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Bulletin No. 1384

ECONOMIC FORCES
In The UNITED STATES

In Facts and Figures
• Its People
• Its Labor Force
• Its Economy

7TH EDITION
SEPTEMBER 1963

UNITED STATES DEPARTMENT OF LABOR
W. Willard Wirtz, Secretary
BUREAU OF LABOR STATISTICS
Ewan Clague, Commissioner

Economic Forces
in the United States

In Facts and Figures
Its People
Its Labor Force
Its Economy

Bulletin No. 1384
September 1963

UNITED STATES DEPARTMENT OF LABOR
W. Willard Wirtz, Secretary
BUREAU OF LABOR STATISTICS
Ewan Clague, Com m issioner

For sale by the Superintendent o f Documents, U.S. Government Printing Office
Washington, D.C., 20402 - Price 40 cents

Preface
This book is intended as an introduction to the American economy. It
aims to acquaint foreign citizens with economic life in the United States and
to serve as a starting point for further study. It attempts to inform, not to
influence.
Topics were suggested in great measure by participants in technical, cul­
tural, and educational exchange programs sponsored by governmental and
private efforts during recent years.
This seventh edition was prepared by Elenor Gould Murphy, under the
supervision o f Lloyd A. Prochnow, in the Bureau’s Division o f Foreign
Labor Conditions, under the general supervision o f William C. Shelton, Chief.

Contents
Page

Explanatory notes___________________________________________________________________________
Some important dates in U.S. history____________________________________________
Geography__________________________________________________________________________________
Geographic features_____________________________________________________________________
Population__________________________________________________________________________________
Total population______ _________________________________________________________________
Urban and rural population_____________________________________________________________
Mobility of the population______________________________________________________________
Population by race______________________________________________________________________
Sources of population increase___________________________________________________________
Labor force__________________________________________________________________________________
Number in the labor force_______________________________________________________________
Labor force participation________________________________________________________________
Unemployment rate_____________________________________________________________________
Duration of unemployment______________________________________________________________
Hours of work__________________________________________________________________________
Industry distribution of the nonagricultural working force-----------------------------------------------Occupational skills______________________________________________________________________
Income______________________________________________________________________________________
Changes in income distribution__________________________________________________________
Sources of income of persons age 65 or over______________________________________________
Gross, net, and real weekly earnings of factory workers__________________________________
Consumption________________________________________________________________________________
Food consumption______________________________________________________________________
Housing________________________________________________________________________________
Automobiles_ _________________________________________________________________________
_
Worktime required to buy food and other articles________________________________________
Consumer credit________
Output______________________________________________________________________________________
Disposition of the national output_______________________________________________________
Productivity____________________________________________________________________________
Electric energy__________________________________________________________________________
Transportation__________________________________________________________________________
Agriculture__________________________________________________________________________________
Farms__________________________________________________________________________________
Farms by value of sales_________________________________________________________________
Persons supported from production by one farm worker__________________________________
Farm employment______________________________________________________________________
^ Income per farm__________________________________________________________
Foreign trade and foreign aid________________________________________________________________
Foreign trade by commodity____________________________________________________________
Foreign trade by continent___________________________________________ ; __________________
_
Extent of U.S. dependence on imported raw materials____________________________________
Private investment abroad________________________________________
U.S. tariffs and trade agreements________________________________________________________
Foreign aid by the U.S. Government_____________________________________________________
Government income security programs_______________________________________________________
Government social insurance and assistance programs_________
Wage and hour legislation_______________________________________________________________
Employment act of 1946________________________________________________________________

iv

vii
viii
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4
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7
7
8
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9
9
9
10
10
11
12
14
14
15
15
17
17
17
19
19
20
23
23
23
27
27
28
28
28
28
28
29
30
30
30
30
30
32
34
35
35
39
40

Contents— Continued
Page

Employer-employee relationships____________
The National Labor Relations A ct_______________________________________________________
Employee dismissal--------------------------------------------------------------------------------------------------------Trade unions------------------------------------------------------------------------------------------------------------------Work stoppages--------------Mediation, conciliation, and arbitration--------------------------------------Private supplementary wage and personnel practices-------------------------------------------------------Private pension and disability retirement plans__________________________________________
Government--------------------------------------------------------------------------------------------------------------------------Government receipts____________________________________________________________________
Government expenditures-----------------------------------------------------------------------------------------------Federal income and estate taxes--------------------------------------------------------------------------------------Federal, State, and local governments----------------------------------------------How the Federal Government is organized_______________________________________________
Women workers--------------------------------------------------------------------------------------------------------------------Negroes in the economy of the United States-------------------------------------------------------------------------Population---------------------------------------------------------------------------------------------------------------------Migration---------------------------------------------------------------Labor force--------------------------------------------------------------------------------------------------------------------Unemployment--------------------------------------------------------------------------------------------------------------Occupational grouping----------------------------------------------------------------------------------------------------Wage and salary income-------------------------------------------------------------------------------------------------Government employment________________________________________________________________
Cooperatives-------------------------------------------------------------------------------------------------------------------------Metric equivalents of United States measures------------------------------------------------------------------------Tables:
1. Area and population, 1960---------------------------------------------------2. Population, selected years, 1790-1962-------------------------------------------------------------------------3. Urban and rural population, selected years, 1790-1960------------------------------------------------4. M obility: Percent of white or nonwhite population migrating between States, selected
periods, 1935 to 1960---------------------------------------------------------------------------- - ---------------5. Estimated unemployment, selected years, 1900-62------------------------------------------------------6. Employees in nonagricultural establishments by industry division, selected years______
7. Distribution of employed civilian workers by selected occupational groups, 1940, 1950,
and 1960______
8. Average personal income per family and unattached individual, before and after Federal
individual income tax, selected years, 1929-61---------------------------------------------------------9. Percent of total disposable income received by two groups of income receivers, selected
years, 1914-52--------------------------------------------------------------------------------------------------------10. Estimated percent of persons age 65 and over with money income from employment or
public programs, June 1961-----------------------------11. Trend of average weekly earnings of production workers in manufacturing industries,
1939-62_____ ___________ - .............................. - ..........- ...................... - -------- -------------------12. Estimated worktime required to buy food and other articles, September 1962................
13. Gross national product or expenditure in constant dollars, 1929-62-----------------------------14. Mileage and operation of transportation media, 1960---------------------------------------------------15. Number of farms, annual average farm employment, and average workers per farm,
1910-62..................
16. Farm income per farm and per farm resident, 1929-62-------------------------------------------------17. U.S. Government net foreign grants and long- and short-term credits, 1945-62________
18. Chief government social insurance programs as of January 1, 1963------------------------------19. Government receipts, 1962-------20. Direct general expenditures, by function and level of government, 1962________________
21. Percent of the civilian population in the labor force by color, age, and sex, annual aver­
ages, 1951 and 1962.............................................................— — -------- ----------------------- -

41
41
41
42
42
42
43
43
44
44
44
44
46
48
49
51
51
51
51
51
52
53
53
55
57

1
4
7
7
9
10
12
15
15
15
16
21
23
27
29
29
34
36
44
45
52

V

Contents— Continued
Tables— Continued
22. Unemployed as percent of civilian labor force, by age, annual average, 1962___________
23. Distribution of employed persons, by major occupational group, color, and sex, April
1940 and April 1962------------------------------------------------- ----------------------------------------------24. Non white employment as percent of total employment in each major occupational
group, by sex, April 1940 and April 1962___________________________________________
25. Median wage and salary incomes of white and nonwhite persons, 1939-60_______ _____
26. Consumer cooperatives, by type of association, 1961---------------------------------------------------Maps and charts:
Regions of the United States------------------------------------------------------------------------------------------United States and other countries----------------------------------------------------------------------------------United States and other countries— Confined------------------------------------------------------------------Urban and rural population--------------------------------------------------------------------------------------------Population density, by counties: 1960-----------------------------------------------------------------------------Center of population for conterminous United States, 1790-1960-------------------------------------Population by race--------------------------------------------------------------------------------------------Average length of life______________________________________________________________
Amount of population increase---------------------------------------------------------------------------------------Population and labor force---------------------------------------------------------------------------------------------Unemployment as percent of civilian labor force--------------------------------------------------------------Standard hours of work per week_______________________________________________________
Working force of the United States---------------------------------------------------------------------------------Trend of earnings in manufacturing and consumer price index-----------------------------------------Gross real earnings and average hours worked per week__________________________________
Income per family after taxes-----------------------------------------------------------------------------------------How worker families spend their incomes, 1960---------------------------------------------------------------Consumer price index for wage-earner and clerical-worker families in U.S. cities__________
Household equipment and automobiles in American homes_______________________________
Minutes of factory worker’s time required to buy certain items, September 1962__________
Gross national product in 1954 dollars___________________________________________________
Fuel consumed per production worker___________________________________________________
Production of electric energy____________________________________________________________
Foreign trade, by economic class, United States, 1911-1961______________________________
Organization of Federal Government-------------------------------------------------------------------------------

52
52
53
53
56

x
2
3
4
5
6
7
7
8
10
11
11
12
14
14
14
17
18
19
20
24
25
26
31
47

Explanatory N otes
Statistics cover the 50 States, and include the
District o f Columbia, unless otherwise noted.
A billion, in United States usage, is one thousand
million (1,000,000,000).
The term labor force, as used by U.S. Govern­
ment agencies, includes all persons age 14 years
and over who work on their own account or in the
employ of others—that is, employers, selfemployed persons, salaried employees, wage
earners, and unpaid family workers who work 15
hours or more a week at a family farm or busi­
ness— as well as unemployed persons seeking work,
and military personnel. “ Labor force” corre­
sponds roughly to the term “ economically active
population” used in some countries.
In the United States, the term employees refers
to persons in the employ of others—that is, either
wage or salaried workers.

Estimates
Statistics are widely used in the United States
by management, labor, government, and the public
generally. The demand by these groups for
prompt current statistics has led to the use of
sampling techniques in the compilation of many
series, and modern methods of sampling have
greatly improved the accuracy and speed of many
surveys and reduced their cost and the burden on
respondents. Sampling is used by the Federal
Government, for example, to determine month-to-

month changes in consumer and wholesale prices
and employment, to forecast conditions and yield
of crops and to estimate family household expendi­
tures and savings. Sampling is especially useful
for measuring changes that have taken place since
the last complete census o f the subject.
Unemployment data, for example (as estimated
each month by the Bureau of Labor Statistics),
are based on a sample of about 35,000 households
in 357 areas throughout the country. Current
estimates o f employment, hours, and earnings are
calculated by the Bureau of Labor Statistics from
data obtained from a sample o f about 180,000 nonagricultural establishments in all parts of the
United States. Detailed explanations of the sur­
vey procedures and estimating methods used by
Government agencies are alwT available and can
ays
be obtained from the issuing departments.

