
prices of services.
INDEX ,
Prices of durable goods fell markedly.
1947-49=100
160
ALL SERVICES
150.
,'—""^^^""^""
140
~'"
-
^-"
*~~~'
-
130
ALL ITEMS
^. FOOD
120
~<^^"^*^^ •*• ^^^
110
-—~
^~+
*••••*
^—
•^
•?y
""<:
••»••*
N
^NONl>URABLES
^ LEJ>S FOOD
r\
^^^-_
^—T
-~J
^^
DURABLES
100
195)5
1957
SOURCE: DEPARTMENT OF LABOR.
1958
1959
1960
CHART 9
Wholesale Prices
The over-all wholesale price index continued steady in
I960, but prices of crude industrial materials declined
substantially.
INDEX, 1947- 49-100
140
INDUSTRIAL COMMODITIES
120
100
80
I I I I I I I I I I I I i i I I I I I I I I I i I i I I i I i i I i i I I I i i i I i i i i I I i i i i i I i i I II
1956
1957
1958
1959
I960
INDUSTRIAL MATERIALS
140 -
i ii i i Ii i i i i
1956
i t i i i I i i i i i i i i i i I i i i i i i i i i i I i i i i i i i i i i I i i t 11
1957
1958
1959
I960
1959
I960
FINISHED GOODS
CONSUMER GOODS
EXCLUDING FOOD
CONSUMER FOODS
I I l I l I I Il I l Il l l ll I
1956
1957
1958
SOURCE: DEPARTMENT OF LABOR.
18
AGRICULTURE
Agricultural output in 1960 reached a record high for the third year
in succession. Output, especially of field crops, was stimulated by incentive
price supports for several commodities, the more extensive use of fertilizers, and favorable weather. Production of corn and grain sorghums set
new records, and output of wheat and soybeans was exceeded only in 1958.
Total livestock production decreased slightly, as hog, poultry, and egg production declined early in the year in response to unsatisfactory prices prevailing toward the end of 1959, and cattle production continued the expansion phase of its typically long cycle.
Prices and incomes received by farmers, which had declined in late
1959, improved by mid-1960 with better market conditions. Later, substantial advances by the Commodity Credit Corporation (CCC) on loans on
wheat, corn, and other price-supported crops from the 1960 harvests helped
to sustain income. Gross income of farm operators, estimated at $37.9
billion, was $400 million larger than the 1959 income. Farm production
expenses changed very little, as lower costs for expense items originating
in the farm sector, notably feed and feeder livestock, all but offset the
higher costs of certain other production goods and services. Tax and
interest costs were substantially greater than in 1959. Farm wage rates were
somewhat above those in 1959, but fewer workers were employed.
With their gross income slightly higher and production expenses nearly
the same as in 1959, farm operators' net income from farming in 1960 was
a little greater than in 1959 (Chart 10). Realized net income, which
excludes inventory change, rose from $11.3 billion in 1959 to an estimated
$11.6 billion in 1960. Whether reported exclusive or inclusive of inventory
change, net income in 1960 was about the same as the average for the five
preceding years; but, since the number of farms has decreased steadily, net
income per farm in 1960 was about 5 percent higher than the 1955-59
average.
Hired farm workers living on farms received about $1.8 billion in farm
wages. Income of all farm people from nonfarm sources, including in
particular wages earned from part-time work off the farm, was a little
larger in 1960 than in 1959, rising to a record $6.9 billion.
Market values of farm real estate leveled off and then receded a little during 1960 after an almost uninterrupted upward trend that started before
World War II. There were moderate declines in the Corn Belt and Northern Plains, and further small increases occurred in most of the Southern,
Mountain, and Pacific States. Total farm assets at the end of 1960
amounted to $199.3 billion, 2 percent less than a year earlier. Farm
indebtedness continued to increase. By the end of the year, indebtedness
reached $25.7 billion, or 13 percent of assets, leaving an equity in farm
investment of $173.6 billion, 3 percent less than the equity 12 months
earlier.
19
CHART 10
Indicators of Agricultural Conditions
Incomes of farmers, from farm and nonfarm sources, rose
slightly in 1960.
Farm proprietors' equities declined.
BILLIONS OF DOLLARS
40 REALIZED GROSS
FARM INCOME
30 S
TOTAL NET FARM INCOME-^
10
R E A L I Z E D NET FARM INCOME-^
NET INCOME FROM NONFARM SOURCES &
J
I
1952
I
I
1954
I
1956
I
I
I
I960
1958
INDEX, 1910-14 = 100
PRICES PAID, INTEREST, TAXES, AND WAGE RATES
300
( P A R I T Y INDEX)
250
PRICES RECEIVED
200
(ALL
J
FARM PRODUCTS)
|
1952
I
1954
1956
1958
I960
BILLIONS OF DOLLARS
180
FARM PROPRIETORS' EQUITIES
(JANUARY I)
160
140
0
I
1952
I
I
1954
I
I
1956
J
1958
*J INCOME OF FARM OPERATORS, INCLUDING GOVERNMENT PAYMENTS
-^ INCOME OF ALL FARM PEOPLE.
SOURCE. D E P A R T M E N T OF AGRICULTURE.
2O
I
I960
An outstanding feature of agricultural developments in 1960 was the
strong expansion of exports of farm products. The volume of these exports
reached a new high in the fiscal year I960, and their value, at $4.5
billion, was second only to the record $4.7 billion attained in the fiscal year
1958. Since the major export crops are given Government price support,
the large exports, which are partly subsidized, served chiefly to ease the
financial burden on the Commodity Credit Corporation; however, they also
helped to sustain farm income.
Despite extensive efforts in food distribution and other surplus removal
activities, 1.8 billion bushels of corn, 1.5 billion bushels of wheat, 5.3 million
bales of cotton, and substantial quantities of several other products remained
in CCC inventory or under CCC loan at the end of 1960. Accumulated
investment of the Corporation in price-supported commodities amounted to
$9.1 billion.
MONETARY AND FISCAL AREAS
Early in I960,, inflationary forces were being brought under control.
Efforts to bring the budget into balance were meeting with success, and the
emerging surplus, augmented by seasonal factors, permitted some debt
retirement. Under these circumstances, the Federal Reserve authorities
moved to reduce monetary restraint.
As the year proceeded, developments increasingly called for an extension
of this policy, and the Federal Reserve accordingly took a variety of steps
toward more positive promotion of monetary ease. At the same time,
pressure upon corporate profits reduced prospective tax revenues from this
source. The budget surplus for the fiscal year 1961, which had been
estimated at $4.2 billion in January, was revised to $1.1 billion in the fall;
an approximate balance is now estimated. The restraining effect of the
budget on the economy diminished in this period. In view of the decline
in residential construction, Federal housing programs were adjusted to
provide additional stimulus. Advantage was taken of the possibility of
accelerating the Federal highway program, as well as some other Federal
programs.
Monetary and Credit Policy
As the year began, interest rates on Treasury bills were just reaching a
peak, although net borrowed reserves had passed their high point in early
August 1959. The money supply (demand deposits and currency, seasonally adjusted) had been declining since July 1959.
Demand for most forms of bank credit, however, began to slacken early
in 1960. Business loans, which reflected the strong pace of inventory
accumulation, were the major exception in this downturn. With the
demands of the Federal Government on the financial markets also reduced,
interest rates eased rapidly during the early months of the year. Total
576899 O—61-
21
CHART 11
Member Bank Reserves and Borrowings
Pressures on bank reserves eased during 1960.
Beginning
in the spring, total reserves rose.
BILLIONS OF DOLLARS
20
18
-
u i i i i i i i i i i i i i i i i i i i i i i i i i i i i
BORROWINGS FROM
FEDERAL RESE RVE BAN)<S
w
-,' \
/
J.
f •....
y
EXCESS
RESERVES
..V..-
\
.....•' •••
«^^
'•••^•T?^
/" 1 ••-•-•••••,,
, !^m
\
/
/
1957
•
../"
V
• • •**
'"•••^x
, , , , , i , ,^>
RESERVES
f*^A
J
"\
\ ((EXCESS RESERVES LESS
W
BORROWINGS)
/
1958
1959
I960
t AVERAGES OF DAILY FIGURES.
* RESERVE REQUIREMENTS CHANGED.
NOTE: BEGINNING DECEMBER 1959, RESERVES INCLUDE VAULT CASH ALLOWED.
SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
22
loans and investments of commercial banks, as well as total bank reserves
and the money supply, fell more than they normally do early in a year.
Through April, Federal Reserve open market operations had the effect
of easing the position of the banks, although not on a scale sufficient to
prevent a more than usual shrinkage in total reserves. By late spring, net
borrowed reserves of banks approached zero (Chart 11) and the rate on
three-month Treasury bills dropped below 3 percent. The demand for
business loans meanwhile fell short of its increase in most recent years, as
the rate of inventory accumulation diminished. The demand for other
loans also reflected some slackening in economic activity. These developments were further highlighted by a general decline in stock prices (Chart
12). Thus, further monetary easing was clearly called for, and, accordingly,
open market operations became more aggressive. Beginning in May, growing monetary ease was reflected in a greater than usual rise in total reserves
of banks, and after midyear the downward trend in the money supply was
reversed.
In June, the Federal Reserve Banks reduced discount rates from 4 percent
to 3JJ/2 percent, and in August and early September rates were cut again,
CHART 12
Stock Prices and Stock Market Credit
Stock prices declined during much of I960, but rose late
in the year, as did stock market credit.
INDEX, 1957-59-100
BILLIONS OF DOLLARS
COMMON STOCK PRICES (SEC)
(LEFT SCALE)
120
"^V
100
80
1957
1958
1959
I960
-^ CUSTOMERS' NET DEBIT BALANCES AND BANK LOANS TO OTHERS THAN BROKERS
AND DEALERS; END OF MONTH.
SOURCES: VARIOUS GOVERNMENT AND PRIVATE AGENCIES.
CHART 13
Money Supply
After mid-1960, demand deposits and currency rose somewhat and time deposits expanded rapidly.
BILLIONS OF DOLLARS
40 -
1957
-
1959
1958
i960
DEMAND DEPOSITS AT ALL COMMERCIAL BANKS AND
CURRENCY OUTSIDE BANKS; AVERAGES OF DAILY FIGURES.
& TIME DEPOSITS AT ALL COMMERCIAL BANKS; END OF MONTH.
SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
to 3 percent. In two successive steps taken in September and December,
reserve requirements against demand deposits for central reserve city banks
were reduced from 18 percent to l6l/2 percent. Most important, from the
point of view of providing reserves, all vault cash was made available for
meeting reserve requirements. As a partial offset, requirements for country
banks were raised from 11 percent to 12 percent.
As the year progressed, the expansion of loans continued to be moderate.
Funds supplied through Federal Reserve actions were used by banks primarily to purchase United States Government securities; such purchases
from June through December amounted to $7.1 billion. The expansion in
bank loans and investments produced only a small rise in the money
supply, because the resultant deposits predominantly took the form of
time deposits.
24
Beginning in late October, Federal Reserve purchases of United States
Government securities were extended to short-term securities other than
Treasury bills for the first time since 1958. The action was considered
appropriate in the light of the outflow of capital, stimulated in part by
the sharply lower yield on short-term United States securities in comparison
with the rate on equivalent securities in other countries.
For 1960 as a whole, the money supply decreased by $1.0 billion,
against a rise of $600 million in 1959. Time deposits, however, increased
much more than in 1959, the gain amounting to about $5.9 billion
(Chart 13). Bank credit rose by $8.4 billion, moderately more than in 1959.
But loans rose by only $5.8 billion, against an increase of $11.9 billion
in the preceding year. The slower pace of bank lending, despite the larger
volume of funds available, was due to the lessened demand for total credit
by all major sectors of the economy. Banks, therefore, were able to add
about $2.4 billion to their holdings of United States Government securities, thus reversing the heavy liquidation of such securities that had taken
place in 1959 (Table 4).
TABLE 4.—Net changes in commercial bank holdings of loans and investments, 1955-60
[Billions of dollars]
Loans and investments
1955
Loans (excluding interbank) and investments 8
_ _
Loans (excluding interbank) *
Business
Real estate _.
Consumer
Security
_
..
Agricultural
Nonbank financial institutions
All other
.
_
Investments
U.S. Government securities
Other securities
_
1956
1957
1958
19591
4.6
4 2
4.9
15 1
4.0
11 6
7 6
35
4 3
11.9
64
2.4
55
18
— l
2 3
14
.6
-.7
(7)
9
1.7
-.8
-.3
(7)
U
.6
12
—.1
-.1
2.1
2
.4
.9
(7)
(7)
4
3
1.0
—7 0
—3 5
13
—7.4
-3.0
-.3
1.7
.4
-.4
4
51
2.5
2 8
.2
(67)
(4 )
19602
8.4
5.8
6
2. 2
.7
1.4
.2
.7
— .1
1.5
».6
10.8
—7.9
2.7
8.1
2.6
-7.7
2.4
.3
—.2
1
Structural changes in 1959 are excluded. On balance through August, these changes added almost $1
billion in total credit; $600 million in loans; $300 million in U.S. Government securities; and $100 million
in other securities. Real estate loans increased about $300 million; business loans, $100 million; consumer
loans,
$100 million; and other loans $100 million.
2
Preliminary estimates by Council of Economic Advisers.
3
Total
loans are net of, and individual loans are gross of, valuation reserves.
4
Includes estimate of loans to nonbank financial institutions on December 31,1959.
5
Excludes loans to nonbank financial institutions, shown separately, and is not strictly comparable with
previous
data.
6
Less than $50 million.
7
Reported in business and "all other" loans prior to June 10, 1959, and estimated in business and "all
other" loans on December 31,1959.
NOTE.—Changes are based on amounts outstanding at end of year.
See Table C-41 for totals including interbank loans.
Detail will not necessarily add to totals because of rounding.
Source: Board of Governors of the Federal Reserve System (except as noted).
With both an easier monetary policy and reduced demands for credit,
interest rates declined over the year. For United States Government bonds
and municipal bonds, the declines were relatively substantial; they were
less so for commercial bank loans and corporate bonds. Rates on mortgage
loans declined very little (Chart 14).
CHART
14
Interest Rates and Bond and Mortgage Yields
Short-term interest rates fell in 1960 after having risen sharply
during 1959.
PERCENT PER ANNUM
AVERAGE BANK RATE ON
SHORT-TERM BUSINESS LOANS
6 -
4 -
1957
1958
1959
I960
Long-term interest rates also declined during 1960 after increasing during most of 1959.
PERCENT PER ANNUM
BONO AND MORTGAGE YIELDS
U.S. GOVERNMENT BONOS
(10 YEARS AND OVER)
1957
1958
1959
I960
SOURCES: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM,
TREASURY DEPARTMENT, FEDERAL HOUSING ADMINISTRATION,
AND MOODY'S INVESTORS SERVICE.
26
Total liquid assets, including the money supply, which had expanded at
a relatively slow pace in late 1959, changed very little during the first half
of I960, if account is taken of seasonal factors. There was a decline in
the money supply and some reduction in marketable United States Government securities maturing within one year. As the year progressed, however,
purchases of consumer goods lagged, and personal type savings, such as
time deposits and savings and loan shares, began to expand rapidly. Demand for these types of assets appears to have been stimulated also by more
favorable returns available on them relative to those on marketable securities. As a result, total liquid assets expanded in the latter part of the year
(Table 5).
TABLE 5.—Changes in selected liquid assets held by the public, 1957-60
[Billions of dollars]
Asset class
Money supply (demand deposits and currency outside
banks).
Personal type savings
_
Time deposits at commercial banks
Deposits at mutual saving banks _
Savings and loan shares..
U.S. Government savings bonds
U.S. Government securities maturing within one year..
1957
I9601
1959
1958
-0.9
5.5
0.6
8.5
14.2
7.2
13.9
5.5
1.4
4.8
-3 2
7.1
2.1
6.1
— 1. 1
2.4
.8
6.6
-2.6
5.9
1.3
7.4
—.7
4.2
-1.7
10.8
-1.0
-5.3
* Preliminary estimates by Council of Economic Advisers.
NOTE.—Changes are based on amounts outstanding at end of year except changes in money supply,
which are based on daily averages for December.
Sources: Board of Governors of the Federal Reserve System and Treasury Department (except as noted)
The response of the financial mechanism during 1960 to Federal Reserve policies was generally typical of a period in which a policy of restraint
gives way to one of ease. The easing was first reflected in reduced net
borrowed reserves and sharp declines in short-term interest rates, and
only later in the expansion of total bank reserves, bank credit, and deposits.
Commercial banks were inclined to reduce their high indebtedness to the
Federal Reserve System before employing available reserve funds to expand
credit further. The low return on Treasury bills in relation to the discount rate prevailing during the late winter and spring, as well as subsequently during the year, probably influenced banks in these decisions.
The response of bank credit was also affected by the tendency for an
especially large amount of excess reserves to be concentrated during the
late summer and fall in country banks while other banks remained under
pressure. Since country banks employ their surplus funds less actively,
this factor may have impeded a more rapid response of total bank credit
and the money supply to Federal Reserve action. The expansion of the
money supply in turn tended to lag behind credit expansion because the
latter reflected primarily an increase in time deposits.
A somewhat analogous development was observable with respect to the
major types of savings institutions, including life insurance companies,
savings and loan associations, and mutual savings banks. The larger flow
of funds generally available to these institutions led to only a very gradual
decline in interest rates on mortgages, and the yield on corporate bonds
also was slow in being reduced. The behavior of lenders of long-term
funds appeared to reflect the experience of earlier periods of declining
interest rates, which were quickly followed by a return to higher levels.
Fiscal and Debt Management Policies
Fiscal policy during 1960 was oriented toward maintaining over-all
stability in the economy in conjunction with the more flexible operations
of the monetary authorities. For the fiscal year. 1960, the Federal budget
attained a surplus of $1.2 billion. It is presently expected that the budget
for the fiscal year 1961 will show a very close balance (Chart 15). The
improvement in the budgetary outcome for 1960, following a deficit of
$12.4 billion in the preceding fiscal year, reflected increasing revenues as
a result of the expansion of the economy and, to a lesser extent, a reduction
in Federal expenditures.
Expenditures in the fiscal year 1960 were $3.8 billion lower than expenditures in the fiscal year 1959 (Table 6), while budget receipts rose by $9.9
TABLE 6.—Federal budget expenditures, 1959-62
[Fiscal years, billions of dollars]
1960
1959
Function
Total budget expenditures
Major national security
International affairs and finance
Commerce, housing, and space technology
Agriculture and agricultural resources
Natural resources
Labor and welfare
Veterans services and benefits
Interest
General government
.,
Allowance for contingencies
Deduct: Interfund transactions
1962
1961
(estimated) (estimated)
80.3
76.5
78.9
80.9
46.4
45.9
47.4
6.5
1.7
4.4
5.2
7.7
1.6
45.6
1.8
2.8
4.8
1.7
4.4
5.1
9.3
1.7
.4
.7
.7
3.8
3.4
2.3
3.8
4.9
2.0
4.5
5.2
9.0
2.0
2.7
3.4
5.1
2.1
4.8
5.3
8.6
2.1
.1
.7
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department and Bureau of the Budget.
billion. The reduction in total expenditures was made possible in part by
the termination of certain expenditures incurred for antirecession purposes in the previous year, as well as of some nonrecurring expenditures.
Expenditures were lower for housing, owing to the termination of
the special mortgage purchase program of the Federal National Mortgage
Association authorized in 1958, and for international affairs and
finance, because the 1959 expenditures had included nonrecurrent
increases in the United States subscription to the International Monetary
Fund. Farm income support expenditures also declined considerably in
28
CHART 15
Surplus or Deficit of the Federal Government
The Federal budget is expected to be in balance for fiscal
year 1961 and to show a surplus in fiscal year 1962.
BILLIONS OF DOLLARS
CONVENTIONAL BUDGET
10
DEFICIT
-10
1954
1956
1958
I960
1962
I960
1962
I960
1962
CONSOLIDATED CASH STATEMENT
-10 -
1954
1956
1958
NATIONAL INCOME ACCOUNTS
10
SURPLUS
DEFICIT
-10
1954
1956
1958
FISCAL YEARS
r
ESTIMATE.
SOURCES: TREASURY DEPARTMENT, BUREAU OF THE BUDGET, AND
DEPARTMENT OF COMMERCE.
the fiscal year 1960. The advances to States for financing the temporary
extension of unemployment benefits were discontinued, and expenditures
for military assistance diminished. On the other hand, there were increases
in some expenditures, particularly those related to natural resources development, research, and space exploration. Interest payments on the public
debt increased sharply as rates advanced during the first half of the fiscal
year.
The sharp increase in Federal receipts in the fiscal year 1960 reflected
the strong sensitivity of Federal revenues to fluctuations in the economy.
Of the total increase, corporate income tax receipts accounted for $4.2
billion and individual income taxes for $4.0 billion (Table 7 ) .
TABLE 1.—Federal budget receipts, 1959-62
[Fiscal years, billions of dollars]
Source
Total budget receipts
Individual income taxes
Corporation income taxes
Excise taxes
Employment taxes
Estate and gift taxes
Customs
Miscellaneous receipts
Deduct: Interfund transactions
1959
1961
(estimated)
1960
1962
(estimated)
67.9
77.8
79.0
82.3
36.7
17.3
40.7
21.5
9.1
.3
1.6
1.1
4.1
.7
43.3
20.4
9.3
45.5
20.9
9.7
1.9
1.1
37
.7
2.0
1.1
3.8
.7
8.5
.3
1.3
.9
3.2
.4
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department and Bureau of the Budget.
For the fiscal year 1961, budget expenditures are estimated as $2.4 billion higher than in the preceding fiscal year. Outlays for all major functions except interest payments on the public debt are expected to rise.
The increases are attributable in varying degree to new legislation, primarily the pay raise to Federal civilian employees; to increases in relatively
uncontrollable expenditures, such as grants to States for public assistance
and payments for veterans' compensation, pensions, and medical care; to
past commitments for such purposes as water resources projects, space
exploration, and civilian aviation; and to higher Congressional appropriations for defense and other programs.
The increase in revenues in fiscal 1961 is now estimated at $1.2 billion,
substantially less than the expected increase in expenditures. Most of this
rise is due to an increase, estimated at $2.6 billion, in receipts from individual
income taxes, reflecting higher personal incomes. Corporate tax receipts,
however, are expected to decline. Receipts from excise taxes will probably
increase, but a decline in all other receipts is foreseen, partly because of the
transfer of Federal unemployment tax receipts from general revenues to
the unemployment trust fund, in accordance with the Social Security Act
Amendments of 1960.
A number of tax revenue measures were recommended by the President
last January and acted upon by the Congress. Both the corporation income tax rates and certain excise tax rates scheduled for reduction or repeal
on July 1, 1960 were extended for one year. The Congress also enacted
legislation that had been recommended in order to prevent unintended
and excessive deductions in the computation of depletion allowances on
certain mineral products. On the other hand, the Congress again failed
to take action on a number of revenue recommendations, but enacted
certain unrecommended measures that will reduce 1961 revenues by at
least $100 million.
The change in the Federal budgetary picture between the fiscal years 1959
and 1960 is even more striking if the transactions are considered on a
consolidated cash basis, which includes the trust funds. Following a consolidated cash deficit of $13.1 billion in the fiscal year 1959, there was a
cash surplus of $800 million in the fiscal year 1960. A cash surplus of
$1.1 billion is expected in fiscal 1961.
The effect upon economic conditions of changes in the financial position
of the Federal Government during the fiscal year 1960 becomes clearer
when stated in terms of the national income accounts, which reflect tax
liabilities as they are incurred and present the Government's activities in
terms more directly related to the over-all level of economic activity. In
these terms, there was a surplus of $5.2 billion (seasonally adjusted) in the
second half of the fiscal year 1960. In recent months, however, the
surplus has been considerably reduced. The restraining effect of the budget
on the economy thus was substantially lessened in the course of 1960.
At the State and local level, receipts during fiscal 1960 continued their
advance, which over the past decade has proceeded at a faster rate than
the gain in Federal revenues. State tax collections increased by $2.2
billion, more than twice their growth in 1959. This reflected both the
strength in underlying economic conditions and a number of legislative
changes in the base, rate, or collection-timing of particular major taxes.
These enactments were exceptionally numerous in 1959 and became effective
mainly in fiscal 1960.
State and local expenditures also continued to rise during the fiscal year
1960, and somewhat more than receipts. The increase was mostly in
payrolls. Expenditures for new construction remained fairly stable for the
fiscal year as a whole, but they have been increasing recently. Long-term
borrowing by State and local governments during the first half of the
calendar year 1960 was about 10 percent less than in the corresponding
period of 1959, but the pace quickened in the third quarter.
For the calendar year 1960, the surplus in the Federal budget permitted
a reduction of $425 million in the public debt, in contrast to the rise of
$7.9 billion in 1959. This, along wit^i the easing in credit markets, facilitated the Treasury's management of the public debt. The Treasury's ability
to lengthen the average maturity of the outstanding debt was still limited,
31
however—especially in the first half of the year—by the legal 4J4 percent
interest ceiling on securities of more than 5 years' maturity.
The Treasury continued to develop new techniques of debt management
in order to improve the marketing of United States Government securities
and to contribute toward achievement of the broader goals of economic
growth and stability. A considerable amount of short-term borrowing
was put on a regular basis, thus minimizing the impact of refunding shortterm issues on the credit markets. The Treasury also used, for the first
time, the provisions of a law passed in September 1959 that makes possible
the exchange of securities under advance refunding without the immediate
recognition of any gain or loss for Federal income tax purposes. The use
of this provision, a major improvement in debt management, lessens the
market impact of long-term debt offerings and provides an incentive for
present owners of United States securities to retain them. As a result in
part of advance refunding, the average maturity, which had been 4 years
and 4 months in December 1959, was extended to 4 years and 7 months
in December 1960.
FEDERAL HOUSING AND HOME FINANCING AND AID FOR HIGHWAYS
Further policy actions bearing on the level of economic activity were
taken in the areas of housing and highways. Residential construction,
which had started to decline in the final quarter of 1959, was aided by
several administrative measures in 1960. In February, the Federal Housing Administration (FHA) announced new procedures designed to facilitate the sale of existing houses traded in on the purchase of new homes;
in April, the downpayments required on FHA-insured home loans were
reduced to the minimum permitted by law; and in July, the purchase of
FHA-insured loans by the general public was authorized under new procedures. The Veterans Administration increased by more than $100 million
the amount of direct home loans made to veterans in rural areas and small
communities during 1960; in July, legislation was enacted continuing
for two years both the eligibility of World War II veterans to obtain guaranteed home loans and the availability of direct home loans.
The Federal National Mortgage Association (FNMA) raised the prices
paid for loans purchased through its secondary market operations as the
availability of mortgage funds in private markets improved. Two price increases of l/2 point were announced, the first in July and the second in
August. The maximum size loan per dwelling eligible for purchase under
the secondary market program was raised by FNMA from $15,000 to
$20,000 in January; and in October the issuance of stand-by commitments
for the purchase of existing houses was authorized.
Interest rates charged by the Federal Home Loan Banks on advances
to member institutions were lowered during the year. The latter generally
took advantage of an increase in share deposits to reduce their outstand32
ing advances from the Federal Home Loan Banks coincident with a
slackening in the demand for mortgage credit. In the context of the
college housing program, priority was given to loan applications for construction that could be commenced quickly. Administrative procedures
were inaugurated in connection with urban renewal activities to aid
localities in expediting the planning, execution, and completion of their
projects.
After being relatively low in the early months of 1960, highway construction was increased in the second half of the year, as higher revenues
resulting from the one cent per gallon increase in the tax on motor fuels
made possible, first, the avoidance of a deficit in the Highway Trust Fund
in consequence of legislation passed in 1958, and, thereafter, the apportionment to the States of the full amounts permitted by legislation and the more
rapid obligation by the States of the apportioned funds.
Earlier-than-usual enactment of enabling legislation made possible an
acceleration of procurement contract awards, and steps were taken to
start at once Federal construction projects for which funds were made available at a relatively early date.
INTERNATIONAL ECONOMIC DEVELOPMENTS
The over-all deficit in the United States balance of payments in 1960
remained close to that in each of the two preceding years. The structure
of the deficit, however, changed markedly (Chart 16). Short-term capital
outflows accelerated, mainly in response to the widening of the margin by
which interest rates abroad exceeded those in this country. The deficit on
all other transactions, on the other hand, diminished greatly, as a result of
a rapid rise in exports. In the first half of the year, the over-all payments
deficit was relatively low; it became sharply higher in the third quarter;
and in the last quarter it appears to have declined again (omitting one
large transfer of private direct investment capital), as the surplus on goods
and services increased further and outflows of liquid capital seem to have
decreased. The decline in the United States gold stock, which had slowed
down in the first half of the year, accelerated in the second half, along with
the increase in the over-all payments deficit.
The year's improvement in the balance on transactions other than movements of liquid capital was, in part, the result of high economic activity
in Western Europe and Japan, which stimulated exports, and of the slackening of activity in the United States, which tended to limit imports. This
divergence of economic conditions likewise accounted for the enlarged
differential between the relatively high interest rates abroad and the relatively low rates in the United States, which led to outflows of liquid
funds. The achievement of a reasonable equilibrium in United States
international transactions on the average over a period of years continued
to be a goal of this country's policies, domestic and international, in 1960.
33
CHART T6
U. S. Balance of Payments
The surplus on goods and services increased sharply in
I960, but the over-all payments deficit remained large as
recorded and unrecorded capital outflows rose.
BILLIONS OF DOLLARS 1
BALANCE ON UNREC DRDED TRANSACTIONS
\
i
-5
to
i
.-
i
i
i
i
OVER-ALL BALANCE ^
A
-5
-10
1955
1956
1957
1958
1959
I960
' SEASONALLY ADJUSTED ANNUAL RATES.
* EXCLUDES $1,375 MILLION INCREASE IN IMF SUBSCRIPTION.
-!/CHANGE IN U.S. GOLD HOLDINGS AND RECORDED LIQUID LIABILITIES.
SOURCE: DEPARTMENT OF COMMERCE.
34
Economic Expansion Abroad
The United States balance of payments in 1960 was heavily influenced
by developments abroad. As foreign barriers to international transactions
have been reduced and as Western Europe and Japan have regained their
earlier positions in the world economy, the links among the major
economies of the free world have become much closer than in earlier years.
The boom that got under way abroad in 1959 continued in varying
degree during 1960 in most industrial countries outside North America.
However, during the year some slowing down was noticeable—in a number
of countries because of capacity limitations—and scattered soft spots appeared. Some countries on the European Continent which continued to
experience boom conditions nevertheless had sizable export surpluses that
were not offset by long-term capital outflows. Economic activity in Canada,
which is the largest individual market for United States exports and which
had been one of the first industrial countries to recover from the 1957-58
recession, turned down after the first of the year.
Economic policies in Western Europe and Japan were in general directed
toward restraining excess demand throughout I960; exceptions were France
and Italy, where mild expansionary measures (including a reduction in
the discount rate in France) were instituted in the second half of the year.
Restraint was exerted mainly through monetary and credit policies, and
interest rates rose in a number of countries; there were particularly sharp
increases in short-term rates in the United Kingdom up to August and
in Germany until October. In continental Europe, the authorities of
several countries were faced with the problem of dealing with inflows of
funds from abroad, which helped to enlarge bank liquidity. Special restrictions on such inflows were introduced during the summer in Germany
and in Switzerland (which had attracted funds despite its relatively low
interest rates). In November, the German central bank reduced its discount rate in a further effort to stem the inflow. Discount rates were
also reduced in Japan (in August) and in the United Kingdom (in
October and December) ; the economic policies of these countries remained
otherwise unchanged. Short-term market rates tended to reflect these
discount rate reductions, and the gap between United States short-term
interest rates and those abroad was reduced in the last months of the year.
With the slowing down of the expansion in the industrial countries, the
rise of world trade also slowed down. While exports of the United
States and Japan continued to rise, those of other industrial countries declined somewhat in the second quarter and rose only moderately thereafter
(Table 8). Exports of the nonindustrial countries in the aggregate remained at about the level reached in the second half of 1959, and many of
these countries continued to be seriously affected by the price weaknesses of
many primary commodities—both agricultural and mineral products—
which became more pronounced in the second half of the year. At the same
35
TABLE 8.—World exports, 1959-60
[Billions of dollars]
1959
Country or ar«a
First
quarter
Second
quarter
1960
Third
quarter
Fourth
quarter
First
quarter
Second
quarter
Third
quarter 1
Seasonally adjusted annual rates
World total 2
94.2
97.9
103.5
106.0
111.0
110.8
111.5
United States •
15.6
15.8
17.2
16.8
18.6
19.6
19.9
All other countries --
78.6
82.1
86.3
89.2
92.4
91.2
91.6
48.2
51.1
52.8
55.7
59.1
57.4
58.3
30.9
9.1
5.1
3.1
32.3
9.7
5.7
3.4
33.7
9.7
5.8
3.6
35.7
10.2
6.1
3.7
38.4
10.6
6.4
3.7
37.7
10.3
5.4
4.0
38.0
10.1
5.9
4.3
30.4
31.0
33.5
33.5
33.3
33.8
33.3
32.2
Other industrial countries
Continental OEEC countries «
United Kingdom
Canada _
Japan
Nonindustrial countries
Unadjusted annual rates
Nonindustrial countries
Sterling area, excluding
United Kingdom
Latin American Republics.
All other
30.6
32.8
32.2
34.8
33.7
33.6
12.5
8.3
9.8
13.3
8.4
11.1
13.3
8.4
10.5
14.7
7.9
12.2
14.7
*8.2
110.8
U4.2
!8.4
1 11.0
(5)
(5)
8.2
* Preliminary.
8
Excludes Soviet Area and Communist China.
3 Excludes military-aid shipments.
* Excludes Spain.
5 Not available.
Note.—Detail will not necessarily add to totals because of rounding.
Sources: International Monetary Fund, and Department of Commerce.
time, however, comprehensive economic stabilization programs helped to
put the economies of many of the nonindustrial countries on a sounder footing and thus to assure better balanced growth. The United States continued
to participate actively in international studies of the trade problems of these
countries.
United States Payments Deficit
After showing sluggishness in 1958 and the early part of 1959, United
States exports staged a rapid comeback in 1960. By the third quarter,
merchandise exports reached an annual rate of $20 billion (seasonally
adjusted), 30 percent above their early 1959 low, and the high rate continued in October and November (Chart 17). Imports declined in the
third quarter to an annual rate of less than $15 billion and fell further in
the closing months of the year. Much of the increase in the merchandise
trade surplus reflected the high level of economic activity in Western Europe
and Japan and the slowing down in this country. Exports, in addition,
received a temporary stimulus from special demand conditions relating to
jet aircraft and to cotton in the first part of the year. Export and import
trends indicate that many United States manufacturers are successfully
CHART 17
U. S. Merchandise Exports and Imports
The trade position improved markedly during 1960 as exports rose and imports declined slightly.
BILLIONS OF DOLLARS
SEASONALLY ADJUSTED ANNUAL RATES
25
MERCHANDISE EXPORTS
(EXCLUDING MUTUAL SECURITY
PROGRAM SHIPMENTS)
20
15
10
1955
1956
1957
1958
1959
I960
" BASED ON DATA FOR OCTOBER AND NOVEMBER.
SOURCES: DEPARTMENT OF COMMERCE AND DEPARTMENT OF DEFENSE.
adjusting the prices and designs of their products to meet foreign competition. (For a more detailed discussion of United States Foreign Trade and
Payments, see Appendix B.)
The United States continued its generally nonrestrictive import policy
in 1960. Only one restrictive action was taken under the safeguarding
provisions of our trade agreements legislation, and the Tariff Commission
disposed of eight other cases without finding of injury. At the close of the
year, final decisions had not yet been taken on two cases in which the Tariff
Commissioners were equally divided in their findings. The United States
also announced a new set of tariffs on wool fabrics, to replace a tariff quota
system, and extended for three years the existing quota on imports of tung
oil and tung nuts. Preparations were made for United States participation
in the general round of tariff negotiations to be held in 1961 under the
auspices of the General Agreement on Tariffs and Trade (GATT).
In contrast to the rapid improvement of the merchandise trade surplus,
the net deficit on service transactions in the first three quarters of 1960
changed little from the $1 billion rate of both 1958 and 1959, although both
payments and receipts continued to grow. Net outflows of Government
loans, grants and pensions, private remittances, and United States private
long-term capital, which together have ranged from $5 billion to $6
576899 O—61-
37
billion a year since 1956, changed little in the aggregate between the first
three quarters of 1959 and of 1960.
Government assistance to the less developed countries retained its high
priority. During the 12 months ended September 1960, dollar disbursements under the Mutual Security Program for economic and technical
assistance totaled $1.6 billion. Of this amount, $200 million was disbursed
by the Development Loan Fund, which at the end of the period had undisbursed commitments of $1.2 billion. Under Public Law 480, agricultural
surpluses were disposed of against local currencies to the amount of $740
million, and, in addition, grants amounting to $ 170 million were made. The
Export-Import Bank disbursed $407 million in loans and committed $495
million, while receiving repayments of $656 million. The United States
also paid $80 million in June 1960 on its subscription to the newly established Inter-American Development Bank, and $74 million in November
1960 on its subscription to the new International Development Association.
Flows of liquid funds shifted dramatically against the United States in
1960. This change was reflected in both recorded outflows and unrecorded
transactions, so-called "errors and omissions"; for the year as a whole, it
appears to have offset much of the improvement in United States trade
accounts. The outflow, which increased after midyear as interest rate
differentials widened further, took various forms, including short-term investments, bank loans, and repatriation by foreigners of liquid holdings in
the United States. Some of the bank loans, however, were not related
so much to changing money market conditions in major centers abroad as
to needs of certain less developed countries for balance of payments support. Some United States and foreign funds moved into longer-term
interest-bearing securities abroad, particularly after the first months of the
year. There also were shifts of funds invested in equities, in response to
changing market conditions on the two sides of the Atlantic. The flows
of some funds were influenced, during the summer and fall, by heightened
uncertainties in the political situation in some areas and in world economic
conditions. Much of the year's outflow of liquid funds went to the United
Kingdom and several countries in continental Europe, which hold a large
proportion of their official reserves in gold, and thus increased the pressure
on the gold supply of the United States.
Short-term capital outflows enlarged the payments deficit only to the
extent that these outflows were exports of short-term funds by United States
residents. The repatriation by nonresidents of recorded short-term foreign
funds held in the United States did not increase the recorded payments
deficit, but by adding to foreign official dollar balances it swelled the demand
for United States gold. Outflows of United States owned short-term funds
increased the payments deficit, even though they were matched by a rise
in United States liquid claims on other countries. Under United States
balance of payments accounting, the payments deficit is measured by the
increase in liquid dollar liabilities and the decline in the gold stock.
38
Policies for Reducing the Payments Deficit
To help speed the attainment of a reasonable equilibrium in the United
States balance of payments, the Administration in 1960 intensified policies
instituted earlier when the recovery by the once war-devastated nations
of their competitive strength had become evident. The effort centered
on measures to increase United States exports and to reduce the balance
of payments impact of Government military and economic programs abroad
in a manner consistent with our responsibilities and long-standing policies.
Underlying these steps were equally important policies relating to the
domestic economy. Fiscal and monetary policies had as one of their
major objectives the maintenance of confidence in the dollar as a sound
and reliable currency. In this connection, the Administration continued
to emphasize the importance of appropriate action by management and
labor to insure the competitiveness of United States goods at home and
abroad.
To support the efforts of private business in enlarging sales abroad, the
Federal Government, with the cooperation of private business, instituted
early in 1960 a National Export Expansion Program—a series of coordinated measures to improve and expand Government services in private
industry. Measures were adopted to gain the help of existing national
and local business groups, to assist and encourage businessmen newly
entering the export field, and to strengthen contacts with business groups
abroad. To place United States exporters on a more equal basis with
exporters in other industrial countries, the Export-Import Bank introduced
a new program of guarantees of noncommercial risks for short-term credits
and expanded its existing facilities for medium-term export credits and
guarantees. The United States also continued to urge other countries—
particularly the economically and financially strong ones—to eliminate
remaining discriminatory restrictions on United States goods and services
and to lower tariffs and other barriers to trade.
Toward the end of the year, the United States initiated a number of
coordinated measures designed to obtain substantial foreign exchange savings in its Government expenditures abroad without reducing its military
strength or impairing its international commitments. Steps were formulated to reduce gradually and then limit the number of dependents abroad
of Defense Department personnel, particularly in the highly industrialized
countries with strong currencies, and to cut back Defense Department procurement of foreign goods and services and other expenditures abroad.
Other departments and agencies which have personnel abroad and which
engage in procurement abroad were instructed to institute similar programs.
In addition, the question of the cost of the United States troops in Germany came under discussion by the United States and German Governments. To minimize the balance of payments effects of our economic aid
programs, the International Cooperation Administration was instructed
to place primary emphasis on financing goods and services of United States
39
origin in all of its foreign aid activities, and as far as practicable to discontinue offshore procurement in 19 countries with strong currencies.
Similarly, the Development Loan Fund, which had adopted a similar policy
in October 1959, was instructed to reduce procurement outside of the
United States to the lowest possible figure.
In addition, efforts were increased to ensure that sales under the agricultural surplus disposal and related programs do not reduce cash dollar
sales of United States products. International institutions were urged to
use currencies other than dollars as fully as possible, and other strong
countries were encouraged to permit borrowing in their capital markets
by these institutions and by other borrowers, where appropriate. On January 14, the regulations that have been in force for a number of years prohibiting the holding of gold in the United States were uniformly extended
to holdings of gold abroad by persons and business organizations subject to
the jurisdiction of the United States.
International Economic Policies
Most countries continued in 1960 to move toward the free and multilateral trade and payments system which has been the goal of the United
States since the end of the war and for which the United States has pressed
with particular vigor in the last few years. By now, discrimination against
United States exports has diminished very substantially; the major remaining quantitative trade restrictions on United States exports are against
agricultural products, particularly in Western Europe. Foreign restrictions on capital transactions, however, continue to be considerable. The
United States Government expects that there will be continued progress
in the dismantling of restrictions on world trade and payments. In particular, the great economic strength of the countries belonging to the European Economic Community and the European Free Trade Association
should facilitate a significant lowering of tariff barriers during the forthcoming Geneva GATT negotiations.
The institutional framework of world finance was improved in 1960
through the establishment of the International Development Association
and the Inter-American Development Bank. The United States announced
new aid programs for Latin America, and further advances were made in
the area of ad hoc multilateral cooperative efforts for development, most
notably the Indus River Basin project.
The United States continued to stress the need for a strengthened determination by all the industrial countries to share in providing funds to
the less developed parts of the free world. At the initiative of the United
States, the major industrial countries early in 1960 formed a Development
Assistance Group to discuss methods for providing such aid. It is planned
to incorporate the work of this group in the Organization for Economic
Cooperation and Development (OECD), the successor organization to
the Organization for European Economic Cooperation (OEEC), which
40
is scheduled to come into existence in 1961, following ratification of its
convention, and which is to comprise the 18 Western European members
of the reconstituted OEEC together with Canada and the United States.
The objectives of this organization will be to achieve the highest sustainable
economic growth in member countries, to contribute to sound economic
expansion in countries in the process of development, and to contribute to
the expansion of world trade.
Along with these advances, the problem of shifts of short-term funds
from one international center to another came to the fore during 1960.
Now that freedom for international short-term capital movements has been
substantially enlarged, and the economies of the major countries abroad
have been greatly strengthened, it appears that interest rate considerations
may have an increasing influence on short-term capital flows. However,
the international financial mechanism today seems strong and flexible
enough to allow solutions to the resulting difficulties to be worked out.
International payments, other than short-term capital movements, also
have continued to show an imbalance. As a result of this over-all lack of
balance in world payments, the substantial increases of international reserves of recent years continued to be concentrated in a small number of
countries, particularly in continental Europe. Originally, this inflow was
justified by the extremely low level of reserves of these war-devastated
countries, but today the reserves of most of them, by and large, seem ample.
The United States has many responsibilities in the world economy. These
include keeping the dollar strong, in view of its key role in international
trade and payments, maintaining liberal commercial relationships with other
countries, contributing to the defense of the free world, and supplying a
share of the capital resources needed by less developed countries. The
United States can meet these responsibilities because of its resourceful and
flexible economy and its international reserves which, with an available
gold stock of about $17% billion, are large. But the United States cannot
play its part fully unless other industrialized nations pursue policies required
by their positions in the world economy. This fact is now increasingly
recognized. A helpful start has been made in the sharing of development
costs and other burdens and in the cooperative reduction of existing payments imbalances, but further efforts are needed if the international financial mechanism is to work properly and the free world's economy is to move
ahead steadily.
OUTLOOK
As pointed out in this chapter, economic activity continues high as the
year 1961 begins, despite the declines in production and employment that
have occurred since the middle of 1960. The Nation's total output of goods
and services is below the level reached in the second quarter of 1960, but
the difference, in constant prices, is only slightly more than 1 percent. And
the decline is less than the effect on gross national product accounts produced by inventory changes; final demand for goods and services, which is
41
the total of expenditures in the economy exclusive of inventory adjustment,
has continued to move upward. It rose $4.6 billion, on an annual rate
basis, in the last quarter of 1960, to a total of $507.5 billion.
There have been production declines in a wide range of industries, but
the greatest declines have been in those industries affected by inventory
changes, which were in part a result of the extended steel strike of 1959.
Thus, while total industrial production in December 1960 was 7 percent
below the January high, output of iron and steel was 45 percent lower, and
the decline in industries other than steel was less than 5 percent. After
midyear, employment also declined, as did wage and salary disbursements.
These tendencies became more pronounced in December, and unemployment rose sharply. Total income payments to individuals, which had been
relatively well maintained, declined in December.
The fact that aggregate output has been fairly steady despite the large
inventory adjustment—from accumulation at the annual rate of $11.4
billion in the first quarter of 1960 to liquidation at the rate of $4.0 billion in
the fourth quarter of the year—reflects the underlying strength of the
current situation and is a distinctly favorable factor in the economic outlook
at this time. It is also favorable to the outlook that major maladjustments
which, to be corrected, would require prolonged contraction have not
been created in the period of advance that began in 1958, or in recent
months when activity has been either stable or moderately declining. Businessmen and consumers have kept their use of credit within reasonable limits
and appear to have avoided commitments that might lead to significant
corrective changes. Inflationary pressure has been restrained; while this
restraint may, for a time, have affected inventory policies and perhaps
other demands for goods and services, it has helped prepare a solid foundation for a resumption of sustainable growth.
The principal adjustment still in process is in the inventory area. Further reductions will probably occur during the early part of 1961; but if
consumer expenditures are well maintained in the coming months, as they
typically have been during recent periods of business hesitancy, the rate
at which this inventory reduction is carried forward should soon diminish.
A return to inventory accumulation may take somewhat longer, but stocks
in some lines already appear low and, even with a reduced rate of liquidation of existing holdings, an increase in production would be required.
The export balance may continue for some time to add strength to the
economy. It showed an additional increase in the final quarter of 1960,
but the impulses emanating from the boom in Europe and Japan are not
likely to continue indefinitely without some slackening.
Government outlays may be expected to rise materially during 1961.
Federal budgetary expenditures proposed for the fiscal year 1962 are $1.9
billion higher than for fiscal 1961; and State and local expenditures are
likely to continue their rise in response to the needs of our growing
population.
42
Housing expenditures, which tended to level off toward the end of 1960
from a decline that began in 1959, should become an expansive factor
in 1961. The volume of construction has benefited from an easier availability of credit, but not substantially, so far, from a cheapening of its cost.
Recently, however, the flow of funds into major savings institutions has
materially increased, which should eventually lower borrowing costs and
exert an expansive influence on all aspects of construction.
It is unlikely that business expenditures for fixed investment will contribute to an increase in demand and production in the immediate future.
Capacity is being utilized at less than optimum rates in many industries
and, what is of major importance, the trend of corporate profits has not
been favorable. Surveys of business capital investment plans and of appropriations for such investment suggest that, for a while, these expenditures
may continue to decline moderately from the near-record levels reached in
1960. But they will rise as advances occur in other sectors of the economy
and as accelerating activity in research and development creates new opportunities for enterprise.
Consumer outlays may be expected to increase as the factors of expansion
raise personal income, and especially if the prices of consumer goods remain
free from inflationary pressures.
An increase in general economic activity should not, accordingly, be long
delayed. It will be aided by actions already taken in areas of public policy.
Credit conditions have been eased materially by the Federal Reserve authorities. A number of steps have been taken by the Executive Branch to stimulate home building. And prompt legislative action on appropriations in
1960 made possible an acceleration of Federal construction and procurement
generally. Highway construction was also accelerated. An increase in production, to which these actions contribute, may well become evident prior
to a resumption of gains in employment and reductions in unemployment.
The outlook for the United States balance of payments has become dependent not only on changes in exports and imports, but also, in considerable measure, upon the movement of liquid capital. In the balance of
trade, some further improvement may be ahead, at least in the early part of
1961. Exports of manufactured products are expected to rise moderately,
in response partly to the strong demand in many industrial economies abroad,
some of which are operating close to full capacity. Greater domestic procurement under our economic aid programs should also be reflected before
long in export gains. At the same time, however, exports of some materials
for which demand was particularly strong in the middle of 1960 may continue to decline. An easing in economic activity in the industrial countries
abroad would, of course, react unfavorably upon United States exports.
Merchandise imports may be expected to reflect developments in the
domestic economy and to increase with a resumption of our general economic
advance—though perhaps with some lag. Circumstances that tended to
43
limit imports of automobiles, petroleum, and foodstuffs in 1960 may continue to exert a restraining influence upon total imports in 1961.
Although the measures taken to curtail United States military expenditures abroad point to a further decline in these outlays, the net deficit on
services is unlikely to be much reduced, owing to compensating changes
under other headings. Private capital transactions, particularly those of
a short-term character, may well show considerable improvement, provided
inflationary developments are avoided. Direct investments abroad may
be lower than in 1960, and an advance in the domestic economy may
attract equity funds to the United States. Most importantly, a resumption of advancing activity here may reduce the margin by which shortterm interest rates in leading foreign centers exceed those in this country.
Although some of the favorable factors may not continue throughout the
year, present prospects favor a reduction in the over-all balance of payments
deficit in 1961 as a whole.
As expansion is resumed, there is a good chance to realize more fully our
economy's potential for growth. The basis for advance has been laid in
recent years in the enlargement and improvement of our productive capacity
and in policies that have brought the forces of inflation under control.
Some temporary acceleration of growth might have been achieved if expectations of price increases had been allowed to persist and to become firmly
rooted. But the unsustainable nature of such growth would now be confronting the economy with the need for far-reaching and painful correction.
Because action to maintain stability and balance and to consolidate gains
was taken in good time, the economy can now look forward, provided public
and private policies are favorable, to a period of sound growth from a
firm base.
44
Chapter 2
Experience Under the Employment Act of 1946
T
HE REVIEW of developments in our economy is extended in this
chapter to the whole period covered by the Employment Act, and
particularly to the interval spanned by this Administration. In this connection, it is appropriate to recall the background and meaning of the
Employment Act, and to point to some of the lessons that may be drawn
from experience in administering it.
BACKGROUND AND MEANING OF THE EMPLOYMENT ACT
From its beginning, the United States economy has been organized on
the basis of maximum opportunity for private competitive enterprise and
the widest possible latitude for personal choice in making a living and
spending one's income. Any narrowing of the horizons for individual
initiative is alien to the nature of our enterprise system; and when controls
and unusual restrictions on personal action have had to be introduced during an emergency, their abandonment at the end of the temporary period
of crisis has been awaited impatiently.
In this tradition, the Nation approached cautiously the problem of Federal intervention respecting employment and the maintenance of economic
activity generally. Appeals for such intervention were resisted, for example, during the sharp economic downturn in 1921, when occasional
depressions were still regarded as inevitable and the belief that they could
be significantly moderated through governmental action had not taken hold.
But a step taken that year was important for later developments: the
President's Conference on Unemployment was established to make studies
that would increase understanding of the operation of our economy and
thus help to avoid the recurrence of widespread joblessness. The work of
this Conference, which made its final report only shortly before the Great
Depression began, was reflected in the Employment Stabilization Act of
1931, which sought to provide for "advance planning and regulated construction of public works, for the stabilization of industry, and for aiding in
the prevention of unemployment during periods of business depression."
Despite a series of countermeasures, the heavy unemployment of the 1930's
persisted until the tremendous increase in production required in World
War II and the service of 115/2 million persons in the Armed Forces reduced
it to a minimum and created even a degree of overemployment. With the
45
turn in the tide of war, however, memory of deep depression in the 1930's
and the expected demobilization of the Armed Forces heightened concern
for the Nation's economic future and aroused a keen interest in measures
to help avoid the widespread unemployment that it was feared would result
from demobilization and reduced spending on arms.
It was in this atmosphere of concern that the Congress turned its attention to legislative measures to cope with unemployment,, should it emerge
as a serious postwar problem. Congressional staff committees made comprehensive studies of the incidence and duration of unemployment and of
possible methods for dealing with it. Extensive hearings were held, and
a bill, the Full Employment Act of 1945, was introduced in Congress, providing for a considerably broader attack on unemployment than the public
works program envisioned in the Employment Stabilization Act of 1931.
The bill failed of enactment, but subsequently a revised version, the Employment Act of 1946, was passed overwhelmingly with bipartisan support
in both houses of the Congress.
At the time it was approved, the Employment Act represented a major
extension of our traditional concept of shared private and public responsibility for the Nation's economic growth and improvement. It gave explicit
expression to a continuing interest on the part of the Federal Government
in aspects of economic life that, outside the sphere of monetary policy, had
previously received deliberate Federal attention only in such emergency
conditions as depression and war.
It is useful to recall the language of the Act's declaration of policy: "The
Congress declares that it is the continuing policy and responsibility of the
Federal Government to use all practicable means consistent with its needs
and obligations and other essential considerations of national policy, with
the assistance and cooperation of industry, agriculture, labor, and State
and local governments, to coordinate and utilize all its plans, functions,
and resources for the purpose of creating and maintaining, in a manner
calculated to foster and promote free competitive enterprise and the general welfare, conditions under which there will be afforded useful employment opportunities, including self-employment, for those able, willing, and
seeking to work, and to promote maximum employment, production, and
purchasing power."
Thus, the Employment Act states that it shall be the policy of the
Federal Government to promote conditions under which there will be
afforded employment opportunities by methods that are consistent with
the traditional American philosophy of individual freedom and competitive enterprise. Although the Act enlarges the area of explicit Federal
concern to include the quality of our current and expected economic
accomplishment, it does so without diminishing the scope of private, State,
and local responsibility. Far from seeking to centralize economic decisionmaking in the Federal Government, or even to confer predominant respon-
sibility for economic growth and improvement on the Federal Government,
the law explicitly acknowledges the multiple sources of economic strength
in private individuals and groups and at the several levels of government.
The theme of the Act is captured in a phrase used in the Economic Report
of 1960 and in the present one: "shared responsibility for economic growth
and improvement." This principle, manifest in our economic life as in other
aspects of the American way, has carried us to the highest material wellbeing ever achieved, without hobbling the human spirit and without
impairing our political freedoms.
The framers of the Act proposed high standards of economic achievement. They wisely omitted, however, any requirement that economic goals
be publicly stated as fixed quantitative targets, although this fact gives no
ground for indifference to failure to attain the best levels of production, employment, and income that are feasible and sustainable for any period.
Such a requirement could invite broad, irreversible intervention by the Federal Government if the projected targets were not reached. The Act instead
contemplates a framework in which the mainsprings of private individual
initiative continue to function in behalf of brisk economic activity, and
in which the individual retains a wide freedom of choice. In our economic
system, the level of achievement is everyone's responsibility and cannot
be guaranteed by the Federal Government acting alone.
It should be noted, also, that the Act states that the Nation's economic
objectives should be pursued with due regard to other Federal objectives
and obligations, which must include a statje currency and protection of
the value of the dollar. The goals of economic policy, furthermore, are
not ranked. They have to be pursued coordinately; emphasis on one to
the neglect of others would soon prove self-defeating.
ADJUSTMENT FROM WARTIME TO PEACETIME ECONOMY
When the Employment Act was passed in 1946, our economy was making the extensive readjustments required of a Nation in transition from war
to peace. A year earlier, economic resources were still extensively committed to war and defense. Of the Nation's total output of about $215
billion, expressed in current values, roughly one-third was for military
purposes; and 11 ^2 million Americans, nearly one out of every twelve in our
population, were in the Armed Forces. Within a year's time, the proportion of our national output devoted to defense had been cut to less
than 10 percent, and 8 million men and women had been demobilized.
Although this sweeping readjustment was not made without difficulty,
it was completed with but a small rise in unemployment and with a relatively small drop in the Nation's output of goods and services. Sharp
increases in the production of consumer goods and services, a quadrupling
of the rate of expenditures on home building, and a great surge of investment by businessmen in new productive capacity and in the rebuilding
of depleted inventories came close to offsetting the large cutback in defense
47
output. The year 1946, in which the Employment Act was passed, marks
the beginning, therefore, of a period in which the central economic problem has been that of sustaining stable, inflation-free economic growth
despite still large defense and defense-related burdens. It is, for this reason,
a good starting point from which to review the performance of our economy
against the standards implicit in the Employment Act.
EXPANSION OF NATIONAL OUTPUT
" The postwar years have witnessed an enormous expansion of the Nation's
annual output. Measured in current prices, the value of goods and services produced—gross national product—expanded from $234 billion in 1947
to more than $500 billion in 1960. After adjustment of these values to
eliminate the effect of price rises, which were persistent and substantial
during most of this period, it is seen that output rose by nearly 60 percent,
or at an average rate of approximately 8^2 percent a year. By this broad
measure, our economy's rate of expansion in the period of the Employment
Act has exceeded by a significant degree the rate of growth from the
beginning of this century to World War II.
All major components of output expanded at a high rate. Business
fixed investment, which is largely for constructing and equipping new or improved productive facilities, increased rapidly as wartime deferrals were
made up and extensive modernization programs were carried out. Nearly
$650 billion (in 1960 prices) was invested for these purposes in the 1946-60
period, equaling, in real terms, almost three times the investment of the
previous 15 years. The output of consumption goods and services rose
more than 50 percent. Home construction increased at a rate of about
7 percent per year; almost 20 million dwelling units were completed, a
number equal to about half the supply of homes available when the
war ended. By the end of the 15-year period, the housing shortage which
had been so acute when war ended had been eliminated, and—what is
especially important for the vitality and strength of our free institutions—
some 60 percent of all dwelling units are now occupied by home owners.
Total purchases of goods and services for use by or through government
also increased markedly. Federal, State, and local government purchases, as
a total, almost tripled between 1946 and 1960; currently, they comprise
almost one-fifth of the Nation's total output. In the years since 1952, State
and local expenditures for education have more than doubled; and those
for public health and sanitation, for highway construction, arid for general
government purposes have increased almost as rapidly.
Although the amount of the Nation's total output of goods and services
that was directed to defense purposes remained high throughout the 15year period, and especially after 1950, the proportion in 1960 was lower
than in 1952; reflecting this, the output of goods and services for civilian
use increased at a higher rate than total output. Thus, while total output
increased from 1952 to 1960 by close to 25 percent, or at a rate of 2.7
percent per year, the use of goods, and services for consumption, which
includes private expenditures on education and medical care as well as
all other consumer purchases, rose about 30 percent, or 3.6 percent a
year. Expenditures on residential construction rose more than 40 percent, or 4.4 percent a year. Purchases of goods and services by State
and local governments, through which community needs that cannot be
met by private effort are traditionally satisfied, rose nearly 60 percent, or
5.9 percent a year, more rapidly than any other single major component of
national output.
GROWTH OF RESOURCES FOR PRODUCTION
This impressive expansion of output illustrates the high and rising productive capability of our enterprise economy. Whether comparable or
superior gains in real output occur in the future will depend in good
part on the extent to which the resource base of our economy is maintained
and strengthened through balanced growth. Therefore, it is a good
augury for the future that significant increases and improvements in the
quality of our productive resources have been registered in recent years.
First, our total labor force has increased at a rapid rate, substantially above what was expected when the Employment Act was passed;
increases since 1946 have averaged about 850,000 a year. And there
has been a marked improvement in the educational background and
training of the labor force. In 1940, about 30 percent of the labor force
18 to 64 years of age had graduated from high school and 5 percent were
college graduates; in 1959, the respective proportions were more than 50
percent and 10 percent. And in the age group 18 to 34, the representation
of high school graduates rose during this period from 40 percent to 60
percent, and of college graduates from 5 percent to 10 percent. Since 1952,
increases in school enrollments and in the numbers receiving college degrees
have been especially large. The proportion of all persons 5 to 34 years of
age enrolled in school rose from 47 percent in 1952 to 56 percent in 1960.
As would be expected, educational enrollment increases were most rapid
in the older age groups, reflecting the national trend toward wider participation in college and postgraduate studies. Also important has been the
increasingly frequent establishment of on-the-job education and training
programs by business firms, private trade schools, and labor organizations.
Second, as mentioned above, the Nation's stock of capital has been enlarged by substantial annual investments in new plant and in new machinery and equipment. As a result, the productive capacity of our
economy has been greatly increased. This was especially true in the years
immediately after World War II, when deficiencies that had developed
during the war were made up, but the rate of increase has been high also
in the past eight years. Increases since World War II in the capacity for
producing steel, refining petroleum, and manufacturing paper range from
60 to 80 percent, and in other industries, such as aluminum, the growth
49
has been even more rapid. The capacity of our transportation system has
likewise been greatly expanded.
Third, the Nation's intangible capital has been greatly augmented through
heightened activity in research and development. Total expenditures for
these purposes can be estimated only very roughly, but they are placed at
about $13.5 billion a year at the present time, having risen sharply from
about $1.8 billion in 1946. Even though somewhat more than one-half
of this cost is Government financed and much of it is oriented toward military purposes, the benefits to private industry and to civilian objectives are
real, persistent, and large.
Such increases in the Nation's stock of tangible and intangible capital,
together with the improved skills of our working people and improved
methods of business management, have been reflected in substantial improvements in productivity. Although there is no clear evidence that the
rate of this improvement has accelerated in the years since 1946, it appears
to have been higher, on the average, since the end of World War I than
in the 30 years prior to 1919. The volume of output per man-hour of
labor performed, one measure of productivity, continues on' an upward
trend, though year-to-year changes remain irregular and occasionally are
downward.
STRENGTHENING OF OUR ENTERPRISE SYSTEM
The continuing vigor of the competitive 'enterprise system, which Government is called upon to foster and strengthen under the Employment
Act, is clearly manifest in developments since 1946.
The rate of formation of new businesses was especially high in the
closing years of World War II and the years immediately following, and
it has continued high since then. Although the rate of discontinuance
of businesses, including the termination of enterprises by failure, has tended
to rise, the business population has made significant gains. The number
of operating businesses has risen since 1946 by nearly 1.5 million, reaching
more than 4.7 million in 1960. This rapid increase bespeaks the continuing openness of our enterprise system.
Two other sets of facts reflect the opportunity for entry into business,
for innovation, and for success in business operation. First, recent studies
have shown no clearly defined general tendency toward greater concentration in American industry, despite growth in the size of many individual
concerns. While concentration has increased in some industries, the opposite trend is visible in others. Second, there has been a marked increase
in the rate at which new products and new processes have been introduced,
doubtless reflecting the greatly increased accent on research and development noted above. Large companies are in a good position to conduct
research and development activities on an intensive basis, but small firms
also play an important part in the introduction of new products and new
technology, drawing on their independent research and development efforts
50
and, through licensing arrangements and participation in Government
contract work, also on the research results of other firms. Companies
of small and medium size have been aided in this connection, as well as
in normal business operations, by the ready availability of private advisory
and technical services and financing arrangements especially suited to
their needs. Steps taken by Government in the last eight years to assist
small businesses, and in this way to strengthen our enterprise economy,
are described in the Third Progress Report by the Cabinet Committee on
Small Business, issued in December 1960.
IMPROVEMENT OF PERSONAL SECURITY AND WELFARE
These advances in output and productive capability have made it possible to maintain the large military forces needed for our national
security, to assist in the reconstruction of the war-ravaged countries of
Europe and the Far East, and to aid in the peaceful development of the less
industrialized nations of the world. They also have made possible remarkable improvements in the material well-being, culture, and economic
security of the American people.
Since the passage of the Employment Act of 1946, the population of
the United States has increased nearly 30 percent; in the same period, disposable personal income (in 1960 prices) has risen from $231 billion to
$354 billion, or about 50 percent, and per capita disposable income (also in
1960 prices) from $1,635 to $1,969, or 20 percent. Since 1952, these
increases in income have been 30 percent and 15 percent, respectively.
Improvements in well-being are also reflected in changes in the distribution
of families according to income in constant prices. Thus, 47 percent of
all families had incomes of less than $4,000 in 1947, but this proportion
had dropped to 35 percent by 1959; at the upper .end of the income scale,
families with real incomes of $8,000 and over increased during this period
from 14 percent of the total to 24 percent.
Means for protecting income and personal financial security have been
greatly strengthened. The number of life insurance policy holders rose
from 77 million in 1946 to 94 million in 1952 and 118 million in 1960,
and the amount of life insurance per family increased from $3,600 to $5,300
and $10,200. Between 1952 and 1959, the number of shareowners in public
corporations increased from 6.5 million to 12.5 million.
A rapid extension of private and public systems of insurance has
broadened measures to provide personal security in old age and to meet
emergencies caused by unemployment, ill health, and death. The number
of workers (including farmers and other self-employed persons) covered
by the Federal Government's system of old-age, survivors, and disability
insurance increased from 36.7 million in 1946 to 50.2 million in 1952
and to 59.0 million in 1960, and the percentage of paid workers covered
rose in these periods from 65 to 79 and 87. The total amount paid to those
eligible for benefits was $378 million in 1946, $2.2 billion in 1952, and
51
$11.3 billion in 1960. The number of beneficiaries, which had been 1.6
million in 1946 and 5.0 million in 1952, was nearly 15 million in 1960.
Private insurance to meet health emergencies has also been extended and
improved at a rapid rate. The number of persons covered by hospital
insurance rose from 42 million in 1946 to 132 million in 1960. At the
beginning of this period, 18.6 million persons were insured under private
systems for the coverage of surgical expenses and 6.4 million for regular
medical expenses; at the end of the period, the coverage of these two
types of health expenses was 120 million and 86 million, respectively.
Private insurance for major medical expenses has shown the most spectacular increase—from 700,000 persons in 1952 to 25 million in 1960.
Finally, unemployment insurance coverage under the Federal-State
system rose from 31.9 million persons in 1946 to 37.0 million in 1952 and
44.0 million in 1960, and the percentage of those employed in nonagricultural establishments who are covered increased from 77 in 1946 and in 1952
to 83 in 1960. Average weekly payments to those out of work were $18.50
in 1946; the average for 1952 was $22.79, and it increased to $32.75 in 1960.
GREATER ECONOMIC STABILITY
Although personal security is strengthened by insurance systems both
private and public, it depends primarily on a high level of employment, the
development of job opportunities for our increasing labor force, and the
avoidance of sharp fluctuations in production and employment. The persistence of unemployment in some areas and the recent increase in the total
allow no room for complacency, but the record of the past 15 years also
shows good performance in maintaining high employment and avoiding
wide swings in economic activity.
A large increase in jobs has been achieved since 1946. Total civilian
employment rose from 55 million in 1946 to 61 million in 1952 and
increased further, to nearly 67 million, in 1960. The number of persons
unemployed and the rate of unemployment were somewhat higher, however,
in the peacetime years of the 1950's than in the late 1940's. The contractions in economic activity since the Employment Act was passed have
proved to be relatively moderate when compared with earlier cyclical
adjustments. For example, the contraction that began in August 1957
lasted only 9 months; and the two previous ones, beginning in December
1948 and in August 1953, were ended in 13 and 11 months, respectively.
However, the principal improvement in this respect lies in the fact that
the declines were less severe than on most earlier occasions. Thus, personal income dropped less than l/% of 1 percent in the contractions beginning in 1953 and 1957, contrasting with declines of 11 percent and 50
percent in the downturns that began in May 1937 and August 1929, respectively. Declines in employment and production were also appreciably
smaller than in most earlier cyclical downturns.
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The mildness of recent contractions relative to earlier experience reflects,
in part, the stabilizing features of our tax system, the automatic operation of
governmental programs that help to sustain income when production and
employment recede, and a shift in the pattern of employment toward jobs
that are relatively less affected by recessionary tendencies. It also reflects
deliberate steps taken by the Government to offset the declines, and the
greater stability of business enterprises.
While this record presents evidence of good progress, the further moderation of economic fluctuations remains a major challenge to Government
and industry. In the contraction that began in August 1957, for example,
industrial production fell by 14 percent and total employment by about
2 million even though the decline in personal income was small. The best
thought and most determined action are needed to find constructive ways
to make further advances in reducing this persisting problem of the enterprise economy.
LESSONS OF EXPERIENCE UNDER THE EMPLOYMENT ACT
These developments in our economy and the experience gained in administering the Employment Act teach certain lessons that must be kept in
mind continually as we strive to attain our national economic objectives.
First, although great strides have been made toward understanding and
moderating the cyclical behavior of our economy, difficult problems of diagnosis and prescription remain. Experts disagree on the meaning of unfolding events, and action to counter adverse developments cannot be finely
predetermined, either in kind or degree. Moreover, the repercussions of
countermeasures cannot be accurately foretold. Experience underlines the
importance of the close surveillance of economic developments that is a
responsibility of the Council of Economic Advisers, created by the Employment Act. It also emphasizes the need for constant review of administrative
actions and legislation, to determine their potential or actual impact on the
growth and stability of our economy. In addition, this experience shows the
need for up-to-date, accurate, and comprehensive facts on economic developments as a basis for wise policy decisions by private groups as well as
government.
Second, a tendency for prices to rise has persisted in the period since
World War II, even after prices reflected the inflationary pressures generated
by war and even though our resources have not always been utilized to the
full. To arrest this tendency, as we have largely succeeded in doing of late,
and to attain our national economic goals in an atmosphere of reasonably
stable prices must continue to be a major objective of private and public
policy. Apart from the other adverse effects of inflation, its seriousness has
been underlined by the growing recognition that reasonable stability of costs
and prices is essential to balanced economic growth and to the maintenance
of our competitive position in world markets.
576899 0—61
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Third, competing objectives must be taken into account in economic
policy, and action in pursuit of any one goal must be taken with a recognition that to press it too far or too rapidly may prejudice other values that
are in reach or in hand. Considerations of long-run benefit must be weighed
against short-run advantage. The rate of economic growth cannot be
properly evaluated without regard to its composition and balance or its
sustainability. On the contrary, the unwholesome accompaniments of a
forced, too-rapid expansion may impede further growth and even induce
setbacks.
Fourth, it should be clear from the experience under the Employment
Act, as it is from the longer history of our country, that Government
action is not the principal, let alone the sole, determinant of the rate of
economic growth. In our competitive enterprise system, growth requires
that productive job opportunities be created in private employment. The
creation of jobs, in turn, requires the presence of adequate incentives to
private action and the availability of private capital and other needed
resources, and it is heavily influenced by the state of demand, prices^ and
costs, and the desires arid interests of the people. The Federal Government
promotes economic growth mainly by the contributions that it makes to conditions favorable to the exercise of private, individual initiative and effort,
and by facilitating and encouraging the execution of their respective responsibilities by private individuals and groups and by State and local
governments.
Fifth, the language of the Act affords a fair degree of flexibility in its
administration, which our experience shows to be necessary if economic
policy is to accommodate new priorities and meet new challenges. Routine
diagnosis and administration have no place in economic policy for growth
and stability. The policy appropriate in one situation is not necessarily
suitable in a later one, even when the circumstances are alike in many
respects. Thus, in 1954, when the economy was undergoing a contraction,
it was possible to execute a substantial reduction of taxes, and thereby to
increase the purchasing power of individuals and of business firms, because
governmental expenditures, previously expanded as a result of the Korean
conflict, were being cut back. In the contraction of 1958, on the other hand,
different actions were called for and taken: monetary and credk policies
were adjusted; Government expenditures were maintained and in some
areas increased, at the same time that revenues declined, and a substantial
deficit was incurred; administrative actions fostered a higher rate of home
building; the Federal-aid highway program was accelerated; and unemployment benefits were extended.
Actions and policies adopted during the period of the Employment Act
have not insured against economic contraction, but they have proved effective
in moderating setbacks. The Act has fostered a keener awareness of approaching downturns and a determination to meet them by positive action
rather than by passive acceptance. And this change in attitude on the
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part of the Federal Government has created an atmosphere of public
confidence which in itself has helped to arrest recessions before they have
become cumulative downward spirals.
Sixth, the remarkable advance achieved in the welfare of our citizens
provides a basis for confidence in the future growth and improvement of
our economy. From this experience it is clear that the same diffusion of
power for economic decision-making which would render foolhardy the sole
reliance on Federal effort to achieve the Act's objectives assures the broad
public and private cooperation needed to attain maximum practicable economic progress. While neither the public nor the private sector can guarantee the final outcome of their policies, the results of their efforts can
provide a basis for improving future decisions and performance. Greater
public understanding of economic issues, and a better appreciation of the
consequences of past decisions and action, help the citizens of a democracy
to evaluate proposals to promote the growth and stability of the economy.
For the Federal Government, which is the agent of all the people, this
evaluation may point to the need for new or revised laws. Also, fulfillment of the Federal role may often be aided by positive statements of principles, needed policies, and goals. For the achievement of the common
economic aims of a democratic society, it would be as much a mistake to
ignore the value of this manifestation of leadership as to rely upon it solely.
Psychological factors should not be overlooked in the emphasis on automatic
and deliberate stabilizing and stimulating policies and actions.
In sum, experience has proved the Employment Act to be a helpful
instrument for achieving important common economic goals in a framework of free institutions. Confidence that the concepts of economic organization and action embodied in the Act will serve us well in the future has
been strengthened. The Act is a living document,, adaptable to changing
circumstances. Though improvements might be made, as suggested in the
next chapter, the Act, even without amendment, can provide a useful guide
for policy and action in new and unforeseen circumstances.
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Chapter 3
Policies for the Future
A
RAPID growth of the labor force and a significant improvement in the
Nation's productivity will provide the opportunity and also a challenge to raise output in the next decade at a still higher rate than has been
experienced in the years since the Employment Act was passed. Success in
accelerating production and providing the needed employment opportunities will depend, of course, on both private and public policies. The gains
made in recent years in containing inflationary pressures and stabilizing
prices and in avoiding the development of other imbalances in the -economy
provide a good foundation for achieving the desired rapid and sustainable
economic advance. In some areas, however, new Government policies will
be needed and existing legislative provisions will have to be strengthened.
It is impossible to say in advance how large the increase in the labor
force will actually be, but it is clear that an unusually large number of
younger persons will reach working age in the next decade. Indeed, the
annual increase in the labor force may average as much as 1.4 million during
the decade, compared with an annual growth of 850,000 in recent years.
If it is assumed that in the next ten years the average unemployment rate
will be equivalent to that for the past decade and that the size of the
Armed Forces will remain unchanged, an annual increase of 1.4 million
persons in the labor force would raise the number of persons in civilian
employment in 1970 to more than 80 million, or 20 percent above the
present employment figure.
A gain of this magnitude in employment would imply a still larger
advance in output as productivity continues its historic upward course.
Our output per man-hour is now substantially higher than that of any other
industrialized economy in the world, and it has tended to increase at a
long-term average annual rate of 2 percent or more. There are forces at
work that could speed the actual gain in the next 10 years. The cost
pressures of our enterprise system today and the intensive competition faced
in world trade provide spurs to the more rapid achievement of greater
productive efficiency. Continuing high expenditures on new plant and
equipment and heavy emphasis on research and development are also favorable to a marked advance in productivity.
Fuller realization of our Nation's rising productivity potential could also
be fostered by the elimination or reduction of arbitrary impediments of
long standing. For example, many rules, codes, and practices that restrict
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output and hinder the introduction of more efficient techniques deserve
to be modified in the national interest, while providing reasonable safeguards for workers. The reduction of deterrents to productivity is an end
to which labor and management, with the help of Government, if necessary,
should work more intensively in the years ahead. The recent decision to
establish a commission concerning railroad work practices has properly
been hailed as a step in the right direction.
Although the signs are promising, the rate of economic growth cannot be
predicted accurately, since the future size of the work force, the level of
employment and hours of work, and the rate of actual productivity advance
are themselves uncertain. However, if we succeed in the next 10 years in
holding unemployment rates to their average in the 1950's, and if the
long-term average rate of increase in productivity persists, the growth
of national output would exceed by a significant margin the rate achieved
since the Employment Act was passed. A more rapid advance of productivity would yield a still higher rate of growth. This is the opportunity
inherent in the present position of our economy and in its longer-term
prospects.
GOVERNMENT AND PRIVATE POLICIES
In our free economy, economic growth and the improvement of living
standards depend not primarily on what government does but mainly on
what is done by individuals and groups acting in their private capacities. In
this system of shared responsibility, the tempo of economic activity is especially sensitive, for example, to the plans and actions of large firms and
powerful labor organizations whose operations are national and international in scope.
Government makes its basic economic contribution not through the
volume of its own expenditures but by promoting conditions favorable to
the exercise of individual initiative and private effort. Accordingly, a
dominant purpose of government at every level must be the preservation
and invigoration of institutions that favor and support enterprise. In particular, the Federal Government should encroach no more than necessary
on the province of private action. Indeed, it should expand as broadly
as possible the opportunities for private decision-making; strengthen incentives for businessmen, workers, savers, and investors; and promote a vigorously competitive environment in domestic and international markets. And
within the area of public action, the Federal Government must avoid
encroachment on the province of State and local units. The expected
increase in the demand for public investment and the emergence of new
regional and area problems will require efforts on the part of State and
local authorities and of citizens in general to render more effective the
instruments of government located close to home. A proper sharing of
governmental responsibility may require a strengthening of the capacity of
State and local entities to meet their emerging and increasingly heavy
burdens.
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Maintenance of Price Stability
In administering fiscal and monetary affairs, the Federal Government
makes a signal contribution to growth to the extent that it strengthens
confidence in the stability of prices. The threat or experience of inflation
tends to undermine thrift, even apart from the inequities inflicted and the
hazards raised to sustainable growth of production. A steady and ample
flow of savings and a growing volume of productive investment have been
crucial to the development of our economy and will be needed more than
ever in the years ahead if greatly increased numbers of workers are to be
supplied with adequate tools and equipment.
Among Government efforts to maintain a reasonably stable price level,
special importance must be assigned to the noninflationary conduct of Federal budgetary and fiscal affairs. Rising Government expenditures can put a
direct upward pressure on costs and prices—especially when employment
is already high—either because of their very magnitude or because they
may concentrate demand on economic sectors in which personnel or supplies
are relatively limited. Thus, inflationary pressures can be created throughout the economy, encouraging cost and price increases that do not appear
directly traceable to Government action. A significantly large budgetary
deficit, too, can impair the effectiveness of an anti-inflationary monetary
and credit policy. Furthermore, the example set by Government in the
conduct of budgetary and fiscal matters influences public attitudes and the
psychology of the marketplace.
The second major Government instrument for controlling inflationary
tendencies is monetary policy, for which the independent Federal Reserve
System is responsible. Increases in credit, deposits, and currency are required to accommodate the rising volume of payments accompanying higher
levels of production and employment, even when prices are generally stable.
But these increases must be moderated so that they do not directly or indirectly contribute to the erosion of purchasing power.
The specific goals of monetary policy in particular situations and the best
means for achieving them must be determined on the basis of long experience
and a deep understanding of economic and financial developments at home
and abroad. Experts may well differ on paramount short-term objectives,
methods, and timing, especially since a wide variety of national interests have
to be taken into account; but there should be no difference of opinion as to
the unworkability of a policy of forcing interest rates to artificially low levels
and keeping them there. Such a policy would be self-defeating, leading
eventually to unbridled inflation or to a network of direct controls of wages,
prices, and the use of credit.
Another factor bearing on the maintenance of price stability for sound
economic growth is the control of unit production costs—a responsibility
that in our free society rests primarily with private individuals and groups.
An important aspect of cost control is the achievement and maintenance
of a proper relationship between wage and productivity changes in the
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economy as a whole. In general, if average increases in wages and salaries
are inconsistent, over the long run, with average improvements in productivity, prices may be expected to trend upward. Wage settlements negotiated by management and labor should not preclude price reductions in
parts of the economy where productivity rises especially rapidly. High
wages provide a dependable source of increased economic demand only
to the extent that they are justified by productivity performance. In the
last analysis, the only way to assure that, for the economy as a whole,
maximum employment and maximum production also mean maximum
purchasing power is to keep wage improvements generally within the range
of productivity advance.
The prolonged shutdown of the steel industry in the latter half of 1959
emphasizes another important implication of labor-management negotiations. Failure to achieve prompt, as well as reasonable and realistic, settlements of outstanding differences can lead to imbalances in production rates
and inventories. These imbalances, and the attendant uncertainties and
disappointments of expectations, can have a harmful effect on economic
stability and on the general level of employment. It is important for labor
and management to conduct their negotiations and settle their differences
in a responsible manner and thus avoid inviting new Government controls
and new limitations on their initiative.
The maintenance of price stability is significantly affected also by Government price and income support policies for agriculture. In this area, policies that would raise consumer food prices and tend to increase production
costs through compensating wage adjustments must be avoided.
Tax Policy
Taxation is another major area in which Government can contribute
significantly to the speed of economic growth. A tax system must, of course,
provide the revenues needed to cover governmental expenditures over
reasonable periods, though a balance is not required every year. A
budgetary surplus in prosperous times helps curb inflationary pressures, and
a deficit during a period of recession may help reverse the downturn. More
positively, a selective revision of our tax structure is needed to promote
incentives and to maintain the vigor of the enterprise system. But it is
important that the full benefits of tax revision should not be jeopardized by
the hasty improvisation of reductions in the hope of countering cyclical
downturns in economic activity.
Opportunities for effective tax revision will be afforded more readily as
tax revenues increase with the growth of the economy. Thus, economic
expansion at a rate comparable to that achieved in the period since 1946
would yield several billion dollars of additional receipts annually within
the existing tax structure. However, the full amount of these potential
increases in tax revenues would not be available for new expenditure programs or tax relief, inasmuch as programs undertaken pursuant to legisla-
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tion already enacted will require increasing outlays in the future. The
large veteran population is aging and, under present laws, expenditures for
pensions, compensation, and medical care may be expected to grow. The
annual cost of the medical care program for the aged enacted in 1960 will
take some time to reach a maximum. Many public works projects are
still in the early stages of construction, and their annual costs have not
yet reached a peak. The civilian space program is expanding, and current appropriations exceed current expenditures. Although anticipated
increases in expenditures, such as those just outlined, may be offset by the
reduction or termination of some programs, a continuing upward trend
in Government spending is foreseen.
Clearly, tax relief depends not only upon the rapid growth of the private
sector but also on continuing budgetary discipline; and the chief objective
of such relief, with due regard to equity considerations, should be the acceleration of the growth of the national product, especially through the
sharpening of incentives for private investment. Government must keep
a constant watch over its expenditures and at the same time look for opportunities to effect tax changes that will provide both the greater means and
a greater stimulus to economic growth. Many features of the tax revision
enacted in 1954 were designed with this dual purpose in view.
Measures to Reduce Unemployment
As the opening section of this chapter implies, further advance toward
moderating cyclical fluctuations in the volume of employment could contribute significantly to more rapid economic growth. Maintenance of reasonable price stability would give strong support to other efforts in this
direction. Federal and State governments must be prepared to take positive steps to counteract or moderate the impact of declines. In addition
to making prior provision for automatically cushioning economic contraction, they may have to enact emergency measures, if these are warranted,
or to incur temporary budgetary deficits.
Steadier and fuller employment of the labor force, which presents the
greatest and most complex challenge to public and private policy, is a problem that has structural as well as cyclical aspects. The problem cannot be
resolved only by the moderation of fluctuations in economic activity as a
whole; a continual, more effective matching of labor supply and demand
in specific geographic areas, industries, and occupations is also required.
Such matching must be as smooth as possible in order to overcome dislocations incident to technological change, the transition from agriculture to
industry, long-term shifts in product demand and industry location, and
international competition. While corrections of these conditions are found
most readily in a stable and prosperous economy, special remedial measures
also are required. Although the Federal Government cannot assume the
major responsibility for such measures, it can participate effectively in a
joint, many-sided program.
GO
Above all, well directed local efforts must be made to develop new industries in areas of relatively high and persistent unemployment and underemployment. Technical assistance is currently available from the Federal
Government, but legislative authority to extend and strengthen existing
programs and to make available a new program of financial assistance is
urgently needed.
The Economic Report of January 1960 pointed out that legislation
to facilitate structural adjustments should meet several tests. It should
be designed to stimulate and complement the efforts of local communities and citizens5 groups to help themselves, promoting as much direct
participation as possible on the part of private financial institutions and of
State and local agencies. It should concentrate on areas in greatest need
of assistance and avoid dispersing funds over wide regions with little lasting
effect. It should encourage the creation of new job opportunities, not
merely the transfer of jobs from one part of the country to another. It
should include provision for technical aid in the economic diversification of
rural low-income areas and of single-industry communities, as well as assistance for communities of a predominantly industrial character. And it
should encourage programs of vocational training and retraining to upgrade
the qualifications for new jobs of residents in areas of persistent
unemployment and underemployment.
More general measures are needed to ease existing hardships and to
limit the spread of distress to other areas not now affected. Thus, greater
attention must be given to the change in the pattern of employment opportunities in the direction of occupations and professions requiring higher
levels of education and training. The trend away from heavy, unskilled
labor may be expected to continue or even quicken as our technology
progresses. Therefore, maximum future employment depends in part on
the timeliness and success of private and public efforts to adapt our labor
force by improving job counseling and placement, by strengthening vocational education and training, by eliminating discrimination in the labor
market, by raising standards of educational achievement, and by increasing
the number of competent teachers.
Education and Health Services
Advances in education are, of course, important from more standpoints
than the enhancement of employability. Along with improvements in
health, they raise the Nation's productivity potential, provide a key to
greater individual well-being and security, and add to the quality and diversity of social life.
Though standards and performance in the fields of education have
steadily progressed, much remains to be accomplished. Our educational
institutions must prepare for much greater numbers of high school, college,
and graduate students. While enrollment in public elementary schools
may rise by nearly 2.9 million, or 12 percent, over the next eight years, the
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number of students in public secondary schools is expected to increase by
3.8 million, or about 30 percent. Furthermore, the number of students
attending colleges and universities, now about 4.0 million, may increase by
another 2.3 million, or nearly 60 percent.
This growth will require a huge expansion of the Nation's commitment
to education. Primary responsibility for meeting the demand should remain with local and State governments and with private groups, as the
Federal Government provides important supplements. Federal financial
assistance to education will reach about $1 billion in 1962, and this amount
does not take into account educational benefits from Federal outlays of
billions of dollars a year for research and development. Our educational
institutions also derive large financial benefits from the tax treatment of
contributions made to them.
Like education, health activities will provide both supports and outlets
for accelerated economic advance. Basic studies of the emerging needs in
these areas and of public and private roles in meeting them have been
made under Government sponsorship. As the population continues to grow
rapidly and living standards rise, the Nation's demands for health services
will greatly expand. More than $25 billion—three fourths from private
sources—is being expended annually on health. Federal expenditures, including outlays of the National Institutes of Health for medical research
and training and the medical program of the Veterans Administration,
will amount to about $2.2 billion in the fiscal year 1962, compared with
$2.0 billion in the current fiscal year and $1.8 billion in fiscal 1960; within
the 1962 total, Federal expenditures for hospital construction, mainly grants,
are estimated at $236 million, an increase of 7 percent over such expenditures in the current fiscal year. Important Government action was taken
last year to improve health services for needy older people, but more remains to be done under private as well as public auspices. Especially, increasing attention has to be directed toward augmenting the number of
doctors and dentists as the population expands. A new 5-year, $100 million
program of grants for the construction of medical and dental schools has
been proposed.
Some improvements will be needed in Government programs of social
insurance that supplement private provisions for protection against the hazards and hardships of income loss through unemployment, old age, disability,
and death. In addition to their value in alleviating personal hardships,
these programs have demonstrated their usefulness in helping achieve
economic growth and stability. Minimum wage laws also, when carefully
designed and administered, help safeguard wage standards for workers at
the fringes of competitive labor markets and encourage the spread of more
efficient productive techniques.
fnternation al Responsibilities
Economic growth requirements must be viewed in the light of our international responsibilities as well as our constant striving for domestic im-
62
provement. Despite the great contributions made toward the progress
of the less developed countries, further vast efforts are required to
help raise their living standards. We hope that, in the future, the nations
we helped in their time of critical need and which have now regained their
economic strength will participate more fully in bilateral and broader joint
programs of investment, grants, and technical aid.
For our part, we can discharge our international obligations most effectively if we achieve sound as well as rapid economic growth. This means
that public and private efforts to speed the expansion of our national product
should avoid inflation, aim at solution of our balance of payments difficulties,
maintain world confidence in the value of the dollar, and strengthen our
competitive position in world markets. We may expect our allies to play
a major role in the common defense and in the expansion of the world
economy, but the principal burden of leadership in the quest for peace with
justice will still be ours. To carry this burden, we must be prepared to
follow policies, private and public, that will keep our economy strong and
vigorous.
Statistical Information
In an economic and social system organized around the principle of
shared responsibility, a need of a technical order arises, namely, to make
reliable statistics and other information broadly available in order to facilitate private and governmental decision-making, forecasting, and action.
The variety of our economic and social life and the very pace of change
require constant re-examination, expansion, and revision of the body of
statistical and nonstatistical information designed to meet current and
anticipated needs. Consistently with the objectives of the Employment Act,
the Council of Economic Advisers has, in statistical appendixes to the
Economic Report of the President and in Economic Indicators, facilitated
wider access to needed economic data. The Executive Branch in general,
and also the Congress, have participated in numerous undertakings to
extend, diversify, and renovate the Federal contribution to the supply of
published statistics and basic reports. Further improvements that will be
needed include strengthening the national economic accounts, particularly
the development of better estimates in terms of constant dollars; achieving
more comprehensive coverage, as well as speedier collection of certain key
data in the balance of payments; increasing the number of weekly series,
so important to the appraisal of economic conditions and outlook at critical
points in the business cycle; providing better information on inventories,
the importance of which was dramatically illustrated during the steel
strike of 1959 and its aftermath; enlarging available information on new
orders, businessmen's and consumers' intentions, and other indicators useful in appraising the economic outlook; and expanding the supply of
regional and area information to facilitate the planning and administration
of private and public activities.
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LEGISLATIVE PROPOSALS
To a considerable extent, the Federal policies needed to help achieve
sound and rapid economic growth can be applied administratively and
require no legislative action by the Congress. However, there are important matters on which action is needed.
First, total funds appropriated by the next Congress for the fiscal year
1962 should be held within the limits of expected revenues. The budget
presented to the Congress conforms to this standard and at the same time
makes adequate provision for needed programs. It provides for an increase
of $1.5 billion for major national security programs, and an additional $200
million for economic and financial assistance under the mutual security
programs. It also provides for substantial increases in research and development activity and in other programs that have a significant bearing on
the welfare of our citizens and on the rate and stability of economic growth:
the development of natural resources, assistance to areas of high and persistent unemployment, the improvement of health and housing, and medical
care for elderly persons.
Second, the budget for fiscal 1962 makes certain suggestions for revenues
to cover these expenditures. It is recommended there that the present tax
rates on corporation income, and the excise taxes scheduled for reduction or
termination on July 1, 1961, be extended for another year. Unless these tax
rates are extended, Federal Government revenues in the fiscal year 1962 will
be $2.6 billion less than estimated and $3.7 billion less on a full year basis.
To obtain additional revenues in the coming fiscal year and later years, it
is proposed that measures be enacted to charge users for special benefits
which they derive from particular Government activities. Thus, the highway fuel tax should be raised to 4^ cents per gallon to provide funds in the
Highway Trust Fund sufficient for construction of the interstate highway
system on schedule; and the action taken by the Congress in 1959, which
would divert funds from the general fund of the Treasury to build this road
svstem, should be rescinded.
It is also recommended that Congress raise the excise tax rate on aviation
gasoline from 2 cents to 4% cents per gallon, impose the same tax on jet fuels,
and retain the receipts from these taxes in the general fund to help defray the
cost of the Federal airways system.
The request for a rate increase which will put the postal system on a selfsupporting basis, apart from specified public services, is renewed. It is
unreasonable that the system should operate at a deficit of nearlv $900
million a year. Those who use postal services should pay prices sufficient
to avoid deficits on this scale.
Third, the request is again made that the Congress give the Secretary
of the Treasury authority to raise funds in the long-term capital market
when, in his judgment, this is in the public interest, even if the cost of the
funds is above 4*4 percent. Some long-term borrowing may be possible
64
under current conditions without lifting this interest-rate ceiling, but the
ceiling remains an important impediment to the Treasury's flexibility in
achieving significant debt lengthening.
Fourth, the request for legislation to enable the Federal Government to
assist areas that experience high and persistent unemployment is again
repeated. The Administration's proposal is drafted to meet the standards
described earlier in this chapter. Eligibility requirements for assistance
under the proposed new program would direct funds to localities of greatest
need and avoid spreading available Federal funds too thinly over a larger
number of areas.
Fifth, it is again urged that steps be taken to promote long-term agricultural adjustment anr1 to make effective use of accumulated agricultural
surpluses. Specifically, the price support laws should be modified to reflect
unit cost reductions resulting from increasing technological efficiency on
commercial farms and thereby reduce budget expenditures for the stabilization of farm prices and support of farm income. Energetic administration of the Rural Development Program is the most promising means for
assisting readjustment of that part of the farm population which has neither
sufficient productive farm resources nor adequate employment opportunities
off the farm. Maximum efforts should also be made to use more of our
accrued agricultural surpluses in the Food-for-Peace Program.
Sixth, Congress failed last year to pass legislation to supplement the
Federal Government's established programs for assisting education by aiding States and local communities and institutions of higher education to
provide needed educational facilities. Legislative proposals which constitute a sound approach to this problem were put before the last Congress
by the Administration; they are again recommended for favorable
consideration.
Seventh, as proposed in earlier Economic Reports, the Congress should
enact legislation to extend coverage of the unemployment compensation
system to about 3 million additional workers, most of whom are employed
in firms having fewer than four employees. With appropriate action by
the States to raise the level and to increase the duration of benefits, this
legislation would make the system more effective in helping to stabilize
our economy during periods of rising unemployment and in alleviating
personal hardship. The States are again urged to increase benefits to
make the great majority of covered workers eligible for payments equal to at
least half their regular earnings, and to increase the maximum duration
of benefits to 26 weeks a year for all eligible workers who remain unemployed that long. Under our Federal-State system, primary responsibility for the level and duration of benefits rests with the States; however,
in periods of especially high rates of unemployment that have been prolonged, the Congress should give consideration to a program which would
temporarily supplement regular benefits in some such manner as was -done
with good effect in 1958.
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Eighth, to enhance the progress being made for equalizing economic
opportunity for all citizens, the Congress is again urged to establish a
statutory commission on equal job opportunities under Government contracts and to enact legislation for carrying out the proposal of equal pay
for equal work without discrimination because of sex.
Ninth, it is again recommended that the coverage of the Fair Labor
Standards Act be extended to several million workers not now receiving
its protection, and that a moderate adjustment be made in the minimum
wage provided in the Act.
Tenth, the program under which Mexican workers are brought into the
United States for agricultural work terminates at the end of 1961, unless
extended. Legislation to extend this program should include improvement
of the present law's provisions to ensure that employment of Mexican
agricultural labor will not adversely affect the wages and employment opportunities of our own farm workers.
Eleventh, the Congress is also urged to remedy the serious defects in the
legislation enacted in 1958 to protect the interests of the Nation's working
men and women in private pension and welfare plans; and to revise the outmoded provisions of the 8-hour laws applying to Federal and certain federally assisted construction projects.
Twelfth, the last Congress enacted a program of Federal assistance for
medical care for older persons under the regular old age assistance program
and a new program of medical assistance for needy older people who are
not recipients of public assistance. This voluntary program under FederalState-local auspices is sound in principle. However, under the law enacted,
many older people will not be able to obtain needed protection to cover
major hospital and medical costs incurred because of serious illness. It
is recommended that the Congress give further consideration to the recommendations made last spring by the Administration.
Thirteenth, existing programs for housing and community development
are no longer experimental, and their successful operation in future years will
be enhanced by the repeal of statutory termination dates and the removal
of limitations on authorization amounts that can more properly be regulated
through the normal appropriation process. Similarly, statutory maximum
permissive interest rates should either be eliminated or adjusted to levels
that will not bring about a restriction from time to time in the flow of investment funds. Permanency and flexibility in the basic housing programs will
permit communities and industry to plan and regulate future activity without the burden of depending on, and adjusting to, the provisions of annual
legislative enactments. To this end, the present authorization limitations
should be removed on the amount of mortgages that can be insured by the
Federal Housing Administration; similarly, legislative limits on grants for
urban renewal projects should be removed and permanent authority for
annual appropriations substituted. Also, the program to insure loans on
home improvements should be made permanent. Present ceilings on
66
interest rates should be eliminated or substantially raised for loans made or
guaranteed by the Veterans Administration and for mortgages insured by
the Federal Housing Administration on rental housing, especially housing
for the elderly, and on family housing built for occupancy by members of
the armed services.
Fourteenth, suggestions made in previous years for amendment of
the antitrust laws, to improve the competitive quality of our economy,
are repeated: (1) Firms of significant size engaged in interstate commerce
and proposing to merge should be required to notify the antitrust agencies
of their intention. (2) The Federal Trade Commission should be given
authority to seek a preliminary injunction in the case of mergers likely to
violate the antitrust laws. (3) The Attorney General should be given the
power to issue civil investigative demands for the necessary facts when civil
procedures are contemplated in antitrust cases. This last recommendation,
which passed the Senate in the 86th Congress, would simplify and greatly
speed up all such proceedings.
Finally, the recommendation that the Congress amend the Employment
Act of 1946 to make reasonable price stability an explicit goal of national
economic policy is renewed. As pointed out in the Economic Report of
January 1960, this goal already appears to be implied in the declared objectives of the Act, but an amendment such as the one proposed would increase
public awareness of the price stability problem and strengthen the Government's hand in pursuing effective policies to help prevent inflation. The
proposed amendment is limited to a change in the language of the Act's
declaration of policy and would accomplish its aim without placing
restrictions on the effective operation of economic markets.
These proposals, like others placed before the Congress by the Administration, have been designed to promote the sound growth of our economy
on the principles set forth in this Economic Report. They indicate routes
along which we may move ahead confidently within our system of shared
responsibility, in a manner that fosters private competitive enterprise and
recognizes the obligations of State and local government, to achieve the
purposes proclaimed in the Employment Act.
Appendix A
REPORT TO THE PRESIDENT ON THE
ACTIVITIES OF THE COUNCIL
OF ECONOMIC ADVISERS
DURING I960
576899 O—61-
Letter of Transmittal
DECEMBER 31,1960.
The PRESIDENT.
SIR: The Council of Economic Advisers submits this Annual Report for
calendar year 1960 in accordance with the requirements of Section 4(d)
of the Employment Act of 1946.
Respectfully,
RAYMOND J. SAULNIER, Chairman
KARL BRANDT
HENRY C. WALLIGH
Report to the President on the Activities of the
Council of Economic Advisers During 1960
The year 1960 marked the eighth in which the Council of Economic
Advisers has operated under Reorganization Plan No. 9 of 1953. It will
be recalled that in the Appropriation Act for Fiscal Year 1953 the Congress
provided funds sufficient for continuation of the Council only through
March 1953; and that the Supplemental Appropriation Act approved at
the end of that month provided for an Economic Adviser to the President
and a small staff to perform the functions previously assigned to the Council.
The functions remained with the new Economic Adviser until the end of
July 1953, when they were restored to the Council as reconstituted under
the Reorganization Plan transmitted by the President to the Congress on
June 1. In accordance with this Plan, the Council has operated during
the past 7]/2 years as a source of professional advice to the President and
the Administration generally.
It is useful to recall also that the President's message to the Congress,
which accompanied Reorganization Plan No. 9 of 1953, announced the
establishment of an Advisory Board on Economic Growth and Stability,
under the chairmanship of the Chairman of the Council of Economic
Advisers. This Board, composed of high officials of those Federal departments and agencies having a major responsibility in economic matters, was
designed to enhance the effectiveness of the Council at the top policy level
of the Executive Branch by providing a forum for regularly scheduled
interdepartmental discussion of economic policy questions. The Board
has met weekly with the Council for this purpose; and for the past year and
a half, it has included in one meeting each month the heads of all major
Federal lending, loan insuring, and loan guaranteeing agencies. These
monthly meetings have given the heads of Federal credit agencies, who are
responsible for transacting financial business that runs into many billions of
dollars annually and has a profound effect on the economy, an opportunity
to exchange views with senior policy officials of other Federal departments
on the state of the economy and on the most effective orientation of their
agencies' policies.
Member agencies of the Advisory Board on Economic Growth and Stability are presently represented by the following officials:
Department of State—Edwin M. Martin, Assistant Secretary for
Economic Affairs
Department of the Treasury—Julian B. Baird, Under Secretary
73
Department of Agriculture—True D. Morse, Under Secretary
Department of Commerce—Philip A. Ray, Under Secretary
Department of Labor—James T. O'Connell, Under Secretary
Department of Health, Education, and Welfare—Bertha Adkins,
Under Secretary
Board of Governors of the Federal Reserve System—Abbot L. Mills,
Member of the Board
Bureau of the Budget—Elmer B. Staats, Deputy Director
Export-Import Bank of Washington—Samuel C. Waugh, President
The White House Office—Don Paarlberg, Special Assistant to the
President
Council of Economic Advisers—Raymond J. Sauhiier, Chairman
Council Activities
As prescribed in the Employment Act of 1946, the Council continued
in 1960 to analyze economic developments for the President, reviewed and
evaluated many different legislative proposals and administrative actions
for their effect on the stability and growth of our economy, made recommendations from time to time to the President for policies that would
help promote high levels of employment, production, and purchasing power,
and assisted the President in the preparation of his annual Economic Report
to the Congress.
The Chairman of the Council, accompanied by the other Council members, testified before the Joint Economic Committee of the Congress on the
1960 Economic Report of the President. At this Committee meeting, the
character and effectiveness of economic policies in 1959 were reviewed, the
economic prospects for 1960 were appraised, and the President's recommendations for policies to promote economic growth and price stability in
1960 were examined.
The Chairman, accompanied by the other members of the Council, also
testified on S. 64, a bill which would have amended the Employment Act
to make relative stability of prices an explicit aim of Federal economic
policy, and on S. 2382 which would have amended the Employment Act
to give the President authority to hold hearings on proposed price and
wage increases and to report, and make recommendations, on such increases;
in the testimony, the possible adverse consequences of the changes proposed
in the latter bill were pointed out.
Participation in international meetings here and abroad continues to be
an important part of the Council's activities. In the past year, two members of the Council and members of the Council's staff took part in meetings held in Paris under the auspices of the Organization for European
Economic Cooperation (OEEC), and prepared, as in previous years, a
report, for use in the OEEC's annual review, of economic conditions in
the United States. All members of the Council participated in preparatory work for the new Organization for Economic Cooperation and Development. The Council and members of its staff received various visiting
74
groups of economists and officials from other countries and international
organizations, and two members of the Council staff held a number of
seminars for foreign businessmen, educators, students, and Government
officials.
As the law prescribes, in performing these functions the Council drew
heavily on the resources of the operating departments and agencies of the
Federal Government and availed itself fully of the information and counsel
of private individuals and groups. The Council met during the year with
representatives of industrial, commercial, and financial concerns, and with
university economists, representatives of agriculture, industry, and labor,
and various other groups and individuals to consider business conditions,
•the economic outlook, and policies affecting the growth and stability of our
economy. Throughout the year, Council staff members were in touch with
experts in other Government departments and agencies and with private
individuals and groups. Through its Chairman, the Council reported
frequently to the President on current economic developments and their
implication for the achievement of the objectives of the Employment Act.
Council Membership
The Council membership remained unchanged during the year.
Dr. Saulnier has served as Chairman of the Council since December 1956.
He is on leave of absence from Barnard College, Columbia University, where
he is Professor of Economics, and from the National Bureau of Economic
Research.
Dr. Brandt, who has been a member of the Council since November 1958,
is on leave of absence from Stanford University, where he is Professor of
Economic Policy and Associate Director of the Food Research Institute.
Dr. Wallich has served as a member of the Council since April 1959.
He is on leave of absence from Yale University, where he is Professor of
Economics.
Council Staff
The Council is assisted by a staff of 12 senior economists and statisticians
who are experts in their fields. Each staff member is responsible for obtaining the cooperation of other Government agencies and of business, labor,
and other private groups in analyzing and evaluating economic developments
in his assigned areas, and for keeping the Council advised of current and foreseeable developments. The full-time staff members are Bernard S. Beckler,
Harold F. Breimyer, Henry W. Briefs (on leave from Georgetown University), Samuel L. Brown, Robert C. Colwell, Peter G. Fousek (on leave from
the Federal Reserve Bank of New York), Frances M. James, Marshall A.
Kaplan, David W. Lusher, Walter F. Stettner, and Collis Stocking, who
is also Administrative Officer of the Council Charles A. Taff, of the
University of Maryland, serves as a Consultant to the Council. Irving H.
Siegel, who served as a Consultant in the preparation of this Report, resigned
75
from the Council Staff in September 1960, to join the Operations Research
Office of Johns Hopkins University. Hal B. Lary resigned from the Council
staff in July I960, to join the National Bureau of Economic Research as
Associate Director of Research.
Committees and Task Forces
The Council members and staff participated during the year in the work
of a number of important committees and task forces within the Government. The Chairman of the Council served as a member of the Cabinet
Committee on Price Stability for Economic Growth, chaired by the Vice
President of the United States. He also served as a member of the informal group which discussed problems of financial policy with the President; the other members were the Secretary of the Treasury, the Chairman
of the Board of Governors of the Federal Reserve System, and the Special
Assistant to the President with responsibilities in the economic area.
The Chairman of the Council regularly attended Cabinet meetings, special meetings on legislative matters, and meetings of the National Security
Council at which economic matters were discussed. Members of the
Council and its staff participated in the work of the Planning Board of
the National Security Council.
The Chairman of the Council served as Chairman of the Cabinet Committee on Small Business, was a member of the Board of the Federal National Mortgage Association, represented the Council on the Civil and Defense Mobilization Board and on the President's Special Committee on
Financial Policies for Postattack Operations, and served on the Interagency
Task Force for Implementation of the Program for Increases in the Export
Sales of the United States.
Dr. Brandt served as a member of the interdepartmental Committee for
Rural Development Program, under the chairmanship of the Under Secretary of Agriculture, and as a member of the interagency work group on
research and analysis of the Federal Council on Aging; on a panel of
the Annual Outlook Conference of the Department of Agriculture; on
a panel of the National Conference on Water Pollution called by the
Surgeon General; and as Chairman of an interdepartmental working party
of experts on long-term economic projections to assist the Department of
State in formulating the United States position on this subject in the
United Nations. He also attended regularly the meetings of the Council
on Foreign Economic Policy.
Dr. Wallich participated in the work of the National Advisory Council,
attended the first meeting of the Board of Governors of the Inter-American
Development Bank in San Salvador, and participated in the negotiations with
representatives of the German Government in Bonn in November 1960.
He also served as a member of the interdepartmental Committee to Coordinate Federal Urban Area Assistance Programs, under the chairmanship of
the Under Secretary of Commerce.
Publications Work
In keeping with its responsibilities under the Employment Act, the Council assisted the President in the preparation of his annual Economic Report
to the Congress. Copies were distributed to members of the Joint Economic Committee, all other members of the Congress, departments and
agencies of the Government, representatives of the press, and depository
libraries throughout the country. There was a large demand for the 1960
Report. The Superintendent of Documents sold to the general public his
entire supply of 21,000 copies.
The Council prepares Economic Indicators, a monthly compendium of
current economic statistics published by the Joint Economic Committee of
the Congress. During the year, the Council, in cooperation with the staff
of the Joint Economic Committee, completed an extensive revision of
Economic Indicators, to make greater use of seasonally adjusted data and
present additional information on a number of topics, including unemployment and the balance of payments. Copies of Economic Indicators are
distributed to all members of the Congress and to depository libraries. In
addition, 10,000 copies of each monthly issue are sold by the Superintendent
of Documents to subscribers and others.
The Council participated in the preparation of the Third Progress Report by the Cabinet Committee on Small Business. The Report was published and issued by the Council for the Committee.
Council Funds
For the fiscal year 1961, the Congress appropriated $390,000 for the
Council's activities. This total was $5,000 less than the amount appropriated for the fiscal year 1960. Since the date of Congressional approval of
the appropriation, there has been an additional annual cost of $21,000 as a
result of Public Law 86-568, which increased Federal employees' salaries.
This amount is being included in a supplemental budget request to be
presented to the Congress.
77
Appendix B
SOME RECENT ECONOMIC DEVELOPMENTS
I. Employment and Earnings
II. Agriculture
III. United States Foreign Trade and Payments
79
I. Employment and Earnings
Demand for labor was generally high during the first half of I960, and
in the second quarter of the year total civilian employment expanded to a
record, seasonally adjusted figure of 66.9 million. For the year as a whole,
employment averaged 66.4 million, nearly 800,000 above 1959. Growth of
the labor force was about as large as the increase of employment, and unemployment, accordingly, averaged 5.6 percent of the civilian labor force
for the year, approximately the same as in 1959 (Table B-l). (For comparability with earlier years, the 1960 data used here do not include the
new States of Alaska and Hawaii.)
TABLE B-l.—Growth of the labor force, by employment status, 1959-W
[Millions of persons 14 years of age and over]
1960
1959
Employment status
1960
First Second Third Fourth
quarter quarter quarter quarter
Seasonally adjusted
71.9
72.8
72.0
73.0
73.0
73.2
2.5
69.4
2.5
70.3
2.5
69.5
2.5
70.5
2.5
70.5
2.5
70.7
65.6
66.4
65.9
66.9
66.7
66.2
5.8
59.7
5.7
60.7
5.5
60.2
5.7
61.3
5.9
60.9
5.7
60.4
_
3.8
3.9
3.6
3.6
4.0
4.6
Unemployment as percent of civilian labor
force . .-
5.5
5.6
5.2
5.1
5.7
6.5
Total labor force
Armed forces
Civilian labor force
Employment
Agricultural
Nonagricultural
Unemployment
_ .
NOTE.—For comparability with earlier periods, data for 1960 have been adjusted to exclude Alaska and
Hawaii.
Detail will not necessarily add to totals because of rounding; in addition, seasonally adjusted totals may
differ from sum of components because totals and components have been seasonally adjusted separately.
Source: Department of Labor.
After the middle of 1960, however, employment tended to decline. In
the third quarter the average was 66.7 million, and in the fourth quarter
it was 66.2 million; the December figure, after allowance for seasonal influences, was 66.0 million. Unemployment, seasonally adjusted, increased
from 3.6 million, or 5.1 percent of the civilian labor force, in the second
quarter to 4.6 million, or 6.5 percent of the labor force, in the fourth. Hours
worked in manufacturing industries declined through the year, and the workweek averaged 39.7 hours, compared with 40.3 hours in 1959.
81
Hourly earnings of production workers in manufacturing industries increased slightly during the year, averaging $2.32 in December, against $2.27
in December 1959. Average weekly earnings, reflecting the reduced workweek and lower employment in the more highly paid metalworking industries, tended to decline slightly in the course of the year, and real weekly
earnings, adjusted for the change of consumer prices, also were lower.
Basic wage rates, however, rose by somewhat more than 3 percent per year,
as wage increases were put into effect for about 7 million employees, nearly
90 percent of those covered by major collective bargaining agreements.
GROWTH OF THE LABOR FORCE
The labor force expanded markedly during the first half of 1960, paralleling the increase of civilian employment. As Table B-2 indicates, growth
TABLE B-2.—Growth of the labor force, by sex and age, 1950-60
[Thousands of persons 14 years of age and over]
Net change
Sex and age
Total labor force _
_ .
1950-55
annual
average
_
Male
14-19 years
20-24 years. _ _
25-34 years
35-64 years
65 years and over
,.
,_ ._
,.
Female
14-19 years
.
20-24 years
25-34 years . 35-64 years
65 years and over
. - - _ . .
._
_
1955-60
annual
average
1958 to
1959
1959 to
1960
829
785
662
874
397
253
279
236
-13
-75
84
386
15
86
45
-116
286
-48
91
138
-128
234
-57
90
88
-98
191
-36
432
532
383
638
1
-45
32
404
39
82
22
-30
434
25
80
-26
-105
419
14
146
86
13
324
70
NOTE.—For comparability with earlier years, data for 1960 have been adjusted to exclude Alaska and
Hawaii.
Detail will not necessarily add to totals because of rounding.
Source: Department of Labor.
was larger than in 1959, and moderately above the average for the past
ten years.
Over the past decade, important structural changes have taken place in
the age and sex distribution of the working population, and even more
significant changes are to be expected in the next ten years. The proportion of women in the labor force has been increasing continuously, and the
average age of the working population has been rising. Of the total labor
force growth of 8.1 million in the decade of the 1950's, 4.8 million were
women, most of whom were 35 years of age or older. A large part of this
change occurred during the great expansion of employment from 1954
to 1956, when nearly 2 million women entered the labor force, but increasing participation in the labor force by women has characterized the entire
82
decade. In I960, nearly three-fourths of the increase of the Nation's work
force consisted of women.
Important shifts have also occurred in recent years in the age structure
of the labor force. The number of workers 20 to 24 years of age has
declined, while the number of those 25 to 34 years of age has remained
practically unchanged. This was due to the low level of births during the
1930's. Workers 35 to 44 years old increased by 2.4 million, or 17 percent,
from 1950 to 1960, while the number of those 45 and older expanded by
5.3 million, or at a rate nearly twice that for the labor force as a whole.
The proportion of workers under 35 years of age is now 40 percent, compared with 44 percent in 1950, and the number 45 or older is now 38
percent, compared with 34 percent in 1950. However, the number of
teenage workers started to rise in 1955 as the more numerous generation of
the 1940's began to reach working age. In 1960 about 240,000 teenagers
were added to the labor force, compared with 170,000 in the preceding year.
Under favorable economic conditions, the rising tide of young people
and high labor force participation among older women may expand the
labor force by more than 13 million over the course of the next decade.
This would represent the greatest numerical expansion in the history of our
country. Although a larger proportion of young people are expected to
be in school, the number of members of the working population under 25
may increase by 6 million. There may be an especially great inflow of
teenagers into the labor force in the middle of the decade as the large
numbers born in 1946 and 1947 become 18, the usual age of high school
graduation. The number of older workers will also rise sharply. Those
over 45 may increase by 5*/2 million despite further declines of labor force
participation by men over 65. The highly productive group 35 to 44 years
of age, on the other hand, may decline slightly, and a relatively small
increase of the number 25 to 34 is expected.
Thus, workers under 25 years of age and those 45 years and over will
probably account for almost 90 percent of the total growth of the labor
force between 1960 and 1970. With nearly half of the total increase in
the younger group, they will comprise 23 percent of the total labor force
in 1970, compared with 19 percent in 1960. At the same time the proportion that will be 25 to 44 years old will decline from 43 percent to less than
39 percent in 1970. These impending changes constitute both an impressive challenge and a great opportunity for the maximum development and
utilization of our human resources.
CHANGES OF EMPLOYMENT
The total number of employees on nonagricultural payrolls expanded
rapidly after the end of the long steel strike in November 1959, and
continued to grow at a more moderate rate during the first six months of
I960, reaching a record level of 53.1 million, seasonally adjusted, by the
83
middle of the year. Early in the year, however, divergent trends began
to appear in various industries.
Employment in durable goods manufacturing turned downward in
March, as work forces were reduced in the transportation equipment and
primary metals industries. As the year progressed, work force reductions
occurred in other durable goods sectors. Considered as a group, durable
goods manufacturing industries registered employment declines, after February, in nearly every month of 1960. In the manufacture of nondurable
goods, employment increased until June; but after midyear, declines appeared also in this sector. In the latter months of the year, reductions of
work forces continued in most of the 21 major manufacturing industries. In
the group of nonmanufacting industries, employment continued to expand
until September, but moderate declines appeared during the final months of
the year.
In December, total payroll employment, seasonally adjusted, in nonagricultural industries amounted to 52.2 million, which was 920,000 below the
crest at midyear and about 500,000 below the December 1959 figure. The
decline of employment has been concentrated in manufacturing industries,
while there have been some offsets in other industries, especially those producing services rather than goods (Table B-3).
Events in the labor market of 1960 are better understood in the light of
the longer-term changes whicli have been taking place in the industrial and
occupational structure of employment in the United States. Since the passage of the Employment Act of 1946, the growth of nonagricultural jobs
has increased total employment tyy inore than 11 million. Agricultural employment, on the other hand, hals continued to decline, dropping from 8.3
million, or 15 percent of the total, in 1946 to 5.7 million, or 8^ percent of
total employment, in 1960. This shrinking of employment on farms extends
a long-run trend that began generations ago when the United States economy
was almost exclusively agricultural. The decline has continued as more
power and machinery have been introduced into agriculture in partial replacement of farm labor, and as the national trend toward specialization
in enterprise has lifted more procurement and marketing functions out of
agriculture.
Nearly all of the growth of employment since World War II is accounted
for by the gain in service type activities and industries, including education,
distribution, finance, and business and personal services. Employment in
State and local governments has increased very sharply, with 55 percent
of the expansion occurring in the school systems of the country. Trade,
finance, and other services have also afforded expanding job opportunities.
An interesting parallel to this trend is found within manufacturing industry, where the numbers of salaried or "nonproduction" employees engaged in
service functions have increased in every major industry, while employment
of production workers has fluctuated widely and shown a tendency to decline.
These areas of expanding employment have continued to grow, or at least
have remained relatively steady, even during periods of recession. Producing
TABLE B-3.—Changes in nonagi'{cultural employment, by major
October 1959-December 1960
industry
groups,
[Thousands of persons, seasonally adjusted data]
October 1959 February 1960 June 1960 to
to February to June 1960 December
1960 i
1960
Major industry group
Total nonagricultural employment
_
970
Manufacturing
Durable goods
168
-916
545
.-.
-168
-452
29
452
13
48
7
3
5
3
-7
-1
-15
-113
-73
-25
-7
-3
0
0
2
9
16
26
13
-129
-82
-54
-19
-12
1
-38
-67
-33
-32
-3
51
3
4
-11
0
-10
538
Transportation equipment
Primary metal industries
Machinery (except electrical)
Fabricated metal products
Electrical machinery
Instruments and related products
Ordnance and accessories
Stone, clay, and glass products
Lumber and wood products (except furniture) .
Furniture and fixtures
Miscellaneous manufacturing industries
Nondurable goods
-246
Rubber products
Food and kindred products
Tobacco manufactures
Products of petroleum and coal
Leather and leather products
Paper and allied products
Printing, publishing, and allied industries
Textile mill products
Chemicals and allied products
Apparel and other finished textile products
-13
Nonmanufa'cturing
Transportation
Public utilities
Finance, insurance, and real estate
Contract construction
Mining
Service and miscellaneous
Wholesale and retail trade
Government
.
Federal
State and local
-3
5
5
6
19
26
-12
-23
-4
-10
-12
-15
6
-58
-19
-99
-218
425
237
37
-4
11
19
48
67
149
-13
6
7
9
9
29
85
105
-101
-3
45
-166
-40
36
-158
169
-15
113
29
76
10
159
1
Based on preliminary data for December.
NOTE.—These data represent employees in nonagricultural establishments. The figures for total nonagricultural employment will therefore differ from those shown in Tables B-5 and C-17. For explanation of differences, see footnote 1, Table C-22.
Figures exclude data for Alaska and Hawaii.
Source: Department of Labor.
services, they have been relatively immune to the employment impact of
the wide inventory fluctuations which have characterized postwar business
cycles. Consequently, the growing proportion of workers in service types
of employment has strengthened the resistance of the economy to cumulative
business downturns (Table B-4).
Analogous trends are clearly evident in the changing occupational structure of the employed labor force. "White-collar" occupations have grown
in importance as manual occupations have relatively declined. The growing occupational groups have also been those in which employment has
been relatively steady over the business cycle (Table B-5). It is perhaps
even more important that developments of recent years have resulted in a
general upgrading of the level of skill in the labor force. There has been
576899 O—61-
85
TABLE B-4.—Industrial structure of nonagi-{cultural employment, 1929, 1947, and 1957-60
[Thousands of persons]
1929
Industry
I9601
43 462
52 162
50 543
51 975
52, 895
31,483
31, 613
32,392
33,294
6,401
3,066
9,196
5,474
11,302
7,626
11, 141
7,893
11,385
8,126
11,645
8,455
534
2,532
1,892
3,582
2,217
5,409
2,191
5,702
2 198
5,928
2,236
6,219
3,127
2,089
1,431
4,783
2,495
1,672
6,336
3,871
2 348
6,395
3,810
2,374
6,525
3,931
2 425
6,637
4,072
2,485
_ ._ . .. 14, 927
19,842
20,679
18,930
19,582
19,603
8,445
1,497
3,907
1,078
12, 795
1,982
4,122
943
12, 910
2,808
4 151
809
11,658
2,648
3,903
721
12,237
2,767
3,902
676
12,266
2,770
3,901
666
51.9
54.3
60.4
62.5
62.3
62.6
Trade
Government _
_ _ .
._
Federal
State and local
_
Service and miscellaneous
Salaried employees in manufacturing
Finance, insurance, and real estate
_ .
Production emplovees in manufacturing _ _.
Contract construction
Transportation and public utilities
Mining
Stable and growing as percent of total
1
1959
23,620
__
.
1958
16, 114
.
Fluctuating or declining
1957
31 041
Total nonagricultural employment
Stable and growing
1947
Preliminary.
NOTE.—These data represent employees in nonagricultural establishments. The figures for total nonagricultural employment will therefore differ from those shown in Tables B-5 and C-17, which relate to
nonagricultural employment of the civilian labor force. For explanation of differences, see footnote 1,
Table C-22.
Data exclude Alaska and Hawaii.
Source: Department of Labor.
TABLE B-5.—Civilian nonagricultural employment, by major occupational groups, 1930, 1947,
and 1957-60
[Thousands of persons 14 years of age and over]
Occupational group
19301
Total nonagricultural
Stable and growing
Clerical workers
_ _ _ _ _
_ _
Service workers, including private household _
Professional, technical, and kindred workers. _
Managers, officials, and proprietors, except
farm
_
Sales workers _ _
__
Fluctuating or declining
Operatives and kindred workers
Craftsmen and foremen
Laborers
Stable and growing as percent of total
19472
19572
1958
1959
1960
38,365
49, 724
58, 957
58, 375
59,999
61, 010
19,092
26, 169
34,083
34,865
35,838
36,906
4,336
4,772
3,311
7,200
5,986
3,794
9,152
7,632
6,468
9,137
7,809
6,961
9,326
8,040
7,143
9,734
8,306
7,437
3,614
3,059
5,795
3,394
6,703
4,128
6,785
4,173
6,935
4,394
7,047
4,382
19, 272
23,554
24, 874
23, 510
24, 162
24, 104
7,691
6,246
5,335
12, 274
7,754
3,526
12,530
8,664
3,680
11, 441
8,469
3,600
11, 858
8,561
3,743
11, 938
8,511
3,655
49.8
52.6
57.8
59.7
59.7
60.5
1 Data for 1930 pertain to the "economically active civilian population" 10 years of age and over and are
similar,
but not strictly comparable, to other annual data in this table.
2
Figures shown for 1947 and 1957 are averages of data for January, April, July, and October since data
prior to 1958 are available only for these months. These averages, therefore, will differ slightly from the
annual averages shown in Table C-17.
N OTE.—These data represent nonagricultural employment of the civilian labor force. The figures for total
nonagricultural employment will therefore differ from those shown in Tables B-4 and C-22. For explanation of differences, see footnote 1, Table C-22.
For comparability with earlier years, data for 1960 have been adjusted to exclude Alaska and Hawaii.
Detail will not necessarily add to totals because of rounding.
Sources: Department of Commerce and Department of Labor.
86
a trend away from jobs requiring heavy, arduous, Unskilled labor and toward
those which require broad education and training. For professional and
technical workers, for example, employment opportunities have increased
dramatically. Heavy expenditures in industry as well as in educational
institutions for research and development, and rising demands for scientists,
engineers, teachers, and technicians have strengthened this trend. Employment of unskilled or semiskilled manual workers, on the other hand, has
expanded very little, or has actually declined, and has fluctuated with the
business cycle. High and rising levels of education and training required
for employment in the occupations where ample job opportunities are most
likely to be found emphasize the great importance of good secondary and
higher educations for the large numbers of young people who are entering
the labor force. These occupational and industrial trends make more
difficult the problem of unemployment for unskilled and semiskilled
workers in fluctuating or declining industries.
UNEMPLOYMENT
For the year 1960 as a whole, unemployment amounted to 3.9 million
persons or 5.6 percent of the civilian labor force, about the same as in
1959. This was lower than in the recession year of 1958, when unemployment reached a postwar peak of nearly 7 percent of the labor force,
but higher than in the period 1955 to 1957, when it averaged a little over
4 percent.
In the course of the year 1960, unemployment changed markedly. With
the recovery of employment after the long steel strike, unemployment
declined from about 4 million in the closing months of 1959 to 3.5 million
in the early part of 1960, or from about 6 to 5 percent of the civilian labor
force, seasonally adjusted. When in the second half of the year employment
declined, unemployment increased, reaching an average of 4 million in
the third and of 4.6 million in the final quarter. In December 1960, unemployment amounted to 4.9 million, or 6.8 percent of the labor force,
compared with 3.8 million, or 5.5 percent of the labor force, in December
1959. The increase during the second half of the year mainly affected
adult men and women, reflecting job cutbacks in manufacturing and
related industries.
The number of persons who normally work full time but for economic
reasons are working only part time is a measure of one form of underemployment. In 1960 such part-time workers averaged 1.2 million, compared with 1 million in 1959 and 1.6 million in 1958. The rise of part-time
employment in 1960 occurred mainly among factory workers, and was
especially marked during the late months of the year. A second group
of underemployed, those who work part time primarily because of inability
to find full-time work, averaged 1.3 million in 1960, the same as in 1959,
but about 375,000 higher than the average in 1956-57. Most of these
were women and teenagers in the trade and service industries.
87
Characteristics of the Unemployed
The movement into and out of the unemployed group, or the turnover
among persons without jobs, was comparatively large in 1960. Almost half
of those unemployed in any month were no longer seeking work in the following month either because they had found jobs or had left the labor
market. Consistent with this substantial turnover, persons seeking work for
less than 5 weeks accounted for nearly half of total unemployment during
1960. This proportion was higher than in 1958 or 1959, but lower than in
the years before the 1957-58 recession. Long-term unemployment, defined
as persons seeking work for 15 weeks or more, averaged about 1 million in
1960. While this average was about the same as in 1959, it was nearly
500,000 lower than in the recession year of 1958, yet almost twice as high
as in 1956-57. Long-term unemployment was reduced during the first
half of 1960, but afterward increased. In December, the number of longterm unemployed amounted to 1.0 million, compared with 800,000 in
December 1959. Extended periods of unemployment are most commonly
found among the following groups: older persons; blue-collar workers
generally; non-white workers; and workers laid off in industries manufacturing durable goods.
For most of the age-sex groups of the labor force, rates of unemployment
in 1960 did not differ much from those in 1959, considering the year as a
whole. Unemployment was, as usual, highest among teenage workers
who are likely to change jobs more frequently than older persons. The
rate of unemployment among married men living with their families, who
account for about one-third of all unemployed persons, averaged 3.7 percent in 1960, about the same as in 1959; however, this rate was increasing during the second half of the year. For non-white men, the rate
of unemployment averaged 11 percent, and it was as usual more than twice
the rate for white male workers. Non-white workers are concentrated in
unskilled and semiskilled occupations where unemployment rates are generally high. Unemployment in various occupations and industries also
averaged about the same in 1960 as in 1959. Significant increases occurred, however, during the third and fourth quarters of 1960 in durable
goods manufacturing and among the occupation groups important in this
industry, such as metal craftsmen, semiskilled factory operatives, and
factory laborers.
In the past decade there has been little change in the ranking of occupations by rates of unemployment. Highest rates prevail among laborers,
followed by operatives and service workers. White-collar workers, in 1960
as in the past, were least affected by unemployment.
Trends in Major Labor Markets
Less vigorous demand for labor became apparent after the spring of
1960 in most of the Nation's 147 major labor market areas, which account
for about 70 percent of all nonagricultural wage and salary employment
88
in the country. In January I960, labor market surveys conducted by State
employment security agencies for the Department of Labor found demand
and supply of labor in reasonable balance in 118 of the major areas; in
93 of them, unemployment ranged between 3 and 6 percent of the local
labor force, while in 25 areas unemployment was below 3 percent. The
remaining areas had substantial labor surpluses, that is, unemployment
rates of 6 percent or higher, for other than seasonal or temporary reasons.
Through the year, the number of major labor markets having an unemployment rate of less than 6 percent gradually diminished to 99 in November
1960, 11 of which had a rate of less than 3 percent. At the same time,
the number of areas having substantial labor surpluses increased to 48,
compared with 29 a year earlier.
These changes in labor markets in 1960 mainly reflect lower employment
in durable goods industries. Many places with substantial labor surpluses
have, however, had persistent problems of unemployment for many years,
although they are not, primarily, centers of durable goods production. In
November 1960, 19 major labor markets in the United States were classified
as areas having "substantial and persistent labor surpluses," that is, unemployment rates of 6 percent or higher for other than temporary reasons and
jobless rates substantially above the national average for extended periods
of time. All but 4 of these had had substantial labor surpluses in September 1957, before the effects of the 1957-58 recession. In only 6 of the 19
major areas were employment losses in durable goods manufacturing the
cause of persistent problems of local unemployment. In the remaining
areas, which are all located in the northeastern part of the country, longterm declines of the mining, textile and apparel manufacturing, and railroad
equipment maintenance industries have caused chronic unemployment.
At mid-1960, before the downturn of total employment, about 11 percent of
the unemployment in major labor markets was accounted for by areas with
chronic and persistent labor surpluses, although they have only 7 percent of
the labor force. At that time, the average rate of unemployment in these
areas was estimated at 7.9 percent, compared with 4.7 percent for the other
major areas.
Despite higher unemployment during the latter months of 1960, continuing shortages of professional, technical, clerical, and skilled workers
were still noted in most labor market areas. In many places, available
workers were not considered by employers to be qualified for existing job
openings with respect to the required training, experience, and skill. At the
same time the semiskilled, the unskilled, and persons without work experience were reported in surplus supply in nearly all sections of the country.
Trends of Insured Unemployment
Insured unemployment, the number of persons out of work and eligible
to receive unemployment benefits, declined slightly (seasonally adjusted)
in the early months of 1960. Beginning in June, however, their number
89
began to increase, and in the later months of the year it was sharply higher.
In December, the number of persons eligible for benefits averaged 2.8
million, compared with 2 million in December 1959. Most of the increase
over the year resulted from job cutbacks in industries manufacturing durable goods. Payments of unemployment insurance benefits increased rapidly, and in December 1960 amounted to about $350 million, compared
with $251 million in December 1959. These insurance payments, together
with other government transfer payments, and augmented by the private
supplements negotiated in collective bargaining in the steel and other
industries, were a substantial support to labor income in 1960.
HOURS OF WORK AND EARNINGS
With moderately declining use of labor in many important industries, and
more frequent adoption of reduced weekly work schedules, the average
workweek of production workers in manufacturing industries tended downward in 1960 and reached 38.5 hours (seasonally adjusted) in December,
compared with 40.2 hours in December 1959. Reduced workweeks and
less overtime, together with lower employment in the more highly paid
metalworking industries, meant that the general average of hourly earnings
in manufacturing industries increased little in 1960, despite a continued
rise of basic wage rates. Average hourly earnings were $2.32 in December, compared with $2.27 in December 1959. Average weekly earnings,
reflecting the reduced workweek, receded slightly in the course of the year,
and were $90.02 in December, compared with $92.16 in December 1959.
When adjusted for the rise of consumer prices, weekly earnings in manufacturing showed a slightly larger decline; however, the annual average for
real weekly earnings was practically unchanged from 1959. In nonmanufacturing industries, weekly earnings rose in 1960 by an average of about
3 percent. Salaries of civilian employees of the Federal Government were
increased by legislative action. For employees of the postal service the
increases averaged 8.4 percent; for other employees the average increase
was 7.5 percent. By this action, total wage and salary payments were
increased by about $750 million annually.
Lower employment and earnings in several industries stemmed the increase of labor income in the latter months of 1960. After rising by $10
billion from December through June, labor income was steady at an annual
rate of $286.2 billion through the third quarter of the year. During the
fourth quarter, it declined to $282.1 billion in December.
DEVELOPMENTS IN COLLECTIVE BARGAINING
Basic wage rates advanced in 1960 by somewhat more than 3 percent,
about the same average rate of increase as in 1959. Wage increases, including cost of living adjustments and deferred increases negotiated in
earlier years, were put into effect for about 7 million employees, nearly 90
percent of those covered by major labor agreements (Table B-6).
90
TABLE B—6.—Employees receiving wage increases under major labor agreements, by size of
increase, 1956-60 1
Item
1956
1957
1958
1959
19602
Employees receiving wage increases:
7.5
Number (millions)
7.6
7.2
7.0
7.0
100
100
5
38
46
5
5
1
Percent
Percentage distribution:
100
1
Total
Under 5 cents
5 and under 9 cents
9 and under 13 cents
13 and under 17 cents
17 cents and over
Not specified or computed
_
_ .
_. _
19
62
g
7
3
100
2
21
30
38
5
2
100
4
23
32
22
18
2
326
26
39
6
3
1
1 Includes cost-of-living, deferred, and newly negotiated wage increases received under collective bargaining situations affecting 1,000 or more employees and coming to the attention of the Department of Labor.
Excludes
construction, services, finance, and government.
2
Preliminary.
3
In 1959,12 percent of employees receiving wage increases received less than 3 cents, and 14 percent received
3 cents to 5 cents.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Labor.
Major collective bargaining settlements were concluded in 1960 in the
steel industry, railroads, electrical equipment manufacturing, aircraft, rubber, textiles, chemicals, and other manufacturing and nonmanufacturing
industries. These agreements affected about 4.3 million workers, all but 3
percent of whom received or were scheduled to receive wage-rate increases
within 12 months of the effective date of the contract. These negotiated
wage adjustments most frequently averaged either 5 to 6 cents or 9 to 10
cents per hour. New or liberalized supplementary benefits were negotiated
for 80 percent of employees covered by agreements concluded in 1960.
Health and welfare plans, pensions, and vacations continued to be the
most frequent kinds of supplementary benefits established or improved in
bargaining negotiations.
In addition to wage and benefit improvements negotiated in 1960, about
2.7 million workers covered by major agreements received deferred wage
increases, cost of living adjustments, or in the majority of cases both, as a
result of contracts signed before 1960. Typical of these dual adjustments
were those in the automobile and farm equipment industries, where deferred increases averaged 6 to 7 cents, supplemented by 4 cents more in
automatic cost of living adjustments. Other industries in which deferred
increases were put into effect included trucking and meatpacking (where
workers also received cost of living increases), the cement industry, and
various metalworking and chemical firms. Before renegotiation of agreements in the course of the year, cost of living adjustments were made in the
railroad, aircraft, and electrical equipment industries. Cost of living
escalator clauses were eliminated from important wage agreements in railroads and in electrical manufacturing, and were narrowly limited in their
91
operation in the steel and related industries. During the year, the number
of workers covered by labor agreements containing such clauses was reduced
from 4 million to less than 2.8 million.
In the construction trades, about 85 percent of union wage scales were
increased in 1960, a slightly smaller proportion than during the preceding
three years. The average increase for all scales was about 14 cents per
hour, compared with 16 cents in 1959 and 15 cents in 1958 and in 1957.
Labor disputes were infrequent and generally of short duration in 1960.
Both the number of employees involved in work stoppages and the number
of man-days of idleness were very low, judged by the record of the years
since World War II. There was evidence of increasing recognition of
the need for constructive study and resolution of the serious economic issues
being raised in negotiations by rapid technological change and by competitive pressures. In the railroad industry, the long-standing and complex
dispute over changes in working rules was referred, by agreement of the
parties, to a Presidential commission for study, recommendations, and
mediatory assistance in the resolution of the issues. The commission's
study and recommendations, which will not be binding upon the parties,
are to be completed by December 1, 1961. Study groups and committees
were also established in the steel and construction industries and by national
labor and business groups.
II. Agriculture
Agriculture in the United States consists of two parts that are becoming
more and more distinct: (1) commercial farm enterprises and (2) noncommercial holdings, many of which are little more than farm living units.
Each is composed of numerous types. Commercial farms vary in area under
operation from small vegetable farms to very large western cattle ranches;
noncommercial units comprise backyard cow-and-garden farms., farms of
retired and semiretired people, part-time farms, and others.
The distinctions between the two broad parts are real and meaningful
for any attempt at weighing the economic and social problems of agriculture.
Commercial and noncommercial agriculture differ in economic status, in the
nature of their problems, and in the trends they exhibit. Commercial larms
outnumber the noncommercial holdings in a ratio of almost two to one;
the two groups together total roughly 3.7 million units, most of them family
operated.
Commercial agriculture produces more than nine-tenths of all farm
output, earns the major part of all net farm income, and holds most of
agriculture's proprietary assets. Aggregate statistical measures, which seldom distinguish between commercial and noncommercial agriculture, must
therefore be interpreted as pertaining chiefly to the commercial portion.
Because of the differences in the economic performance of the two types
of farms and their changing relative numbers, a conversion of aggregate
totals into averages per farm tends to be misleading.
Since commercial agriculture contributes so much of all market supplies
of farm products and absorbs even more of the capital resources used, its
problems are essentially those of commodity markets. National concern
with adjustment problems of underdeveloped and underemployed human
resources in agriculture is associated with low income farms—those in
noncommercial agriculture and the smallest-sized fringe of commercial
agriculture.
PRODUCTION AND INCOME IN 1960
The commercial part of agriculture accounted for the rapid expansion
in farm output during the last few years and for the record high production
in 1960—a record attained despite the reduction of the planted acreage,
brought about chiefly by the Conservation Reserve Program, to the smallest
area since 1916. While the index of livestock production dropped 1 point,
to 129 (1947-49=100), the index of crop production rose to a new high
93
of 122 and caused a rise of 3 points, to 129, in the all-products index
(Table B-7).
TABLE B-7.—Farm production, prices, assets, and liabilities: Selected data, 1953, 1956, and
1958-60
Item
1953
1956
1958
1959
19601
Millions of acres
Planted acreage, 5 9 crops . _
_.
360
345
330
335
329
Index, 1947-49=100
Output
Crops
Livestock
__
_ .
Inputs
Labor..
Real estate
Allother
_ _
109
114
124
126
129
103
114
106
122
118
124
117
130
122
129
103
102
101
103
103
83
105
124
72
105
133
66
106
137
66
107
143
63
106
145
Index, 1910-14=100
Prices received by farmers.
255
230
250
240
Prices paid by farmers (all items, interest, taxes, and wage
rates)
_
_
277
278
293
297
299
269
256
117
365
513
274
250
150
421
536
287
264
176
470
574
288
266
194
496
612
290
264
213
536
631
Family living items
Production items
Interest _
Taxes (real estate)
Wage rates
._ ...
. __ .
238
Billions of dollars
Income of farm population from all sources
2
Gross farm income
Production expenses
Realized net farm income
__
.
Balance sheet of agriculture: 3
Assets
Real estate
Other-.
Liabilities
Proprietors' equities. __
.
_.
_ _
._ _
21.1
20.1
22.2
20.4
20.7
35.3
34.6
38.2
37.5
37.9
21.4
13.9
22.6
12.0
25.2
13.0
26.2
11.3
26.3
11.6
159.7
176.3
202.3
203.6
199.3
94.7
65.0
109.5
66.8
125.1
77.2
129.1
74.5
125.0
74.3
17.1
142.6
19.5
156.8
23.3
179.0
24.3
179.3
25.7
173.6
1
Preliminary.
2
Includes farm wages received by farm resident workers, net change in farm inventories, and all income
received from nonfarm sources.
3 As of December 31.
Source: Department of Agriculture.
During the course of the year there was relative improvement in agricultural prices and incomes. Both had declined late in 1959 to their lowest
points in several years; by December 1959, the index of prices received by
farmers for all commodities had fallen to 230 (1910-14=100), from 244
in the first quarter of that year. The same factors responsible for that
decline^ principally a cyclical change in output of poultry products and hogs,
were also responsible for the rise. As production of both decreased in
94
early 1960 their prices improved, lending strength to the average of allproduct prices; by April the price index had risen to 242. Small declines
after April were followed by a new recovery, and the index in December
was again 242.
Price advances underpinned a rise in gross income in agriculture to
an appreciably higher level in the second quarter of 1960 than in the
second half of 1959 and first quarter of 1960. The increased income of
the second quarter was sustained later by the harvest of large crops of pricesupported grains. The movement of wheat into Commodity Credit Corporation loans in the fall of 1960 was greater than a year earlier, and the
loan advances were an addition to gross income. For the entire year,
gross farm income exceeded the $37.5 billion of 1959 by $0.4 billion,
according to preliminary data.
Production expenses in 1960 were about the same as in 1959. Their
near-stability ended a steady and marked 4-year rise, and was due largely
to lower prices for feed and feeder livestock. Prices of most commodities
bought from nonfarm sources were as high as in 1959, or slightly higher, and
interest, taxes, and wage rates increased substantially.
As gross income was up and expenses of production were almost unchanged, realized net income of farm operators from farming increased a
little—from $11.3 billion in 1959 to $11.6 billion (preliminary) in 1960.
Income received from nonfarm sources, which has increased to about a
third of the total income of the farm population, was up slightly in 1960,
to a new record of $6.9 billion. Total net income received by the farm
population from all sources, which also includes the $1.8 billion of farm
wages received by workers who live on farms and the net change in value
of farm inventories, rose to $20.7 billion, from $20.4 billion in 1959.
The previous uptrend in values of farm land came to a halt during 1960.
As a consequence, total assets in agriculture were reduced by 2 percent during
the year, to $199 billion on December 31, 1960. Several of the factors that
had sustained the previous uptrend in land values had run their course, as
values reached or exceeded a historical ratio to current income. Moreover,
rising taxes on the increased capital value, and higher interest charges on
new mortgages, contributed to the downturn in values. Farm debts continued to rise slowly during 1960; yet at $25.7 billion on December 31, they
were only 13 percent of assets.
Current indebtedness in agriculture appears especially small in relation
to the very sizable rise in the value of assets that has taken place during the
last 20-25 years. Since 1940, for instance, assets in agriculture have increased three times, or by $146 billion. While these values include farm
assets held by nonfarm landlords, the larger part of the rise has accrued to
operators of commercial farms. Capital gains have been one of the major
elements of financial strength of commercial agriculture during the last
quarter century.
95
NET INCOME OF SELECTED COMMERCIAL FARM TYPES
Although reported data on total farm income unfortunately do not distinguish between commercial and noncommercial agriculture, statistical
series have been developed by the Department of Agriculture to describe
trends in organization and income on typical commercial family-operated
farms of 32 selected types. Preliminary data presented in Table B-8 for
TABLE B-8. —Net farm income of selected types of commercial family-operated farmsy
1956, and 1958-60
1953,
[Dollars per farm]
Type of farm
Wheat farms, Southern Plains
Cattle ranches, Inter mountain Region.. _
_ _ _
Hog-dairy farms, Corn Belt - .
Wheat-small grain-livestock farms, Northern Plains
Dairy farms, Central Northeast
- Tobacco-cotton farms, Coastal Plains, North Carolina
Peanut-cotton farms, Southern Coastal Plains
Cotton farms,' Black Prairie, Texas
1953
1956
5,423
5,324
6,067
3,758
3,175
3,240
2,660
3,530
3,768
5,728
5,176
6,970
3,824
3,674
2,743
899
1958
1959
13, 283
13, 124
7,453
6,445
4,337
3,394
3,467
3,035
9,033
12, 327
6,003
2,876
4,364
2,718
2,437
2,483
1960 1
11, 439
9,044
5,338
4,684
4,208
3,290
2,837
2,110
i Preliminary.
NOTE.—Figures in this table were computed by applying reported prices to data on the organization of
typical farms.
Source: Department of Agriculture.
eight of these types illustrate the wide variation between different types of
farming—both in size of income and in fluctuations in income from year
to year. In I960,, for instance, net farm income for half of the eight types
was higher than in 1959; for the other half, it was lower. Bumper crops
of wheat in 1960 which sold at or near support prices boosted the income
of wheat farms. A moderate cyclical decline in the price of cattle reduced
the income of cattle ranches from the very favorable level of the preceding
two years. Recovery in prices of hogs during 1960 did not fully restore
the previous year's income to hog-dairy farms of the Corn Belt. Dairy farms
of the Northeast apparently experienced a small decline in income. The
stability of dairy incomes in the Northeast, in comparison with the sharp
variability for some other types of farm income, is brought out by the data in
Table B-8.
It should be noted that net farm income as reported in Table B-8 includes
returns on both capital and family labor. Large differences between farm
types in the amount of capital invested, as well as in the amount of family
labor utilized, account for a part of the differences in the amount of net
income.
INCREASING IMPORTANCE OF COMMERCIAL FARMS
The proportion of all farms that are operating on a commercial scale,
and the share of such farms in the national output of farm products, are
increasing. Also, commercial farms are employing an increasing percentage of all persons engaged in agriculture. Hence commercial farming
represents a growing part of United States agriculture as a whole. In
1959, the Census of Agriculture reported that about 2:1 million commercial
farms had sales of $2.,500 or more. This number was almost the same as in
1950 and 1954, and was 56 percent of all farms reported in 1959. Comparisons of this relative proportion with earlier censuses are complicated by a new definition of a farm introduced in the 1959 Census. In
that year, approximately 232,000 units then in existence which would have
been counted as farms according to the 1954 definition were excluded by
the more restrictive new definition. If, for purposes of comparison, the 1954
definition is applied to the 1959 Census, commercial farms with sales of
$2,500 or more would have constituted 52.5 percent of all farms in 1959, a
gain of 14 percent from 1950 (Table B-9).
TABLE B-9.—Number of farms, by economic class, 1950, 1954, and 1959
Percent of total farms
Number of farms
Economic class
1954 definition
1950
1954
19591
1959
(new
definition) i
1954 definition
1950
19591
Percent
Thousands
Total farms
5,382
4,782
3,936
2,087
2,101
882
721
484
811
707
583
Sales less than $2,500 .._
3,295
2,681
Commercial _
1,619
1,226
()
Noncommercial
1,676
1,455
4
(4)
(*)
(4)
(*)
(«)
(4)
Sales $2,500 and over (commercial)
_
Sales $2,500 to $4,999
Sales $5,000 to $9,999
Sales $10,000 and over
Part-time
Part-retirement
Miscellaneous
1959
(new
definition) i
Percentage
change
in number of
farms,
1950 to
1959 i 2
3
-26.9
3, 704
100.0
100.0
100.0
2,065
2,065
38.8
52.5
55.8
-1.1
617
654
794
617
654
794
16.4
13.4
9.0
15.7
16.6
20.2
16.7
17.7
21.4
-30.0
-9.3
64.0
61.2
47.5
44.2
-43.2
1,871 » 1, 639
3
348
30.1
4
()
9.4
(4)
()
31.291
31.1
4
()
34.8
(«)
(4)
(•)
(4)
883
405
3
(44)
( 4)
()
(44)
(4)
()
23.8
10.9
.1
(4)
4
8
i Preliminary.
* Based on 1954 definition.
* Not comparable with data for 1950 and 1954.
* Not available.
NOTE.—The number of farms in this table is as reported in the Census of Agriculture. The total is smaller
than that estimated annually by the Department of Agriculture (Table C-70) because of adjustments for
underenumeration.
Sources: Department of Commerce and Department of Agriculture.
Moreover, within the 2.1 million commercial farms having sales of $2,500
or more, those with sales of $10,000 or more have increased as those with
sales of less than $10,000 have decreased. In 1959, 800,000 farms were in
the larger category—64 percent more than in 1950. Those with sales of
$2,500-$5,000 decreased by 30 percent, and those in the $5,000-$ 10,000
class decreased by 9 percent.
Above-average growing conditions during 1959 contributed somewhat
to the increased number of farms achieving a higher sales volume.
97
Although expenses of production have been rising gradually, so that gross
sales are not an exact measure of relative net income, it nevertheless seems
likely that more and more commercial farms have succeeded in increasing
their business to a volume that improves the chances of returning a satisfactory net income to the farm family. The 10-year increase of almost twothirds in the number of farms having sales of $10,000 or more is evidence
that this is true.
All these data apply to commercial farms selling farm products valued
at $2,500 or more during the Census year. They omit those farms selling
less than $2,500 of products that are technically classed as commercial owing
to lack of any other sizable income. This classification of farms was chosen
both because farms selling less than $2,500 of products are clearly inadequate as sources of farm income, and in order to facilitate statistical comparisons between Censuses.
DECREASE IN NUMBER OF SMALL FARMS
According to the Census of 1959, there were 1,639,000 farms in the
United States which sold less than $2,500 worth of farm products. This
number included 348,000 so-called "midget" commercial farms—those for
which the small volume of sales of farm products nevertheless was the
primary source of family income. It also included 883,000 part-time and
405,000 part-retirement farms. The total of 1,639,000 was 44 percent of
all farms, as enumerated according to the new definition.
All the farms omitted in the 1959 Census because of a more restrictive
definition were small farms—those with less than $2,500 of sales. When
these omissions are added, in order to make comparisons with data of earlier
Censuses, the number of small farms becomes 1.9 million, a substantial
reduction from the 2.7 million of 1954 and 3.3 million of 1950 (Table B-9).
These reductions in numbers of small farms doubtless reflect some
amelioration of the problem of low-income farms. Progress has been made
in either enlarging the production resources on small farms, or in supplementing the farm income from sources off the farm. Yet also evident
in recent trends is a gradual disappearance of units that have qualified as
farms only by virtue of sideline "backyard" farming, a time-consuming
occupation yielding minimum returns to labor.
On the other hand, the Conservation Reserve has probably shifted a number of farms of sizable acreage into the small-farms category, because of the
small value of products now sold from their idled acreage.
DECLINE IN TOTAL NUMBER OF FARMS
The total number of all farms reported in the 1959 Census, according
to preliminary data, was 3.7 million. By use of the same definition as in
1954, the number in 1959 would have been reported as 3.9 million, compared with 4.8 million in 1954 and 5.4 million in 1950 (Table B-9).
98
This 10-year decrease amounts to no less than 27 percent, and occurred, as
noted above, exclusively in small farms—those selling less than $2,500 worth
of farm products per year. While a later revision of these Census data may
increase the reported number of farms slightly, owing particularly to the
inclusion of idled Conservation Reserve farms, it is unlikely that the basic
changes as shown will be affected significantly.
INCREASE IN ACREAGE AND ASSETS OF FARMS
Year by year, commercial agriculture has become an increasingly technical enterprise demanding a high degree of managerial skill and requiring
a larger acreage and investment base. Not only does the inventory of
farm equipment and machinery on a typical farm now make it possible for
each farmer to till more acres, but the accompanying heavy capital investment makes a larger acreage mandatory if efficiency in operation is to be
achieved. The modern commercial farm uses capital in the same manner—
and in larger amount per person employed—as do nonfarm manufacturing
enterprises.
Between 1950 and 1959, the number of farms in every size class below 500
acres decreased (Table B-10). The percentage reductions were greatest
for the smaller farms; the number having 50-99 acres was reduced by 37
percent, and the 100-139 acre group by 32 percent. Farms above 500 acres
in size increased in number—to 336,000 in 1959 from 303,000 in 1950.
The quantity of assets other than land used in agriculture has risen
substantially—generally faster than have land assets. From 1940 to 1960,
TABLE B-10.—Number of farms, by acreage groups, 1950, 1954, and 1959
Percentage change 2
Number of farms
1954 definition
Size in acres
1954
1950
1959 i
1959 (new
definition) i
1950 to
19591
1954 to
19591
Thousands
Total farms
0-10
10-49 .
50-99
___
100-139
140-179
180-219
220-259
260-499
500-999
1,000 and over
_
.
..
5,382
4,782
3,936
3,704
-27
485
1,478
1,048
579
523
275
212
478
182
121
484
1,213
864
491
462
257
206
482
192
130
(33)
()
658
394
378
226
189
471
200
136
241
811
658
394
378
226
189
471
200
136
(33)
()
-37
-32
-28
-18
-11
-1
11
12
1
2
3
-18
<»)
(3)
-24
-20
-18
-12
-8
-2
4
5
Preliminary.
Based on 1954 definition.
Not available.
NOTE.—The number of farms in this table is as reported in the Census of Agriculture. The total is
smaller than that estimated annually by the Department of Agriculture (Table C-70) because of adjustments for undeienumeration.
Detail will not necessarily add to totals because of rounding. Virtually all the farms excluded from
the 1959 Census (new definition) because of more restrictive definition were smaller than 50 acres in size.
Source: Department of Commerce.
99
when improvements on land raised the physical real estate assets in agriculture by 22 percent, the amount of machinery employed increased by 151
percent. Although livestock inventories increased by only 19 percent, all
other assets combined—primarily crop inventories and demand deposits
in banks—increased by 46 percent. Total production assets in agriculture
increased by 30 percent during the 20-year period. These are estimated
quantities, valued at constant (1947-49) prices (Table B-l 1).
TABLE B-l 1.—Production assets used in agriculture, 1940, 1950, and 1960
Percentage change
Kind of asset
1950
1940
1960
1940 to
1960
1950 to
1960
Billions of dollars,
1947-49 prices
Total production assets
_
Farm real estate Livestock
Machinery and motor vehicles
Other i
83.3
95.9
108.6
30
13
58.2
12.9
4.1
8.1
63.4
13.1
8.6
10.8
71.1
15.4
10.3
11.8
22
19
151
46
12
18
20
9
82
100
41
53
Dollars, 1947-49 prices
2
Per farm
Per farm worker
13, 118
7,347
16,979
9,625
23,921
14, 707
1
Includes crop inventories held for livestock feed and the portion of demand deposits owned by farmers
estimated
as being held to meet farm production costs.
2
Based on number of farms as reported by the Department of Agriculture, according to 1954 Census
definition. (See footnote 1, Table C-70.)
Source: Department of Agriculture.
As the number of farms has decreased, real production assets per farm
have increased considerably. Valued in constant dollars, assets per farm
advanced 82 percent between 1940 and 1960. Assets per farm worker
increased even more: their average doubled during the 20 years, to $14,700
in I960, valued in 1947-49 dollars. Valued in 1960 dollars, farm assets per
farm worker in 1960 averaged $21,300, considerably more than the average
investment of $15,900 per employee in manufacturing in the same year.
Data on average assets per farm pertain to all farms, commercial and noncommercial, as reported by the Department of Agriculture according to the
pre-1960 Census definition (see Table C-70); they doubtless overstate the
rate of increase, but underreport the present average size, of assets held on
commercial farms alone.
FARMER COOPERATIVES IN COMMERCIAL AGRICULTURE
Today's agriculture in all its complexity, particularly its commercial
part, rests on three kinds of supporting services. One is technical and
educational; it begins with public elementary and secondary education,
including vocational training, and ends with the broad programs of
100
research and education carried out by the Land Grant Colleges, Agricultural Experiment Stations, and the Federal-State Extension Service. The
second is the assistance provided by Government in fields ranging from
aid in soil conservation to regulation of markets for farm products, and to
certain assistance in maintaining prices and incomes of farmers.
The third supporting service, one also essential to agriculture of the
1950's and 1960's, is self-provided by agriculture—the joining of individual
producers in many types of cooperative associations. Farmer cooperatives,
designed in manifold ways for a multitude of purposes, are in many respects
a bridge between the technological and management demands of modern
commercial agriculture and its decentralized, small-unit, family-farm organizational structure. As a form of business enterprise, the cooperative associations perform for agriculture what is done by corporate organization
in industry and commerce.
Farmers make wide use of cooperatives in obtaining essential services
ranging from marketing of farm products to purchasing of farm supplies,
and including organized mortgage and production credit, electric power,
telephone service, medical service, insurance, irrigation, and dairy herd
improvement. In 1957-58 farmers held over 3.8 million memberships in
6,102 marketing cooperatives, and 3.5 million in 3,381 farm supply associations. The 13 banks for cooperatives, in which farmers are developing substantial ownership equities, served cooperatives with farmer memberships
totaling more than 3.6 million. Memberships and participants in rural
electric cooperatives number over 4.4 million (Table B-12).
TABLE B—12.—Farmers' cooperative associations and their membership, by type
Type
Marketing, supply, and service
Marketing
Purchasing
. ___
Miscellaneous service
Number of
associations
,
_
_ ._
Federal land bank associations
.
Production credit associations
Banks for cooperatives
_ _
.
Rural credit unions
Rural electric cooperatives
Rural Electrification Administration telephone cooperatives _.
Rural health cooperatives._ _
Farmers' mutual fire insurance companies
Mutual irrigation companies
Dairy herd improvement associations _ _ _ _ __
Dairy cattle artificial breeding associations
_ _ __
_ __
Number of
members or
participants 2
(thousands)
9,716
7,485
6 102
3,381
3,878
3,543
831
494
13
550
908
210
19
374
508
233
.._ _
l
1,625
9,374
1,509
47
64
3,650
150
4,420
405
66
3,000
138
41
636
i Data apply to dates ranging from 1957 to 1960, except that mutual irrigation company data are for 1950.
Estimated.
Source: Department of Agriculture.
3
Provisions of Federal law have long granted farmer cooperatives certain
exemptions from the Federal corporate income tax. Under legislation enacted in 1951, the exemptions were narrowed and tightened. To qualify, a
576899 O—61-
101
cooperative must be farmer owned and controlled, must do virtually all of
its business with farmers and a major part with members, and must meet
several other criteria. About 60 percent of all cooperatives currently elect
to take advantage of the right to exemption.
In 1957-58, the 9,700 marketing, farm supply, and service cooperatives
did an aggregate business volume of $10.7 billion, exclusive of intercooperative sales (Table B-13). The average volume of a little over $1 million
TABLE B-13.—Net business volume of farmer cooperative associations engaged in marketing,
farm supply, and related services, 7957-58
Farmer cooperative
associations 1
Item
Number
Total business
_. _
__
Net business
(millions of
dollars)
9,716
10, 693
6,855
8,261
1,771
2,692
(2)
759
613
(2)
2,913
1,678
1,644
787
413
826
Supplies purchased for patrons
7,339
2,185
Feed
Fertilizer
Seed
Petroleum products
Building materials.. .
All other
4,523
4,222
3,820
2,784
1,498
(2)
808
283
96
552
76
370
5, 465
247
Products marketed for patrons
Dairy products
Grain, soybeans, soybean meal and oil
livestock and poultry
Fruits and vegetables
__
Cotton and cotton products
All other products
. .
_
_ _
.
._ __
_ _
__
Receipts for services
1
2
Preliminary data as developed by Farmer Cooperative Service.
Not available.
NOTE.—Detail does not add to totals because individual cooperatives may perform multiple services.
Source: Department of Agriculture.
per cooperative, however, masks the diversity in size and scope of individual
associations; whereas some are small and localized, others are large nationwide federations. It is estimated that for each of more than 80 percent of
all cooperatives the. annual business volume is less than $1 million. Yet for
each of about 100 cooperatives the annual business exceeds $20 million.
A number of the larger cooperatives have resulted from mergers and
consolidations. Many regional or national federations of cooperatives also
have been established.
Recently, farmers have turned to cooperative action as a means of forestalling loss of management control of their farming through vertical integration. Vertical integration has increased in some sectors of agriculture, such
a? the production of commercial broilers.
102
Farmers have also found cooperatives helpful in connection with the
adoption of marketing agreements under agricultural price support legislation and the operations authorized by them.
As of January 1, I960, farmers had slightly over $4 billion invested in
marketing, farm supply, telephone, irrigation, insurance, and rural electric
cooperatives, cooperative production credit associations, and the Federal
land bank system.
ADJUSTMENT OF FARM PRODUCTION THROUGH THE CONSERVATION
RESERVE PROGRAM
Programs of the Federal Government to support prices of farm products
are of significance chiefly to commercial farmers. Small farmers benefit from
them only in proportion to the volume of produce they have to sell, which
invariably is small.
Price-support programs have been accompanied by an accumulation of
huge stocks of wheat and corn and smaller quantities of cotton, small feed
grains, tobacco, and other commodities by the Federal Government, despite
aggressive efforts to make food available in distribution programs at home
and in both distribution and sales programs abroad. In an effort to relieve
the condition resulting from surpluses and the accumulation of stocks, Soil
Bank programs were introduced beginning in 1956. About 12.2 million
acres of cropland were placed in the Acreage Reserve of that year. Participation increased to 21 million in 1957, then declined to 17 million in 1958,
the final year of the program (Table B-14).