Preliminary Data
Text and tables contain the most recent infor­
mation available at the time of compilation. The
latest figures are, in many cases, preliminary and
subject to later revision.

Averages
Unless otherwise stated, the word average indi­
cates an arithmetic mean.

Rounding
Because o f rounding, individual figures do not,
in all cases, add exactly to the totals given.

v ii

Some Im portant D ates in U.S. H istory
1000--------------1492--------------1565--------------1607--------------1754-63_______
1775-83---------1776---------------

1788 ________
1789 -----------1793__________
1803__________
1804-06_______
1812-14_______
1823__________
1825__________
1846-48_______
1861-65_______
1862 ________
1863 ________
1867__________
1869__________
1886 ________
1887 ________
1890__________

1898__________
1903__________
1912__________
1913__________

1914 ________
1917-18_______
1920__________
1929__________

v iii

Norsemen discovered America.
Columbus discovered America.
First permanent settlement established by Spaniards at St. Augustine,
Florida.
First permanent English settlement established at Jamestown, Virginia.
French and Indian War (1756-63, Seven Years’ W ar in Europe).
American Revolution for independence from Great Britain.
Virginia Declaration of Eights declared U
A11 men are by nature free
and independent.”
Declaration o f Independence signed by the 13 colonies.
Constitution adopted.
George Washington inaugurated as first President.
Cotton gin invented.
Louisiana purchased from France (827,200 square miles, 2,142,400
square kilometers, west of Mississippi River).
Lewis and Clark expedition overland to Pacific Ocean.
W ar of 1812 with Great Britain.
Monroe Doctrine declared Western Hemisphere not open for coloniza­
tion by European powers.
Erie Canal opened.
W ar with Mexico.
Civil War (W ar Between the States).
Homestead Act granted adult settlers 160 acres (65 hectares) free land
west of the Mississippi River.
President Lincoln’s Emancipation Proclamation freed the slaves.
Alaska purchased from Russia.
First railway across the country to the Pacific Ocean completed.
American Federation o f Labor formed.
Interstate Commerce Act for Federal regulation o f railroads enacted.
Sherman Anti-Trust Law declared illegal “ every contract, combina­
tion * * * or conspiracy, in restraint of trade.”
Census Bureau noted disappearance o f any definite frontier line of
settlement.
Hawaii joined the United States.
War with Spain.
First successful airplane flight by Orville Wright.
New Mexico and Arizona admitted as 47th and 48th States, respectively.
Income Tax (16th) Amendment to the Constitution empowers the
Federal Government to tax incomes.
Federal Reserve Bank system established.
U.S. Department of Labor created with executive rank.
Federal Trade Commission created to promote fair competition.
Panama Canal opened.
United States participated in World W ar I.
Woman-Suffrage (19th) Amendment to Constitution ratified.
Stock market collapse heralds the economic depression of the early
1930’s.

1932 ________ Reconstruction Finance Corporation established.
1933 ________ “ New Deal” began with inauguration o f Franklin D. Roosevelt as
President.
Tennessee Valley Authority created by Congress.
1935__________ Social Security Act enacted.
Committee for Industrial Organization (CIO —later the Congress of
Industrial Organizations) formed.
National Labor Relations Act (Wagner Act) enacted.
1938__________ Fair Labor Standards Act (Federal Wage-Hour and Child-Labor
Law) enacted.
1941-45_______ United States participated in W orld W ar II.
1945 ________ First United Nations conference. Charter o f U.N. signed June 26.
1946__________ Philippines became independent, July 4.
1947 ________ Labor-Management Relations Act (Taft-Hartley Law) enacted.
Marshall Plan enacted.
1949__________ North Atlantic Defense Pact signed, April 4.
1950-53_______ Korean hostilities.
1955__________ American Federation of Labor and the Congress o f Industrial Organi­
zations merged to form the A F L -C IO .
1958 ________ U.S. put its first earth satellite into orbit, January 31.
1959 ________ Alaska and Hawaii admitted as 49th and 50th States, respectively.
1961 ________ John F. Kennedy inaugurated as President, January 20.
Alliance for Progress concept accepted.
1962 ________ Manpower Development and Training Act enacted.

ix
706-107 0 - 63 - 2

Economic Forces in the United States
Geography
The United States consists o f 50 States and the
District o f Columbia. In addition, there are a
number o f islands and territories under its juris­
diction. By its own free choice, Puerto Rico has
assumed commonwealth status with its own elected
government, while its people keep their American
citizenship. The Virgin Islands, purchased from
Denmark, has an appointed Governor and its
Senate is elected by its residents who are also
American citizens. The Canal Zone, a strip of
land 10 miles wide, is leased from the Republic
o f Panama. A number o f small islands in the
Pacific Ocean are U.S. possessions and others are
under U.S. trusteeship from the United Nations.
For purposes o f this study, the United States
data refer to the 50 States and the District o f
Columbia unless otherwise specified (table 1).
The airline distance across the 48 States is about
2,500 miles (about 4,000 kilometers). With
Alaska, the two points farthest apart are Cape
Prince o f Wales, Alaska, and Mangrove Point,
Fla., a distance o f 4,566 miles (7,347 kilometers).
From San Francisco, Calif., to Honolulu, Hawaii,
the distance is 2,392 miles (3,849 kilometers);
from Seattle, Wash., to Juneau, Alaska, 899 miles
(1,466 kilometers).
The 48-State area lies in four time zones called,
respectively, the eastern, central, mountain, and
Pacific zones. Alaska extends westward from the
T a b l e 1.

Pacific zone through three additional time zones,
ending at the international date line. The border
between the 48-State area and Canada is 3,987
miles long and the Canada-Alaska border is 1,540
miles long, a total o f 5,527 miles (8,893 kilometers).
The United States-Mexican border is 1,833 miles
(2,943 kilometers) in length.

Geographic Features
The United States is the fourth country in the
world in population and the fourth also in area.
The area o f the 48 States and the District o f
Columbia, excluding Alaska and Hawaii, is fifth
in size—about as large as Australia, but smaller
than Brazil.
For purposes o f comparison, the tabulation be­
low gives the areas and populations o f other large
countries :
Area
U.S.S.R.........................................................................
Canada.......................................................................
Mainland China........................................................
United States (50 States)...........................................
Brazil..........................................................................
United States (48 States)...........................................
Australia........................................................................

Population (1960-62 estimates)
Mainland China (1962)..............................................
India (1960).................................................................
U.S.S.R. (1960).................................................................
United States (1960) (48 States)................................

Area
Square miles

_

United States _ _________ _____________ _______ ________________________
Conterminous United States......................................................................
Alaska___ ________ ___________________
___ ________________ ___
Hawaii..........................................................................................................
Commonwealth of Puerto Rico........................................................................
Island possessions____________________________________________________
Other outlying areas______________________
__ ___________ ____ ____
Canal Zone (leased)....................................................................................
Com Islands Ceased)....................................... ...........................................
Trust Territory of the Pacific Islands.......................................................
Population abroad at time of 1960 census
_ ____ _
3 Land area 2,971,494 square miles.
3 Population per unit of land and water area.

Number
700,000,000
432,567,000
214,400,000
179,323,175

A r e a a n d P o p u l a t io n , 1960
Population

Area (land and water)

All areas, total

Square
Square
miles
kilometers
8,649,512 22,402,200
3,851,812
9,976,177
3,691,512
9,561,000
3,615,211
9,363,394
3,287,204
8,513,858
3,022,387
7,827,982
2,974,583 7,704,157

3,628,150
i 3,615,211
3,022,387
586,400
6,424
3,435
463
9,041
553
4
38,484

Square kilo­
meters

Total

9,396,826
9,363,394
7,827,982
1,518,776
16,636
8,897
1,143
23,392
1,432
10
21,950

Per square
kilometer of
land area

183,285,009
179,323,175
178,464,236
226,167
632,772
2,349,544
123,151
114,718
42,122
1,872
770,724
U , 374,421

Per square
miles of land
area

50.5
60.1
0.4
98.6
686.8
3266.0

RL5
23.2
0.2
30.1
249.3
2 107.7

116.4
2 468.0
102.9

56.3
2 187.2
39.7

3 Land area 687 square miles.
* Chiefly Armed Forces and families.

l

UNITED STATES AND OTHER COUNTRIES

Source: M o p s from New World H orizon s, by Chester H. Lawrence.

UNITED STATES AND OTHER COUNTRIES

UNITED STATES AND U S S R

WESTERN
HEMISPHERE

EASTERN UNITED STATES

BU R M A , M ALA YA,
THAILAN D, INDO-CHINA
Source: M o ps, with exception of Western Hem isphere,from
New W orld H o ri7 o n si by Chester H. Lowrence.

Population
The population o f the United States is increas­
ing fairly fast, as the number o f marriages and
births continue to rise and the span o f life
lengthens. There are estimated to be nearly eight
times as many Americans today as there were in
1850. As the density map shows (p. 5), the popu­
lation is not evenly spread across the country; the
continual moving about seems generally to be ef­
fecting a more equitable distribution o f population
in comparison with resources. People also con­
tinue to move from country to city.

Total Population
The number o f people in the United States has
risen much faster since World W ar I I than earlier
estimates had indicated, with an increase o f be­
tween 2.5 and 3 million each year since 1950. The
United States population has in fact increased at
a faster rate over the past 50 years, and is still in­
creasing at a faster rate, than the world popula­
tion. By January 1963, more than 187 million
people were estimated to be in the United States,
an average increase o f about 1.8 percent a year
from 1950. (See table 2.) Forecasts for the year
1980 range from 245 million to 259 million.
Population densities differ, o f course, from State
to State. For example, the 1960 census figures
show Rhode Island with about 812 persons to the
square mile, and New Jersey with 800 persons per
T able 2.

P opulation , Selected Y ears , 1 7 9 0 -1 9 6 2
Year

1790............................................................
1810...........................................................
1830................................ ...........................
1850........................................ ...................
1870............................................................
1890............................................................
1900............................................................
1910...........................................................
1930............................... ........................
1950................................... ........................
1960............................................................
1961.............................................................
1962............................................................
1963 .........................................................

Number
(millions)

4
7
13
23
40
63
76
92
123
151
179
185
187
188

Average percent
increase per year
over preceding
decennial census

3.6
3.3
3.6
2.7
2.6
2.1
2.1
1.6
1.4
1.8

Sources : 1961, 1962, and 1963 data are estimates as of January 1 of each
year. The remainder are from decennial censuses. For data from the
decennial censuses for intervening years, see U.S. Department of Commerce,
Bureau of the Census, Statistical Abstract of the United States, 1962, p. 5.