The Acreage Reserve applied only tp crops subject to acreage allotments,
and only those farmers who complied with allotments were eligible to participate. The Conservation Reserve was originally a supplement to the
Acreage Reserve, and later supplanted it. The Conservation Reserve is
not confined to allotment crops; all cropland is eligible. In recent years
emphasis has been placed on obtaining participation by entire farms. The
leased land must be protected by adequate conservation practices, for which
cost-sharing payments are made available under specified conditions.
Participation increased to 28.7 million acres on 306,000 farms in 1960.
The average rental per acre was $11.85. Obligations for payments for
both rental and cost-sharing practices were $368 million in 1960.
Since the Congress did not authorize any further increase, the Conservation Reserve in 1961 will be confined to land already under contract. Because only about 100,000 acres of contracts are due to expire, 28.6 million
acres will remain under Reserve. In the absence of new authority, the
Reserve acreage would decline slowly until 1963, and more rapidly thereafter
(Table B-15).
103
In 1960 a total of 17 million acres of land that would otherwise have
grown wheat, corn, and small feed grains were removed from production
by the Conservation Reserve contracts. This amounted to only 9 percent
of the combined acreage of the three crops. Since the quality of land
TABLE B—14.—Acreage Reserve and Conservation Reserve Programs, 1956-60
Conservation Reserve Program
Acreage Reserve
Program
Item
1956
1958
1957
1956
1957
1958
1959
196T.
Thou sands
548
Number of contracts
1,049
914
—
80
126
246
306
Millions of acres
Cropland acreage in the reserve
Whole farms
Part fanrs
12.2
_
17.2
21.4
12.2
21.4
17.2
5.7
5.3
12.8
5.2
5.3
6.7
(')
1.1
(')
.2
3.0
.1
.2
4.9
.1
1.4
6.4
9.9
22.4
28.7
M
0)
5.3
1.1
7.5
2.4
14.8
7.6
20.4
0)1
C)
0)
0)
0)
0)1
C)
.5
.9
3.5
(')
.8
1.5
5.0
(')
.2
(3)
2.8
2.3
3.5
7.9
(3)
.5
(^
8.7
3.2
4.6
9.4
(3)
118
360
368
339
29
8.3
Cropland acreage idled: 2
Wheat
Corn
Small feed grains
Rice
Cotton.
Tobacco
All other crops 4
(')'
1.7
7
c>'
11.4
Millions of dollars
Obligated payments
Rental
Cost-sharing
practices s
._ ..
in
conservation
260
614
696
260
614
696
23
100
12
57
87
259
11
43
31
101
1
Not available.
* Acreage of crop allotments idled under Acreage Reserve: estimated acreage under Conservation Reserve.
Total acreage for Conservation Reserve exceeds Reserve acreage due to double-cropping and other multiple
uses.
3
Less than 50,000 acres.
4
Includes acreage that had intermittently been idle, fallow, or a failure.
8
Payments obligated for any year will be distributed during several years.
Source: Department of Agriculture.
TABLE B—15.—Conservation Reserve Program acreage under contracts Jor future years, 1961-4)9
Acreage
(millions
of acres)
Year
1961
1962
1963
1964
1965
1966
1967
1968
'969
-
..
-
.
14.0
13.4
11.5
10.1
36
-
NOTE. —Data are for contracts in force December 31,1960.
Source: Department of Agriculture.
28.6
26.4
25.2
17.6
104
under Conservation Reserve lease was somewhat below average, the actual
adjustment achieved in output was less than 9 percent.
CHANGES IN LOW-INCOME FARMS
On the 1.6 million small farms reported in the 1959 Census (Table B-9),
the income earned from farming alone is low by any standard. Persons
living on those farms can be divided into three groups: (1) those of working age who receive an income from nonfarm sources that is satisfactory,
either of itself or when combined with the net income earned on the farm;
(2) those past working age whose income status depends in large measure
on retirement income available to them, derived from social security,
private retirement plans, or private investments; and (3) those of working
age who depend principally for their income on the operation of units with
very small economic resources.
This third group faces more serious economic problems than do the
other two, and from the standpoint of the national economy it represents
a pool of human resources that is partially wasted. This group is a principal focus of the Rural Development Program. Since 1955 that program
has coordinated and directed the efforts of various departments and agencies
of the Federal Government, in cooperation with State and local organizations, toward rural betterment. In addition to five departments of the
Federal Government, the Small Business Administration has been particularly active in assisting development of low-income areas.
The primary objective of the Rural Development Program is to build up
local economic resources of low-income areas and to provide job opportunities for rural people. In some low-income areas where local resources
are inadequate or have not been developed sufficiently to alleviate serious
underemployment or unemployment, regional decreases in population are
taking place. The 1960 Census of Population shows that within the national pattern of geographic shifts in distribution of the population, resulting
primarily from internal migration, a number of localities previously designated as low income have increased their population in the last decade,
some at more than the national average rate, others at less than the national
rate. Usually these increases reflected new opportunities that developed
for local employment. In other low-income localities the resident population remained constant or declined.
The Atlantic Coast and Piedmont regions were the main ones with aboveaverage population gains. There, vigorous industrial development or expanded military installations contributed to growing local employment.
Regions in which the population decreased were primarily those of the
upper Appalachian and the South Central areas extending from eastern
Oklahoma and Texas to Mississippi.
The decade of the 1950's lowered, in general, the population density in
the rural low-income areas relative to the rest of the country. As indicated
by Table B-16, the total population of the Nation increased by 18.4 per-
105
TABLE B—16.— Total population and population in low-income farming areas, 1950 and 1960
Percentage change
1950 to 1960 2
Population 1
Area classification
Total
Nonmetropol itan
Total
1950
1960
1950
1960
Nonmetropolitan
Millions of persons
Total population. _ _
Low-income farming areas 3
150.7
178.5
66.2
72.6
18.4
9.7
34.8
36.6
29.8
30.7
5.2
3.2
12.3
8.4
14.2
13.1
9.2
14.4
10.7
7.1
11.9
11.3
7.6
11.8
6.1
10.2
1.3
5.6
7.3
-1.3
12.1
12.1
9.7
9.5
-.5
-1.9
9.6
3.4
2.3
2.2
1.9
1.8
.3
1.0
11.1
3.4
2.4
2.1
1.9
2.0
.5
1.2
8.1
3.2
2.2
2.2
1.7
1.4
.3
1.0
9.0
3.1
2.2
2.1
1.6
1.6
.5
1.2
15.2
-.6
3.7
-6.3
-2.1
9.9
58.1
16.7
By income:
Moderately low-income
Substantially low -income
Seriously low-income
-.
By location:
Appalachian Mountain and border
areas
Southern Piedmont and Coastal
Plains
Southeastern Hilly areas
Mississippi Delta
Sandv Coastal Plains *
Ozark-Ouachita Mountains and border.
Northern Lake States
Northwestern New Mexico
Cascade and Rocky Mountain areas. _
11.8
-3.0
1.8
-6.3
-5.0
8.4
58.1
16.7
1 As of April 1.
Based on actual number of persons.
For description of areas, see Development of Agriculture's Human Resources—A Report on Problems
of 4Low-Income Farmers, House Document No. 149, 84th Congress, 1st Session.
Plains of Arkansas, Louisiana, Oklahoma, and Texas.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Department of Commerce and Department of Agriculture.
2
3
cent from 1950 to I960, while the increase in the low-income farming areas
was only 5.2 percent. In the areas with serious social and economic problems, the increase was a mere 1.3 percent. The nonmetropolitan population of the Nation as a whole increased by 9.7 percent, but in all lowincome farm areas it increased only 3.2 percent. In the serious problem
areas, the nonmetropolitan population actually decreased by 1.3 percent.
Data in Table B-16 are broad totals developed for areas as described in
a special report prepared for the 84th Congress, published in 1955.
Of the low-income areas for which data are presented in Table B-16,
only one, that surrounding the fast-growing city of Albuquerque, had a
total population growth during the 1950's that exceeded the national average
rate.
While notable improvement made it possible for a number of areas to
retain their local population during the 1950-60 period of high level performance of the economy, there is still a problem of underemployment in
many areas, i.e., an excessive potential supply of labor and a need for more
opportunities for employment, particularly off the farm.
106
HI. United States Foreign Trade and Payments
In I960, the United States merchandise trade position improved substantially. This improvement, however, was largely offset by increased
outflows of short-term capital, mainly in response to more attractive interest
rates abroad. The over-all balance of payments thus showed a sizable
deficit for the third consecutive year. As the capital outflow accelerated
during the year, the over-all deficit in the balance of payments increased
from a seasonally adjusted annual rate of $2.6 billion in the last quarter
of 1959 to a rate of $4.1 billion in the third quarter of 1960 (Table B-17).
In the closing months of the year, the deficit—omitting one large transfer of private capital for direct investment abroad—appears, on the basis
of incomplete data, to have diminished somewhat. The surplus on goods
and services rose further. The outflows of liquid capital, which were
TABLE B-17.—United States balance of payments, 1959-60
[Billions of dollars, seasonally adjusted annual rates]
1960
19o9
Payment or receipt
United States payments
First Second Third Fourth First Second Third
quarter quarter quarter quarter quarter quarter quarter1
2
Merchandise imports
Services and military expenditures
Remittances and pensions ._ _ _ ..
Government grants and related capital
outflows
United States private and other Government capital out flows
United States receipts 2 ~Merchandise exports
Services and military transactions
Repayments on U.S. Government loans. .
Foreign long-term investments in United
State*'
28.1
30.1
30.1
30.2
29.8
30.7
31.5
14.4
8.1
.7
15.7
8.1
.8
15.8
8.3
.8
15.4
8.4
.8
15.2
8,6
.8
15.4
8.7
.9
14.9
8.7
fi
2.5
2.4
2.5
2.5
2.5
3.0
2.5
2.4
•3.1
2.6
3.2
2.8
2.7
4.6
23.9
24.1
25.8
26.2
27.3
28.4
28.5
15 3
7.1
1.2
15.8
7.0
.6
17.3
7.3
.6
16.5
7.5
1.7
18.4
7.5
.7
19.5
7.7
.6
20.0
7.8
.7
.6
.5
.3
.8
Errors and omissions, net receipts or payments ( — )
.fi
1.4
Total (balanced by decline in United States
gold holdings and increase in recorded liquid
liabilities)
-3.6
•-4.6
-4.5
.6
(4)
1.4
-.1.
-.6
-1.1
-2.6
-2.6
-2.8
-4.1
1
Preliminary.
2 Transfers of military aid are excluded both from exports and from grants.
34 Excludes $1,375 million for increase in United States subscription to the Intern ational Monetary Fund.
Less than $50 trillion.
NOTE.— Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.
107
still large in October, the time of the speculative flurry on the London
gold market, seem to have fallen off following the reductions in short-term
rates in several European countries and the announcement of various
measures to reduce the payments deficit which confirmed United States
determination to defend the dollar.
The increase in the over-all deficit in the balance of payments in the
second half of the year was accompanied by a rise in foreign acquisitions of gold from the United States. The drop in the United States gold
stock during 1960 amounted to $1.7 billion, against $2.3 billion in 1958
and $1.1 billion in 1959. The 1960 reduction was moderated, as was that
of 1959, by the sale of $300 million of gold to the United States by the
International Monetary Fund, designed to enlarge the income earning
assets of the Fund. Despite its decrease during the year, the United States
gold stock of $17% billion at the end of 1960 was almost one-half of the
total held by all countries of the free world.
IMPROVEMENT IN CURRENT ACCOUNT SURPLUS
The surplus of United States transactions on goods and services improved
steadily throughout 1960. By the third quarter it reached a seasonally
adjusted annual rate of over $4 billion, a shift of more than $5 billion
from the sizable deficit recorded in the second quarter of 1959. The
improvement occurred chiefly in the merchandise trade account; the
combined movement in service transactions remained small. Among the
service receipts, income on investments increased for the second consecutive
year, following a small decrease in 1958. On the payments side, military
expenditures abroad, which had already fallen somewhat in 1959, declined
slightly, although they still were at an annual rate of about $3 billion.
Payments on transportation and travel, however, continued to rise rapidly.
The merchandise trade surplus rose to a seasonally adjusted annual rate
of more than $5 billion by the third quarter of 1960. Except during the
1956-57 period of the Suez crisis, the surplus had not been so large since
the early postwar years, when Marshall Plan aid swelled exports. For 1960
as a whole, it probably exceeded $4.5 billion, far above the $0.9 billion
of 1959.
Exports made the largest contribution to the improvement in the trade
surplus. From an annual rate of $15.3 billion in the first quarter of 1959
they rose to an annual rate of $20.0 billion in the third quarter of 1960,
and continued at a high rate in the fourth quarter. A higher export level
had been achieved only in the Suez-crisis months of early 1957, when fuel
exports were at a record annual rate, about $1.5 billion above that for 1960.
The near record rate of exports in the second half of 1960, moreover, was
achieved despite weakness in two of our major export markets, Canada
and Latin America.
The year's upsurge in exports covered a broad range of commodities, but
the sharpest increases, on the whole, were recorded by a variety of crude
108
and semimanufactured materials (Table B-18). Coal was an exception,
as import restrictions on coal continued to prevail in several countries of
Western Europe. The advance in total exports was the result of a combination of circumstances: the boom in business activity in most industrial
countries outside of North America; the removal of many foreign import
restrictions on United States goods; an increase in sales of surplus farm
products for foreign currencies; and, finally, some improvement in our
competitive position in world markets.
TABLE B-18.—United States merchandise exports, 1956-60
[Millions of dollars]
January-October
Commodity
1956
1957
1958
1959
1960
Annual rates
Total exports, excluding "special category"
16, 901
18, 868
15, 823
15, 502
18, 550
2,423
1,342
2,325
1,370
2,223
1,297
2,386
1,418
2,586
1,618
746
652
846
872
534
462
397
406
371
434
Cotton, unmanufactured
Oilseeds and crude \7egetable oils
729
305
1,059
374
661
270
342
377
906
428
Rubber and manufactures
Wood, paper, and products
276
446
300
482
278
450
319
499
382
612
Textile semi- and finished manufactures
630
667
600
611
694
Iron and steel-making raw materials
Iron and steel-mill products
_ _ _
_ -__
Xonferrous metals
Aluminum
Copper and copper-base alloys
_ . ___ _ _ _ _
362
762
407
47
276
432
993 '
440
46
304
138
563
341
47
230
184
390
280
67
137
306
632
691
175
376
Foodstuffs
Grains a n d preparations _ _
Coal a n d related products
Petroleum and products
_ _ _ _ _ _ . _ _ _ . _ . _ _
_ _ _ _ _ _ _ _ _ _
Machinery
Industrial machinery
Tractors, parts, and accessories
Automobiles, parts, and accessories
Passenger cars and chassis, new
_ _ - _ _ _ _._ _
_-
3,580
2,152
390
4,005
2.502
380
3,682
2,269
311
3,661
2,198
366
4.036
2,465
394
1,359
334
1,309
301
1,087
260
1,146
221
1,207
215
184
267
217
133
570
Chemicals
1,239
1,379
1,343
1,460
1, 672
All other, including reexports.. __
2,802
3,118
2,975
2,911
3,023
Aircraft and engines
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.
In addition, increases from 1959 to 1960 in exports of four major categories of commodities reflected special circumstances that had depressed
exports in 1959. Exports of raw cotton in 1960 were substantially larger
than in 1959, when foreign purchasers awaited an increase in the United
States Government export subsidy and a consequent lowering of price.
However, the heavy volume of cotton exports in 1960 also reflected the
boom abroad. Similarly, aircraft shipments, which had dropped in 1959
as deliveries of piston aircraft fell and production of jet aircraft was not
109
fully under way, mounted rapidly in 1960 as a result of an unusual backlog
of orders for jet aircraft. In 1959, domestic stockpiling in anticipation of
strikes in the steel and copper industries, and small output during the strikes,
reduced supplies of those products available for export that year; in I960,
shipments were at a more normal level. The increase in steel and copper
exports in 1960 also reflected the high economic activity in Western Europe
and Japan, although these exports fell off somewhat after the third quarter,
with the easing in demand pressures in some of these countries. In addition,
the rise in copper exports in 1960 was in part a byproduct of the uncertainties
surrounding supplies from African and Latin American sources.
The impact which the business upswing abroad had on United States
exports in 1960 can be gauged by the geographical distribution of the
year's export gains: three areas of the world experiencing the most pronounced industrial boom—Western Europe, Japan, and Australia—which
took somewhat more than one-third of our exports in 1959 were responsible
for over four-fifths of the rise in exports in the first 10 months of the year.
On the other hand, exports to two of our other major markets—Canada
and Latin America—which in 1959 absorbed almost one-half of our exports,
TABLE B-19.—United States merchandise imports, 1956-60
[Millions of dollars]
1956
Commodity
January-October
1957
1958
1959
1960
Annual rates
12, 516
Tntal imports for r/vn sumption
Food:
Meat products
Coffee
- Sugar
Other food
- -
. --_ .. . . ...
Crude rubber 2
- Wool, unmanufactured _
Sawmill products
Newsprint
Petroleum and products
Iron and steel-mill products '
Nonferrous ores and metals. Copper
Textile semi- and finished manufactures
Machinery
Electrical
Industrial 4
Automobiles, except trucks, new. . - - , _.
Chemicals and related products
-.. -
- _ . ._
All other
21
110
14, 753
14, 782
146
1,439
437
1,182
184
1,376
459
1,274
337
1,172
523
1,427
406
1,091
542
1,400
337
1,015
524
1,424
398
243
306
688
1,286
212
1,439
502
349
211
243
657
1,548
212
1,347
384
248
165
264
614
1,636
230
1,024
249
373
233
346
648
1,517
517
1,082
254
334
208
322
678
1,501
539
1,165
407
648
355
100
139
635
424
144
152
637
472
167
130
827
636
228
169
955
707
258
215
127
274
302
276
489
282
725
344
554
359
3,337
3,453
3,301
4,066
4,159
Excludes $34 million which Is included in commodity data.
Includes latex.
Excludes pig iron and scrap.
Excludes office appliances and printing machinery.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.
4*
12, 951 1 12, 786
declined slightly. Sales to Canada had expanded quite rapidly in 1958-59,
but began to fall early in I960, reflecting the dip in economic activity there.
The small decline in total sales to Latin America in I960, compared with
1959, was due to sharp drops in shipments to Cuba and Venezuela, caused
by the political and foreign exchange crises in those two countries. Exports
to most of the 18 other Latin American countries rose in 1960.
Changes on the import side of the trade accounts were less marked than
those ori the export side. Merchandise imports edged down from late
1959 and in the third quarter of 1960 were at an annual rate (seasonally
adjusted) of just below $15 billion, nearly $1 billion less than a year earlier.
All major economic categories accounted for this decrease. In the closing
months of the year, total merchandise imports declined further. The year's
slight change in the import total was the result of generally small changes,
upward and downward, in the various import categories (Table B-19).
Special nonrecurring factors worked in both directions. Imports of meat
declined as domestic supplies of beef increased from the rather low levels
obtaining in 1958 and 1959. On the other hand, the steel and copper
strikes led to a temporary rise in imports of these commodities in the first
part of the year. Changes in other import categories reflected the easing
of domestic demand (declines in imports of some materials), the weakness
of primary commodity prices (e.g., coffee and wool), and the shifting competitive position of manufactures (e.g., increases in imports of textile manufactures and the decline in automobile imports), which is discussed below.
SHARP INCREASE IN CAPITAL OUTFLOWS
The divergence between cyclical developments in most foreign industrial
countries and in the United States, which contributed to the improvement
in the United States trade position in 1960, also contributed to the sizable
capital outflows that increased both the deficit in the over-all balance of
payments and the drain on the United States gold stock. Some of this
movement of capital reflected the attractiveness in 1960 of stock market
investments in a number of Western European countries, compared with
the United States. The greater part of it, however, appears to have
resulted from the enlarged margin by which interest rates abroad, particularly in the short-term area, exceeded those in this country, and some of
it was probably caused by increased international political and economic
tensions.
The combined total of net outflows of Government loans and grants, of
pensions and remittances, and of United States private long-term investment, on the other hand, changed little between the first three quarters of
1959 and of 1960. While the net outflow of Government loans and grants
increased somewhat—because of smaller repayments (including repayments
ahead of schedule) on United States Government loans, the $80 million
subscription to the new Inter-American Development Bank, and larger
acquisitions of foreign currencies as payment for United States Govern-
III
ment sales of surplus agricultural commodities—the net recorded outflow
of private long-term United States capital declined slightly.
The outflow of liquid capital funds gathered force slowly in 1960; in
the third quarter, however, it reached sizable proportions as interest rates
declined and monetary conditions eased further in the United States, while
interest rate increases and monetary tightening abroad continued. Largescale movements of liquid funds between international money centers in
response to interest-rate changes have taken place in other recent years;
but owing to a combination of circumstances resulting mainly from the
economic recovery of industrial countries outside North America, this latest
movement was much greater. The revived strength of Europe's major
currencies, capped with the establishment of convertibility at the close of
1958, made it possible for private European holders in 1959 greatly to
increase their short-term dollar assets. Monetary tightening in Europe and
easing in the United States in 1960 then led to the repatriation of sizable
amounts of these funds. At the same time, fear of a possible weakness of
Europe's currencies and of an inability to repatriate funds because of foreign
restrictions disappeared as a deterrent to United States corporations and
other investors interested in taking advantage of higher interest rates abroad.
Moreover, United States corporations, having become accustomed to investing temporarily surplus funds in United States Treasury bills and other marketable instruments, rather than just in bank deposits, had less hesitation
than previously in purchasing higher-yielding foreign Treasury bills.
The resulting outflow of United States private capital in the second and
third quarters of 1960 was considerably larger than in the first half of
1958, when interest-rate differentials also favored investment abroad but
when the general climate was less favorable to such capital movements.
However, in the recent period, the capital that moved was primarily of a
short-term type. In 1958 there had been a relatively large outflow of
funds resulting from the flotation in the United States of new bond issues
of foreign and international borrowers. In 1960, this type of outflow was
much smaller. Both the International Bank for Reconstruction and Development and various Canadian corporations, provinces, and municipalities, which in 1958 borrowed heavily in the United States, had less need to
obtain funds in this country. More important perhaps, long-term United
States interest rates did not decline in 1960 to the levels reached in early
1958. In addition, purchases of outstanding foreign bonds by United States
investors in 1960 were probably motivated not only by considerations of yield
but also by the expectation of capital gains, since long-term interest rates
abroad were thought to be headed down again.
Another difference between 1960 and the earlier period—also related
to reductions of fears about leading foreign currencies—appears to have
been the relative importance attained by so-called uncovered movements of
funds. Investors interested in taking advantage of higher short-term yields
abroad can cover themselves, at the time they make the investment, from
112
the foreign exchange risk by entering a forward foreign exchange contract to
sell the foreign currency that they purchase. Such covering usually involves
a cost which may substantially reduce the incentive to invest short-term funds
abroad. In I960, this cost was quite high for short-term investment in
several countries. At the same time, interest-rate differentials were frequently so large that some investors reportedly felt that the profit of uncovered movements of funds was sufficiently great to compensate for the risk
of exchange losses. The fluctuations in the interest-rate incentive to invest
short-term funds abroad—on both a covered and an uncovered basis—
are indicated in Table B-20 in terms of Treasury bill rates for the United
Kingdom, which appears to have been a major recipient of interest arbitrage funds from the United States in I960, and for Canada, toward which
the incentive shifted several times.
TABLE E-20.— Treasury bill rates in the United States, Canada, and the United Kingdom,
1958-60
[Percent per annum; weekly averages]
3-month Treasury bill rates
Period
Excess of foreign rate over United States
rate
Without forward
cover
United
Kingdom Canada
United
Kingdom
0.18
.18
-.26
.17
0.69
.44
.40
.08
.38
.32
-.07
-.82
.41
.55
-.02
-.32
.04
-.08
.08
-.21
.51
-.04
.16
-.52
.23
.46
1.61
1.41
1.19
2.25
.12
.09
.19
-.37
.46
.36
.68
.56
.44
1.04
5.56
5.58
5.58
5.53
.14
.73
.30
-.61
3.17
3.18
3.29
3.04
.21
.58
.30
-.26
1.07
1.13
1.29
.80
4.85
5.37
4.74
4.44
.86
.21
1.04
1.34
2.49
2.94
2.36
2.17
.65
.47
.73
.76
1.08
1.03
.99
1.21
United
States
Canada
1958: First quarter
Second quarter
Third quarter
Fourth quarter.
1.84
1.02
1.71
2.79
2.98
1.65
1.54
3.07
6.02
4.92
3.87
3.43
1.14
.63
-.17
.28
1959: First quarter
.
Second quarter
Third quarter
_ _
Fourth quarter _ _
2.80
3.02
3.55
4.30
3.73
4.90
5.58
4.98
3.18
3.34
3.48
3.48
.93
1.88
2.03
.68
1960: First quarter
Second quarter.
April
Mav
June
_
3.94
3.09
3.24
3.39
2.64
4.45
3.05
3.40
2.87
2.87
4.40
4.70
4.65
4.58
4.89
2.39
2.40
2.29
2.49
2.53
3.13
2.59
1.88
2.36
2.43
2.38
2.27
3.22
2.64
3.42
3.61
Third quarter
July
AugustSeptember
Fourth quarter
October
November
December.
.._
-_ _.
With forward
cover !
United
Kingdom
Canada
4.18
3.90
2.16.
.64
1
New York foreign exchange rates received through the Federal Reserve Bank of New York.
NOTE.—Because of significant rate fluctuations, averages of weekly rates often conceal wider differentials
that may exist at one particular time. The figures presented above thus are at times only an approximate
indication of actual yield differentials.
Sources: International Monetary Fund and Federal Reserve Bank of New York.
Interest-rate differentials in favor of foreign countries declined somewhat
toward the close of I960, and the outflow of funds appears to have diminished. While gaps in the collection of balance of payments data prevent the
making of accurate estimates of many types of capital flows, the outflow of
liquid capital in the third quarter may have been as high as $1 billion, or
only slightly less than the over-all payments deficit in that quarter. Some
of this outflow probably was recorded in the payments category of direct
investments in Europe, the amount of which almost doubled between the
second and third quarters of 1960. There are indications that this reflected
in part increased short-term investments abroad by foreign affiliates of
domestic corporations. A sizable part of the liquid capital outflow was
not recorded as such because of deficiencies in the available data, but it
appears in the balance of payments as "unrecorded transactions." In the
third quarter of 1960, there was an outflow of almost $300 million in these
transactions, compared with an average quarterly inflow of $150 million
during the preceding five years. A large part of these unrecorded movements probably occurred in response to interest-rate differentials, and may
include unrecorded shifts due to leads -and lags in commercial payments.
It is noteworthy that, under the definition of the United States over-all
balance of payments deficit, increases in our liquid liabilities to both private
and official foreign holders enlarge the deficit, but increases in our liquid
claims on foreigners do not reduce it; that is, outflows of short-term United
States funds increase the payments deficit, even though they are matched
by an increase in United States liquid assets. Since these assets are privately
owned and are not necessarily available to meet the country's international
obligations, they are not considered the equivalent of gold. Our liquid
liabilities, on the other hand, are potentially, at least, alternatives to gold
as a form in which foreign countries can keep their international assets;
therefore, in measuring the United States deficit, their changes are included
with changes in the United States gold stock.
It should also be pointed out that the recent large outflow under unrecorded transactions exaggerated the apparent size of the over-all payments
deficit to the extent that the funds in question were foreign-owned short-term
funds. If these funds had been recorded at the point in the past when they
moved into the United States, they would have increased the recorded
deficit at that time, instead of enlarging recorded receipts; their subsequent
repatriation would have been registered merely as a shift in foreign ownership, mainly from private to official hands. This is, of course, what occurred
in the case of recorded repatriation of short-term foreign funds. This repatriation did not affect the size of the total deficit, but added to official
dollar balances and thereby enlarged the demand for United States gold.
UNITED STATES PAYMENTS IN LONGER PERSPECTIVE
Beginning in 1950, the United States balance of payments has been in
deficit every year except 1957. In each of the last three years, moreover,
the deficit was more than twice the average of the preceding seven deficit
years. Initially, the deficit was related to United States efforts to speed the
recovery of the war-shattered economies of the free world, and to help
these countries rebuild their reserves. In the last few years, however, the
continuation of a deficit on such a large scale could no longer be explained
on those grounds.
114
It is extremely difficult to connect the deficit with any particular category
of payments, since the interactions of the various components of the balance
of payments are very complex. By and large, however, the deficit has
reflected the postwar economic comeback of Western Europe and Japan
together with continued large expenditures for defense and foreign aid
which the United States has made in discharging its international responsibilities. Since the end of the war, the total of Government payments under
military expenditures and nonmilitary grants and loans has changed relatively little, except for a sharp rise in 1947 and a moderate decline in the
early 1950's; since the early postwar years, an increase in military expenditures abroad has been about as large as the decline in nonmilitary grants
and loans, but it must be noted that the former have a greater impact on
the deficit than the latter. Total United States economic assistance to
foreign countries nevertheless remains large, and most of it is now directed to
less developed countries. United States Government expenditures on economic assistance to less developed countries during 1956-59, as well as
United States private loans and investments in these areas, are shown in
Table B-21, together with such outlays by other industrial countries.
TABLE B-21.—Expenditures for foreign economic assistance and other contributions to less
developed countries, 1956—59 total
[Billions of dollars]
Contributing countries
Total
Official i Private 2
Including reparations, export
credits, and reinvested earnings
Total
Official
Private
Total
22.3
15.0
7.3
27.7
15.9
11.7
United States
Belgium
CanadaFrance3
Germany
Italy
Japan. Netherlands
United Kingdom
Others 4
12.8
.3
.3
4.1
1.1
.3
.3
.3
2.2
.4
8.9
.1
.2
3.0
.9
.2
.3
.2
1.1
.1
3.9
.2
.1
1.1
.3
.1
.1
.1
1.1
.3
14.1
.4
.5
4.2
2.7
.6
.6
.9
3.1
.7
8.9
.1
.2
3.0
1.5
.3
.5
.2
1.1
.1
5.2
.3
.2
1.2
1.1
.3
.1
.7
2.0
.6
1
Official net bilateral contributions (grants and loans, including assistance through sale of farm products
for foreign currencies, i.e., currency claims acquired less currencies disbursed) and net contributions to
multilateral agencies.
2 Private net bilateral contributions (private lending and investment) and net contributions to multilateral
agencies.
3
Data for France are minimum and provisional and do not include reinvested earnings.
4
Includes Austria, Denmark, Ireland, Luxembourg. Norway, Portugal, Sweden, and Switzerland.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Various national sources.
Among nongovernmental transactions, net private long-term capital outflows have risen substantially since the end of the war. At the same time,
there has been an increase of about the same size in net earnings on services
other than military transactions. Within this service total, net expenditure on travel has been rising, but net earnings on investments have increased by a greater amount. In the last two years, net private income on
investments abroad has approximately equaled private United States long-
term investment abroad. The merchandise trade surplus has changed quite
sharply from year to year during the postwar period, and the fluctuations
in the over-all payments balance have roughly paralleled these swings, except in 1956 and in the last two years when capital movements also
fluctuated sharply.
Although the increase in aggregate merchandise exports since the early
postwar years has been uneven, the amount of the increase has been substantial, The total of almost $19.5 billion estimated for 1960 compares
with an annual average of $13.3 billion in the first four postwar years when
exports were boosted by heavy relief and aid shipments. In the whole
period since the war, the advance in exports has been slower than the growth
of GNP, but since the early 1950's exports have risen at about the same rate
as GNP. In 1960, merchandise exports were equal to 3.9 percent of GNP,
the same proportion as in 1950-52, but somewhat below the proportion of
1956 and 1957.
Agricultural exports have increased somewhat less rapidly than aggregate exports since the war, but in 1960, when they were at an estimated $1
billion above the 1946-49 average, they still accounted for almost one-fourth
of the export total. Shipments aided by Government subsidy or Government financing, including sales for foreign currencies, continue to be a
significant part of total agricultural exports. In the fiscal year 1960, agricultural exports within the Public Law 480 and Mutual Security programs,
under which the United States donates or exchanges farm products or sells
them for local currencies which find only restricted use, amounted to $1.3
billion, or 29 percent of total agricultural exports. Sales for dollars that
were aided by export payments or similar programs, including Government
loans, were another 29 percent of the total. It must not be forgotten,
however, that United States agricultural exports still face stringent restric
tions abroad.
Since the first postwar years, exports of finished manufactures have
expanded by about the same rate as total exports, and those of industrial
materials at a somewhat faster rate. In 1960, finished manufactures (excluding Mutual Security program shipments) accounted for about 55 percent of United States nonmilitary exports, and industrial materials for about
30 percent. Capital equipment and industrial supplies and materials,
products that arc very sensitive to business fluctuations abroad, accounted
for more than 70 percent of total exports.
As was to be expected, the share of the United States in world exports
of manufactures has declined from the very high level in the first postwar
years. Since the economic recovery of Western Europe and Japan was a
major goal of United States postwar foreign economic and mutual security
policies, it was inevitable that, with the success of these policies, the countries whose exports had suffered most by the war and its aftermath would
improve their position in world markets. Nevertheless, despite the persistence of some restrictions against our products, our share of world
exports of manufactures remains above prewar (Table B-22).
116
TABLE B-22.—Industrial countries'1 shares of exports of manufactures, 1938, 1950, and 1957-60
[Percent of total l ]
Period
United
States »
United
Kingdom
Germany 8
France
Japan
Others «
1938
20.0
22.1
22.7
6.5
6.6
22.0
1950
27.3
25 5
7.3
9.9
3.4
26.6
1957
1958
25 4
23.3
18 0
17.8
17.5
18.5
80
8.6
6.0
6.0
25.1
25.7
1959: First quarter
Second quarter
Third quarter
Fourth quarter
23 1
21.9
21.1
19.3
18 4
17.8
16.8
16 6
18 3
18.6
19.5
19.9
8.7
9.5
8.8
9.8
6.2
6.4
6.9
7.1
25.4
25.8
26.8
27.4
1960: First quarter s
Second quarter 5
Third quarter «
20.7
22.9
22.0
17.1
16.5
15.3
18.8
18.5
19.2
10.6
9.6
9.0
6.1
6.5
7.4
26.7
26.0
27.1
1
Percentages based on total exports from 11 industrial countries of goods in Sections 5 to 8 of the Standard
International
Trade Classification (excluding United States exports of soecial category goods).
2
Excludes special category goods. Goods valued at approximately $185 million were removed from the
list3 of special category goods in 1957.
Prewar: all Germany; postwar: German Federal Republic. German Federal Republic's prewar exports
were roughly two-thirds of those of the whole of Germany.
*5 Comprises Belgium-Luxembourg, Canada, Italy, Netherlands, Sweden, and Switzerland.
Provisional.
NOTE.—Detail will not necessarily add to 100 percent because of rounding.
Sources: Department of Commerce; Board of Trade, United Kingdom; and National Institute of Economic and Social Research, London.
The postwar decline of the United States share of exports of manufactures reflects in the main the fact that manufactured products are once
again available from our competitors in quantities and quality. During
I960, the United States share improved again, despite the weakness in the
Canadian and Latin American markets where we are by far the largest
supplier, in part because of the business upswing in Europe and Japan.
A variety of products, but particularly metals and transport equipment,
which had figured so prominently in the 1959 deterioration in our relative
trading position, appear to have contributed to the improvement in our
share. Exports of passenger cars, however, remained at about their 1959
level, considerably below exports in earlier years. This decline in passenger
car exports appears in part related to the fact that United States production
has not been geared more closely to the types of cars demanded abroad,
although within the domestic market United States automobiles have
improved their position relative to that of foreign cars.
The measures toward trade liberalization recently taken by a number of
foreign nations undoubtedly contributed to the improved position of the
United States in the market for manufactures. Exports of those consumer
manufactures which were freed in 1959 from discriminatory quota restrictions abroad increased noticeably in 1960. The same appears to have
been true of machinery exports. When the effects of liberalization are considered from the point of view of the geographical distribution of export
gains, it is seen that exports to countries that had recently reduced or lifted
discrimination against United States products (e.g., the United Kingdom)
expanded, by and large, more rapidly than did exports to other countries
576899 O—61-
117
which also experienced high economic activity but had liberalized dollar
imports much earlier (e.g., the Netherlands).
Now that much progress has been made in dismantling quota restrictions, with the principal exception of agricultural products, attention has
focused on tariff barriers; in this regard United States manufactures
still face relatively difficult obstacles in many countries abroad. For example, in 1960 the import duties on passenger cars in France were 29 percent, in Germany 13 percent, in Italy 32-41 percent, and in the United
Kingdom 30 percent, compared with the tariff of only 8.5 percent in the
United States.
The recent performance of United States exports to Western Europe
deserves special attention. Between the first three-quarters of 1959 and
the first three-quarters of 1960, our shipments to that area increased by
more than 50 percent, against an increase of only 20 percent in the area's
total imports. The 1960 upturn in United States exports to Western
Europe was more broadly based than the previous rise to a peak in early
1957, at the time of the Suez crisis, as the commodity composition of sales
to Europe indicates. Five commodities—raw cotton, steel scrap, iron and
steel-mill products, copper, and aircraft—exports of which have fluctuated
very sharply in recent years, had accounted for more than 70 percent of the
rise between the first half of 1956 and of 1957 in exports to Europe (other
than fuels, which were exceptionally large in 1957 and fell steeply thereafter). In the 1959-60 movement, in contrast, these five commodities accounted for less than half of the increase (Table B-23). Other exports,
excluding fuel, to Europe rose by 33 percent in the latter period, but by only
7 percent in the earlier one.
Merchandise imports have increased at a higher rate than exports since
the first postwar years. However, in relation to GNP, imports in 1960 reTABLE B-23.—United States merchandise exports to Western Europe, 1956-60
January-June
Commodity group
1956
1957
1958
Percentage change
1959
1960
1956 to 1957 to 1959 to
1957
1959
1960
Millions of dollars
Total merchandise exports J
2,471
Excluding coal and petroleum . _ 2,230
Excluding coal, petroleum, and
selected commodities.1,847
3,270
2,336
2,110
3,167
32
-35
55
50
2,704
2,106
1,957
3,036
21
-28
1,980
1,651
1,774
2,355
7
-10
33
Coal and petroleum
241
566
230
153
131
135
-73
-14
Selected commodities
383
724
455
183
681
89
-75
272
99
69
95
91
29
378
84
84
115
63
235
37
56
69
58
73
4
35
60
11
264
31
93
111
182
282
22
-12
26
117
-81
-95
-58
-48'
-83
262
675
166
85
1,555
Raw cotton
Steel scrap
Iron and steel-mill products
Copper
_
Aircraft
1
Excludes military aid and military sales.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.
118
mained below their prewar level (Table B-24). Since 1952, the ratio of
total merchandise imports to GNP has held very close to 3 percent; in 1959,
when the import ratio was 3.2 percent, total imports reflected very large
imports of automobiles and strike-induced imports of steel. Imports of SUPTABLE B—24.—Measures of demand for United States imports, selected years, 1929-60
[Percent]
Measure of demand
Imports of goods and services 2 as percent of gross
national product
Merchandise imports as percent of gross national
product
Imports of foods and beverages as percent of personal
expenditures on food
Imports of nonfood consumer goods as percent of
disposable income
Imports of industrial supplies8and materials for production of nondurable goods as percent of nondurable goods output
Imports of industrial supplies and materials for production of durable goods as percent of durable
goods output
1929
1937
1949
1951
1955
1958
1959
19601
5.6
4.6
3.5
4.2
3.6
4.0
4.2
4.1
4 3
35
2 7
34
2 9
2 9
3.2
3/0
4 8
38
4 3
4 0
.6
4
.2
.3
.4
.5
.7
.8
3.5
1.9
1.0
1.8
1.0
.8
1.0
1.0
4.7
4.9
3.0
3.6
3.2
3.0
3.5
3.1
1 January-September.
23 Excludes military expenditures.
Excludes petroleum, newsprint, and paper base stocks.
Source: Department of Commerce.
plies and materials have shown a decline in relation to domestic output,
compared with prewar years. Imports of finished manufactures, on the
other hand, have increased in relation to domestic output and expenditure
and to total imports; like the postwar reduction of the United States share
in exports, this was, in part, a natural outcome of the economic recovery
abroad and was facilitated by the lowering of United States tariffs under
the reciprocal trade agreement legislation, even though on some products
United States tariffs remain high, compared with foreign tariffs.
Imports of some foreign products—especially textile manufactures, rubber and leather goods, and various small electrical appliances—have continued to increase particularly rapidly. But in international trade, as in
domestic trade, comparative advantage continually shifts from one product
and producer to others. For many products, there are increasing signs
that United States producers are successfully enlarging their efforts to
hold domestic demand. The recent sharp drop in automobile imports
(after mid-1960 these were running at one-half of the rate in comparable
months of 1959), following the introduction of "compact" cars by United
States manufacturers, is the most striking example.
In the domestic market, however, just as in the export field, United States
industries must continue their efforts to keep their products competitive. As was pointed out in Chapter 1, the Administration has intensified
its measures to support the efforts of private business to enlarge our sales
abroad. The Administration has likewise undertaken vigorous measures
on other fronts to help speed the achievement of a reasonable equilibrium
in the United States balance of payments. This enterprise is a responsibility
shared by both the public and the private sector of the economy.
Appendix C
STATISTICAL TABLES RELATING TO INCOME,
EMPLOYMENT, AND PRODUCTION
121
CONTENTS
income or expenditure:
Page
Gross national product or expenditure, 1929-60
127
Gross national product or expenditure, in 1960 prices, 1929-60
128
Gross private and government product, in current and 1960 prices,
1929-60
130
C-4. Gross national product or expenditure, in 1954 prices, 1929-60.... * .
131
G-5. Implicit price deflators for gross national product, 1929-60
132
C-6. Gross national product: Receipts and expenditures by major economic
groups, 1929-60
134
G-7. Personal consumption expenditures, 1929-60
136
G-8. Gross private domestic investment, 1929-60
137
G-9. National income by type of income, 1929-60
138
G-10. Relation of gross national product and national income, 1929-60. . . .
139
C-ll. Relation of national income and personal income, 1929-60
140
G-12. Sources of personal income, 1929-60
141
G-l 3. Disposition of personal income, 1929-60
142
G-l 4. Total and per capita disposable personal income and personal consumption expenditures, in current and 1960 prices, 1929-60
143
G-l5. Financial saving by individuals, 1939-60
144
G-l 6. Sources and uses of gross saving, 1929-60
145
Employment and wages:
G-l 7. Noninstitutional population and the labor force, 1929-60
146
G-l8. Employment and unemployment, by age and sex, 1942-60
148
G—19. Employed persons not at work, by reason for not working, and special
groups of unemployed persons, 1946—60
149
G-20. Unemployed persons, by duration of unemployment, 1946-60
150
G-21. Unemployment insurance programs, selected data, 1940—60
151
G—22. Number of wage and salary workers in nonagricultural establishments,
1929-60
152
G-23. Average weekly hours of work in selected industries, 1929-60
154
G—24. Average gross hourly earnings in selected industries, 1929-60
155
G—25. Average gross weekly earnings in selected industries, 1929-60
156
G-26. Average weekly hours and hourly earnings, gross and excluding overtime, in manufacturing industries, 1939-60
157
G-27. Average weekly earnings, gross and spendable, in manufacturing
industries, in current and 1960 prices, 1939-60
158
G-28. Labor turnover rates in manufacturing industries, 1930-60
159
Production and business activity:
G-29. Industrial production indexes, 1947-60
160
G—30. Business expenditures for new plant and equipment, 1939 and 1945—61.
162
G-31. New construction activity, 1929-60
163
G-32. New public construction activity, 1929-60
164
G—33. Housing starts and applications for financing, 1929-60
165
G-34. Sales and inventories in manufacturing and trade, 1939—60
166
G—35. Manufacturers' sales, inventories, and orders, 1939-60
.
167
National
G-l.
G-2.
G-3.
123
Prices:
Page
C-36. Wholesale price indexes, 1929-60
168
G—37. Wholesale price indexes, by stage of processing, 1947—60
170
G-38. Consumer price indexes, by major groups, 1929-60
172
G-39. Consumer price indexes, by special groups, 1935-60
173
Money supply, credit, and finance:
G-40. Money supply, 1947-60
174
G-41. Loans and investments of all commercial banks, 1929-60
175
G-42. Federal Reserve Bank credit and member bank reserves, 1929-60
176
G-43. Bond yields and interest rates, 1929-60
177
G-44. Short- and intermediate-term consumer credit outstanding, 1929—60. . 179
G-45. Instalment credit extended and repaid, 1946-60
180
G-46. Mortgage debt outstanding, by type of property and of financing,
1939-60
181
C-47. Net public and private debt, 1929-60
182
Government finance:
C-48. U.S. Government debt, by kind of obligation, 1929-60
183
C-49. Estimated ownership of Federal obligations, 1939-60
184
C-50. Average length and maturity distribution of marketable interest-bearing public debt, 1946-60
185
C-51. Federal budget receipts and expenditures and the public debt,
1929-62
186
C—52. Federal budget receipts by source and expenditures by function, fiscal
years 1946-62
187
C-53. Government cash receipts from and payments to the public, 1946-62. . 188
C-54. Government receipts and expenditures as shown in the national income
accounts, 1955-60
189
C-55. Reconciliation of Federal Government receipts and expenditures in
the conventional budget and the consolidated cash statement with
receipts and expenditures in the national income accounts, fiscal
years 1958-60
190
C-56. State and local government revenues and expenditures, selected fiscal
years, 1927-59
191
Corporate profits and finance:
G-57. Profits before and after taxes, all private corporations, 1929-60
192
C-58. Relation of profits before and after taxes to stockholders' equity and
to sales, private manufacturing corporations, by asset size class,
1957-60
193
C-59. Relation of profits after taxes to stockholders' equity and to sales,
private manufacturing corporations, by industry group, 1957-60..
194
O60. Sources and uses of corporate funds, 1949-60
196
C-61. Current assets and liabilities of United States corporations, 1939-60..
197
C-62. State and municipal and corporate securities offered, 1934-60
198
C-63. Common stock prices and earnings and stock market credit, 1939-60.
199
C-64. Business population and business failures, 1929-60
200
Agriculture:
C-65. Income of the farm population, 1929-60
201
C-66. Indexes of prices received and prices paid by farmers, and parity
ratio, 1929-60
202
C-67. Farm production indexes, 1929-60
204
C-68. Selected measures of farm resources and inputs, 1929-60
205
C-69. Farm population, employment, and productivity, 1929-60.
206
C-70. Selected indicators of farming conditions, 1929-60
207
C-71. Comparative balance sheet of agriculture, 1929*61
208
124
International statistics:
Page
C-72. United States balance of payments, 1955-60
209
C—73. Major U.S. Government foreign assistance, by type and by area,
total postwar period and fiscal years 1957-60
210
C-74. United States merchandise exports and imports, by economic category, 1949 and 1955-60
211
G-75. United States merchandise exports and imports, by area, 1949 and
1955-60
212
G-76. Estimated gold reserves and dollar holdings of foreign countries and
international institutions, 1949 and 1956-60
213
G-77. Price changes in international trade, 1955-60
214
Data for Alaska and Hawaii are not included
in these tables unless specifically noted.
125
NATIONAL INCOME OR EXPENDITURE
TABLE G-l.—Gross national product or expenditure, 1Q29-60
[Billions of dollars]
Total
gross
national
product
Period
Gross private domestic
investment 2
Personal
consumpProNet
tion
New ducers' change
excondurain
buspendi- Total struc- ble
iness
tures i
tion equip- invenment tories
Government purchases of goods
and services
Net
exports
Federal
of
goods
and Total
Less: State
Naserv-3
Gov- and
tional
ices
Total de- Other ern- local
ment
fense4
sales
1929
104.4
79.0
16.2
8.7
5.8
1.7
0.8
8.5
1930
1931
1932
1933
1934
1935
1936
--.
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
--1950
--1951
1952
1953
1954
1955
1956
1957
__
1958
1959
I9608
91.1
76.3
58.5
56.0
65.0
72.5
82.7
90.8
85.2
91.1
100.6
125.8
159.1
192.5
211.4
213.6
210.7
234.3
259.4
258.1
284.6
329.0
347.0
365.4
363.1
397.5
419.2
442.8
444.2
482.1
503.2
71.0
61.3
49.3
46.4
51.9
56.3
62.6
67.3
64.6
67.6
71.9
81.9
89.7
100.5
109.8
121.7
147.1
165.4
178.3
181.2
195.0
209.8
219.8
232.6
238.0
256.9
269.9
285.2
293.5
313.8
328.2
10.3
5.5
.9
1.4
2.9
6.3
8.4
11.7
6.7
9.3
13.2
18.1
9.9
5.6
7.1
10.4
28.1
31.5
43.1
33.0
50.0
56.3
49.9
50.3
48.9
63.8
67.4
66.1
56.0
72.0
72.7
6.2
4.0
1.9
1.4
1.7
2.3
3.3
4.4
4.0
4.8
5.5
6.6
3.7
2.3
2.7
3.8
11.0
15.3
19.5
18.8
24.2
24.8
25.5
27.6
29.7
34.9
35.5
36.1
35.4
40.3
40.4
4.5
2.8
1.6
1.6
2.3
3.1
4.2
5.1
3.6
4.2
5.5
6.9
4.3
4.0
6.4
7.7
10.7
16.7
18.9
17.2
18.9
21.3
21.3
22.3
20.8
23.1
27.2
28.5
23.1
25.8
28.9
-.4
-1.3
-2.6
-1.6
-1.1
.9
1.0
2.2
-.9
.4
2.2
4.5
1.8
-.8
-1.0
-1.1
6.4
-.5
4.7
-3.1
6.8
10.2
3.1
.4
-1.6
5.8
4.7
1.6
—2 5
5.9
3.3
.7
.2
.2
.2
.4
-.1
-.1
.1
1.1
.9
1.5
1.1
-.2
-2.2
-2.1
-1.4
4.9
9.0
3.5
3.8
.6
2.4
1.3
-.4
1.0
1.1
2.9
4.9
1.2
-1.0
2.7
9.2
9.2
8.1
8.0
9.8
10.0
11.8
11.7
12.8
13.3
14.1
24.8
59.7
88.6
96.5
82.9
30.5
28.4
34.5
40.2
39.0
60.5
76.0
82.8
75.3
75.6
79.0
86.5
93.5
97.1
99.6
-
1.3
13
(*}
1.4
1.5
1.5
2.0
3.0
2.9
4.8
4.6
5.3
5.2
6.2
16.9
52.0
81.2
89.0
74.8
20.6
15.6
19.3
22.2
19.3
38.8
52.9
58.0
47.5
45.3
45.7
49.7
52.6
53.3
52.3
14
15
15
2 0
30
2. 9
4. 8
4 6
53
1.3
2.2
13.8
49.6
80.4
88.6
75.9
18.8
11.4
11.6
13.6
14.3
33.9
46.4
49.3
41.2
39.1
40.4
44.4
44.8
46.0
45.0
(55)
(5)
(5)
(5)
3.9
4.0
3.2
2.7
1.5
1.6
1.0
4.5
5.4
8.2
8.9
5.2
5.2
6.7
9.0
6.7
6.6
5.7
5.7
8.3
7.8
7.9
7.2
7.8
7.7
6.6
6.0
6.8
()
5
7.1
()
7.0
7.2
5
7.5
(5)
8.2
()
5
7.9
(5)
7.8
()
0.2
7.7
7.4
.6
7.5
1.2
2.2 8.1
2.7 9.9
1.1 12.7
.5 15.2
.2 17.9
.1 19.7
.3 21.7
.3 23.2
24.9
!a 27.7
.4 30.3
.3 33.2
.4 36.8
.5 40.8
.5 43.9
.6 47.3
8
Seasonally adjusted annual rates
1958:
First quarter
Second quarter. .
Third quarter. -Fourth quarter..
432.0
436.8
447.0
461.0
287.7
291.2
294.8
300.2
52.4
52.5
55.8
63.2
35.2
34.3
35.0
36.8
24.1
22.7
22.3
23.5
1959:
First quarter
Second quarter..
Third quarter. __
Fourth quarter..
473.1
487.9
481.4
486.4
306.1
313.6
316.0
319.6
70.9
78.9
67.5
70.8
39.4
41.3
41.1
39.4
23.9
26.1
26.5
26.8
1960:
First quarter
Second quarter. _
Third quarter. 6..
Fourth quarter .
501.3
505.0
503.5
503.5
323.3
329.0
328.3
332.0
79.3
75.5
70.8
65.8
40.8
40.7
40.5
40.4
27.1
29.5
29.7
29.4
1.7
1.3
1.6
.4
90.1
91.9
94.8
97.1
50.6
51.8
53.7
54.3
44.4
44.6
44.9
45.5
6.8
7.8
9.1
9.4
.5
.6
.4
.6
39.5
40.1
41.2
42.8
7.6 -1.0
11.5 -2.2
-.1 -.2
4.7 -.4
97.1
97.7
98.1
96.4
53.3
53.7
53.6
52.5
45.9
46.4
46.1
45.5
7.9
7.8
8.0
7.5
.5
.5
.5
.5
43.8
44.0
44.5
43.9
1.2 97.5
2.0 98.6
3.7 100.7
4.0 101.7
51.8
51.7
52.7
53.2
44.9
44.7
45.1
45.6
7.5
7.6
8.2
8.2
.5
.6
.6
.6
45.7
46.9
48.0
48.5
-6.9
-4.5
-1.6
2.9
11.4
5.3
.6
-4.0
*2 See Table C-7 for major components.
See Table C-8 for more detail and explanation of components.
3
For 1929-45, net exports of goods and services and net foreign investment have been equated, since foreign
net4 transfers by Government were negligible during that period.
This category corresponds closely to the major national security classification in the Budget of the United
States Government for the Fiscal Year ending June 30,1962. See Table C-52.
s Less than $50 million.
8
Preliminary estimates by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
127
TABLE C-2.—Gross national product or expenditure, in 1960 prices, 1929-60*
[Billions of dollars, 1960 prices]
Personal consumption
expenditures
Total
gross
national
product
Period
Gross private domestic investment
New construction
Produc- Change
Dura- Noners'
in busiTotal
ble durable Services Total
Residurable ness
equipgoods goods
dential
Total (non- Other ment inventories
farm)
.1929
207.1
141.3
15.8
70.0
55.6
42.3
25.3
10.1
15.2
13.6
3.4
1930
1931
1932
1933
1934
187.6
173.4
147.5
144.1
158.0
132.9
128.8
117.2
114.4
120.3
12.6
10.9
8.2
8.0
9.2
66.6
66.2
61.0
59.2
63.1
53.7
51.7
47.9
47.3
48.0
28.9
17.9
5.1
5.7
9.9
18.8
13.2
7.3
5.6
6.2
6.0
4.9
2.4
1.8
2.2
12.8
8.2
4.9
3.7
4.0
10.7
7.2
4.3
4.5
6.1
-.6
-2.5
-6.5
-4.4
-2.4
173.2
197.9
208.2
198.8
215.2
127.7
140.6
145. 6
143.1
151.1
11.3
14.0
14.6
11.9
14.1
66.6
74.2
76.8
78.1
82.2
49.7
52.4
54.2
53.1
54.8
18.7
25.8
31.6
18.7
26.1
8.1
11.4
13.7
12.2
14.7
3.6
5.3
5.8
6.0
7.9
4.5
6.0
7.9
6.2
6.7
8.2
11.2
12.7
8.8
10.3
2.3
3.3
5.3
-2.3
1.1
1940 . . . .
1941
1942
1943 .
1944
233.8
272.6
311.4
350.8
376.3
159.2
169.7
166.1
170.5
176.6
16.3
18.7
11.5
10.0
9.1
86.0
91.8
93.6
96.5
100.8
56.9
59.2
60.9
64.0
66.7
34.5
43.6
22.3
13.5
15.0
16.4
18.4
9.4
5.3
5.9
8.5
9.2
4.2
2.0
1.7
7.8
9.2
5.2
3.3
4.2
13.3
15.6
9.0
8.4
11.2
4.9
9.6
3.9
-.2
-2.0
1945
1946
1947
1948
1949
369.1
321.7
321.1
333.6
334.2
188.9
211.6
215.3
219.4
225.0
10.4
20.6
24.7
26.1
27.9
108.7
115.4
112.9
112.6
114.0
69.7
75.7
77.6
80.7
83.1
20.8
50.7
50.6
59.2
47.2
8.1
21.0
24.0
27.3
26.9
2.1
8.5
11.3
13.4
13.1
6.0
12.4
12.8
13.9
13.8
15.5
19.6
26.4
27.7
24.1
-2.8
10.2
.2
4.2
-3.8
362.3
392.0
406.8
425.5
416.8
238.7
240.8
247.0
258.9
262.3
34.1
31.0
30.2
35.1
34.4
117.1
119.2
123.3
126.8
127.9
87.5
90.6
93.6
97.0
100.0
66.7
69.2
60.7
61.4
58.9
32.9
31.4
31.3
33.2
35.8
18.2
15.0
15.0
15.9
18.0
14.8
16.4
16.3
17.3
17.8
25.9
26.7
26.5
27.4
25.3
7.9
11.1
2.9
.8
-2.2
449.7
459.2
467.8
459.7
490.6
282.0
291.3
299.1
302.0
319.3
42.0
40.4
40.9
37.8
43.4
134.5
139.7
142.1
143.3
149.3
105.5
111.2
116.0
120.9
126.6
74.7
74.3
69.8
58.2
72.9
40.8
39.0
38.4
37.4
41.3
21.2
19.0
17.9
18.9
22.7
19.5
20.0
20.4
18.5
18.6
27.4
30.3
29.9
23.6
25.9
6.6
5.0
1.5
-2.8
5.8
503.2
328.2
43.9
152.5
131.8
72.7
40.4
21.1
19.3
28.9
3.3
1935
1936
1937
1938
1939
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
_
_
.._
.
._
-
.
_
1960 7
Seasonally adjusted annual rates
1958:
First quarter
Second quarter..
Third quarter. . _
Fourth quarter. .
449.0
452.4
462.1
475.0
296.9
299.4
303.4
308.3
37.1
36.9
37.2
39.9
141.0
142.2
144. 5
145.6
118.8
120.3
121.7
122.8
54.7
54.5
58.0
65.4
37.4
36.3
37.0
38.5
18.0
17.8
18.9
20.7
19.4
18.5
18.1
17.9
24.8
23.2
22.7
23.8
-7.4
-5.0
-1.7
3.0
1959:
First quarter
Second quarter. .
Third quarter
Fourth quarter. .
485.1
497.9
488.5
491.5
313.3
319.9
320.9
323.1
41.7
44.2
43.8
43.7
147.2
149.9
149.6
150.6
124.3
125.8
127.6
128.8
72.6
79.7
68.0
71.3
40.8
42.2
42.0
40.1
22.5
23.9
22.9
21.5
18.3
18.4
19.1
18.7
24.1
26.1
26.3
27.0
7.8
11.4
-.4
4.2
1960:
First quarter
Second quarter. _
Third quarter. ..
Fourth quarter ?.
504.8
506.3
501.7
500.6
325.3
329.2
327.8
330.2
44.4
44.5
42.7
43.9
151.3
153.5
152.5
152.7
129.7
131.3
132.6
133.7
79.5
75.3
70.6
66.0
40.9
40.6
40.5
40.4
21.4
21.3
21.1
20.8
19.5
19.4
19.4
19.7
27.2
29.4
29.6
29.5
11.4
5.3
.6
-4.0
See footnotes at end of table, p. 129.
128
TABLE C-2.—Gross national product or expenditure, in 1960 prices, 1929-60 l—Continued
[Billions of dollars, 1960 prices]
Government purchases of goods and services
Net
exports
of goods
and
services a
Period
1929
_ _
1930
1931
1932
1933
1934 .
1935
1936
1937
1938
1939
1940
1941
1942
1943 .
1944
_
__.
_ _
.
.
-
...
1945
1946
1947
1948
1949
-_
..
Federal
Total
National
34
Total 3 defense
0.8
22.7
3.7
(5)
.7
.2
.1
-.5
-.2
25.1
26.5
25.2
24.5
28.1
4.2
4.6
4.9
6.6
8.7
(fi5)
( 3)
()
(5s)
()
-1.5
-1.7
-1.1
1.4
.8
28.4
33.2
32.1
35.6
37.2
8.4
12.9
12.1
14.4
13.9
1.6
-.1
-2.5
-6.2
-6.3
38.5
59.3
125.4
173.0
191.0
-5.0
4.7
9.1
2.8
3.5
1.1
3.2
2.2
Other
State and
local
19.0
(')
(5s)
(s)
20.9
21.8
20.3
17.9
19.3
(65)
(5 )
(5)
()
3.4
()
(')
(5)
(55)
()
(5s)
( 10.5
)
19.9
20.3
20.0
21.2
23.4
16.5
38.7
106.6
155.9
174.2
5.9
31.4
101.1
153.0
171.2
10.6
7.2
5.5
2.8
3.0
22.0
20.7
18.9
17.1
16.8
164.5
54.7
46.1
52.3
58.6
147.4
35.5
24.4
28.8
31.8
145. 3
27.8
15.9
16.5
19.1
2.0
7.7
8.4
12.3
12.7
17.2
19.2
21.8
23.5
26.8
27.2
49.4
67.0
73.9
59.8
19.9
42.8
58.5
62.5
51.4
7.3
6.6
8.5
11.5
8.4
28.7
29.4
29.9
31.2
33.8
1.9
55.9
78.8
96.9
105.1
93.7
1955
1956
1957 .
1958
1959 .
2.0
3.8
5.1
1.0
-1.2
91.0
89.8
93.8
98.5
99.5
54.8
52.4
54.4
56.0
54.9
46. 8
45.9
48.1
47.2
46.9
7.9
6.5
6.3
8.8
8.0
36.2
37.4
39.4
42.5
44.7
1960 '
2.7
99.6
52.3
44.5
7.9
47.3
1950
1951
1952
1953
1954
(6) ,
Seasonally adjusted annual rates
1958: First quarter
Second quarter
Third quarter
Fourth quarter
-.._
- .
1959' First quarter
Second quarter. _.
Third quarter
Fourth quarter ~
1960: First quarter - Second quarter
Third quarter 7
Fourth quarter
- -
__.
1.5
1.0
1.4
.1
95.9
97.5
99.3
101.2
54.4
55.8
56.5
57.1
47.1
47.4
46.9
47.2
7.3
8.4
9.6
9.9
41.5
41.7
42.8
44.1
-1.5
-2.6
-.4
-.2
100.7
100.9
99.9
97.4
55.7
55.9
54.7
53.2
47.5
47.8
46.6
45.6
8.2
8.1
8.1
7.6
45.0
45.0
45.2
44.2
1.2
2.1
3.7
4.0
98.8
99.7
99.6
100.4
52.6
52.6
51.8
52.3
45.0
44.9
43.7
44.2
7.6
7.7
8.1
8.1
46.1
47.1
47.8
48.1
* These estimates represent an approximate conversion of the Department of Commerce series in 1954
prices. (See Tables C-4 and C-5.) This was done by major components, using the implicit price indexes
converted to a 1960 base. Although it would have been preferable to redeflate the series by minor components, this would not substantially change the results except possibly for the period of World War II, and
for the series on change in business inventories.
For explanation of conversion of estimates in current prices to those in 1954 prices, see U. S. Incomt and
Output, A Supplement to the Survey of Current Business, 195S.
* For 1929-45, net exports of goods and services and net foreign investment have been equated, since foreign
net transfers by Government were negligible during that period.
3 Net of Government sales, which are not shown separately in this table. See Table C-l for Government
sales in current prices.
« See footnote 4, Table C-l.
•7 Less than $50 million.
« Not available separately.
Preliminary.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Department of Commerce and Council of Economic Advisers.
129
TABLE C—3.—Gross private and government product, in current and 1960 prices, 7929-60
[Billions of dollars]
1960 prices 4
Current prices
Period
Total
gross
national
product
Gross private product *
Gross
government
product 3
Total
gross
national
product
Nonfarm
193.2
15.5
177.7
14.0
173.0
158.5
133.0
128.5
140.0
14.2
16.6
15.5
15.4
12.7
158.8
141.9
117.4
113.1
127.3
14.7
14.9
14.6
15.6
18.1
173.2
197.9
208.2
198. 8
215.2
153.9
175.3
186.9
175.7
191.9
15.5
13.2
16.6
16.7
16.7
138.4
162.0
170.3
159.0
175.2
19.3
22.6
21.3
23.1
23.3
7.8
9.4
15.1
25.6
32.2
233.8
272. 6
311.4
350.8
376.3
209.8
242.7
267.9
282.7
297.6
16.4
17.6
19.2
17.6
18.1
193.4
225.1
248.7
265.0
279.5
24.0
29.9
43.5
68.1
78.8
162.2
170.7
196.9
218.2
219.4
35.2
20.7
16.7
17.4
19.4
369.1
321.7
321.1
333.6
334.2
292.0
281.3
290.3
302.7
301.9
17.0
17.3
15.9
18.1
17.2
274.9
264.0
274.4
284.6
284.6
77.2
40.4
30.8
30.9
32.4
20.5
23.6
22.8
20.9
20.3
243.2
278.2
293.2
312.7
310.5
20.8
27.3
31.0
31.8
32.3
362.3
392.0
406.8
425.5
416.8
328.8
350.3
361.9
381.0
373.1
18.2
17.0
17.7
18.3
19.1
310.6
333.3
344.2
362.7
354.0
33.6
41.7
45.0
44.5
43.8
363.5
382.8
403.8
402.3
438.0
19.6
19.3
19.4
21.8
20.4
343.9
363.5
384.5
380.4
417.6
34.0
36.4
38.9
42.0
44.0
449.7
459.2
467.8
459.7
490.6
406.0
414.9
422.8
414.4
444.8
20.1
19.6
19.3
20.2
20.0
385.9
395.3
403.4
394.2
424.8
43.7
44.3
45.0
45.3
45.8
456.4
21.2
435.3
46.8
503.2
456.4
21.2
435.3
46.8
Farm 2
104.4
100.1
9.8
90.3
4.3
207.1
1933
1934
91.1
76.3
58.5
56.0
65.0
86.6
71.6
54.0
51.3
59.4
7.7
6.2
4.4
4.6
4.3
78.8
65.4
49.6
46.7
55.1
4.5
4.7
4.4
4.7
5.6
187.6
173.4
147.5
144.1
158.0
1935
1936
1937
1938 .
1989
72.5
82.7
90.8
85.2
91.1
66.6
75.5
83.9
77.6
83.5
6.9
6.3
8.1
6.7
6.5
59.6
69.2
75.8
70.9
77.0
5.9
7.3
6.9
7.6
7.6
100.6
125.8
159.1
192.5
211.4
92.8
116.4
144.0
167.0
179.2
6.8
9.4
13.4
15.3
15.7
86.0
107.0
130.6
151.7
163.5
213.6
210.7
234.3
259.4
258.1
178.4
189.9
217.6
242.0
238.7
16.2
19.3
20.7
23.8
19.3
1950 .
1951
1952
1953
1954
284.6
329.0
347.0
365.4
363.1
263.8
301.7
316.0
333.6
330.8
1955
1956
1957 _ _..
1958
1959
397.5
419.2
442.8
444.2
482.1
I960 »
503.2
1929
1931
1932..
1940 .
1941
1942
1943
1944 .
1945
1946 ._
1947
1948
1949
_
-. ..
__.
Gross
government
prod-3
uct
Farm *
Nonfarm
Total
1930..
Gross private product 1
Total
1 Gross national product less compensation of general government employees, i. e., gross product accruing
from
domestic business, households, and institutions, and from the rest of the world.
2
See Survey of Current Business, October 1958, for description of series and estimates in current and constant
prices and implicit deflators for 1910-57.
B
Includes compensation of general government employees and excludes compensation of employees in
government enterprises. Government enterprises are those agencies of government whose operating costs
are at least to a substantial extent covered by the sale of goods and services, in contrast to the general activities of government which are financed mainly by tax revenues and debt creation. Government enterprises, in other words, conduct operations essentially commercial hi character, even though they perform
them under governmental auspices. The Post Office and public power systems are typical examples of
government enterprises. On the other hand, State universities and public parks, where the fees and admissions
cover only a nominal part of operating costs, are part of general government activities.
4
See footnote 1, Table C-2
8
Preliminary.
NoTE.—Detail will not necessarily add to totals because of rounding.
Sources: Department of Commerce and Council of Economic Advisers.
130
TABLE C-4. —Gross national product or expenditure, in 1954 prices, 1929-60l
[Billions of dollars, 1954 prices]
Personal consumption
expenditures
Period
Tota
gross
national
product
£
|
o
1
EH
1929
1930
1931
1932
1933
1934
1935
1936
1937 .
1938
1939
1940
1941
1942
1943
1944
1945
1946
1047
1948
1949
1950. _.
1951
1952
1953
1954
1955
1956
1957
1958
1959
I960 5
181.8
164.5
153.0
130.1
126.6
138.5
152.9
173.3
183.5
175.1
189.3
205.8
238.1
266.9
296. 7
317.9
314.0
282.5
282.3
293.1
292.7
318.1
341.8
353. 5
369.0
363.1
392.7
400.9
408.6
401.0
428.0
439.4
Gross private domestic
investment
•2
3
2
0
1
13
§
*>
1
3
0
Net
exports
of
'55 QJ Roods
and
serv£ "5 ices
2
%
iici 1
!
8B
•gS
fc PH8
o>
JL
s
Sz
i
^o
0
6
128.1 14.9
65.3
48.0 35.0 20.9
11.1
3.0
62.1
61.8
56.9
55.2
58.8
46.4 23.6 15.4
44. fi 15.0 10.9
41.4 3.9 6.0
40.8 4.0 4.6
41.5 7.4 5.1
8.8
5.9
3.5
3.7
5.0
-.7
-1.8
-5.6
-4.2
-2.8
.2
-.3
-.3
c
115.8
127.7
132.1
129.9
137.3
10.7
13.1
13.8
11.2
13.3
62.1
69.2
71.6
72.8
76.7
42.9
45.3
46.8
45.9
47.2
16.1 6.7
21.0 9.4
27.0 11.3
15.5 10.1
21.6 12.2
-1.9
-2.2
-1.6
.8
.3
144.6 15.3
154.3 17.6
150.8 10.9
154.6 9.4
160.2 8.6
171.4 9.8
192.3 19.4
195.6 23.3
199.3 24.6
204.3 26.3
80.2
85.6
87.3
90.0
94.0
49.1
51.1
52.6
55.2
57.6
29.0 13.6
36.7 15.3
18.8 7.8
10.7 4.4
12.3 4.8
6.7 2.6
9.2 2.4
10.5 5.2
7.3 -1.8
8.5 1.0
10.9 4.5
12.9 8.6
7.4 3.6
6.9 -.6
9.2 -1.7
1.1
-.6
-2.9
-6.6
-6.7
101.4
107.6
105.3
105.1
106.3
60.2
65.3
67.0
69.6
71.7
17.0
42.4
41.5
49.8
38.5
6.6
17.3
19.9
22.7
22.3
216.8
218.5
224.2
235. 1
238. 0
32.1
29.2
28.5
33.1
32.4
109.2
111.2
115.0
118.3
119.3
75.5
78.2
80.8
83.7
86.3
55.9
57.7
50.4
50.6
48.9
27.4
26.0
26.0
27.6
29.7
256.0
264.3
271.2
273.6
289.4
39.6
38.0
38.5
35.6
40.8
125.4 91.0 62.5 33.9
130.3 96.0 61.7 32.3
132.6 100.1 58.1 31.8
133.7 104.3 48.3 31.0
139.3 109.3 60.9 34.4
Gross
private
product*
T3
3
120.3 11.8
116.6 10.3
106.0 7.8
103.5 7.5
108.9 8.6
297.3 41.3 142.2 113.8 60.4 33.6
Government
purchases of
goods and
services
"eS
<»
T3
&
§
£
5
m
2.9 15.6
171.5
3.4
3.7
3.9
5.3
6.9
17.1
17.9
16.6
14.6
15.8
153.7
142. 0
119.4
115.0
125.1
23.0 6.7 16.3
26.9 10.3 16.6
26.0 9.6 16.4
28.8 11.4 17.4
30.1 11.0 19.1
138.7
156. 6
167.8
158.0
172.1
31.1
47.7
100.1
137.9
152.2
13.1
30.7
84.7
123.9
138.4
18.0
16.9
15.4
14.0
13.8
188.1
216.0
234.8
246.4
259.8
12.7 -2.4 -5.6
3.8
16.1 9.0
8.0
21.7 -.1
2.0
22.8 4.4
2.6
19.8 -3.6
131.2
43.9
37.2
42.1
47.2
117.1
28.2
19.4
22.9
25.3
14.0
15.8
17.8
19.2
21.9
257.0
252.7
259.6
270.3
268.7
21.3 7.2
.2
22.0 9.7
2.2
1.2
21.8 2.6
22.5
.5 -.9
20.8 -1.6
1.0
22.5 6.1
.9
2.5
25.0 4.5
24.6 1.6
3.8
9
19.4 -2.2
21.3 5.2 -2^4
45.1
63.3
77.7
84.3
75. 3
21.6
39.3
53.3
58.8
47.5
23.5
24.1
24.5
25.5
27.7
73.2
72.3
75.5
79.3
80.2
43.5
41.7
43.2
44.5
43.6
29.7
30.6
32.2
34.8
36.6
293.3
311.1
320.4
336.2
330.8
360.4
368.2
375.4
367.6
394. 2
404.8
23.8
0.2 18.5
-!e
20.5
21.6
20.5
19.9
22.8
1.3 80.3 41.6 38.7
3.0
Seasonally adjusted annual rates
1958:
First quarter
Second quarter _ _
Third quarter. _ _
Fourth quarter _ _
391.6
394.6
403.1
414.3
269.0
271.2
274.8
279.4
34.9
34.7
35.0
37.6
131.5
132.6
134.8
135.8
102.6
103.8
105.0
106.0
45.1
45.1
48.1
54.6
31.0
30.1
30.7
32.1
20.4 -6.2
0.3
2
19.1 -4.1
.'2
18.7 -1.3
19.6 2.9 -1.1
77.2
78.5
79.9
81.5
43.2
44.4
44.9
45.3
34.0
34.1
35.0
36.1
(86)
(6)
(6)
()
1959:
First quarter
Second quarter _ _
Third quarter
Fourth quarter __
422.9
434.2
426.3
429.1
283.9
290.0
290.8
292.8
39.3
41.6
41.2
41.1
137.3
139.8
139.5
140.5
107.3
108.6
110.1
111.2
60.6
66.7
56.7
59.4
33.9
35.2
35.0
33.4
19.8 6.8 -2.7
21.5 10.1 -3.8
21.7 (7)
-1.7
22.2 3.8 -1.5
81.1
81.2
80.5
78.5
44.3
44.4
43.5
42.3
36.8
36.8
37.0
36.2
(6)
(•)
(66)
()
1960:
First quarter
Second quarter,^
Third quarter. _ _
Fourth quarter «_
440.5
442.2
438.0
437.3
294.8
298.3
296.9
299.1
41.8
41.9
40.2
41.3
141.1
143.2
142.3
142.4
112.0
113.3
114.4
115.4
66.2
62.8
58.6
54.7
34.0
33.8
33.6
33.6
22.4 9.8
24.2 4.8
.6
24.4
24.3 -3.2
-.1
.7
2.2
2.5
79.6
80.3
80.3
80.9
41.8
41.8
41.2
41.6
37.8
38.6
39.1
39.4
(66)
( 8)
()
(6)
1
For explanation of conversion of estimates in current prices to those in 1954 prices, see U. 8. Income ani
Output,
A Supplement to the Survey of Current Business, 1958. See Table C-5 for implicit price deflators.
2
For 1929-45, net exports of goods and services and net foreign investment have been equated, since foreign
net
transfers
by Government were negligible during that period.
3
Net of Government sales.
*8 Gross national product less compensation of general government employees.
Preliminary estimates by Council of Economic Advisers.
6
Not available.
7
Less than $50 million.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
TABLE C-5.—Implicit price deflators for gross national product, 1929-60
[Index numbers, 1954=100]
Personal consumption
expenditures
Gross
national
prodTotal
uct *
Period
Gross private domestic
investment 1
New construction
Dura- Nonble durable Services
goods goods
Total
Producers'
Residurable
dential Other equipnonment
farm
1929
57.4
61.6
62.0
57.7
66.8
41.7
41.8
41.6
52.5
1930
1931
1932
1933
1934
55.4
49.9
44.9
44.2
46.9
59.0
52.6
46.5
44.8
47.6
60.5
53.5
47.0
46.1
48.8
54.8
46.9
40.0
40.3
45.3
64.2
60.3
55.3
50.7
50.7
40.0
36.5
31.1
31.2
33.3
40.8
37.1
30.1
29.8
33.1
39.7
36.2
31.7
31.9
33.4
50.5
47.9
45.5
43.1
45.9
47.4
47.7
49.5
48.7
48.1
48.6
49.1
50.9
49.8
49.2
47.9
47.9
50.3
50.8
50.2
47.2
47.4
49.1
46.7
45.8
50.9
51.9
53.8
54.5
54.5
34.1
34.8
39.0
39.1
39.0
32.6
34.3
37.8
39.2
39.5
35.4
35.2
39.9
39.1
38.4
45.6
45.4
48.7
50.2
49.4
1940
1941
1942
1943
1944
48.9
52.9
59.6
64.9
66.5
49.7
53.1
59.5
65.0
68.6
50.7
54.8
64.2
70.3
78.7
46.4
50.5
58.8
65.8
69.5
54.8
56.8
59.8
62.8
65.5
40.1
43.4
47.6
53.0
56.3
40.9
44.6
47.7
51.4
56.2
39.1
42.2
47.6
54.0
56.3
50.6
54.0
58.5
58.4
59.3
1945
1946
1947
1948
1949
68.0
74.6
83.0
88.5
88.2
71.0
76.5
84.6
89.5
88.7
82.8
82.0
88.4
92.4
93.5
72.2
78.8
88.7
94.0
90.9
67.1
71.1
76.8
81.7
83.6
57.8
63.7
76.6
85.9
84.3
60.0
65.3
78.4
88.6
85.9
56.9
62.6
74.8
83.1
82.6
60.0
66.7
76.8
83.1
87.0
. ._
89.5
96.2
98.1
99.0
100.0
89.9
96.0
98.0
99.0
100.0
94.6
101.1
102.2
99.4
100.0
91.4
99.0
100.1
99.7
100.0
85.9
89.8
93.6
97.7
100.0
88.3
95.3
98.4
100.1
100.0
90.9
97.5
100.3
101.3
100.0
85.1
93.1
96.5
98.9
100.0
89.0
96.8
97.5
99.0
100.0
..
101.2
104.6
108.4
110.8
112.6
100.4
102.1
105.1
107.3
108.4
100.1
101.3
104.7
104.9
106.2
99.5
100.9
103.9
106.2
106.0
101.7
104.1
107.0
109.5
112.4
103.1
109.8
113.5
114.1
117.2
103.0
109.0
111.2
111.7
115.2
103.2
110.7
115.7
116.8
119.7
102.6
109.0
115.7
119.0
121.3
I9602
114.5
110.4
106.3
107.2
115.9
120.3
117.0
124.1
121.6
1958: First quarter
Second quarter
Third quarter
Fourth quarter
110.3
110.7
110.9
111.3
107.0
107.4
107.3
107.5
104.7
104.7
104.8
105.4
106.2
106.6
106.1
105.8
108.7
109.2
109.6
110.3
113.6
113.9
114.1
114.9
111.1
111.1
111.6
112.7
116.1
116.8
116.8
117.5
118.2
118.9
119.2
119.6
1959: First quarter
Second quarter
Third quarter
Fourth quarter
111.9
112. 4
112.9
113.3
107.8
108.1
108.7
109.2
105.8
106.6
106.8
105. 7
105.8
105.6
106.1
106.5
111.1
111.9
112.7
113.8
116.1
117.3
117.4
117.9
114.0
115.1
115.3
115.9
118.6
120.1
120.0
120.2
120.7
121.6
122.1
120.9
1960: First quarter
Second quarter ..
Third quarter 2
Fourth quarter
113.8
114.2
115.0
115. 1
109.7
110.3
110.6
111.0
105.8
106.4
106.3
106.5
106.7
107.2
107.3
107.6
114.9
115.5
116.1
116.8
120.0
120.4
120.5
120.3
117.2
117.2
117.0
116.8
123.4
124.2
124.6
124.1
121. 1
122.0
122.0
121.0
.
1935
1936
1937
1938
1939 -
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
.
_
.
--
---
.