4

square mile. A t the low end o f the scale, Alaska
had less than one—actually only one person to
every 2y2 square miles.
And, o f course, the density o f population in
cities is considerably greater than for States. In
1960, the density o f New York City was 25,000
per square mile (for Manhattan Borough within
the city, it was 77,000). For Chicago in 1960, the
density was 17,000 per square mile, and for Detroit,
St. Louis, and Washington, D.C., 12,000 each.
The population density is highest, and the
majority o f the large cities and the greatest con­
centration o f industry are found, in the northeastern part o f the country, east o f the Mississippi
River and north o f the Ohio and the Potomac
Rivers. The center o f population o f the conter­
minous 1 United States is now in southern Illinois;
but the geographic center is about 575 miles (925
kilometers) farther west, in north central Kansas.
When the new States o f Alaska and Hawaii are
taken into account, the geographic center is pulled
more than 400 miles north and west, into western
South Dakota; the center o f population, however,
is affected but little.
1 R efers to the 48 States and the D istrict o f Columbia.

POPULATION DENSITY, BY COUNTIES: 1960

MILES

0_____________200

I1' , i
I

100-249.9

MILES
0

100

10-24.9
1 25-49.9

200

250 OR MORE

SOURCE:

U S. DEPARTMENT OF COMMERCE,
BUREAU OF THE CENSUS.

CENTER OF POPULATION FOR CONTERMINOUS UNITED STATES
1790-1960

Population

Density, 1960
United States (60-State area)...........................................
State of highest density: Rhbde Island....................
State of lowest density:
Alaska.....................................................
Nevada..................... .........................................
United States (48-State area)...........................................
France (1968, for comparison).........................................

Per
Per
square square
mile
kilometer
of land of land
area
area
60.5
19.5
812.4
313.7
.4
2.6
60.1
214.0

MILLIONS

POPULATION

.2
1.0
23.2
82.6

Urban and Rural Population
In 1790, the United States was 95 percent rural;
by 1960, it was 70 percent urban. In 1960, about
28 percent o f the people lived in cities o f 100,000
or more population, and another 35 percent in
smaller cities. Some lived in thickly settled areas
close to cities, some in scattered towns or villages
too small to be called urban. But about 44 mil­
lion persons, about 25 percent o f the population,
still lived in the country outside any town or vil­
lage. (See table 3.)
T able

3.

Urban

and R ural P opulation ,
Y ears , 1790-1960

Percent

Number (thousands)

Year

Total
1790.......................
1850.......................
1900.......................
1950.......................
1960.......................

Urban

3,930
23,192
75,996
160,697
179,323

202
3,644
30,160
88,927
113,066

Rural
3,728
19,648
45,835
61,770
66,267

Selected

Total

Urban

100.0
100.0
100.0
100.0
100.0

5.1
15.3
39.7
59.0
63.0

Rural
94.9
84.7
60.3
41.0
37.0

Source : U.S. Department of Commerce, Bureau of the Census, U.S.
Summary PC (/). 1960.

Mobility of the Population

*NONWHITC#CURVE B EFO RE 1890 R EFER S TO NEOROES ONLY.

The longer moves have recently been somewhat
more frequent among whites. Between 1940 and
1947, however, as shown in table 4, great numbers
o f non whites moved to a different State.

Population by Race
During the last century, the white population,
nine-tenths o f the total, has increased relatively
faster than has the Negro population. In recent
years, however, Negroes have gained slightly
faster, and by 1960, they constituted nearly 11
percent o f the total. (F or more information, see
chapter on Negroes in the Economy o f the United
States, pp. 51-54.)
Nonwhites other than Negroes are few. The
American Indian has increased in number in re-

Every year many people in the United States,
especially young people, move from one place to
another. Between March 1960 and March 1961,
approximately 35.5 million people, about a fifth o f
the whole population, moved from one house or
apartment to another.
Over 5.5 million of them (about 3 percent o f
the population) moved from one State to another.
T able 4. M o b il it y : P ercent of W hite or Non w hite
P opulation M igrating B etween S tates . Selected
P eriods, 1935-60
Whites
1935-40______
. . . . . ______________
....
1940-47________________________________________
1955-00. . __________
____________________

Nonwhites

5.5
9.7
9.2

3.9
14.1
6.1

S ource: U.S. Department of Commerce, Bureau of the Census.

7
706-107 0

-

63-3

28,990

AMOUNT OF POPULATION INCREASE
(In Thousands)

17,064

PERCENT FROM NET IMMIGRATION

PERCENT FROM NATURAL INCREASE

1910-20
s o u r c e : u. s . d e p a r t m e n t

cent years, reaching 524,000 in 1960. It has been
estimated, however, that when the first white set­
tlers came, there were as many as 845,000 Indians
living in what is now the United States. The
population o f the United States in 1960 consisted
o f the follow ing:
Number
(ithousands)

Total population______________
White_______________________________
Negro ^______________________________
American Indian_____________________
Other (chieflyChinese or Japanese)___

8

Percent

179, 323
158, 832
18, 872
524
1, 095

100. 0
88. 6
10. 5
.3
.6

20-30

of c o m m e r c e

30-40
, BUREAU

40-50

50-60

of the c e n s u s .

Sources of Population Increase
The large growth in population since the Second
W orld War is attributed in part to some rise over
the preceding 20 years in immigration and to low
death rates (less than 10 per 1,000 population),
but most of the growth is due to the rise o f the
live birth rate to about 25 per 1,000 population.
The amount o f increase in each decade, together
with the percent due to immigration and that due
to natural increase (excess o f births over deaths),
is shown in the chart above.

Labor Force
Number in the Labor Force

Unemployment Rate

About 75 million persons were in the labor force
in 1962, and by 1975, this average may rise another
18 million. The labor force includes the unem­
ployed as well as the employed; it includes em­
ployers, the self-employed, and military person­
nel, as well as wage and salary workers. Unpaid
family workers are counted in the labor force if
they work 15 or more hours a week at the family
farm or business.
There is great short-run flexibility in the labor
force. For example, some 8 million “extra” peo­
ple went to work during W orld W ar I I ; and every
year, millions of persons enter and leave the labor
force, with the seasons and school vacations.
Housewives, retired persons, and students some­
times want only part-time work, and they tend
to shift from job to job and to enter or leave the
labor market often. Several million workers are
always on the move, seeking better jobs in plants
or areas o f greater opportunity.

Some unemployment is unavoidable in a free
and growing industrial economy in a free society.
A hundred years ago, when the United States was
primarily an agricultural country, unemployment,
in present day terms, scarcely existed. As indus­
try grew in importance, the level of living rose,
but an ever greater proportion o f the work force
was exposed to the risk of unemployment. Some
industries grow rapidly, others slowly; some com­
munities, as well as industries, decline econom­
ically. Thus unemployment develops, but after
a time unemployed workers normally are absorbed
elsewhere. ( See table 5.)
The worker temporarily between jobs, even
though he may have left his job voluntarily,
and also the youth seeking his first job, are counted
as unemployed. Thus some “ frictional” un­
employment always exists. During the depres­
sion o f the 1930’s, however, as many as 25 percent
of the labor force were unemployed; in 1958, the
year of sharpest recession since then, the un­
employed averaged slightly less than 7 percent o f
the civilian labor force. (The purchasing power
of many unemployed workers is partially main­
tained by unemployment insurance, and some help
is frequently available where needed from govern­
ment sources. See p. 35 for further information.)

Labor Force Participation
Nearly all American men are in the labor force
throughout a large part o f their lives. Women
and youths work also, but intermittently, so that
at any time only a minority are in the labor force.
The working life o f men increased some 10
years between 1900 and 1955, while their total
life span rose about 20 years. Men enter the la­
bor force at a later age than formerly, they re­
main longer, and they live more years after
retirement.
In 1900, most men did not retire at all. The
population was largely rural, and even today the
older farmer does not necessarily retire. In 1960,
two-thirds o f the men still in the labor force at
age 65 or older were in agriculture, service work,
or trade.
Many women work before marriage. They tend
to drop out o f the labor market during their twen­
ties, but many re-enter in their late thirties, as
children grow older and home responsibilities di­
minish. Less than half o f the women o f any age
hold full-time permanent jobs; many work parttime or intermittently.

T able 5.

Year

1900.........
1905.........
19 10......
1915.........
1920.........
1925.........
1930.........
1933.........
1935.........
1940..
1944.........
1945.........
1947.........
1949.........

E stimated U nemployment , Selected Y ears,
1900-621
Average
number
(millions)
1.4
1.0
2.2
3.8
1.7
1.8
4.3
12.8
10.6
8.1
.7
1.0
2.4
3.7

Percent of
civilian
labor force
5.0
3.1
5.9
9.7
4.0
4.0
8.9
24.9
20.1
14.6
1.2
1.9
3.9
5.9

Year

1950.........
1951.........
1952.........
1953.........
1954.........
1955.........
1956.........
1957.........
1958.........
1959.........
1960.........
1961.........
1962.........

Average
number
(millions)
3.4
2.1
1.9
1.9
3.6
2.9
2.8
2.9
4.7
3.8
3.9
4.8
4.0

Percent of
civilian
labor force
5.3
3.3
3.1
2.9
5.6
4.4
4.2
4.3
6.8
5.5
5.6
6.7
5.6

1 The “ unemployed” are persons who were without work, and were actively
seeking work, during the given week. Unemployment is customarily stated
as a percent of the labor force—that is, of all persons working or seeking work
during the week of the monthly labor force survey. (The 1947-62 figures are
based on revised definitions and are not entirely comparable with estimates
for previous years.)
Source : U.S. Department of Commerce, Bureau of the Census; U.S.
Department of Labor, Bureau of Labor Statistics; and before 1940, private
estimates published by U.S. Department of Commerce, Census Bureau, in
Historical Statistics of the United States, Colonial Times to 1957, p. 73.

9

Hours of Work
POPULATION AND LABOR FORCE
A n n u al A v e rag e ,1961

Under A ge: 14
30%

Not in
Labor Force

^

^

4

Sitl1' *, ,ir e d - ^ c;
5
Students A ge d
4 and Over:
5%
Housewives*.

In the last hundred years or so, hours o f work
have been greatly reduced. From about 70 hours
weekly in 1850, the average workweek had dropped
to 41 hours by 1961. Outside of agriculture, the
drop was from 66 hours—the equivalent o f 11
hours a day, 6 days a week—to 40.1 hours— about
8 hours a day, 5 days a week.2
The farm workweek, which lengthens in summer
and shortens in winter, averaged some 44.8 hours
a week in 1961. As in nonagricultural work, the
reduction over the years has been sharp. (Selfemployed farmers are included in the estimates.)

19%

Average hours
per week, 1961

Armed Forces:
1'/2%

Civilians Employed
and Unemployed:

In
Labor Force

39

V2

40. 5
40.1
44. 8

%

SOURCE. U.S. DEPARTMENT OF LABOR,
BUREAU OF LABOR STATISTICS.