_
See footnotes at end of table, p. 133.
132
TABLE C-5.—Implicit price deflators for gross national product, 1929-60—Continued
[Index numbers, 1954=100]
Exports and imports1of
goods and services
Government purchases of goods
and services
Period
Exports
Imports
Total
Federal
State and
local
63.1
57.3
45.8
44.5
46.1
55.0
43.2
36.2
35.2
43.0
48.9
39.7
32.3
29.3
33.8
44.9
42.7
39.4
40.3
42.9
41.8
41.7
38.2
38.3
43.2
45.5
43.0
39.7
41.1
42.8
44.7
46.0
48.9
46.5
46.9
36.0
36.9
41.1
38.0
38.6
43.4
44.0
45.1
44.5
44.2
43.7
46.9
47.3
46.1
46.8
43.3
42.2
43.8
43.4
42.7
51.2
56.1
64.9
68.1
73.3
40.9
43.0
48.9
51.3
53.3
45.2
51.9
59.6
64.3
63.4
47.0
55.1
61.4
65.6
64.3
43.9
46.2
49.8
52.7
54.6
1945
1946
1947...
1948
1949
75.3
80.8
93.4
98.6
92.7
57.4
65.5
79.7
86.3
82.0
63.2
69.4
76.4
82.0
85.1
63.9
73.0
80.8
84.4
88.0
57.4
63.0
71.5
79.3
81.7
1950
1951...
1952
1953
1954.
90.3
103.3
103.0
101.0
100.0
87.8
102.8
102.8
98.2
100.0
86.5
95.5
97.8
98.3
100.0
89.6
98.7
99.2
98.6
100.0
83.7
90.2
94.8
97.5
100.0
100.7
103.4
107.4
105.9
104.5
99.9
101.8
103.2
99.2
98.1
103.3
109.2
114.6
117.9
121.2
104.1
109.7
114.9
118.2
122.1
102.2
108.6
114.2
117.4
120.0
1929
1930
1931
1932
1933
1934
_
__
_
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
....
1955.
1956
1957
1958
19fi9...
-
I960'
105.4
99.9
124.0
l«5-8
122.1
1958: First quarter
Second quarter
Third quarter. _ _
Fourth quarter
107.1
106.3
105.0
105.1
100.4
99.6
98.8
98.1
116.7
117.1
118.6
119.2
117.1
116.8
119.4
119.8
116.2
117.4
117.6
118.4
105.1
104.4
104.0
104.6
97.4
97.5
97.7
99.9
119.7
120.2
121.9
122.8
120.3
120.9
123.3
124.1
119.0
119.5
120.2
121.3
105.6
104.9
105.6
105.6
99.9
99.9
99.9
122.4
122.7
125.4
125.6
123.7
123.6
128.0
127.9
120.9
121.6
122.7
123.2
1059: First quarter
Second quarter..
Third quarter
Fourth quarter
_
_
_
1960: First quarter
Second quarter
Third quarter
Fourth quarter *
__
_
1
Separate deflators are not available for total gross private domestic investment, change in business
inventories, and net exports of goods and services.
For explanation of conversion of estimates in current prices to those in 1954 prices, see U.S. Income and
Output, A'Supplement to the Survey of Current Business, 1958.
* Preliminary estimates by Council of Economic Advisers.
Source: Department of Commerce (except as noted).
576899 O—61-
-10
133
TABLE C-6.—Gross national product: Receipts and expenditures by major economic groups,
7929--60
[Billions of dollars]
Persons
Disposable
personal
income
Period
Business
PerPersonal sonal
con- saving
sump- or distion ex- saving
pendi(-)
tures
Gross
retained
earnings i
Gross
private
domestic
investment
International
For- Net exports of goods
Excess eign
Excess
and services 2
of re- net
of
ceipts transtransor in- fers by
fers or
vestNet
ExIm- net erment govern- exports ports ports ports
(-) ment 2
83.1
79.0
4.2
11.5
16.2
-4.7
(')
0.8
7.0
6.3
74.4
63.8
48.7
45.7
52.0
71.0
61.3
49.3
46.4
51.9
3.4
2.5
-.6
-.6
.1
8.8
5.2
2.7
2.6
4.9
10.3
5.5
.9
1.4
2.9
-1.5
-.3
1.8
1.2
2.0
0)2
()
(»)
(')
(>)
.7
.2
.2
.2
.4
5.4
3.6
2.5
2.4
3.0
4.8
3.4
2.3
2.3
2.5
-.7
-.2
-.2
-.2
-.4
1935
1936
1937
1938
1939
58.3
66.2
71.0
65.7
70.4
56.3
62.6
67.3
64.6
67.6
2.0
3.6
3.7
1.1
2.9
6.3
6.5
7.8
7.8
8.3
6.3
8.4
11.7
6.7
9.3
.1
-1.9
-4.0
1.2
-1.0
-.1
-.1
.1
1.1
.9
3.3
3.5
4.6
4.3
4.4
3.3
3.6
4.5
3.2
3.5
.1
.1
-.1
-1.1
-.9
1940
1941
1942
1943
1944
76.1
93.0
117.5
133.5
146.8
71.9
81.9
89.7
100.5
109.8
4.2
11.1
27.8
33.0
36.9
10.4
11.5
14.1
16.3
17.2
13.2
18.1
9.9
5.6
7.1
-2.8
-6.6
4.3
10.7
10.1
(»)
0)
(')
0)
(')
(')
0)
(»)
1.5
1.1
-.2
-2.2
-2.1
5.4
6.0
4.9
4.5
5.4
3.8
4.8
5.1
6.8
7.5
-1.5
-1.1
.2
2.2
2.1
150.4
160.6
170.1
189.3
189.7
121.7
147.1
165. 4
178.3
181.2
28.7
13.5
4.7
11.0
8.5
15.6
13.1
18.9
26.6
27.6
10.4
5.2
28.1 -15.1
31.5 -12.6
43.1 -16.5
33.0 -5.4
.1
1.6
3.2
-1.4
4.9
9.0
3.5
3.8
7.4
12.8
17.9
14.5
14.0
8.8
7.9
8.9
11.0
10.2
1.4
-4.6
-8.9
-1.9
-.5
207.7
.- 227.5
238.7
252.5
256.9
195.0
209.8
219.8
232.6
238.0
12.6
17.7
18.9
19.8
18.9
27.7
31.5
33.2
34.3
35.5
50.0
56.3
49.9
50.3
48.9
-22.3
-24.8
-16.6
-16.0
-13.4
2.8
2.1
1.5
1.6
1.4
.6
2.4
1.3
-.4
1.0
13.1
17.9
17.4
16.6
17.5
12.5
15.5
16.1
17.0
16.5
2.2
-.2
.2
2.0
.4
274.4
292.9
308.8
317.9
337.3
256.9
269.9
285.2
293.5
313.8
17.5
23.0
23.6
24.4
23.4
42.1
43.0
45.6
44.6
50.5
63.8
67.4
66.1
56.0
72.0
-21.8
-24.3
-20.5
-11.4
-21.6
1.5
1.5
1.5
1.3
1.5
1.1
2.9
4.9
1.2
-1.0
19.4
23.1
26.2
22.7
22.9
18.3
20.2
21.3
21.5
23.8
.4
-1.5
-3.5
.1
2.5
354.2
328.2
26.0
«52.3
72.7 «-20.4
1.6
2.7
26.5
23.8
-1.1
1920
1930
..
1931..
1932
1933
1934
~
1945
1946
1947
1948. .
1949
1950..
1951
1952
1953
1954..
1955
1956
1957
1958
1959
.
.
_.-
I960 4
%( )
2
0.3
-0.8
Seasonally adjusted annual rates
1958: First quarter. __
Second quarter.
Third quarter..
Fourth quarter.
311.4
314.0
321.9
324.9
287.7
291.2
294.8
300.2
23.7
22.8
27.1
24.7
42.0
43.6
43.7
48.6
52.4 -10.4
52.5 -8.9
55.8 -12.1
63.2 -14.6
1.2
1.3
1.2
1.6
1.7
1.3
1.6
.4
22.5
22.7
22.9
22.7
20.8
21.4
21.4
22.3
-0.5
(6)
1959: First quarter
Second quarter.
Third quarter..
Fourth quarter.
329.6
338.3
338.5
342.4
306.1
313.6
316.0
319.6
23.6
24.8
22.5
22.8
49.1
51.8
49.6
51.0
70.9
78.9
67.5
70.8
-21.8
-27.1
-17.9
-19.8
1.5
1.4
1.2
1.9
-1.0
-2.2
-.2
-.4
21.8
22.2
24.0
23.5
22.8
24.4
24.2
23.9
2.5
3.6
1.5
2.4
1960: First quarter. _ _
Second quarter.
Third quarter..
Fourth quarter4.
347.0
354.1
357.5
358.1
323.3
329.0
328.3
332.0
23.7
25.2
29.2
26.1
52.4
52.1
51.6
(7)
79.3 -26.9
75.5 -23.4
70.8 -19.2
65.8
(7)
1.6
1.7
1.4
1.7
1.2
2.0
3.7
4.0
25.2
26.4
27.3
27.3
23.9
24.4
23.5
23.3
.3
-.3
-2.3
-2,3
See footnotes at end of table, p. 135.
134
Ll
TABLE C-6.—Gross national product: Receipts and expenditures by major economic groups,
1929-60— Continued
[Billions of dollars]
Government
Receipts
Period
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
__
1951
1952 . .
1953
_.
1954
1955
1956
1957
1958
1959
I9604
_
. .
_.
Expenditures
Tax
and
nonNet
re- tax receipts ceipts
or accruals
Transfers,
interest,
and
sub- 3
sidies
11.3
9.5
8.9
10.8
6.4
9.5
6.4
8.9
6.7
9.3
7.4
10.5
8.0
11.4
8.9
12.9
12.3
15.4
11.2
15.0
11.2
15.4
13.3
17.7
21.0
25.0
28.3
32.6
44.4
49.2
44.6
51.2
43.1
53.2
34.6
51.1
41.6
57.1
42.8
59.2
37.0
56.4
47.2
69.3
66.6
85.5
72.2
90.6
75.7
94.9
68.5
90.0
78.4 101.4
84.2 109.5
87.5 116.3
82.1 115.2
94.6 129.1
599.9 5 137. 3
1.7
1.8
3.1
2.5
2.6
3.1
3.4
4.1
3.1
3.8
4.2
4.4
4.0
4.3
4.8
6.5
10.1
16.5
15.4
16.5
19.4
22.1
18.9
18.4
19.2
21.5
23.0
25.3
28.7
33.1
34.5
37.4
PurTranschases Total fers,
of
interexgoods pendiest,
and tures and
servsub- 3
sidies
ices
8.5
9.2
9.2
8.1
8.0
9.8
10.0
11.8
11.7
12.8
13.3
14.1
24.8
59.7
88.6
96.5
82.9
30.5
28.4
34.5
40.2
39.0
60.5
76.0
82.8
75.3
75.6
79.0
86.5
93.5
97.1
99.6
10.2
11.0
12.3
10.6
10.7
12.8
13.3
15.9
14.8
16.6
17.5
18.5
28.8
64.0
93.4
103. 1
92.9
47.0
43.8
51.0
59.5
61.1
79.4
94.4
102.0
96.7
98.6
104.3
115.3
126.6
131.6
137.0
1.7
1.8
3.1
2.5
2.6
3.1
3.4
4.1
3.1
3.8
4.2
4.4
4.0
4.3
4.8
6.5
10.1
16.5
15.4
16.5
19.4
22.1
18.9
18.4
19.2
21.5
23.0
25.3
28.7
33.1
34.5
37.4
Surplus or Total
deficit income
(-) on or reincome ceipts
and
product
account
Gross
Statistical
discrepancy
0.3
1.0 104.2
92.1 -1.0
-.3
75.4
.8
-2.8
57.7
.8
-1.7
.9
-1.4
55.0
.7
64.2
-2.4
-.2
72.7
-2.0
81.6
1.1
-3.0
-.2
91.0
.6
.5
84.8
-1.6
89.9
1.2
-2.1
.8
99.8
-.7
.4
125.4
-3.8
-.8
-31.4 160.0
-44.2 194.2 -1.7
2.8
-51.9
208.6
4.5
-39.7 209.1
2.1
208.6
4.1
3.5
13.3 230.7
-.8
8.2 260.3
.5
-3.1 257.5
-.7
8.2 285.3
1.2
6.1 327.7
1.4
-3.9 345.6
1.3
-7.1 364.1
.9
-6.7 362.3
1.0
2.9 396.5
5.2 421.6 -2.4
-.6
1.0 443.4
445.9 -1.7
-11.4
-2.5 483.9 -1.8
.3 5508.0 5-4.8
na-
tional
prod-
uct
or ex-
penditure
104. 4k
91.1
76.3
58.5
56.0
65.0
72.5
82.7
90.8
85.2
91.1
100.6
125.8
159.1
192.5
211.4
213.6
210.7
234.3
259.4
258.1
284.6
329.0
347.0
365.4
363.1
397.5
419.2
442.8
444.2
482.1
503.2
Seasonally adjusted annual rates
1958: First quarter
Second quarter
Third quarter
Fourth quarter
1959: First quarter.
_.
Second quarter
Third quarter
Fourth quarter
1960: First quarter
Second quarter
Third quarter 4 _ _ _
Fourth quarter
79.8
79.2
82.3
86.6
92.6
97.3
94.9
93.6
101.4
100.8
98.9
(7)
111.0
112.6
116.3
120.9
126.3
131.3
129.0
129.7
137.3
137.9
136.3
(7)
31.2
33.4
34.1
34.4
33.8
34.0
34.1
36.1
35.9
37.0
37.4
39.1
90.1
91.9
94.8
97.1
97.1
97.7
98.1
96.4
97.5
98.6
100.7
101.7
121.3
125.3
128.9
131.6
130.8
131.6
132.2
132.4
133. 4
135.6
138.1
140.7
31.2
33.4
34.1
34.4
33.8
34.0
34.1
36.1
35.9
37.0
37.4
39.1
-10.3
-12.7
-12.5
-10.6
-4.5
-.4
-3.2
-2.8
3.9
2.3
-1.8
(7)
434.5
438.0
449.0
461.5
472.9
488.8
484.3
488.9
502.3
508.7
509.4
(7)
-2.5
-1.3
-2.1n
.1
-1.0
-3.0
-2.6
-1.1
-3.9
-5.8
(7)
432.0
436.8
447.0
461.0
473.1
487.9
481.4
486.4
501.3
505.0
503.5
503.5
1 Undistributed corporate profits, corporate inventory valuation adjustment, capital consumption
allowances,
and excess of wage accruals over disbursements.
2
For 1929-45, foreign net transfers by Government were negligible; therefore, for that period, net export?
of 3goods and services and net foreign investment have been equated.
Government transfer payments to persons, foreign net transfers by Government, net interest pal J by
government, and subsidies less current surplus of government enterprises.
•5 Preliminary estimates by Council of Economic Advisers.
Data for corporate profits are approximations for the year as a whole; they do not derive from, nor imply,
specific estimates for the quarters. All other data incorporating or derived from these figures are correspondingly approximate.
• Less than $50 million.
7 Not available.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
135
TABLE C-7.—Personal consumption expenditures, 7929-60
[Billions of dollars]
Durable goods
Total
personal
consumption Toextal
penditures
Period
Nondurable goods
.2
1
1
0
-da ll
03
s
•§!
ll <a
TJ
To- 3?
<S 3
££
1 32
j
Services
tal
I0
gja
fc
1*
««
•§2
£
S
I
X3
J2
0
|
3
•d
9
o>
Total
1
3 1
O 0
1
|
3
|
I
§
» w £ I0
1929
79.0
9.2 3.2 4.8 1.2 37.7 19.5 9.4 1.8 7.0 32.1 11.4 4.0 2.6 14.0
1930
1931
1932
1933
1934
71.0
61.3
49.3
46.4
51.9
7.2
5.5
3.6
3.5
4.2
2.2
1.6
.9
1.1
1.4
3.9 .1.1 34.0 18.0 8.0 1.7 6.3 29.8 11.0 3.9
3.1 .9 28.9 14.7 6.9 1.5 5.7 26.9 10.3 3.5
2.1 .6 22.8 11.4 5.1 .5 4.8 22.9 9.0 3.0
1.9 .5 22.3 10.9 4.6 .5 5.3 20.7 7.9 2.8
2.2 .6 26.7 12.2 5.7 .6 7.2 21.0 7.6 3.0
2.2 12.7
1.9 11.2
1.6 9.3
1.5 8.5
1.6 8.8
1935
1936
1937
1938
1939
56.3
62.6
67.3
64.6
67.6
5.1
6.3
6.9
5.7
6.7
1.9
2.3
2.4
1.6
2.2
2.6 .7 29.3 13.6
3.2 .8 32.8 15.2
3.6 1.0 35.2 16.4
3.1 .9 34.0 15.6
3.5 1.0 35.1 15.7
1940
1941
1942
1943
1944
71.9
81.9
89.7
100.5
109.8
_
1945
1946
1947
1948
1949
7.8 2.7 3.9 1.1 37.2 16.7
9.7 3.4 4.9 1.4 43.2 19.4
7.0 .7 4.7 1.6 51.3 23.7
6.6 .8 3.9 1.9 59.3 27.8
6.8 .8 3.8 2.2 65.4 30.6
6.0 .7 7.9 21.9
6.6 .9 9.1 23.5
6.8 2.1 9.8 25.1
6.8 2.1 9.5 25.0
7.1 2.2 10.1 25.8
7.6
7.9
8.4
8.8
9.0
3.2
3.4
3.7
3.6
3.8
1.7 9.4
1.9 10.3
2.0 11.1
1.9 10.7
2.0 11.0
7.4
8.8
11.0
13.4
14.6
2.3 10.8
2.6 12.3
2.1 14.5
1.3 16.7
1.4 18.7
26.9 9.3
29.0 10.0
31.5 10.8
34.7 11.3
37.7 11.9
4.0
4.3
4.8
5.2
5.9
2.1 11.4
2.4 12.3
2.7 13.1
3.4 14.7
3.7 16.3
121.7
147.1
165.4
178.3
181.2
8.1
15.9
20.6
22.7
24.6
1.0
3.9
6.3
7.4
9.8
4.6
8.7
11.0
11.9
11.5
2.5
3.3
3.4
3.4
3.3
73.2 34.1 16.5
84.8 40.7 18.2
93.4 45.8 18.8
98.7 48.2 20.1
96.6 46.4 19.3
1.8 20.8
3.0 22.9
3.6 25.2
4.4 26.0
5.0 25.9
40.4 12.4
46.4 13.8
51.4 15.6
56.9 17.6
60.0 19.3
6.4
6.7
7.4
7.9
8.4
4.0 17.5
5.1 20.8
5.5 23.0
6.0 25.4
6.1 26.2
1950
1951
1952
1953
1954
195.0
209.8
219.8
232.6
238.0
30.4 13.0
29.5 11.6
29.1 11.0
32.9 14.0
32.4 13.4
14.0
14.2
14.1
14.7
14.8
3.4 99.8 47.4 19.6
3.7 110.1 53.4 21.1
3.9 115.1 55.8 21.9
4.1 118.0 56.6 21.9
4.3 119.3 57.7 21.9
5.4 27.4
6.0 29.5
6.7 30.7
7.5 31.8
8.0 31.7
64.9 21.2 9.3
70.2 23.2 10.1
75.6 25.4 10.8
81.8 27.5 11.7
86.3 29.1 12.1
6.3 28.1
6.9 29.9
7.4 32.0
8.0 34.6
7.9 37.1
1955
1956
1957
1958
1959
256.9
269.9
285.2
293.5
313.8
39.6 18.3 16.6
38.5 15.8 17.4
40.4 17.1 17.4
37.3 13.9 17.4
43.4 17.9 18.8
4.8 124.8 59.2 23.4 8.8 33.4 92.5 30.7 13.5
5.3 131.4 62.2 24.5 9.6 35.2 100.0 32.7 14.8
5.8 137.7 65.2 25.4 10.4 36.7 107.1 35.2 15.8
6.0 142.0 67.6 25.7 10.6 38.1 114.2 38.0 16.9
6.6 147.6 68.6 27.4 11.1 40.5 122.8 40.5 18.0
8.3 39.9
8.6 43.8
9.0 47.0
9.2 50.2
9.9 54.5
I9604
—
_.
328.2 43.9 18.4 18.6 6.9 152.5 70.9 27.9 11.6 42.0 131.8 42.8 19.2 10.5 59.3
--
Seasonally adjusted annual rates
1958:
First quarter
Second quarter
Third quarter
Fourth quarter
1959:
First quarter
Second quarter
Third quarter
Fourth quarter
1960:
First quarter
Second quarter
Third quarter
Fourth quarter *
-
287.7
291.2
294.8
300.2
36.5 13.5 17.2
36.4 13.5 17.0
36.7 13.2 17.6
39.6 15.7 17.8
5.9 139.7 66.9 25.0
5.9 141.4 67.9 25.4
6.0 143.0 67.6 26.2
6.1 143.8 67.9 26.2
306.1
313.6
316.0
319.6
41.6 17.2 18.1
44.4 18.9 19.0
44.0 18.2 19.1
43.5 17.4 19.2
6.3 145.3 68.1 26.5 10.9 39.7 119.2 39.7 17.6 9.5 52.4
6.6 147.7 68.6 27.8 11.1 40.3 121.4 40.2 17.6 9.7 53.9
6.7 148.0 68.4 27.6 11.2 40.8 124.1 40.8 18.1 10.1 55.1
6.8 149.6 69.3 27.8 11.3 41.2 126.6 41.3 18.5 10.1 56.6
323.3
329.0
328.3
332.0
44.2 18.5 18.9
44.5 18.9 18.7
42.7 17.5 18.3
44.0 18.5 18.5
6.7 150.5 69.7 27.8 11.4 41.6 128.6 41.9 18.9 10.3 57.5
6.9 153.5 71.3 28.3 11.7 42.2 130.9 42.5 19.1 10.5 58.8
6.9 152.7 70.8 28.2 11.7 42.0 132.9 43.1 19.3 10.5 60.0
6.9 153.3 71.8 27.5 11.7 42.3 134.8 43.7 19.5 10.6 61.0
1
2
3
Quarterly data are estimates by Council of Economic Advisers.
Includes standard clothing issued to military personnel.
Includes imputed rental value of owner-occupied dwellings.
* Preliminary estimates by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
136
10.3 37.3 111.5 36.9 16.5
10.5 37.7 113.4 37.6 16.8
10.8 38.4 115.1 38.4 17.0
10.8 38.8 116.9 39.1 17.2
9.0 49.1
9.1 49.9
9.2 50.5
9.4 51.2
TABLE C-8.—Gross private domestic investment, 1929-60
[Billions of dollars]
Total Nonfarm producers'
Farm equipment
gross plant and equipment and construction
private
domestic
ConConinvest- Total i EquipTotal * Equipment strucment 2 struction 8
ment
tion
Period
Residential
construction
(nonfarm)
Net change in
Other business
inventories
private
construc- Total Non-9 Farm
farm
tion*
1929
16.2
9.5
5.2
4.2
0.9
0.6
0.3
3.6
0.5
1.7
1.8
1930
1931
1932
1933 .
1934
10.3
5.5
.9
1.4
2.9
7.4
4.5
2.5
2.3
3.0
4.0
2.6
1.4
1.5
2.1
3.4
1.9
1.0
.8
.9
.7
.4
.2
.2
.3
.5
.3
.1
.1
.3
.2
.1
2.1
1.6
.6
.5
.6
.5
.4
.2
.1
.1
— 4
-1.3
-2.6
-1.6
-1.1
— l
-1.6
-2.6
-1.4
.2
-L3
6.3
8.4
11.7
6.7
9.3
3.8
5.1
6.6
4.7
5.3
27
3.6
4.5
3.1
3.7
1.1
1.4
2.1
1.6
1.6
.5
.7
.8
.7
.7
.4
.5
.6
.5
.5
.2
.2
.2
.2
10
1.6
1.9
2.0
2.7
.1
.1
.2
.2
.2
9
1.0
2.2
-.9
.4
4
2.1
1.7
-1.0
.3
5
-1.1
.5
.1
.1
13.2
18.1
9.9
5.6
7.1
7.0
8.7
5.3
4.6
6.3
4.9
6.1
3.7
3.5
47
2.0
2.6
1.6
1.1
1.5
.8
1.1
.9
.8
10
.6
.8
.7
.6
.7
.2
.3
.3
.3
3
3.0
3.5
1.7
.9
8
2.2
.2
.2
4.5
.1 1.8
-.8
(7)
. l —1 0
1.9
4.0
.7
-.6
— 6
.3
.5
1.2
-.2
— 4
10.4
28.1
31.5
43.1
33.0
9.3
14.8
20.7
23.3
21.0
6.9
9.8
14.9
16.4
14.4
2.3
5.0
5.8
6.9
6.6
1.0
1.8
3.2
.1
.4
.7
.9
1.8
2.6
2.9
.3
.9
1.4
1.5
1.5
1.1
4.8
7.5
10.1
9.6
.1 -1.1
6.4
.4
.5 -.5
.9
4.7
1.1 —3 1
-.6
6.4
1.3
3.0
-2.2
-.5
(7)
-1.8
1.7
-.9
50.0
56.3
49.9
50.3
48.9
23.4
27.4
28.1
30.2
29.5
16.2
18.4
18.6
19.5
18.5
7.2
9.1
9.5
10.7
11.0
.4
.8
.6
.5
.0
2.7
2.9
2.7
2.8
2.3
1.6
1.8
1.9
1.7
1.6
14.1
12.5
12.8
13.8
15.4
6.8
1.3
1.4 10.2
1.3 3.1
.4
1.4
1.7 -1.6
6.0
9.1
2.1
1.1
-2.1
.8
1.2
.9
-.6
.6
1955
1956
1957
1958
1959
63.8
67.4
66.1
56.0
72.0
33.4
39.4
41.4
33.7
36.7
20.6
25.0
26.2
20.3
23.0
12.8
14.4
15.2
13.4
13.6
4.1
3.8
3.9
4.3
4.6
2.5
2.2
2.3
2.8
2.8
1.6
1.6
1.6
1.5
1.8
18.7
17.7
17.0
18.0
22.3
5.8
1.8
4.7
1.9
1.6
2.2
2.5 -2.5
5.9
2.6
5.5
5.1
.8
-3.6
5.4
.3
-.4
.8
1.0
.5
I9608 --„
72.7
41.3
26.3
15.1
4.1
2.6
1.5
21.1
2.8
3.3
3.0
.4
1935
1936
1937
1938 .
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
- .
.
..
.
._
.. __
(7)
(0
.1
-0.2
— 3
.3
(0
Seasonally adjusted annual rates
1958:
First quarter
Second quarter.
Third quarter...
Fourth quarter.
52.4
52.5
55.8
63.2
35.8
33.4
32.5
33.2
21.5
19.9
19.5
20.3
14.3
13.5
13.0
12.9
4.0
4.2
4.3
4.7
2.5
2.7
2.8
3.2
1.5
1.5
1.5
1.5
17.1
16.9
18.0
19.9
2.3 -6.9
2.4 -4.5
2.5 -1.6
2.5 2.9
-8.0
-5.7
-2.6
2.0
1.1
1.2
1.0
.8
1959:
First quarter
Second quarter.
Third quarter..
Fourth quarter.
70.9
78.9
67.5
70.8
34.4
36.7
37.7
37.7
21.0
23.2
23.7
24.1
13.4
13.5
14.0
13.6
4.5
4.6
4.6
4.6
2.9
2.9
2.8
2.7
1.6
1.7
1.8
1.9
21.9
23.5
22.6
21.3
2.5
2.5
2.6
2.6
7.6
11.5
-.1
4.7
6.9
11.0
-.5
4.3
.7
.5
.5
.4
1960:
First quarter....
Second quarter.
Third quarter..
Fourth quarter «_
79.3
75.5
70.8
65.8
39.7
41.9
42.3
42.1
24.7
26.9
27.1
26.6
15.0
15.0
15.2
15.5
4.0
4.2
4.1
4.2
2.4
2.6
2.6
2.8
1.6
1.6
1.5
1.4
21.4
21.3
21.1
20.7
2.8 11.4
5.3
2.8
.6
2.8
2.8 -4.0
11.0
5.0
.3
-4.4
.4
.3
.3
.4
1
Items for nonfarm producers' plant and equipment are not comparable with those shown in Table C-30
principally because the latter exclude equipment and construction outlays charged to current expense and
also
investment by nonprofit organizations and professional persons.
2
Total producers' durable equipment less farm machinery and equipment and farmers' purchases of
tractors and business motor vehicles.
3 Industrial buildings, public utilities, gas- and oil-well drilling, warehouses, office and loft buildings,
stores, restaurants, garages, miscellaneous nonresidential construction, and all other private construction.
< Farm construction (residential and nonresidential) plus farm machinery and equipment and farmers'
purchases
of tractors and business motor vehicles. (See footnote 2.)
5
Includes religious, educational, social and recreational, and hospital and institutional.
8
After
inventory
valuation adjustment.
7
Less than $50 million.
« Preliminary estimates by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
137
TABLE G-9.—National income by type of income, 1929-60
[Billions of dollars]
Total
national
income1
Compensation
of employees 2
Business and proCorporate profits
fessional income
and inventory
and inventory
valuation
valuation
adjustment
In- Rentadjustment
come al inof
InIn- Net
Income
income ven- farm
of
Cor- venterest
pro- perof
tory prietory
porate
unin- valu- tors 3 sons Total profits valuTotal corpoation
before4 ation
adrated adtaxes justenter- justprises ment
ment
1929
87.8
1930
75.7
1931
59.7
1932 .
42.5
1933...
.
40.2
1934
49.0
1935
57.1
1936
64.9
1937
73 6
1938.
67.6
1939...
...
72.8
1940...
81.6
1941
104.7
1942
137.7
1943.. _
. . ..
170.3
1944
182. 6
1945
181.2
1946
...
180.9
1947
198.2
1948
223.5
1949
..... .. 217.7
1950
241.9
1951
279.3
1952
292.2
1953
305. 6
1954
. . . .... 301.8
1955
330.2
1956
350.8
1957
366.9
1958. .- ._ _
367.7
1959
399.6
7
1960S
418. 4
51.1
46.8
39.7
31.1
29.5
34. 3
37.3
42.9
47 9
45.0
48.1
52.1
64.8
85.3
109.6
121.3
123.2
117.7
128.8
141.0
140.8
154.2
180.3
195.0
208.8
207.6
223.9
242.5
255.5
257.0
277.8
294.4
8.8
7.4
5.6
3.4
3.2
4.6
5.4
6.5
7 1
6.8
7.3
8.4
10.9
13.9
16.8
18.0
19.0
21.3
19.9
22.4
22.7
23.5
26.0
26.9
27.4
27.8
30.4
32.1
32.7
32.3
34.7
35.9
Period
0.1
8.6
6.7
.8
.6
5.0
3.1
.3
3,7 -.5
4.6 -.1
5.4
6.6 -.1
7 1
.2
6.6
7.5 -.2
8.5
11.5 -.6
14.3 -.4
17.0 -.2
18.1 -.1
19.1 -.1
23.0 -1.7
21.4 -1.5
22.8 -.4
22.2
.5
24.6 -1.1
26.3 -.3
26. 7
.2
2
27.6
27.8
30.6 -.2
32.6 -.5
33.0 -.3
32.4 -.1
34.8 -.1
36.0 -.1
6.0
4.1
3.2
1.9
2.4
2.4
5.0
4.0
5 6
4.3
4.3
4.6
6.5
10.0
11.4
11.5
11.8
15.3
15.5
17.8
12.9
14.0
16.3
15.3
13.3
12.7
11.8
11.6
11.8
14.0
11.8
12.0
5.4 10.1
6.6
4.8
1.6
3.8
2.7 -2.0
2.0 -2.0
1.1
1.7
2.9
1.7
5.0
1.8
6.2
2.1
4.3
2.6
5.7
2.7
9.1
2.9
14.5
3.5
4.5 19.7
5.1 23.8
5.4 23.0
5.6 18.4
6.2 17.3
6.5 23.6
7.3 30.8
8.3 28.2
9.0 35.7
9.4 41.0
10.2 37.7
10.5 37.3
10.9 33.7
10.7 43.1
10.9 42.0
11.9 41.7
12.2 37.4
12.4 46.6
7
12.5 45.0
9.6
0.5
3.3
-.8
-3.0
.2
1.7
3.1
5.7
6.2
3.3
6.4
9.3
17.0
20.9
24.6
23.3
19.0
22.6
29.5
33.0
26.4
40.6
42.2
36.7
38.3
34.1
44.9
44.7
43.2
37.7
47.0
7
45.0
3.3
2.4
1.0
-2.1
-.6
-.2
-.7
1.0
-.7
_ 2
-2! 5
-1.2
-.8
-.3
-.6
-5.3
-5.9
-2.2
1.9
-5.0
-1.2
1.0
-1.0
-.3
-1.7
-2.7
-1.5
-.2
-.5
6.4
6.0
5.8
5.4
5.0
4.9
4.8
4.7
4.7
4.6
4.6
4.5
4.5
4.3
3.7
3.3
3.2
3.1
3.8
4.2
4.8
5.5
6.3
7.1
8.2
9.1
10.4
11.7
13.4
14.7
16.4
18.7
Seasonally adjusted annual rates
1958: First Quarter
14.1
32.8 -0.2
357.6 252. 5 31.5 31.6 -0.1 14.7 12.1 32.6
Second quarter
360.4 253.4 32.0 32.1 -.1 13.9 12.1 34.7
14.4
34.4
.3
Third quarter
.1 14.0 12.2 38.5
14.8
370.8 258.8 32.6 32.5
38.8 -.2
Fourth quarter
15.4
381.9 263.4 33.3 33.4 -.1 13.5 12.2 44.0
44.9 -.9
1959: First quarter
46.4 -.9
15.9
390.9 270.4 33.8 33.9 -.1 13.0 12.3 45.5
Second quarter
405.4 279.7 34.8 35.2 -.4 12.0 12.4 50.4
16.2
51.7 -1.3
Third quarter
399.4 279.5 35.0 35.2 -.2 11.1 12.4 44.9
45.3 -.4
16.5
Fourth quarter
16.9
402.8 281.6 35.1 35.0
.1 11.2 12.5 45.5
44.8
.7
1960: First quarter
414.4 290.2 35.4 35.7 -.3 10.6 12.5 48.0
48.8 -.8
17.8
Second quarter
419.4 295.0 36.0 36.0
12.1 12.5 45.3
45.7 -.4
18.5
Third quarter 6
'.1 12.2 12.5 42.2
.7
19.1
419.3 297.2 36.1 36.0
41.5
(8)
Fourth quarter _ _ - . _ (9)
19.4
295.2 35.9 36.0 -.1 12.8 12.5
(s)
.5
1
National income is the total net income earned in production. It differs from gross national product
mainly in that it excludes depreciation charges and other allowances for business and institutional consumption
of durable capital goods, and indirect business taxes. See Table C-10.
2
Wages and salaries and supplements to waees and salaries (employer contributions for social insurance;
employer contributions to private pension, health, and welfare funds; compensation for injuries; directors'
fees;
pay of the military reserve; and a few other minor items).
3
Excludes income resulting from net reductions of farm inventories and gives credit in computing
income to net additions to farm inventories during the period. Data for 1929-45 differ from those shown in
Table C-65 because of revisions by the Department of Agriculture not yet incorporated into the national
income
accounts.
4
See Table C-57 for corporate tax liability (Federal and State income and excess profits taxes) and
corporate
profits after taxes.
8
Less than $50 million.
«Preliminary
estimates by Council of Economic Advisers.
v
7
Data for corporate profits are approximations for the year as a whole; they do not derive from, nor imply,
specific estimates for the quarters. All other data incorporating or derived from these figures are correspondingly
approximate.
8
Not available.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
138
TABLE G-10.—Relation of gross national product and national income, 1929-60
[Billions of dollars]
Less: Capital consumption allowances
Plus:
Less:
Subsidies
Equals:
Qross
less
Net current
nana- surplus Indirecttaxbusiness Busitional
tional of govness
prodDepretransuct Total ciation Other i prodernuct
fer
charges
State
ment
payand ments
enter- Total Federal local
prises
Period
Equals:
StaNatisti- tional
cal income
discrepancy
1929 ._
104.4
8.6
7.7
0.9
95.8
-0.1
7.0
1.2
5.8
0.6
0.3
87.8
1930
1931 _.
1932
1933
1934 „
91.1
76.3
58.5
56.0
65.0
8.5
8.2
7.6
7.2
7.1
7.7
7.6
7.0
6.7
6.6
.8
.6
.6
.5
.5
82.6
68.1
50.9
48.8
57.9
-.1
7.2
6.9
6.8
7.1
7.8
1.0
.9
.9
1.6
2.2
6.1
6.0
5.8
5.4
5.6
.5
.6
.7
.7
.6
-1.0
.8
.8
.9
.7
75.7
59.7
42.5
40.2
49.0
1935
1936. .
1937
1938
1939
72.5
82.7
90.8
85.2
91.1
7.2
7.5
7.7
7.8
7.8
6.7
6.7
6.9
6.9
7.1
.6
.8
.8
.8
.7
65.3
75.2
83.0
77.4
83.3
.1
.2
.5
8.2
8.7
9.2
9.2
9.4
2.2
2.3
2.4
2.2
2.3
6.0
6.4
6.8
6.9
7.0
.6
.6
.6
.4
.5
-.2
1.1
-.2
.5
1.2
57.1
64.9
73.6
67.6
72.8
100.6 8.1
125.8 9.0
_ 159.1 10.2
192.5 10.9
211.4 12.0
7.3
8.1
9.2
9.9
10.8
.8
1.0
1.0
1.0
1.2
92.5
116.8
149.0
181.6
199.4
.4
.1
.2
.2
.7
10.0
11.3
11.8
12.7
14.1
2.6
3.6
4.0
4.9
6.2
7.4
7.7
7.7
7.8
8.0
.4
.5
.5
.5
.5
.8
.4
-.8
-1.7
2.8
81.6
104.7
137.7
170.3
182.6
..
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
_..
. _
.--
(2)
(2)
(2)
(2)
.3
.4
213.6
210.7
234.3
259.4
258.1
12.5
10.7
13.0
15.5
17.3
11.2
9.0
11.1
13.1
15.1
1.3
1.7
2.0
2.4
2.2
201.0
200.0
221.3
244.0
240.8
.8
.9
-.2
-.2
-.2
15.5
17.3
18.6
20.4
21.6
7.1
7.9
7.9
8.1
8.2
8.4
9.4
10.8
12.3
13.5
.5
.6
.7
.7
.8
4.5
2.1
3.5
.5
181.2
180.9
198.2
223.5
217.7
284.6
-.. 329.0
347.0
365.4
363.1
19.1
22.0
24.0
26.5
28.8
16.5
18.8
20.9
23.1
25.2
2.6
3.2
3.1
3.5
3.6
265.5
307.0
323.0
338.9
334.3
.2
.2
2
-.'4
2
23.7
25.6
28.1
30.2
30.2
9.0
9.5
10.5
11.2
10.1
14.7
16.1
17.6
19.0
20.1
.8
1.0
1.2
1.4
1.3
-.7
1.2
1.4
1.3
.9
241.9
279.3
292.2
305.6
301.8
397.5
419.2
442.8
444.2
482.1
32.0
34.4
37.4
38.1
40.5
27.9
30.5
33.4
35.1
37.2
4.0
3.9
4.0
3.1
3.3
365.5
384.8
405.3
406.1
441.6
.9
1.0
1.1
.6
32.9
35.7
38.2
39.4
42.6
11.0
11.6
12.2
11.9
12.9
21.8
24.1
26.0
27.5
29.6
1.5
1.6
1.8
1.8
1.8
1.0
-2.4
-.6
-1.7
-1.8
330.2
350.8
366.9
367.7
399.6
503. 2 43.2
39.6
3.6
460.0
.5
45.1
13.8
31.3
1.8 <-4.8 < 418. 4
.
I9603...
(2)
o
Seasonally adjusted annual rates
1958:
First quarter
432.0
Secon d quarter _ _ 436.8
Third quarter
447.0
Fourth quarter _ . 461.0
37.7
37.9
38.2
38.7
8
8
(5)
(•)
(«)
<•)
394.3
398.9
408.8
422.2
1.0
1.2
1.2
1.2
38.4
39.2
39.4
40.4
11.7
12.0
11.7
12.1
26.7
27.2
27.7
28.3
1.8
1.8
1.8
1.8
-2.5
-1.3
-2.1
-.7
357.6
360.4
370.8
381.9
1959:
First quarter
Second quarter _ Third quarter...
Fourth quarter..
473.1
487.9
481.4
486.4
39.5
40.2
40.7
41.4
(5)
(8)
(•)
(•)
0)
5
433.6
447.7
440.7
445.0
.8
.7
.5
.5
41.5
42.2
43.0
43.5
12.6
12.8
13.1
13.3
28.9
29.4
29.9
30.2
1.8
1.8
1.8
1.8
.1
-1.0
-3.0
-2.6
390.9
405.4
399.4
402.8
1960:
First quarter
Second quarter _ _
Third quarter 3
Fourth quarter .
501.3
505.0
503.5
503.5
42.2
43.0
43.6
44.1
(•)5
( 5)
()
(•)
459.1
462.0
460.0
459.3
.5
.6
.5
.5
44.4
45.3
45.1
45.6
13.6
14.1
13.8
13.9
30.8
31.2
31.4
31.7
1.8
1.8
1.8
1.8
-1.1
-3.9
-5.8
(5)
414.4
419.4
419.3
(5)
()
(5s)
()
(5)
(5)
(•)
(•>
1
Accidental damage to fixed capital and capital outlays charged to current account.
2 Less than $50 million.
* Preliminary estimates by Council of Economic Advisers.
4
Data for corporate profits are approximations for the year as a whole; they do not derive from, nor imply,
specific estimates for the quarters. All other data incorporating or derived from these figures are correspondingly
approximate.
8
Not available.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
139
TABLE C—11.—Relation of national income and personal income, 1929-60
[Billions of dollars]
Less:
Plus:
CorpoExcess
rate
of
profits Contri- wage
National and
inbutions
acincome
venfor
tory
social cruals
over
valu- insurdisation
ance burseadjustments
ment
Period
Equals:
Government
transfer
payments
to
persons
Net
interest
paid
by
government
Dividends
Business
transfer
payments
Personal
income
1929
87.8
10.1
0.2
0.9
1.0
5.8
0.6
85.8
1930
1931
1932
1933
1934
75.7
59.7
42.5
40.2
49.0
6.6
1.6
-2.0
-2.0
1.1
.3
.3
.3
.3
.3
1.0
2.1
1.4
1.5
1.6
1.0
.1
.1
.2
.2
5.5
4.1
2.6
2.1
2.6
.5
.6
.7
.7
.6
76.9
65.7
50.1
47.2
53.6
57.1
64.9
73.6
67.6
72.8
2.9
5.0
6.2
4.3
5.7
.3
.6
1.8
2.0
2.1
1.8
2.9
1.9
2.4
2.5
.1
.1
.2
.2
.2
2.9
4.5
4.7
3.2
3.8
.6
.6
.6
.4
.5
60.2
68.5
73.9
68.6
72.9
1940
1941 _ _.
1942
1943
1944
81.6
104.7
137.7
170.3
182.6
9.1
14.5
19.7
23.8
23.0
2.3
2.8
3.5
4.5
5.2
2.7
2.6
2.6
2.5
3.1
.3
.3
.5
2.1
2.8
4.0
4.5
4.3
4.5
4.7
.4
.5
^5
.5
.5
78.7
96.3
123. 5
151.4
165.7
1945
1946
1947
1948
1949
181.2
180.9
198.2
223.5
217.7
18.4
17.3
23.6
30.8
28.2
6.1
6.0
5.7
5.2
5.7
5.6
10.9
11.1
10.5
11.6
3.7
4.5
4.4
4.5
4.7
4.7
5.8
6.5
7.2
7.5
.5
.6
.7
.7
.8
171.2
179.3
191.6
210.4
208.3
241.9
279.3
292.2
305.6
301.8
35.7
41.0
37.7
37.3
33.7
6.9
14.3
11.6
12.0
12.9
15.0
4.8
5.0
5.0
5.2
5.4
9.2
9.0
9.0
9.2
9.8
.8
1.0
1.2
1.4
1.3
228.5
256.7
273.1
288.3
289.8
1955
1956
1957
1958
1959
330.2
350.8
366.9
367.7
399.6
43.1
42.0
41.7
37.4
46.6
11.0
12.6
14.5
14.8
17.3
16.0
17.2
20.1
24.5
25.2
5.4
5.7
6.2
6.2
7.1
11.2
12.1
12.6
12.4
13.4
1.5
1.6
1.8
1.8
1.8
310.2
332.9
351.4
860.3
383.3
I9601
» 418. 4
* 45.0
20.2
27.2
8.0
14.0
1.8
404.2
1935
_.
1936
1937
1938 .
1939... .-
1950
1951 ..
1952
1953
1954
.
-
0.2
-.2
.1
8; 2
8.6
8.7
9.7
--1
Seasonally adjusted annual rates
22.8
25.0
25.6
25.3
6.1
6.1
6.1
6.4
12.7
12.6
12.6
12.0
1.8
1.8
1.8
1.8
353.2
355. 9
364.7
368.1
16.9
17.4
17.4
17.5
24.8
25.0
25.0
26.0
6.6
6.9
7.3
7.6
13.0
13.2
13.6
13.8
1.8
1.8
1.8
1.8
374.7
384. 5
384.8
389.0
19.9
20.2
20.4
20.1
26.1
26.7
27.3
28.7
7.8
8.0
8.2
8.2
13.9
13.9
14.0
14.1
1.8
1.8
1.8
1.8
396.2
404.2
408.0
408.5
1958' First quarter
Second quarter
Third quarter
Fourth quarter....
357.6
360.4
370.8
381.9
32.6
34.7
38.5
44.0
14.6
14.6
15.0
15.2
1959: First quarter
Second quarter
Third quarter
Fourth quarter
390.9
405.4
399.4
402.8
45.5
50.4
44.9
45.5
1960: First quarter
Second quarter
Third quarter
Fourth quarter *
414.4
419.4
419.3
48.0
45.3
42.2
(3)
(')
0.6
.6
-1.3
1
Preliminary estimates by Council of Economic Advisers.
i Data for corporate profits are approximations for the year as a whole; they do not derive from, nor imply,
specific estimates for the quarters. All other data incorporating or derived from these figures are correspondingly approximate.
»Not available.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
I4O
TABLE C-12.—Sources of personal income, 1929-60
[Billions of dollars]
Period
Labor
Proprietors'
Less:
income a
income
Per(wage and
sonal
NonPer- Trans- contri- agriculRental
Total
salary
income
Divisonal
personal disbursefer
paybutions
tural
Busiof
dends interest ments
income ments
for
personal
and persons
income
and other Farm' ness
social
ncome
*
profeslabor
insursional
income)1
ance
1929
85.8
51.0
6.0
8.8
5.4
5.8
7.4
1.5
0.1
77.7
1930
1931
1932
1933
1934
76.9
65.7
50.1
47.2
53.6
46.7
39.6
30.9
29.4
34.1
4.1
3.2
1.9
2.4
2.4
7.4
5.6
3.4
3.2
4.6
4.8
3.8
2.7
2.0
1.7
5.5
4.1
2.6
2.1
2.6
6.9
6.9
6.6
6.2
6.1
1.5
2.7
2.2
2.1
2.2
.1
.2
.2
.2
.2
70.8
60.9
46.9
43.6
49.8
1935
1936
1937
1938
1939 . ..
60.2
68.5
73.9
68.6
72.9
37.2
42.5
46.7
43.6
46.6
5.0
4.0
5.6
4.3
4.3
5.4
6.5
7.1
6.8
7.3
1.7
1.8
2.1
2.6
2.7
2.9
4.5
4.7
3.2
3.8
5.9
5.8
5.9
5.8
5.8
2.4
3.5
2.4
2.8
3.0
.2
.2
.6
.6
.6
53.9
63.2
67.0
62.8
67.1
1940
1941
1942
1943
1944
78.7
96.3
123.5
151.4
165.7
50.5
62.8
83.0
106.7
118.5
4.6
6.5
10.0
11.4
11.5
8.4
10.9
13.9
16.8
18.0
2.9
3.5
4.5
5.1
5.4
4.0
4.5
4.3
4.5
4.7
5.8
5.8
5.8
5.8
6.2
3.1
3.1
3.1
3.0
3.6
.7
.8
1.2
1.8
2.2
72.6
88.0
111.5
137.6
151.6
1945 . .
1946
1947
1948
1949
171.2
179.3
191.6
210.4
208.3
119.4
113.8
125.2
137.9
137.4
11.8
15.3
15.5
17.8
12.9
19.0
21.3
19.9
22.4
22.7
5.6
6.2
6.5
7.3
8.3
4.7
5.8
6.5
7.2
7.5
6.9
7.6
8.2
8.7
9.4
6.2
11.4
11.8
11.3
12.4
2.3
2.0
2.1
2.2
2.2
156.8
161.2
172.8
189.2
192.1
1950
1951
1952
1953 ..
1954
228.5
256.7
273.1
288.3
289.8
150.2
175.5
190.2
204.1
202.5
14.0
16.3
15.3
13.3
12.7
23.5
26.0
26.9
27.4
27.8
9.0
9.4
10.2
10.5
10.9
9.2
9.0
9.0
9.2
9.8
10.3
11.2
12.1
13.4
14.6
15.1
12.6
13.2
14.3
16.2
2.9
3.4
3.8
3.9
4.6
211.3
237.0
254.3
271.5
273.8
1955
1956
1957
1958
1959
310.2
332.9
351.4
360.3
383.3
218.0
235.7
247.7
249.1
268.3
11.8
11.6
11.8
14.0
11.8
30.4
32.1
32.7
32.3
34.7
10.7
10.9
11.9
12.2
12.4
11.2
12.1
12.6
12.4
13.4
15.8
17.5
19.6
20.8
23.5
17.5
18.8
21.9
26.4
27.0
5.2
5.8
6.7
6.8
7.8
295.0
317.9
336.1
342.6
367.6
404.2
283.5
12.0
35.9
12.5
14.0
26.8
29.0
9.3
388.1
I960*
_
Seasonally adjusted annual rates
1958:
First quarter
Second quarter
Third quarter
Fourth quarter
353.2
355.9
364.7
368.1
244.1
244.9
252.1
255.1
14.7
13.9
14.0
13.5
31.5
32.0
32.6
33.3
12.1
12.1
12.2
12.2
12.7
12.6
12.6
12.0
20.2
20.4
20.9
21.8
24.6
26.8
27.4
27.1
6.8
6.7
7.0
6.9
335.0
338.3
346.9
350.7
1959:
First quarter
Second quarter
Third quarter
Fourth quarter
374.7
384.5
384.8
389.0
261.2
270.1
270.0
272.0
13.0
12.0
11.1
11.2
33.8
34.8
35.0
35.1
12.3
12.4
12.4
12.5
13.0
13.2
13.6
13.8
22.6
23.1
23.8
24.5
26.6
26.8
26.8
27.8
7.7
7.8
7.9
7.9
357.8
368.6
370.0
373.7
1960:
First quarter
Second quarter
Third quarter
Fourth quarter «...
396.2
404.2
408.0
408.5
279.4
284.0
286.1
284.3
10.6
12.1
12.2
12.8
35.4
36.0
36.1
35.9
12.5
12.5
12.5
12.5
13.9
13.9
14.0
14.1
25.6
26.5
27.3
27.6
27.9
28.5
29.1
30.5
9.2
9.3
9.4
9.2
381.4
387.7
391.6
391.6
i The total of wage and salary disbursements and other labor income differs from compensation of employees in Table C-9 in that it excludes employer contributions for social insurance and excludes the excess
of awage accruals over wage disbursements.
Excludes income resulting from net reductions of inventories and gives credit in computing income
to net additions to inventories during the period.
a Data for 1929-45 differ from those in Table C-65 because of revisions by the Department of Agriculture
not
yet incorporated into the national income accounts.
4
Nonagricultural income is personal income exclusive of net income of unincorporated farm enterprises,
farm wages, agricultural net interest, and net dividends paid by agricultural corporations.
• Preliminary estimates by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
141
TABLE C-13.—Disposition of personal income, 7929-60
Less:
Equals: Personal
Less:
Equals:
DisposPersonal Personal
conable
Personal
income
taxes i personal sumption
saving
income expenditures
Period
Saving as
percent
of disposable
personal
income
(percent)
Billions of dollars
1929
85.8
2.6
83.1
79.0
4.2
5.1
1930
1931
1932.
1933
1934
76.9
65.7
50.1
47.2
53.6
2.5
1.9
1.5
1.5
1.6
74.4
63.8
48.7
45.7
52.0
71.0
61.3
49.3
46.4
51.9
3.4
2.5
-.6
-.6
.1
4.6
3.9
-1.2
-1.3
.2
1935
1936
1937. .
1938.
1939
60.2
68.5
73.9
68.6
72.9
1.9
2.3
2.9
2.9
2.4
58.3
66.2
71.0
65.7
70.4
56.3
62.6
67.3
64.6
67.6
2.0
3.6
3.7
1.1
2.9
3.4
5.4
5.2
1.7
4.1
78.7
96.3
123.5
151.4
165.7
2.6
3.3
6.0
17.8
18.9
76.1
93.0
117.5
133.5
146.8
71.9
81.9
89.7
100.5
109.8
4.2
11.1
27.8
33.0
36.9
5.5
11.9
23.7
24.7
25.1
171.2
179.3
191.6
210.4
208.3
20.9
18.7
21.5
21.1
18.7
150.4
160.6
170.1
189.3
189.7
121.7
147.1
165.4
178.3
181.2
28.7
13.5
4.7
11.0
8.5
19.1
8.4
2.8
5.8
4.5
228.5
256. 7
273.1
288.3
289.8
20.8
29.2
34.4
35.8
32.9
207.7
227.5
238.7
252.5
256.9
195.0
209.8
219.8
232.6
238.0
12.6
17.7
18.9
19.8
18.9
6.1
7.8
7.9
7.8
7.4
310.2
332.9
351.4
360.3
383.3
35.7
40.0
42.6
42.4
46.0
274.4
292.9
308.8
317.9
337.3
256. 9
269.9
285.2
293.5
313. 8
17.5
23.0
23.6
24.4
23.4
6.4
7.9
7.6
7.7
6.9
404.2
50.0
354.2
328.2
26.0
7.3
1940
1941.
1942
1943
1944
1945
1946.
1947
1948
1949
1950
1951
1952
1953-1954
.
-
_
_
.
. _
1955
1956
1957.
1958
1959
.
...
__. ..
_
.
19602
Seasonally adjusted annual rates
1958: First quarter
Second quarter
Third quarter
Fourth quarter
1959: First quarter
Second quarter
Third quarter _
Fourth quarter
1960: First quarter
Second quarter
Third quarter 2
Fourth quarter
__
_.
353. 2
355.9
364.7
368.1
41.8
41.9
42.8
43.2
311.4
314.0
321.9
324.9
287.7
291.2
294.8
300.2
23.7
22.8
27.1
24.7
7.6
7.3
8.4
7.6
_. ..
374.7
384.5
384.8
389.0
45.1
46.2
46.3
46.5
329.6
338.3
338.5
342.4
306.1
313.6
316.0
319.6
23.6
24.8
22.5
22.8
7.2
7.3
6.6
6.7
396.2
404.2
408.0
408.5
49.2
50.0
50.5
50.4
347.0
354.1
357.5
358.1
323.3
329.0
328.3
332.0
23.7
25.2
29.2
26.1
6.8
7.1
8.2
7.3
1
2
Includes also such items as fines and penalties.
Preliminary estimates by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
142
TABLE C-14.— Total and per capita disposable personal income and personal consumption
expenditures, in current and 1960 prices, 1929-60
Total personal
consumption
expenditures
(billions of
dollars)
Total disposable
personal income
(billions of
dollars)
Per capita disposable personal
income (dollars)
Current
prices
1960
prices 1
Current
prices
1960
prices '
Current
prices
1960
prices 2
Current
prices
1960
prices •
1929
83.1
148.7
682
1,220
79.0
141.3
648
1,159
121, 875
1930
1931
1932
1933 .
1934_.
74.4
63.8
48.7
45.7
52.0
139.3
134.0
115.7
112.6
120.6
604
514
390
364
411
1,131
1,080
926
897
954
71.0
61.3
49.3
46.4
51.9
132.9
128.8
117.2
114.4
120.3
576
494
395
369
410
1,079
1,037
938
910
951
123, 188
124, 149
124, 949
125, 690
126, 485
1935
1936
1937
1938
1939 -_
58.3
66.2
71.0
65.7
70.4
132.2
148.8
153.7
145.7
157.5
458
516
551
506
537
1,039
1,160
1,193
1,122
1,201
56.3
62.6
67.3
64.6
67.6
127.7
140.6
145.6
143.1
151.1
442
488
522
497
516
1,003
1,097
1,129
1,101
1,153
127, 362
128, 181
128, 961
129.969
131,028
76.1
93.0
117.5
133.5
146.8
168.4
192.5
217.6
226.7
236.0
576
697
871
976
1,061
1,274
1,443
1,613
1,657
1,706
71.9
81.9
89.7
100.5
109.8
159.2
169.7
166. 1
170.5
176.6
544
614
665
735
793
1,205
1,272
1,232
1,247
1,276
132, 122
133, 402
134, 860
136, 739
138, 397
150.4
160.6
170.1
189. 3
189.7
233. 5
231.1
221.5
232.8
235.7
1,075
1,136
1,180
1,291
1,272
1,669
1,635
1,536
1,588
1,580
121.7
147.1
165.4
178.3
181.2
188.9
211.6
215.3
219.4
225.0
870
1,040
1,148
1,216
1,215
1,350
1, 497
1,494
1,496
1,508
139, 928
141, 389
144, 126
146, 631
149, 188
207.7
227.5
238.7
252.5
256.9
254.2
261.2
268.2
281.2
283.2
1,369
1,474
1,520
1,582
1,582
1,676
1,692
1,708
1,762
1,744
195.0
209.8
219.8
232.6
238.0
238.7
240.8
247.0
258.9
262.3
1,286
1,359
1,400
1,457
1,465
1,574
1,560
1,573
1,622
1,615
151, 683
154, 360
157,028
159, 636
162, 417
1955
1956
1957
1958 1959
274.4
292.9
308.8
317. 9
337.3
301.2
316.0
323.7
327. 1
343.1
1,660
1,742
1,804
1,826
1,905
1,822
1,879
1,891
1,879
1,938
256.9
269.9
285.2
293.5
313.8
282.0
291.3
299.1
302.0
319.3
1,554
1,605
1,666
1,686
1,772
1,706
1,732
1,747
1,735
1, 803
165, 270
168, 176
171, 198
174, 054
177, 080
1960 «
354.2
354.2
1,969
1,969
328.2
328.2
1,824
1,824
179, 922
Period
1940
1941
1942
1943
1944
1945
1946
1947 .
1948
1949
1950
1951
1952 ..
1953
1954
_
..
Per capita personal consumption expenditures (dollars)
Population
(thousands) 4
Seasonally adjusted annual rates
1958:
First quarter
Second quarter...
Third quarter
Fourth quarter...
311.4
314.0
321.9
324.9
321.4
322.7
331.2
333.6
1,800
1,808
1,845
1,854
1,858
1, 858
1,898
1,903
287.7
291.2
294.8
300.2
296.9
299.4
303. 4
308.3
1,663
1,676
1,690
1,713
1,716
1,724
1,739
1,759
173, 041
173, 703
174, 464
175, 287
1959:
First quarter
Second quarter...
Third quarter
Fourth quarter...
329.6
338.3
338. 5
342.4
337.4
345.2
343.7
346.2
1,873
1,914
1,907
1,920
1,917
1,953
1,936
1,941
306.1
313.6
316. 0
319.6
313.3
319.9
320.9
323. 1
1,739
1,775
1,780
1,793
1,780
1,810
1,808
1,812
176, 012
176, 714
177, 493
178, 291
1960:
First quarter
Second quarter...
Third quarter 5
Fourth quarter .
347.0
354.1
357.5
358.1
349.1
354. 5
356.8
356.3
1,939
1, 972
1,983
1,977
1,951
1,974
1,979
1,967
323.3
329.0
328.3
332.0
325.3
329.2
327.8
330.2
1,807
1,832
1,821
1,833
1,818
1,833
1,818
1,823
178, 938
179, 576
180, 309
181, 100
1 Estimates in current prices divided by the implicit price deflator for personal consumption expenditures
on a 1960 base.
2
See Table C-2 for explanation.
3
Total expenditures in 1960 prices divided by population.
4
Population of the United States excluding Alaska and Hawaii; includes armed forces abroad. Annual data are for July 1; quarterly data are for middle of period. (Population of United States including
Alaska for 1959 was 177,261,000 and including Alaska and Hawaii for 1960 was 180,670,000.)
s Preliminary estimates by Council of Economic Advisers.
Sources: Department of Commerce and Council of Economic Advisers.
143
l
TABLE G—15.—Financial saving by individuals, 1939-60
[Billions of dollars]
Period
1939
1940
1941
1942
1943
1944 - _ _
1945
...
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
I96010
1958:
First quarter
Second quarter
Third quarter ___
Fourth quarter..
1959:
First quarter
Second quarter __
Third quarter__Fourth quarter..
1960:
First quarter
Second quarter
Third quarter-10Fourth quarter
Securities
Currency Savand ings
Total bank
shares
U.S. Other Cor2
degov- porate
Total savposits
ings ern- and
bonds ment3 other
0.1 -0.8 0.7 -0.9 -0.6
.3 -.4
.9 -.8 -.4
.4
2.8
.4 -.5
2.6
.3 10.3
8.0
2.3 CO
.6 14.1 11.1
3.2 -.3
.8 15.7 11.8
4.6 -.7
.1
9.9
6.8
4.2 -1.2
.2 -1.4
1.0 -2.4 (»)
2.4
.3
2.0 -.3
3.1
.4
i!i
.3
1.6
2.4
.7
1.5
.2
.6
.9
.7
1.7
.2 -.1
.5 -.5 -.4
1.4
2.3
3.5
2.2
3.3
.1
1.3
3.4
1.2
4.0
2.0
.2
.4
.7
4.8
.6 -.9
6.4
3.9
2.2
5.2
.3
5.4
5.2 -.1 3.3
2.0
3.8
2.8
5.2
4.6 -1.9
.8 -.5 -1.1 2.5
6.5
12.2
7.3 11.6 -1.8
1.2
8.1
2.6 -.4
1.6
1.5
4.2
4.2
10.5
29.3
38.7
41.4
37.3
14.1
6.5
2.8
2.2
.8
11.1
13.1
10.9
9.5
7.1
14.1
15.7
16.0
13.9
12.0
3.0
2.9
4.8
10.9
16.2
17.5
19.0
10.6
2.0
-1.8
-1.4
3.5
5.9
7.0
4.7
5.4
3.3
4.7
4.9
10.3
3.5
3.8
5.0
.9
6.1
3.9
.7
.6
5.4
3.6
14
1.9
1.0
2.2
6
-.3
-.9
1.5
4.9
2.9
4.2
2.0
.2
.3
2.7
.3
1.4
2.4
1.2
2.2
4.0
1.3
3.5
3.2
-2.0
-.3
2.9
3.3
1.6
2.3
1.4
2.8
Pri- Nonvate ininsur- sured
ance penre- sion
serves* funds
Gov- Less: Increase in
erndebt
ment
insurance
and
Con- Secupen- Mortgage 6 sumer7 rities8
sion debt
loans
debt
reserves8
1.7
1.8
2.1
2.5
2.8
3.2
3.5
3.4
3.6
3.8
3.7
3.9
4.1
4.8
5.0
5.2
5.5
5.5
5.1
5.4
5.4
5.1
0.1
.1
.1
.1
.2
.6
.9
.3
.3
.4
.6
.9
1.4
1.5
1.8
1.9
2.1
2.4
2.9
3.0
3.4
3.8
1.3
1.3
1.9
2.6
3.9
5.0
5.1
3.6
3.5
3.6
2.3
1.1
4.2
4.4
3.2
2.6
3.1
3.6
3.2
.6
2.2
3.3
0.8 -0.2
0.5
.8
1.0 -.2
.8
.7 -.1
.1 -3.0
.3
-.4 -1.0
.6
-.1
.1
1.4
.5
.2
1.5
2.3 -2.3
3.6
2.8 -.8
4.6
2.4
.4
4.7
2.6
.3
4.1
3.6
.2
7.3
1.0 -.3
6.6
4.4
6.5
.6
3.6
.4
7.3
.9
1.0
9.0
11.8
6.1
.6
10.3
3.1 -.8
2.5 -.1
7.8
.4
9.8
.3
6.1
.2
13.4
3.7
.4
10.8
— 1 —.2
— .1 -.6
-.2 -1.5
1.2
-.2
.9
.4
.8
.4
12
1.2
1.3
1.6
10
5
.6
.9
_ i
7
.2
-.1
1 6 — 1 8 (9)
.4
1.0
2 2
.1 -1.5
2.9
.9
1.6
3.1
2.9
2.5
2.8
3.3
-.2
-.4
-.5
-.6
2.8
2.7
3.0
3.7
.4
.3
.3
.2
1.2
1.4
1.3
1.5
.9
.8
.8
.9
.1
1.5
.9
-.3
2.9
3.6
3.8
3.0
-.3
2.2
1.8
2.4
2.6
-.1
.5
-.3
-.2
-.1
(9)
2.6
.1
.2
.7
.6
1.2
1.2
1.4
1.4
1.0
.9
1.0
.9
.3
2.1
1.0
(9)
2.4
2.7
3.1
2.6
-.5 -1.3
.1
1.9
.8
.7
.8
1.5
-'.2
-.8
-.6
.1
(9)
.6
1
Individuals' saving, in addition to personal holdings, covers saving of unincorporated business, trust
funds, and nonprofit institutions in the forms specified.
23 Includes shares in savings and loan associations and shares and deposits in credit unions.
"Other government" includes U.S. Government issues (except savings bonds), State and local government securities, and beginning 1951, nonguaranteed Federal agency issues, which are included in "corporate
and other" for years prior to 1951.
*6 Includes insured pension reserves.
Includes Social Security funds, State and local retirement systems, etc.
8 Mortgage debt to institutions on one- to-four family nonfarm dwellings.
7 Consumer debt owed to corporations, largely attributable to purchases of automobiles and other durable consumer goods, although including some debt arising from purchases of consumption goods. Policy
loans on Government and private life insurance have been deducted from those items of saving.
s Change in bank loans made for the purpose of purchasing or carrying securities.
9
Less than $50 million.
10
Preliminary.
NOTE.—Figures beginning 1957 have been revised since the Economic Report of the President, January
1960.
In addition to the concept of saving shown above, there are other concepts of individuals' saving,
with varying degrees of coverage, currently in use. The personal saving estimates of the Department of
Commerce are derived as the difference between disposable personal income and expenditures. Conceptually,
Commerce saving includes the following items not included in Securities and Exchange Commission saving: Housing, farm and unincorporated business investment in inventories and plant and equipment, net
of depreciation, and increase in debt. Government insurance is excluded frorrf the Commerce saving series. For a reconciliation of the two series, see Securities and Exchange Commission Statistical Bulletin,
July 1960, and Survey of Current Business, July 1960.
The Federal Reserve Board's flow-of-funds system of accounts includes capital investments as well as
financial components of saving and covers saving of Federal, State and local governments, businesses, financial institutions and consumers. While the Federal Reserve Board's estimates of consumer saving in financial form are similar to the Securities and Exchange Commission estimates of individuals' saving, there
are some statistical and conceptual differences in the two sets of data.
Revisions for 1947-56 in the consumer credit statistics of the Board of Governors of the Federal Reserve
System have not yet been incorporated into these estimates.
Data for Alaska and Hawaii included for all periods.
Detail will not necessarily add to totals because of rounding.
Source: Securities and Exchange Commission.
144
TABLE C-16.—Sources and uses of gross saving, 1920-60
[Billions of dollars]
Qross private saving and government surplus or
deficit on income and product transactions
Government surplus
or deficit (-)
Private saving
Period
Total
Total
Personal
saving
Gross
busi- Total
ness
saving
Federal
State
and
local
Gross investment
Statistical
Gross
disprivate Net for- crepeign in- ancy
Total domestic in- vest-1
vest- ment
ment
1929 .
16.7
15.7
4.2
11.5
1.0
1.2
-0.1
17.0
16.2
0.8
0.3
1930
1931
1932
1933
1934
11.9
4.9
.3
.6
2.6
12.2
7.7
2.0
1.9
5.0
3.4
2.5
-.6
-.6
.1
8.8
5.2
2.7
2.6
4.9
-.3
-2.8
-1.7
-1.4
-2.4
.3
-2.1
-1.5
-1.3
-2.9
-.5
-.7
-.2
(2)
.5
11.0
5.7
1.1
1.5
3.3
10.3
5.5
.9
1.4
2.9
.7
.2
.2
.2
.4
-1.0
.8
.8
.9
.7
1935
1936
1937
1938
1939
6.4
7.2
12.1
7.3
9.0
8.4
10.1
11.5
8.9
11.2
2.0
3.6
3.7
1.1
2.9
6.3
6.5
7.8
7.8
8.3
-2.0
-3.0
.6
-1.6
-2.1
-2.6
-3.5
-.2
-2.0
-2.2
.6
.5
.7
.4
.1
6.2
8.3
11 8
7.8
10.2
6.3
8.4
11.7
6.7
9.3
-.1
-.1
.1
1.1
.9
-.2
1.1
-.2
.5
1.2
1940
1941
1942 .
1943
1944
13.9
18.8
10.5
5.1
2.3
14.6
22.6
41.9
49.3
54.2
4.2
11.1
27.8
33.0
36.9
10.4
-.7 -1.4
11.5 -3.8 -5.1
14.1 -31.4 -33.2
16.3 -44.2 -46.7
17.2 -51.9 -54.6
.7
1.3
1.8
2.5
2.7
14.7
19.2
9.7
3.4
5.0
13.2
18.1
9.9
5.6
7.1
1.5
1.1
-.2
-2.2
-2.1
.8
.4
g
-L7
2.8
1945
1946
1947.-- _ _
1948
1949
4.5
30.6
36.8
45.9
33.0
44.3
26.5
23.6
37.6
36.1
28.7
13.5
4.7
11.0
8.5
15.6 -39.7 -42.3
4.1
13.1
2.2
13.3
18.9
12.2
26.6
8.2
8.0
27.6 -3.1 -2.5
2.6
1.9
1.1
.3
-.6
9.0
32.7
40.4
45.0
33.5
10.4
28.1
31.5
43.1
33.0
-1.4
4.6
8.9
1.9
.5
4.5
2.1
3.5
-.8
.5
1950
1951
1952.
. . _
1953
1954. _ _ . . .
48.5
55.3
48.3
47.0
47.6
40.3
49.2
52.2
54.1
54.4
12.6
17.7
18.9
19.8
18.9
27.7
31.5
33.2
34.3
35.5
8.2
6.1
-3.9
-7.1
-6.7
9.2
6.4
-3.9
-7.4
-5.8
-1.0
-.3
.1
.3
-.9
47.8
56.6
49.7
48.3
48.5
50.0
56.3
49.9
50.3
48.9
-2.2
.2
-.2
-2.0
-.4
-.7
1.2
1.4
1.3
.9
1955.
1956-.
1957
1958
1959
62.4
71.3
70.2
57.6
71.4
59.6
66.1
69.2
69.0
73.9
17.5
23.0
23.6
24.4
23.4
2.9
42.1
43.0
5.2
45.6
1.0
44.6 -11.4
50.5 -2.5
3.8
5.7
2.0
-9.3
-1.4
-1.0
-.5
-1.0
-2.0
-1.1
63.4
68.8
69.6
56.0
69.5
63.8
67.4
66.1
56.0
72.0
-.4
1.5
3.5
-.1
-2.5
1.0
-2.4
-.6
-1.7
-1.8
I9603
478.6
478.3
26.0
4 3 . 2 4-2.9
73.8
72.7
1.1
4-4.8
452.3
4.3
Seasonally adjusted annual rates
1958:
First quarter
Second quarter _.
Third quarter. ..
Fourth quarter. -
55.5
53.7
58.3
62.7
65.8
66.4
70.8
73.3
23.7
22.8
27.1
24.7
42.0
43.6
43.7
48.6
1959:
First quarter
Second quarter ._
Third quarter.-.
Fourth quarter- -
68.3
76.2
68.9
71.0
72.8
76.6
72.1
73.8
23.6
24.8
22.5
22.8
49.1
51.8
49.6
51.0
-4.5
-.4
-3.2
-2.8
1960:
First quarter
Second quarter -_
Third quarter. ..
Fourth quarter 3.
80.0
79.6
79.0
(5)
76.1
77.3
80.8
(5)
23.7
25.2
29.2
26.1
52.4
52.2
51.6
(5)
3.9
2.3
-1.8
(5)
-2.2
-1.8
-1.9
-2.3
52.9
52.5
56.1
62.0
52.4
52.5
55.8
63.2
0.5
(2)
.4
-1.1
-2.5
-1.3
-2.1
-.7
-2.5
1.0
-2.0
-2.2
-2.0
-1.3
-1.2
-.6
68.4
75.2
66.0
68.5
70.9
78.9
67.5
70.8
-2.5
-3.6
-1.5
-2.4
.1
-1.0
-3.0
-2.6
5.6
4.7
1.6
(5)
-1.7
-2.5
-3.4
(5)
79.0
75.7
73.1
68.1
79.3
75.5
70.8
65.8
0
'.3
2.3
2.3
-1.1
-3.9
-5.8
(5)
-10.3 -8.1
-12.7 -10.9
-12.5 -10.6
-10.6 -8.2
1
Net exports of goods and services less foreign net transfers by Government. For 1929-45, net foreign
investment and net exports of goods and services have been equated, since foreign net transfers by Government were negligible during that period.
23 Less than $50 million.
Preliminary estimates by Council of Economic Advisers.
4
Data for corporate profits are approximations for the year as a whole; they do not derive from, nor imply,
specific estimates for the quarters. All other data incorporating or derived from these figures are correspondingly
approximate.
4
Not available.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
H5
EMPLOYMENT AND WAGES
TABLE G-17.—Noninstitutional population and the labor force, 7929-60
Civilian labor force
Total
Nonin- labor
Employment 2
stitu- force Armed
tional (includ- forces *
Total
popuing
Agri- Nonlation i armed
agriTotal culforces) i
cultural tural
Period
Total
labor
force as
percent
as perUnem- of non- cent of
ploy-2 institucivilian
tional labor
ment
popu- force
lation
Thousands of persons 14 years of age and over
Old definitions: 2
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
__
1945
1946
1947
New definitions: 2
1947
_
1948
1949
Percent
(')
49,440
260 49, 180 47,630 10,450 37, 180
1,550
(»)
3.2
(')
(3)
8
260
260
250
250
260
49,820
50, 420
51,000
51,590
52,230
45,480
42, 400
38,940
38,760
40,890
10, 340
10,290
10, 170
10,090
9,900
35, 140 4,340
32, 110 8,020
28, 770 12,060
28,670 12, 830
30,990 11, 340
(»)
(8)
50,080
50,680
51, 250
51, 840
52,490
8
(')
(»)
8.7
15.9
23.6
24.9
21.7
(')
(a)
(')
(')
(')
53, 140
53, 740
54,320
54, 950
55,600
270
300
320
340
370
52, 870
53, 440
54, 000
54, 610
55,230
42,260 10, 110
44, 410 10,000
46, 300 9,820
44,220 9,690
45, 750 9,610
32, 150 10,610
34, 410 9,030
36,480 7,700
34, 530 10, 390
36, 140 9,480
(«)
(»)
(»)
(»)
(«)
20.1
16.9
14.3
19.0
17.2
56,180
540
57, 530 1,620
60,380 3,970
64,560 9,020
66, 040 11,410
55,640
55, 910
56, 410
55, 540
54,630
47, 520
50, 350
53, 750
54, 470
53,960
37, 980
41, 250
44, 500
45, 390
45, 010
8,120
5,560
2,660
1,070
670
56.0
56.7
58.8
62.3
63.1
14.6
9.9
4.7
1.9
1.2
105, 520 65,290 11, 430 53, 860 52, 820
1 06, 520 60,970 3,450 57, 520 55, 250
107,608 61,758 1,590 60,168 58, 027
8,580 44, 240
8,320 46, 930
8,266 49, 761
1,040
2,270
2,142
61.9
57.2
57.4
1.9
3.9
3.6
8,256 49, 557
7,960 51, 156
8,017 50, 406
2,356
2,325
3,682
57.4
57.9
58.0
3.9
3.8
5.9
100,380
101, 520
102, 610
103,660
104, 630
1940
1941
1942
1943
1944
Unemployment
9,540
9,100
9,250
9,080
8,950
107, 608
108, 632
109, 773
61, 758
62, 898
63, 721
1,590 60,168 57, 812
1,456 61, 442 59, 117
1,616 62, 105 58, 423
1950
1951
1952
1953
1954
110,929
112,075
113, 270
115, 094
116, 219
64, 749
65,983
66,560
67, 362
67, 818
1,650
3,097
3,594
3,547
3,350
63,099
62,884
62, 966
63,815
64,468
59, 748
60,784
61, 035
61, 945
60,890
7,497
7,048
6,792
6,555
6,495
52, 251
53, 736
54, 243
55,390
54, 395
3,351
2,099
1,932
1,870
3,578
58.4
58.9
58.8
58.5
58.4
5.3
3.3
3.1
2.9
5.6
1955
1956
1957
1958
1959
117, 388
118, 734
120, 445
121, 950
123, 366
68,896
70, 387
70,744
71, 284
71, 946
3,048
2,857
2,797
2,637
2,552
65, 848
67, 530
67, 946
68,647
69, 394
62, 944
64, 708
65, Oil
63,966
65, 581
6,718
6,572
6,222
5,844
5,836
56, 225
58, 135
58, 789
58, 122
59, 745
2,904
2,822
2,936
4,681
3,813
58.7
59.3
58.7
58.5
58.3
4.4
4.2
4.3
6.8
5.5
124, 878
I960
1960 (including Alaska
and Hawaii) *
125, 368
72,820
2,514 70,306 66,392
5,696 60, 697
3,913
58.3
5.6
73, 126
2,514 70, 612 66, 681
5,723 60, 958
3,931
58.3
5.6
1959' January
February
March
April
122, 724
122, 832
122, 945
123, 059
123, 180
123, 296
70,027
70,062
70,768
71, 210
71, 955
73, 862
2,597
2,591
2,579
2,571
2,550
2,538
67, 430
67, 471
68,189
68,639
69, 405
71, 324
62, 706
62, 722
63,828
65,012
66, 016
67, 342
4,693
4,692
5,203
5,848
6,408
7,231
58,013
58,030
58, 625
59, 163
59,608
60, 111
4,724
4,749
4,362
3,627
3,389
3,982
57.1
57.0
57.6
57.9
58.4
59.9
7.0
7.0
6.4
5.3
4.9
5.6
123, 422
July
123, 549
August
September. __ _ _. 123, 659
October
123, 785
November
_. 123, 908
124, 034
December
73, 875
73, 204
72, 109
72,629
71, 839
71, 808
2,537
2,537
2,532
2,526
2,529
2,532
71, 338
70, 667
69, 577
70, 103
69, 310
69, 276
67,594
67, 241
66, 347
66, 831
65,640
65,699
6,825
6, 357
6,242
6,124
5,601
4,811
60,769
60,884
60, 105
60,707
60,040
60,888
3,744
3,426
3,230
3,272
3,670
3,577
59.9
59.3
58.3
58.7
58.0
57.9
5.2
4.8
4.6
4.7
5.3
5.2
May
June _ _
See footnotes at end of table, p. 147.
146
TABLE C-17.—Noninstitutional population and the labor force, 1929-60—Continued
Noninstitutional
popu-J
lation
Period
Civilian labor force
Total Unemlabor
Total
ploylabor
force as ment
Employment *
force Armed1
percent as perUnem- of non- cent of
(includ- forces
ing
Agri- Non- ploy- 2 institu- civilian
Total
Total culagri- ment tional labor
armed J
forces)
tural culpopu- force
lation
tural
Thousands of persons 14 years of age and over
New definitions: J
1960: January *
February
March
April
May
Percent
Jtjne
124, 606
124, 716
124, 839
124, 917
125,033
125, 162
70, 689
70, 970
70,993
72, 331
73, 171
75, 499
2,521
2,521
2,520
2,512
2,504
2,497
68,168
68,449
68,473
69, 819
70,667
73,002
64,020
64,520
64,267
66,159
67,208
68,579
4,611
4,619
4,565
5,393
5,837
6,856
59,409
59,901
59,702
60,765
61,371
61,722
4,149
3,931
4,206
3,660
3,459
4,423
56.7
56.9
56.9
57.9
58.5
60.3
6.1
5.7
6.1
5.2
4.9
6.1
July
August
September
October
November
December
125, 499
125, 717
125, 936
126, 222
126, 482
125,288
75,215
74, 551
73, 672
73, 592
73, 746
73, 079
2,509
2,481
2,517
2,523
2,533
2,530
72,706
72,070
71, 155
71, 069
71, 213
70,549
68,689
68,282
67, 767
67,490
67, 182
66,009
6,885
6,454
6,588
6,247
5,666
4,950
61,805
61, 828
61, 179
61, 244
61, 516
61, 059
4,017
3,788
3,388
3,579
4,031
4,540
60.0
59.4
58.6
58.4
58.4
57.8
5.5
5.3
4.8
5.0
5.7
6.4
Seasonally adjusted *
1959: January
February
March
April
May
June
July
August
September
October
November
Decen>bp,r
1960* January *
February
March
April
May
June
July
August - September
October
November
December
_ __
69,000
68,800
69,300
69,300
69,300
69,700
64,700
64,700
65,300
65,900
66,000
66,200
5,600
5,700
6,000
6,200
6,000
6,100
58,800
58,800
59,200
59,600
59,900
60,100
4,100
4,100
3,900
3,500
3,400
3,500
6.0
5.9
5.7
5.1
4.9
5.1
69,500
69,400
69,300
69,700
69,300
69,900
66,000
65,700
65,600
65,600
65,300
66,100
5,800
5,700
5,700
5,500
5,800
5,700
60,300
60,100
60,000
60,300
59,500
60,300
3,600
3,800
3,800
4,200
4,100
3,800
5.1
5.4
5.6
6.0
5.9
5.5
69,800
69,800
69,600
70,500
70,600
71,300
66,100
66,500
65,800
67,100
67,100
67,400
5,700
5,600
5,300
5,800
5,500
5,800
60,300
60,700
60,300
61,300
61,700
61,700
3,600
3,400
3,800
3,600
3,500
3,900
5.2
4.8
5.4
5.0
4.9
5.5
70,800
70,800
70,900
70,600
71,200
71,200
67,100
66,700
67,000
66,300
66,800
66,400
5,800
5,800
6,000
5,600
5,800
5,800
61,400
61,000
61,100
60,800
61,000
60,500
3,800
4,200
4,000
4,500
4,500
4,900
5.4
5.9
5.7
6.4
6.3
6.8
1
Data for 1940-52 revised to include about 150,000 members of the armed forces who were outside the
United States in 1940 and who were, therefore, not enumerated in the 1940 Census and were excluded from
the 1940-52 estimates.
» See Note.
»Not available.
4
Beginning January I960, monthly figures include data for Alaska and Hawaii.
8
Seasonally adjusted totals may differ from the sum of components because totals and components have
been seasonally adjusted separately.
NOTE.—Civilian labor force data beginning with May 1956 are based on a 330-area sample. For January
1954-April 1956 they are based on a 230-area sample; for 1946-53 on a 68-area sample; for 1940-45 on a smaller
sample; and for 1929-39 on sources other than direct enumeration.
Effective January 1957. persons on layoff with definite instructions to return to work within 30 days
of layoff and persons waiting to start new wage and salary jobs within the following 30 days are classified
as unemployed. Such persons had previously been classified as employed (with a job but not at work).
The combined total of the groups changing classification has averaged about 200,000 to 300,000 a month in
recent years. The small number of persons in school during the survey week and waiting to start new
Jobs are classified as not in the labor force instead of employed, as formerly. Persons waiting to open new
businesses or start new farms within 30 days continue to be classified as employed.
Beginning July 1955, monthly data are for the calendar week ending nearest the 15th of the month; previously, for week containing the 8th. Annual data are averages of monthly figures.
For the years 1940-52, estimating procedures made use of 1940 Census data; for subsequent years, 1950
Census data were used. For the effects of this chanse on the historical comparability of the data, see
Annual Report on the Labor Force, 1954, Series P-50, No. 59, April 1955, p. 12.
Detail will not necessarily add to totals because of rounding.
Source: Department of Labor.
147
TABLE CMS.—Employment and unemployment, by age and sex, 1942-60
[Thousands of persons 14 years of age and over]
Employed
Total
civil-
ian
labor Total
em- 14-19
force ployed years
Period
Unemployed
45 years
and over
45 years
20-44 years and
over
Total 14-19
unemyears
Fe- Male Fe- ployed
FeMale male
Male Fe- Male male
male
male
20-44 years
Old definitions: »
56, 410 53,750 5,770 20,790 9,400 14,160 3,630
1942
1943
..
1945
1946
1947
1948
1949
...
1944
55,540 54, 470 6,350 17,550 11, 050 15,160 4,360
54,630 53,960 6,050 16,380 11,280 15, 480 4,770
1950
1951
1952
1953
1954
2,660
1,070
670
510
290
200
670
180
140
520
260
170
770
240
110
190
100
50
5,480 15,830 11, 140 15,520
4,550 21, 170 9,870 15,280
4,717 23,409 9,828 15, 474
4,841 23, 842 10, 098 15, 677
4, 512 23,483 10,087 15,491
4,850
4,380
4,600
4,924
5,138
1,040
2,270
2,142
2,064
3,395
190
330
290 1,200
425
920
415
757
595 1.329
270
280
303
353
559
200
410
396
414
719
50
90
99
127
194
63,099 59, 957 4,564 23,833 10, 376 15,666
62, 884 61,005 4,614 23,594 10, 833 16, 144
62,966 61,293 4,530 23,372 10, 917 16, 345
63,815 62, 213 4,514 23, 715 10,953 16, 725
.. 64,468 61,238 4,285 23,178 10,730 16,649
5,517
5,819
6,130
6,306
6,395
3,142
1,879
1,673
1,602
3,230
543 1,119
515
356
362
495
312
512
515 1,158
552
419
344
300
617
697
402
345
363
684
232
190
127
116
256
65,848 63,193 4,446 23,768 11,000 16,878 7,101
67,530 64,979 4,764 24,051 11,271 17,294 7,598
2,654
2,551
471
510
854
784
502
491
606
530
222
230
53,860 52,820
57, 520 55,250
60,168 58, 027
61, 442 59, 378
62, 105 58,710
1955
1956
New definitions: 1
1957.
1958
1959
67, 946 65, Oil 4,719 23,992 11, 247 17, 247 7,803 2,936
4,681
3,813
574
936
757 1,715
727 1,233
566
850
708
605
965
789
254
392
356
19602
70, 612 66,681 5,033 24,064 11, 282 17,478 8,823 3,931
790 1,276
730
782
348
897 1,089
851 1,095
974
785
655
787
679
634
662
596
369
386
393
392
375
347
68,647 63,966 4,511 23,374 11,028 17, 036 8,015
69,394 65,581 4,789 23,952 11,080 17,316 8,443
1959:
January
February
March.
_ _
April
May
June
.- _
July
August. __
September
October
November
December
I960:2
January
February
March
April
May
June.
July
August
September
October
November
December
1
2
67,430 62,706
67, 471 62,722
68,189 63,828
68, 639 65, 012
69, 405 66,016
71, 324 67, 342
3,932 23,177 10, 752 16, 766
4,000 23,083 10, 813 16, 782
4,062 23,460 10, 989 16, 991
4,268 23,950 11, 058 17,283
4,523 24,094 11,287 17,452
5,782 24,328 11, 099 17, 534
8,078
8,043
8,324
8,454
8,660
8,602
4,724
607
4,749
586
4,362
606
3,627
648
3,389
690
3,982 1,312
71,338 67, 594
70, 667 67, 241
69, 577 66,347
70, 103 66, 831
69, 310 65, 640
69, 276 65,699
6,307 24, 471 10, 868 17, 539
6,102 24, 451 10,839 17, 496
4,793 24,241 11,188 17, 564
4,731 24,276 11,564 17, 579
4,437 23, 912 11,288 17,404
4,538 23,978 11,229 17, 398
8,407
8,354
8,565
8,684
8,599
8,553
3,744 1,007 1,023
3,426
791 1,003
3,230
598 1,032
3,272
939
605
3,670
624 1,212
3,577
660 1,173
675
674
646
696
697
627
669
646
629
692
808
797
370
312
324
341
326
320
68,168 64,020 4.064 23,659 10, 821 17, 124
68,449 64,520 4,187 23,732 10,944 17, 159
68,473 64,267 4,104 23,606 10,988 17, 108
69, 819 66,159 4,522 23, 957 11,420 17, 482
70,667 67,208 4,808 24,225 11,582 17, 625
- 73,002 68,579 6,224 24, 410 11,438 17,654
8,350
8,499
8,463
8,775
8,968
8,854
4,149
635
3,931
607
4,206
698
3,660
658
3,459
765
4,423 1,569
1,484
1,402
1,531
1,267
1,059
1,133
723
708
675
633
656
751
934
904
923
755
680
653
373
308
380
346
299
316
72,706 68,689 6,827 24,380 11, 239 17, 567
72,070 68,282 6,439 24, 439 11, 148 17,529
71, 155 67, 767 5,015 24, 376 11,499 17,687
71, 069 67,490 4,961 24,250 11, 534 17,694
71, 213 67, 182 4,729 24, 070 11, 479 17,684
70,549 66,009 4,522 23, 679 11,303 17,420
8,676
8,730
9,191
9,053
9,221
9,087
4,017 1,020 1,193
3,788
805 1,179
3,388
665 1,035
3,579
663 1,077
4,031
685 1,310
728 1,648
4,540
784
747
734
737
850
772
670
710
668
111
777
989
348
345
285
373
412
403
1,761
1,831
1,604
1,145
1,009
1,064
See Note, Table C-17 for explanation of differences between the old and new definitions.
Beginning January 1960, data for Alaska and Hawaii are included.
NOTE.—Data are not available prior to 1942 for all the age/sex groups above.
See Note, Table C-17 for information on area sample used and reporting periods.
Detail will not necessarily add to totals because of rounding.
Source: Department of Labor.
148
TABLE C—19.—Employed persons not at work, by reason for not working, and special groups
of unemployed persons, 7946-60
[Thousands of persons 14 years of age and over]
Employed persons not at work,
by reason for not working
Period
Bad
weather
Total
Industrial
dispute
Vacation
Special groups of un-a
employed persons
Illness
All
other
reasons >
Tempo- New wage
and salary
rary
layoff'
job*
New definitions: •
1946
1947
1948
1949
1950
1951
1952
-1953 1954
1955
1956
1957
1958
1959
-
. -.
2,103
2,260
2,490
2,243
(6)
211
197
110
2,440
2,459
2,555
2,529
2,688
2,683
2,888
3,017
3,076
3,161
95
97
79
662
834
1,044
1,044
819
847
844
719
CO
273
308
291
97
123
141
185
58
92
121
101
151
111
68
96
73
85
57
164
73
53
1,137
1,073
,130
,171
,361
718
782
775
827
776
349
436
418
362
425
92
117
142
167
221
116
103
117
101
127
103
109
139
182
115
61
76
45
59
160
,268
,346
,447
,479
,494
835
901
962
882
907
416
456
425
474
484
133
124
150
166
128
117
147
110
120
134
<*)
I9607
3,231
168
40
1,576
942
505
147
119
1959: January
February, _.
March
April
May
June
2,086
2,212
2,101
2,017
2,007
3,436
322
367
171
90
31
28
36
41
41
68
66
73
290
316
332
437
661
2,028
952
1,008
1,083
1,021
918
774
486
480
473
401
331
533
139
144
112
99
104
104
90
96
128
124
123
298
July
August .
September ._
October
November _ .
December...
7,085
6,812
3,575
2,644
2,064
1,893
79
28
39
55
74
99
196
426
399
382
128
64
5,141
4,778
1,907
975
622
442
880
828
841
847
871
867
789
752
389
384
369
421
138
189
139
84
142
144
150
171
144
95
122
73
1960: January 7
February...
March
April
May
June
2,343
2,730
2,791
2,243
2,086
3,772
351
302
826
32
88
19
47
50
57
39
48
58
334
398
324
868
645
2,293
1,144
1,466
1,121
856
873
767
466
514
464
448
431
634
133
130
112
140
146
126
85
95
76
120
79
272
7,291
6,924
2,630
2,063
1,913
1,989
23
29
30
26
38
253
38
26
34
64
12
7
5,692
5,293
1,339
815
543
374
783
842
817
810
889
934
756
736
410
348
431
420
185
200
140
150
114
188
134
154
123
98
102
89
July
August
September. .
October
November __
December...
1
Includes persons waiting to open new businesses or start new farms within 30 days.
• Under the old definitions of employment and unemployment, these groups were included in the
"employed but not at work" category.
•4 Persons on layoff with definite instructions to return to work within 30 days of the layoff.
Persons scheduled to start new wage and salary jobs within 30 days. Under the old definitions, the
"new job or business" group included these persons as well as persons waiting to open new businesses or
start new farms within 30 days (see "all other" category in this table) and persons in school during the
survey week and waiting to start new jobs (these are now classified as "not in the labor force").
• See Note, Table C-17 for explanation.
• Not available.
• Beginning January I960, data for Alaska and Hawaii are included.
NOTE.—See Note, Table C-17 for information on area sample used and reporting periods.
Detail will not necessarily add to totals because of rounding.
Source: Department of Labor.
576899 0—61-
-11
«49
TABLE C—20.—Unemployed persons, by duration of unemployment, 7946-60
Duration of unemployment
Period
Total unemployed
4 weeks
and under
5-14
weeks
15-26
weeks
Over 26
weeks
Average
duration
of unemployment
(weeks)
Thousands of persons 14 years of age and over
Old definitions: »
2,270
2,142
2,064
3,395
(2)
1,041
1,087
1,517
1950
1951.
1952
1953
1954
3, 142
1,879
1,673
1,602
3,230
1,307
1,003
925
910
1,303
1955
1956
2,654
2,551
1946
1947
1948
1949
-
C2)
(2)
(3)
234
193
427
141
164
116
256
L055
574
517
482
1,115
425
166
148
132
495
357
137
84
79
317
12.1
9.7
8.3
8.1
11.7
1, 138
1,214
815
805
367
301
336
232
13.2
11.3
321
785
469
239
667
571
10.4
13.8
14.5
704
669
1,195
9.8
8.6
10.0
New definitions: »
1957
1958
1959
-
2, 936
4,681
3,813
1.485
1,833
1,658
890
1,397
1,113
I9604
-
3,931
1,799
1,176
502
454
12.8
1958: First quarter
Second quarter
Third quarter
Fourth quarter
4,955
5,154
4,701
3,915
1,902
2,024
1,785
1,620
1,900
1,377
1,322
986
799
1,126
683
533
354
626
911
776
11.1
13.5
15.3
15.9
1959: First quarter. _ __ _
Second quarter
Third quarter
Fourth quarter
4,612
3,666
3,467
3,506
1,609
1,687
1,626
1,712
1,542
831
1,062
1,021
684
526
311
357
777
623
468
417
15.9
15.2
13.6
12.8
1960: First quarter 4
Second quarter
Third quarter
Fourth quarter
4,095
3,847
3,731
4,050
1,634
1,957
1,741
1,862
1,432
910
1,171
1,190
563
545
403
499
467
435
416
499
13.3
12.5
12.3
13.0
1 See Note, Table O-17 for explanation of differences between the old and new definitions.
2
For duration of less than 6 months, data are available only for under 3 months (1,568,000) and 3 to 6
months (564,000).
34 Not available,
Beginning January 1960, data for Alaska and Hawaii are included.
NOTE.—See Note, Table C-17 for information on area sample used and reporting periods.
Detail will not necessarily add to totals because of rounding.
Source: Department of Labor.
150
TABLE C-21.—Unemployment insurance programs, selected data, 1940-60
All programs
State programs
Insured Total
Cov- unem- benefits Insured
ered
ploypaid
Initial
emment
(mil- unemploy- claims
ploy- (weekly lions
ment'
ment i aver- of dolage) 2 3 lars) 2
Period
Thousands
Exhaustions *
Weekly average,
thousands
Insured unemployment as percent of covered
employment
Benefits paid
AverTotal
age
(mil- weekly
check
Seasonlions
of
Unad- ally ad- dollars) (doljusted justed
lars) 8
Percent
24, 291
28, 136
30, 819
32, 419
31, 714
1,331
842
661
149
111
534.7
358. 8
350.4
80,5
67.2
1,282
814
649
147
105
214
164
122
36
29
50
30
21
4
2
5.6
3.0
2.2
.5
.4
518.7
344.3
344.1
79.6
62.4
10.56
11.06
12.66
13.84
15.90
30, 087
31, 856
33,876
34, 646
33, 098
720
2, 804
1,805
1,468
2,479
574.9
2, 878. 5
1, 785. 0
1,328.7
2, 269. 8
589
1,295
1,009
1,002
1,979
116
189
187
210
322
5
38
24
20
37
2.1
4.3
3.1
3.0
6.2
445.9
1, 094. 9
775.1
789.9
1, 736. 0
18.77
18.50
17.83
19.03
20.48
1950
1951
1952
1953
1954
34, 308
36, 334
37,006
38, 072
36, 617
1,605
1.000
1,069
1,065
2,048
1,467.6
862.9
1,043.5
1 , 050. 6
2, 291. 8
1,503
969
1,024
995
1, 865
236
208
215
218
303
36
16
18
15
34
4.6
2.8
2.9
2.8
5.2
1, 373. 1
840.4
998.2
962.2
2, 026. 9
20.76
21.09
22.79
23. 58
24.93
1955
1956
1957
1958
1959
40, 014
42, 758
43, 447
44, 501
45, 727
1,395
1,318
1, 567
2,766
1,856
1,560.2
1, 540. 6
1, 913. 0
3, 892. 5
2, 651. 7
1, 254
1,212
1,450
2,509
1,682
226
226
268
370
281
25
20
23
50
33
3.5
3.2
3.6
6.4
4.4
1, 350. 3
1, 380. 7
1, 733. 9
3, 512. 7
2, 279. 0
25.04
27.02
28.17
30.58
30.41
I960*
46,600
2,068 3, 020. 7
1,915
332
31
4.8
2, 726. 0
32.75
1959: January
February
March
April
May
June _
43, 962
43, 974
44, 529
45, 226
45, 803
46, 509
2,739
2,596
2,282
1, 936
,593
,414
310.4
280.2
279.6
238.0
182.3
174.6
2,489
2,368
2,077
1,768
1,464
1,298
403
316
255
247
209
221
48
45
44
41
35
30
6.3
6.0
5.3
4.5
3.8
3.4
4.9
4.6
4.3
3.9
3.6
3.5
274.7
251.0
250.6
213.7
162.0
142.9
30.50
30.52
30.38
30.02
29.45
29.23
46, 609
46, 433
46, 455
46, 151
46, 194
46, 873
,477
,451
,370
,479
1,853
2,008
171.5
170.6
177.6
171.5
199.5
250,8
1,333
1,291
1,203
1, 309
1,677
1,841
267
241
213
272
357
358
27
25
25
23
23
27
3.5
3.4
3.1
3.4
4.4
4.8
3.7
4.1
4.1
4.8
5.5
4.8
142.5
133.4
141.8
136.9
168.3
219.5
29.10
29.76
30.49
30.81
32.21
31.91
45, 446
45, 409
745,389
2,359
2,326
2,370
2,078
1,801
1,700
264.4
274.6
314.6
259.6
223.0
216.8
2,180
2,157
2,209
1,939
1,682
1,588
386
301
301
293
264
272
29
30
33
35
31
31
5.6
5.5
5.7
4.9
4.3
4.0
4.3
4.2
4.6
4.2
4.1
4.2
235.2
247.8
287.1
237.4
204.9
198.9
31.90
32.26
32.39
32.50
32.24
32.33
1,826
1,804
1,781
1,839
2,226
2,845
198.7
229.7
230.8
214.9
258.6
350.0
1,686
1,657
1,598
1,678
2,039
2,639
339
306
274
332
396
500
29
28
27
29
31
36
4.3
4.2
4.0
4.2
5.1
6.6
4.6
5.1
5.3
5.9
6.5
6.5
183.8
206.3
201.8
189. 9
231. 1
302.0
32.37
32.99
33.54
33.73
34.01
34.20
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
_
_
July
August
September
October
November
December
1960: January
February
March
April.
May
June
July
August
September
October
November
December «.__
8( )
7
(77)
(7)
()
8( )
7
1 Includes persons under the State, Federal emoloyee (UCFE) (effective January 1955), and Railroad
Retirement Board (RR) programs; beginning October 1958, also includes members of the armed forces,
covered under the program of unemployment compensation for ex-servicemen (UCX).
2 Includes State, UCFE, RR, UCX, UCV (unemployment comoensation for veterans, October 1952January
1960), and SRA (Servicemen's Readjustment Act, September 1944-September 1951) programs.
3
Covered workers who have completed at least 1 week of unemployment.
* Individuals receiving final payments in benefit year.
' For total unemployment only.
«Preliminary.
7 March 1960 is latest month for which data are available for all programs combined; workers covered
by State programs account for about 87 percent of the total.
NOTE.—Data for Alaska and Hawaii included for all periods.
Source: Department of Labor.
576899 0—61-
-12
TABLE C-22.—Number of wage and salary workers in nonagricultural establishments, 1920-60
[Thousands of employees]
Total
wage
and
salary
workers
Period
Manufacturing
Total
Durable
goods
Nondurable
goods
Mining
GovTransFiernCon- porta- Whole- nance, Service
ment
tract tion
sale
insur- and (Fedconand
and
ance, miscel- eral,
struc- public retail
and
State,
tion utili- trade 2 real lane2
and
ties
estate ous
local)
(3)
1,078
1,497
3,907
6,401
1,431
3,127
3,066
1,000
864
722
735
874
1,372
1,214
970
809
862
3, 675
3,243
2,804
2,659
2,736
6,064
5,531
4,907
4,999
5,552
1,398
1,333
1,270
1,225
1,247
3,084
2,913
2,682
2,614
2,784
3,149
3,264
3,225
3,167
3,298
912
,145
,112
,055
,150
2,771
2,956
3,114
2,840
2,912 J
5, 692
6,076
6,543
6,453
6, 612
1,262 2,883
1, 313 3,060
1,355 3,233
1, 347 3, 196
1,399 «3,321
3,477
3,662
3,749
3,876
3,995
1929
31,041
10,534
(8)
1930
1931
1932
1933
1934
29,143
26, 383
23, 377
23,466
25, 699
9,401
8,021
6,797
7,258
8,346
8
1935
1936
J937
1938
1939
26, 792
28,802
30, 718
28,902
30, 311
8,907
9, 653
10,606
9, 253
10, 078
1940
1941 .
1942
1943
1944
32, 058
36,220
39, 779
42, 106
41, 534
10,780
12, 974
15, 051
17, 381
17,111
5,337
6,945
8,804
11,077
10, 858
5,443
6,028
6,247
6,304
6,253
916
947
983
917
883
,294
,790
,170
,567
,094
3,013
3,248
3,433
3,619
3,798
6,940
7.416
7, 333
7,189
7,260
1,436
1,480
1,469
1,435
1,409
3,477
3, 705
3,857
3, 919
3,934
4,202
4,660
5,483
6,080
6,043
1945
1946
1947
1948
1949 .
40, 037
41,287
43, 462
44, 448
43, 315
15, 302
14, 461
15,290
15, 321
14, 178
9,079
7,739
8,372
8,312
7,473
6,222
6,722
6,918
7,010
6,705
826
852
943
982
918
,132
,661
,982
2,169
2,165
3,872
4,023
4,122
4,141
3,949
7,522
8,602
9,196
9, 519
9,513
1,428
1,619
1,672
1,741
1,765
4,011
4,474
4,783
4,925
4,972
5,944
5,595
5,474
5,650
5,856
1950
1951
1952
1953
1954
44, 738
47, 347
48, 303
49,681
48, 431
14, 967
16, 104
16,334
17,238
15,995
8,085
9,080
9,340
10, 105
9,122
6,882
7,024
6,994
7,133
6,873
889
916
885
852
777
2,333
2,603
2,634
2,622
2,593
3,977
4,166
4, 185
4,221
4,009
9,645
10, 012
10,281
10, 527
10,520
1,824
1,892
1,967
2,038
2,122
5,077
5,264
5,411
5,538
5,664
6,026
6,389
6,609
6,645
6,751
1955
1956
1957
1958
1959
50, 056
51,766
52,162
50,543
4
51, 975
16, 563
16,903
16, 782
15,468
16, 168
9,549
9,835
9,821
8,743
9,290
7,014
7,068
6,961
6,725
6,878
777
807
809
721
676
2,759
2,929
2,808
2,648
2,767
4,062
4,161
4,151
3,903
3,902
10,846
11, 221
11, 302
11, 141
11,385
2,219
2,308
2,348
2,374
2,425
5,916
6,160
6,336
6,395
6,525
6,914
7,277
7,626
7,893
8,127
« 52, 895
16,338
9,432
6,906
664
2,770
3,901
11,645
2,485
6,637
8,455
-..
I960'
()
8( )
8
(')
(»)
(')
(»)
(»)
(«)
888
(8)
(")8
937
(8)
1,006
()
882
(')
(8)
4,683 5,394
845
%
Seasonally adjusted
1958: January
February _._
March
April
May
June
_
July
August
SeptemberOctober
November..
December. .
51,223
50,575
50,219
50,054
50,147
50,315
15, 965
15, 648
15, 389
15, 243
15, 202
15, 275
9,155
8,895
8,717
8,566
8,498
8,556
6,810
6,753
6,672
6,677
6,704
6,719
766
747
733
723
718
713
2,652
2,455
2,573
2,624
2,698
2,698
4,045
3,990
3,930
3,890
3,877
3,888
11, 305
11, 235
11,116
11,050
11,087
11, 105
2,368
2,367
2,360
2,356
2,370
2,367
6,368
6,367
6,330
6,352
6,360
6,392
7,754
7,766
7,788
7,816
7,835
7,877
50.411
50, 570
50,780
50,582
50,877
50,844
15, 312
15, 330
15, 529
15,358
15, 693
15, 701
8,596
8,605
8,801
8,625
8,937
8,956
6,716
6,725
6,728
6,733
6,756
6,745
709
701
707
708
708
709
2,693
2,711
2,698
2,698
2,690
2,550
3,877
3,867
3,858
3,887
3,875
3,859
11, 121
11, 175
11,151
11,154
11, 119
11, 143
2,363
2,377
2,392
2,392
2,386
2,385
6,433
6,420
6,440
6,399
6,426
6,448
7,903
7,989
8,005
7,986
7,980
8,049
See footnotes at end ofjtable, p. 153.
152
TABLE C-22.—Number of wage and salary workers in nonagricultural establishments, 7929-60*—
Continued
[Thousands of employees]
Period
Total
wage
and
salary
workers
Manufacturing
Total
Durable
goods
Non- Mindura- ing
ble
goods
TransCon- porta- Wholesale
tract tion
conand
and
struc- public retail
tion utili- trade 2
ties
Finance,
insurance,
and
real
estate
Service
and
miscellaneous 2
Government
(Federal,
State,
and
local)
Seasonally adjusted
51,086
51, 194
51, 456
51, 887
52, 125
52, 407
15, 764
15, 819
16,006
16, 182
16, 372
16, 527
9,007
9,049
9,192
9,319
9,462
9,573
6,757
6,770
6,814
6,863
6,910
6,954
704
693
688
701
708
709
2,650
2,626
2,719
2,829
2,787
2,799
3,894
3,880
3,885
3,886
3,917
3,928
11, 216
11, 279
11, 263
11, 333
11, 363
11, 425
2,387
2,395
2,398
2,403
2,413
2,418
6,443
6,462
6,441
6,479
6,486
6,525
8,028
8,040
8,056
8,074
8,079
8,076
July
August
September..
October
November. .
December...
52, 558
52, 023
52, 154
52, 002
52, 253
52, 674
16, 580
16, 037
16, 141
16, 022
16, 174
16, 436
9,635
9,094
9,214
9,129
9,266
9,542
6,945
6,943
6,927
6,893
6,908
6,894
714
633
617
621
657
665
2,800
2,814
2,776
2,762
2,792
2,800
3,920
3,893
3,899
3,900
3,902
3,917
11, 465
11, 529
11, 464
11, 478
11, 452
11, 486
2,426
2,437
2,452
2,453
2,450
2,450
6,570
6,549
6,584
6,549
6,593
6,613
8,083
8,131
8,221
8,217
8,233
8,307
1960: January
February.-.
March
April
May
June
52,880
52, 972
52, 823
53, 128
53, 105
53, 140
16, 562
16, 567
16, 509
16, 527
16, 540
16, 498
9,655
9,667
9,603
9,552
9,537
9,499
6,907
6,900
6,906
6,975
7,003
6,999
658
669
666
684
684
678
2,775
2,781
2,601
2,752
2,783
2,790
3,941
3,933
3,920
3,924
3,927
3,926
11, 594
11, 627
11, 595
11, 652
11, 675
11, 712
2,454
2,464
2,456
2,463
2,469
2,471
6,606
6,616
6,577
6,611
6,618
6,645
8,290
8,315
8,499
8,515
8,409
8,420
53, 145
53,046
52,998
52,809
52, 588
52, 224
16, 417
16, 265
16, 275
16, 132
16,031
15, 800
9,452
9,338
9,391
9,266
9,194
9,047
6,965
6,927
6,884
6,866
6,837
6,753
658
665
660
656
645
638
2,858
2,835
2,800
2,804
2,789
2,624
3,910
3,892
3,879
3,879
3,853
3,822
11,736
11,764
11, 665
11,668
11, 575
11, 554
2,480
2,499
2,515
2,514
2,511
2,516
6,682
6,652
6,665
6,632
6,662
6,681
8,404
8,474
8,539
8,524
8,522
8,589
1959: January
February. .March
April
May
June
July____—
August
September. .
October
November55.
December .
i Includes all full- and part-time wage and salary workers in nonagricultural establishments who worked
during, or received pay for, any part of the pay period ending nearest the 15th of the month. Excludes
proprietors, self-employed persons, domestic servants, and unpaid family workers. Not comparable with
estimates of nonagricultural employment of the civilian labor force (Table C-17) which include proprietors,
self-employed persons, domestic servants, and unpaid family workers; which count persons as employed
when they are not at work because of industrial disputes, bad weather, etc.; and which are based on a
sample survey of households, whereas the estimates in this table are based on reports from employing
establishments.
* Beginning with 1939, data are not strictly comparable with data shown for earlier years because of the
shift of the automotive repair service industry from the trade to the service division.
a Not available.
4
Inclading data for Alaska and Hawaii, the number of wage and salary workers in 1959 was 52,205,000
and in 1960, 53,135,000. Monthly data, seasonally adjusted, for 1960 are (in thousands):
April
53,362
July
53,407
October
53,047
January
53,108
February
53,201
May
53,344
August
53,304
November
52,822
March
53,052
June
53,388
September
53,242
December
52,456
8
Preliminary.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Labor.
153
TABLE C-23.—Average weekly hours of work in selected industries, 1929-60
Retail
trade
Build- (except
ing
I TeleWhole- Bitumieating
nous Class
2
consale
rail- phone
coal roads
and
Non- structrade
i
Durable
drinkmining
Total goods durable tion
ing
goods
places)
Manufacturing
Period
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
I9606
-._
...
.
.
-_
.__
_
__
_.
_
--.
-.
.
--.
44.2
42.1
40.5
38.3
38.1
34.6
36.6
39.2
38.6
35.6
37.7
38.1
40.6
42.9
44.9
45.2
43.4
40.4
40.4
40.1
39.2
40.5
40.7
40.7
40.5
39.7
40.7
40.4
39.8
39.2
40.3
39.7
(3)
(3)
(3)
32.6
34.8
33.9
37.3
41.0
40.0
35.0
38.0
39.3
42.1
45.1
46.6
46.6
44.1
40.2
40.6
40.5
39.5
41.2
41.6
41.5
41.3
40.2
41.4
41.1
40.3
39.5
40.8
40.1
(3)
(3)
(3)
41.9
40.0
35.1
36.1
37.7
37.4
36.1
37.4
37.0
38.9
40.3
42.5
43.1
42.3
40.5
40.1
39.6
38.8
39.7
39.5
39.6
39.5
39.0
39.8
39.5
39.1
38.8
39.6
39.1
(3)
(3)
(33)
(3)
()
28.9
30.1
32.8
33.4
32.1
32.6
33.1
34.8
36.4
38.4
39.6
39.0
38.1
37.6
*37.3
36.7
36.3
37.2
38.1
37.0
36.2
36.2
36.4
36.1
35.7
35.8
35.6
42.5
42.1
41.1
40.3
40.4
40.3
40.7
40.3
40.3
40.4
40.5
40.2
39.9
39.2
39.1
39.0
38.6
38.1
38.1
38.1
37.6
(3)
(3)
(33)
(3 )
(3 )
()
41.3
42.6
42.8
4 42. 2
41.7
41.2
41.0
41.3
42.2
42.9
42.7
41.5
41.0
40.9
40.7
40.7
40.7
40.6
40.5
40.4
40.6
40.4
40.2
40.1
40.3
40.2
38.4
33.5
28.3
27.2
29.5
27.0
26.4
28.8
27.9
23.5
27.1
28.1
31.1
32.9
36.6
43.4
42.3
41.6
40.7
38.0
32.6
35.0
35.2
34.1
34.4
32.6
37.6
37.8
36.6
33.9
36.4
36.1
38.2
38.1
38.1
38.1
38.1
38.1
38.2
38.0
38.1
37.9
37.9
37.9
37.5
37.6
37.6
37.9
37.6
37.6
37.6
37.7
37.6
37.6
37.9
(3)
40.2
40.0
40.2
40.1
40.3
40.5
40.6
40.5
40.5
40.5
40.4
40.5
40.0
39.8
39.9
40.1
40.2
40.3
40.6
40.5
40.4
40.3
40.3
(3)
36.3
35.6
35.2
35.2
36.7
38.8
32.5
36.7
35.2
37.9
35.8
40.9
38.7
37.3
38.8
37.4
36.4
37.1
37.3
35.0
33.2
34.1
32.0
(3)
(3)
(33)
(3)
()
(33)
()
(3)
(33)
(3)
()
42.7
40.0
40.2
40.4
40.6
40.7
40.6
40.3
40.4
40.0
40.1
39.7
40.2
40.4
40.0
39.9
39.6
40.1
39.9
39.9
39.7
39.3
39.5
39.0
38.5
40.6
40.6
40.8
41.1
41.2
41.2
40.8
40.8
40.6
40.8
39.9
40.6
41.2
40.7
40.3
40.1
40.5
40.2
40.2
40.0
39.7
40.1
39.4
38.8
39.5
39.6
39.7
40.1
40.1
39.8
39.6
39.8
39.4
39.3
39.5
39.5
39.6
39.2
39.0
39.1
39.7
39.5
39.4
39.2
38.7
38.8
38.7
37.9
35.5
35.5
35.6
36.2
35.9
36.1
35.6
36.0
35.1
35.3
35.6
36.7
35.1
35.8
34.8
36.0
35.4
35.6
36.0
35.8
35.3
35.9
35.2
(3)
1
(3)
(33)
()
(3)
8( )
3
(3)
38.8
38.9
39.1
39.5
40.1
40.5
41.9
42.3
541.7
39.4
37.4
39.2
38.538.9
39.1
38.5
38.7
38.9
39.6
39.5
39.0
38.4
39.2
39.5
(3)
(33)
()
(33)
()
39.4
41.0
42.7
42.6
41.6
41.8
41.8
42.1
42.2
42.9
42.9
42.8
42.9
42.6
41.9
41.5
41.2
41.1
41.1
40.5
40.1
40.3
40 3
39.7
39.2
39.7
39.5
Unadjusted
Seasonally adjusted
1959: January
February
March
April
May. __
June
July
August
September. __
October
November...
December
1960: January
February
March _ __
April
May
June
July
August. -. .
September...
October
November 66 _ _
December ._
(3)
(33)
()
(33)
(3 )
()
(3)
(33)
( 3)
()
43.7
44.3
45.8
47.0
48.7
48.9
48.5
46.0
46.4
46.2
43.7
40.8
41.0
40.6
40.6
40.8
41.9
41.7
41.7
41.6
41.9
41.8
Laundries
41.6
42.4
41.5
42.1
41.3
42.8
42.6
40.7
41.8
41.6
41.1
42.8
41.0
42.7
42.9
41.6
41.7
42.8
41.0
42.6
40.6
40.9
(33)
()
38.3
38.9
38.4
38.4
38.8
39.0
39.4
39.2
40.6
39.9
40.7
39.2
38.8
39.2
39.1
38.9
39.2
39.4
39.8
39.5
40.8
40.0
40.2
(3)
39.3
39.0
39.4
39.9
40.4
40.1
39.5
39.6
39.8
39.8
39.3
39.7
39.2
39.1
38.9
40.0
39.9
39.9
39.8
39.4
39.4
39.7
39.0
(3)
Averages are based upon monthly data (exclusive of switching and terminal companies) summarized
in the M-300 report by the ICC and relate to all employees who received pay during the month, except
executives, officials, and staff assistants (ICC Group I). Beginning September 1949, data reflect a reduction
in the basic workweek from 48 to 40 hours.
2
Prior to April 1946, data relate to all employees except executives: from April 1945 to May 1949, mainly
to employees subject to the Fair Labor Standards Act; and beginning June 1949, to nonsupervisory employees only.
54 Not available.
Data beginning with January of year noted are not comparable with those for earlier periods.
• Nine-month average, April through December, because of new series started in April 1945.
8
Preliminary.
NOTE.—Data are for production workers in manufacturing and mining, construction workers in building
construction, and for nonsupervisory employees in other industries (except as noted). Data are for pay
period ending nearest the 15th of the month.
The annual figures for I960 are simple arithmetic averages of the monthly figures shown and are not
strictly comparable with the averages for earlier years, which have been weighted by data on employment.
See Table C-26 for unadjusted average weekly hours in manufacturing.
Source: Department of Labor.
154
TABLE C- 24.—Average gross hourly earnings in selected industries, 7929-60
Manufacturing
Period
Retail
Build- trade
Bitu- ClassI
ing (except Whole- minous
Tele- 2 Laun- Agrirail- phone
Non- con- eating
sale
culcoal roads
dries ture'
Dura- duraand
i
structrade
mining
Total ble
tion
drinking
ble
goods goods
places)
1929
$0.566
(4)
(4)
(4)
4
4
1930
.552
f 4)
C4 )
(4)
1931
.515
(44)
()
()
1932
.446 $0.497 $0.420
(4)
1933
.442
.472
.427
()
1934
..
.532
.515 $0.795
.556
.815
1935
.550
.577
.530
.824
1936
.556
.586
.529
1937
.624
.903
.674
.577
1938
.908
.584
.627
.686
.932
1939
.698
.633
.582
.958
1940
.661
.724
.602
1941
.729
.808
.640 1.010
1942
.723 1.148
.853
.947
1943
.961
.803 1.252
.059
1944
- .861 1.319
1.019
.117
1945
.023
.111
.904 1.379
1946
1.478
.086
.156 1.015
1947
.292 1.171 5 1.681
.237
1948
.350
.410 1.278 1.848
1949
.401
.469 1.325 1.935
1950
.465
.537 1.378 2.031
1951
.67
1.48
2.19
.59
1952
1.54
2.31
.67
.77
1953
2.48
.87
.77
1.61
1954
.81
.92
1.66
2.60
1955
2.66
.88
1.71
2.01
1956.98
2.80
2.10
1.80
1957
2.96
1.88
2.07
2.20
1958
2.28
1.94
3.10
2.13
1959
3.22
2.22
2.38
2.01
7
I960
3.36
2.29
2.45
2.08
1959: January
2.19
2.35
3.19
1.98
February
2.36
1.98
3.18
2.20
March
2.22
2.38
3.17
2.00
April.
2.23
3.17
2.39
2.00
May
2.23
3.17
2.40
2.00
June
2.24
3.17
2.40
2.00
July
2.23
2.39
2.01
3.20
August
2.19
2.35
2.00
3.23
September
2.22
2.37
2.03 3.26
October
2.21
2.02
2.36
3.27
November
2.23
2.38
3.28
2.03
December
2.27
2.04
2.43
3.30
1960: January
2.29
2.46
2.05
3.32
February
2.29
2.45
2.05
3.33
March
2.29
3.38
2.45
2.06
April
2.28
2.44
3.32
2.06
May
2.29
2.44
3.34
2.07
June. .
2.29
2.08
3.34
2.45
July
2.08
2.29
3.37
2.45
August
2.27
2.07
3.37
2.43
September
2.30
2.46
2.09
3.40
October __
3.42
2.30
2.46
2.09
3.41
November ?___ 2.30
2.46
2.10
December '_-. 2.32
2.11
2.47
(4)
(4)
(44)
( 4)
()
(44)
()
8
8
$0.542
.553
.580
.626
.679
.731
.783
.893
1.009
.088
.137
.176
.26
.32
.40
.45
.50
.57
.64
.70
.76
.81
.74
.74
.74
.75
.76
.77
.77
.77
.78
.78
.77
.73
1.79
1.79
1.79
1.79
1.81
1.82
1.82
1.81
1.82
1.83
1.82
(4)
$0.681
(4)
(4)
(4)
4
.684
(4)
(44)
(44)
.647
(4)
(4)
(4)
.520
()
()
( 4)
.501
(44)
(44)
(4)
.673
()
()
()
4
$0.648
.745
(44)
(4)
.794
.667
()
(4 )
.698
.856
( 4) $0.774
5
.878
.816
.700
C)
.886 $0.730
.715
.822
.883
.827
.739
.733
.793
.993
.743
.820
.843
.860 1.059
.837
.933 1.139
.852
.870
.948
.911
.985 1.186
1.029 1.240
.955 «.962
1.124
1.150 1.401 1.087
1.268 1.636 1.186 1.197
1.359 1.898 1.301 1.248
1.414 1.941 1.427 1.345
1.483 2.010 1.572 1.398
2.21
1.58
1.73
1.49
1.67
2.29
1.83
1.59
1.77
2.48
1.88
1.68
2.48
1.76
1.83
1.93
2.56
1.96
1.82
1.90
2.81
2.12
1.86
2.01
3.02
2.10
2.26
1.95
3.02
2.44
2.17
2.05
2.18
2.24
2.54
3.25
2.30
3.27
2.26
2.60
3.16
2.54
2.11
2.20
2.58
2.12
3.17
2.20
2.22
3.19
2.53
2.13
3.26
2.15
2.23
2.52
2.24
3.27
2.54
2.17
2.18
2.25
3.26
2.53
2.26
2.52
2.19
3.23
2.26
3.29
2.54
2.19
2.54
2.27
3.29
2.20
2.22
2.26
3.26
2.53
2.21
2.27
3.30
2.60
3.31
2.23
2.27
2.57
2.22
2.27
3.29
2.60
2.61
2.23
2.27
3.27
2.56
2.24
2.29
3.28
2.58
2.22
3.27
2.29
2.58
2.24
3.27
2.30
3.28
2.58
2.24
2.31
2.62
2.32
3.26
2.26
2.26
2.31 3.26
2.59
2.34
3.26
2.64
2.33
2.30
2.33 3.27
2.65
2.32
3.24
2.30
(44)
(4)
(4)
()
(4)
$0.241
(4)
.226
(44)
.172
(4)
.129
( 4)
.115
()
$0.378
.129
.142
.376
.378
.152
.172
.395
.414
.166
.422
.166
.169
.429
.444
.206
.268
.482
.538
.353
.423
.605
.472
.648
.515
.704
.547
.767
.817
.580
.559
.843
.861
.561
.92
.625
.94
.661
.98
.672
.661
1.00
.675
1.01
.705
1.05
.728
1.09
.757
1.13
.798
1.17
1.22
.818
.865
1.15
1.15
1.16
.718
1.16
1*17
1717
.796
1.17
1.17
1.18
1.18
.806
1.18
1.19
.896
1.20
1.20
1.20
1.20 ~~.~75i
1.22
1.22
.812
1.22
1.22
1.23
1.23 ""."820
1.23
(4)
* Averages are based upon monthly data (exclusive of switching and terminal companies) summarized in
the M-300 report by the ICC and relate to all employees who received pay during the month, except executives, officials, and staff assistants (ICC group I). Beginning September 1949, data reflect a wage rate
increase
and reduction in the basic workweek from 48 to 40 hours.
3
Prior to April 1945, data relate to all employees except executives; from April 1945 to May 1949, mainly to
employees subject to the Fair Labor Standards Act; and beginning June 1949, to nonsupervisory employees
only.
» Weighted average of all farm wage rates on a per hour basis.
*1 Not available.
Data beginning with January of year noted are not comparable with those for earlier periods.
* Nine-month average, April through December, because of new series started in April 1945.
i Preliminary.
NOTE.—Data are for production workers in manufacturing and mining, construction workers in building
construction, and for all nonsupervisory employees hi other industries (except as noted). Data are for pay
period ending nearest the 15th of the month.
The annual figures for 1960 are simple arithmetic averages of the monthly figures shown and are not
strictly comparable with the averages for earlier years, which have been weighted by data on man-hours
Sources: Department of Labor and Department of Agriculture.
155
TABLE C-25.—Average gross weekly earnings in selected industries, 1929-60
Manufacturing
Period
Total
1929
1930
1931
1932
1933
1934
1935. .
1936
1937
1938.
1939
1940
1941
1942
___
1943
1944
1945
1946.
1947
1948
1949
1950.
1951
1952
1953
1954
1955
1956
1957
1958
1959
I9606
1959: January
February
March
April
..
May
June
__ .
July....
August
September
October
November
December
1960: January
February
March
. _
April
May
June.
July
August
September
October
November68 . _
December ...
$25.03
23.25
20.87
17.05
16.73
18.40
20.13
21.78
24.05
22.30
23.86
25.20
29.58
36.65
43.14
46.08
44.39
43.82
49.97
54.14
54.92
59.33
64.71
67.97
71.69
71.86
76.52
79.99
82.39
83.50
89.47
90.91
87.38
88.00
89.24
89.87
90.32
91.17
89.65
88.70
89.47
89.06
88.98
92.16
92.29
91.14
90.91
89.60
91.37
91.60
91.14
90.35
91.08
91.31
90.16
90.02
Retail
trade
Build- (except
Bitumiing
eating
Whole- nous Class I Tele- Launconand
rail- phone 2 dries
Dura- Nonsale
coal roads
drink- trade mining
i
ble durable struction
goods goods
ing
places)
$27.22
24.77
21.28
16.21
16.43
18.87
21.52
24.04
26.91
24.01
26.50
28.44
34.04
42.73
49.30
52.07
49.05
46.49
52.46
57.11
58.03
63.32
69.47
73.46
77.23
77.18
83.21
86.31
88.66
90.06
97.10
98.25
94.94
95.11
97.10
97.75
98.64
99.36
96.80
95.88
96.70
96.52
95.44
99.87
100. 86
98.98
98.74
97.36
98.58
98.98
97.76
97.20
98.15
98.89
97.42
97.07
$22. 93
(3)
21.84
(33)
20.50
(3)
17.57
(3)
16.89
()
18.05 $22. 97
19.11 24.51
19.94
27.01
21.53
30.14
21.05
29.19
21.78
30.39
22.27
31.70
24.92
35.14
29.13
41.80
34.12
48.13
37.12
52.18
38.29
53.73
41.14
56.24
46.96
63.30
50.61 « 68. 85
51.41
70.95
54.71
73.73
58.46
81.47
60.98
88.01
63.60
91.76
64.74
94.12
68.06
96.29
71.10 101. 92
73.51 106. 86
75.27 110. 67
79.60 115. 28
81.33 119. 62
77.81 111. 65
78.01 108. 12
79.00 110. 95
79.00 114. 44
79.40 115. 39
79.60 116. 66
80.00 116. 16
80.20 119. 19
80.79 116. 71
79.79 117. 72
80.39 114. 14
81.19 119. 13
80.77 114. 87
79.95 114. 22
79.93 115.60
79.52 119. 19
81.35 119.6l
82.16 121. 24
82.37 123. 68
81.77 123. 68
81.72 122. 40
81.51 125. 17
81.48 117. 30
80.60
(3)
(3)
(33)
(3)
()
(33)
()
8( )
3
(3)
$23. 14
23.50
24.42
25.73
27.36
29.53
31.55
36.35
40.66
43.85
45.93
47.63
50.65
52.67
54.88
56.70
58.50
60.60
62.48
64.77
67.06
68.06
66.29
65.95
65.95
66.33
66.70
67.79
68.68
68.32
67.82
67.11
66.38
66.09
66.95
66.95
66.95
67.48
67.69
68.80
69.52
69.32
68.43
68.44
68.25
(3)
(3)
(33)
()
$27. 72
26.11
26.37
26.76
28.41
29.87
< 29. 54
29.82
30.45
32.51
35.52
39.37
42.26
43.94
47.73
51.99
55.58
57.55
60.36
64.31
67.80
71.69
73.93
77.14
81.20
84.42
87.02
90.27
92.46
88.44
88.00
89.24
89.42
90.27
91.13
91.76
91.53
91.94
91.53
91.71
91.94
90.80
90.35
91.37
91.83
92.46
93.09
94.19
93.56
94.13
93.90
93.50
(3)
$25. 72
22.21
17.69
13.91
14.47
18.10
19.58
22.71
23.84
20.80
23.88
24.71
30.86
35.02
41.62
51.27
52.25
58.03
66.59
72.12
63.28
70.35
77.79
78.09
85.31
80.85
96.26
106. 22
110.53
102. 38
118. 30
118.05
114. 71
112. 85
112. 29
114. 75
120. 01
126. 49
104. 98
120. 74
115. 81
123. 55
118. 14
135. 38
127. 32
121. 97
127. 26
122. 30
119. 03
121. 69
121.60
114. 10
108. 23
111.51
103.68
(3)
(3)
(3)
(33)
(33)
()
(3)
(3)
(33)
(3)
()
()
(3)
3
(3)
(33)
(3)
()
$30.03
(3)
31.74
()
32.14
$31.90
32.67
32.47
32.88
34.03
34.14
39.34
36.45
41.49
38.54
46.36
46.32 « 40. 12
44.29
50.00
55.03
44.77
48.92
60.11
62.36
51.78
64.14
54.38
70.93
58.26
61.22
74.30
65.02
76.33
78.74
68.46
82.12
72.07
73.47
88.40
94.24
76.05
101.50
78. 72
106. 43
85.46
108.68
89.27
105. 66
80.81
109. 39
82.47
81.79
105.00
106. 09
82. 56
84.20
104.90
108. 28
85.02
107. 35
86.29
103. 38
85.85
89.32
106. 17
105. 25
88.58
106. 86
89.95
87.42
110.00
86.14
106. 60
87.42
111.45
109. 82
87.58
107. 33
86.36
107. 59
87.81
110. 42
88.26
107. 42
89.95
110. 33
89.27
107. 18
95.47
92.00
108. 39
92.46
(33)
()
(3)
(3)
(33)
( 3^
(3)
()
$14. 89
15.42
16.14
16.83
17.22
17,64
17.93
18.69
20.34
23.08
25.95
27.73
30.20
32.71
34.23
34.98
35.47
37.81
38.63
39.69
40.10
40.70
42.32
43.27
44.30
46.45
48.19
45.20
44.85
45.70
46.28
47.27
46.92
46.22
46.33
46.96
46.96
46.37
47.24
47.04
46.92
46.68
48.00
48.68
48.68
48.56
48.07
48.46
48.83
47.97
(3)
1 Averages are based upon monthly data (exclusive of switching and terminal companies'* summarized in
the M-300 report by the ICC and relate to all employees who received pay during the month, except executives, officials, and staff assistants (ICC group I). Beginning September 1949, data reflect a wage rate
increase and reduction in the basic workweek from 48 to 40 hours.
2 Prior to April 1945, data relate to all employees except executives: from April 1945 to May 1949, mainly
to employees subject to the Fair Labor Standards Act; and beginning June 1949, to nonsupervisory employees
only.
3
Not available.
4
Data beginning with January of year noted are not comparable with those for earlier periods.
• Nine-month average, April through December, because of new series started in April 1945.
• Preliminary.
NOTE.—Data are for production workers in manufacturing and mining, construction workers in building construction, and for nons'ipervisory employees in other industries (except as noted). Data are for
pay period ending nearest the 15th of the month.
The annual figures for 1960 are simple arithmetic averages of the monthly figures shown and are not
strictly comparable with the averages for earlier years, which have been weighted by data on man-hours.
Source: Department of Labor.
156
TABLE C-26.—Average weekly hours and hourly earnings, gross and excluding overtime, in
manufacturing industries, 1939-60
All manufacturing
industries
Average
weekly
hours
Period
Gross
37.7
0)
1940
1941
1942 .
1943
1944
38.1
40.6
42.9
44.9
45.2
0)
1945
1946
1947
1948
1949
.
-
1955
1956
1957
1958
1959
1960S
.
1959: January
February
March _
April
May.
June.
July
August
September
October
November
December
1960: January
February
March
April
May
June.
_
July
.
August
September
October
November 33
December
Average
hourly
earnings
Average
weekly
hours
Average
hourly
earnings
Average
weekly
hours
Average
hourly
earnings
ExExExExExExeludcludcludcludcludcluding Gross ing Gross ing Gross ing Gross ing Gross ing
overoveroveroveroverovertime
time
time
time
time
time
1939
1950
1951
1952
1953
1954
Durable goods manufac- Nondurable goods manuturing industries
facturing industries
37.4
(i)
.724 0)
.808 $0. 770
.947 .881
1.059 .976
1.117 1.029
37.0
38.9
40.3
42.5
43.1
0)
0)
0)
(0
0)
1.111 21.042
.156 1.122
.292 1.250
.410 1.366
.469 1.434
42.3
40.5
40.1
39.6
38.8
0)
0)
0)
0)
0)
.904
1.015
1.171
1.278
1.325
2.858
.981
1.133
1.241
1.292
1.480
1.60
1.70
1.80
1.86
39.7
39.5
39.6
39.5
39.0
8
80)
1.378
1.48
1.54
1.61
1.66
1.337
1.43
1.49
1.56
1.61
2.01
2.10
2.20
2.28
2.38
1.93
2.03
2.14
2.23
2.30
39.8
39.5
39.1
38.8
39.6
0)
37.0
36.7
36.6
36.9
1.71
1.80
1.88
1.94
2.01
1.66
1.75
1.83
1.89
1.94
40.1
37.7 2.45
2.38
39.1
36.7 2.08
2.01
40.4
40.3
40.8
40.9
41.1
41.4
38.1
37.9
38.2
38.3
38.3
38.4
2.35
2.36
2.38
2.39
2.40
2.40
2.29
2.29
2.31
2.31
2.32
2.32
39.3
39.4
39.5
39.5
39.7
39.8
36.9
37.0
36.9
37.0
37.1
37.1
1.98
1.98
2.00
2.00
2.00
2.00
1.92
1.92
1.93
1.94
1.94
1.94
40.5
40.8
40.8
40.9
40.1
41.1
37.8
37.8
37.8
38.1
37.6
38.4
2.39
2.35
2.37
2.36
2.38
2.43
2.31
2.27
2.28
2.28
2.31
2.35
39.8
40.1
39.8
39.5
39.6
39.8
37.0
37.2
36.8
36.7
36.9
37.1
2.01
2.00
2.03
2.02
2.03
2.04
1.95
1.93
1.95
1.95
1.96
1.97
2.21
2.21
2.22
2.22
2.22
2.22
41.0
40.4
40.3
39.9
40.4
40.4
38.1
37.7
37.8
37.8
38.0
38.1
2.46
2.45
2.45
2.44
2.44
2.45
2.37
2.37
2.38
2.38
2.37
2.38
39.4
39.0
38.8
38.6
39.3
39.5
36.8
36.5
36.4
36.4
36.8
37.0
2.05
2.05
2.06
2.06
2.07
2.08
1.98
1.99
2.00
2.01
2.01
2.01
2.22
2.21
2.23
2.23
2.24
39.9
40.0
39.9
40.2
39.6
39.3
37.6
37.7
37.4
37.8
37.6
37.4
2.45
2.43
2.46
2.46
2.46
2.47
2.38
2.37
2.39
2.39
2.39
0)
39.6
39.5
39.1
39.0
38.8
38.2
37.0
37.0
36.5
36.5
36.5
36.1
2.08
2.07
2.09
2.09
2.10
2.11
2.02
2.01
2.02
2.03
2.04
0)
38.0
0)
.661 0)
.729 $0.702
.853 .805
.961 .894
1.019 .947
39.3
42.1
45.1
46.6
46.6
0)
43.4
40.4
40.4
40.1
39.2
1.023
1.086
1.237
1.350
1.401
2.963
1.051
1.198
1.310
1.367
44.1
40.2
40.6
40.5
39.5
40.7
40.7
40.5
39.7
80)
0)
1.465
1.59
1.67
1.77
1.81
1.415
1.53
1.61
1.71
1.76
41.2
41.6
41.5
41.3
40.2
40.7
40.4
39.8
39.2
40.3
0)
37.6
37.4
37.2
37.6
1.88
1.98
2.07
2.13
2.22
1.82
1.91
2.01
2.08
2.15
41.4
41.1
40.3
39.5
40.8
0)
38.1
37.9
37.6
38.1
39.7
37.3 2.29
2.22
39.9
40.0
40.2
40.3
40.5
40.7
37.6
37.6
37.6
37.7
37.8
37.8
2.19
2.20
2.22
2.23
2.23
2.24
2.13
2.13
2.15
2.16
2.16
2.16
40.2
40.5
40.3
40.3
39.9
40.6
37.5
37.6
37.3
37.5
37.3
37.9
2.23
2.19
2.22
2.21
2.23
2.27
2.16
2.12
2.14
2.14
2.16
2.20
40.3
39.8
39.7
39.3
39.9
40.0
37.5
37.2
37.2
37.2
37.5
37.5
2.29
2.29
2.29
2.28
2.29
2.29
39.8
39.8
39.6
39.7
39.2
38.8
37.4
37.4
37.1
37.2
37.0
36.8
2.29
2.27
2.30
2.30
2.30
2.32
80)
0)
0)
0)
0)
0)
0)
40.5 0)
$0.633
(>)
0)
80)
0)
0)
0)
0)
8
80)
0)
0)
$0. 698
.537
.67
.77
.87
.92
0)
$0. 582
0)
.602 0)
.640 $0.625
.723 .698
.803 .763
.861 .814
1 Not available.
2
Eleven-month average; August 1945 excluded because of VJ Day holiday period.
* Preliminary.
NOTE.—Data relate to production workers and are for pay period ending nearest the 15th of the
month.
The annual figures for 1960 are simple arithmetic averages of the monthly figures shown and are not
strictly comparable with the averages for earlier years, which have been weighted by data on employment
(in the case of hours) and man-hours (in the case of earnings).
See Table C-23 for seasonally adjusted average gross weekly hours.
Source: Department of Labor.
157
TABLE C—27.—Average weekly earnings, gross and spendable, in manufacturing industries,
in current and 1960 prices, 7939-W
Average spendable weekly earnings 2
Average gross weekly
earnings
Period
Current
prices
1960
prices l
Worker with no
dependents
Current
prices
1960
prices 1
Worker with three
dependents
Current
prices
1960
prices!
1939.
$23.86
$50.77
$23.58
$50. 17
$23. 62
$50.26
1940
1941
1942
1943
1944
25.20
29.58
36.65
43.14
46.08
53.16
59.40
66.52
73.74
77.45
24.69
28.05
31.77
36.01
38.29
52.09
56.33
57.66
61.56
64.35
24.95
29.28
36.28
41.39
44.06
52.64
58.80
65.84
70.75
74.05
1945
1946
1947
1948
1949
44.39
43.82
49.97
54.14
54.92
73.01
66.39
66.10
66.59
68.22
36.97
37.72
42.76
47. 43
48.09
60.81
57.15
56.56
58.34
59.74
42.74
43.20
48.24
53.17
53.83
70.30
65.45
63.81
65.40
66.87
1950
1951
1952
1953
1954
59.33
64.71
67.97
71.69
71.86
72.98
73.70
75.69
79.22
79.14
51.09
54.04
55.66
58.54
59.55
62.84
61.55
61.98
64.69
65.58
57.21
61.28
63.62
66.58
66.78
70.37
69.79
70.85
73.57
73.55
1955
1956
1957
1958
1959
76.52
79.99
82.39
83.50
89.47
84.46
87.04
86.64
85.47
90.74
63.15
65.86
67.57
68.46
72.83
69.70
71.66
71.05
70.07
73.86
70.45
73.22
74.97
75.88
80.36
77.76
79.67
78.83
77.67
81.50
_
_
I9603
-
90.91
90.91
73.50
73.50
81.05
81.05
1959: January
February
March
April
May
June
_
87.38
88.00
89.24
89.87
90.32
91.17
89.25
89.89
91.15
91.70
92.07
92.56
71.20
71.69
72.65
73.14
73.49
74.15
72.73
73.23
74.21
74.63
74.91
75.28
78.70
79.19
80.18
80.68
81.03
81.71
80.39
80.89
81.90
82.33
82.60
82.95
89.65
88.70
89.47
89.06
88.98
92.16
90.74
89.87
90.28
89.69
89.52
92.81
72.97
72.23
72.83
72.51
72.45
74.92
73.86
73.18
73.49
73.02
72.89
75.45
80.50
79.75
80.36
80.03
79.97
82.50
81.48
80.80
81.09
80.59
80.45
83.08
92.29
91.14
90.91
89.60
91.37
91.60
93.03
91.69
91.46
89.78
91.46
91.51
74.56
73.67
73.49
72.48
73. 85
74.03
75.16
74.11
73.93
72.63
73.92
73.96
82.14
81.23
81.05
80.01
81.41
81.59
82.80
81.72
81.54
80.17
81.49
81.51
91.14
90.35
91.08
91.31
90.16
90.02
90.96
90.17
90.81
90.68
89.44
(<)
73. 67
73.06
73.62
73.80
72.91
72.81
73.52
72.91
73.40
73.29
72.33
(4)
81.23
80.61
81.18
81.36
80.46
80.35
81.07
80.45
80.94
80.79
79.82
(*)
_
July
August. _ _ _ _ _ _ _
September
October
November
December
_. _ _
I960* January
February
March
April
May
June
July
August
September
October
November 33
December
-_
.
_.
-
1 Estimates in current prices divided by the consumer price index on a 1960 base (using 11-month average).
Average gross weekly earnings less social security and income taxes.
Preliminary.
Not available.
NOTE.—Data relate to production workers and are for pay period ending nearest the 15th of the month.
The annual figures for 1960 are simple arithmetic averages of the monthly figures shown and are not
strictly comparable with the averages for earlier years, which have been weighted by data on man-hours.
Source: Department of Labor.
2
8
4
158
TABLE G—28.—Labor turnover rates in manufacturing industries, 7930-60
[Rates per 100 employees]
Separation rates
Accession rates
Period
Total i
1930
1931
1932
1933
1934
3.1
3.1
3.3
5.4
4.7
1935...
1936...
4.2
4.4
1937
1938
1939
_
,
1940
1941
1942
1943
1944
3.6
3.8
4.1
4.4
5.4
7.6
7.5
6.1
_
1945
1946
_.
1947-.
5.1
1948
1949
4.4
3.5
1950
1951
1953
1954
_
8
8( )
8
8( )
Total»
Quits
Layoffs
5.0
4.0
4.4
3.8
4.1
1.6
.9
.7
3.0
2.9
3.5
2.7
3.0
3
3.6
3.4
4.4
4.1
3.1
1.1
1.3
.6
.8
2.5
2.1
3.0
3.4
2.2
3
3.4
3.9
6.5
7.3
6.8
.9
2.0
3.8
5.2
5.1
2.2
1.3
1.1
.6
.6
8.3
6.1
4.8
4.6
4.3
5.1
4.3
3.4
2.8
1.5
2.3
1.2
1.0
1.3
2.4
8
8
I
4.4
3.9
3.0
3.4
3.3
3.0
1.6
3.5
4.4
4.1
4.3
3.5
1.9
2.4
2.3
2.3
1.1
1.1
1.2
1.1
1.3
1.9
3.7
3.4
2.9
3.0
3.6
2.4
2.3
1.8
1.3
2.0
3.3
3.5
3.6
3.6
3.4
1.6
1.6
1.4
.9
1.3
1.2
1.5
1.7
2.3
1.6
4.4
4.4
1952....
1955
1956
1957
1958
1959
6.3
6.7
New hires
I960 «
3.1
1.7
3.6
1.1
1.9
1959: January
February
March
April
May
June
3.3
3.3
3.6
3.5
3.6
4. 4
1.5
1.7
1.9
2.0
2.2
3.0
3.1
2.6
2.8
3.0
2.9
2.8
.8
1.0
1.1
1.3
1.3
1.7
1.3
1.3
1.3
1.1
1.0
3.3
3.9
3.9
3.1
3.0
3.8
2.2
2.5
2.6
2.0
1.5
1.3
3.3
3.7
4.3
4.7
4.1
3.1
1.3
1.8
2.2
1.4
1.0
.9
1.4
1.4
1.5
2.8
2.6
1.7
3.6
2.9
2.7
2.8
3.2
3.9
1.9
1.7
1.5
1.4
1.7
2.3
2.9
3.0
3.7
3.6
3.3
3.3
1.0
1.0
1.0
1.1
1.1
1.1
1.3
1.5
2.2
2.0
1.6
1.7
2.9
3.8
3.8
2.8
2.1
1.7
1.9
1.9
1.5
3.6
4.3
4.4
3.8
3.7
1.1
1.5
1.9
1.0
.7
2.0
2.2
2.0
2.2
2.5
July
August
September
October
November
December
1960: January
February
March
April
May
June
,.
July
August
September
October
November *
,
_
1
Includes rehires and other accessions, not published separately.
2
Includes discharges and miscellaneous separations, not published
1
4 Not available.
January-November average.
8
Preliminary.
Source: Department of Labor.
159
separately.
PRODUCTION AND BUSINESS ACTIVITY
TABLE C-29.—Industrial production indexes, 1947-60
[1957=100]
Industry groupings
Manufacturing
Period
Total
industrial
production i
Durable manufactures
Total
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
- _
-
.
I9602
Total
Primary
metals
FabriTrans- Instruments Clay, Furnicated
porta- and
ture
Mare- glass,
tion
metal chinery
and
lated
and
prodequip- nrodmiscellumber laneous
ucts
ment
ucts
65.3
68.0
64.3
66.1
68.6
64.8
61.8
64.4
58.5
80.8
84.1
70.8
74.9
76.2
68.8
62.6
63.8
56.7
40.3
44.0
44.2
54.8
56.4
50.3
77.7
81.8
74.1
75.3
79.3
73.4
74.5
80.8
83.8
90.8
85.4
75.5
81.5
84.8
92.1
85.8
71.3
80.3
85.1
96.0
85.0
89.1
96.9
88.5
100.3
81.3
84.2
90.0
87.8
98.8
88.8
69.7
79.6
88.4
96.4
84.3
52.9
59.0
68.6
86.2
78.7
58.5
67.1
79.7
87.0
84.7
89.9
94.3
91.6
95.1
92.0
85.8
82.1
84.4
91.9
89.0
96.0
99.3
100.0
92.9
104.9
96.7
99.5
100.0
92.4
105. 3
97.9
100.0
100.0
86.8
101.5
105.5
103.7
100.0
78.0
89.5
96.9
97.4
100.0
91.6
103.9
92.6
102.8
100.0
85.2
102.8
95.9
91.5
100.0
84.2
97.8
90.5
97.3
100.0
94.1
112.2
103.3
104.7
100.0
96.5
111.3
100.3
103.5
100.0
95.6
111.7
108.0
108.2
104.3
90.5
106.0
106.4
101.7
118.8
108.5
116.1
Seasonally adjusted
1959: January
February
Marrh
April
May
June . .
July _
August
September
October .
November
December
1960: January
February
March
April
May
June
July.
August
September
October
November 2
December ...
100.3
101.9
103.6
106.6
109.2
109. 6
100.0
101.9
103.9
107.1
109.9
110.4
96.2
98.3
101.5
104.9
109.1
109.8
91.9
101.7
109.3
113. 5
121.9
117. 5
99.3
99.3
101.4
104.2
109.3
111.6
92.3
94.1
95.9
99.6
103.6
106.6
95.9
95.9
98.8
101.9
104.5
104.6
102.7
103. 5
104.8
106.2
109.5
114.0
103.3
103.6
107.8
112.5
114.2
114.1
105.6
105.6
106.7
109.7
112. 5
113.8
107.6
103.6
103.2
102.0
102.6
108.8
108.4
104.1
103.7
102.2
102.4
109.2
105. 2
97.8
96.9
95.5
95.8
106.7
80.7
46.8
45.2
43.9
79.3
113.8
110.6
106.3
105. 8
99.1
95.3
105.1
108.2
106.8
107.8
106.7
104.4
108.2
105. 5
101.5
98.4
97.8
78.9
93.0
115.4
115. 9
117.0
118.2
118.6
120.0
117.6
114.2
112.4
111.3
110.5
112.5
116.2
113.9
113.0
113.6
114.1
115. 5
111.0
109.6
109.1
108.8
109.8
109.4
111.8
110.3
109.6
109.1
110.3
109.8
110.9
109.4
107.8
106.0
107.1
105.3
115.4
109.8
101.7
99.0
93.6
87.5
108.6
108.1
106.6
103.8
107.9
108.4
109.7
108.0
108.4
106.8
108.5
108.6
107. 5
106.9
103.9
102.3
106.4
101.6
118.4
117.3
118.6
117.0
119.5
120.6
111.6
111.6
107.6
111.7
110.7
112.1
116.3
115.3
115.2
117.2
119.3
120.1
109.5
108.4
106.8
106.3
104.6
103.1
109.9
108.4
106.7
106.2
104.2
102.5
105.6
103.7
101.9
100.8
98.2
96.0
85.1
82.8
79.8
78.3
73.8
71.0
108.7
107.7
105.8
105.4
101.5
100.0
110.0
107.2
105.4
102.0
102.3
100.0
101.5
101.3
101.5
102.5
96.9
93.0
121.4
122.0
118.2
118.6
118.5
116.0
113.0
108.6
106.6
105.5
102.7
101.0
120.3
118.0
113.8
114.9
112.9
110.0
See footnotes at end of table, p. 161.
160
TABLE C-29.—Industrial production indexes, 1947-60—Continued
11957=100]
Industry groupings
Period
Market groupings
Manufacturing
Final products
Nondurable manufactures
Consumer
goods
ChemMin- UtilTexical,
tile,
ing ities
ap- Paper petro- Foods,
beverTo- parel, and leum, ages,
tal
and print- and
toleather ing rubber and
prodprod- bacco
ucts
ucts
Total
Equip- Mament, terials
Auto- includTo- motive ing
tal prod- defense
ucts
1947
1948
1949
70.0
72.3
71.1
83.5
87.1
83.1
68.1
70.9
70.8
50.6
54.1
52.7
83.4
82.7
83.6
76.4
80.3
71.2
38.9
43.4
46.3
64.8
67.3
65.1
69.6
71.8
71.4
66.0
69.0
68.4
53.0
55.7
49.7
65.8
68.9
63.6
1950
1951
1952
1953
1954
79.1
81.7
83.3
86.9
86.9
91.9
90.1
92.2
93.6
89.6
78.4
81.1
79.4
84.5
86.9
64.7
71.8
74.5
80.2
79.3
86.5
88.3
90.2
91.2
92.8
79.5
87.3
86.5
88.8
86.2
52.7
60.1
65.2
71.1
76.5
73.5
79.3
85.2
90.7
86.5
81.5
80.6
82.5
88.1
87.2
86.1
76.2
68.6
86.8
80.8
53.9
75.0
90.0
96.1
85.0
75.4
82.2
82.7
90.8
84.4
1955
1956
1957
1958 .
1959
95.0 98.4
98.9 101.1
100.0 100.0
99.9 99.2
110.3 115.2
94.6
99.3
100.0
99.2
107.6
91.8
96.3
100.0
98.8
112.7
96.2 94.8 85.4 94.6 96.5 112.5
99.8 100.1 93.6 98.9 98.7 93.0
100.0 100.0 100.0 100.0 100.0 100.0
102.1 91.4 104.5 95.1 99.0 82.5
106.5 95.3 115.0 106.5 110.0 102.8
90.9
99.1
100.0
87.3
99.5
97.1
99.7
100.0
91.0
103.5
I9602
113.5 115.1
111.6
117.8
109.4
96.8 123.9 110.7 114.7 117.1
102.8
105.6
Seasonally adjusted
1959: January
February
March
April
May
June - - July
August
September
October
November
December
1960: January
February
March
April
May
June
July.
August
September
October
November
December 2 _ _ .
105.0
106.7
107.2
110.0
110.8
111.1
109.1
109.4
110.9
115.6
117.8
118.6
102.4
104.6
104.1
107.2
107.6
106.7
105.7
107.7
109.8
110.1
111.2
114.9
103.4
105.3
104.4
108.3
108.1
105.5
97.0
95.8
95.6
97.9
99.5
97.8
111.0
111.5
112.0
112.5
114.1
116.1
101.6
102.1
103.1
106.1
107.7
108.2
106.2
106.7
107.3
110.6
111.3
111.4
104.2
100.6
105.9
108.2
109.5
113.1
92.4
93.0
94.7
96,9
100.4
101.9
99.1
101.6
104.2
107.6
110.2
110.2
112.7
112.7
112.8
111.3
111.3
112.4
120.2
117.3
116.0
115.1
116.2
117.3
109.2
109.8
110.6
110.0
108.5
110.5
117.2
115.9
117.0
114.5
114.1
115.1
105.7
108.3
108.0
106.2
107.2
107.8
93.6
91.1
90.6
91.4
96.0
98.4
116.4
115.5
116.8
116.6
117.5
119.8
109.4
108.9
108.7
108.6
106.3
109.1
112.3 115.6
112.1 105.3
98.4
111.8
111.6 105.3
108.9 72.5
112.6 99.2
103.5
102.5
102.6
102.6
101.1
102.4
105.9
98.1
98.7
96.7
100.4
108.8
113.1
111.5
112.0
113.2
114.7
115.8
116.4
114.3
115.1
116.1
118.3
118.9
111.3
110.4
109.6
110.3
112.1
112.0
116.3
114.8
115.6
117.9
119.1
122.4
109.0
107.2
108.0
108.5
109.7
109.8
97.8
96.0
95.8
97.8
96.8
97.2
120.2
120.7
123.6
123.1
122.0
123.6
111.7
109.7
110.0
110.8
112.3
112. 2
116.0
113.4
113.2
115.1
116.5
116.8
127.3
122.2
114.0
117.2
120.5
121.2
103.0
102.3
103.5
102.3
104.1
103.2
110.3
109.4
108.2
107.5
107.3
106.4
115.6
114.8
113.1
113,4
112.3
111.5
118.7
117.1
112.1
112.1
111.3
110.0
112.3
112.2
112.3
112.8
112.0
112.0
122.0
120.2
117.5
117.1
116.2
115.0
109.6
109.7
109.9
111.1
109.2
109.0
97.5
98.0
96.4
96.9
96.9
96.0
124.5
125.8
126.6
125.5
125.8
126.0
112.0
111.1
110.3
110.7
109.6
108.0
115.9
115.1
114.0
114.8
113.2
112.0
113.7
115.4
116.5
121.1
111.8
104.0
104.3
103.1
103.0
102.7
102.4
100.0
106.2
105.1
103.7
102.9
101.1
99.5
1 Annual indexes for 1929-46 are, respectively: 38, 32, 26, 21, 24, 26, 31, 36, 40, 31, 38, 44, 56, 69, 82, 81, 70,
and
59.
2
Preliminary.
Source: Board of Governors of the Federal Reserve System.
161
TABLE C-30.—Business expenditures for new plant and equipment, 1939 and 1945-61
[BiUions of dollars]
Manufacturing
Period
Total i
Total
1939
1945
1946
1947 . .
1948—1949
..
1950
1951
1952
1953
1954
1955
1956
1957
1958 3
19593
,
I960 34
Transportation
Dura- Non- Mining
ble durable
goods goods
Railroad
Other
Public
utilities
Commercial
and
other 2
5.51
1.94
0.76
1.19
0.33
0.28
0.36
0.52
2.08
8.69
14.85
20.61
22.06
19.28
3.98
6.79
8.70
9.13
7.15
1.59
3.11
3.41
3.48
2.59
2.39
3.68
5.30
5.65
4.56
.38
.43
.69
.88
.79
.55
.58
.89
1.32
1.35
.57
.92
1.30
1.28
.89
.50
.79
1.54
2.54
3.12
2.70
5.33
7.49
6.90
5.98
20.60
25.64
26.49
28.32
26.83
7.49
10.85
11.63
11.91
11.04
3.14
5.17
5.61
5.65
5.09
4.36
5.68
6.02
6.26
5.95
.71
.93
.98
.99
.98
1.11
1.47
1.40
1.31
.85
.21
.49
.50
.56
.51
3.31
3.66
3.89
4.55
4.22
6.78
7.24
7.09
8.00
8.23
28.70
35.08
36.96
30.53
32.54
11.44
14.95
15.96
11.43
12.07
5.44
7.62
8.02
5.47
5.77
6.00
7.33
7.94
5.96
6.29
.96
1.24
1.24
.94
.99
.92
1.23
1.40
.75
.92
.60
.71
1.77
1.50
2.02
4.31
4.90
6.20
6.09
5.67
9.47
11.05
10.40
9.82
10.88
35.74
14.45
7.20
7.25
1.01
1.02
1.94
5.74
11.59
Seasonally adjusted annual rates
1958: First quarter
Second quarter
Third quarter
Fourth quarter
32.41
30,32
29.61
29.97
13.20
11.53
10.86
10.58
6.58
5.57
5.16
4.86
6.62
5.96
5.70
5.72
1.00
.92
.88
.97
1.02
.77
.63
.58
1.69
1.40
1.29
1.62
5.87
5.97
6.10
6.26
9.63
9.73
9.85
9.96
1959: First quarter
Second quarter
Third quarter
Fourth quarter
30.60
32.50
33.35
33.60
11.20
11.80
12.25
12.85
5.25
5.75
5.85
6.15
5.95
6.05
6.40
6.70
.95
.95
1.00
1.05
.65
1.00
1.30
.85
1.70
2.10
2.15
2.15
5.80
5.80
5.60
5.50
10.35
10.85
11.05
11.20
I960* First quarter
Second quarter
Third quarter
Fourth quarter *
35.15
36.30
35.90
35.6
14.10
14.70
14.65
14.3
7.15
7.40
7.35
6.9
6.95
7.30
7.30
7.4
1.00
1.05
1.00
1.0
1.00
1.10
1.00
1.0
2.00
2.15
1.90
1.8
5.75
5.70
5.60
5.9
11.35
11.60
11.75
11.7
34.9
14.3
7.1
7.2
1.0
.7
1.6
5.7
11.7
1961* First quarter
4
_
1 Excludes agriculture.
23 Commercial and other includes trade, service, finance, communications, and construction.
Annual total is the sum of unadjusted quarterly expenditures; it does not necessarily coincide with the
average of seasonally adjusted figures. See footnote 4.
* Estimates for fourth quarter 1960 and first quarter 1961 based on anticipated capital expenditures reported by business in late October and Novembef 1960. The quarterly anticipations include adjustments,
when necessary, for systematic tendencies in anticipatory data.
NOTE.—These figures do not agree precisely with the plant and equipment expenditures included in the
gross national product estimates of the Department of Commerce. The main difference lies in the inclusion
in the gross national product of investment by farmers, professionals, and institutions, and of certain outlays charged to current account.
This series is not available for years prior to 1939 and for 1940 to 1944.
Detail will not necessarily add to totals because of rounding.