Duration of Unemployment
The seriousness of unemployment is indicated
not only by numbers unemployed but also by the
length o f time people are out of work. In 1940,
two-thirds o f the unemployed were out o f work
4 months or more. During World War II, such
unemployment as existed was largely frictional;
a great majority of the unemployed had been seek­
ing work for only a month or less. About 43
percent o f the persons unemployed in January
1963 had been unemployed for less than 5 weeks;
about 25 percent had been out of work for 15 weeks
or more. During the years 1959 through 1962,
the annual average period of unemployment has
varied between 3 and 4 months.
8 The standard workweek may differ from the average. The
standard is now 40 hours in much o f industry (p. 39 fo r note on
the la w ), but the hours worked during a week average longer
when much overtim e is worked, and shorter when part-tim e work,
labor turnover, or absenteeism is common. A ccording to one esti­
mate, the standard hours in m anufacturing industries averaged
56.8 per week in 1909 and) 50.4 in 1924. Paul H. Douglas, Real
Wages in the United States, 1890-1926 (B oston, Houghton M if­
flin Co., 1930), p. 116. Yet the average hours worked (o r paid
fo r ) are estimated to have been 51 and 43.7 in those years.

10

All industries_________________________
N onagricultural___________________________
Agricultural _______________________________

A t the beginning o f the century, the prevailing
workweek in manufacturing was 60 hours (10
hours per day for 6 days). Some industries, no­
tably steel, had a longer working week (66 hours
in 1913), and premium pay for overtime was ex­
ceptional. Thus, in 1900, a manufacturing em­
ployee who was steadily employed worked about
3,000 hours in a year. By 1962, such an employee
enjoyed a paid vacation, and actually worked only
about 2,000 hours a year. With greatly increased
output per man-hour, so much more is produced
in an hour’s working time that workers have gained
more purchasing power at the same time that they
have achieved greater leisure.
T able 6.

E mployees in
ments , by I ndustry

N onagricultural E stablish ­
D ivision , Selected Y ears

[Thousands]
1920

Total..............................

1930

1940

1950

1960

June
1963

27,350 29,424 32,376 45,222 54,370 57,609

Mining..................................... 1,239
Contract con struction........... .
848
Manufacturing........................ 10,658
Transportation and public
utilities................................
3,998
Wholesale and retail trade... 4,467
Finance, insurance, and real
estate............. .................... . 1,175
Service and miscellaneous___ 2,362
Government............................ 2,603

650
712
1,009
925
901
1,372 1,294 2,333 2,885 3,232
9,562 10,985 15,241 16,796 17, 111
3,685
5,797

3,038
6,750

4,034 4.004 3,954
9,386 11,391 11,848

1,475
3,376
3,148

1,502
3,681
4,202

1,919
5,382
6,026

2,669
7,392
8,520

2,885
8,423
9,506

N ote : Excludes proprietors, self-employed persons, unpaid family
workers, domestic servants, and personnel of Armed Forces. “ Employees"
include both wage and salaried workers.
Sou r c e :

U.S. Department of Labor, Bureau of Labor Statistics.

Industry Distribution of the Nonagricultural
Working Force
Employment has continually shifted away from
agriculture into manufacturing, and even more
into trade, the professions, government, and other
services. In 1870, about three-fourths of the gain­
fully occupied persons were producing food and
clothing, housing, and other manufactured goods;
by 1960, less than half were so occupied. A l­
though the population increased nearly 4.5 times
over, and the working force 5 times during this
period, in 1960, the immensely greater agricultural;
production required 5.7 million farm workers,
fewer than in 1870 or in 1900. Manufacturing
and construction meanwhile employed 7 times as
many persons in 1960 as in 1870. Trade and serv­

ices o f various kinds employed 12 times as many.
The number in the working force in 1870 arid in
1960 by selected industry groups, and the percent
o f increase over this period are shown in the
following tabulation:

Industry group
Total work force....... ..................
Extractive industries...........................
Manufacturing and construction------Trade and service......... ...................—
Not specified........................ ................

Number (thousands)
1870
I960
64,639
12,925
5,004
6,687
2,999
21,329
35,698
3,085
154
2,608

Percent
increase,
1870-1960
400
—
25
611
1,058
1,594

Source : Harold Barger, Distribution’s Place in the American Economy
Since 1869 (Princeton, N.J., Princeton University Press, 1955). (National
Bureau of Economic Research General Series No. 58, p. 4.) Census data
for 1870-1950 have been rearranged by Mr. Barger to make them as nearly
comparable as possible from one date to another. Similarly, census data
for 1960 were rearranged by the Census Bureau and are believed to be com­
parable to Mr. Barger's series for 1870-1950. Accordingly, totals do not
correspond with figures given elsewhere in this study.

li

W O R K IN G FORCE OF THE UNITED STATES
1870-1960
M IL L IO N S
Not Specified

4%

Production of
Services

55%

Production of
Physical Goods
41%

1870

1880

1890

1900

1910

SO U R CE: H AR O LD

1920

D istribution

of

1940

1950

1960

B A R G E R , D IS T R IB U T IO N S P L A C E IN T H E A M E R I C A N EC O N O M Y S IN CE 1869

known to have held two (or more) jobs at the same
time.)

The same general trend in growth of employ­
ment by industry is shown in greater detail in table
6. These data are based on payroll reports from
individual establishments. (Persons who worked
in more than one establishment during the report­
ing period are counted each time their names occur
on payrolls. In May 1962, approximately 2.5 mil­
lion persons in nonagricultural employment were
T able 7.

1930

E mployed C ivilian W orkers,

Occupational Skills
The trend in occupational skills (table 7) reflects
the continuing advancement in science, together
with technological and economic change. Many
by

Selected Occupational G roups, 1940, 1950,

and

1960

[Number in thousands]
1950

1940

1960

Employed civilian workers
Number

Number

Percent

Percent

Number

Percent

Total employed persons......................................................................................

45,070

100.0

56,435

100.0

64,639

100.0

White-collar workers.....................................................................................................
Professional, technical, and kindred workers......................................................
Managers, officials, and proprietors, except farms................................................
Clerical and kindred workers.......... ......................................................................
Sales workers............................................................................................................

14,676
3,579
3,633
4,382
3,081

32.9
8.0
8.1
9.8
6.9

20,819
4,921
5,036
6,954
3,907

37.4
8.8
9.0
12.5
7.0

26,588
7,232
5,409
9,306
4,639

43.3
11.8
8.8
15.1
7.5

Manual workers.......................................................................... - .................................
Craftsmen, foremen, and kindred workers............................................................
Operatives and kindred workers...........................................................................
Laborers, except farm and mine............................................................................

16,394
5,171
8,080
3,143

36.7
11.6
18.1
7.0

22,437
7,820
11,180
3,436

40.3
14.0
20.1
6.2

23,746
8,741
11,897
3,107

38.6
14.2
19.4
5.1

Service workers, including private households............................................................

5,291

11.9

5,708

10.2

7,171

11.7

Agricultural workers......................................................................................................

8,290

18.5

6,728

12.1

3,950

6.4

Occupations not reported
Sou rce:

12

_ __ _ _________________________________________

743

418

U.S. Department of Labor, Bureau of Labor Statistics, Monthly Labor Review, November

1962,

p.

1211.

3,184

o f the rapidly growing occupations are those re­
quiring more education and training. The occu­
pations in which employment is decreasing are
generally those in which wages are low.
Between 1950 and 1960, the number o f workers
holding white-collar jobs rose to 43 percent of
total employed civilian workers. As noted else­
where, all classes of agricultural workers recorded
sizable losses.
Among the highly trained professional, tech­
nical, and kindred group, notable increases were
recorded in the number o f electrical, mechanical,
and civil engineers. Reflecting economic growth
and greater demand for more and quickly avail­

able information, mechanized office procedure re­
quired many more employees in such occupations
as office machine operators, secretaries and stenog­
raphers, and cashiers. A ll kinds o f sales workers
from retail trade to manufactures’ sales represen­
tatives, to sales personnel for insurance companies
and real estate were needed to keep pace with ex­
panding national product. Employment o f many
more elementary and high school teachers reflected
the rising birth rate of the recent postwar period.
Service workers showed sizable numerical in­
creases. In part, because of technological changes,
dwindling occupations included farm laborers, and
other unskilled laborers.

13

Income
Average money earnings o f workers have risen
sharply in recent years. More important, since
earnings have risen faster than prices, an increase
in real earnings has resulted. A ll workers have
benefited, though not to the same degree.
Income studies seeking to show the trend of
incomes o f the entire population indicate that the
number o f low-income families and individuals,
although still substantial, is now relatively less
than 20 years ago. (F or farm income, see p. 29.)

Changes in Income Distribution
Average real income per person in the popula­
tion was about 61 percent higher in 1961 than in
1929 (in terms of constant dollars of 1961 value).
Average per capita disposable income in 1961
dollars was as follow s:
1929________________________________________________ $1, 228
1947_____________________ ___________________________ 1,546
1961________________________________________________ 1,979

As indicated in table 8, average family incomes
before and after Federal income taxes have risen

14

INCOM E PER FAMILY
AFTER TAXES
(in Dollars of 1961 Value)

1929

1947

_______________ _________________________ s o u r c e : s e e

1961
ta ble

8

greatly since 1929 (in terms of dollars of constant
purchasing pow er).
The number of families and individuals with
real incomes over $4,000 increased from 25 million
in 1947 to more than 39 million in 1961, after
adjustment of the income figures for difference in
the value o f the dollar. The number in the two
lower income groups declined. A large propor-

T able 8. A verage P ersonal I ncome per F a m il y and
U nattached I ndividual , B efore and A fter F ederal
I ndividual I ncome T a x , Selected Y ears , 1929-61
[In 1961 dollars]
After tax

Before tax

Year

$4,200
4,890
6,320

$4,230
5,430
7,020

1929_________________________
1047

1961_________________________

Income tax
$30
640
700

Source : U.S. Department of Commerce, Office of Business Economics,
Survey of Current Business, April 1962, p. 9.

tion o f the low-income units were single wage
earners, retired persons, students, and young wage
earners just starting work.
Upper income groups have received relatively
less o f the national income since W orld W ar I I
than before. The reasons appear to be, first, a
greater relative rise in wage and salary incomes
than in other kinds o f income, and second, a
tendency for total wages and salaries to move
upwards.
The proportions o f disposable income received
by the top 5 percent and by the lower 95 percent
o f income receivers have been estimated as shown
in table 9. Comparable data since 1952 are not
available but the current relationship is believed to
be substantially unchanged.

Sources of Income of Persons Age 65 or Over
In 1961, over 17 million Americans were age
65 and over. Nearly one-fourth of this group
were either still at work or were the non working
wives o f wage or salary earners. About 75 per­
cent o f those over 65 were receiving some income
from social insurance (table 10) or from veterans’
T able 9. P ercent of T otal D isposable I ncome R eU nattached I ndividual , B efore and A fter F ederal
Y ears, 1914-52
Year

Top 5
percent

Remaining
95 percent

32
24
35
27

68
76
65
73

1914................
1920................
1929................
1939................

Year

1947
1950.
1952

____

Top 5 Remaining
percent 95 percent
17
16
16

83
84
84

programs, whereas in 1950, only 30 percent re­
ceived such income.
In 1961, about 14 percent received public assist­
ance on proof of need and provided they met resi­
dence requirements.
About 87 percent o f the aged in the population
received some or all of their support through pub­
lic programs at Federal, State, or local levels.
Only 1 in 20 had income from employment and
had no income from any public program.

Gross, Net, and Real Weekly Earnings of
Factory Workers
As shown in table 11, the gross average weekly
earnings o f manufacturing production workers
nearly doubled during W orld W ar I I ; they de­
clined as hours were reduced toward the close o f
the war, and then resumed their rise. However,
Federal income and social security taxes, which
before the war took only a negligible share o f the
T able 10. E stimated P ercent of P ersons A ge 65 and
Over 1 W it h M oney I ncome F rom E mployment or
P ublic P rograms, J une 1961
Type of money income

Percent
of total

Total population age 66 and over...........................................

100.0

Employment, total *............ _...........................................................
Employment Mid no income from public programs.................
Employment and social insurance benefits..............................
Employment and payments under other public programs___
Social insurance (retirement and survivor) benefits, total* .........
343
4
Benefits and no earnings or veterans’ or public assistance
payments............... .................................................................
Benefits and veterans’ payments...............................................
Benefits and public assistance..................................................
Veterans’ pension or compensation, total ......................................
Veterans’ payment and no earnings or social insurance 5........
Public assistance, total
..............................................................
Public assistance and no earnings or payments under other
public programs.......................................................................
Income from sources other than employment or public programs.

23.9
6.3
15.2
3.4
72.6
46.4
6.4
4.6
11.0

1.8

14.0

4 In the 50 States, the District of Columbia, Puerto Rico, and the Virgin
Islands.
2 Includes 3,200,000 earners and an estimated 900,000 nonworking wives
of earners.
3 Includes persons with income from one or more of the following sources:
old-age, survivors, and disability insurance; railroad retirement; and govern­
ment employee retirement. Excludes persons with benefits under unem­
ployment or temporary disability insurance or workmen’s compensation
programs.
4 Includes estimated number of beneficiaries’ wives not in direct receipt
of benefits.
* Includes a small number receiving supplementary public assistance.
6 Old-age assistance recipients and persons age 66 and over receiving aid
to the blind or to the permanently and totally disabled, including a relatively
small number receiving no direct cash payment under either old-age assistance
or medical assistance for the aged, but who received publicly financed
medical care.

N ote : Disposable income is income after deduction of personal tax and
nontax payments to general government.

N ote : Since m any received income from more than one o f the sources,
the sum of the subtotal percent is more than 100.

Source : Warren J. Bilkey, “ Equality of Income Distribution and Con­
sumption Expenditures,’ ’ Review of Economics and Statistics, February 1966,
p. 81. Harvard University Press, Cambridge, Mass.

Source : U.S. Department of Health, Education, and Welfare, Social
Security Administration, “ Sources and Size of Money Income of the Aged,’ ’
Social Security Bulletin, January 1962, p. 12.

15
706-107 0

-

63-4

T able 11. T rend op A verage W eekly E arnings of
P roduction W orkers in M anufacturing I ndustries ,
1939-62

Year

Gross
average
weekly
earnings

Net spendable weekly “ Real” net spendable
earnings (gross earnings weekly earnings (net
minus social security spendable earnings in
and Federal income dollars
of
1957-59
taxes)
purchasing power)
Worker
Worker
Worker
Worker
with 3
with 3
without
without
dependents dependents dependents dependents

1939.................
1940.................
1941.................
1942.................
1943.................
1944.................
1945.................
1946.................
1947.................
1948.................
1949.................
1950.................
1951.................
1952.............. .
1953.................
1954.................
1955.................
1956.................
1957.................
1958..............
1959.................
1960.................
1961.................
1962.................

$23.64
24.96
29.48
36.68
43.07
45.70
44.20
43.32
49.17
53.12
53.88
58.32
63.34
67.16
70.47
70.49
75.70
78.78
81.59
82.71
88.26
89.72
92.34
96.56

$23.37
24.46
27.96
31.80
35.95
37.99
36.82
37.31
42.10
46.57
47.21
50.26
52.97
55.04
57.59
58.45
62.51
64.92
66.93
67.82
71.89
72.57
74.60
77.86

$23.40
24.71
29.19
36.31
41.33
43.76
42.59
42.79
47.58
52.31
52.95
56.36
60.18
62.98
65.60
65.65
69.79
72.25
74.31
75.23
79.40
80.11
82.18
85. .5
3

$48.29
50.12
54.50
55.99
59.62
61.97
58.72
54.87
54.11
55.57
56.88
59.98
58.53
59.50
61.79
62.45
67.00
68.55
68.30
67.35
70.83
70.39
71.59
73.87

$48.35
50.64
56.90
63.93
68.54
71.39
67.93
62.93
61.16
62.42
63.80
67.26
66.50
68.09
70.39
70.14
74.80
76.29
75.83
74.71
78.23
77.70
78.87
81.15

Percent rise,
1939-62.........

308

233

266

53

68

Source : U.S. Department of Labor, Bureau of Labor Statistics.

16

wage earner’s pay, increased until by 1961 they
amounted to $17.74 a week for a single man who
earned the average factory wage o f $92.34 and
$10.16 for a man o f similar earnings with a wife
and two children dependent on him.
The average earnings o f $96.56 a week, or $2.41
an hour in 1962, represented a rise since 1939 o f
308 percent in gross weekly earnings, and 309
percent in hourly earnings. In the same period,
the cost of living rose 120 percent. (See chart,
p. 14.) Thus, despite the rise in prices, and a
small decline in real earnings in 1957 and 1958,
the worker in manufacturing has obtained a con­
siderable increase in real earnings in the last 23
years.
Although real net spendable earnings in terms
of constant dollars rose more slowly than gross
or net earnings, they went up in most years. By
1962, the average factory worker with three de­
pendents could buy more goods and services for
his family than he could afford to buy at the war­
time peak, and by means o f a working week that
was more than 5 hours shorter. He could buy
63 percent more in 1962 than in 1939.

Consumption
With the increase in real earnings and in leisure
hours, described in previous chapters, have come
definite changes in the spending patterns of the
American consumer. A far wider variety o f prod­
ucts now compete for the consumer’s dollar: Some
products are old, some new, and some are improved
in quality and performance. Services, too, have
broadened with the result that the consumer has
a far wider choice in rationing his disposable in­
come in terms of his needs and desires.
Food in 1960 accounted for nearly one-fourth
o f the current expenditures of the average wageearner or clerical-worker family (33 percent in
1950; 40 percent in 1934-36). Excluding home
purchase costs, housing and home maintenance,
including such labor-saving equipment as auto­
matic washers, electric refrigerators and the like,
took almost 30 percent. Clothing accounted for
11 percent. Personal and medical care amounted
to 8 percent. Public transportation and miscel­
laneous were 3 percent. The remainder, about
25 percent, was used for the following types o f
expenditures which in many other countries are not
considered as important to a wage earner as in the
United States: Automobile purchase and opera­
tion (15 percent); entertainment, television and
radio; reading and recreational activities; and to­
bacco and alcoholic beverages.

Food Consumption
U.S. residents consumed an average o f 3,300 cal­
ories o f food per day in 1935-39, and 3,180 in
1961. A long-time trend away from starches
(notably cereals and potatoes) and an increased
use o f meat and dairy products, except butter,
is recorded. In 1961, carbohydrates supplied 47
percent o f the calories consumed; fats, 41 per­
cent; and protein, 12 percent. In 1939, the ratios
were 53, 36, and 11, respectively. Meat (exclud­
ing fat pork cuts), poultry, and fish consumed
in 1961 amounted to 182 pounds (82.6 kilos) per
capita, while fat pork cuts came to an additional
17.4 pounds (7.9 kilos) per capita. Per capita
consumption o f potatoes in 1961 was 110 pounds
(49.9 kilos) per year. Americans ate more to­
matoes than any other fresh or processed vegetable

(excluding potatoes)— a little over 59 pounds or
26.8 kilos per capita in 1961. In terms of milk
equivalent, the per capita consumption of dairy
products, except butter, was about 238 quarts (224
liters).
Americans now buy more services incorporated
in their foods than in earlier years, services which
reduce preparation time for the housewife such
as fully processed or prepared meals, more pre­
cooked hams, oranges in juice form (frozen), etc.,
and more meals in restaurants.

Housing
Two-thirds o f all families lived in separate
houses (detached) in 1960; 80 to 90 percent of the
dwelling units built in recent years have been onefaipily units. Sixty-two percent of families lived
in houses they owned or were buying on long-term
credit. More than half of all houses built are
more than 26 years old; 60 percent have five or
more rooms (not counting halls, baths, etc.).
All occupied dwelling units (thousands). .
Total (percent)....................................
Owner occupied............................
Renter occupied............................
Nonfarm dwelling units:
Average (median) monthly rental of
renter-occupied units......................
Average (median) value of owneroccupied single unit dwelling.........

I960
mo
I960
63,023 42,826 34,854
100
100 ' 100
62
44
56
56
38
45

$71

$42

$11,900 $7,400

mo
29,904
100
48
52

$27
0)

$27
$4,778

1 Not available.

HOW WORKER FAMILIES SPENT THEIR INCOMES, 1960
(Preliminary Estimates)

E
ssentials

17

CO N SU M ER PRICE INDEX
For W age-Earner and Clerical-Worker Families in U.S. Cities
IN D E X

IN D E X

1957 - 59=100

130

120

110

100

90

80

70

60

50

40

30

1913 1915

1920

1925

1930

1935

One-half the renters paid less than 20 percent
o f their income as rent; one-half paid 20 percent
or more.
Most urban houses have inside flush toilet and
bath; many farm houses do not. This is shown
in these 1960 figures. Nearly all urban houses
have electric lighting.
Flush toilet
inside

Total
Number
PerC
thousands) cent

Total—.
Urban______
Rural
nonfarm___
Farm_______

Number
0thousands)

Bath
inside

Number
PerPerthousands) cent
cent C

61,892
40,764

100.0

54,564 .
39,990
98.1

100.0
100.0

12,350
2,224

12,139
2,244

70.3
62.4

69.1
62.4

According to a 20-percent sample, 14,550,000
housing units were constructed during the period
January 1950 to March 1960; 85 percent of these
were single-family structures. Many are in out­
lying areas around the large metropolitan centers.
18

1945

1950

1955

I9 6 0

1963

Recently, housing construction has swung more
heavily to building of multiple-family structures.
The trend in rooms per family has been toward
a larger number of rooms despite the fact that
the average number o f persons per family has
decreased somewhat. This includes husband-wife
households (including children, if any) wuth no
relatives living in the household. It excludes
other kinds o f households, such as one-person
and those with relatives.
Percent distribution of dwelling
units

53,640 .
96.3
39,257

17,562
3,566

1940

1950

Total_____ _ __ .___
1 or 2 rooms __ __ _ - ___
3 or 4 rooms.
___ . ___
5 or 6 rooms. . . ____ ___
___
7 rooms or more _
_
Not reported. _
. _ ___

1960

100
7
38
41
12
1 _.