Sources: Securities and Exchange Commission and Department of Commerce.
l62
TABLE G-31.—New construction activity, 1929-60
[Value put in place, millions of dollars]
Private construction
Period
Total
new
construction
Resi- Nonresldential building and other construction
dential
Total i building
(nonComIndus- Public Other »
Total mercial
* trial
farm)
utility
Public
construction
•29
10f 793
8,307
3,625
4,682
1,135
949
1,578
1,020
2,486
>30
)31
8,741
6,427
3,538
2,879
3,720
5,883
3,768
1,676
1,231
1,509
2,075
1,565
630
470
625
3,808
2,203
1,046
761
884
893
454
223
130
173
532
221
74
176
191
1,527
946
467
261
326
856
582
282
194
194
2,858
2,659
1,862
1,648
2,211
4,232
6,497
6,999
6,980
8,198
1,999
2,981
3,903
3,560
4,389
1,010
1,565
1,875
1,990
2,680
989
1,416
2,028
1,570
1,709
211
290
387
285
292
158
266
492
232
254
363
518
705
605
683
257
342
444
448
480
2,233
3,516
3,096
3,420
3,809
8,682
11, 957
14, 075
8,301
5,259
5,809
12,627
17,901
23, 243
24, 183
29, 947
32,700
34, 670
37,019
39,362
44, 164
45, 779
47, 795
48,903
54,322
5,054
6,206
3,415
1,979
2,186
3,411
10,396
14, 582
18,539
17, 914
23,081
23, 447
23,889
25,783
27, 684
32,440
33, 067
33, 778
33, 491
38, 131
2,985
3,510
1,715
885
815
1,276
4,752
7,535
10, 122
9,642
14,100
12, 529
12, 842
13, 777
15, 379
18, 705
17, 677
17, 019
18, 047
22, 309
2,069
2,696
1,700
1,094
1,371
2,135
5,644
7,047
8,417
8,272
8,981
10, 918
11,047
12,006
12, 305
13, 735
15,390
16, 759
15, 444
15, 822
348
409
155
33
56
203
1,153
957
1,397
1,182
1,415
1,498
1,137
1,791
2,212
3,218
3,631
3,564
3,589
3,908
442
801
346
156
208
642
1,689
1,702
1,397
972
1,062
2,117
2,320
2,229
2,030
2,399
3,084
3,557
2,382
2,102
771
872
786
570
725
827
1,374
2,338
3,043
3,323
3,330
3,729
4,043
4,475
4,289
4,363
4,893
5,414
5,105
5,033
508
614
413
335
382
463
1,428
2,050
2,580
2,795
3,174
3,574
3,547
3,511
3,774
3,755
3,782
4,224
4,368
4,779
3,628
5,751
10,660
6,322
3,073
2,398
2,231
3,319
4,704
6,269
6,866
9,253
10, 781
11,236
11, 678
11, 724
12, 712
14,017
15,412
16, 191
56,206
55, 017
39, 949
38, 956
24, 469
22, 067
15,480
16, 889
3,930
4,064
2,106
2,861
5,052
5,312
4,392
4,652
16, 257
16,061
82
m
)34
&5
937
938
939
940
941
942
943
944
t
945
946
947
948
.949 ... _._ .
.950 .
1951
1952
1953
1954
1955
1956
1957
1958
1959
New series: 4
1959
I9605
4
Seasonally adjusted annual rates (New series )
1959:
January
February
March
April
May
Tune
July
\ugust
September
October
November
December
1960:
January
February
March
April
May.
_ __
June
July
August
September
October
November s8
December
55,540
54, 893
55, 924
56,830
57, 470
58,046
57, 893
57, 449
55, 767
54, 809
54, 346
55, 436
37, 933
37, 776
38, 413
39, 462
40, 309
40, 914
41, 403
41,483
40,596
39,890
39, 702
40, 127
23,233
23,009
23,606
24, 507
24, 996
25, 204
25, 415
25, 290
24, 983
24, 507
24, 016
23,901
14, 700
14, 767
14, 807
14, 955
15, 313
15, 710
15,988
16, 193
15, 613
15,383
15, 686
16, 226
3,644
3,698
3,680
3,765
3,986
4,095
4,159
4,148
3,948
3,876
3,888
4,020
1,886
1,887
1,881
1,901
1,986
2,093
2,196
2,289
2,184
2,208
2,316
2,448
4,989
5,029
5,073
5,072
5,043
5,125
5,136
5,152
5,040
4,872
4,980
5,184
4,181
4.153
4, 173
4,217
4,298
4,397
4,497
4,604
4,441
4,427
4,502
4,574
17,607
17, 117
17, 511
17,368
17, 161
17, 132
16,490
15,966
15, 171
14, 919
14,644
15,309
54,726
54,889
54, 419
54,166
55, 260
55, 189
55,390
55, 298
55, 325
54,736
55,011
54,835
39, 894
39, 709
39, 263
38, 722
38, 916
39, 103
39, 035
38,660
38, 697
38, 331
38,665
38,884
23, 244
22, 536
22, 392
21, 930
22, 180
22, 362
22, 308
21,783
21, 716
21, 228
21,496
21, 978
16, 650
17, 173
16, 871
16, 792
16, 736
16, 741
16, 727
16, 877
16, 981
17, 103
17, 169
16,906
4,140
4,356
4,116
4,056
3,960
3,881
3,870
3,922
4,036
4,133
4,198
4,214
2,556
2,748
2,772
2,772
2,760
2,788
2,868
2,934
3,041
3,084
3,036
2,982
5,232
5,292
5,232
5,256
5,316
5,405
5,364
5,406
5,285
5,261
5,282
5,320
4,722
4,777
4,751
4,708
4,700
4,667
4,625
4, 615
4,619
4,625
4, 653
4,390
14,832
15, 180
15,156
15, 444
16, 344
16,086
16, 355
16,638
16, 628
16, 405
16, 346
15, 951
1
Excludes construction expenditures for crude petroleum and natural gas well drilling, and therefore does
not
agree with the new construction expenditures included in the gross national product. (See Table C-l.)
2
Office buildings, warehouses, stores, restaurants, and garages.
3 Farm, institutional, and all other.
* New series beginning January 1959 not comparable with prior data. In addition to major differences
between old and new series, data for Alaska and Hawaii are included beginning January 1959. For details,
see8 Construction Activity, C 30-13, Bureau of the Census, August 1960.
Preliminary.
Source: Department of Commerce.
163
TABLE C-32.—-New public construction activity, 1929-60
[Value put in place, millions of dollars]
Total new public construction
1
Federal
Period
State
All
and
public
sources Direct Federal local
aid
Major types of new public construction
Sewer Conand
Hoswater servapital
tion
High- Educa- and
and
way
tional institu- miscel- and
detional laneous
public velopment
service
Military
facilities
All
other
public 2
1929.
2,486
155
80
2,251
1,266
389
101
404
115
19
192
1930
1931
1932
1933
1934
2,858
2,659
1,862
1,648
2,211
209
271
333
516
626
104
235
111
286
721
2,545
2,153
1,418
846
864
1,516
1,355
958
847
1,000
364
285
130
52
148
118
110
83
49
51
500
479
291
160
228
137
156
150
359
518
29
40
34
36
47
194
234
216
145
219
1935
1936
1937
1938
1939
2,233
3,516
3,096
3,420
3,809
814
797
776
717
759
567
1,566
1,117
1,320
1,377
852
1,153
1,203
1,383
1,673
845
1,362
1,226
1,421
1,381
153
366
253
311
468
38
74
73
97
127
246
509
445
492
507
700
658
605
551
570
37
29
37
62
125
214
518
457
486
631
1940
1941
1942
1943
1944.
3,628
5,751
10, 660
6,322
3,073
1,182
3,751
9,313
5,609
2,505
946
697
475
268
126
1,500
1,303
872
445
442
1,302
1,066
734
446
362
156
158
128
63
41
54
42
35
44
58
469
393
254
156
125
528
500
357
285
163
385
1,620
5,016
2,550
837
734
1,972
4,136
2,778
1,487
1945
1946
1947
1948
1949
2,398
2,231
3,319
4,704
6,269
1,737
870
840
1,177
1,488
99
244
409
417
461
562
1,117
2,070
3,110
4,320
398
764
1,344
1,661
2,015
59
101
287
618
934
85
85
77
213
458
152
278
492
699
803
130
260
424
670
852
690
188
204
158
137
884
555
491
685
1,070
1950
1951
1952
1953
1954
6,866
9,253
10, 781
11, 236
11,678
1,625
2,981
4,185
4,134
3,418
465
479
620
713
730
4,776
5,793
5,976
6,389
7,530
2,134
2,353
2,679
3,015
3,680
1,133
1,513
1,619
1,714
2,134
499
527
495
369
333
819
959
958
1,050
1,171
942
912
900
892
773
177
887
1,387
1,290
1,003
1,162
•2, 102
2,743
2,906
2,584
1957
11, 724
1956.. . _ 12, 712
14, 017
15,412
J958
19593
16, 257
2,777
2,728
2,991
3,419
3,842
778
911
1,385
2,244
2,790
8,169
9,073
9,641
9,749
9,625
3,861
4,395
4,892
5,500
5,916
2,442
2,556
2,825
2, 875
2,656
300
300
354
390
428
1,318
1, 659
1,737
1,838
2,018
701
826
971
1,019
1,130
,287
,360
,287
,402
,488
1,815
1,616
1,951
2,388
2,621
I9604--... 16, 061
3,619
2,361
10, 081
5,685
2,820
400
2,139
1,230
1,324
2,463
1955
1
For expenditures classified by ownership, combine "Federal aid" and "State and local" columns to
obtain State and local ownership. "Direct" column stands as it is for Federal ownership.
2 Includes nonresidential building other than educational and hospital and institutional (industrial,
commercial, public administration, social anu recreational, and miscellaneous), public residential buildings,
and publicly owned parks and playgrounds, memorials, etc.
3 Beginning with 1959, data include estimates for Alaska and Hawaii. Comparability with earlier data
is not seriously affected since these two States accounted for less than one-half of one percent of total new
public construction in 1959.
* Preliminary.
Source: Department of Commerce.
164
TABLE C—33.—Housing starts and applications for financing, 1929-60
[Thousands of units]
Total housing
starts (farm and
nonfarm)
Nonfarm housing starts
Period
Total
private Private
and
public i
Total
private
and
public !
Private
Total
Government
programs
FHA
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1959
1960 7
1959: January
February
March
April .
May
June
_
July
August _ _ _ _
September
October
__ November
December
I960' January
February - _ _ March
April
May
June
_
July
August
September
October 7
November t
December '_..._
(5)
1, 553. 5
1, 285. 5
99.2
100.0
130.7
155.9
156.0
153.4
149.7
142.4
140.0
123.3
106.5
96.4
88.4
90.2
93.3
125.2
130.0
127.3
114.9
129.6
102.3
112.0
97.3
75.0
509.0
330.0
254.0
134.0
93.0
126.0
221.0
319.0
336.0
406.0
515.0
602.6
706.1
356.0
191.0
141.8
209.3
670.5
849.0
931.6
1, 025. 1
1, 396. 0
1, 091. 3
1, 127. 0
1, 103. 8
1, 220. 4
1, 328. 9
1,118.1
1, 041. 9
1, 209. 4
1, 378. 5
(•)
New series 6
1,516.8 1, 531. 3
1, 248. 2 1, 261. 9
96.2
98.3
99.0
99.0
129.4
127.7
154.3
150.7
154.3
152.5
152. 1
147.8
148.1
146.7
138.2
142.0
136.3
136. 1
121.2
120.0
104.3
104.7
95.6
93.6
84.3
87.1
88.8
87.9
90.2
92.3
123.4
123.5
128.2
127.3
122.2
125.7
113.2
111.1
127.5
124.8
100.3
96.7
109.2
108.9
96.3
95.7
73.0
72.5
VA
509.0
330.0
254.0
134.0
93.0
126.0
215.7
304.2
332.4
399.3
458.4
529.6
619.5
301.2
183.7
138.7
208.1
662.5
845.6
913.5
988.8
1, 352. 2
1, 020. 1
1, 068. 5
1, 068. 3
1, 201. 7
1, 309. 5
1, 093. 9
992.8
1,141.5
1, 342. 8
14.0
49.4
60.0
118.7
158.1
180.1
220.4
165.7
146.2
93.3
41.2
69.0
229.0
294.1
363.8
486.7
263.5
279.9
252.0
276.3
276.7
189.3
168.4
295.4
332.5
« 8. 8
91.8
160.3
71.1
90.8
191.2
148.6
141.3
156. 5
307.0
392.9
270.7
128.3
102.1
109.3
1, 494. 6
1, 224. 6
95.3
98.0
126.4
149.1
150.8
146.5
145.1
137.8
132.4
117.9
102.5
92.8
83.0
86.5
89.2
121.7
125.5
120.6
109.4
122.7
94.7
106.1
94.7
70.5
332.5
261.0
19.8
20.0
30.0
33.5
34.4
34.8
31.7
31.3
29.8
26.8
20.3
20.0
15.9
17.6
21.9
25.4
25.2
26.5
23.6
26.3
21.9
22.6
20.2
13.9
109.3
74.6
6.9
6.2
9.7
11.0
10.3
11.0
10.6
9.9
10.0
9.4
7.9
6.4
4.1
4.8
5.2
7.3
6.9
7.7
7.4
8.2
6.8
5.9
5.5
4.8
Private housing starts,
seasonally
adjusted annual rates
Total
farm
and
nonfarm
Proposed
home construction *
VA
FHA
apNon- applifarm cations praisal
requests
3
20 6
47 8
49 8
131 1
179.8
231 2
288.5
238 5
144 4
62.9
56.6
121.7
286.4
293.2
327.0
397.7
192.8
267.9
253.7
338.6
306.2
197.7
198.8
341.7
369.7
(55)
( 6)
( 5)
( 5)
()
(5)
164.4
226.3
251.4
535.4
620.8
401.5
159.4
234.2
234.0
369.7
242.4
25.5
29.5
38.9
39.1
38.2
60.2
29.0
25.6
25.5
24.1
16.1
18.2
16.3
21.1
27.4
22.5
22.4
23.7
19.6
22.9
20.1
18.3
14.8
13.2
234.0
142.9
17.9
21.0
23.2
18.9
20.7
27.2
26.0
21.2
17.9
16.7
12.2
11.1
11.2
12.9
12.9
13.7
14.4
15.2
8.5
12.4
11.6
10.0
10.3
10.0
New series 6
1,5S8
1,546
1,598
1,613
1,597
1,577
1,578
1,450
1,509
1,578
1,S56
1,451
1,866
1,367
1,112
1,327
1,333
1,302
1,182
1,292
1,066
1,258
1,235
1,100
1,517
1,529
1,580
1,599
1,580
1,563
1,546
1,446
1,468
1,354
1,828
1,401
1,291
1,347
1,098
1,307
1,315
1,285
1,164
1,273
1>044
1,217
1,221
1,075
1 Military housing starts, including those financed with mortgages insured by FHA under Section 803 of
the National Housing Act, are included in total private and public starts but excluded from total private
starts and from FHA starts.
23 Units in mortgage applications for new home construction.
FHA program approved in June 1934; all 1934 activity included in 1935.
4
Monthly estimates for September 1945-May 1950 were prepared by Housing and Home Finance Agency.
* Not available.
e In addition to major differences between old and new series arising from revisions in sources and
methods, new series includes data for Alaska and Hawaii. For details, see Housing Starts, C20-11 (Supplement), Bureau of the Census, May 1960.
7 Preliminary: December and year 1960 estimated by Council of Economic Advisers.
Sources: Department of Commerce, Federal Housing Administration (FHA), Veterans Administration
(VA), and Housing and Home Finance Agency (except as noted).
165
TABLE G-34.—Sales and inventories in manufacturing and trade, 1939-60
[Amounts in billions of dollars]
Total manufacturing and trade 1
Manufacturing
Wholesale trade »
Retail trade 1
Period
InvenInvenInvenSales 2 Inventories 3 Ratio* Sales 2 tories 3 Ratio* Sales 2 tories3 Ratio* Sales 2 tories 3 Ratio*
1939...
10.8
20.1
1.77
5.1
11.5
2.11
2.2
3.1
1.34
3.5
5.5
1.53
1940
1941
1942
1943 .
1944
12.1
15.8
18.6
21.9
23.8
22.2
28.8
31.1
31.3
31.1
.72
.58
.66
.40
.33
5.9
8.2
10.4
12.8
13.8
12.8
17.0
19.3
20.1
19.5
2.06
1.78
1.77
1.51
1.45
2.4
3.0
3.4
3.8
4.2
3.2
4.0
3.8
3.7
3.9
1.30
1.20
1.19
.97
.94
3.9
4.6
4.8
5.3
5.9
6.1
7.8
8.0
7.6
7.6
.49
.48
.76
.43
.31
1945. .
1946...
1947
1948
1949
23.9
27.2
33.2
36.1
34.5
30.9
42.9
50.5
55.4
51.8
.30
.33
.43
.48
.56
12.9
12.6
15.9
17.6
16.4
18.4
24.5
28.9
31.7
28.9
1.48
1.66
1.71
1.72
1.86
4.5
6.0
7.3
7.5
7.2
4.6
6.6
7.6
7.9
7.6
.91
.90
1.01
1.01
1.07
6.5
8.5
10.0
10.9
10.9
7.9
11.9
14.1
15.8
15.3
.21
.13
.27
.40
.43
1950
1951
1952
1953
1954
. . 39.7
44.7
45.9
48.4
47.4
62.8
73.8
75.4
78.6
75.5
.39
.58
1.61
1.61
1.62
19.3
22.3
22.8
24.5
23.5
34.3
42.8
43.8
45.4
43.0
1.57
1.77
1.90
1.84
1.86
8.4
9.4
9.6
9.8
9.7
9.1
9.7
10.0
10.5
10.4
.96
1.05
1.01
1.06
1.07
12.0
13.0
13.5
14.1
14.1
19.3
21.2
21.6
22.7
22.1
.40
.65
.55
.59
.59
1955
1956
1957
1958
1959
52.3
54.8
56.3
54.0
60.0
81.7
89.1
90.7
85.1
89.4
1.49
1.56
1.61
1.61
1.47
26.3
27.7
28.4
26.2
29.7
46.4
52.3
53.5
49.2
52.4
1.68
1.79
1.89
1.93
1.72
10.6
11.3
11.3
11.1
12.3
11.4
13.0
12.7
12.0
12.6
1.02
1.08
1.13
1.10
1.00
15.3
15.8
16.7
16.7
18.0
23.9
23.9
24.5
24.0
24.3
.50
.50
.44
1.44
1.36
I960 88
60.8
92.8
1.52
30.5
54.0
1.78
12.4
13.2
1.05 718.3
25.5
1.37
Seasonally adjusted
57.4
58.0
59.2
60.6
61.5
62.0
85.5
86.0
86.6
87.6
88.3
89.3
.49
.48
.46
.44
.44
.44
28.1
28.5
29.1
30.3
30.7
31.2
49.5
49.9
50.5
51.1
51.6
52.1
1.76
1.75
1.73
.69
.68
.67
11.8
11.9
12.2
12.4
12.5
12.6
11.9
11.9
12.0
12.1
12.2
12.4
1.01
1.00
.98
.97
.97
.98
17.5
17.6
17.9
18.0
18.2
18.2
24.2
24.1
24.2
24.5
24.5
24.8
.39
.37
.35
.36
.35
.36
July
August
September. .
October
November..
December.. .
61.7
59.6
60.1
59.7
59.1
60.9
89.9
89.5
89.2
88.7
88.4
89.4
.46
.50
.48
.49
.49
.47
30.9
29.3
29.8
29.4
29.0
30.8
52.2
52.1
51.9
51.5
51.6
52.4
.69
.78
.74
.75
.78
.70
12.5
12.2
12.5
12.0
12.3
12.7
12.5
12.6
12.5
12.5
12.6
12.6
1.00
1.03
1.00
1.04
1.02
1.00
18.3
18.1
17.8
18.3
17.8
17.5
25.1
24.8
24.8
24.7
24.2
24.3
.37
.37
.39
.35
.36
.39
1960: January
February. ..
March
April
May
June. _ _ _
61.6
62.2
61.3
62.6
61.9
61.8
90.5
91.4
92.3
92.6
93.2
93.5
.47
.47
.51
.48
.51
.51
31.1
31.6
30.8
31.0
31.0
30.8
53.3
53.9
54.3
54.7
55.0
55.1
.71
.71
.76
.76
.77
.79
12.4
12.5
12.2
12.6
12.4
12.5
12.7
12.7
12.8
12.9
13.1
13.0
1.02 U8.1
1.02 18.1
1.05 18.2
1.02 18.9
1.05 18.5
1.04 18.5
24.5
24.8
25.1
25.0
25.2
25.3
.35
.37
.38
.32
.36
37
July
August
September _ _
October
November86 _
December
60.9
60.7
60.3
60.3
59.8
93.4
93.3
93.1
92.9
92.8
.53
.54
.54
.54
.55
30.4
30.1
30.1
29.6
29.2
54.9
55.0
54.7
54.4
54.0
.80
.82
.82
.84
1.85
12.3
12.3
12.2
12.2
12.2
13.0
13.1
13.1
13.2
13.2
1.06
1.06
1.08
1.09
1.09
25.4
25.2
25.3
25.4
25.5
.40
.39
40
37
.39
1959: January
February. _ _
March
April
May
June
18.1
18.2
18.1
18.5
18.4
18.2
1
The series beginning in 1948 are not comparable with the previous years because of changes in definition
for the wholesale series. Beginning in 1951, the estimates of retail sales and inventories are based on a
new
method of estimation adopted by the Bureau of the Census.
2
Monthly average shown for year and total for month.
3 Seasonally adjusted, end of period.
* Inventory/sales ratio. For annual periods, ratio of weighted average inventories to average monthly
sales;
for monthly data, ratio of inventories at end of month to sales for month.
8
Where December data not available, data for year calculated on basis of no change from November.
6
Preliminary.
7
Beginning January I960, retail sales include data for Alaska and Hawaii.
NOTE.—For a description of the series and their comparability, see Survey of Current Business, September
and November 1952, January 1954, and June 1957 for retail, and August 1957 for manufacturing and
wholesale.
The inventory figures in this table do not agree with the estimates of change in business inventories
included in the gross national product since these figures cover only manufacturing and trade rather
than all business, and show inventories in terms of current book value without adjustment for revaluation.
Source: Department of Commerce.
166
TABLE C-35.—Manufacturers'
sales, inventories, and orders, 1939-60
[Billions of dollars]
Inventories J
Sales i
New orders l
Durable goods
Nondurable goods
industries
industries
Dura- Nonble durable
goods goods PurPur- Goods Fin- Total
indus- indus- chased Goods Fin- chased
tries matetries
in
ished mate- in
ished
rials process goods rials process goods
Period
Unfilled
Dura- Non- orders
ble durable (unadgoods goods justindus- indus- ed)'
tries
tries
_ .
1.9
3.2
1.8
1.5
2.1
2.4
0.8
2.9
5.4
2.2
3.2
7.0
- .
2.5
3.8
5.2
6.9
7.3
3.4
4.4
5.3
6.0
6.4
2.1
3.1
3.7
3.9
3.3
2.0
3.2
4.6
5.2
5.0
2.2
2.3
2.2
2.1
2.1
2.6
4.0
4.3
4.5
4.7
.9
.2
.2
.4
.4
3.0
3.2
3.3
3.0
3.0
6.8
9.8
13.3
12.7
11.9
3.4
5.3
8.0
6.8
5.5
3.4
4.5
5.3
5.9
6.4
18.4
37.9
72.9
71.5
49.0
6.3
5.0
6.7
7.6
7.1
6.6
7.6
9.2
10.0
9.3
3.2
4.5
5.1
5.6
4.6
3.5
4.6
5.2
5.4
4.7
2.1
2.9
4.0
4.7
4.7
4.9
6.5
7.2
7.3
6.5
.5
.8
2.2
2.2
2.1
3.2
4.2
5.2
6.5
6.3
10.5
13.7
15.6
17.4
15.9
3.9
5.9
6.4
7.5
6.6
6.6
7.8
9.3
9.9
9.3
20.9
33.8
30.3
26.9
20.8
I960
1951
1952
1953
1954 .
8.8
10.4
10.9
12.4
11.2
10.5
11.9
11.9
12.1
12.3
6.1
7.4
7.3
7.4
6.5
6.0
8.6
10.2
10.7
9.8
4.7
6.8
6.9
8.1
7.7
8.4
9.1
8.6
8.1
7.9
2.5
2.7
2.7
2.7
2.6
6.6 21.0
8.2 24.5
8.1 23.6
8.4 23.1
8.4 22.5
10.3
12.7
11.7
11.0
10.2
10.7
11.8
11.9
12.1
12.3
41.1
67.6
76.3
59.5
46.9
1955
1956
1957
1958
1959
13.1
13.8
14.2
12.4
14.5
13.3
13.9
14.2
13.8
15.2
7.4
8.7
8.3
7.5
8.3
11.1
12.8
12.7
11.3
12.1
8.2
9.2
10.1
9.0
9.7
8.1
8.5
8.8
8.6
8.9
2.8
3.0
3.1
3.0
3.0
8.8 27.2
10.1 28.3
10.5 27.3
9.8 25.9
10.4 30.1
13.9
14.4
13.1
12.0
14.9
13.3
13.9
14.2
13.9
15.3
56.9
64.2
50.7
46.8
51.5
1960 < 5
14.8
15.8
8.0
12.1
10.9
8.9
3.1
11.0
30.0
14.3
15.7
45.5
9.8
9.9
9.9
10.0
10.0
9.9
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
_ .
Seasonally adjusted
1959:
January
February ___
March
April
May
_
June
13.5
13.9
14.4
15.2
15.5
15.8
14.6
14.6
14.7
15.1
15.2
15.5
7.7
7.8
8.1
8.3
8.5
8.9
11.4
11.4
11.5
11.7
11.8
11.9
9.0
9.2
9.3
9.3
9.4
9.5
8.6
8.6
8.6
8.7
8.8
9.0
3.0
3.0
3.0
3.0
3.0
3.0
28.5
29.7
30.2
31.2
30.5
31.4
13.9
14.9
15.3
15.8
15.2
16.1
14.6
14.8
14.9
15.4
15.3
15.3
47.7
49.1
50.4
50.5
50.1
50.4
July
August
SeptemberOctober.
November. _
December. _
15.4
14.0
14.1
14.0
13.5
15.0
15.5
15.3
15.7
15.3
15.5
15.8
8.9
8.7
8.3
8.0
8.1
8.3
11.9
11.9
12.0
11.8
11.8
12.1
9.5
9.5
9.5
9.4
9.4
9.7
9.0
9.0
8.9
9.0
8.9
8.9
3.1 9.8 30.8
3.1 9.9 29.0
3.1 10.1 30.6
3.1 10.2 30.4
3.1 10.3 29.2
3.0 10.4 30.7
15.5
14.0
14.7
15.1
13.7
14.8
15.3
15.0
15.8
15.4
15.5
16.0
50.6
50.6
51.1
51.5
51.5
51.5
1960:
January
February. __
March
April
May
June
15.4
15.7
15.2
15.0
15.1
14.9
15.7
15.9
15.7
16.0
15.9
15.9
8.6
8.7
8.8
8.8
8.8
8.7
12.3
12.5
12.7
12.6
12.7
12.8
9.9
10.1
10.4
10.5
10.6
10.7
9.0
9.1
9.1
9.1
9.1
9.1
3.0
3.0
3.0
3.1
3.1
3.1
10.5
10.5
10.5
10.5
10.6
10.6
29.8
30.6
30.3
30.4
30.5
30.1
14.2
14.8
14.6
14.5
14.7
14.3
15.6
15.8
15.7
15.9
15.8
15.8
50.9
50.2
49.5
48.4
47.8
47.7
July
August
September ._
October
November 8.
14.7
14.4
14.4
14.1
13.8
15.7
15.7
15.7
15.5
15.5
8.6
8.6
8.4
8.3
8.0
12.6
12.6
12.4
12.2
12.1
10.8
10.9
11.0
10.9
10.9
9.1
9.0
8.9
8.9
8.9
3.2
3.2
3.1
3.1
3.1
10.6
10.7
10.9
11.0
11.0
29.2
30.0
30.4
29.2
29.0
13.8
14.4
14.6
13.7
13.5
15.4
15.6
15.8
15.5
15.5
47.7
47.5
47.5
46.4
45.5
12 Monthly average for year and total for month.
Book value, seasonally adjusted, end of period.
s End of period.
* Based on data through November.
5 Preliminary.
NOTE.—See Table C-34 for total sales and inventories of manufacturers.
Source: Department of Commerce.
576899 0—61-
-13
167
PRICES
TABLE C-36.—Wholesale price indexes, 1929-60
[1947-49=100] i
All commodities other than farm products
and foods
All
commodities
Period
Farm
products
Processed
foods
Total
Textile
products
and
apparel
Chemi- Rubber Lumber
cals
and
and
and
rubber
wood
allied
prodprodproducts
ucts
ucts
61.9
58.6
58.5
65.5
64.2
(2)
83.5
31.9
56.1
47.4
42.1
42.8
48.7
49.3
36.2
26.9
28.7
36.5
53.3
44.8
36.5
36.3
42.6
60.9
53.6
50.2
50.9
56.0
57.1
47.1
39.0
46.0
51.8
(22)
(2)
()
51.2
53.7
73.0
62.0
53.8
56.8
65.8
29.4
23.8
20.3
24.2
28.5
52.0
52.5
56.1
51.1
50.1
44.0
45.2
48.3
38.3
36.5
52.1
50.1
52.4
45.6
43.3
55.7
56.9
61.0
58.4
58.1
50.4
50.8
54.2
47.4
49.5
56.0
56.4
59.0
55.9
55.8
66.4
71.7
84.4
82.7
86.3
27.4
28.7
33.7
30.8
31.6
51.1
56.8
64.2
67.0
67.6
37.8
46.0
59.2
68.5
68.9
43.6
50.5
59.1
61.6
60.4
59.4
63.7
68.3
69.3
70.4
52.4
60.3
68.9
69.2
69.9
56.6
61.6
69.3
69.5
70.2
80.2
86.5
100.6
103.3
102.0
35.2
41.8
45.4
48.0
51.9
68.8
78.7
96.4
104.4
99.2
71.6
83.2
100.0
107.3
92.8
60.8
77.6
98.2
106.1
95.7
71.3
78.3
95.3
103.4
101.3
71.1
82.6
100.1
104.4
95.5
70.6
76.3
101.4
103.8
94.8
98.9
99.4
99.0
102.1
98.9
52.5
60.3
93.7
107.2
99.2
103.1
114.8
111.6
110.1
110.3
97.5
113.4
107.0
97.0
95.6
99.8
111.4
108.8
104.6
105.3
105. 0
115.9
113.2
114.0
114.5
99.2
110.6
99.8
97.3
95.2
96.3
110.0
104.5
105. 7
107.0
120.5
148.0
134.0
125. 0
126.9
113.9
123.9
120.3
120.2
118.0
110.7
114.3
117.6
119.2
119.5
89.6
88.4
90.9
94.9
89.1
101.7
101.7
105.6
110.9
107.0
117.0
122.2
125.6
126.0
128.2
95.3
95.3
95.4
93.5
95.0
106.6
107.2
109.5
110.4
109.9
143.8
145.8
145.2
145.0
144.5
123.6
125.4
119.0
117.7
125.8
I9603
119.6
88.8
107.7
128.3
96.1
110.2
144.8
121.3
1959: January
February
March
April
May
June
119. 5
119.5
119.6
120.0
119.9
119.7
91.5
91.1
90.8
92.4
90.8
89.8
108.7
107.6
107.2
107.2
107.7
108.1
127.5
127.8
128.1
128.3
128.4
128.2
93.3
93.7
93.9
94.1
94.5
94.9
110.2
109.9
109.8
110.0
110.0
110.0
145.2
145. 4
146.0
146.7
148.0
146.2
120.5
122.5
124.2
126.3
128.2
128.9
119. 5
119.1
119.7
119.1
118.9
118.9
88.4
87.1
88.9
86.5
85.4
85.9
107. 5
105. 8
107.8
106.4
104.9
104.7
128.4
128.4
128.4
128.4
128.5
128.6
95.3
95.7
95.9
95.9
96.3
96.7
109.9
109.7
109.9
110.0
110.0
110.0
146.0
140.5
141.6
141.9
144.4
142.0
128.3
128.5
127.2
126.2
124.3
124.8
119.3
119.3
120.0
120.0
119.7
119.5
86.5
87.0
90.4
91.1
90.4
89.0
105.6
105.7
107.3
106.8
107. 3
107.6
128.8
128.7
128.6
128.7
128.2
128.2
96.6
96.5
96.3
96.3
96.3
96.3
109.9
110.0
110.1
110.2
110.2
110.2
143.1
144.6
144.7
144.7
146.3
146.7
125.1
124.9
124.5
124.3
123.7
122.4
119.7
119.2
119.2
119.6
119.6
119.5
88.9
86.6
87.7
89.5
89.9
88.7
108.9
107.8
108.1
109.0
109.1
109.3
128.2
128.2
127.9
128.0
127.9
127.9
96.3
96.1
95.9
95.8
95.4
95.2
110.4
110.5
110.4
110.3
110.3
110.4
146.9
145.3
144.9
144.7
143.6
141.8
121.5
119.6
118.7
117.7
116.9
116.7
1929
1930
1931
1932
1933
1934
. .-
1935
1936
1937
1938
1939
_
- -
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
.
. ...
-
- _ -
1950
1951
1952
1953
1954
-
1955
1956
1957
1958
1959
--
July
August
September
October
November
December
1960: January ..
February
March
April
May
June
July
August
September
October
November3
December
-.
__
._
See footnotes at end of table, p, 169.
168
TABLE C-36.—Wholesale price indexes, 1929-60—Continued
[1947-49=100] i
All commodities other than farm products and foods (continued)
FurniMetals Machin- ture
and
and
ery and other
metal motive houseprodprodhold
ucts
ucts
durables
Hides,
skins,
leather,
and
leather
products
Fuel,
power,
and
lighting
materials
1929
59.3
70.2
(2)
67.0
(2)
69.3
72.6
86.6
(8)
1930
1931
1932
1933
1934
54.4
46.8
39.7
44.0
47.1
66.5
57.2
59.5
56.1
62.0
(22)
(2)
(2)
(2)
()
60.3
54.1
49.9
50.9
56.2
(22)
(2)
(2)
(2)
68.2
62.8
55.4
55.5
60.2
72.4
67.6
63.4
66.9
71.6
87.1
84.6
81.4
72.8
76.0
(22)
()
(')
(2l )
()
1935
1936
1937
1938
1939
48.7
51.9
56.9
50.5
52.0
62.2
64.5
65.7
64.7
61.8
(22)
(2)
()
(22)
()
56.2
57.3
65.6
63.1
62.6
(2)
(2)
(2)
(2)
65.3
59.8
60.6
67.2
65.6
65.4
71.6
71.7
73.4
71.1
69.5
75.9
75.8
76.5
76.4
76.4
(s)
(')
(2)
(')
(»)
1940
1941
1942
1943
1944
54.8
58.9
64.0
63.9
63.4
60.7
64.5
66.4
68.4
70.3
(22)
(2)
(2)
(2 )
()
62.8
64.0
64.9
64.8
64.8
66.2
68.6
71.2
71.0
71.0
66.8
71.2
76.8
76.4
78.4
69.7
71.3
74.1
74.5
75.9
77.3
78.1
79.1
83.0
83.4
(»)
(3)
(»)
(»)
(')
64.2
74.6
101.0
102.1
96.9
71.1
76.2
90.9
107.1
101.9
(22)
()
98.6
102.9
98.5
65.9
73.9
91.3
103.9
104.8
71.6
80.3
92.5
100.9
106.6
78.6
83.0
95.6
101.4
103.1
79.1
84.2
93.9
101.7
104.4
85.8
89.7
97.2
100.5
102.3
(»)
(J)
100.8
103.1
96.1
104.6
120.3
97.2
98.5
94.2
103.0
106.7
106.6
109.5
108.1
100.9
119.6
116.5
116.1
116.3
110.3
122. 8
123.0
126.9
128.0
108.6
119.0
121.5
123.0
124.6
105.3
114.1
112.0
114.2
115.4
106.9
113.6
113.6
118.2
120.9
103.5
109.4
111.8
115.4
120.6
96.6
104.9
108.3
97.8
102.5
93.8
99.3
99.4
100.6
114.3
107.9
111.2
117.2
112.7
112.7
119.3
127.2
129.6
131.0
132.2
136.6
148.4
151.2
150.4
153.6
128.4
137.8
146.1
149.8
153.0
115.9
119.1
122.2
123.2
123.4
124.2
129.6
134.6
136.0
137.7
121.6
122.3
126.1
128.2
131.4
92.0
91.0
89.6
94.2
94.5
Period
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
_
.
_
_
--
1955
1956
1957
1958
1959
Pulp,
paper,
and
allied
products
()
Non- Tobacco
metal- manu- Miscellic
factures laneous
minerand
prodals
bottled
ucts
(struc- beverages
tural)
19603
110.2
113.8
133.2
153.8
153.3
123.1
138.0
131.8
92.1
1959: January
February
March
April
May
June
104.1
105. 4
108. 5
117.8
118. 5
118 9
113.9
114.8
115.0
114.0
113.4
111.2
131. 5
131.7
132. 0
132.2
132.0
132.3
152.9
153.4
153.6
152.8
153.0
153.3
151.8
152.0
152.2
152. 1
152.5
153.0
123.3
123.3
123. 5
123.4
123.5
123.6
137.2
137.5
137.7
138.3
138.4
137.4
128.6
128. 9
132. 1
132.2
132.2
132.2
100.8
98.5
97.0
98.8
95.2
91.0
119.3
119.7
119.1
116.2
111.7
112.3
111.1
112.2
111.9
111.4
111.2
111.7
132.4
132.3
132.4
132.5
132.3
132.4
152.7
152.8
153.8
154. 5
155.8
155.2
153.6
153.8
153.9
153.7
153.6
153. 7
123.8
123.5
123.4
123.3
123. 3
123.2
137. 5
137.4
137.5
137.5
137.7
137.8
132. 2
131. 9
131.8
131.7
131.7
131.7
92.9
92.0
88.6
91.8
93.7
94.2
112.7
112.0
111.8
112.1
111.2
110.3
111.9
112.0
112.3
112.2
110.8
112.3
133.7
133.2
133.1
133.1
133.4
133.5
155.5
155.3
154.5
154.5
154.2
153.8
153.8
153.9
153.9
154.0
153.5
153.4
123.4
123.5
123.7
123.5
123.2
123.0
138.4
138.2
138.2
138.3
137.9
137.8
131.7
131.7
131.7
131.7
131.7
131.7
95.3
93.4
94.0
95.4
91.1
90.9
110.1
108.7
108.1
108.5
108.5
108.9
113.8
115.3
116.1
116.2
116.1
116.2
133.5
133.0
133.0
133.4
133.1
132.3
153.4
153.6
153.5
152.8
152.3
152.2
153.2
153.2
151.3
152.8
153.5
153.6
123.1
122.9
122.8
122.7
122.6
122.5
137.8
137.8
138.0
138.1
137.9
137.9
131.8
132.0
132.0
132.0
132.0
132.1
90.8
89.9
91.1
90.3
90.6
92.4
July
August
September. _.
October
November...
December
1960: January __
February
March
April
May
_
June
July
August _. _
September. _.
October
November...
Decembers..
1
This does not replace the former index (1926=100) as the official index prior to January 1952. Data
beginning January 1947 represent the revised sample and weighting pattern. Prior to January 1947 they
are based on the month-to-month movement of the former index.
2 Not available,
a Preliminary.
Source: Department of Labor.
169
TABLE C—37.—Wholesale price indexes, by stage of processing, 1947-60
[1947-49=100]
Intermediate materials, supplies, and components l
Crude materials
All
commodities
Period
Materials and components for
manufacturing
Food- Nonstuffs food
ma- Fuel
Total and terials,
feedstuffs except
fuel
Total
Materials
for
Total food
manufacturing
Materials
for
nondurable
manufacturing
Materials
and
Ma- Com- compoterials po- nents
for
nents
for
dufor
conrable manustrucmanu- factur- tion
factur- ing
ing
1947
1948
1949
. - 104.4
99.2
98.6
108.0
93.4
100.7
108.8
90.5
96.0
106.8
97.2
89.4
105.6
105.0
96.2
104.0
99.9
96.4
104.0
99.6
102.8
106.0
91.2
99.2
105.0
95.8
91.2
103.0
105, 8
94.4
101.9
103.8
93.3
103.2
103.5
1950
1951
1952
1953
1954.
103.1
114.8
111.6
110.1
_— 110.3
101.8
116.9
107.4
99.2
98.3
97.0
112.3
105.7
94.6
94.7
111.0
128.1
110.9
106.2
104.2
104.6
106.5
107.2
111.0
106.0
104.3
116.9
113.5
114.1
114.8
104.5
118.4
113.4
115.2
115.4
94.9
105.7
101.5
101.8
100.9
100.5
116.5
104.8
104.0
102.3
111.9
124.3
124.6
130.1
133.1
107.6
122.2
122.5
124.7
125.3
108.9
119.1
118.3
120.2
120.9
1955
1956
1957
1958
1959
110.7
114.3
117.6
119.2
119.5
94.5
95.0
97.2
99.4
96.7
85.7
84.0
87.7
92.8
86.8
110.1
114.2
112.5
108.4
112.2
105.8
113.3
119.7
121.2
123.4
117.0
122.1
125.1
125.3
127.0
118.2
123.7
126.9
127.2
129.0
97.7
98.0
99.9
102.2
98.5
102.7
104.3
105. 7
104.7
106.4
139.7
148.5
153.2
154.3
157.9
130.9
142.9
148.3
149.5
151.5
125.6
132.0
132.9
132.9
136.5
1960«
119.6
94.4
85.7
107.5
124.4
127.0
128.9
99.3
106.4
158.1
150.5
135.6
1959:
January
February...
March
April
May
June
119.5
119.5
119.6
120.0
119.9
119.7
98.1
98.098.9
99.6
98.5
98.1
89.7
89.0
89.8
91.1
89.7
88.7
110.5
111.3
112.7
112.6
112.3
113.1
126.1
126.4
125.4
120.3
120.3
120.3
126.3
126.5
126.7
127.2
127.4
127.1
127.7
128.0
128.2
128.6
129.3
129.5
99.2
98.5
97.7
97.4
99.0
99.5
104.5
104.8
105.2
106.4
106.8
106.8
156.6
157.1
157.6
157.7
158.1
158.5
150.6
150.8
150.9
150.7
151.7
152.0
134.5
135.3
135.7
136.5
137.2
137.4
July
August
September..
October
November. .
December
119.5
119.1
119.7
119.1
118.9
118.9
96.4
95.6
95.9
94.4
93.6
93.4
86.3
85.2
85.3
83.2
81.8
82.1
112.6
112.1
112.7
112.3
112.8
111.4
119.7
122.5
124.2
124.2
125.2
125.7
127.2
127.0
126.9
127.1
127.3
127.3
129.4
129.1
129.4
129.4
129.5
129.4
99.3
98.6
99.1
98.5
97.8
97.0
107.0
107.0
107.2
106.9
106.8
107.0
157.8
157.6
158.2
158.5
159.0
158.6
151.9
151.1
151.3
151.6
152.4
152.5
137.0
137.1
137.0
136. 9
136.7
136.9
1960:
January
February...
March
April
May
June
.
119.3
119.3
120.0
120.0
119.7
119.5
94.6
94.8
96.4
96.3
96.0
95.3
83.7
84.7
88.0
88.0
87.5
86.8
111.7
110.5
108.8
108.8
108.9
108.2
126.0
125.5
125.7
122.0
120.7
121. 5
127.5
127.4
127.5
127.6
127.1
127.0
129.5
129.5
129.4
129.5
129.2
129.1
97.4
97.2
97.9
98.3
98.6
99.0
106.9
106.9
106.8
106.9
106.8
106.8
159.0
159.0
158.9
159.0
158.8
158.4
152.1
152.4
152.0
152.0
150.8
150.3
137.2
137.1
136.9
136.7
136.4
135.8
July . .
August
September..
October
November..
December *.
119.7
119.2
119.2
119.6
119.6
119.5
94.8
92.7
92.9
93.3
93.0
93.3
86.1
83.8
83.9
85.1
85.1
85.5
107.7
105.9
106.1
104.8
104.1
104.1
122.7
124.1
126.1
126.0
126.2
126.4
127.0
126.8
126.8
126.6
126.5
126.4
129.0
128.7
128.5
128.4
128.1
127.9
100.1
99.8
100.0
100.7
101.7
101.3
106.9
106.5
106.2
105.9
105.5
105.2
158.1
157.8
157.7
157.2
156.7
156.6
149.6
149.6
149.4
149.4
149.2
149.0
135.3
134.8
134.6
134.2
133.9
133.7
96.4
See footnotes at end of table, p. 171.
170
TABLE C-37.—Wholesale price indexest by stage of processing, 7947-60—Continued
[1947-49=100]
Special groups of industrial
products
Finished goods
Consumer finished goods
Period
Producer
Total
Total
Other
nonFoods durable
goods
Du- finished
goods
rable
goods
InterConmediate
sumer
Crude materials,
finished
mate- supplies, goods exrials a and com- cluding
ponents 3
foods
95.9
103.5
100.6
96.8
104.1
99.2
97.0
105.8
97.2
97.4
103.5
99.2
94.8
101.3
104.0
92.8
101.1
106.1
92.9
108.5
98.6
95.3
103.7
101.0
96.6
102.8
100.6
102.4
112.1
111.5
110.4
110.7
100.9
110.3
109.0
107.1
107.1
99.2
111.3
110.4
104.6
103.8
100.8
108.5
105.9
106.9
107.2
105.0
112.1
113.0
113.8
114.7
108.7
119.3
121.3
123.1
124.7
109.9
120.8
109.3
108.5
103.3
105.7
118.5
114.7
116.2
116.7
102.1
109.6
108.0
108.9
109.4
1955_._
1956
1957
1958
1959
110.9
114.0
118.1
120.8
120.6
106.4
108.0
111.1
113.5
112.5
101.1
101.0
104.5
110.5
105.5
107.8
109.9
112.4
111.7
113.4
115.9
119.7
123.3
125.0
126. 5
128.5
138.1
146.7
150.3
153.2
113.4
120.0
118.3
113.7
120.0
120.1
126.0
129.3
129.1
131.2
110.2
112.8
115.7
115. 8
117.3
I9604
121.5
113.6
107.7
114.1
126.1
153.7
115.3
131.7
117.8
1959: January
February
March
April
120.8
120.7
120.6
120. 8
120.6
120.5
113.1
112.9
112.7
112.9
112.6
112. 4
107.8
106.8
105.6
1-06.2
105.5
105.6
112.7
113.1
113.7
113.6
113.5
112.8
126.4
126. 4
126.5
126.5
126.6
126.7
152.2
152.4
152.8
152.9
153.2
153.5
117.7
118.8
119.5
119.0
118.2
119.6
129.9
130.4
130.7
131.2
131.6
131.6
116.9
117.2
117.6
117.5
117.5
117.1
120.5
120.2
121.4
120.5
120.0
120.1
112.4
111.8
113.4
112.3
111.7
111.9
105.4
103.6
107.2
105.0
103.5
103.6
113.1
113.4
113.5
113.5
113.6
113.8
126.7
126.7
126.6
126.2
126.1
126.2
153.6
153.6
153.8
153.6
153.6
153.5
119.8
121.0
122.0
121.7
122.6
120.8
131.6
131.5
131.6
131.5
131.6
131.7
117.2
117.5
117.5
117.3
117.4
117.6
Jnnp.
120.6
120.5
121.4
121.4
121.2
121.1
112.4
112.3
113.4
113.4
113.2
113.1
104.8
104.7
107.4
107.5
107.5
106.9
113.9
113.8
113.8
113.7
113.2
113.6
126.4
126.4
126.5
126.5
126.3
126.2
153.8
153.8
153.9
153.9
153.6
153.7
121.4
119.2
116.8
116.2
116.0
115.2
132.1
132.2
132.2
132.2
131.9
131.8
117.7
117.6
117.6
117.6
117.2
117.4
July
August
September — __
October
November 4 __
December
121.8
121.5
121.5
122.4
122.7
122.3
113.9
113.6
113.7
114.7
114.9
114.4
108.4
107.1
108.2
110.1
110.4
109.0
114.1
114.6
114.8
114.8
114.7
114.7
126.3
126.2
123.6
125.7
126. 5
126.5
153.6
153.7
152.6
153.5
154.1
154.3
114.8
114.4
114.2
112.7
111.8
111.0
131.7
131.6
131.5
131.3
131.0
130.9
117.8
118.1
117.6
118.1
118.2
118.2
1947
1948
1949
-
1950
1951 _ .
1952
1953
1954
...
_ ._
_._
May
June
--
July.
August
September
October
- .__
November.-. --December - -...
1960: January
February
March
April
May
1
Includes, in addition to subgroups shown, processed fuels and lubricants, containers, and supplies.
2 Excludes crude foodstuffs and feedstuffs, plant and animal fibers, oilseeds, and leaf tobacco.
Excludes intermediate materials for food manufacturing and manufactured animal feeds.
Preliminary.
NOTE.—For a listing of the commodities included in each sector and their relative importance, see Monthly
Labor Review, December 1955 and Wholesale Prices and Price Indexes, 1958 (BLS Bulletin No. 1257).
8
4
Source: Department of Labor.
171
TABLE C—38.—Consumer price indexes^ by major groups, 1929-60
For city wage-earner and clerical-worker families
[1947-49=100]
1929
1930
1931
1932
1933
1934
1935
1936
]937
1938
1939
-_
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
Food
_
73.3
.
71.4
65.0
58.4
55.3
57.2
--
_-
-._
-
--
-
1950 __
1951
1952
1953
1954
1955 _.
1956
1957
1958
1959
Housing
All
items
Period
.__
.__
_._
---
Other
Per- ReadAp- Trans- Mediand goods
cal
sonal ing
parel portarecreaand
tion
care
care
tion services
Total
Kent
65.6
0)
117.4
60.3
0)
0)
62.4
51.4
42.8
41.6
46.4
0)
0)
0)
0)
0)
114.2
108.2
97.1
83.6
78.4
58.9
53.6
47.5
45.9
50.2
0)
0)
0)
0)
0)
(0
0)
0)
58.7
59.3
61.4
60.3
59.4
49.7
.50.1
52.1
48.4
47.1
71.8
72.8
75.4
76.6
76.1
78.2
80.1
83.8
86.5
86.6
50.6
51.0
53.7
53.4
52.5
69.6
70.2
71.3
71.9
70.2
59.9
62.9
69.7
74.0
75.2
47.8
52.2
61.3
68.3
67.4
76.4
78.3
81.8
82.8
84.7
86.9
88.4
90.4
90.3
90.6
53.2
55.6
64.9
67.8
72.6
76.9
83.4
95.5
102.8
101.8
68.9
79.0
95.9
104.1
100.0
86.1
88.3
95.0
101.7
103.3
90.9
91.4
94.4
100.7
105.0
102.8
111.0
113.5
114.4
114.8
101.2
112.6
114.6
112.8
112.6
106.1
112.4
114.6
117.7
119.1
114.5
116.2
120.2
123.5
124.6
110.9
111.7
115.4
120.3
118.3
120.0
121.7
125.6
127.7
129.2
0)
0)
0)
0)
0)
0)
0)
0)
0
0)
0)
0)
0)
0)
0)
0)
0)
0)
0)
71.4
71.6
72.3
72.5
72.6
54.6
55.3
58.5
59.8
59.6
58.1
59.1
60.8
62.9
63.0
67.2
67.0
68.8
69.4
70.6
69.8
72.2
78.5
78.2
78.2
72.7
73.1
75.1
78.7
81.2
59.5
61.0
66.9
73.8
79.0
64.1
66.4
69.5
75.3
83.4
72.8
74.2
76.3
80.2
82.4
76.3
83.7
97.1
103.5
99.4
78.1
82.1
90.6
100.9
108.5
83.1
87.7
94.9
100.9
104.1
81.5
87.4
97.6
101.3
101.1
86.8
89.7
95.5
100.4
104.1
85.7
88.6
96.1
100.5
103.4
108.8
113.1
117.9
124.1
128.5
98.1
106.9
105.8
104.8
104.3
111.3
118.4
126.2
129.7
128.0
106.0
111.1
117.2
121.3
125.2
101.1
110.5
111.8
112.8
113.4
103.4
106.5
107.0
108.0
107.0
105.2
109.7
115.4
118.2
120.1
130.3
132.7
135.2
137.7
139.7
103.7
105.5
106.9
107.0
107.9
126.4
128.7
136.0
140.5
146.3
128.0
132.6
138.0
144.6
150.8
115.3
120.0
124.4
128.6
131.2
106.6
108.1
112.2
116.7
118.6
120.2
122.0
125.5
127.2
129.7
0)
I960 2
126.4
119.6
131.5
141.7
109.3
146.2
156.0
133.3
121.4
132.2
1959* January
February
March
April
May
June
123.8
123.7
123.7
123.9
124.0
124.5
119.0
118.2
117.7
117.6
117.7
118.9
128.2
128.5
128.7
128.7
128.8
128.9
138. 8
139.0
139.1
139.3
139.3
139.5
106.7
106.7
107.0
107.0
107.3
107.3
144.1
144.3
144.9
145.3
145.4
145.9
148.0
149.0
149.2
149.6
150.2
150.6
129.4
129.8
129.7
130.0
130.7
131.1
117.0
117.1
117.3
117.7
117.8
118.1
127. 3
127.4
127.3
128.2
128.4
129.2
124.9
124.8
125.2
125.5
125.6
125.5
119.4
118.3
118.7
118.4
117.9
117.8
129.0
129.3
129.7
130.1
130.4
130.4
139.6
139.8
140.0
140.4
140.5
140.8
107.5
108.0
109.0
109.4
109.4
109.2
146.3
146.7
146.4
148.5
149.0
148.7
151.0
151.4
152.2
152.5
153.0
153.2
131.3
131.7
132.1
132.5
132.7
132.9
119.1
119.1
119.6
119. 7
120.0
120.4
130.8
131.1
131.5
131.6
131.6
131.7
125.4
125.6
125.7
126.2
126.3
126.5
117.6
117.4
117.7
119.5
119.7
120.3
130.7
131.2
131.3
131.4
131.2
131.3
140.9
141.0
141.2
141.4
141.4
141.6
107.9
108.4
108.8
108.9
108.9
108.9
147.6
147.5
146.5
146.1
145.6
145.8
153.5
154.7
155.0
155.5
155.9
156.1
132.7
132.6
132.7
132.9
133.2
133.2
120.3
120.6
120.9
121.1
121.4
121.1
131.8
131.8
131.7
131.9
131.9
132.0
126.6
126.6
126.8
127.3
- - 127.4
120.6
120.1
120.2
120.9
121.1
131.3
131.5
132.0
132.2
132.1
141.8
141.9
142.1
142.5
142.7
109.1
109.3
110.6
111.0
110.7
145.9
146.2
144.7
146.1
146.5
156.4
156.7
156.9
157.3
157.9
133.4
133.8
133.9
134.0
133.9
121.6
121.9
122.1
121.9
122.5
132.2
132.4
132.7
132.7
132.7
July
August
September
October
November
December
„, ,
.
__. ._
I960* January
February
March
April
May
June
July
August
September
October
November
_
1
2
Not available.
January-November average.
Source: Department of Labor.
172
TABLE C-39.—Consumer price indexes, by special groups, 1935-60
For city wage-earner and clerical-worker families
[1947-49=100]
Period
All
items
All
items
less
food
Commodities
Services
All
Commodities less food
items
All
less
All
shel- com- Food
ter modiNon- servDuraices
All
ties
bles durables
Rent
52.0
52.7
54.7
All
services
less
rent
51.6
49.7
50.1
52.1
48.4
47.1
57.3
57.9
60.4
60.4
59.4
53.3
54.1
57.5
58.5
57.3
57.1
57.6
59.9
59.6
58.7
75.6
76.4
78.7
80.3
80.4
78.2
80.1
83.8
86.5
86.6
72.6
72.2
72.9
73.5
73.5
52.1
55.7
63.8
69.4
70.2
47.8
52.2
61.3
68.3
67.4
59.8
62.7
69.8
72.7
76.7
56.8
60.7
68.9
71.2
77. 8
59.3
61.8
68.4
71.3
74.9
80.6
81.6
84.2
85.8
87.9
86.9
88.4
90.4
90.3
90.6
73.6
74.5
77.8
81.3
85.2
74.8
82.3
95.6
103.1
101.3
72.3
80.1
96.3
103.2
100.6
68.9
79.0
95.9
104.1
100.0
79.7
84.7
95.7
102.9
101.5
83.7
87.5
94.9
101.8
103. 3
77.6
83.3
95.7
103.1
101.1
89.0
90.8
94.5
100.4
105.1
90.9
91.4
94.4
100.7
105.0
87.0
90.2
94.7
100.1
105.2
104.2
110.8
113.5
115.7
116.4
102.0
110.5
112.7
113.1
113.0
101.2
110.3
111.7
111.3
110. 2,
101.2
112.6
114.6
112.8
112.6
101.3
108.9
109.8
110.0
108.6
104.4
112.4
113.8
112.6
108.3
100.9
108.5
109.1
110.1
110.6
108.5
114.1
119.3
124.2
127.5
108. 8
113.1
117.9
124.1
128.5
108.1
114.6
120.1
124.6
127.7
114.5
116.2
120. 2
123.5
124.6
116.7
118.8
122.8
125. 5
127.9
112.4
114.0
117.8
121.2
122.2
109.0
110.1
113.6
116.3
116.6
110.9
111.7
115.4
120.3
118.3
107.5
108.9
112.3
113.4
115.1
105.1
105.1
108.8
110.5
113.0
110.6
113.0
116.1
116.9
118.3
129.8
132.6
137.7
142.4
145.8
130.3
132.7
135.2
137.7
139.7
130.1
133.0
138.6
143.8
147.5
I960 *
126.4
130.0
123.9
117.4
119.6
115.6
111.7
120.0
149.9
141.7
152.0
1959: January
February
March
April. .
May
June
123.8
123.7
123.7
123.9
124.0
124. 5
126.4
126.7
126.9
127.1
127.3
127.5
121.5
121.4
121.4
121.5
121.6
122.2
116.2
116.0
115.9
115.9
115.9
116.6
119.0
118.2
117.7
117.6
117.7
118.9
114.0
114.2
114.4
114.5
114.5
114.7
112.4
112.2
112.5
112.6
112.7
112.8
116.7
117.1
117.4
117. 5
117.5
117.8
143.9
144.2
144.4
144.8
145.2
145.4
138.8
139.0
139.1
139.3
139.3
139.5
145.4
145.7
145.9
146.4
146.9
147.1
124.9
124.8
125.2
125.5
125.6
125.5
127.9
128.2
128.7
129.2
129.5
129.5
122.7
122.4
122.9
123.2
123.1
123.1
117.0
116.6
117.0
117.3
117.2
117.1
119.4
118.3
118.7
118.4
117.9
117.8
115.1
115.3
115.7
116.3
116. 5
116.4
113.1
112.8
112.8
113.6
114.1
113.8
118.1
118.6
119.3
119.8
119.8
119.9
145.8
146.3
146.9
147.3
147.6
147.8
139.6
139.8
140.0
140.4
140.5
140.8
147.5
148.1
148.7
149.1
149.5
149.7
I960' January
February
March
April
May
June
_
125.4
125.6
125.7
126.2
126.3
126.5
129.4
129.7
129.7
129.8
129.7
129.7
122.9
123.0
123.1
123.7
123.8
124.0
116.7
116.7
116.7
117.4
117.3
117.6
117.6
117.4
117.7
119.5
119.7
120.3
115.9
116.0
115.7
115.6
115.3
115.3
113.3
113.3
112.5
112.1
111.9
111.5
119.2
119.4
119.6
119.7
119.4
119.6
148.2
148.9
149.2
149.4
149.6
149.7
140.9
141.0
141.2
141.4
141.4
141.6
150.1
150.9
151.3
151.5
151.7
151.8
July
August
September
October
November
126.6
_ - 126.6
126.8
127.3
_ 127.4
129.9
130.1
130.3
130.7
130.8
124.2
124.1
124.3
124.8
125.0
117.7
117.6
117.7
118.2
118.3
120.6
120.1
120.2
120.9
121.1
115.4
115.5
115.6
115.9
115.9
111.1
111.0
110.0
110.9
110.7
119.9
120.1
120.9
120.9
121.1
150.0
150.3
150.8
151.2
151.3
141.8
141.9
142.1
142.5
142.7
152.1
152. 5
153.0
153.4
153.6
1935
1936
1937
1938
1939
58.7
59.3
61.4
60.3
59.4
65.8
66.5
68.9
60.6
69.1
55.5
56.2
58.0
56.4
55.4
1940
1941
1942
1943
1944
59.9
62.9
69.7
74.0
75.2
69.4
71i4
76.4
78.5
81.5
55.8
59.1
66.6
71.6
72.9
1945 ..
1946
1947
1948
1949
76.9
83.4
95.5
102.8
101.8
83.4
87.0
95.1
101.9
103.0
1950
1951
1952
1953
1954 .
102.8
111.0
113.5
114.4
114.8
1955
1956
1957
1958
1959
July
August
September
October
November
December
52:7
i January-November average.
Source: Department of Labor.
173
MONEY SUPPLY, CREDIT, AND FINANCE
TABLE C-40.—Money supply, 1947-60
[Averages of daily figures, billions of dollars]
Money supply
Period
Seasonally adjusted
Total
Currency Demand
outside deposbanks
its 12
Deposits at member2 banks
(unadjusted)
Unadjusted
Total
Currency Demand
outside depos- Demand
banks
its 12
Time
U.S.
Government
1947: December
1948: December
1949: December
112.3
110.7
110.1
26.4
25.8
25.2
85.8
84.9
85.0
115.0
113.3
112.7
26.8
26.1
25.5
88.2
87.2
87.3
74.6
73.9
74.2
28.2
28.6
29.1
0.8
1.6
2.5
1950:
1951:
1952:
1953:
1954:
December
December
December
December
December
115.3
122.0
126.5
128.1
131.8
25.0
26.2
27.4
27.7
27.4
90.3
95.8
99.1
100.4
104.4
118.1
125,1
129.8
131.4
135.0
25.4
26.6
27.8
28.2
27.9
92.7
98.6
102.0
103.3
107.1
79.0
83.6
86.2
86.9
90.5
29.4
30.7
33.1
35.8
39.1
2.1
2.5
4.5
3.5
4.6
1955:
1956:
1957:
1958:
1959:
December
December
December
December....
December
134.6
136.5
135.5
140.8
141.5
27.8
28.2
28.3
28.6
28.9
106.8
108.3
107.2
112.2
112.6
137.9
139.7
138.8
144.3
144.9
28.3
28.7
28.9
29.2
29.5
109.6
111.0
109.9
115.1
115.5
92.4
93.2
92.1
96.0
95.7
40.3
41.7
45.9
52.7
53.7
3.0
3.0
3.1
3.4
4.4
1960: December 3 _ _
140.4
29.0
111.4
143.9
29.5
114.3
94.2
58.1
4.1
1959: January
February
March
April
May
June-. .„ „
141.2
141.6
142,0
142.1
142.6
142.8
28.7
28.7
28.8
28.8
28.9
29.0
112.5
112.9
113.2
113.3
113.7
113.8
144.4
141.4
140.7
141.8
140.7
141.4
28.6
28.4
28.5
28.5
28.7
28.9
115.8
113.1
112.3
113.3
112.0
112.5
96.6
94.4
93.9
94.7
93.5
94.0
53.5
53.6
53.9
54.3
54.6
54.8
2.8
3.9
3.3
4.2
4.7
3.5
July
August
September. __
October
November. _ _
December
143.3
142.7
142.8
142.4
142.2
141.5
29.0
29.0
29.0
29.0
29.0
28.9
114.3
113.7
113.8
113.4
113.2
112.6
142.2
141.8
142.1
142.3
143.3
144.9
29.2
29.2
29.1
29.0
29.2
29.5
113.0
112.6
113.0
113.3
114.1
115.5
94.3
93.8
93.8
93.9
94.5
95.7
54.8
54.6
54.5
54.4
53.8
53.7
4.4
4.5
4.6
4.3
4.2
4.4
141.3
141.0
140.6
140.5
139.9
139.4
29.0
29.0
29.0
29.1
29.0
28.9
112.3
112.1
111.6
111.4
110.9
110.5
144.4
140.8
139.3
140.1
138.0
138.0
28.8
28.6
28.7
28.8
28.8
29.0
115.6
112.2
110.6
111.4
109.2
109.1
95.6
92.8
91.6
92.3
90.4
90.4
53.7
53.5
53.8
54.2
54.5
54.9
3.6
3.6
3.8
3.3
5.8
5.7
139.6
139.7
140.4
140.6
140.2
140.4
28.9
28.9
29.0
29.0
29.0
29.0
110.7
110.8
111.5
111.6
111.2
111.4
138.7
138.9
139.7
140.6
141.4
143.9
29.1
29.0
29.1
29.1
29.2
29.5
109.6
109.8
110.7
111.5
112.2
114.3
90.7
91.0
91.6
92.0
92.3
94.2
55.5
56.2
56.9
57.4
57.6
58.1
6.0
5.5
4.8
5.1
5.2
4.1
1960: January
February
March
April
May
June .
July.
...
August
September. __
October
November. . .
December s _ _
i Demand deposits at all commercial banks ^member and nonmember).
a Member banks are all national banks and those State banks which have taken membership in the
Federal Reserve System.
» Preliminary.
NOTE.—These are the new series as published in Federal Reserve Bulletin, October 1960.
Between January and August 1959, the series were expanded to include data for all banks in Alaska
and Hawaii.
Source: Board of Governors of the Federal Reserve System.
174
TABLE C—41.—Loans and investments of all commercial banks, 1929-60
[Billions of dollars]
Total
loans
and
investments
End of period 1
1929—June 6
1930—June 85 *
1931 —June
1932—June 8
1933—June 55
.
1934—June
1935
_.
1936
1937 1938
1939
1940
1941
_
1942
1943
1944
1945
1946
_
1947
__
1948
1949
1950
1951
_
1952
- - -1953
1954
1955
1956
1957
1958
1959
1960s
1959' January
February
._
March
April
May
June
July
August
September
October
November . _December
I960* January
_
February
March
__
April
May
. _
June
July
August
September
October 8
November 88
December -
-_ _ __
- -- -.
- -- - -
- --
.
.
-
49.4
48.9
44.9
36.1
30.4
32.7
36.1
39.6
38.4
38.7
40.7
43.9
50.7
67.4
85.1
105.5
124.0
114.0
116.3
114.3
120.2
126.7
132.6
141.6
145.7
155.9
160.9
165.1
170.1
185.2
190.3
200.3
185.6
183.8
182.9
185.7
185.8
185.9
187.7
188.2
187.8
188.4
188.3
190.3
187.8
186.5
185.7
188.8
188.6
188.9
190.9
191.2
193.3
195.7
195.7
200.3
Loans
Total 2
35.7
34.5
29.2
21.8
16.3
15.7
15.2
16.4
17.2
16.4
17.2
18.8
21.7
19.2
19.1
21.6
26.1
31.1
38.1
42.5
43.0
52.2
57.7
64.2
67.6
70.6
82.6
90.3
93.9
98.2
110.8
118.2
97.7
97.9
99.2
101.2
102.4
104.5
105. 9
107.4
107.8
108.2
109.5
110.8
109.6
110.3
111.4
113.0
113.6
114.8
114.2
114.7
115. 4
114.8
115.0
118. 2
Investments
Business
loans 3
(6)
(6)
8( )
6
(6)
(6)
(68)
()
5.7
6.4
7.3
9.3
7.9
7.9
8.0
9.6
14.2
18.2
18.9
17.1
21.9
25.9
27.9
27.2
26.9
33.2
38.7
40.5
40.4
740.2
42.4
39.2
39.2
40.2
40.6
41.4
737.8
37.8
38.2
38.7
38.8
39.4
40.2
39.4
39.8
40.9
40.9
41.3
41.9
41.2
41.2
41.8
41.7
42. .1
42.4
Total
13.7
14.4
15.7
14.3
14.0
17.0
20.9
23.1
21.2
22.3
23.4
25.1
29.0
48.2
66.0
83.9
97.9
82.9
78.2
71.8
77.2
74.4
74.9
77.5
78.1
85.3
78.3
74.8
76.2
87.0
79.4
82.1
87.9
86.0
83.8
84.5
83.4
81.5
81.7
80.8
80.0
80.2
78.8
79.4
78.2
76.3
74.3
75.9
75.0
74.1
76.7
76.6
77.8
80.9
80.7
82.1
U.S. GovOther
ernment
obligations 4 securities
4.9
5.0
6.0
6.2
7.5
10.3
13.8
15.3
14.2
15.1
16.3
17.8
21.8
41.4
59.8
77.6
90.6
74.8
69.2
62.6
67.0
62.0
61.5
63.3
63.4
69.0
61.6
58.6
58.2
66.4
58.9
61.3
67.5
65.5
63.2
63.6
62.6
60.9
61.1
60.3
59.2
59.6
58.5
58.9
58.0
56.2
54.2
55.8
55.1
54.2
56.7
56.6
57.7
60.5
60.4
61.3
8.7
9.4
9.7
8.1
6.5
6.7
7.1
7.9
7.0
7.2
7.1
7.4
7.2
6.8
6.1
6.3
7.3
8.1
9.0
9.2
10.2
12.4
13.3
14.1
14.7
16.3
16.7
16.3
17.9
20.6
20.5
20.8
20.4
20.4
20.6
20.9
20.8
20.6
20.6
20.5
20.7
20.6
20.3
20.5
20.3
20.1
20.1
20.0
19.8
19.9
20.0
20.0
20.2
20.4
20.3
20.8
1 End-of-year figures (except 1960) are for call dates. Other data (including those for December 1960)
are for the last Wednesday of the month.
2 Data are shown net, i.e., after deduction of valuation reserves. Includes commercial and industrial,
agricultural, security, real estate, bank, consumer, and other loans.
3 Beginning with 1948, data are shown gross of valuation reserves, instead of net as for previous years.
Prior to June 1947 and for months other than June and December, data are estimated on the basis of reported
data for all insured commercial banks and for weekly reporting member banks.
* Figures in this table .are based on book values and relate only to banks within the United States.
Therefore, they do not agree with figures in Table C-49, which are on the basis of par values and include
holdings of banks in United States Territories and possessions.
5 June data are used because complete end-of-year data are not available prior to 1935 for U.S. Government obligations and other securities.
• Not available.
7 Beginning June 1959, business loans exclude loans to financial institutions.
s Preliminary; December estimates by Council of Economic Advisers.
NOTE.—Between January and August 1959, this series was expanded to include data for all banks in
Alaska and Hawaii.
Detail will not necessarily add to totals because of rounding.
Source: Board of Governors of the Federal Reserve System (except as noted).
175
TABLE C-42.—Federal Reserve Bank credit and member bank reserves, 7929-60
[Averages of daily figures, millions of dollars]
Reserve Bank credit outstanding
Period
Total
U. S.
Member
bank
Government se- borrowcurities
ings
Member bank reserves
All
other,
mainly
float
Total
Required
Excess
Member
bank
free
reserves
(excess reserves less
borrowings)
1929: December _
1,643
446
801
396
2,395
2,347
48
-753
1930:
1931:
1932:
1933:
1934:
December
December .
December _ _
December
December
1,273
1,950
2,192
2,669
2,472
644
777
1,854
2,432
2,430
337
763
281
95
10
292
410
57
142
32
2,415
2,069
2,435
2,616
4,037
2,342
2,009
1,909
U,850
i 2, 289
73
60
526
1766
i 1, 748
-264
-703
245
671
1,738
1935:
1936:
1937:
1938:
1939:
December
December _
December _._
December.
December
2,494
2,498
2,628
2,618
2,612
2,430
2,434
2,565
2,564
2,510
6
7
16
7
3
58
57
47
47
99
5,716
6,665
6,879
8,745
11,473
2,733
4,619
5,808
5,519
6,462
2,983
2,046
1,071
3,226
5,011
2,977
2,039
1,055
3,219
5,008
1940:
1941:
1942:
1943*
1944:
December
December.
December
December
December
2,305
2,404
6,035
11,914
19, 612
2,188
2,219
5,549
11, 166
18, 693
3
5
4
90
265
114
180
483
659
654
14,049
12, 812
13, 152
12, 749
14,168
7,403
9,422
10, 776
11, 701
12, 884
6,646
3,390
2,376
1,048
1,284
6,643
3,385
2,372
958
1,019
1945:
1946:
1947:
19481949:
December
December _ _
December.- _
December
December.
24, 744
24, 746
22, 858
23, 978
19, 012
23, 708
23, 767
21,905
23,002
18, 287
334
157
224
134
118
702
821
729
842
607
16, 027
16, 517
17,261
19,990
16,291
14, 536
15, 617
16, 275
19, 193
15, 488
1,491
900
986
797
803
1,157
743
762
663
685
1950:
1951:
1952*
1953:
1954-
December.
December
December
December. _
December
21,606
25, 446
27, 299
27, 107
26, 317
20,345
23, 409
24,400
25, 639
24, 917
142
657
1,593
441
246
1,119
1,380
1,306
1,027
1,154
17,391
20, 310
21,180
19,920
19, 279
16,364
19,484
20, 457
19,227
18, 576
1,027
826
723
693
703
885
169
-870
252
457
1955:
1956*
1957:
1958:
1959*
December
December
December. _
December _ _
December
26, 853
27, 156
26, 186
28, 412
29, 435
24,602
24, 765
23, 982
26, 312
27,036
839
688
710
557
906
1,412
1,703
1,494
1,543
1,493
19,240
19, 535
19, 420
18,899
18, 932
18,646
18,883
18, 843
18,383
18,450
594
652
577
516
482
-245
-36
-133
-41
-424
1960: December. .
29,065
27,248
94
1,723
19,283
18, 515
768
674
1959: January
February
March...
April
May
June.. _.
27,564
27, 059
27,055
27, 323
27, 669
27, 937
25, 776
25, 532
25,446
25, 661
25, 920
25,963
557
508
601
676
767
921
1,231
1,019
1,008
986
982
1,053
18, 893
18, 577
18,429
18, 664
18,580
18, 451
18, 396
18, 117
17, 968
18,247
18, 132
18, 043
497
460
461
417
448
408
-60
-48
-140
-259
-319
-513
28, 441
28,509
28,687
28, 563
28, 741
29, 435
26,422
26,588
26, 674
26, 517
26, 732
27, 036
957
1,007
903
905
878
906
1,062
914
1,110
1,141
1,131
1,493
18, 671
18,613
18, 593
18, 610
18,621
18, 932
18, 271
18, 141
18, 183
18,164
18, 176
18,450
400
472
410
446
445
482
-557
-535
-493
-459
-433
-424
28, 236
27, 276
27,048
27, 227
27, 393
27, 751
25, 934
25, 322
25, 310
25, 488
25, 818
26, 124
905
816
635
602
502
425
1,397
1,138
1,103
1,137
1,073
1,202
18, 878
18, 213
18, 027
18, 104
18,239
18,294
18,334
17,758
17, 611
17, 696
17, 770
17, 828
544
455
416
408
469
466
-361
-361
-219
-194
-33
41
28, 178
28,209
28, 091
28,502
29.333
29,065
26, 619
26, 983
26, 653
27, 056
27, 871
27,248
388
293
225
149
142
94
1,171
933
1,213
1,297
1,320
1,723
18, 518
18,501
18, 570
18, 733
19,004
19, 283
18, 010
17, 961
17, 931
18, 095
18. 248
18, 515
508
540
639
638
756
768
120
247
414
489
614
674
July
August
September
October
November
December
1960: January
February
March
April
May..
June
July..
August
September
October
November
December
_
_
_
2
i Data from March 1933 through April 1934 are for licensed banks only.
* Beginning December 1959, total reserves held include vault cash allowed.
NOTE.—Data for Alaska and Hawaii included for all periods.
Detail will not necessarily add to totals because of rounding.
Source: Board of Governors of the Federal Reserve System.
I76
TABLE C-43.—Bond yields and interest rates, 1929-60
[Percent per annum]
U.S. Government
securities
Period
Corporate
bonds
(Moody's)
3-month 9-12
Treas- month Taxable Aaa
3
ury
2 bonds
bills i issues
Common
stock
yields,
200
stocks
Baa (Moody's)
Highgrade
municipal
bonds
(Standard &
Poor's)
Average
rate on Prime Fedshorteral
comterm
Remer- serve
bank
cial
loans paper, Bank
to busidis4-6
count
nessselected months rate
cities
1929
(4)
(5)
4.73
5.90
3.41
4.27
(6)
5.85
5.16
1930
1931
1932
1933
1934
4
()
1.402
.879
.515
.256
(5)
(55)
(5)
(5)
()
4.55
4.58
5.01
4.49
4.00
5.90
7.62
9.30
7.76
6.32
4.54
6.17
7.36
4.42
4.11
4.07
4.01
4.65
4.71
4.03
(fl)
(68)
(8)
()
(6)
3.59
2.64
2.73
1.73
1.02
3.04
2.11
2.82
2.56
1.54
1935
1936
1937
1938
1939
.137
.143
.447
.053
.023
(58)
(s )
(5)
()
(5)
3.60
3.24
3.26
3.19
3.01
5.75
4.77
5.03
5.80
4.96
4.06
3.50
4.77
4.38
4.15
3.40
3.07
3.10
2.91
2.76
(*)
(«)
(«)
(«)
2.1
.75
.75
.94
.81
.59
1.50
1.50
1.33
1.00
1.00
.014
.103
.326
.373
.375
(5s)
(5)
()
0.75
.79
2.46
2.47
2.48
2.84
2.77
2.83
2.73
2.72
4.75
4.33
4.28
3.91
3.61
5.31
6.25
6.67
4.89
4.81
2.50
2.10
2.36
2.06
1.86
2.1
2.0
2.2
2.6
2.4
.56
.53
.66
.69
.73
1.00
1.00
M.OO
71.00
71.00
.375
.375
.594
1.040
1.102
.81
.82
.88
1.14
1.14
2.37
2.19
2.25
2.44
2.31
2.62
2.53
2.61
2.82
2.66
3.29
3.05
3.24
3.47
3.42
4.19
3.97
5.13
5.78
6.63
1.67
1.64
2.01
2.40
2.21
2.2
2.1
2.1
2.5
2.7
.75
.81
1.03
1.44
1.49
M.OO
1.218
1.552
1.766
1.931
.953
1.26
1.73
1.81
2.07
.92
2.32
2.57
2.68
2.94
2.55
2.62
2.86
2.96
3.20
2.90
3.24
3.41
3.52
3.74
3.51
6.27
6.12
5.50
5.49
4.78
1.98
2.00
2.19
2.72
2.37
2.7
3.1
3.5
3.7
3.6
1.45
2.16
2.33
2.52
1.58
1.59
1.75
1.75
1.99
1.60
1.753
2.658
3.267
1.839
3.405
1.89
2.83
3.53
2.09
4.11
2.84
3.08
3.47
3.43
4.08
3.06
3.36
3.89
3.79
4.38
3.53
3.88
4.71
4.73
5.05
4.06
4.07
4.33
4.05
3.31
2.53
2.93
3.60
3.56
3.95
3.7
4.2
4.6
4.3
5.0
2.18
3.31
3.81
2.46
3.97
1.89
2.77
3.12
2.16
3.36
1960
2.928
3.55
4.02
4.41
5.19
3.60
3.73
5.2
3.85
3.53
1958: January
February
.March
April
May ... . .June
2.598
1.562
1.354
1.126
1.046
.881
2.56
1.93
1.77
1.35
1.21
.98
3.24
3.28
3.25
3.12
3.14
3.20
3.60
3.59
3.63
3.60
3.57
3.57
4.83
4.66
4.68
4.67
4.62
4.55
4.56
4.62
4.50
4.35
4.27
4.15
3.32
3.37
3.45
3.31
3.25
3.26
4.49
3.49
2.63
2.33
.90
.71
.54
2.94
2.75
2.35
2.03
.75
.76
.962
1.686
2.484
2.793
2.756
2.814
1.34
2.14
2.84
2.83
2.92
3.24
3.36
3.60
3.75
3.76
3.70
3.80
3.67
3.85
4.09
4.11
4.09
4.08
4.53
4.67
4.87
4.92
4.87
4.85
3.97
3.91
3.72
3.64
3.54
3.34
3.45
3.74
3.96
3.94
3.84
3.84
4.21
.50
.96
2.93
3.23
3.08
3.33
.75
.75
.91
2.00
2.40
2.™
1940
1941.
1942
1943
1944
1945
1946
1947
1948
1949
.
-
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
-.
July
August
September . . October
November
December
See footnotes at end of table, p. 178.
177
4.i7
4.50
71.00
1.00
1.34
1.50
TABLE C-43.—Bond yields and interest rates, 1929-60—Continued
[Percent per annum]
Corporate
bonds
(Moody's) Common
stock
yields,
200
3-month 9-12
stocks
Treas- month Taxable
3
Baa
Aaa
(Moody's)
2 bonds
ury
bills i issues
U.S. Government
securities
Period
1959: January.
February
March
April
May
June
-_
July
August
September
October
November
December
1960: January
February
March
April
May
June
July
August
September
October
November
December
- -
Highgrade
municipal
bonds
(Standard &
Poor's)
2.837
2.712
2.852
2.960
2.851
3.247
3.26
3.38
3.56
3.66
3.92
3.97
3.91
3.92
3.92
4.01
4.08
4.09
4.12
4.14
4.13
4.23
4.37
4.46
4.87
4.89
4.85
4.86
4.96
5.04
3.36
3.41
3.43
3.29
3.25
3.28
3.87
3.85
3.76
3.84
3.97
4.04
3.243
3.358
3.998
4.117
4.209
4.572
4.30
4.32
4.80
4.65
4.70
4.98
4.11
4.10
4.26
4.11
4.12
4.27
4.47
4.43
4.52
4.57
4.56
4.58
5.08
5.09
5.18
5.28
5.26
5.28
3.18
3.19
3.34
3.36
3.38
3.28
4.04
3.96
4.13
3.99
3.94
4.05
4.436
3.954
3.439
3.244
3.392
2.641
4.93
4.58
3.93
3.99
4.19
3.35
4.37
4.22
4.08
4.18
4.16
3.98
4.61
4.56
4.49
4.45
4.46
4.45
5.34
5.34
5.25
5.20
5.28
5.26
3.56
3.53
3.59
3.68
3.60
3.52
4.13
3.97
3.87
3.84
3.85
3.78
2.396
2.286
2.489
2.426
2.384
2.272
3.13
2.89
2.99
3.01
2.99
2.79
3.86
3.79
3.84
3.91
3.93
3.88
4.41
4.28
4.25
4.30
4.31
4.35
5.22
5.08
5.01
5.11
5.08
5.10
3.60
3.50
3.73
3.74
3.60
3.49
3.72
3.53
3.53
3.59
3.46
3.45
Average
rate on Prime
short- comterm
merbank
cial
loans paper,
to busi4-6
nessselected months
cities
4.51
4.87
8
5.27
5.36
5.34
5.35
4.97
4.99
Federal
Reserve
Bank
discount
rate
3.30
3.26
3.35
3.42
3.56
3.83
2.50
2.50
2.92
3.00
3.05
3.50
3.98
3.97
4.63
4.73
4.67
4.88
3.50
3.50
3.83
4.00
4.00
4.00
4.91
4.66
4.49
4.16
4.25
3.81
4.00
4.00
4.00^
4.00
4.00
3.65
3.39
3.34
3.39
3.30
3.28
3.23
3.50
3.18
3.00
3.00
3.00
3.00
1
Rate on new issues within period. Issues were tax exempt prior to March 1,1941, and fully taxable
thereafter.
For the period 1934-37, series includes issues with maturities of more than 3 months.
2
Includes certificates of indebtedness and selected note and bond issues (fully taxable).
s First issued in 1941. Series includes bonds which are neither due nor callable before a given number of
years as follows: April 1953 to date, 10 years; April 1952-March 1953, 12 years; October 1941-March 1952,
154years.
Treasury bills were first issued in December 1929 and were issued irregularly in 1930.
• Not available before August 1942.
8
Not available on same basis as for 1939 and subsequent years.
7 From October 30, 1942, to April 24, 1946, a preferential rate of 0.50 percent was in effect for advances
secured by Government securities maturing or callable in 1 year or less.
8
Series revised to exclude loans to nonbank financial institutions.
NOTE.—Yields and rates computed for New York City, except for short-term bank loans.
Sources: Treasury Department, Board of Governors of the Federal Reserve System, Moody's Investors
Service, and Standard & Poor's Corporation.
I7 8
TABLE G—44.—Short- and intermediate-term consumer credit outstanding, 7929-60
[Millions of dollars]
Instalment credit
End of period
Total
Total
1929
6,444
.-
Other
Autoconmobile sumer
paper 1 goods
paper 1
Noninstalment credit
Repair
Perand
modern- sonal
ization2 loans
loans
Total
Charge
acOther 3
counts
3,151
(4)
(4)
(4)
(4)
3,293
1,602
1,691
(44)
( 4)
( 4)
()
4
(44)
(4)
()
(44)
(44)
()
(4)
(44)
()
3,080
2,553
2,046
1, 894
2,033
1,476
1,265
1,020
990
1,102
1,604
1,288
1,026
904
931
1930
1931
1932
1933
1934
5,767
4,760
3,567
3,482
3,904
2,687
2,207
1,521
1,588
1,871
(44)
()
(4)
(44)
1935
1936
1937
1938
1939
4,911
6,135
6,689
6,338
7,222
2,694
3,623
4,015
3,691
4,503
(4)
(44)
()
(4)
1,497
(44)
(4)
(4)
()
1,620
(44)
()
(44)
()
298
(44)
()
(44)
()
1,088
2,217
2,512
2,674
2,647
2,719
1,183
1,300
1,336
1,362
1,414
1,034
1,212
1,338
1,285
1,305
1940
1941
1942
1943
1944
8,338
9,172
5,983
4,901
5,111
5,514
6,085
3,166
2,136
2,176
2,071
2,458
742
355
397
1,827
1,929
1,195
819
791
371
376
255
130
119
1, 245
1,322
974
832
869
2,824
3,087
2,817
2,765
2,935
1,471
1,645
1,444
1,440
1,517
1,353
1,442
1,373
1,325
1,418
1945
1946
1947
1948
1949
5,665
8,384
11, 598
14, 447
.- 17, 364
2,462
4,172
6,695
8,996
11, 590
455
981
1,924
3,018
4,555
816
1,290
2,143
2,901
3,706
182
405
718
853
898
1,009
1,496
1,910
2,224
2,431
3,203
4,212
4,903
5,451
5,774
1,612
2,076
2,381
2,722
2,854
1,591
2,136
2,522
2,729
2,920
21, 471
22, 712
27,520
31, 393
32,464
14, 703
15, 294
19, 403
23,005
23,568
6,074
5,972
7,733
9,835
9,809
4,799
4,880
6,174
6,779
6,751
,016
,085
,385
,610
,616
2,814
3,357
4,111
4,781
5,392
6,768
7,418
8,117
8,388
8,896
3,367
3,700
4,130
4,274
4,485
3,401
3,718
3,987
4,114
4,411
38, 882
42, 511
45, 286
45, 544
52, 119
28, 958
31, 897
34, 183
34, 057
39, 852
13, 472
14, 459
15, 409
14, 237
16, 549
7,634
8,580
8,782
8,923
10, 476
,689
,895
2,089
2,327
2,784
6,163
6,963
7,903
8,570
10, 043
9,924
10, 614
11, 103
11,487
12, 267
4,795
4,995
5,146
5,060
5,104
5,129
5,619
5,957
6,427
7,163
56,050
43, 300
17,925
11,150
3,025
11,200
12, 750
5,150
7,600
45, 098
44, 798
44, 980
45.726
46,635
47, 528
34, 021
34, 044
34, 274
34, 814
35, 429
36, 222
14, 268
14, 332
14, 485
14, 795
15, 112
15, 545
8,837
8,747
8,720
8,787
8,925
9,083
2,314
2,316
2,337
2,371
2,434
2,489
8,602
8,649
8,732
8,861
8,958
9,105
11,077
10, 754
10, 706
10, 912
11, 206
11,306
4,648
4,149
4,040
4,145
4,341
4,386
6,429
6,605
6,666
6,767
6,865
6,920
48, 054
48, 870
49, 425
49, 944
50, 503
52, 119
36, 869
37, 648
38, 165
38, 659
39, 024
39, 852
15, 897
16, 256
16, 443
16, 626
16, 633
16, 549
9,192
9,364
9,500
9,667
9,864
10, 476
2,547
2,609
2,664
2,713
2,754
2,784
9,233
9,419
9,558
9,653
9,773
10, 043
11, 185
11, 222
11, 260
11,285
11, 479
12, 267
4,320
4,281
4,288
4,378
4,459
5,104
6,865
6,941
6,972
6,907
7,020
7,163
__
51,468
51, 182
51, 298
52,353
52, 991
53, 662
39, 738
39, 785
40, 020
40, 651
41, 125
41, 752
16, 519
16, 626
16, 826
17, 170
17, 431
17, 755
10, 386
10, 254
10, 192
10, 281
10, 339
10, 462
2,769
2,772
2,783
2,814
2,865
2,905
10, 064
10, 133
10, 219
10, 386
10, 490
10,630
11, 730
11, 397
11, 278
11,702
11, 866
11,910
4, 59-5
4,104
3,927
4,245
4,342
4,423
7,135
7,293
7,351
7,457
7,524
7,487
_- .
53,809
54, 092
54,265
54, 344
54,626
56,050
42, 050
42, 378
42, 517
42, 591
42,703
43,300
17, 893
18, 020
18, 021
17, 992
17, 967
17, 925
10, 452
10, 477
10, 543
10, 625
10,715
11,150
2,934
2,975
3,001
3,013
3,020
3,025
10, 771
10, 906
10, 952
10, 961
11,001
11,200
11, 759
11,714
11, 748
11, 753
11,923
12, 750
4,311
4,277
4,283
4,370
4,463
5,150
7,448
7,437
7,465
7,383
7,460
7,600
--
I960
1951
1952
1953
1954
- - .
1955
1956
1957
1958
1959
- _
- ..
I960 '
1959* January
February
March
April
_ _
_
May
June
_
July
August
September
October
November
December _
1960: January
February
March.
April
May
June
July
August
_ September
October
November. .
December *__
()
()
()
1
Includes all consumer credit extended for the purpose of purchasing automobiles and other consumer
goods
and secured by the items purchased.
2
Includes only such loans held by financial institutions; those held by retail outlets are included in "other
consumer goods paper."
» Single-payment loans and service credit.
< Not available.
« Preliminary estimates by Council of Economic Advisers.
NOTE.—Series revised beginning 1958. For details, see Federal Reserve Bulletin, December 1960.
Data for Alaska and Hawaii included beginning January and August 1959, respectively.
Source: Board of Governors of the Federal Reserve System (except as noted).
179
TABLE C—45.—Instalment credit extended and repaid, 1946-60
[Millions of dollars]
Total
Period
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
19601
Other consumer Repair and
modernization
goods paper
loans
Automobile
paper
Extended
Repaid
Extended
Repaid
Extended
Repaid
8,495
12, 713
15,585
18, 108
21,558
23, 576
29, 514
31,558
31, 051
39, 039
40, 175
42,545
40, 789
49,045
50,450
6,785
10, 190
13, 284
15, 514
18, 445
22, 985
25, 405
27, 956
30, 488
33,649
37,236
40,259
40, 915
43, 407
47,000
1,969
3,692
5,217
6,967
8,530
8,956
11,764
12, 981
11, 807
16, 745
15, 563
16, 545
14,316
17, 941
17,950
1,443
2,749
4,123
5,430
7,011
9,058
10,003
10, 879
11,833
13, 082
14, 576
15, 595
15,488
15, 698
16, 575
3, 077
4,498
5,383
5,865
7.150
7,485
9,186
9,227
9,117
10,634
11, 702
11, 747
11,638
13,837
14,175
2,603
3,645
4,625
5,060
6,057
7,404
7,892
8,622
9,145
9,751
10,756
11,545
11,497
12, 307
13, 475
3,385
3,319
3,855
4,093
4,118
4,483
4,355
4,240
4,137
4,249
4,029
4,782
3,592
3,763
4,238
4,509
4,375
4,615
4,156
4,365
4,010
4,012
4,067
4,750
3,446
3,296
3,625
3,553
3,503
3,690
3,708
3,593
3,620
3,755
3,664
3,954
3,706
3,716
4,003
3,878
3,901
3,988
3,858
4,037
3,871
3,938
3,955
4,150
1,250
1,262
1,488
1,591
1,577
1,774
1,713
1,618
1,516
1,557
1,312
1,283
1,269
1,424
1,629
1,692
1,658
1,733
1,473
1,570
1,372
1,407
1,364
1,350
1,230
1,198
1,335
1,281
1,260
1,341
1,361
1,317
1,329
1,374
1,305
1,367
1,299
1,317
1,429
1,348
1,397
1,409
1,335
1,443
1,371
1,436
1,389
1,400
3,793
3,921
3,926
4,011
4,122
4,119
4,171
4,172
4,244
4,262
4,185
4,119
4,159
4,196
4,259
4,498
4,254
4,325
4,209
4,071
4,124
4,095
4,132
4,125
3,442
3,523
3,487
3,545
3,623
3,588
3,632
3,659
3,686
3,722
3,727
3,773
3,849
3,765
3,780
3,935
3,912
3,934
4,017
3,918
3,961
4,000
3,946
4,000
1,396
1,449
1,464
1,510
1,529
1,544
1,538
1,542
1,554
1,595
1,465
1,355
1,453
1,533
1,590
1,635
1,557
1,537
1,416
1,421
1,421
1,454
1,481
1,425
1,242
1,284
1,276
1,288
1,312
1,296
1,332
1,332
1,324
1,333
1,327
1,352
1,359
1,330
1,342
1,379
1,402
1,392
1,385
1,388
1,375
1,421
1,397
1,400
Extended
Personal
loans
Repaid
Extended
Repaid
423
704
714
734
835
841
,217
,344
,261
,3S8
,568
1,660
1,861
2,201
2,075
200
391
579
689
717
772
917
1,119
1,255
1,315
1,362
1,466
1,623
1,751
1,825
3,026
3,819
4,271
4,542
5,043
6,294
7,347
8,006
8,866
10, 272
11,342
12, 593
12, 974
15, 066
16,250
2,539
3,405
3,957
4,335
4,660
5,751
6,593
7,336
8,255
9,501
10,542
11, 653
12,307
13,651
15, 125
126
132
163
181
205
204
207
209
203
202
193
176
127
149
167
179
203
198
183
202
177
172
163
150
140
130
142
147
142
149
149
153
148
153
152
146
142
146
156
148
152
158
154
161
151
160
156
150
1,079
1,048
1,198
1,226
1,199
1,322
1,305
1,261
1,252
1,255
1,291
1,630
1,173
1,229
1,353
1,436
1,331
1,417
1,415
1,428
1,288
1,226
1,323
1,650
1,054
1,001
1,115
1,097
1,102
1,175
1,177
1,126
1,113
1,160
1,171
1,360
1,152
1,160
1,267
1,269
1,227
1,277
1,274
1,293
1,242
1,217
1,283
1,450
154
164
178
181
197
188
190
194
190
185
193
187
158
178
178
182
190
186
176
180
165
160
160
150
141
135
140
146
147
144
144
154
147
151
156
146
148
146
152
150
153
155
155
156
150
160
158
150
1,168
1,187
1,169
1,175
1,249
1,233
1,266
1,277
1,339
1,327
1,329
1,347
1,321
1,314
1,313
1,415
1,337
1,354
1,450
1,358
1,377
1,323
1,333
1,375
1,075
1,102
1,074
1,096
1,149
1,143
1,136
1,149
1,156
1,180
1,187
1,204
1,225
1,205
1,203
1,295
1,230
1,252
1,328
1,251
1,293
1,270
1,272
1,300
Unadjusted
1959* January
February
March
April
May
June
July
August
September.—
October . _November
December
I960' January
February
March
_ __
April
May
June
July
August
September
October
November l
December —
930
877
1,006
1,095
1,137
1,183
1,130
1,152
1,166
1,235
1,233
1,693
1,023
961
1,089
1,202
1,183
1,267
1,085
1,165
1,173
1,207
1,217
1,600
1,022
967
1,033
1,028
999
1,025
1,021
997
1,030
1,068
1,036
1,081
1, 113
1,093
1,151
1,113
1,125
1,144
1,095
1,140
1,107
1,125
1,127
1,150
Seasonally adjusted
1959: January.
February
March
April
May
1,075
1,121
1,115
1,145
1,147
1,154
1,177
1,159
1,161
1,155
1,198
1,230
1,227
1,171
1,178
1,266
1,170
1,248
1,167
1,112
1,161
1,158
1,158
1,175
984
1,002
997
1,015
1,015
1,005
1,020
1,024
1,059
1,058
1,057
1,071
1,117
1,084
1,083
1,111
1,127
1,135
1,149
1,123
1,143
1,149
1,119
1,150
June
July
August
September
October
November
December
1960; January
February
March
April
May
June
July
August _
September
October
November
December ».._
1
Preliminary; December by Council of Economic Advisers.
NOTE.—See also Table C-44.
Series revised beginning January 1958. For details, see Federal Reserve Bulletin, December 1960.
Data for Alaska and Hawaii included beginning January and August 1959, respectively. Therefore the
difference between extensions and repayments for January and August 1959 and for the year 1959 does not
equal the net change in credit outstanding.
Source: Board of Governors of the Federal Reserve System (except as noted).
180
TABLE C-46.—Mortgage debt outstanding, by type of property and of financing, 1939-60
[Billions of dollars]
Nonfarm properties
1- to 4-family houses
All
properties
End of period
Government underwritten
Total
Total
Total
FHA
insured
VA
guaranteed
Multifamily
and
comCon- mercial
venproptional i erties 2
Farm
properties
1939
35.5
28.9
16.3
1.8
1.8
14.5
12.5
6.6
1940
1941
1942
1943
1944
36.5
37.6
36.7
35.3
34.7
30.0
31.2
30.8
29.9
29.7
17.4
18.4
18.2
17.8
17.9
2.3
3.0
3.7
4.1
4.2
2.3
3.0
3.7
4.1
4.2
15.1
15.4
14.5
13.7
13.7
12.6
12.9
12.5
12.1
11.8
6.5
6.4
6.0
5.4
4.9
1945
1946
1947
1948
1949
35.5
41.8
48.9
56.2
62.7
30.8
36.9
43.9
50.9
57.1
18.6
23.0
28.2
33.3
37.6
4.3
6.1
9.3
12.5
15.0
4.1
3.7
3.8
5.3
6.9
0.2
2.4
5.5
7.2
8.1
14.3
16.9
18.9
20.8
22.6
12.2
13.8
15.7
17.6
19.5
4.8
4.9
5.1
5.3
5.6
72.8
82.3
91.4
101.3
113.7
66.7
75.6
84.2
93.6
105.4
45.2
51.7
58.5
66.1
75.7
18.9
22.9
25.4
28.1
32.1
8.6
9.7
10.8
12.0
12.8
10.3
13.2
14.6
16.1
19.3
26.3
28.8
33.1
38.0
43.6
21.6
23.9
25.7
27.5
29.7
6.1
6.7
7.3
7.8
8.3
129.9
144.5
156.6
171.9
191.1
120.9
134.6
146.1
160.7
178.8
88.2
99.0
107.6
117.7
130.8
38.9
43.9
47.2
50.1
53.8
14.3
15.5
16.5
19.7
23.8
24.6
28.4
30.7
30.4
30.0
49.3
55.1
60.4
67.6
77.0
32.6
35.6
38.5
43.0
47.9
9.1
9.9
10.5
11.3
12.3
I9603
206.4
193.3
141.7
56.3
26.6
29.7
85.4
51.6
13.1
1958' First quarter
Second quarter
Third quarter
Fourth quarter.
159. 1
162.8
167.1
171.9
148.5
151.9
156.0
160.7
109.1
111.5
114.5
117.7
47.7
48.3
49.1
50.1
17.1
17.7
18.6
19.7
30.6
30.6
30.5
30.4
61.4
63.2
65.4
67.6
39.3
40.4
41.5
43.0
10.6
10.9
11.1
11.3
175.9
181.5
186.7
191.1
164.4
169.5
174.5
178.8
120.5
124.3
128. C
130.8
51.3
52.1
53.1
53.8
20.9
21.8
22.9
23.8
30.4
30.3
30.2
30.0
69.2
72.2
74.9
77.0
43.9
45.2
46.6
47.9
11.5
11.9
12.2
12.3
194.4
198.5
202.8
206.4
181.9
185.7
189.8
193.3
133.2
136.1
139.1
141.7
54.5
55.0
55.8
56.3
24.6
25.2
26.0
26.6
29.9
29.8
29.8
29.7
78.7
81.1
83.3
85.4
48.7
49.7
50.7
51.6
12.5
12.8
13.0
13.1
1950
1951
1952
1953
1954
_
_-.
.
1955
1956
1957
1958
1959
-
--
_
1959- First quarter 3
Second quarter3 3.
Third quarter 3
Fourth quarter
I960- First quarter 3 3
Second quarter3
Third quarter 3
Fourth quarter
__
12 Derived figures.
Includes negligible amount of farm loans held by savings and loan associations.
3
Preliminary; fourth quarter 1960 by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Board of Governors of the Federal Reserve System, estimated and compiled from data supplied
by various Government and private organizations (except as noted).
181
TABLE C-47.—Net public and private debt, 1929-60l
[Billions of dollars]
Private
Individual and noncorporate
Corporate
Fed- State
and
eral local
Nonfarm
End of
govperiod * Total Governern- Total
ment ment'
ComShortTotal Longmerterm term Total Farm'
Mortcial
ConTotal gage
and sumer
financial*
1929
190.9
16.5
13.2 161.2
88.9
47.3
41.6
72.3
12.2
60.1
31.2
22.4
6.4
1930
1931
1932
1933
1934
191.0
181.9
174 6
168 5
171.4
16.5
18.5
21.3
24 3
30.4
14.1
15.5
16.6
16.7
15.9
160.4
147.9
136.7
127.5
125.1
89.3
83.5
80.0
76.9
75.5
51.1
50.3
49.2
47.9
44.6
38.2
33 2
30 8
29.1
30.9
71.1
64 4
56.7
50.6
49.6
11.8
11.1
10.1
9.1
8.9
59.4
53.3
46.6
41.5
40.7
32 0
30 9
290
26.3
25.5
21.6
17 6
14.0
11.7
11.2
5.8
4.8
3.6
3.5
3.9
174.7
180.3
182.0
" 179 6
183.2
34.4
37.7
39.2
40.5
42.6
16.0
16 2
16.1
16 0
16.3
124.2
126.4
126.7
123.1
124.3
74.8
76.1
75.8
73.3
73.5
43.6
42.5
43.5
44 8
44.4
31.2
33.5
32 3
28 4
29.2
49.4
50.3
60.9
49.8
50.8
9.0
86
8.6
9.0
8.8
40.4
41.7
42.3
40.9
42.0
24 7
24 4
24 3
24 5
25.0
10.8
11.2
11.3
10.1
9.8
4.9
6.1
6.7
6.3
7.2
1940
1941
1942
1943... _
1944
189.9 44.8
211.6 56.3
259.0 101.7
313.6 154.4
370.8 211.9
16.5
16.3
15.8
14.9
14.1
128.6
139.0
141.5
144.3
144.8
75 6
83.4
91.6
95.5
94.1
43.7
43.6
42.7
41.0
39.8
31.9
39.8
49.0
54.5
54.3
53.0
55.6
49 9
48.8
50.7
9.1
9.2
89
82
7.7
43.9
46.4
41.0
40.5
43.0
26.0
27 2
26.8
26.2
26.1
9.5
10.0
8.1
9.5
11.8
8.3
9.2
6.0
4.9
5.1
1945
1946
1947
1948
1949...
406.3
397.4
417.4
433.6
448.4
252.7
229.7
223.3
216.5
218.6
13.7
13 6
14.4
16.2
18.1
139.9
154. 1
179.7
200.9
211.7
85 3
93 5
108.9
117.8
118.0
38.3
41 3
46.1
52.5
56.5
47.0
52 2
62.8
65.3
61.5
54 6
60.6
70.8
83.1
93.7
7.2
7.6
8.6
10.8
11.9
47.4
53.0
62.2
72.3
81.8
27 0
32.5
38.7
45.1
50.6
14.8
12 1
11.9
12.9
13.9
5.7
8.4
11.6
14.4
17.3
1950
1951
1952......
1953
1954
490.3
524.0
555.2
586.5
612.0
218.7
218.5
222.9
228.1
230.2
20.7
23.3
25.8
28.6
33.4
250.9
282.2
306.5
329.8
348.4
142.1
162.5
171.0
179.5
182.8
60.1
66.6
73.3
78.3
82.9
81.9
95.9
97.7
101.2
100.0
108.8
119.7
135.5
150.4
165.5
12.2
13.6
15.1
16.9
17.6
96.6
106.1
120.3
133.5
147.9
59.4
67.4
75.2
83.8
94.6
15.8
16.1
17.8
18.3
20.8
21.4
22.6
27.4
31.4
32.5
1955
1956
1957
1958
1959
672.3
707.5
739.4
779.8
846.4
231.5
225.4
224.4
232.7
243.2
38.4
42.7
46.7
50.9
55.6
402.5
439.4
468.2
496.1
547.5
212.1
231.7
246.7
255.7
281.7
90.0
100.1
112.2
121.6
129.9
122.2
131.7
134.6
134.1
151.7
190.4
207.7
221.5
240.4
265.8
18.8
19.5
20.3
23.3
23.7
171.6
188.1
201.2
217.1
242.1
108.7
121.2
131.6
144.6
160.8
23.9
«24. 4
24.3
26.9
29.2
38.9
42.5
45.3
45.6
52.0
1960 •
882.0 241.0
60.0 581.0 294.5 138.5
156.0
286.5
25.7
260.8
174.2
30.6
56.0
1935
1936
1937
1938
1939
t
1
Net public and private debt outstanding is a comprehensive aggregate of the indebtedness of borrowers
after elimination of certain types of duplicating governmental and corporate debt. For a further explanation of the concept, see Survey of Current Business, October 1950.
* Data for State and local government debt are for June 30.
» Farm mortgages and farm production loans. Farmers' financial and consumer debt is included in the
nonfarm categories.
« Financial debt is debt owed to banks for purchasing or carrying securities, customers' debt to brokers,
and
debt owed to life insurance companies by policyholders.
1
Preliminary estimates by Council of Economic Advisers.
NOTE.—Revisions beginning 1958 in the consumer credit data of the Board of Governors of the Federal
Reserve System have not yet been incorporated into this series.
Detail will not necessarily add to totals because of rounding.
Sources: Department of Agriculture, Department of Commerce, Treasury Department, Board of Governors of the Federal Reserve System, Federal Savings and Loan Insurance Corporation, and Interstate
C ommerce Commission (except as noted).
l82
GOVERNMENT FINANCE
TABLE C-48.—U.S. Government debt, by kind of obligation, 1929-60
[Billions of dollars]
Interest-bearing public debt
Gross
public
debt and
guaranteed
issues i
End of period
1929
1930
1931
1932
--- - ..
1933
1934
1935
1936
1937
1938
1039
1940
1941
1942.
1943
.. -.
1944
1945
1946
1947
1948
1949
1960
1951
1952
1953
1064
1055
- _.
1056
1057
1958
1059
1060
1969: January _
February. __
March .
April
May
June
July..
August
September...
October
November
December
1060: January
February _ _ _
March
April
May
June
July
August
September
October
November ._
December
_.
-
..
.
._
..
16.3
16.0
17.8
20.8
24.0
31.5
35.1
39.1
41.9
44.4
47.6
50.9
64.3
112.5
170.1
232.1
278.7
259.5
257.0
252.9
257.2
256.7
259.5
267.4
275. 2
278.8
280.8
276.7
275.0
283.0
290.9
290.4
285.9
285.2
282.2
285.5
286.4
284.8
288.8
290.5
288.4
291.4
290.7
290.9
291.2
290.7
287.0
288.9
289.5
286.5
288.5
288.8
288.6
290.6
290.6
290.4
Marketable public
issues
Nonmarketable public issues
Shortterm
issues 2
United
States
savings
bonds
Treasury
bonds
3.3
2.9
2.8
5.9
7.5
11.1
14.2
12.5
12.5
9.8
7.7
7.5
8.0
27.0
47.1
69.9
78.2
57.1
47.7
45.9
50.2
58.3
65.6
68.7
77.3
76.0
81.3
79.5
82.1
92.2
103.5
109.2
95.6
95.1
92.1
95.8
96.1
93.2
98.2
99.6
98.2
102.6
102.1
103.5
105.1
104.6
100.7
103.0
102.5
102.5
105.6
103.9
104.0
107.0
109.1
109.2
11.3
11.3
13.5
13.4
14.7
15.4
14.3
19.5
20.5
24.0
26.9
28.0
33.4
49.3
67.0
01.6
120.4
119.3
117.0
111.4
104.8
04.0
76.0
79.8
77.2
81.8
81.9
80.8
82.1
83.4
84.8
79.8
84.1
84.2
84.2
84.8
84.8
84.8
84.8
84.8
84.8
84.8
84.8
84.8
84.7
84.7
84.7
85.1
85.1
81.2
81.2
82.3
82.3
82.3
79.7
79.8
0.2
.5
1.0
1.4
2.2
3.2
6.1
15.0
27.4
40.4
48.2
49.8
52.1
55.1
56.7
58.0
67.6
57.0
57.7
57.7
67.9
56.3
52.6
61.2
48.2
47.2
51.0
51.0
51.0
50.8
50.7
50.5
50.2
50.0
49.7
49.4
49.3
48.2
47.9
47.8
47.8
47.6
47.6
47.5
47.4
47.3
47.3
47.4
47.4
47.2
Treasury
tax and
savings
notes
2.5
6.4
8.6
9.8
8.2
5.7
5.4
4.6
7.6
8.6
7.5
5.8
6.0
4.5
<•)
(•)
(«)
<*)
00
(•)
(•)
(•)
(•)
(«)
(•)
(•)
(«)
<•)
(«)
(•)
(«)6
()
(6)
(«)fl
()
(«)
(•)6
()
(')
(«)
(•)
(•)
(«)
(•)
Investment
bonds 3
1.0
1.0
1.0
1.0
13.0
13.4
12.9
12.7
12.3
11.6
10.3
9.0
7.6
6.2
8.9
8.8
8.7
8.5
8.4
8.4
8.3
8.3
8.1
7.8
7.7
7.6
7.5
7.4
7.2
7.0
6.9
6.8
6.7
6.6
6.5
6.3
6.2
6.2
Special
issues *
O.f
.8
.4
.4
.4
.6
.7
.6
2.2
3.2
4.2
5.4
7.C
O.C
12. 1
16. S
20. (
24. C
20. C
31.7
33. t
33.7
35 J
39.5
41.2
42. «
43 J
45. (
45. f
44. £
43. f
44.3
43 J
43. t
43. (
43.5
44.5
44. *
44.1
44.'
44.4
43 (
43 (
43 A
42. (
42. *
43.:
42. 1
43. (
44. <
44. J
45.1
45. (
44.J
44. <
44.J
1 Total includes non-interest-bearing debt, fully guaranteed securities (except those held by the Treasury), Postal Savings bonds, prewar bonds, adjusted service bonds, depositary bonds, and armed forces
leave bonds, not shown separately. Not all of total shown is subject to statutory debt limitation.
2 Bills, certificates of indebtedness, and notes.
3
Series A bonds and, beginning April 1951, Series B convertible bonds.
«Issued to U.S.Government investment accounts. These accounts also held $10.7 billion of public
marketable and nonmarketable issues on December 31,1960.
• Less than $60 million.
• The last series of Treasury savings notes matured in April 1066.
Source: Treasury Department.
183
TABLE C-49.—Estimated ownership of Federal obligations, 1939-60
[Par values,1 billions of dollars]
Gross public debt and guaranteed issues 2
End of period
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948 .
.
1949
1950
1951
1952
1953
_—
1954
1965
^_
1956
___
1957
1958
1959
—
19608J959: January
February
March
April
May
June- „ _^
July
August
September _ _ October
November
December
1960: January
February
March
April
May
June
July .__
August
September
October
November
December *__ _
Held by others
Held
by U.S.
GovMutual
ernsavings
State
Total ment
Com- banks Other
and
invest- Total Federal
mercial
and
inReserve
corporalocal Individ3
ment
uals 6
banks
tions
*
banks
governsurance
accomments
5
counts
panies
47.6
50.9
64.3
112.5
170.1
232.1
278.7
259.5
257.0
252.9
257.2
256.7
259.5
267.4
275.2
278.8
280.8
276.7
275.0
283.0
290.9
290.4
285.9
285.2
282.2
285.5
286.4
284.8
288.8
290.5
288.4
291.4
290.7
290.9
291.2
290.7
287.0
288.9
289.5
286.5
288. 5
288.8
288.6
290.6
290.6
290.4
6.5
7.6
9.5
12.2
16.9
21.7
27.0
30.9
34.4
37.3
39.4
39.2
42.3
45.9
48.3
49.6
51.7
54.0
55.2
54.4
53.7
55.1
53.5
53.6
53.7
53.1
54.2
54.6
54.1
54.6
54.2
53.6
53.8
53.7
53.2
53.2
53.7
53.2
54.4
55.3
54.8
55.9
55.5
55.0
55.4
55.1
41.1
43.3
54.7
100.2
153.2
210.5
251.6
228.6
222.6
215.5
217.8
217.5
217.2
221.6
226.9
229.2
229.1
222.7
219.8
228.6
237.3
235.3
232.4
231.6
228.4
232.4
232.2
230.2
234.7
235.9
234.2
237.8
236. 9
237.3
238.0
237.5
233.3
235.7
235.1
231.1
233.6
232.9
233.0
235. 6
235.2
235.3
2.5
2.2
2.3
6.2
11.5
18.8
24.3
23.3
22.6
23.3
18.9
20.8
23.8
24.7
25.9
24.9
24.8
24.9
24.2
26.3
26.6
27.4
25.7
25.3
25.5
25.7
25.9
26.0
26.5
26.7
26.6
26.6
26.9
26.6
25.5
25.2
25.3
25.6
26.0
26.5
26.9
26.8
27.0
27.4
27.5
27.4
15.9
17.3
21.4
41.1
59.9
77.7
90.8
74.5
68.7
62.5
66.8
61.8
61.6
63.4
63.7
69.2
62.0
59.5
59.5
67.5
60.3
62.1
68.3
66.4
63.3
64.8
63.4
61.5
62.1
61.1
60.3
60.8
59.5
60.3
59.1
57.1
54.9
57.0
56.2
55.6
57.7
57.9
59.1
61.9
61.8
62.1
9.4
10.1
11.9
15.8
21.2
28.0
34.7
36.7
35.9
32.7
31.5
29.6
26.3
25.5
25.1
24.1
23.1
21.3
20.2
19.9
19.3
18.0
20.3
20.1
20.0
20.0
20.0
19.9
19.9
20.0
19.9
19.6
19.4
19.3
19.4
19.3
19.1
18.9
18.7
18.4
18.4
18.4
18.3
18.1
18.1
18.0
2.2
2.0
4.0
10.1
16.4
21.4
22.2
15.3
14.1
14.8
16.8
19.7
20.7
19.9
21.5
19.2
23.5
19.1
18.6
19.6
23.5
20.5
21.3
21.6
21.0
22.4
22.9
21.5
23.4
24.4
22.9
24.1
24.2
23.5
25.4
26.2
23.4
24.1
24.7
21.7
22.1
21.4
20.3
20.1
20.6
20.5
0.4
.5
.7
1.0
2.1
4.3
6.5
6.3
7.3
7.9
8.1
8.8
9.6
11.1
12.7
14.4
15.1
16.1
17.0
16.7
17.7
17.0
17.0
16.9
16.8
16.9
16.8
16.7
17.1
17.3
17.4
17.5
17.6
17.7
17.8
18.0
18.2
18.0
18.0
18.1
17.9
17.7
17.4
17.3
17.2
17.0
10.1
10.6
13.6
23.7
37.6
53.3
64.1
64.2
65.7
65.5
66.3
66.3
64.6
65.2
64.8
63.4
65.0
65.7
63.7
62.0
67.8
66.8
63.0
63.7
64.4
64.6
64.8
64.9
65.2
65.5
66.0
67.1
67.2
67.8
68.5
68.7
69.5
68.8
68.5
68.2
67.9
67.7
67.9
67.6
67.4
66.8
Miscellaneous
investors?
0.7
.7
.9
2.3
4.4
7.0
9.1
8.1
8.4
8.9
9.4
10.5
10.6
11.7
13.2
13.9
15.6
16.1
16.6
16.6
22.1
23.5
16.8
17.4
17.4
18.0
18.4
19.7
20.6
20.8
21.2
21.9
22.1
22.1
22.3
22.9
22.9
23.3
22.9
22.5
22.8
23.1
22.9
23.2
22.6
23.5
i United States savings bonds, series A-F and J, are included at current redemption value.
* Excludes guaranteed securities held by the Treasury. Not all of total shown is subject to statutory
debt limitation.
»Includes commercial banks, trust companies, and stock savings banks in the United States and
Territories and possessions; figures exclude securities held in trust departments. Since the estimates in this
table are on the basis of par values and include holdings of banks in United States Territories and possessions,
they do not agree with the estimates in Table C-41, which are based on book values and relate only ta banks
within
the United States.
4
Exclusive of banks and insurance companies.
* Includes trust, sinking, and investment funds of State and local governments and their agencies, and
of Territories and possessions.
• Includes partnerships and personal trust accounts.
f Includes savings and loan associations, nonprofit institutions, corporate pension trust funds, dealers
and brokers, and investments of foreign balances and international accounts in this country. Beginning
with December 1946, the international accounts include investments by the International Bank for Reconstruction and Development, the International Monetary Fund, and the International Development Association in special non-interest-bearing notes issued by the U.S. Government. Beginning with June 30,
1947, includes holdings of Federal land banks.
• Preliminary estimates by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Treasury Department (except as noted).
184
TABLE C-50.—Average length and maturity distribution of marketable interest-bearing
public debt, 7946-60
Maturity class
Amount
outstanding Within
1 year
End of period
Ito5
years
years Average length
5 to 10 10 to 20 20and
years
years
over
Millions of dollars
Fiscal year:
1946
1947
1948
1949
.
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
-
I960
1959* January
February
M arch
April
May
June
-
July
August _
September
October
-_ -
N<"»Vfvmhp.r
December
I960* January
February
March
April
May
June
-
_-.
__ __
-
July
August
September
October
November
December
Years Months
189, 606
168, 702
160, 346
155, 147
61, 974
51, 211
48, 742
48, 130
24, 763
21, 851
21, 630
32, 562
41, 807
35, 562
32, 264
16, 746
17, 461
18, 597
16, 229
22, 821
43, 599
41, 481
41, 481
34, 888
9
9
9
8
1
5
2
9
155, 310
137, 917
140, 407
147, 335
150, 354
42, 338
43, 908
46, 367
65, 270
62, 734
51, 292
46, 526
47, 814
36, 161
29, 866
7,792
8,707
13, 933
15, 651
27, 515
28, 035
29, 979
25, 700
28, 662
28, 634
25, 853
8,797
~6, 594
1,592
1,606
8
6
5
5
5
2
7
8
4
6
155, 206
154, 953
155, 705
166, 675
178, 027
49, 703
58, 714
71, 952
67, 782
72, 958
39, 107
34, 401
40, 669
42, 557
58, 304
34, 253
28, 908
12, 328
21, 476
17, 052
28, 613
28, 578
26, 407
27, 652
21, 625
3,530
4,351
4,349
7,208
8,088
5
5
4
5
4
10
4
9
3
7
183, 845
70, 467
72, 844
20, 246
12, 630
7,658
4
4
179, 816
179, 308
176, 293
180, 709
180, 993
178, 027
73, 210
71, 191
68, 025
70, 115
75, 954
72, 958
56, 650
61, 986
62, 117
63, 811
58, 265
58, 304
17, 167
13, 312
13, 312
13, 311
13, 311
17, 052
24, 786
24, 779
24, 771
25, 383
25, 375
21, 625
8,004
8,039
8,068
8,089
8,088
8,088
4
4
4
4
4
4
8
9
9
8
7
7
183, 057
184, 463
183, 057
187, 433
186, 957
188, 269
77, 970
75, 158
73, 656
75, 836
77, 947
79, 941
58, 331
62, 556
62, 660
64, 864
62, 284
61, 609
17, 052
17, 051
17, 051
18, 326
18, 325
22, 139
21, 617
21, 611
21, 604
20, 321
20, 316
16, 494
8,088
8,087
8,087
8,086
8, 085
8,085
4
4
4
4
4
4
8
6
5
4
4
4
189, 856
189, 384
185, 437
188, 147
187, 735
183, 845
81, 455
76, 735
72, 721
72, 807
74, 335
70, 467
61, 691
72, 849
72, 934
75, 133
73, 184
72, 844
22, 138
15, 240
19, 931
19, 930
19, 928
20, 246
16, 489
17, 365
12, 659
12, 649
12, 641
12, 630
8,084
7,194
7,193
7,629
7,648
7,658
4
4
4
4
4
4
2
3
4
3
3
4
186, 915
186, 294
186, 366
189, 358
188, 840
189, 015
73, 479
73, 892
76, 148
79, 203
75, 324
75, 315
72,911
70, 819
68, 646
68, 595
70, 755
70, 812
20, 245
21, 314
21, 312
17, 332
18, 544
18, 684
12, 625
12, 617
12, 610
12, 601
13, 235
13, 224
7,655
7,653
7,650
11, 627
10, 982
10, 979
4
4
4
4
4
4
3
3
2
7
8
7
NOTE.—All issues classified to final maturity except partially tax-exempt bonds, which are classified
to earliest call date.
Source: Treasury Department.
576899 O—61-
-14
185
TABLE C-51.—Federal budget receipts and expenditures ana the public debt^ 1929-62
[Millions of dollars]
Net
budget
receipts 1
Period
Budget
expenditures
Surplus
or
deficit (-)
Public debt
at end 2of
year
Fiscal year:
1929 ._
3,861
3,127
734
16, 931
1930
1931
1932
1933
1934
4,058
3,116
1,924
2,021
3,064
3,320
3,577
4,659
4,623
6,694
738
-462
-2, 735
-2,602
-3, 630
16, 185
16, 801
19, 487
22, 539
27, 053
3,730
4,069
4,979
5,615
4,996
6,521
8,493
7,756
6,792
8,858
-2, 791
-4, 425
-2, 777
-1,177
-3, 862
28, 701
33, 779
36,425
37, 165
40,440
5,144
7,103
12, 555
21, 987
43, 635
9,062
13, 262
34, 046
79, 407
95, 059
-3,918
-6, 159
-21, 490
-57, 420
-51, 423
42,968
48, 961
72,422
136, 696
201, 003
44, 475
39, 771
39, 786
98, 416
60, 448
39, 032
-53, 941
-20, 676
754
258, 682
269, 422
258, 286
1935
1936
1937
1938
1939
....
1940
1941
1942
1943
1944
.
.
.
1945
1946
1947
New basis 3
1948
1949
41,375
37, 663
32, 955
39, 474
8,419
-1,811
252, 292
252, 770
1950
1951
1952
1953
1954
36, 422
47, 480
61, 287
64, 671
64, 420
39, 544
43, 970
65,303
74, 120
67, 537
-3, 122
3,510
-4,017
-9, 449
-3,117
257,357
255, 222
259, 105
266, 071
271, 260
60, 209
67, 850
70, 562
68, 550
67,915
64, 389
66, 224
68, 966
71,369
80, 342
-4, 180
1,626
1,596
-2,819
-12,427
274, 374
272, 751
270, 527
276, 343
284, 706
77, 763
79, 024
82, 333
76, 539
78, 945
80, 865
1,224
79
1,468
286, 331
284, 900
283, 400
1955
1956
1957
1958
1959
.-
_
_
1960
1961 4*
1Q62
1
Gross receipts less refunds of receipts and transfers of tax receipts to the old-age and survivors
insurance trust fund, the disability insurance trust fund, the railroad retirement account, and the highway
trust
fund.
2
Excludes guaranteed obligations; therefore, differs from total shown in Tables C-48 and C-49. The
change in the public debt from year to year reflects not only the budget surplus or deficit but also changes
in the Treasury's cash balances, the effect of certain trust fund transactions, and direct borrowing from the
public by certain Government enterprises.
3 Beginning with fiscal year 1948, net budget receipts and budget expenditures have been adjusted to
exclude certain interfund transactions. The change does not affect the budget surplus or deficit. (Figures
for calendar years have not yet been adjusted to exclude interfund transactions, and therefore are not shown
in this table.)
* Estimate.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department and Bureau of the Budget.
186
TABLE C-52.—Federal budget receipts by source and expenditures by Junction, fiscal years 1946-62
[Millions of dollars]
Budget receipts by source
Fiscal
year
Total
Budget expenditures by function
Indi- CorpoAll
vidual ration Excise other
income income taxes
retaxes taxes
ceipts J
Veterans'
servnaTotal
ices
tional
and
security benefits
Major
AgriculAll
ture
and Inter- other
agriest expendculturitures 2
al resources
Budget
surplus
or deficit (-)
4,816
5,012
5,248
5,445
7,294 -20, 676
754
11,026
8,708
8,419
11,884
-1,811
1,045
2,936
2,557
5,817
5,714
5,934
6,583
6,470
11,288
9,819
9,486
9,941
7,350
-3, 122
3,510
-4,017
-9, 449
-3,117
4,457
4,756
4,793
5,026
5,174
4,388
4,867
4,525
4,389
6,529
6,438
6,846
7,308
7,689
7,671
8,480
9,114
9,070
10, 123
14, 542
-4,180
1,626
1,596
-2, 819
-12,427
5,060
5,227
5,296
4,838
4,936
5,101
9,266
8,993
8,593
11,748
13,859
14,484
1,224
1946. .
1947. .
194831949 .-
39, 771
16, 157
17, 835
19, 305
15, 548
11, 833
39, 786
41, 375
37, 663
8,569
9,678
11, 195
6,999
7,207
7,356
7,502
4,782
6,175
5,037
3,418
60,448
39, 032
32, 955
39, 474
43, 176
14, 368
11, 771
12, 908
4,415
I960.1951_ _
1952 1953 . _
1954. _
36, 422
47, 480
61, 287
64, 671
64, 420
15, 745
21, 643
27, 913
30, 108
29, 542
10, 448
14, 106
21, 225
21, 238
21, 101
7,549
8,648
8,851
9,868
9,945
2,679
3,083
3,298
3,456
3,833
39, 544
43, 970
65, 303
74, 120
67, 537
13,009
22, 444
43, 976
50,363
46, 904
6,646
5,342
4,863
4,298
4,256
2,783
1955 - .
1956. 1957 . _
1958 -.
1959. _
60,209
67, 850
70, 562
68, 550
67, 915
28, 747
32, 188
35, 620
34, 724
36, 719
17,861
20, 880
21, 167
20, 074
17, 309
9,131
9,929
9,055
8,612
8,504
4,469
4,854
4, 721
5,141
5,384
64,389
66, 224
68, 966
71, 369
80, 342
40, 626
40, 641
43, 270
44, 142
46, 426
1960__ 77, 763
1961 *. 79, 024
1962 *_ 82,333
40, 715
43,300
45, 500
21, 494
20,400
20, 900
9,137
9,322
9,725
6,418
6,002
6,208
76, 539
78, 945
80,865
45, 627
45, 930
47, 392
7,381
6,653
6,725
747
1,243
575
2,512
650
79
1,468
1 Includes employment taxes, estate and gift taxes, customs revenues, and miscellaneous receipts. See
also
2 footnote 3.
Includes expenditures for international affairs and finance (including defense support under the mutual
security program), labor and welfare, natural resources, commerce, housing, and space technology, and
general government; also includes adjustment to daily Treasury statement (for actuals) and allowance for
contingencies (for estimates). See also footnote 3.
3 Beginning with 1948, net budget receipts and budget expenditures have been adjusted to exclude certain interfund transactions. The adjustment was made in the totals and the "all other" categories. The
change does not affect the budget surplus or deficit.
* Estimate.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department and Bureau of the Budget.
187
TABLE C-53.—Government cash receipts from and payments to the public, 7946-62
[Billions of dollars]
Federal 1
Total
State and local *
Cash
receipts
Cash
payments
Excess
of receipts
or of
payments
(-)
Cash
receipts
Cash
payments
Excess
of receipts
or of
payments
(-)
Cash
receipts
Cash
payments
1946.
1947
1948
1949
54.2
55.6
59.6
57.6
70.2
47.5
50.2
56.3
-16.0
8.1
9.4
1.3
43.5
43.5
45.4
41.6
61.7
36.9
36.5
40.6
-18.2
6.6
8.9
1.0
10.7
12.1
14.2
16.0
8.5
10.6
13.7
15.7
2.2
1.5
.5
.3
1950
1951
1952
1953
1954
58.2
72.5
88.7
93.9
95.6
61.5
65.2
88.9
99.1
96.1
-3.3
7.3
-.2
-5.2
-.4
40.9
53.4
68.0
71.5
71.6
43.1
45.8
68.0
76.8
71.9
-2.2
7.6
(»)
-5.3
-.2
17.3
19.1
20.7
22.4
24.0
18.4
19.4
20.9
22.3
24.2
-1.1
-.3
-.2
.1
-.2
93.5
105.8
113.5
115.0
117.2
97.5
101.6
111.8
118.2
132.7
-4.0
4.2
1.7
-3.2
-15.5
67.8
77.1
82.1
81.9
81.7
70.5
72.6
80.0
83.4
94.8
-2.7
4.5
2.1
-1.5
-13.1
25.7
28.7
31.4
33.1
35.5
27.0
29.0
31.8
34.8
37.9
-1.3
-.3
-.4
-1.7
-2.4
133.5
133.5
(3)
95.1
99.0
103.1
94.3
97.9
101.8
.8
1.1
1.3
38.4
39.2
-.8
52.9
57.4
60.0
57.9
50.9
50.7
51.8
59.8
2.0
6.7
8.2
-1.8
41.4
44.3
44.9
41.3
41.4
38.6
36.9
42.6
5.7
8.0
-1.3
11.4
13.1
15.1
16.6
9.5
12.1
14.9
17.1
1.9
1.0
.2
-.5
60.4
79.1
93.0
93.5
93.3
61.1
78.3
93.6
100.4
95.3
-.6
.9
-.6
-6.9
-2.0
42.4
59.3
71.3
70.2
68.6
42.0
58.0
72.0
77.4
69.7
.5
1.2
-.6
-7.2
-1.1
18.0
19.9
21.7
23.2
24.7
19.1
20.2
21.6
23.0
25.6
-1.1
-.4
.1
.3
-.9
98.4
110.2
116.8
115.9
124.5
100.2
105.2
116.6
125.2
133.7
-1.8
5.0
.2
-9.3
-9.2
71.4
80.3
84.5
81.7
87.6
72.2
74.8
83.3
89.0
95.6
-.7
5.5
1.2
-7.3
-8.0
26.9
29.9
32.3
34.2
36.9
28.0
30.4
33.3
36.2
38.1
-1.1
-.5
-1.0
-2.0
-1.2
97.8
94.3
3.5
Period
Fiscal year:
.
1955 . _
1956.
1957
19581959 . .
1960
1961 <_
1962 <
,
_._
—
Calendar year:
1946
1947
1948
1949 . _ _
1950 ..
1951
1952
1953
1954
1955
1956
1957
1958
1959
__-
1960 5
(3)
Excess
of receipts
or of
payments
(-)
1
For derivation of Federal cash receipts and payments, see Budget of the United States Government for the
Fiscal Year ending June 30, 1968, and Table C-55.
* Estimated by Council of Economic Advisers from receipts and expenditures in the national income
accounts. Cash receipts consist of personal tax and nontax receipts, indirect business tax and nontax
accruals, and corporate tax accruals adjusted to a collection basis. Cash payments are total expenditures
less Federal grants-in-aid and less contributions for social insurance. (Federal grants-in-aid are therefore
excluded from State and local receipts and payments and included only in Federal payments.) See
Table C-54.
» Less than $50 million.
4
Estimate.
8
Preliminary.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department, Bureau of the Budget, Department of Commerce, and Council of Economic Advisers.
188
TABLE C-54.—Government receipts and expenditures as shown in the national income accounts,
1955-60
[Calendar years, billions of dollars]
Receipts or expenditures
1955
1956
1957
1958
1959
I960
1958
1959
1960
SecFirst ond
half half
SecFirst ond
half half
SecFirst ond
half half 1
1
Seasonally adjusted annual rates
Total government
Receipts
Expenditures
Excess of receipts or of
expenditures (— )
101.4 109. 5 116.3 115.2 129.1 2137.3 111.8 118.6 128.8 129.3 137.7
98.6 104.3 115.3 126.6 131.6 137.0 123.3 130.2 131.2 132.2 134.6 139.6
2.9
5.2
-2.5
1.0 -11.4
2 . 3 -11.5 -11.5 -2.4 -3.0
3.0
Federal Government *
Receipts
Personal tax and nontax receipts _.
Corporate profits tax
accruals
Indirect business tax
and nontax accruals.
Contributions for social insurance
72.8
77.5
81.7
78.6
89.5 295.4
76.0
81.2
89.8
89.2
96.1
00
31.5
35.2
37.3
36.7
39.8
43.4
36.2
37.2
39.6
40.1
43.0
43.7
20.9
20.2
19.9
17.6
22.0 220.8
15.7
19.6
22.9
21.0
21.8
11.0
11.6
12.2
11.9
12.9
13.8
11.8
11.9
12.7
13.2
13.9
13.8
9.3
10.6
12.2
12.4
14.7
17.4
12.2
12.6
14.6
14.8
17.4
17.5
E xpenditures
Purchases of goods
and services
Transfer payments
To persons...
Foreign (net)
Grants-in-aid to State
and local governments
Net interest paid
Subsidies less current
surplus of Government enterprises
68.9
71.8
79.7
87.9
90.9
92.2
85.4
90.7
90.5
91.2
90.9
93.6
45.3
14.0
12.5
1.5
45.7
14.9
13.5
1.5
49.7
17.4
16.0
1.5
52.6
21.3
20.0
1.3
53.3
22.0
20.5
1.5
52.3 51.2
23.9 20.6
22.3 19.4
1.6 1.2
54.0
22.2
20.8
1.4
53.5
21.6
20.2
1.4
53.0
22.4
20.8
1.6
51.7
23.2
21.5
1.6
62.9
24.6
23.0
1.6
3.0
4.9
3.3
5.2
4.1
5.7
5.4
5.6
6.6
6.4
6.1
7.2
5.1
5.6
5.8
5.6
6.6
6.1
6.6
6.8
6.2
7.1
6.1
7.4
1.6
2.7
2.8
3.0
2.6
2.6
3.0
3.0
2.6
2.5
2.6
2.6
3.8
5.7
2.0 -9.3 -1.4
-.8 -2.1
5.2
31.7
35.2
38.6
42.1
4.2
4.8
5.3
5.7
6.2
1.0
1.0
10
1.0
1.2
21.8
24.1
26.0
27.5
1.7
3.0
2.0
3.3
2.3
4.1
2.5
5.4
32.7
35.7
39.6
44.1
30.3
3.5
.5
33.2
3.7
.5
36.8
4.1
.5
40.8
4.5
.6
1.6
1.7
1.8
1.9
2.0
Excess of receipts or of
expenditures (-)
State and local governments
Receipts
Personal tax and nontax receipts
Corporate profits tax
accruals
Indirect business tax
and nontax accruals
Contributions for social insurance
Federal grants-in-aid.
E xpenditures ..
Purchases of goods
and services
Transfer payments
Net interest paid
Less: Current surplus
of Government enterprises
Excess of receipts or of
expenditures (— )
-1.0
t -1.0
-2.0
23.2 -9.5 -9.4
CO
46.2 248.0
41.0
43.2
45.7
46.8
47.8
6.7
5.6
5.8
6.0
6.2
6.6
1.2
.9
1.1
1.3
1.2
1.2
29.6
31.3
27.0
28.0
29.2
30.0
31.0
31.5
2.6
6.6
2.8
6.1
2.4
5.1
2.5
5.8
2.6
6.6
2.6
6.6
2.7
6.2
2.
6.
47.4
50.9
43.0
45.3
47.4
47.6
49.9
51.9
43.9
4.7
.7
47.3 39.8
4.9 4.5
.8
.6
42.0
4.6
.6
43.9
4.8
.7
44.2
4.8
.7
46.3
4.9
.8
48.3
5.0
.8
1.9
1.9
2.0
2.0
2.1
2
2.1
1.9
-1.1 2-2.9 -2.0
1
-2.1 -1.6
6.8
-.9 -2.1
Preliminary estimates by Council of Economic Advisers.
2 Approximation for the year as a whole. See footnote 4, Table C-57.
»Not available.
< These accounts, like the cash budget, include the transactions of the trust accounts. Unlike both the
conventional budget and the cash statement, they exclude certain capital and lending transactions. In
general, they do not use the cash basis for transactions with business. Instead, corporate profits taxes are
included in receipts on an accrual instead of a cash basis; expenditures are timed with the delivery instead
of the payment for goods and services; and CCC guaranteed price-support crop loans financed by banks are
counted as expenditures when the loans are made, not when CCC redeems them.
NOTE.—Federal grants-in-aid to State and local governments are reflected in Federal expenditures and
State and local receipts and expenditures. Total government receipts and expenditures have been adjusted
to eliminate this duplication.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
189
TABLE C—55.—Reconciliation of Federal Government receipts and expenditures in the conventional
budget and the consolidated cash statement with receipts and expenditures in the national income
accounts, fiscal years 1958-60
[Billions of dollars]
]7iscal yean5
Receipts or expenditures
1958
1959
1960
RECEIPTS
Budget receipts
Less*
Intragovernmental transactions
Receipts from exercise of monetary authority
Plus: Trust fund receipts
_
.
_
Equals: Federal receipts from the public (consolidated cash receipts)
Less:
Adjustment for agency coverage:
District of Columbia revenues
...
Plus: Adjustments for netting and consolidation:
Federal Government contributions to:
Employee retirement funds .
_ _ __
Veterans' life insurance funds
.
Federal Government employee contributions to employee
retirement funds
Interest, dividends, and other earnings
Adjustments for timing:
Excess of taxes included in national income accounts over
cash collections:
Personal
_ __ _ _ _ _ _ _ _
Corporate profits
Other
Miscellaneous
Less: Adjustments for capital transactions:
Realization upon loans and investments
Proceeds from sale of Government propertyRecoveries and refunds
__
_
Equals: Receipts — national income accounts.
68.6
29
67.9
33
16 3
81.9
17 1
81.7
.2
2
.7
.0
o
o
7
— 9
.8
—.8
g
14
.2
-2.8
— 2
— 4
.2
3.7
— 3
.5
__ 3
3
.3
.5
77.9
.6
.3
.4
85.3
4
4
1
93 5
71.4
29
5
16.1
-.6
83.4
80.3
33
2.1
18.6
1.3
94.8
76 5
41
4
21 8
5
94.3
.2
.3
.3
.7
.0
.8
.0
g
.0
7
—.7
.8
— .6
g
—.9
1
o
g
o
77 8
41
\
21 4
95 1
2
g
o
o
EXPENDITURES
Budget expenditures
.
_ _
Less'
IntraejovemTnental transactions
Accrued interest and other noncash expenditures (net)
Plus: Trust fund expenditures _
_.
Government-sponsored enterprise expenditures (net)
__ _
Equals: Federal payments to the public (consolidated cash expenditures).
Less:
Adjustment for agency coverage:
District of Columbia expenditures
_
Plus: Adjustments for netting and consolidation:
Federal Government contributions to:
Employee rp-tireTH6int funds
Veterans' life insurance funds
Federal Government employee contributions to employee
retirement funds
Interest received and proceeds of Government sales
Adjustments for timing:
Accrued interest on savings bonds and Treasury bills
Commodity Credit Corporation guaranteed non-recourse
loans (net change)
Increase in clearing account.. _
. _
Miscellaneous
Less:
Adjustments for capital transactions:
Loans and other adjustments:
Federal National Mortgage Association secondary market operations
Other
Purchase of land and existing assets.
....
Trusts and deposit fund expenditures
Redemption of International Monetary Fund notes
Equals: Expenditures —national income accounts
.3
.9
.6
.1
.6
-.3
-.2
-.1
-.4
—.1
-.4
-.9
.1
1.1
.1
.0
.4
82.8
.1
5.1
.0
1.6
-1.4
90.1
1.0
.7
.1
1.1
-.3
91.3
NOTE.—See also Table C-51.
Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department, Bureau of the Budget, and Department of Commerce.
190
CORPORATE PROFITS AND FINANCE
TABLE C-57.—Profits before and after taxes, all private corporations, 7929-W
[Billions of dollars]
Corporate profits (before taxes) and
inventory valuation adjustment
Manufacturing
Period
All
Industries
Durable
Total goods
industries
Nondurable
goods
industries
- - 10.1
5.1
2.6
2.5
6.6
1.6
-2.0
-2.0
1.1
3.9
1.3
-.6
-.5
.9
1.5
(')
-1.1
-.5
.2
2.4
1.3
.4
(2)
2.9
5.0
6.2
4.3
5.7
2.0
3.1
3.6
2.2
3.2
.9
1.7
1.7
.7
1.6
1.1
1.4
2.0
1.4
1.5
1940
1941
1942
1943
1944
9.1
14.5
19.7
23.8
23.0
5.4
9.3
11.7
13.7
13.0
3.0
6.3
7.1
8.0
7.3
1945
1946
1947
1948
1949
18.4
17.3
23.6
30.8
28.2
9.5
8.4
12.8
16.8
15.3
35.7
41.0
37.7
37.3
-- 33.7
1929
1930
1931
1932
1933
1934 .
1935
1936
1937
1938
1939
.
1950
1951
1952...^
1953
1954
.
1955
1956
1957
1958
1959
_
1960
.
84
Transportation,
communication,
and
public
utilities
Corporate profits
after taxes
Corpo- Corporate
rate
tax
All profits
Diviliabilbefore
other
dend Undisindus- taxes ity i Total pay- tributed
tries
ments profits
1.4
3.0
9.6
1.2
1.5
.6 -.2
.2 -1.5
.1 -1.5
.4 ^-.2
3.3
-.8
-3.0
.2
1.7
.5
.7
.8
.6
1.0
.5
1.2
1.8
1.5
1.5
3.1
5.7
6.2
3.3
6.4
1.0
1.4
1.5
1.0
1.4
2.3
3.0
4.5
5.6
5.7
1.3
2.0
3.5
4.4
3.9
2.4
3.2
4.5
5.7
6.1
9.3
17.0
20.9
24.6
23.3
4.5
2.1
5.3
7.4
7.9
5.0
6.3
7.4
9.4
7.4
2.8
1.8
2.1
2.9
2.9
6.1
7.1
8.7
11.2
10.1
20.4
24.4
21.1
21.4
18.4
12.0
13.5
11.8
12.1
10.1
8.4
10.9
9.3
9.3
8.3
4.0
4.5
4.8
4.9
4.4
43.1
42.0
41.7
37.4
46.6
25.0
23.5
22.9
18.8
24.8
14.2
12.6
13.1
9.2
12.8
10.8
10.9
9.8
9.6
12.0
45.0
23.7
11.9
11.8
8.3
5.8
2.4
.8
2.5
.5 -1.3
.4 -3.4
.5 -.4
.7
1.0
5.5
4.1
2.6
2.1
2.6
-3.0
-5.4
-6.0
-2.4
-1.6
2.2
4.3
4.7
2.3
5.0
2.9
4.5
4.7
3.2
3.8
(2)
2.8
7.6
11.4
14.1
12.9
6.5
9.4
9.5
10.5
10.4
4.0
4.5
4.3
4.5
4.7
2.4
4.9
5.2
6.0
5.7
19.0
22.6
29.5
33.0
26.4
10.7
9.1
11.3
12.5
10.4
8.3
13.4
18.2
20.5
16.0
4.7
5.8
6.5
7.2
7.5
3.6
7.7
11.7
13.3
8.5
11.3
12.0
11.8
11.0
11.0
40.6
42.2
36.7
38.3
34.1
17.9
22.4
19.5
20.2
17.2
22.8
19.7
17.2
18.1
16.8
9.2
9.0
9.0
9.2
9.8
13.6
10.7
8.3
8.9
7.0
5.4
5.6
5.5
5.4
6.3
12.8
12.9
13.3
13.2
15.5
44.9
44.7
43.2
37.7
47.0
21.8
21.2
20.9
18.6
23.2
23.0
23.5
22.3
19.1
23.8
11.2
12.1
12.6
12.4
13.4
11.8
11.3
9.7
6.7
10.5
6.4
14.9
45.0
22.0
23.0
14.0
9.0
16.6
17.4
19.6
22.7
23.5
26.2
22.9
22.7
25.0
23.4
21.3
(5)
12.7
12.6
12.6
12.0
13.0
13.2
13.6
13.8
13.9
13.9
14.0
14.1
3.9
4.8
7.0
10.8
10.5
12.9
9.3
8.9
11.0
9.5
7.3
(5)
2.0
-.7
-.2
-.9
1.2
Seasonally adjusted annual rates
1958: First quarter
Second quarter.
Third quarter. ._
Fourth quarter_
1959: First quarter... .
Second quarter..
Third quarter...
Fourth quarter_
1960: First quarter... .
Second quarter
Third quarter ..
Fourth quarter a.
32.6
34.7
38.5
44.0
45.5
50.4
44.9
45.5
48.0
45.3
42.2
(5)
16.1
16.5
19.6
22.9
24.3
28.1
23.8
23.2
26.2
23.5
21.6
(')
7.7
7.8
9.2
11.9
12.6
15.8
11.5
11.3
13.6
11.6
10.5
(5)
8.4
8.7
10.4
10.9
11.7
12.3
12.2
12.0
12.6
11.9
11.1
(«)
4.9
5.2
5.6
6.1
6.2
6.5
6.1
6.3
6.5
6.4
6.4
(s)
11.6
13.0
13.3
15.0
15.0
15.8
15.0
16.0
15.3
15.5
14.2
(5)
32.8
34.4
38.8
44.9
46.4
51.7
45.3
44.8
48.8
45.7
41.5
(5)
16.2
17.0
19.1
22.1
22.9
25.5
22.3
22.1
23.8
22.3
20.3
(8)
1 Federal and State corporate income and excess profits taxes.
2 Less than $50 million.
3 Preliminary estimates by Council of Economic Advisers.
* Data for corporate profits are approximations for the year as a whole; they do not derive from, nor imply,
specific estimates for the quarters. All other data incorporating or derived from these figures are correspondingly approximate.
«Not available.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
192
TABLE C-56.—State and local government revenues and expenditures, selected fiscal years ^ 1927-59
[Millions of dollars]
Revenues by source 2
Fiscal year 1
Expenditures by function
ReveSales
nue
Corpo- from
and
All
IndiPropFed- other
vidual ration
Total erty gross
net
reeral
reveincome
taxes ceipts taxes income Gov- nue 3
taxes erntaxes
ment
EduTotal cation
2
High- Public
All
wel- other
ways
*
fare
1927
7,271
4,730
470
70
92
116
1,793
7,210
2,235
1,809
151
3,015
1932
1934
1936
1938
7,267
7,678
8,395
9,228
4,487
4,076
4,093
4,440
752
1,008
1,484
1,794
74
80
153
218
79
49
113
165
232
1,016
948
800
1,643
1,449
1,604
1,811
7,765
7,181
7,644
8,757
2,311
1,831
2,177
2,491
1,741
1,509
1,425
1,650
444
889
827
1,069
3,269
2,952
3,215
3,547
1940
1942
1944
1946
1948
9,609
10, 418
10, 908
12, 356
17, 250
4,430
4,537
4,604
4,986
6,126
1,982
2,351
2,289
2,986
4,442
224
276
342
422
543
156
272
451
447
592
945
858
954
855
1,861
1,872 9,229
2,123 9,190
2,269 8,863
2,661 11,028
3,685 17, 684
2,638
2,586
2,793
3,356
5,379
1,573
1,490
1,200
1,672
3, 036
1,156
1,225
1,133
1,409
2,099
3,862
3,889
3,737
4,591
7,170
1950
1952
1953
1954
20, 911
25, 181
27, 307
29, 012
7,349
8,652
9,375
9,967
5,154
6,357
6,927
7,276
788
998
1,065
1,127
593
846
817
778
2,486
2,566
2,870
2,966
4,541
5, 763
6,252
6,897
22, 787 7,177
26, 098 8,318
27, 910 9,390
30, 701 10, 557
3,803
4,650
4,987
5,527
2,940 8,867
2,788 10,340
2,914 10, 619
3,060 11, 557
1955
1956
1957
1958 s
1959
31, 073
34, 667
38, 164
41, 219
45, 306
10, 735 7,643
11, 749 8,691
12,864 9,467
14, 047 9,829
14, 983 10, 437
1,237
1,538
1,754
1,759
1,994
744
890
984
1,018
1,001
11,907
13, 220
14, 134
15, 919
17, 283
6,452
6,953
7,816
8,567
9,592
3,168
3,139
3,404
3,729
4,019
1
2
3,131 7,584
3,335 8,465
3,843 9,250
4,865 9,699
6,377 10, 516
33, 724
36, 711
40, 375
44, 851
48, 887
12, 197
13, 399
15, 020
16, 635
17, 994
Fiscal years not the same for all governments.
Excludes revenues or expenditures of publicly owned utilities and liquor stores, and of insurance-trust
activities. Intergovernmental receipts and payments between governments in these categories are also
excluded.
3
Includes licenses and other taxes and charges and miscellaneous revenues.
* Includes expenditures for health, hospitals, police, local fire protection, natural resources, sanitation,
housing and community redevelopment, local recreation, general control, interest on general debt, and
other
and unallocable expenditures.
8
Includes data for Alaska.
NOTE.—Data are not available for intervening years.
See Table C-47 for net debt of State and local governments.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (Bureau of the Census1).
TABLE C-58.—Relation of profits before and after taxes to stockholders' equity and to sales,
private manufacturing corporations, by asset size class, 1957-60
Asset size class (millions of dollars)
Period
All asset
sizes
Under 1
10 to 100
ItolO
100 to 1,000
1,000 and
over
Ratio of profits (annual rate) to stockholders' equity— percent
Before After Before After Before After Before After Before After Before After
taxes taxes taxes taxes taxes taxes taxes taxes taxes taxes taxes taxes
BASED ON 1945 SIC 1
1957:
22.5
First quarter
Second quarter- _ _ 21.6
19.1
Third quarter
Fourth quarter. _ _ 16.8
1958:
First quarter
12.9
Second quarter- __ 13.9
Third quarter
15.9
Fourth quarter- _ _ 18.8
BASED ON 1957 SIC *
1958:
First quarter
12.9
Second quarter- _ _ 13.9
Third quarter
15.9
Fourth quarter- _ _ 18.8
1959:
First quarter
18.7
Second quarter ___ 23.1
17.1
Third quarter
Fourth quarter. __ 16.8
1960:
18.4
First quarter
Second quarter. __ 18.0
15.4
Third quarter
11.9
11.6
10.5
9.8
15.6
19.3
19.6
6.7
7.8
10.4
10.4
1.9
18.6
20.2
19.1
13.0
8.7
9.8
9.3
6.0
21.4
21.4
20.1
17.0
10.5
10.7
10.0
8.9
22.2
21.4
19.7
18.2
11.6
11.2
10.2
10.2
27.3
23.1
17.7
19.3
16.0
14.0
11.8
13.7
6.8
7.8
9.0
10.8
5.5
11.4
16.4
7.8
.4
5.4
9.3
2.5
9.8
13.3
17.1
14.9
3.5
6.1
8.3
7.3
13.1
14.4
16.9
18.5
6.4
7.2
8.5
9.7
14.2
15.7
17.9
20.3
7.4
8.4
9.4
11.3
14.3
12.3
12.3
21.4
9.5
8.8
9.1
14.2
6.8
7.8
9.0
10.7
5.5
11.4
16.5
7.8
.4
5.4
9.3
2.5
9.8
13.3
17.1
14.9
3.5
6.0
8.3
7.3
13.0
14.4
16.9
18.5
6.3
7.2
8.5
9.7
14.2
15.7
17.8
20.2
7.4
8.3
9.4
11.2
14.3
12.3
12.3
21.4
9.5
8.8
9.1
14.2
10.0
12.4
9.6
9.6
12.5
20.4
21.1
8.8
5.7
11.7
12.4
3.3
15.1
20.2
19.8
14.6
6.9
10.1
9.9
7.0
17- 5
22.4
20.7
19.0
8.7
11.4
10.5
10.0
19.2
23.8
17.6
18.4
10.1
12.5
9.4
10.4
21.7
24.5
12.1
15.9
12.9
14.3
8.6
10.7
9.8
9.9
8.7
11.7
15.2
16.7
5.0
8.0
9.0
14.1
16.4
14.6
6.3
7.6
6.9
17.1
17.9
16.3
8.4
9.0
8.2
18.5
18.3
16.9
9.8
10.1
9.1
21.9
19.0
13.3
13.0
11.5
9.1
Profits per dollar of sales— cents
Before After Before After Before After Before After Before After Before After
taxes taxes taxes taxes taxes taxes taxes taxes taxes taxes taxes taxes
BASED ON 1945 SIC 1
1957:
First quarter
Second quarter
Third quarter
Fourth quarter. . .
1958:
First quarter
Second quarter
Third quarter
Fourth quarter. _ _
BASED ON 1957 SIC 1
1958:
First quarter
Second quarter
Third quarter
Fourth quarter. . .
1959:
First quarter
Second quarter
Third quarter
Fourth quarter...
1960:
First quarter
Second quarter. _.
Third quarter
9.7
9.4
8.5
7.6
5.1
5.0
4.7
4.4
3.5
4.2
4.2
1.5
1.8
2.2
2.2
.4
6.6
6.9
6.6
4.5
3.1
3.3
3.2
2.1
9.3
9.3
8.9
7.7
4.6
4.6
4.4
4.0
10.4
10.0
9.4
8.8
5.4
5.2
4.9
4.9
15.4
14.3
11.9
12.6
9.0
8.6
7.9
9.0
6.4
6.8
7.7
8.6
3.4
3.8
4.4
4.9
1.3
2.5
3.6
1.6
.1
1.2
2.1
.5
3.8
5.0
6.1
5.3
1.4
2.3
2.9
2.6
6.5
7.0
8.1
8.5
3.2
3.5
4.0
4.5
7.5
8.0
8.9
9.8
3.9
4.3
4.7
5.4
10.6
9.7
10.4
14.9
7.0
6.9
7.7
9.9
6.4
6.8
7.7
8.6
3.4
3.8
4.4
4.9
1.3
2.5
3.6
1.6
.1
1.2
2.1
.5
3.8
5.0
6.1
5.3
1.4
2.3
2.9
2.6
6.5
7.0
8.1
8.5
3.1
3.5
4.0
4.5
7.5
8.0
8.9
9.7
3.9
4.2
4.7
5.4
10.6
9.7
10.4
14.9
7.0
6.9
7.7
9.9
8.9
10.2
8.2
7.9
4.7
5.5
4.6
4.5
2.8
4.2
4.3
1.8
1.3
2.4
2.6
.7
5.4
6.6
6.7
4.9
2.5
3.3
3.4
2.4
8.4
9.9
9.5
8.7
4.2
5.0
4.8
4.5
9.6
10.9
8.8
9.1
5.0
5.7
4.7
5.1
15.2
16.4
10.2
12.2
9.0
9.6
7.3
8.2
8.7
8.4
7.6
4.7
4.6
4.3
2.6
3.2
3.5
1.1
1.6
1.9
5.0
5.6
5.1
2.2
2.6
2.4
8.1
8.2
7.7
4.0
4.1
3.9
9.3
9.0
8.7
4.9
5.0
4.7
14.5
13.2
10.6
8.6
8.0
7.3
i Standard Industrial Classification.
NOTE.—Data on a comparable basis are not available for earlier periods. For details concerning compilation of the series, see Quarterly Financial Reports for U.S. Manufacturing Corporations, Federal Trade
Commission and Securities and Exchange Commission.
Data for Alaska and Hawaii included for all periods.
Sources: Federal Trade Commission and Securities and Exchange Commission.
193
TABLE C-59.—Relation of prof ts after taxes to stockholders' equity and to sales, private manufacturing corporations, by industry group, 7957-60
Durable goods industries
Period
All
private
manufacturing
corporations
Lumber
and Furwood niture
prod- and
ucts fix(except tures
furniture)
PriStone, mary
clay, iron
and and
glass steel
prod- inucts dustries
P ri
n-
mary
nonferrous
metal
industries
MaFab- chinricated ery
(exmetal cept
prod- elecucts trical)
MisEleccellatrical MoIn- neous
ma- tor Other stru- manchin- vehitrans- ments ufacery, cles porta- and turequip- and tion re- ing
ment, equip- equip- lated (inand
ment prod- cludsup- ment
ucts ing
plies
ordnance)
Ratio of profits after Federal taxes (annual rate) to stockholders' equity — percent
BASED ON 1945 SIC '
1957:
First quarter
Second quarter. .
Third quarter. ..
Fourth quarter ..
11.9
11.6
10.5
9.8
2.0
6.2
6.5
4.1
7.3
9.2
9.7
7.8
10.0
13.7
13.8
11.9
13.8
13.0
9.9
8.9
12.4
9.7
8.1
7.1
9.5
10.9
11.0
5.8
12.3
13.0
10.1
7.5
13.9
12.9
11.5
11.9
18.8
15.3
9.2
13.6
14.8
16.4
13.9
13.8
10.6
12.4
11.6
13.2
6.9
7.5
10.4
5.8
1958:
First quarter
6.8
Second quarter .. 7.8
Third quarter. .. 9.0
Fourth quarter.. 10.8
.2
3.1
11.0
8.4
2.0
3.4
8.7
11.1
4.0
11.1
14.9
11.9
5.3
6.5
6.5
10.4
5.7
4.6
5.6
8.0
4.9
7.3
8.8
7.6
5.7
7.7
7.2
7.7
8.5
9.2
10.3
13.2
8.3
5.9
1.6
17.0
11.0
9.9
10.1
10.3
6.9
9.3
12.1
13.1
14.7
BASED ON 1957 SIC '
1958:
6.8
First quarter
Second quarter.. 7.8
Third quarter. __ 9.0
Fourth quarter. . 10.7
.2
3.1
11.0
8.4
2.0
3.4
8.6
11.0
3.4
11.0
14.7
11.4
5.3
6.5
6.5
10.4
5.7
4.6
5.6
7.9
5.0
7.3
8.8
7.9
5.6
7.7
7.1
7.0
8.3
9.1
9.9
13.4
8.3
5.9
1.5
16.9
11.6
10.3
10.3
10.6
7.0
9.6
12.2
13.6
1959:
10.0
First quarter
Second quarter.. 12.4
Third quarter.... 9.6
Fourth quarter.. 9.6
6.1
11.3
12.9
7.0
6.2
9.1
11.7
8.3
8.0 11.7
17.4 16.7
15.7 -2.7
9.8 6.3
8.2
10.3
6.7
6.7
5.9
9.7
10.9
5.6
7.1
12.5
10.7
8.5
10.7
12.7
12.1
14.3
19.1
20.5
8.0
10.8
7.8
9.6
6.6
6.7
10.8
12.0
14.5
14.8
12.4
10.2
3.3
6.2
4.6
5.5
5.8
8.2
12.1
8.0
4.0
8.0
8.2
6.8
5.3
6.9
7.2
8.2
9.7
6.9
10.4
10.0
9.1
18.5
16.1
6.1
6.7
7.8
5.3
11.6
12.1
11.9
11.3
1960:
First quarter
Second quarter..
Third quarter...
9.8
9.9
8.7
6.7
13.1
11.9
1.6
6.9
7.8
3.6
5.7
13.7
9.2
7.2
7.1
4.8
7.6
Profits after taxes per dollar of sales— cents
BASED ON 1945 SIC 1
1957:
First quarter
Second quarter _.
Third quarter. ..
Fourth quarter..
5.1
5.0
4.7
4.4
1.0
2.9
3.1
2.1
2.3
2.8
3.1
2.4
6.6
8.1
7.8
7.4
7.1
7.0
6.1
5.8
8.1
6.6
6.0
5.5
3.7
4.1
4.2
2.3
5.3
5.5
4.7
3.7
4.5
4.3
4.0
4.0
6.3
5.7
4.0
5.4
3.2
3.3
3.1
2.9
5.3
5.8
5.7
6.0
2.4
2.4
3.2
1.9
1958:
First quarter
Second quarter. .
Third quarter. ..
Fourth quarter..
3.4
3.8
4.4
4.9
.1
1.6
5.0
3.8
.7
1.2
2.8
3.3
3.1
7.3
8.9
7.6
4.2
5.0
5.0
7.2
4.8
3.9
4.4
5.8
2.2
3.1
3.5
3.0
3.1
3.9
3.9
4.1
3.2
3.5
3.9
4.5
3.7
2.9
1.0
6.8
2.6
2.3
2.5
2.5
3.7
4.8
6.2
6.0
.6
2.3
4.7
2.6
BASED ON 1957 SIC '
1958:
First quarter
Second quarter ..
Third quarter. . .
Fourth quarter ._
3.4
3.8
4.4
4.9
.1
1.6
5.0
3.8
.7
1.2
2.8
3.2
2.7
7.2
8.8
7.3
4.2
4.9
5.0
7.1
4.7
3.8
4.4
5.8
2.3
3.2
3. 6
3.2
3.0
3.9
3.9
3.7
3.2
3.5
3.9
4.7
3.7
2.9
1.0
6.8
2.7
2.3
2.4
2.5
3.8
5.0
6.3
6.3
1.5
2.2
4.8
3.3
1959:
First quarter
Second quarter. .