100
2
30
52
15

S ource : U.S. Department of Commerce, Bureau of the Census.

Automobiles

Worktime Required to Buy Food and Other
Articles

Most American families, including families
o f wage and salaried workers, own automobiles.
Middle-income families and lower income fam­
ilies more often buy used rather than new cars.
In 1960, slightly more than one-half o f the cars
sold were bought with the help of installment
credit.
Automobile ownership
I960 I960
Households

T otal________________ . . .
Owned automobile__________ . . .
Did not own a u tom ob ile .....

53,023, 000
41,605, 000
11,417, 000

Per­ Per­
cent cent

100
78
22

100
55
45

The average production worker in manufactur­
ing in September 1962 earned $2.40 an hour, in­
cluding overtime pay. A t this rate, with average
prices as they were at that time, he worked 15
minutes to earn enough to buy y2 kilo o f ground
beef, 21 minutes for y2 kilo o f butter, and corre­
sponding lengths o f time for other articles as
shown later. An average month’s rent for a
dwelling unit could be earned in 3*4 working days.
Prices o f automobiles and equipment vary widely
throughout the United States; roughly, however,

HOUSEHOLD EQUIPMENT AND AUTOMOBILES
IN AMERICAN HOMES
Without

With
RADIO, 1960

T E L E V IS IO N SET, 1960

P R IV A T E BATH OR SHOW ER, 1960

A U T O M O B IL E OW NED, 1960

3
1
Each symbol represents 10 percent of dwelling units
(in the case of automobiles, 10 percent of families)
so u rce of data : u . s . d e p a r t m e n t

of c o m m e r c e ,

BUREAU OF THE CENSUS', BOAR0 OF GOVERNORS
OF THE FE0ERAL RESERVE SYSTEM-

19

MINUTES OF FACTORY W ORKER S TIME
REQUIRED TO BUY CERTAIN ITEMS,
Sept. 1962
2

3

5

6

POTATOES
(1 Kilo)

SU G A R
(/2 Kilo)

RICE
e/2 Kiio)

WHITE BREAD
|/2 Kilo)

7

6

8

CIGARETTES
(1 Pock of 20)

MILK
0 Liter)

OLEOMARGARINE
[ V 2 Kilo)

15

GROUND BEEF
(V 2 Kilo)
!

20

20

24

44

CHEESE
I/2 Kilo)

COFFEE
( V i Kilo)

NYLON STOCKINGS
(1 Poif)

HAIRCUT
(Man’s)

a good used car could be bought for about 11
weeks’ work, and a new car of one o f the popular
makes for about 29 weeks’ work. (See table 12.)

Consumer Credit
In contrast with many foreign countries where
capital is not so plentiful, consumer credit is
readily available in the United States, providing,
o f course, the purchaser is considered a reasonable
credit risk.
Normally, a home constitutes the largest single
expenditure a family makes in its lifetime and few
families have the financial means to purchase a
house outright. Governmental measures to en­
courage long-term mortgage lending, together

20

with the related shift from the single payment
to the monthly amortized mortgage, have made
homeownership possible for millions of families.
Flexible financing terms enabled the purchaser to
gear the monthly payments to his budget.
Intermediate and short-term credit are likewise
available to purchase consumer durable goods
where the useful life and original cost are less than
for houses but which still represent sizable pur­
chases in relation to the purchaser’s monthly in­
come and/or savings.
Financial arrangements o f various kinds were
utilized by about 6 out o f 10 persons who bought
cars in 1961, and by nearly half the buyers o f
furniture and household appliances.

T able 12.

E stimated W orktime R equired

to

B u y F ood and Other A rticles , September 1962
Units used in United States

Article

Metric units

Work­
Work­
time
Average
time
required Quantity
retail
required
(in
price
(in
minutes)
minutes)

Quantity

White flour.........................................................................................................................................
White wheat bread............................... ............................................................................................
Rice, short grain...............................................................................................................................
Beef:
Round steak (best grade).... ........................ ______________ _______________ ______ ______
Chuck roast (best grade)............... ................................. _........... ........... ................... ............
Hamburger (ground beef)............... ........... .............. ............................................. .................
Pork:
Chops, center cut.____ _____ ______ ____ ____________________ _______________________
Bacon (sliced, best grade)............................................................... .............. ............................
Ham (whole, smoked)_______________________________________________________ ___ _
Fish:
Frozen fillet of haddock___ ___ _____________ _________ _______________________ ______
Canned salmon, pink_________ _____________________________________________________
Chicken (ready to cook)____________________ ____________________________________________
Butter, 92 score..................................... .............................. ...... ....................................... ..............
Oleomargarine, colored____ ___________________ ______ ____________________________ _____
Lard................................. ........................................ ........................................................... ..........
Cheese (American Cheddar)................................. .......... ............................ .......... ..... ..............
Fresh milk, at grocery store..............................................................................................................
Eggs (large, grade A ).......................................................................................................................
Oranges (si7 approximately 5 pounds per dozen)____
e,
__________________________ ______
Potatoes........................................................................ ........... ............................................... ........
Cabbage________ _____________________________________________________________________
Dried beans...................... : ......... ......................... .......................................................... ..............
Dried prunes (large)........................................................................................................................
Canned tomatoes______________________________________________________________________
Sugar.................................................................................................................................................
Coffee, can____________________________________________________________________________
Tea bags_______________________ ___ ___________________________________________________

Average
retail
price

1 pound .
...d o ___
...d o .......

$0.114
.212
.193

3 H kilo—
5 __ do.......
5 __ do.......

$0.125
.233
.212

3
6
5

...d o .......
...d o .......
...d o ......

1.126
.666
.539

28 __ do____
17
do___
13 ___do......

1.239
.733
.593

31
18
15

__ do.......
...d o ......
__ do.......

.997
.758
.639

25
d o.__
19 ...d o .......
16 __ do____

1.097
.834
.703

27
21
18

.552
.759
.418
.748
.279
.202
.722
.245
.589
.871
.062
.084
.173
.401
.155
.118
.714
.245

14
19
10
19
7
5
18
6
15
22
2
2
4
10
4
3
18
6

.607
.835
.460
.823
.307
.222
.794
.260
.589
.871
.068
.092
.190
.441
.170
.130
.785
.245

15
21
12
21
8
6
20
6
15
22
2
2
5
11
4
3
20
6

1.945

49

...d o .......
__ do.......
...d o ......
...d o .......
do.
...d o ......
...d o .......
1 quart..
1 dozen—
do.
1 pound.
...d o ......
...d o ......
...d o ......
...d o .......
...d o ......
...d o .......
package
P of 16.
Tea i.................................................................................................................................................... 1 pound.

1.768

...d o ......
do___
...d o .......
...d o ......
__ do____
__do___
...d o ......
1 liter.. .
1 dozendo. _
H k ilo do___
...d o ......
— do— .
__ do.......
__ do.......
...d o .......
package
of 16.
44 H kilo—

Article

Average
retail
price

Worktime required
Hours

Minutes

Bath towel, 25 x 48 inches (64 x 122 c m .) ______ _______________________________________________________________________
Electric light bulb, 60 watt.......................................................................................... ........................................................................
Paper napkins, box or package of 80___________________________________________________________________________________

$1.86
.25
.14

0
0
0

46
6
4

Dishes, 53-piece set, semivitreous earthenware_________________________________________________________________________
Covered sauce pan, aluminum, 2-quart (1.9 liters)__________ ___________________________________________________________

28.39
2.30

11
0

50
58

Laundry service: 20-pound bundle (9.1 kilos), finished.................................. ...................................................................................
Dry cleaning: Man’s 2-piece suit, delivered _
___
_____________________________________________________________ :
Domestic service: General housework, 8-hour day _ __________________________________________________________________

8.34
1.66
8.87

3
0
~3

28
42
42

Gas, 25 therms________ _____ ______________________________________________________________________________________
Electricity, 200 kilowatt hours _______ _________________________ ____________________________________________________

4.01
6.37

1
2

40
39

Man’s 2-piece suit, new wool, hard-finished worsted medium grade______________________________________________________
Man’s work dungarees, blue denim___________________________________________________________________________________
Man’s business shirt, broadcloth____ _________________________________________________________________________________
Man’s socks, argyle knit, c o tt o n ____ _______________________________________:_______________________________________
Boy’s sport shirt, long sleeves, cotton flannel or woven gingham
______________________________________________________
Women’s 2-piece suit, new wool_______________________________________________________ _______________________________
Woman’s slip, nylon tricot, plain_____________________________________ _______________________ _______________________
Nylon stockings, 1 pair
__
___
____ ___________
_______________________________________________________
Man’s work shoes, high, composition sole_______________________________________________ ______________________________
Man’s street shoes, oxford, calf uppers, leather sole_________ __________________________________________________________
Child’s shoes, oxford, goodvear welt construction____________ _ _______________________________________________________
Printed cotton percale cloth, 36 inches wide, 1 yard__________________________ __________________________________________

48.05
2.37
4.48
.80
2.38
60.16
3.98
.98
9.27
15.58
6.46
.51

20
1
1
0
1
25
1
0
3
6
2
0

1
59
52
20
0
4
40
24
52
30
42
13

Automobile tires, size 6.70 x 15________________________________________________________________________________________
Gasoline, premium, gallon (3.785 liters)______________________________________ *________ ________________________________
Bus fare, one_______________________ _____ ___________________________________________________________________________

24.48
.36
.22

10
0
0

12
9
6

Pencillin prescription, 12 tablets____________ ___________________________________ _____________________________________
Hospital, semiprivate room, per d a y .. _________ _____________________________________________________________________
Physician, house visit......................... ........................... ................. ............................................. ........................................ .............

2.04
23.95
8.20

0
9
3

51
59
25

Dentist, ex traction _
_
__ _ ____ __ _ __________________________________________________________
_
Dentist, filling...............
............................. ............................................. .................... ................................................. ................
Eyeglasses, with examination
_ _ ____
___
__
_______________________________________________________

6.80
5.73
28.93

2
2
12

50
23
3

Face powder, fine texture, per ounce _
__ __ __
____ ________________________________ _________________________
Toothpaste, per ounce. ____
___
____
____ _________________ ________________________________________ ________
Man’s haircut_______________________________________________________________________________________________________
Permanent wave.....................................................................................................................................................................................

.64
.17
1.76
11.91

0
0
0
4

16
4
44
58

See footnotes at end of table.

21

T able 12.