Third quarter.,.
Fourth quarter..
4.7
5.5
4.6
4.5
3.0
4.7
5.4
3.2
2.0
2.8
3.4
2.4
5.7 7.1
9.8 8.1
9.1 —3.1
6.4 4.8
6.0
7.0
5.1
5.0
2.6
3.8
4.1
2.3
3.8
5.8
5.3
4.3
4.0
4.5
4.4
4.8
7.4
7.8
4.2
5.0
2.0
2.2
1.5
1.5
5.7
6.0
7.3
6.8
2.9
2.6
4.6
3.7
1960:
First quarter
Second quarter..
Third quarter...
4.7
4.6
4.3
1.7
2.7
2.1
1.9
1.9
2.6
5.0
8.2
7.4
7.0
5.3
3.2
5.9
6.0
5.2
2.4
2.9
3.0
4.2
4.6
3.7
3.9
3.6
3.5
6.9
6.6
3.5
1.6
1.8
1.3
6.0
6.2
6.2
2.0
3.0
4.1
See footnotes at end of table, p. 195.
194
TABLE G-59.—Relation of profits after taxes to stockholders' equity and to sales, private manufacturing corporations, by industry group, 1957-60-—Continued
Nondurable goods industries
Period
Food
and
kindred
products
To- Texbacco tile
man- mill
ufac- prodtures ucts
ProdPrintucts of
ing
petroand
Apleum
pub- Chempar el Paper
Petro- and Rub- Leather
lish- icals
and
and
and allied
and
leum
ber
ing allied refin- coal
related prod- (ex(exprod- leather
prod- ucts cept prod- ing
cept ucts products
ucts
petronews- ucts
leum
parefinpers)
ing)
Ratio of profits after Federal taxes (annual rate} to stockholders' equity— percent
BASED ON 1945 SIC *
1957:
First Quarter
Second quarter
Third quarter
Fourth quarter
7.4
8.4
10.4
8.3
10.3
11.9
13.9
13.8
4.4
4.4
4.8
3.4
6.7
5.9
9.7
3.0
10.2
9.0
8.7
7.8
12.3
14.8
11.9
8.0
13.7
13.9
13.1
12.3
14.4
11.8
11.1
12.5
4.3
8.2
10.8
7.6
11.5
11.6
10.9
10.6
6.6
6.5
6.9
8.0
6.9
8.6
9.9
9.7
11.8
13.3
14.5
14.3
.9
2.7
5.2
6.0
3.4
1.3
9.5
5.5
6.8
7.6
7.4
8.7
8.3
9.3
11.5
6.5
9.9
11.3
12.0
13.0
8.9
8.2
10.4
12.3
-.8
6.2
9.8
7.1
6.7
8.1
11.3
12.1
4.1
3.2
8.4
7.0
6.8
8.5
9.8
9.7
11.8
13.3
14.5
14.3
.6
2.5
5.1
5.8
3.3
1.5
9.4
5.5
7.0
7.9
7.9
9.3
8.4
9.4
11.5
6.6
9.8
11.0
11.8
12.8
8.9
8.2
10.4
12.3
-2.4
8.3
12.4
6.2
5.3
8.7
11.5
10.8
4.1
3.2
8.3
6.9
1959:
First quarter
Second quarter
Third quarter
Fourth quarter
7.8
9.5
10.4
9.4
12.0
14.2
14.4
12.8
5.9
8.1
7.6
8.6
8.6
7.5
10.1
8.1
8.5
10.2
9.6
9.6
9.8
12.0
14.9
8.8
13.0
15.6
14.1
11.9
10.1
9.4
9.7
10.1
4.0
13.6
19.3
7.2
10.0
13.1
11.1
9.9
6.9
8.9
8.7
9.2
1960:
First quarter
Second quarter
Third quarter
7.6
8.8
9.8
12.0
13.6
13.7
6.6
6.1
5.7
5.2
6.9
11.9
8.5
9.3
8.2
11.3
10.2
11.8
12.5
13.6
12.1
9.8
8.8
10.3
.9
8.3
22.1
9.8
10.5
8.2
10.4
6.2
3.6
1958:
First quarter
Second quarter
Third quarter
Fourth quarter
BASED ON 1957 SIC '
1958:
First quarter
Second quarter
Third quarter
Fourth quarter
Profits after taxes per dollar of sales— cents
BASED ON 1945 SIC 1
1957:
First quarter
Second quarter
Third quarter
Fourth quarter —
2.0
2.2
2.6
2.3
4.7
4.9
5.5
5.4
2.0
2.0
2.2
1.5
1.4
1.2
1.8
.6
5.7
4.9
4.9
4.5
4.0
4.8
3.8
2.5
7.8
7.9
7.6
7.3
11.0
10.2
9.8
11.3
2.1
3.6
4.4
3.4
4.4
4.3
4.0
4.1
1.8
1.9
2.0
2.4
1958:
First quarter
Second quarter
Third quarter
Fourth quarter
BASED ON 1957 SIC 1
1958:
First quarter
Second quarter
Third quarter
Fourth quarter
1.8
2.2
2.5
2.4
5.1
5.2
5.5
5.6
.4
1.3
2.4
2.5
.7
.3
1.7
1.0
4.1
4.5
4.3
5.0
2.8
3.3
4.0
2.2
6.4
6.7
7.0
7.5
8.2
8.2
9.9
11.3
-.5
2.9
3.9
3.6
3.0
3.4
4.5
4.5
1.3
1.0
2.4
1.9
1.8
2.2
2.5
2.4
5.1
5.2
5.5
5.6
.3
1.2
2.3
2.4
.7
.3
1.7
1.0
4.3
4.8
4.6
5.3
2.9
3.4
4.1
2.3
6.4
6.7
7.1
7.6
8.2
8.2
9.9
11.3
-1.5
3.5
4.2
2.9
2.2
3.3
4.4
3.9
1.3
1.0
2.4
1.9
1959:
First quarter
Second quarter
Third quarter
Fourth quarter
2.1
2.5
2.7
2.5
5.2
5.5
5.6
5.2
2.5
3.2
3.0
3.3
1.6
1.4
1.8
1.4
5.0
5.5
5.2
5.2
3.6
4.2
5.1
2.9
7.7
8.5
8.1
7.2
9.3
9.4
9.5
9.9
1.9
5.7
7.1
3.3
3.9
4.4
4.1
3.7
1.9
2.4
2.2
2.4
1960:
2.8
7.6
.5
3.8
2.7
2.1
4.0
9.4
5.2
1.0
4.9
First quarter
7.8
3.2
3.9
1.6
2.5
3.6
8.9
1.3
5.4
Second quarter
2.4
5.4
2.5
3.9
7.4 10.2
6.4
.9
4.8
3.3
2.6
2.0
Third quarter
5.5
i Standard Industrial Classification.
NOTE .—Data on a comparable basis are not available for earlier periods. For explanatory notes concerning
compilation of the series, see Quarterly Financial Reports for U.S. Manufacturing Corporations, Federal
Trade Commission and Securities and Exchange Commission.
Data for Alaska and Hawaii included for all periods.
Sources: Federal Trade Commission and Securities and Exchange Commission.
195
TABLE C-60.—Sources and uses of corporate funds, 1949-60l
[Billions of dollars]
Source or use of funds
Total uses
1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 19602
16 8 36 S 36 8 ?,7 3 28 2 24.0 45 1 39, 5 37 8 31 8 45.3
Plant and equipment outlays
16.3
Inventories (book value) 3
-3.6
9
Customer net receivables
Cash and U.S. Government securities. .
3.2
(4)
Other assets
Total sources
Internal sources
Retained profits and depletion allowances
Depreciation and amortization allowances
External sources
16.9 21.6 22.4 23.9 22.4 24.2 29.9 32.7 26.4 27.7
9.8 9.8 1.3 1.8 -1.6 6.7 7.6 2.1 -3.3 5.3
7 24 64 33 21 4 3 4 3
50 20 31
4.5
3
2.8
6
.1
4
1.8
(4)
(4)
8
3.8 -3.5
4 2
50
IS 8 35 4 36 9 28 1 30 0 22,4 44 8 42,4 40,1 32,2 46 8
41.0
14.9 20.8 19.0 17.8 19.7 19.8 26.6 27.8 28.0 26.3 30.6
29.5
7.8 13.0 10.0
71
78
7.4
7.9
6.3 10.9 10.5
9 14 6 17 9 10 3 10 3
1.0
8.9
6.1
9.1 8 6.5
9 0 10.4 11.8 13.5 15.7 17.3 19.1 20.2 21 5
2 6 18 2 14 6 12 2
Federal income tax liability- -2.2 7.3 4.3 -3.1 .6 -3.1
5 10 19 2 4 2 2
4
Other liabilities
Bank loans and mortgage
.4 -.6
loans
---2.3 2.6 5.4 3.1
Net new issues
4 9 3 7 6 3 7 9 7 1 5.9
Discrepancy (uses less sources)..
5.0 -4.3 -.3 3.5
9
28 30 13
40.0
31.0
2.0
55
1.1 -.1 -.8 -1.8
1
2
3
1.6
6.0 16 1
3.8 -1.7 -2.2 -2.4
2 1 3 0 2 1 — .1
5.4
69
5.4 1.7 -1.0
7.9 10 6 9 5
23.0
11 5
2.4 -1.5
19 15
3.8
80
3.5
80
.3 -2.9 -2.3 -.5 -1.5 -1.0
Excludes banks and insurance companies.
jPreliin nary estimates.
Receivables are net of payables, which are therefore not shown separately.
<6 Less than $50 million.
Preliminary estimate by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce based on Securities and Exchange Commission and other financial
data (except as noted).
196
TABLE G-61.—Current assets and liabilities of United States corporations, 1939-60l
[Billions of dollars]
Current liabilities
Current assets
End of period
2a
'fl-w
|1
jl
1
08
.w
CQ
1939
54.5 10.8
2.2
1940
1941
1942
1943 1944
60.3
72.9
83:6
93.8
97.2
£
x
&.
0)
1
P
"8
»!lS II
*5§ jjj!
s».
8t>
13.1
13.9
17.6
21.6
21.6
2.0
4.0
10.1
16.4
20.9
0.1
.6
4.0
5.0
4.7
1945
1946
97.4 21.7
108.1 22.8
21.1
15.3
2.7
.7
1947
1948
1949
123.6 25.0
133.0 25.3
133.1 26.5
14.1
14.8
16.8
Sia
^
If
jy
I •*<
a
&w
3*
0
22.1
18.0
1.4
30.0
23.9
27.4
23.3
21.9
21.8
19.8
25.6
27.3
27.6
26.8
1.5
1.4
1.3
1.3
1.4
32.8
40.7
47.3
51.6
51.7
26.3
37.6
2.4
1.7
45.8
51.9
44.6
48.9
45.3
1.6
1.6
1.4
61.5
64.4
60.7
23.2
30.0
'
•>.
3S .3
42 .4
42 .0
1
>
Net
working
capital
T3
O c3
£
0
21.9
1.2
6.9
24.5
22.6
25.6
24.0
24.1
25.0
2.5
7.1
12.6
16.6
15.5
7.1
7.2
8.7
8.7
9.4
27.5
32.3
36.3
42.1
45.6
24.8 10.4
31.5" 8.5
**.
37 .6
10.7
39 .3
11.5
37 .5
9.3
9.7
11.8
51.6
56.2
13.2
13.5
14.0
62.1
68.6
72.4
0.6
.8
2.0
2.2
1.8
*
i| li
j| 111
.9
.1
161.5
179.1
186.2
190.6
- 194.6
28.1
30.0
30.8
31.1
33.4
19.7
20.7
19.9
21.5
19.2
1.1
2.7
2.8
2.6
2.4
55.1
64.9
65.8
67.2
65.3
1.7
2.1
2.4
2.4
3.1
79.8
92.6
96.1
98.9
99.7
.4
1.3
2.3
2.2
2.4
47.9
53.6
57.0
57.3
59.3
16.7
21.3
18.1
18.7
15.5
14.9
16.5
18.7
20.7
22.5
81.8
86.5
90.1
91.8
94.9
1955
1956
1Q57
1958
1959
224.0
237. 9
244.7
246.4
268.3
34.6
34.8
34.9
37.3
37.2
23.5
19.1
18.6
19.6
23.5
2.3 86.6 72.8
2.6 95.1 80.4
2.8 99.4 82.2
2.8 102.1 77.5
2.9 112.7 83.6
4.2
5.9
6.7
7.0
8.3
121.0
130.5
133.1
126.7
139.5
2.3
2.4
2.3
1.7
1.7
73.8
81.5
84.3
81.0
89.4
19.3
17.6
15.4
13.0
15.4
25.7
29.0
31.1
31.0
32.9
103.0
107.4
111.6
119.7
128.8
1958:
First quarter
Second quarter...
Third quarter
Fourth quarter...
237.5
235.5
240.4
246.4
32.5
34.4
35.4
37.3
17.4
15.3
16.3
19.6
2.7 96.5 81.4
2.6 97.8 78.3
2.7 101.7 77.2
2.8 102.1 77.5
7.0
7.1
7.2
7.0
124.3
120.7
123.5
126.7
2.1
1.9
1.8
1.7
79.5
78.2
79.4
81.0
12.2
9.6
11.1
13.0
30.4
30.8
31.2
31.0
113.2
114.8
116.9
119.7
1959:
First quarter
Second quarterThird quarter
Fourth quarter...
249.8
257.6
262.1
268.3
34.5
35.8
35.5
37.2
21.0
21.5
22.9
23.5
2.8
2.7
2.7
2.9
103.8
107.7
110.6
112.7
7.8
8.3
8.4
8.3
127.6
132.4
135.2
139.5
1.7
1.7
1.7
1.7
81.5
84.3
85.8
89.4
12.6
13.5
14.4
15.4
31.9
32.9
33.3
32.9
122.2
125.3
126.9
128.8
1960:
270.2 33.8
First quarter
Second quarter — 271.5 34.5
273. 9 35.0
Third quarter
23.4
21.7
20.3
2.9 113.6 87.2
2.9 115.6 87.4
2.9 118.2 87.8
9.4 139.6
9.5 140.3
9.6 141.4
1.8
1.8
1.8
89.8
91.0
91.3
14.0
13.0
13.4
34.0
34.6
34.9
130.7
131.2
132.5
1950
1951
1952
1953
1954
-.
55.7
58.8
64.6
65.9
71.2
80.0
81.7
82.1
83.6
1
All United States corporations, excluding banks, savings and loan associations, and insurance companies.
Year-end data through 1957 are based on Statistics of Income (Treasury Department), covering virtually ali
corporations in the United States. Statistics of Income data may not be strictly comparable from year to
year because of changes in the tax laws, basis for filing returns, and processing of data for compilation purposes. All other figures shown are estimates based on data compile! from many different sources, including
data on corporations registered with the Securities and Exchange Commission. As more complete information becomes available, estimates are revised.
a Receivables from and payables to U.S. Qovernment do not include amounts offset against each other
on the corporation's books or amounts arising from subcontracting which are not directly due from or to
the U.S. Qovernment. Wherever possible, adjustments have been made to include U.S. Qovernment
advances offset against inventories on the corporation's books.
»Includes marketable securities other than U.S. Qovernment.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Securities and Exchange Commission.
197
TABLE C-62.—State and municipal and corporate securities offered, 1934-601
[Millions of dollars]
Corporate securities offered for cash 2
State
and
municiProposed uses of net proceeds 4
Gross proceeds '
pal securities
offered
New money
for cash
Retire- Other
(prinCom- Pre- Bonds
cipal
purTotal mon ferred and
Total
Plant Work- ment
of se- poses
and
amounts)
stock stock notes
ing
Total equipcapi- curities
tal
ment
Period
1934
939
397
19
6
371
384
57
32
26
231
95
1935
1936
1937
1938
1939
1,232
1,121
908
1,108
1,128
2,332
4,572
2,310
2,155
2,164
22
272
285
25
87
86
271
406
86
98
2,225
4,029
1,618
2,044
1,980
2,266
4,431
2,239
2,110
2,115
208
858
991
681
325
111
380
574
504
170
96
478
417
177
155
1,865
3,368
1,100
1,206
1,695
193
204
148
222
95
1940
1941
1942
1943
1944
1,238
956
524
435
661
2,677
2,667
1,062
1,170
3,202
108
110
34
56
163
183
167
112
124
369
2,386
2,390
917
990
2,669
2,615
2,623
1,043
1,147
3,142
569
868
474
308
657
424
661
287
141
252
145
207
187
167
405
1,854
1,583
396
739
2,389
192
172
173
100
96
795
1,157
2,324
2,690
2,907
6,011
6,900
6,577
7,078
6,052
397
758
891 1,127
779
762
614
492
736
425
4,855
4,882
5,036
5,973
4,890
5,902
6,757
6,466
6,959
5,959
1,080
3,279
4,591
5,929
4,606
638
2,115
3,409
4,221
3,724
442
1,164
,182
,708
882
4,555
2,868
1,352
307
401
267
610
524
722
952
1950
1951
1952
1953
1954
3,532
3,189
4,401
5,558
6,969
6,361
7,741
9,534
8,898
9,516
811
1,212
1,369
1,326
1,213
631
838
564
489
816
4,920
5,691
7,601
7,083
7,488
6,261
7,607
9,380
8,755
9,365
4,006
6,531
8,180
7,960
6,780
2,966
5,110
6,312
5,647
5,110
,041
,421
,868
2,313
1,670
1,271
486
664
260
1,875
984
589
537
535
709
1955
1956
1957
1958
1959
5,977
5,446
6,958
7,449
7,681
10,240
10,939
12,884
11,558
9,748
2,185
2,301
2,516
1,334
2,027
635
636
411
571
531
7,420
8,002
9,957
9,653
7,190
10,049 7,957
10,749 9,663
12,661 11,784
11,372 9,907
9,527 8,578
5,333
6,709
9,040
7,792
6,084
2,624
2,954
2,744
2,115
2,494
1,227
364
214
549
135
864
721
663
915
814
I960*
7,212 10,248 1,675
388
8,184 10,015
9,014
5,804
3,210
262
739
1958:
First quarter...
Second quarter.
Third quarter ..
Fourth quarter.
2,206
2,228
1,668
1,347
3,318
2,898
2,910
2,432
289
216
345
484
182
154
104
131
2,846
2,528
2,461
1,818
3,273
2,848
2,862
2,389
3,066
2,281
2,535
2,025
2,566
1,933
1,900
1,393
501
347
635
633
134
225
101
89
73
342
225
275
1959:
First quarter...
Second quarter.
Third quarter _.
Fourth quarter.
2,157
2,504
1,500
1,520
2,282
2,665
2,062
2,739
518
639
333
537
142
173
63
154
1,622
1,854
1,666
2,048
2,232
2,603
2,016
2,675
1,899
2,414
1,817
2,448
1,367
1,712
1,096
1,909
531
702
721
539
28
36
37
33
306
153
162
195
1960:
First quarter...
Second quarter.
Third quarter ..
Fourth quarter 5.
1,885
2,252
1,764
1,311
2,283
2,521
2,518
2,926
429
578
330
338
100
95
112
81
1,753
1,848
2,076
2,507
2,233
2,451
2,467
2,863
2,020
2,184
2,262
2,548
1,184
1,424
1,499
1,696
835
760
763
852
82
84
41
55
132
183
164
260
1945
1946
1947
1948
1949
. ..
1 These data cover substantially all new issues of State, municipal, and corporate securities offered for
cash
sale in the United States in amounts over $100,000 and with terms to maturity of more than 1 year.
2
Excludes notes issued exclusively to commercial banks, intercorporate transactions, sales of investment company issues, and issues to be sold over an extended period, such as offerings under employeepurchase
plans.
3
Number of units multiplied by offering price.
4
Net proceeds represents the amount received by the issuer after payment of compensation to distributors
and
other costs of flotation.
8
Preliminary.
NOTE.—Data for Alaska and Hawaii included for all periods.
Detail will not necessarily add to totals because of rounding.
Sources: Securities and Exchange Commission, The Commercial and Financial Chronicle, and The Bond
Buyer.
TABLE C-63.—Common stock prices and earnings and stock market credit, 7939—60
Common
stock
Common
price/
stock
prices
earnings
index,
ratio1957-59=100 industrials
(Standard
(SEC) i
& Poor's) 2
Period
Stock market credit
Customer credit (excluding U.S.
Government securities)
Total
Net debit
balances 3
Bank loans
to brokers
and 6
Bank loans dealers
to 4
"others"
Millions of dollars
1939
1940
1941
1942—
1943
1944
1945
1946
1947-1948
1949
1950
1951 .
1952
1953
1954
1955
1956
1957
1958
1959
I960
-_
_.
_-,
_ .
1959: January ..
February
March
April
May
June
July
August
September
October
November
December
1960: January . __
February
March
April
May
June
July
August
September
_ _.
October
November
December
-_
26.8
25.3
23.0
20.1
26.6
29.0
35.2
40.1
35.1
35.6
34.3
41.4
49.6
52.3
51.9
61.7
81.8
92.6
89.8
93.2
116.7
113-9
112.5
111.1
113.9
115.8
117.7
116.7
121.3
120.7
116.3
116.3
116.5
120.5
117.6
114.1
112.1
113.5
113.2
117.0
114.5
115.6
112.1
109.1
112.6
115.2
12. 17
11.03
9.65
10.14
17.58
16.95
22.99
11.01
9.14
5.86
6.76
7.51
9.62
10.22
9.68
12.17
12.65
13.54
12.91
17.71
19.79
16.08
15.82
19.06
19.79
15.87
17.80
18.17
(6)
(66)
(6)
(6)
()
(6)
(6)
(6)
(66)
(6)
(6)
()
1,374
976
1,032
968
1,249
1,798
1,826
1,980
2,445
3,436
4,030
3,984
3,576
4,537
4,454
942
473
517
499
821
1,237
1,253
1,332
1,665
2,388
2,791
2,823
2,482
3,285
3,280
4,597
4,569
4,636
4,764
4,758
4,734
4,648
4,528
4,443
4,401
4,460
4,454
4,365
4,274
4,158
4,153
4,132
4,214
4,133
4,243
4,282
4,294
4,294
3,297
3,253
3,305
3,401
3,385
3,388
3,374
3,269
3,250
3,210
3,273
3,280
3,198
3,129
3,028
3,037
3,021
3,082
3,004
3,109
3,137
3,133
3,141
(6)
(6)
(66)
(6)
()
353
432
503
515
469
428
561
573
648
780
1,048
1,239
1,161
1,094
1,252
1,174
1,184
1,300
1,316
1,331
1,363
1,373
1,346
1,274
1,259
1,193
1,191
1,187
1,174
1,167
1,145
1,130
1,116
1,111
1,132
1,129
1,134
1,145
1,161
1,153
1,184
715
584
535
850
1,328
2,137
2,782
1,471
784
1,331
1,608
1,742
1,419
2,002
2,248
2,688
2,852
2,214
2,190
2,569
2,579
2,610
2,146
1,939
1,852
2,226
2,075
2,017
2,106
2,103
2,061
2,115
2,087
2,579
,917
,811
,479
,812
,588
,665
1,658
1,860
2,058
1,957
1,851
2,610
1 Based on 300 stocks.
2 Based on 50 stocks for 1939-56 and 425 stocks beginning 1957. Ratio is obtained by dividing the stock
price index as of the end of the period by the seasonally adjusted annual rate of earnings for the quarter
then ending.
3 As reported by member firms of the New York Stock Exchange carrying margin accounts. Includes
net debit balances of all customers (other than general partners in the reporting firm and member firms of
national exchanges) whose combined accounts net to a debit. Balances secured by U.S. Government
obligations are excluded. Data are for end of period.
< Loans by weekly reporting member banks to others than brokers and dealers for purchasing or carrying
securities except U.S. Government obligations. From 1953 through June 1959, loans for purchasing
or carrying U.S. Government securities were reported separately only by New York and Chicago banks.
Accordingly, for that period any loans for purchasing or carrying such securities at other reporting banks
are included. Series also revised beginning July 1946, March 1953, and July 1958. Data are for last Wednesday of period. For details, see Federal Reserve Bulletin, August 1959.
' Loans by weekly reporting member banks for purchasing or carrying securities, including U.S. Government obligations. Series revised beginning July 1946, January 1952, July 1958, and July 1959. Data are
for last Wednesday of period. For details, see Federal Reserve Bulletin, August 1959.
• Not available.
Sources: Securities and Exchange Commission, Board of Governors of the Federal Reserve System,
Standard & Poor's Corporation, and New York Stock Exchange.
TABLE C-64.—Business population and business failures, 1929-60
Period
Operating businesses and business
turnover (thou-1
sands of firms)
DisOper- New conating busi- tinbusi- ness- ued
nesses 2 es s businesses 3
Business failures 3 4
New
business
incorporations
(number) 3
Business
failure
rate*
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
Amount of current
liabilities (millions of
dollars)
Liability size
Liability size
class
class
Total
Total
$100,000
$100,000
Under
Under
and
and
$100,000 over
$100,000 over
Number of failures
744 483.3
103.9 22,909 22,165
261.5
221.8
303.5
121.6 26,355 25, 408
947 668.3
364.8
133.4 28, 285 27,230
1,055 736.3
354.2
382.2
154.1 31, 822 30, 197
1,625 928.3
432.6
495.7
7 242. 0
7979 7457.5 7215.5
7100.3 7 19, 859 718,880
61.1 12,091 11, 421
670 334.0
138.5
195.4
553 310.6
135.5
175.1
61.7 12,244 11, 691
322 203.2
102.8
47.8
9,607
100.4
9,285
101.9
45.9
9,490
287 183.3
81.4
9,203
CO
61.1 12,836 12,553
283 246.5
140.1
106.4
( ) CO
7227 7182.5 7 132. 9
769.6 7 14, 768 7 14, 541
749.7
CO
119.9
219 166.7
318
275
63.0 13, 619 13,400
46.8
CO
100.7
290
271
163 136.1
35.4
CO
54.5 11,848 11,685
121
80.3
386
123 100.8
9,405
20.5
44.6
9,282
30.2
66
45.3
146
337
3,221
15.1
16.4
3,155
14.5
331
175
1,222
46
31.7
17.1
6.5
1, 176
CO
30.2
11.4
176
423
50
4.2
809
18.8
759
CO
209 132, 916
67.3
15.7
617
127
5.2
1,129
1,002
51.6
461
239 112, 638
371 204.6
63.7
3,474
140.9
14.3
3,103
93.9
393 282
96, 101
397 234.6
20.4
5,250
140.7
4,853
161.4
331 306
85,491 34.4
9,246
538 308.1
146.7
8,708
151.2
9,162
348
290
416 248.3
97.1
92,925
8,746
34.3
276
131.6
432 259.5
327
83,649
7,626
128.0
8,058
30.7
131.9
276
151.4
346
530 283.3
92, 819
7,611
7,081
28.7
167.5
352
299 102, 545
8,862
787 394.2
226.6
33.2
8,075
211.4
366
251.2
319 117, 164
860 462.6
42.0 11, 086 10, 226
206.4
314 139, 651
408
856 449.4
243.0
41.6 10, 969 10, 113
562.7
239.8
431
342 140, 775
1,071
322.9
48.0 12, 686 11, 615
1,192 615.3
267.1
348.2
398
335 136, 697
51.7 13, 739 12, 547
728.3
297.6
1,465
430.7
397
347 150, 280
55.9 14,964 13,499
278.9
413.9
423
1,346 692.8
347 8193,070
51.8 14, 053 12, 707
611.4
327.2
» 182, 443
1,795 938.6
57.0 15, 445 13, 650
73.6
23.9
49.7
137
51.1
1,273
1,136
18, 842
58.6
21.6
114
37.0
50.9
15, 701
1,161
1,047
25.4
65.1
39.7
1,263
120
18, 176
1,143
50.4
24.4
4 615
71.9
47.5
139
1,292
17, 615
52.0
1,153
50.9
22.6
28.3
May
1,135
99
16, 721
48.3
1,036
49.2
25.8
23.4
June
1,244
97
1,147
16,208 53.8
28.4
4,635
51.2
22.8
July
962
109
49.2
1,071
16,650
22.2
32.3
54.5
August .
14, 406
1,048
87
53.3
1,135
32.5
September.
22.3
54.7
1,144
118
14, 664
1,026
58.4
23.4
27.0
October
50.4
4,655
1,125
1,044
81
14, 526
50.5
November.
53.2
23.5
29.7
1,130
1,020
110
56.4
13, 015
38.4
December .
59.6
21.1
49.6
1,080
945
135
16, 456
24.6
29.0
I960* January
4,670
126
1,055
53.7
18, 189
51.0
1,181
36.6
February. .
24.4
1,214
1,091
123
60.9
14, 669
50.7
43.2
70.2
27.0
March
1,172
1,335
163
51.1
17, 437
40.3
April
4,690
28.9
1,235
69.2
135
15, 446
54.9
1,370
45.5
May
27.8
1,153
73.3
1,273
120
15, 530
64.1
100.0
26.5
June
1,334
1,157
16, 676
177 126.4
57.2
38.6
July
23.1
4,710
1,146
1,008
138
61.7
54.8
14, 676
70.2
27.4
August
97.6
1,137
178
59.6
1,315
14, 993
52.0
September.
28.6
80.6
1,269
1,118
151
65.2
14,007
52.9
28.6
October.... 4,725
1,192
152
1,344
81.5
63.3
13, 760
55.6
November.
84.5
28.9
1,126
185
12,
412
1,311
62.0
6
December .
47.5
31.5
1,206
147
79.0
1,353
14,648 6S.4
1
Excludes firms in the fields of agriculture and professional services. Includes self-employed person
only
if he has either an established place of business or at least one paid employee. Series revised beginning 1951.
2
Data through 1939 are averages of end-of-quarter estimates centered at June 30. Beginning 1940, data
are1 for beginning of period. Quarterly data shown here are seasonally adjusted.
Total for period.
4
Commercial and industrial failures only. Excludes failures of banks and railroads and, beginning 1933,
of real estate, insurance, holding, and financial companies, steamship lines, travel agencies, etc.
i Failure rate per 10,000 listed enterprises. Monthly data are seasonally adjusted.
• Not available.
78 Series revised; not strictly comparable with earlier data.
Beginning January 1959, data for Hawaii are included. Total for 1958 including Hawaii is 150,781.
9
Preliminary.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Department of Commerce and Dun & Bradstreet, Inc.
1929
1930
1931
1932 _
1933
1934
1935
1936
. _ ..
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
I960
1959: January —
February..
March
April
3,029
2,994
2,916
2,828
2,782
2,884
2,992
3,070
3,136
3,074
3,222
3,319
3,276
3,295
3,030
2,839
2,995
3,242
3,651
3,873
3,984
4,009
4,067
4,118
4,188
4,240
4,287
4,381
4,471
4,533
4,583
4,659
4,595
CO
(86)
()
CO
(«)
CO
CO
(6)
CO
6
CO
CO
(6)
CO
CO
CO
CO
CO
(«)
8
200
AGRICULTURE
TABLE C-65.—Income of the farm population, 7929-60
Income received by tota 1
farm population
Period
Income received by farm operators from
farming
Realized
gross
From agricultural
sources
From
nonagriculsources
tural Totals
Farm sources
Total' wages
2
From
all
Net income
per farm including net
inventory6
change
Net
Proall
Cash duc- ExInsources
re- tion clud- cludper
ing ing net
ceipts experson 7
from penses inven- inven- Cur- 1960
rent prices •
martory tory
keting
change change* prices
Billions of dollars
(8)
(8)
1929
1930
1931
1932
1933
1934
(88)
()
(88)
(88)
(8)
(8)
8(
L
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
7.9
7.3
9.3
7.4
7.7
8.0
10.6
14.9
17.4
17.8
18.2
21.4
22.4
24.9
19.9
21.0
23.7
23.4
21.1
20.2
19.8
20.1
20.2
22.2
20.4
20.7
7.0
5.1
4.0
2.5
3.0
3.4
5.9
5.0
6.8
5.1
5.2
5.3
7.5
11.1
13.2
13.4
14.0
17.0
17.5
19.8
14.7
15.7
18.1
17.3
15.1
14.4
13.6
13.4
13.6
15.8
13.6
13.8
fl
--
0.9
.8
.6
.5
.4
.5
.6
.6
.7
.7
.7
.7
.9
1.2
1.4
1.5
1.6
1.8
1.9
2.0
1.8
1.7
1.8
1.9
1.8
1.8
1.7
1.7
1.8
1.8
1.8
1.8
(8)
(88)
(8 )
(8)
()
1.9
2.0
2.3
2.5
2.3
2.5
2.7
3.1
3.8
4.2
4.4
4.2
4.3
4.9
5.1
5.2
5.3
5.6
6.1
6.0
5.8
6.3
6.7
6.6
6.4
6.8
6.9
In-
come
from
13.9
11.3
11.4
8.4
6.4
7.1
8.5
9.7
10.7
11.3
10.1
10.6
11.0
13.8
18.8
23.4
24.4
25.8
29.7
34.4
34.9
31.8
32.5
37.3
37.0
35.3
33.9
33.3
34.6
34.4
38.2
37.5
37.9
9.1
6.4
4.7
5.3
6.4
7.1
8.4
8.9
7.7
7.9
8.4
11.1
15.6
19.6
20.5
21.7
24.8
29.6
30.2
27.8
28.5
33.0
32.6
31.1
30.0
29.6
30.6
29.8
33.5
33.1
33.7
Dollars
7.6
6.9
5.5
4.4
4.3
4.7
5.1
5.6
6.1
5.8
6.2
6.7
7.7
9.9
11.5
12.2
12.9
14.5
17.0
18.9
18.0
19.3
22.2
22.6
21.4
21.7
21.9
22.6
23.4
25.2
26.2
26.3
6.3
4.5
2.9
1.9
2.8
3.9
4.6
5.1
5.2
4.3
4.4
4.3
6.2
8.8
11.9
12.2
12.8
15.2
17.3
16.1
13.8
13.2
15.2
14.4
13.9
12.2
11.5
12.0
11.0
13.0
11.3
11.6
6.1
4.3
3.3
2.0
2.6
2.9
5.3
4.3
6.0
4.4
4.5
4.6
6.6
9.9
11.8
11.8
12.4
15.3
15.5
17.8
12.9
14.0
16.3
15.3
13.3
12.7
11.8
11.6
11.8
14.0
11.8
12.0
943
650
506
305
382
434
778
643
911
675
697
720
1,044
1,600
1,942
1,967
2,080
2,574
2,648
3,065
2,259
2,479
2,951
2,829
2,502
2,440
2,313
2,338
2,426
2,952
2,548
2,640
1,779
1,300
1,177
824
1,032
1,033
1,809
1,495
2,070
1,607
1,700
1,714
2,320
3,137
3,407
3,278
3,302
3,677
3,229
3,523
2,689
2,916
3,208
3,042
2,690
2,624
2,487
2,487
2,501
2,982
2,574
2,640
(8)
(88)
()
165
244
228
296
239
249
262
349
509
654
696
720
806
825
962
767
838
983
962
931
916
883
897
933
1,039
965
(8)
Seasonally adjusted annual rates
1959:
First quarter
Second quarter.
Third quarter . _
Fourth quarter .
1960:
First quarter...
Second quarter.
Third quarter ..
Fourth quarter 9
8 8
()
()
8 8
8 8 (( )) 8
8 8 8 8
8
8
38.5
37.8
36.7
36.9
34.0 26.2
33.5 26.3
32.4 26.1
32.7 26.1
12.3
11.5
10.6
10.8
13.0
12.0
11.1
11.2
2,800
2,590
2,390
2,410
2,830
2,620
2,410
2,410
8
36.5
38.3
38.1
38.6
32.3 26.3
34.1 26.5
34.0 26.2
34.3 26.2
10.2
11.8
11.9
12.4
10.6
12.1
12.2
12.8
2,330
2,670
2,690
2,820
2,330
2,670
2,690
2,820
(88)
()
(8)
(8)
8
1 Net income of farm operators from farming (including net inventory change) and farm wages as shown.
2 Farm wages received by farm resident- workers.
34 Cash receipts from marketings, Government payments, and nonmoney income furnished by farms.
Includes net change in inventory of crops and livestock valued at the average price for the year. Data
prior to 1946 differ from farm proprietors' income shown in Tables C-9 and C-12 because of revisions by
the Department of Agriculture not yet incorporated into the national income accounts of the Department
of Commerce.
« Based on estimated number of farms as reported by the Department of Agriculture according to 1954
Census definition (see footnote 1, Table C-70).
' Income in current prices divided by the index of prices paid by farmers for family living items on a
1960 base.
? Based on farm population as defined in 1950 Census of Population. See footnote 1, Table C-69.
s Not available.
* Preliminary.
Note.—Detail will not necessarily add to totals because of rounding.
Source: Department of Agriculture.
576899 0—61-
-15
201
TABLE C-66.—Indexes of prices received and prices paid by farmers, and parity ratio, T929-60
[1910-14=100]
Prices received by farmers
Livestock and products
Crops
Period
All
farm
prod- All Food
ucts i crops i grains
Feed grains
and hay
Feed
Total grains
OilCot- To- bearton bacco ing
crops
All
live- Meat Dairy Poulstock ani- prod- try
and
and
prod- mals ucts eggs
ucts i
1929
148
135
116
118
124
150
171
143
159
155
166
161
1930
1931
1932
1933
1934
125
87
65
70
90
115
75
57
71
98
93
56
44
66
90
106
74
48
57
95
109
71
44
57
97
104
64
49
68
101
140
98
84
107
156
111
73
44
57
103
134
98
72
70
81
133
91
63
59
68
142
111
86
87
101
128
98
81
74
89
1935
1936
1937
1938
1939
109
114
'122
97
95
103
108
118
80
82
97
108
120
75
72
107
103
125
71
72
112
110
135
73
72
98
99
94
70
74
171
163
200
173
152
127
120
129
95
96
114
119
126
112
107
115
118
130
113
110
114
125
131
115
110
116
115
111
110
96
100
124
159
8193
6 197
90
108
145
187
199
84
97
120
148
166
85
92
115
152
172
86
94
117
156
175
83
111
156
167
172
134
157
247
319
348
103
138
183
202
222
109
138
171
198
196
108
120
143
140
186
163
203 e 198
190 6222
98
122
152
191
177
e 207
6236
276
287
250
202
228
263
255
224
172
201
271
250
218
167
202
256
258
177
168
212
275
273
176
179
238
274
272
246
360
376
374
380
398
228
260
363
351
242
211
242
288
315
272
6207 6229
6248 6268
329
273
361
301
311
252
198
201
223
242
221
258
302
288
255
246
233
265
267
240
242
224
243
244
234
232
193
226
234
206
203
198
237
242
212
209
282
336
310
268
274
402
436
432
433
443
276
339
296
279
304
280
336
306
268
249
340
409
353
288
283
249
286
303
267
246
186
228
206
221
178
1955
1956 ..
1957
1958 ..
1959
232
230
235
250
240
231
235
225
223
221
228
224
225
208
202
183
182
166
154
156
187
186
169
156
157
272
268
263
253
266
437
452
466
482
506
249
255
244
225
219
234
226
244
273
256
246
235
275
335
313
247
255
259
254
256
191
176
162
169
142
19607
238
221
203
151
150
253
496
214
252
296
258
158
244
243
244
244
244
242
213
216
219
223
228
229
199
202
205
205
205
199
152
154
155
161
163
163
153
155
157
164
167
168
239
243
258
267
272
277
499
505
505
508
508
509
218
221
223
225
230
228
271
266
265
262
258
253
330
324
329
336
338
330
264
258
250
241
233
231
160
158
153
136
125
125
241
239
240
235
231
230
226
220
220
218
217
218
199
201
198
203
206
206
161
159
156
149
150
149
164
161
157
148
149
146
289
281
280
274
260
254
508
511
511
509
499
494
222
214
204
208
216
215
253
255
257
250
243
240
316
314
308
292
276
268
242
252
267
277
280
273
140
139
143
138
139
148
232
233
241
242
241
236
220
218
222
225
228
221
206
208
210
209
209
199
151
153
153
158
158
158
148
150
150
155
158
159
248
237
238
244
248
251
484
494
494
494
494
494
216
216
213
216
218
216
242
245
257
257
252
248
279
287
309
310
310
305
266
261
256
244
237
234
144
142
153
163
153
148
238
234
237
240
241
242
226
218
222
220
218
217
194
196
197
200
204
204
156
152
152
147
136
141
158
153
153
146
132
137
265
273
271
267
254
243
493
479
502
508
502
520
213
211
208
209
213
217
249
247
251
258
261
263
302
290
285
288
289
296
244
254
269
278
281
278
148
152
162
175
180
178
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
..
. .. _.
1950
1951
1952
1953
1954
.
1959:
January
February..
March
.. ..
April
May
June
July
.. ..
August
September
October
November
December
1960:
January
February
March
April
May
June
July
August
September
October
November
December
See footnotes at end of table, p. 203.
202
TABLE C-66.—Indexes of prices received and prices paid by farmers, and parity ratio, 1929-60—
Continued
[1910-14 = 100]
Prices paid by farmers
All
Commodities and services
items,
interest,
Production items
taxes,
Famand
All
ily
All
wage items
living producMotor Farm
rates
ma- Feritems tion
Feed ve- chinti(parity
hicles
index)
items !
ery lizer
Period
1929
1930
1931 .
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
.
1953
1954
1955
1956
1957
1958
1959
1960 7 .
160
151
130
112
109
120
124
124
131
124
123
124
133
152
171
182
190
208
240
260
251
256
282
. . 287
277
277
276
278
286
293
297
299
150
140
119
102
104
118
123
123
130
122
121
122
130
149
165
174
179
197
230
250
240
246
271
273
261
262
259
260
267
273
275
275
154
144
124
106
108
122
124
124
128
122
120
121
130
149
165
175
182
202
237
251
243
246
268
271
269
270
270
274
282
287
288
290
146
135
113
99
99
114
122
122
132
122
121
123
130
148
164
173
176
191
224
250
238
246
273
274
256
255
251
250
257
264
266
264
136
122
86
64
73
103
106
109
124
93
93
100
108
132
156
173
172
200
236
250
206
210
236
251
227
226
211
206
201
198
199
194
148
144
143
141
140
148
150
157
162
172
165
163
172
186
195
211
218
224
260
291
320
320
342
358
355
355
358
367
395
412
426
419
298
297
297
298
298
298
297
297
296
296
296
296
276
275
275
276
276
276
275
275
274
275
275
275
287
288
287
287
287
288
288
288
288
289
290
291
268
266
267
269
268
267
266
266
264
264
264
264
202
202
200
203
202
199
199
198
195
194
195
195
429
299
299
300
302
301
299
298
298
298
297
297
298
275
276
276
278
277
275
275
274
274
274
274
275
290
289
289
291
291
290
290
290
290
290
291
290
265
266
267
268
267
265
263
262
263
262
262
264
197
197
197
199
198
196
195
193
193
191
188
189
432
-.
. .
1959:
January
February
March
April
May
June
July
August
September
October
November
December
1960:
January
February
March
April
May
June
July
August
September
October
November
December
1
2 Includes items not shown separately.
3 Interest payable per acre on farm real
153
152
150
142
138
144
148
150
153
158
155
153
155
164
170
174
176
182
206
240
270
275
297
308
311
312
312
326
342
357
372
382
427
365
424
420
371
418
377
425
440
377
130
126
114
100
93
105
104
98
103
102
101
98
98
109
116
118
120
121
134
146
150
144
152
156
157
158
155
152
153
153
152
152
151
427
379
420
420
381
414
403
385
152
"I52~
153
estate debt.
Farm real estate taxes payable per acre (levied in preceding year).
* Monthly data are seasonally adjusted.
*6 Percentage ratio of prices received for all farm products to parity index.
Includes wartime subsidy payments.
* Preliminary.
Source: Department of Agriculture.
203
Interest2
Parity
Wage
ratio »
Taxes 3rates
4
213
206
197
185
164
147
135
125
117
110
106
102
98
94
84
79
75
74
76
78
82
89
98
108
117
126
136
150
163
176
194
213
279
281
277
254
220
188
178
180
181
187
185
189
187
189
185
185
192
213
237
276
298
320
335
350
365
381
394
421
440
470
496
536
186
177
139
104
88
99
107
114
129
130
127
129
151
197
262
318
359
387
419
442
430
425
470
503
513
510
516
536
558
574
612
631
194
194
194
194
194
194
194
194
194
194
194
194
496
496
496
496
496
496
496
496
496
496
496
496
G10
213
213
213
213
213
213
213
213
213
213
213
213
6S2
536
536
536
536 ~~6~49~
536
536
6S1
536
536
536
536 "~61~S~
536
536
680
618
602
92
83
67
58
64
75
88
92
93
78
77
81
93
105
113
108
109
113
115
110
100
101
107
100
92
89
84
83
82
85
81
80
82
82
82
82
82
81
81
80
81
79
78
78
78
78
80
80
80
79
80
79
80
81
81
81
TABLE G-67.—Farm production indexes, 7929-60
[1947-49=100]
Crops
Livestock and products
Farm
Oil
Period outMeat Dairy PoulTo- bearFood Vege- Fruits
put i Total 2 Feed Hay
try
and Cotand grains
ani- prod- and
ton bacco ing TotaP mals
tables nuts
grains forage
ucts eggs
crops
1929..-
74
79
83
88
66
78
76
104
75
21
77
77
82
63
1930. ._
1931--.
1932...
1933. ..
1934...
72
79
76
70
60
76
84
80
71
58
73
84
95
73
48
75
79
86
79
67
72
76
62
45
44
79
80
80
77
84
75
94
76
77
72
98
119
91
91
68
81
76
49
68
54
23
23
21
18
21
78
80
81
82
75
78
82
83
86
73
84
86
86
87
85
65
63
63
62
59
1935. „_
1936...
1937...
1938...
1939...
72
65
82
79
79
76
64
88
83
82
80
53
87
84
83
96
74
87
98
93
53
52
72
75
61
85
80
86
86
85
91
72
95
85
101
75
87
133
84
83
65
58
78
69
93
34
27
30
36
47
72
77
76
79
85
66
74
71
77
88
86
87
86
89
90
59
63
63
65
70
1940...
1941...
1942...
1943-..
1944...
82
85
96
94
97
85
87
97
91
96
85
91
104
96
100
105
106
115
109
108
67
76
80
69
85
88
89
95
103
98
96
102
101
87
101
88
75
90
80
86
72
63
70
69
96
56
61
92
98
82
87
92
102
110
105
89
94
108
120
108
92
96
100
99
101
70
77
89
102
102
1945..1946...
1947...
1948...
1949...
95
98
95
104
101
93
98
93
106
101
97
106
81
116
103
112
104
102
99
99
89
92
108
103
89
100
111
97
103
100
92
110
104
95
101
63
61
83
105
112
98
114
104
98
98
88
84
91
109
100
104
101
100
97
103
103
101
100
97
103
103
102
101
98
101
106
99
98
96
106
1950...
1951 ...
1952...
1953 ...
1954...
101
104
108
109
109
97
99
104
103
101
104
97
103
101
106
106
110
106
109
108
83
82
105
96
85.
102
95
96
101
98
101
103
100
101
102
70
106
106
115
96
101
116
112
102
111
115
106
104
103
116
107
112
112
114
117
109
117
117
116
121
101
100
100
105
107
111
116
117
120
125
1955...
1956...
1957. ..
1958...
1959...
19604..
113
114
114
124
126
105
106
106
118
117
112
112
122
135
140
115
109
122
122
116
80
84
79
117
93
102
109
104
108
104
102
107
103
109
116
103
93
77
80
102
109
108
83
86
89
128
152
147
180
159
120
122
121
124
130
127
123
119
124
134
108
110
111
111
111
123
136
137
145
150
129
122
144
124
111
107
109
101
97
172
129
132
112
149
1 Farm output measures the annual volume of farm production available for eventual human use through
sales from farms or consumption in farm households. Total excludes production of feed for horses and mules.
2 Includes production of feed for horses and mules and certain items not shown separately.
3 Includes certain items not shown separately.
* Preliminary.
Source: Department of Agriculture.
204
TABLE C-68.—Selected measures of farm resources and inputs, 1929—60
Cropland
harvested
(millions
of acres)1
Year
Total
Index numbers of inputs (1947-49=100)
Livestock
breeding
Exclusive of units
use for (1947feed for 49=
horses 100) 2
and
mules
Manhours
of
farm
work
(billions)
Mecal
chaniTotal
Farm
labor
Farm
real
estate3
power
and
ma-
Fertilizer
and
lime
chinery
Feed,
seed,
and
live- Miscelstock laneous
purchases *
1929 .
365
298
92
23.2
98
138
98
53
36
38
96
1930
1931
1932
1933
1934 .
369
365
371
340
304
304
303
311
281
247
92
93
95
98
98
22.9
23.4
22.6
22.6
20.2
97
96
93
91
86
137
140
135
135
121
96
94
91
92
91
55
52
48
44
44
36
28
19
21
25
37
32
34
34
33
96
99
100
97
88
1935
1936
1937
1938
1939
345
323
347
349
330
289
269
295
301
285
86
90
87
87
93
21.1
20.4
22.1
20.6
20.7
88
89
94
91
94
126
122
132
123
123
93
94
95
96
97
45
48
52
55
55
29
35
41
39
41
32
43
40
42
52
84
87
86
89
92
1940 .
1941 .. -_
1942
1943
1944
339
342
346
356
361
296
302
307
319
325
95
94
104
117
114
20.5
20.0
20.6
20.3
20.2
97
97
101
101
101
122
120
123
121
120
98
98
96
94
93
58
61
66
69
70
48
52
58
66
75
63
65
80
88
90
93
94
95
97
97
1945
1946 .. -._
1947
1948 .
1949
354
351
354
356
360
322
322
328
332
338
108
107
103
98
99
18.8
18.1
17.2
16.8
16.2
99
99
99
100
101
113
108
103
100
97
93
96
98
101
101
74
80
89
100
111
78
92
97
98
105
101
97
102
101
97
97
98
99
97
104
1950 .
1951
1952
1953
1954
345
344
349
348
346
326
326
334
335
335
102
103
102
100
104
15.1
15.2
14.4
13.9
13.1
101
104
104
103
102
90
91
86
83
78
103
104
105
105
106
118
127
133
134
135
118
126
139
143
152
101
112
113
112
115
108
112
112
115
115
1955
1956
1957
1958
1959
340
326
326
328
332
330
317
318
321
326
106
104
102
100
104
12.8
12.1
11.4
11.1
11.0
102
102
100
101
103
76
72
68
66
66
106
105
105
106
107
136
137
138
137
141
156
158
163
167
188
120
128
130
141
145
120
124
122
127
133
I9608
328
322
102
10.5
103
63
106
(6)
(6)
(fl)
1 Acreage harvested (excluding duplication) plus acreages in fruits, tree nuts, and farm gardens.
Animal units of breeding livestock, excluding horses and mules.
Includes buildings and improvements on land.
*6 Nonfarm inputs associated with farmers' purchases.
Preliminary.
9
Not available.
Source: Department of Agriculture.
2
3
205
(6)
TABLE G-69.—Farm population, employment, and productivity, 1929-60
Farm population
(April 1) i
Farm employment
Net
(thousands) *
migration to
and
Period
Per
per- from
Num- As
cent of farms
Family Hired unit
ber
of
Total
total
(thouworkers workers total
(thou- popu- sands) 3
sands) lation
2
input
Farm output
LiveCrop stock
proproduc- duction
Per man-hour
tion
per
per
breedacre 8
ing
Liveunit
Total Crops stock
Index, 1947-49=100
1929.... 30, 580
25.1
-477
12, 763
9,360
3,403
76
54
51
76
79
84
1930....
1931....
1932....
1933....
1934....
30, 529
30, 845
31, 388
32, 393
32, 305
24.8
24.8
25.1
25.8
25.5
-61
156
607
-463
-527
12, 497
12, 745
12, 816
12, 739
12, 627
9,307
9,642
9,922
9,874
9,765
3,190
3,103
2,894
2,865
2,862
74
82
82
77
70
53
56
56
52
50
50
54
55
50
48
76
75
75
73
69
75
83
79
71
59
85
86
85
84
77
1935....
1936....
1937-..
1938....
1939... .
32, 161
31, 737
31, 266
30, 980
30, 840
25.3
24.8
24.2
23.8
23.5
-799
-834
-661
-545
-703
12, 733
12, 331
11, 978
11, 622
11,338
9,855
9,350
9,054
8,815
8,611
2,878
2,981
2,924
2,807
2,727
82
73
87
87
84
57
53
62
64
64
57
50
60
63
63
70
73
73
76
79
76
65
88
85
85
84
86
87
91
91
1940.-.
1941....
1942—.
1943—.
1944....
30, 547
30, 273
29, 234
26, 681
25, 495
23.1
-633
22.7 -1,424
21.7 -2, 975
19.5 -1,563
-564
18.4
10, 979
10, 669
10, 504
10, 446
10, 219
8,300
8,017
7,949
8,010
7,988
2,679
2,652
2,555
2,436
2,231
85
88
95
93
96
67
71
78
78
81
67
71
78
76
79
80
82
88
92
90
88
90
99
92
96
92
98
98
94
92
1945—.
1946—.
1947—.
1948—.
1949—.
25, 295
26, 483
27, 124
25, 903
25, 954
864
18.1
151
18.7
18.8 -1,686
-371
17.7
17.4 -1,314
10,000
10, 295
10, 382
10, 363
9,964
7,881
8,106
8,115
8,026
7,712
2,119
2,189
2,267
2,337
2,252
96
99
96
104
100
84
91
92
104
104
85
92
91
104
105
91
94
97
99
104
95
101
95
106
99
96
94
97
99
104
1950—.
1951-..
1952-..
1953—
1954—
25, 058
24, 160
24, 283
22, 679
22,099
16.5 -1, 302
-271
15.7
15.5 -1, 996
-962
14.2
13.6
-25
9,926
9,546
9,149
8,864
8,639
7,597
7,310
7,005
6,775
6,579
2,329
2,236
2,144
2,089
2,060
100
100
104
106
107
112
114
126
131
140
114
112
125
129
138
107
114
117
120
124
97
98
104
103
101
105
109
110
114
112
1955—
1956—
1947—
1958—
1959—
22, 438
22, 362
21, 606
21, 388
21, 172
13.6
-435
13.3 -1,134
12.6
-576
-548
12.3
12.0
(«)
8,364
7,820
7,577
7,525
7,384
6,347
5,899
5,682
5,570
5,459
2,017
1,921
1,895
1,955
1,925
111
112
114
123
122
149
158
168
188
191
148
161
180
203
203
130
136
138
144
151
106
109
112
126
122
113
117
119
124
125
19607..
(fi)
(6)
7,118
5,249
1,869
125
205
218
155
130
126
(6)
1 Farm population as defined by Department of Agriculture and Department of Commerce, i.e., civilian
population living on farms, both urban and rural, regardless of occupation, according to concept in" us e
prior to 1960.
2 Total population of United States as of July 1, excluding Alaska and Hawaii; includes armed forces abroad.
3 Net change for year beginning in April, estimated by Department of Agriculture. For 1940 and subsequent years, includes inductions and enlistments into the armed forces, and persons returning from the
armed forces. For all years, includes persons who have not moved but who are in and out of the farm popu lation
because agricultural operations have begun or have ceased en the place where they are living.
4
Includes persons doing farm work on all farms. These data, published by the Department of Agriculture, Agricultural Marketing Service, differ from those on agricultural employment by the Department
of Labor (see Table O-17) because of differences in the method of approach, in concepts of employment,
and in time of month for which the data are collected. For further explanation, see monthly report on
Farm
Labor, September 10,1958.
5
Computed from variable weights for individual crops produced each year.
8 Not available.
' Preliminary.
Sources: Department of Agriculture and Department of Commerce.
206
TABLE C-70.—Selected indicators of farming conditions, 7929-60
Value of production assets
(dollars) 2
Number
of farms
(thousands) 1
Year
Current prices
1947-49 prices
Per
Per
Per
Per
farm- farm
farm1 rworker
farm 1 worker
1929
6,512
(7)
(7)
(7)
1930
1931
1932
1933
1934
6,546
6,608
6,687
6,741
6,776
(7)
(77)
(7)
( 7)
()
(77)
(7 )
( 7)
(7)
(77)
( 7)
(7)
(7)
1935
1936
1937
1938
1939
6,814
6,739
6,636
6,527
6,441
(77)
( 7)
()
(77)
()
(77)
(7)
( 7)
( 7)
()
(77)
( 7)
(7)
(7)
()
(77)
()
(77)
( 7)
(7)
( 7)
()
1940
1941
1942
1943
1944
6,350
6,293
6,202
6,089
6,003
6,094
6,340
7,449
8,934
10,328
3,413
3,634
4,330
5,179
5,935
13, 118
13, 444
14, 076
14, 748
15, 042
5,967
5,926
5,871
5,803
5,722
11,346
12, 435
14, 154
15, 906
17, 144
6,625
7,370
8,072
8,890
9,466
5,648
5,535
5,421
5,308
5,201
16, 979
20, 434
23, 206
22, 946
22, 592
1955
1956
1957
1958
1959
5,087
4,969
4,856
4,749
4,641
1960 8
4,540
1945
1946
1947 .
1948
1949
1950
1951
1952
1953 .
1954
...
-.-
Investment
during year
in farm plant
and equipment
(millions of
dollars)
Gross
Real
Foreestate
closure
debt as rate
per
percent
1,000 5
of value 4 farms
(percent)
Nets
Percent
of all
farms
having
central
station
electrical6
service
(7)
966
50
20.3
15.7
(7)
8( )
717
408
194
189
376
-238
-448
-540
-455
-274
20.1
21.5
24.5
27.5
23.9
18.7
28.4
38.8
28.0
21.0
8( )
560
756
903
685
774
-104
28
107
-148
-7
22.8
21.7
20.3
19.8
19.9
20.3
18.1
14.3
13.4
12.5
10.9
12.3
15.8
19.1
22.1
7,347
7,706
8,183
8,549
8,644
872
1,199
1,202
918
1, 488
76
325
-168
-485
25
19.6
18.9
17.0
14.3
11.2
10.4
6.1
4.3
3.0
1.9
30.4
34.9
38.3
40.3
42.2
15, 100
15, 151
15, 364
15, 509
16,480
8,817
8,980
8,762
8,678
9,100
1,533
2,035
3, 245
4,316
4,492
193
811
1,641
2,257
2,064
9.2
7.8
7.2
6.9
6.9
1.5
1.1
1.0
1.2
1.4
45.7
54.3
61.0
68.6
78.2
9,625
11, 394
13, 178
13, 313
13, 256
16, 979
17, 742
18, 428
19, 009
19, 631
9,625
9,893
10, 465
11, 029
11, 519
4,594
4,825
4,696
4,785
4,230
1,858
1,599
1,297
1,265
614
7.4
7.0
7.0
7.5
8.2
1.5
1.6
1.3
1.7
2.0
77.2
84.2
88.1
90.8
92.3
23, 806
25, 055
27, 183
29, 522
33, 398
14, 018
14, 886
16, 880
18, 477
20, 598
20, 306
21, 091
21, 520
22, 068
23, 185
11,957
12, 530
13, 363
13,831
14, 299
4,229
3,863
3,955
4,526
4,878
507
141
70
565
753
8.4
8.8
9.1
9.0
9.0
2.3
2.0
1.7
1.6
1.6
93.4
94.2
94.8
95.4
96.0
34, 648
21, 303
23, 921
14, 707
(7)
()
()
7
(7)
9.5
(7)
7
(77)
()
97.0
1 Number of farms as estimated by the Department of Agriculture according to the 1954 Census defini tion, with adjustment for Census underenumeration. The number of farms as reported by the Census
for 1950, 1954, and 1959 is found in Table B-9. For further explanation of the difference between the two
series,
see Census of Agriculture, 1954, Volume II.
2
Farm real estate less value of dwellings; livestock; crops held for feed; machinery; farm share of value
of 8automobiles; and demand deposits used for production. Data are for January 1.
Gross investment less depreciation and other capital consumption.
* Data are for January 1.
« Data are for year ending March 15 of the year following that indicated.
« Data are for June 30, except for Census of Agriculture years: 1935 (January 1), 1940 (April 1), 1945
(January 1), and 1950 (April 1).
78 Not available.
Preliminary.
Source: Department of Agriculture.
207
TABLE C-71.—Comparative balance sheet of agriculture, 1929-61
[Billions of dollars]
Assets
Claims
Other physical assets
HouseMahold
chinReal
furTotal estate
ery
nishLive- and
Crops
i
ings
stock motor
and
vehiequip-2
cles
ment
Beginning
of period
48.0
6.6
3.2
6.5
4.9
3.6
3.0
3.2
3.3
3.2
2.9
2.5
2.2
33.3
34.3
35.2
35.2
34.1
3.5
5.2
5.1
5.0
5.1
2.2
2.4
2.6
3.0
3.0
33.6
34.4
37.5
41.6
48.2
5.1
5.3
7.1
9.6
9.7
3.1
3.3
4.0
4.9
5.3
2.7
3.0
3.8
5.1
6.1
4.3
4.3
4.5
4.6
4.6
3.2
3.5
4.2
5.4
6.6
0.2
.4
.5
1.1
2.2
.8
.9
.9
1.0
1.1
53.0
55.1
62.5
73.3
83.8
93.1
102.0
113.9
125.2
132.1
53.9 9.0
61.0 9.7
68.5 11.9
73.7 13.3
76.6 14.4
6.3
5.2
5.1
7.0
9.4
6.7
6.3
7.1
9.0
8.6
4.7
4.8
5.4
6.2
7.0
7.9
9.4
10.2
9.9
9.6
3.4
4.2
4.2
4.4
4.6
1.2
1.4
1.5
1.7
1.9
130.8
165.6
162.9
159.7
75.3
86.8
96.0
96.6
94.7
12.9
17.1
19.5
14.8
11.7
11.3
13.0
15.2
15.6
16.3
7.6
7.9
8.8
9.0
9.2
7.8
8.7
9.5
10.2
10.8
9.1
9.1
9.4
9.4
9.4
4.7
4.7
4.7
4.6
4.7
164.7
168.1
176.3
186.0
202.3
98.8
102.7
109.5
116.3
125. 1
11.2
10.7
11.1
14.1
18.1
16.2
16.5
17.1
17.0
17.7
9.6
8.3
8.3
7.6
9.3
11.4
11.9
12.4
12.8
13.1
9.4
9.5
9.4
9.5
10.0
203.6 129.1 16.2
199.3 125.0
18.4
8.0
13.5
9.1
. 68.4
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
53.0
55.1
62.5
73.3
83.8
._
.
1945 ___
1946
1947
1948 .-.
1949
1950
1951
1952
1953
1954
_ 149.6
1955
1956
1957
1958
1959
1960
1961
- .--
4
ProReal Other prieDeposInvest- Total estate
tors'
its
U.S. ment
debt detit equiand savings in coties
cur- bonds operarency
tives
47.9
43.7
37.2
30.8
32.2
1929
1930
1931
1932
1933
1934
Financial assets
9.8
2.5
4.0
3.6
0.6
68.4
9.6
9.4
9.1
8.5
5.0
53.8
6.6
6.5
6.4
6.0
5.4
3.4
3.9
4.1
4.0
3.5
43.0
44.7
52.0
63.3
74.9
93.1
102.0
113.9
125.2
132.1
4.9
4.8
4.9
5.1
5.3
3.4
3.2
3.6
4.2
6.1
84.8
94.0
105.4
115.9
120.7
2.1
2.3
2.5
2.7
2.9
130.8
149.6
165.6
162.9
159.7
5.6
6.1
6.7
7.3
7.8
6.9
7.0
7.9
8.8
9.3
118.3
136.5
151.0
146.8
142.6
5.0
5.2
5.1
5.1
5.2
3.1
3.3
3.4
3.6
3.8
164.7 8.3
168.1 9.1
176.3 9.9
186.0 10.5
202. 3 11.3
9.5
9.8
9.6
9.7
12.0
146.9
149.2
156.8
165.8
179.0
5.2
4.1 203.6 12.3
199.3 13.1
12.0
12.6
179.3
173.6
7.7
7.6
7.4
7.2
7.0
6.8
(3)
1
Includes all crops held on farms for whatever purpose and crops held off farms as security for Commodity
Credit Corporation loans. The latter on January 1, 1960, totaled $499 million.
2 Estimated valuation for 1940, plus purchases minus depreciation since then.
3 Not available.
* Preliminary.
Source: Department of Agriculture.
208
INTERNATIONAL STATISTICS
TABLE C-72.—United States balance of payments, 1955-60 1
[Millions of dollars]
1955
Type of transaction
1956
1957
1958
1959
JanuarySeptember
1959
1960
Recorded transactions other than changes
in monetary gold stock and in liquid
liabilities:
21, 944
25, 846
27, 374
27, 206
28, 621
21, 460
22, 485
Imports of goods and services: Total. _ 17, 937
19, 829
20, 923
21, 053
23, 560
17, 598
17, 832
11, 527
1,204
1,153
728
2,823
12, 804
1,408
1,275
807
2,955
13, 291
1,569
1,372
873
3,165
12, 951
1,636
1,460
918
3,412
15, 315
1,784
1,610
931
3,090
11, 329
1,361
1,287
703
2,338
11,233
1,501
1,436
668
2,290
408
94
426
154
452
201
537
139
549
281
395
185
440
264
United States payments: Total
Merchandise, adjusted- _. _ _
Transportation
Travel
Miscellaneous services
Military expenditures.
Income on investments:
Private
_
Government
2,486
2,398
2,318
2,338
2,402
1,739
1,813
Government grants
Remittances and pensions
1,901
585
1,733
665
1,616
702
1,616
722
1,623
779
1,163
576
1,196
617
United States capital, net: Total
],521
3,619
4,133
3,815
2, 659
2 2, 123
2,840
1,211
2,990
3,175
2,844
2,301
1,528
2,093
779
128
-190
303
191
1,859
453
-174
324
528
2,058
597
-179
441
258
1,094
955
-85
574
306
1,310
624
-94
372
89
945
496
-69
301
-145
911
436
-69
202
613
310
383
-416
343
629
545
-479
563
958
993
-659
624
971
2358
1,176 21,018
-544 -1,013
339
353
2595
2771
-531
355
747
795
-436
388
Unilateral transfers, net: Total
Private, net: Total. .Direct investments, net
New issues
Redemptions
Other long-term, net
Short-term, net
Government, net: Total
Long-term capital, outflow...
Repfiymfvpts
Short-term, net
2
20, 349
24, 235
27, 094
23, 349
24, 012
17, 516
20, 229
Exports of goods and services: Total. - 20, 003
23, 705
26, 733
23, 325
23, 464
17, 096
19, 893
14, 280
1,420
654
__ 1,001
204
17, 379
1,642
705
1,210
158
19, 390
1,999
785
1,306
372
16, 263
1,672
825
1,347
296
16, 225
1, 649
902
1,343
297
11, 897
1,240
704
1,008
222
14, 277
1,323
765
1,003
293
1,912
258
274
2,120
297
194
2,313
363
205
2, 198
417
307
2,235
467
346
1,492
342
191
1,656
374
202
346
530
361
24
548
420
336
-280 -3, 857 -4, 609
-3, 944
-2, 256
783
557
-339
1,202 2 3, 095
2 2, 728
1,814
2659
781
United States receipts: TotaL
Merchandise, adjusted
Transportation
Travel
- Miscellaneous services
Military transactions
Income on investments:
Direct investments
Other private
Government
__
Foreign long-term investments in
the United States, net
Balance on recorded transactions [net
-1,595 -1,611
receipts or net payments (—)]._
Unrecorded transactions— errors and omissions [net receipts or net payments(— )]
446
643
Increase in liquid liabilities to foreign countries and international institutions
1,108
1,274
330
41
-306
-798
United States gold sales or purchases (— )
748
380
2,275
2731
1
Excludes transfers of goods and services under military grant programs.
2
Excludes $1,375 million for increase in United States subscription to the International Monetary Fund,
of which $344 million was paid in gold and $1,031 million in non-interest-bearing notes.
Source: Department of Commerce.
209
TABLE C—73.—Major U.S. Government foreign assistance, by type and by area, total postwar
period and f seal years 1957-60
[Fiscal years, billions of dollars]
Period
Total, net
Total postwar !__
1957
1958
1959
1960
Investment in four international financial institutions 2
Total postwar !__
1957
1958
.1959
I960
Total
80.0
4.7
4.8
6.0
4.2
East
Western Near
Europe (including
(excluding Greece
and
Greece Turkey)
and
and
South
Turkey)
Asia
39.6
15
1.1
.7
4
11.1
1. 1
0.5
1
.l
.1
1.3
1.5
17.9
17
17
30
80
1
2
2
4
6
3
1.5
2
15
15
4,9
(3)
16
3
(3)
1.4
.1
1
75. 1
4 7
4 8
4.6
4. 1
39.6
15
11
.7
4
11. 1
1i
Net grants of military supplies
and services
Total postwar J
1957
1958
1959
1960
26.5
2 3
2.3
2.2
2 0
14 2
12
.8
.7
g
4.2
4
.6
.5
4
Other aid, net
Total postwar l
1957
1958
1959
I960
48 6
2 4
2.5
2 4
2.1
25 4
3
.4
6.9
7
.7
.9
1.1
15
-.3
16 9
.3
2
.1
1
12 1
-.2
.6
.6
.l
7 8
-.3
.2
-.1
— 4
(3)
(3)
.6
.3
—.1
5
1
1
1
2
1.3
1.5
(3)
34.0
1.7
1.5
1.6
1.6
2.6
.9
.3
.2
.4
4 9
14
Under assistance programs, net
Total postwar *
1957
1958
1959
1960
Net grants (less conversions)
Total postwar *
1957
1958
1959
1960
Net credits (including conversions)
Total postwar *
1957
1958
1959
1960
Other assistance (through
net accumulation of foreign currency claims)
*
Total postwar l
1957
1958
1959
I960
_.-
InternaFar East American tional organizaand
Repub- tions
and
Pacific
lics
unspecified areas
Other
Africa
4 3
.3
3
.5
.4
(3)
14
.1
.2
3
1.2
.4
.2
.2
.3
17.9
17
17
1.5
7.2
7
8
.8
7
(3)
(3)
(«)
(3)
(3)
.5
10 6
1i
.1
.1
.2
.9
.7
.7
2
96
.1
1
3
8
1
.1
(3)
(3)
(3)
(3)
5
1
1
1
(3)
(3)
(3)
(3)
(»)
(3)
.3
.2
(»)
(3)
28
.l
8
22
.l
.l
.l
1
2
2
2
1
1
1
(3)
15
2
.1
(3)
3
(3)
(3)
2
.3
6
.2
.5
1
(3)
(3)
1
2
2
2
25
.8
.8
.7
.7
(3)
31
2
4
.6
3
15
(3)
(3)
30
(3)
1
4
(3)
(3)
(3)
(3)
2
2
.1
.l
1
1
(3)
(3)
12 Fiscal years 1946-60.
Inter-American Development Bank, International Bank for Reconstruction and Development, International Finance Corporation, and International Monetary Fund.
s Less than $50 million.
< Other assistance (net) represents the transfer of United States farm products in exchange for foreign
currencies, less the U.S. Government's disbursements of the currencies as grants, credit, or for purchases.
Source: Department of Commerce.
210
TABLE G—74.—United States merchandise exports and imports, by economic category, 194Q and
1955-60
[Millions of dollars]
1949
Category
Domestic exports : Total 1
1955
1956
1957
JanuarySeptember
1958
1959
1959
1960
_ 11, 789
14, 165
17, 183
19, 316
16, 185
16, 156
11,861
14, 260
3,578
8,211
3,198
10, 967
4,170
13, 013
4,506
14, 810
3,854
12, 331
3,951
12, 205
2,765
9,096
3,404
10, 856
2,504
2,259
48
197
2,285
2,014
44
227
2,996
2,708
42
246
3,030
2,704
42
284
2, 833
2,517
38
278
3,080
2,751
44
285
2,270
2,027
30
213
2,444
2,210
29
205
Industrial supplies and materials
Cotton, tobacco, and other agricultural -. _Nonagricultural industrial materials
4, 850
6,068
7,361
8,630
6,418
6,161
4,449
5,812
1,319
1,184
1,462
1,802
1,337
1,200
738
1,192
3,531
4,884
5,899
6,828
5,081
4,961
3,711
4,620
Capital equipment
Machinery and related items
Commercial t r a n s p o r t a t i o n
equipment
Special category 2
3,379
2,289
4,242
2,818
5, 242
3,523
5,906
3,986
5,255
3,590
5,260
3,599
3,915
2,691
4,695
2,966
926
164
1,213
211
1,470
249
1,643
111
1,427
238
1,371
290
1,015
209
1,391
338
851
1,247
1,274
1,287
1,243
1,255
925
938
463
436
400
302
371
12, 982 3 12, 834
15,212
11, 250
11,174
6,588
1,612
8,026
1,532
5,880
1,146
5,832
1,125
Agricultural
Nonagricultural
Food and drugs
Agricultural foodstuffs
Nonagricultural foodstuffs
Drugs and medicinals
_..
Consumer goods, nonfood
Government military sales and unclassified
205
323
310
General imports: Total
6,622
11, 384
12,615
Industrial supplies and materials
Petroleum and products
Newsprint and paper base
stocks
Materials associated with nondurable goods output
Selected building materials (excluding metals)
All other industrial supplies and
materials (associated mainly
with durable goods output)
3,727
485
6,522
1,034
7,299
1,282
7,201
1,534
Food and beverages
670
984
1,093
1,032
989
1,087
793
814
991
1,275
1,321
1,301
1,163
1,549
1,162
1,158
143
493
487
407
435
603
459
425
1,438
2,736
3,116
2,927
2,389
3,255
2,320
2,310
2,004
3,018
3,086
3,175
3,354
3,362
2,602
2,424
Materials associated with farm production
286
350
365
380
366
369
283
272
Consumer goods, nonfood
410
1,064
1,260
1,524
1,701
2,425
1,731
1,860
Capital equipment (including agricultural machinery)
107
256
368
412
481
614
447
466
88
174
237
290
377
416
307
320
All other and unclassified
1 Excludes military aid shipments of supplies and equipment under the Mutual Security Program,
1955-60;
in 1949, excludes military shipments under the Greek-Turkey and the China military aid programs.
2
Excludes Government military cash sales.
3 Total adjusted to exclude $33 million of the value reported by economic category.
Source: Department of Commerce.
211
TABLE C-75.—United States merchandise exports and imports, by area, 1949 and 7955-60
[Millions of dollars]
January-October
Area
1949
1955
1956
1957
1958
1959
1959
1960
Exports (including reexports) :
Total*
11, 560
13, 838
16, 901
18, 868
15, 823
15, 779
12, 918
15, 458
Canada
Other Western Hemisphere..
Western Europe
Other Europe
Asia
Oceania
Africa
1,928
2,820
3,980
65
1,997
176
594
3,235
3,403
4,187
11
2,121
270
612
4,016
3,993
5,173
17
2,781
245
677
3,913
4,830
5,697
91
3,375
280
683
3,422
4,318
4,466
117
2,648
243
610
3,727
3,744
4,488
96
2,729
322
673
3,133
3,112
3, 562
81
2,213
251
566
3,116
3,135
5,118
154
2,920
385
631
6,622
11, 384
12,615
12, 982 212,834
15, 212
12, 452
12, 331
2,653
3,6C9
2,391
62
1,876
174
619
2,894
3,962
2,890
73
1,996
203
598
3, 041
4,040
4, 523
84
2,596
338
590
2,461
3,353
3, 661
73
2, 139
288
478
2,432
3,336
3,514
70
2,284
238
457
General imports: Total
Canada
Other Western Hemisphere..
Western Europe
Other Europe
Asia
Oceania
Africa
1,512
2,483
909
72
1,184
125
338
2,907
4,141
3,078
69
1, 985
216
587
1 Excludes special category items.
Total adjusted to exclude $33 million of the value reported by *
2
Source: Department of Commerce.
212
2,685
4,050
3,297
68
1,997
209
561
TABLE C-76.—Estimated gold reserves and dollar holdings of foreign countries and international
institutions, 1949 and 1956-60
[Millions of dollars; end of period]
Area and country
1949
1956
1957
1958
1959
1960
September i
Total
18, 677
32, 489
32, 565
36, 543
42, 232
45, 342
Continental Western Europe
_ _ _. _.
Austria
_
_
Belgium
France _
_
Germany
__
Italy
Netherlands
Scandinavian countries (Sweden, Norway,
Denmark, and Finland)
Switzerland
Other
6,101
92
820
713
149
564
370
14, 008
377
1,054
1,557
3,343
1,270
983
14, 683
460
1,053
944
4,113
1 533
957
17, 244
612
1,391
1,294
4,407
2 209
1,399
19, 255
630
1 279
1,980
4,640
3 118
1,634
20 408
523
1 247
2 290
6,013
2
3 015
1,660
394
2,067
932
882
2,643
1,899
980
2,813
1,830
1,121
2,853
1,958
1 119
2,991
1,864
963
2,863
1,834
United Kingdom
2,027
3,015
3,080
3,917
3,813
4,865
Canada
1,516
2,986
3,180
3,438
3,611
3 984
Latin America
Argentina
Brazil
Chile. ._
Colombia
Cuba
Mexico
Peru...
Uruguay
Venezuela
Other
3,078
418
510
101
138
463
270
82
236
517
343
4,314
370
550
138
210
514
604
119
260
1,061
488
4,544
263
457
116
215
525
569
88
236
1,556
519
4,123
210
464
140
241
452
565
96
262
1,215
478
4,016
393
479
228
288
296
587
111
242
934
458
3,754
455
461
179
242
171
500
97
245
800
604
2,008
356
1,652
3,400
1,149
2,251
2,937
716
2,221
3,251
1,095
2,156
4,002
1,566
2,436
4,268
1,986
2,282
.
Asia
Japan
Other
_
._
_
_ _
_
All other countries
International institutions
679
1,231
1,222
1,199
1,309
1,264
3,268
3,535
2,919
3,371
6,226
6,799
1
2
Preliminary.
Includes latest available figure (July 31) for gold reserves.
NOTE. Includes gold reserves and dollar holdings of all foreign countries with the exception of gold
reserves of U.S.S.R., other Eastern European countries, and Communist China, and of international institutions (International Bank for Reconstruction and Development, International Monetary Fund,
United Nations and others). Holdings of the Bank for International Settlements and the European
Payments Union/European Fund and the Tripartite Commission for Restitution of Monetary Gold
are included under "other" Continental Western Europe.
Source: Board of Governors of the Federal Reserve System.
213
TABLE C-77.—Price changes in international trade, 1955-60
[1953=100]i
18 59
1955
Area or commodity class
1956 1957 1958
1960
First
quarter
Third
quarter
First
quarter
Second Third
quar- quarter
ter
Area:
Developed areas:
Exports
Terms of trade 2
98
98
101
99
104
98
101
102
99
103
99
104
101
104
100
105
100
105
Underdeveloped areas:
Exports
Terms of trade 2
102
105
101
102
101
98
97
98
94
97
93
96
95
97
95
96
Q4
95
Latin America:
Exports
Terms of trade 2
99
103
99
99
96
94
90
90
85
86
83
84
85
85
84
84
84
84
Latin America excluding petroleum:
Exports
.
-. 97
101
Terms of trade 2
97
98
94
91
85
85
79
80
79
80
80
80
80
79
79
79
-
Commodity class: 3
Manufactured goods
Nonferrous base metals
99
119
103
123
106
100
106
90
106
98
106
98
109
105
109
104
109
102
Primary commodities' Total
Excluding crude petroleum
100
99
101
100
102
101
96
94
92
91
94
93
94
94
93
93
93
92
Foodstuffs
Coffee, tea, cocoa
Cereals
96
103
87
97
100
86
98
97
83
94
94
82
89
81
81
89
80
79
87
76
79
86
75
78
89
77
78
Other agricultural commodities
Pats oils oilseeds
Textiles
Wool
102
92
101
99
90
94
92
87
101
95
95
86
98
93
93
93
Minerals
Metal ores
102
103
109
110
97
98
78
69
89
99
70
62
95
94
77
79
81
77
82
77
77
69
114
107
108
100
105
99
102
99
102
101
101
101
101
101
98
99
1 Data shown for area groups and for manufactured goods are unit value indexes. All others are price
indexes.
2
Terms of trade indexes are unit value indexes of exports divided by unit value indexes of imports.
* Manufactured goods indexes are for exports. Primary commodities indexes are for exports and imports
combined.
NOTE.—Data exclude trade of Soviet area and Communist China.
Source: United Nations.
214
U.S. GOVERNMENT PRINTING OFFICE: 1961
0—576899
@FedFRASER