E stimated W orktime R equired

to

B u y F ood

and

Other A rticles , September 1962— Continued
Average
retail
price

Article

Worktime required
Hours

Electric sewing machine, portable.............. .........................................................................
Refrigerator, 10 to 12.2 cubic feet (283 to 345 cubic decimeters) capacity, with top freezer.
Toaster, electric, automatic....................................................................................................

98.70
198.76
15.45

Television set, 19-inch portable..
Radio, 4 tubes, table model------Motion picture admission, adult.

164.81
18.29

8
49
26

7

40
37
25

0

.27
2.41
1.28
4.38

New 8-cylinder 4-door sedan automobile with automatic transmission—Chevrolet, Ford, or Plymouth-------------------------New 6-cylinder 4-door sedan compact automobile with hand-shift transmission—Chevrolet, Ford, Plymouth, or Rambler 2 .
4-year-old used Chevrolet or Ford (1958 model)........... ................. ........... - ................................................................................. 1 Average retail prices for tea have been estimated from prices for package
of 16 tea bags.
2 Chevy II, Falcon, Valiant, and Rambler, respectively.

41
82
6

1.00

Cigarettes, pack of 20......................
Cigarettes, carton (200 cigarettes) - Beer, per 6 12-ounce cans or bottles.
Spirits blended whiskey, H gallon..

Minutes

0
1

0
1

7
0

32
50

28H to 31 weeks.
23H to 25H weeks.
1 0 to 11H weeks.

N ote : The prices shown for food are weighted averages of prices in 46 cities
of 2,500 or more population in all parts of the United States. Other prices
given are averages for a varying number of large cities (5-10).
S ource : U.S. Department of Labor, Bureau of Labor Statistics.

In 1961, 27 million households, about one-half
o f the total, had some form of nonmortgage install­
ment debt. The largest proportion of such debt
was in households where annual income was in
the $5,000 to $10,000 range. In the last few years,
there has been a tendency for the incidence o f debt
to rise somewhat in higher income levels, and de­
cline in lower income levels. Nonmortgage debt
was most frequent among households headed by
persons 25 to 34 years of age, and this group also
had the highest average debt. Long-term install­
ment debt in the form of mortgages on homes is
also common. Studies made in 1960 show that
there are mortgage loans on about three-fifths o f
the nonfarm owner-occupied homes in the United
States.

22

The estimated amount o f consumer debt at the
end o f 1962 was about $225 billion, o f which $161
billion was mortgage debt on real estate. Exclud­
ing mortgage debt, which is more than offset by
real estate assets, the balance of $63 billion debt
was about one-sixth the Nation’s $383 billion dis­
posable income. Short- and intermediate-term in­
stallment credit amounted to $43 billion and non­
installment consumer debt $15 billion, comprising
single-payment loans, charge accounts, and serv­
ice credit (monthly billings for items such as elec­
tricity, water, heat). Excluded from these figures
is $14 billion o f debt, the purpose for which it was
borrowed is unknown and which could have been
used either for consumption and/or business pur­
poses; these were loans against life insurance poli­
cies and loans made by banks against securities.

Output
Output in the United States has risen almost
continuously. A 1957-58 decline in output was fol­
lowed by a rise o f nearly 8 percent from the first
9 months o f 1958 to the corresponding period of
1959, and a continued rise during 1960, 1961, and
1962. (See table 13. Data are in constant dollars
o f 1954 purchasing power.) A large part o f the
increase has been in those activities that meet the
needs o f the rising population and increased its
level o f living.

Disposition of the National Output

The basic key to the continuing rise in the level
o f living in the United States has been the long
term rise in productivity, i.e., increased output per
man-hour. A rapidly growing labor force is work­
ing a reduced number o f hours, aided by advancing
technical change.
Output per man-hour showed greater increase
in agriculture than in nonagricultural industries
between 1947 and 1961 (1957-59=100):
Total

About two-thirds o f the total o f U.S. goods and
services (the gross national product, or GNP) in
1962 were for consumers. Almost one-tenth went
for national defense costs. About one-seventh
went into private domestic investment (o f which
nearly one-third was for new nonfarm dwelling
units).
Amount
(billions)
Total gross national product (GNP), 1962............
554.9
Consumer goods and services_______________________
355.4
National defense..............
53.3
Gross private domestic investment_____ ____________
78.8
New nonfarm residential construction_____ ______
23.2
Other private domestic investment______________
55.6
Other (largely State and local government purchases) ___
67.4

Percent
100.0
64.1
9.6
14.2
4.2
10.0
12.1

Source : U.S. Department of Commerce, Office of Business Economics,
Survey of Current Business, July 1963, p. 12.

T able 13.

Productivity

Gross N ational P roduct

or

1947......... .
1948_________
1949_________
1950_________
1951_________
1952_________
1953_________
1954_________
1955_________
1956_________
1957_________
1958_________
1959_________
1960_________
1961_________

70.9
73.4
75. 5
80. 9
82.9
84. 7
88.2
89. 7
93. 8
93.9
97. 2
99. 6
103. 3
105.3
108.9

Agriculture

50.
59.
56.
64.
64.
69.
77.
83.
86.
88.
94.
103.
102.
109.
117.

Nonagricutture

2
6
8
7
0
9
8
4
4
3
2
0
8
3
9

76.
77.
80.
85.
86.
87.
90.
91.
95.
94.
97.
99.
103.
104.
107.

3
9
8
1
5
6
0
4
3
9
5
4
1
8
9

N ote : For details as to concepts and methods of the above series, see U.S.
Department of Labor, Bureau of Labor Statistics, Trends in Output per
Manhour in the Private Economy, 1909-1958 (BLS Bulletin 1249, 1960). These
series were revised to a new base, 1957-59=100, in November 1962.

E xpenditure

in

Constant D ollars, 1929-62

[Billions of dollars, 1954 prices]
Total
gross
national
product

Year

1929...................
1930__________
1931...................
1932...................
1933
..........
1934...................
1935...................
1936...................
1937...................
1938...................
1939...................
1940...................
1941...................
1942...................
1943...................
1944...................
1945...................

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

i
Govern­
Gross
Personal
Net exports
consump­
ment pur­
private
of goods
domestic
and
tion ex­
chases of
goods and
penditures investment services
services
128.1
120.3
116.6
106.0
103.5
108.9
115.8
127.7
132.1
129.9
137.3
144.6
154.3
150.8
154.6
160.2
171.4

35.0
23.6
15.0
3.9
4.0
7.4
16.1
21.0
27.0
15.5
21.6
29.0
36.7
18.8
10.7
12.3
17.0

0.2
.2
—.3
—.3
—.8
.6
-1 .9
-2 .2
—1.6
.8
.3
1.1
—.6
-2 .9
-6 .6
-6 .7
-5 .6

18.5
20.5
21.6
20.5
19.9
22.8
23.0
26.9
26.0
28.8
30.1
31.1
47.7
100.1
137.9
152.2
131.2

N ote : “ Gross national product or expenditure” Is the market v^lue of the
output of goods and services by the Nation’s economy, before deduction of
depreciation and other allowances for business and institutional consumption
or durable capital goods.
“ Personal consumption expenditures” consist of the market value of pur­
chases of goods and services by individuals and nonprofit institutions and
the value of commodities and services received by them as income in kind.
“ Gross private domestic investment” consists of acquisitions of newly
produced capital goods by private business and nonprofit institutions and

Year

1946...................
1947................. .
1948...................
1949...................
1950___
1951...................
1952...................
1953................ .
1954................ .
1955...................
1956...................
1957__________
1958......... .........
1959...................
1960................. .
1961...................
1962...................

Total
gross
national
product

282.5
282.3
293.1
292.7
318.1
341.8
353.5
369.0
363.1
392.7
400.9
408.6
401.3
428.6
439.9
447.7
474.8

Gross
Net exports Govern­
Personal
ment pur­
private
consump­
of goods
chases of
and
tion ex­
domestic
goods and
penditures investment services
services
192.3
195.6
199.3
204.3
216.8
218.5
224.2
235.1
• 238.0
«
256.0
264.3
271.2
273.2
288.9
298.1
303.6
317.6

42.4
41.5
49.8
38.5
55.9
57.7
50.4
50.6
48.9
62.5
61.7
58.1
49.0
61.7
60.2
57.5
65.2

3.8
8.0
2.0
2.6
.2
2.2
1.2
-.9
1.0
.9
2.5
3.8
-.2
-2 .1
1.7
2.3
1.8

43.9
37.2
42.1
47.2
45.1
63.3
77.7
84.3
75.3
73.2
72.3
75.5
79.3
80.1
79.9
84.3
90.2

of the value of the change in the volume of inventories held by them. It
covers all private new dwellings, including those acquired by owneroccupants.
“ Net exports of goods and services” represents the difference between
U.S. exports and U.S. imports of goods and services.
Source : U.S. Department of Commerce, Office of Business Economics,
U.S. Income and Output, A Supplement to the Survey of Current Business,
1958, pp. 118-119, and Survey of Current Business, July 1963, p. 14.

23
706-107 0

-

63-5

G R O S S N A T IO N A L PRO D U CT
IN 1954 D O LLA RS
Billions of Oollors

1929-1962

Bin ions of Dollars

S O U RCE: U.9. D E P A R T M E N T O F C O M M E R C E .

24

FUEL C O N S U M E D PER PRO D U C T IO N W O RKER
M anufacturing and M ining
SPECIFIED YEARS
(Equivalent of Energy Consumed in Thousands of KWH-!/)

M AN U FA CTU RIN G :

718

\J I N T E R N A T I O N A L U N I T O F E N E R G Y
2J I N C L U O E S O I L A N D G A S

SOURCE:

U .S . C E N S U S , C E N S U S O F M I N E R A L S : R A W M A T E R I A L S
IN U .S . E C O N O M Y 1 9 0 0 - 6 1 . W O R K IN G P A P E R N O 6 .

25

PRODUCTION OF ELECTRIC EN ER G Y 1
Billions of
Kilowatt-Hours
900

BY TYPE OF PRIME M OVER

T n B Y O W NERSHIPo ’ ° 0 ° ° . ° rv° *

^ IN D U S T R IA L
o^o

plants

?o

-PRIVATELY O W N E D
UTILITIES

^PUBLICLY O W N E D
[u t il it ie s

E X C L U D E S A L A S K A A N D H A W A II.
P R E L IM IN A R Y .
S O U R C E :U . S . F E D E R A L P O W E R CO M M ISSIO N.

26

Electric Energy

T a b l e 14.

Output o f electric energy has risen fast, often as
much as 50 percent in 5 years. The 1961 annual
output was about 16 times that o f the early 1920’s;
and a 1970 output twice as high as 1961 is consid­
ered likely. Fuel, chiefly steam, supplies over
four-fifths o f the total. In the western part o f the
United States, however, waterpower is the greater
supplier of electric energy.

M il e a g e a n d O p e r a t io n s o f T r a n s p o r t a t io n
M e d ia , 1960
Item
Miles

Mileage of rail, air. and highway network:
Railroads, miles of road owned, Jan­
uary 1961 i
Main scheduled airlines, route mile­
age, 1961 *
Inland waterways___________________
Oil pipelines, estimated
Highways 1 _ _

[Billions of kilowatt hours]

1920____
1930____
1940____
1950____
1960____
1961 2___

36,
79,
128,
287,
692,
723,

248
763
248
790
494
356

Hydroelectric

20,
34,
51,
100,
149,
155,

311
874
659
884
122
174

Total utilities and
industrial plants

56,
114,
179,
388,
841,
878,

559
637
907
674
616
530

1 Excludes Alaska and Hawaii.
2 Preliminary.

Privately owned utilities supplied almost threefourths o f the electric energy for public use in
1961. This represented a relative decline from
1922, when more than 95 percent was produced
by privately owned utilities, and a rise for pub­
licly owned utilities from 4.5 to 24 percent o f the
total. Some industrial establishments produce
their own power.

Kilometers

217,552

350,325

104,719
28,998
151,968
2,165,000

168,629
46,658
248,313
3,486,000

Passengermiles
(millions)

Production of electric energy, by type of prime mover, selected
years, 1920-611
Steam and internal
combustion

Distance

Passengerkilometers
(millions)

Passenger operations:
Total operated between cities of conti­
nental United States.............. ..........

755,085

1,215,918

Common carriers, total
Railroads
Scheduled air carriers................ .
Motor carriers (buses)___________
Inland Water way s-Great Lakes
Private automobiles

77,496
21,574
33,958
19,896
2,068
677,589

124,799
34,741
54,683
32,039
3,330
1,091,126

Ton-miles
Freight operations:
Total operated between cities
Railways________________ ____
Airways
Inland waterways _: _
Oil pipelines _
Highwavs (trucks')

Ton-kilometers

1,346,650

2,168,518

594,853
778
223,000
228,626
299,393

957,895
1,253
359,098
368,158
482,114

1 Includes Alaska and Hawaii.
N ote : One ton-mile or 1 passenger-mile represents 1 ton or 1 passenger
carried a distance of 1 mile. A number of the figures, including those on
automobiles, buses, and trucks, are estimates. Regarding network mileage:
railroad mileage refers to main track railroad; route mileage of the main
scheduled airlines is the weighted average of route miles operated within
the continental United States in the first quarter of 1961; miles of inland
waterways are miles authorized for improvement, and do not include the
Great Lakes; highways represent the total rural surfaced roads.

Transportation

Source : U.S. Interstate Commerce Commission, Civil Aeronautics
Administration, Army Board of Engineers, Bureau of Mines, and Bureau of
Public Roads.

Airlines surpass railroads as passenger carriers.
However, all the common carriers together ac­
count for only 10 percent as many passenger miles
as private automobiles are believed to do.
The railroads are the chief carriers of freight
(44 percent o f total in 1960). In recent years,
truck competition has grown to the point where
trucks now carry 22 percent of total freight. Oil
pipelines account for 16 percent of total freight,
the inland waterways also handle 16 percent, and
the balance is airborne. (A ll figures apply to
transportation between cities. They do not in-

elude transportation within cities, or such daily
trips as those between a suburban home and a job
in a central city.)
The largest inland waterway traffic is still via
the five Great Lakes which reach deep into the
midwest along the United States-Canadian border.
The second largest, and rapidly growing, inland
waterway system is the Mississippi River system
comprising the Mississippi, Illinois, Missouri,
Ohio rivers, and other tributaries. (See table
14.)

27

Agriculture
Farms
In I960, the average farmer harvested crops
from about 80 acres (32 hectares) o f cropland.
The farmer operated more than the acres in
crops; he operated pastureland also. Counting
pasture, woodland, etc., the average farm consisted
of about 287 acres (116 hectares), the country over.
In the East, however, many farms are smaller
than this, and in the western wheat and range
country, many are larger.
Total Cropland Total Cropland
farmland harvested farmland harvested
{acres)
(acres) (hectares) (hectares)
1
Per person in total U.S. population.
6
2
2
8
20
30
Per person living on farms..............
75
116
32
Per farm operator................... ........
287
80
Source : U.S. Department of Agriculture, Economic Research Service.

The number of workers, including farm opera­
tors, per 1,000 acres (405 hectares) in farms in 1960
averaged about six for all types o f farms. A l­
though farmers continue moving off the farm,
farm acreage has not decreased. Farms are fewer
in each o f the last three decennial censuses, but
they are larger. However, there has been no in­
crease in great corporation-owned farms. The
number o f hired farm workers has declined since
1920. Most farms are family owned and operated.

Farms by Value of Sales
About 800,000 U.S. farms, only 22 percent of the
total, each sold as much as $10,000 worth o f farm
products in 1959; but this group accounted for
nearly 72 percent of all farm sales. Ninety-five
percent o f all sales were made by 56 percent o f all
farms. A large number of farms produced little
for sale; many required only part o f the farmer’s
time, or served only as a residence.

Persons Supported From Production by One
Farm Worker3
One farm worker supplies food, fiber, and to­
bacco for seven times as many people in the United
States today as in 1820. This estimate is one type
o f measure o f changes in agricultural efficiency.
The number o f persons supported by one farm
worker has increased as follow s:
28

Number
of persona

Number
of persons

1820______ _________ 4.12
1840. .
.. _______ 3.95
I860- _ __________ - 4.53
1880— — 5.57
1900- _ __
____ 6.95
1920________________ 8.27
1940__ — _____10.69
1945— __ _________ 14. 55
1950_______ ________ 15. 47

___19.48
1955 __
1956 - . _ ________ 21.72
___22. 75
1957 - . - —
_ 23. 21
_
1958
.— 1959
_____________ 24.51
1960___ ____________ 25. 85
1961
-____________ 27. 83
1962
.____________ 28. 57

S o u rc e : U.S. Departm ent o f A griculture, Econom ic Research

Service.

Farm Employment
Most farm work, especially on grain, dairy,
poultry, and livestock farms, is performed by the
farm operator himself and his family, with the
aid of machines. Hired farm workers are impor­
tant seasonally, however, in all branches of agricul­
ture and particularly in fruit, vegetable, tobacco,
and cotton crops.
The average number o f hired farm workers in
the United States in 1962 was 1,817,000, but the
number ranged from 811,000 in January to
2,651,000 in August, The peak seasonal demand
is met in part by students and housewives who seek
work only in the summer months. Seasonal help
is obtained also from Mexico and the Caribbean
area. In addition, many farm workers help to
adjust the supply of labor to the shifting demand
by migrating to the North and back to the South,
as seasonal crops require care. (See table 15.)
Although farms have grown larger, in part
through consolidations o f two or more farms into
one with a consequent reduction in number of
farm operators, the average number of workers per
farm has declined.
8 “ Farm worker” Includes the farm operator and any others
w orking on the farm .
The series is essentially a ratio o f consumers to farm workers
in the United States. The ratio varies with agricultural p roduc­
tion, exports, and im ports ; total1population o f the United States';
and number o f farm workers. The term “ consumer support” has
not meant the same thing at all times. In the early part o f the
141-year period, farm workers perform ed many types o f work
that later came to be done by city workers. Furthermore, a
greater quantity of/ agricultural products is probably supplied to
a single consumer now than in early years when diets and cloth ­
ing were simple and sometimes meager.

Income per Farm
Income per farm and income per farm resident
rose sharply during World W ar II, even after
allowing for changes in the purchasing power of

money. Although more recent years have seen
some decline from the wartime peak, levels are still
far above the prewar period. (See table 16.)
T able

16.

T able 15. N umber of F arm s , A nnual A verage F arm
E mployment , and A verage W orkers per F arm ,
1910-62

1910..............
1920..............
1930..............
1940..............
1950..............
1957..............
1960..............
1961..............
1962..............

6,406
6,518
6,546
6,350
5,648
4,372
3,949
3,811
3,688

All
workers

13,555
13,432
12,497
10,979
9,926
7,577
7,057
6,919
6,700

Operators
and unpaid
family
workers

10,174
10,041
9,307
8,300
7,597
5,682
5,172
5,029
4,873

Hired
workers

3,381
3,391
3,190
2,679
2,329
1,895
1,885
1,890
1,827

Average
employ­
ment per
farm all
workers
2.12
2.06
1.91
1.73
1.76
1.73
1.79
1.82
1.82

N ote : Data differ from the agricultural em ploym ent estimates, as they
were prepared b y different methods.

The number of operators is equal, by definition, to the number of farms.
An unpaid family worker is a member of the family who worked without
pay 15 or more hours per week.
S ource : U.S. Department of Agriculture, Economic Research Service,
Farm Labor, July 1963.

1929...........
1933...........
1935..........
1939...........
1943..........
1945...___
1947..........
1949...........
1951...........

Realized
net farm
income
per farm

Personal
income
per farm
resident,
all sources

A

Year

Farms
(thousands)

I ncome per F arm
R esident , 1929-62

Purchasing power in
dollars of 1957-59 value

Employment (thousands)
Year

F arm

per

F arm

Purchasing power in
dollars of 1957-59 value

B

$1,781
1,079
1,572
1,624
3,362
3,366
3,551
2,835
2,971

and

0)

w «e
571
1,076
1,094
981
926
1,110

1953...........
1955._____
1956...........
1957...........
1958.........
1959...........
I960______
1961...........
1Q
fi2

Realized
net farm
income
per farm

Personal
income
per farm
resident,
all sources

A

Year

B

$2,967
2,622
2,777
2,545
2,985
2,726
2,932
3,294
3,497

$1,072
1,021
1,034
1,077
1,197
1,133
1,241
1,331
1,394

i Information not available.
N ote : Realized gross farm income is the income obtained from agricultural
products sold during the year. Realized net income is realized gross income
minus production expenses. Column A is the operator’s average realized
net income from farming, in constant dollars of 1957-59 value. Column B
represents average personal income per farm resident from all sources, not
only from farming.
Source : U.S. Department of Agriculture, Economic Research Service.
The Farm Income Situation, July 1963, p. 43.

29

Foreign Trade and Foreign Aid
Foreign Trade by Commodity
The composition o f U.S. exports and imports
has both changed with the course of economic
development, and fluctuated from year to year.
Until the 1870’s, crude materials, mainly cotton,
were the predominant exports, while finished
manufactures led imports. Later, foodstuffs were
exported in greater quantity, and crude materials
became the leading import group. From the
1890’s through the 1960’s, exports of finished and
semifinished manufactured goods, including food­
stuffs, have consistently outdistanced imports in
these fields. Leading value items in 1961 were, on
the export side, industrial and electrical machin­
ery, grain, chemicals, aircraft, and automobiles;
leading imports were petroleum and fuel oil, nonferrous metals, coffee, and machinery.

Foreign Trade by Continent
In most years before the Civil War, U.S. exports
to Europe roughly balanced imports from that
continent. Later, Europe remained the chief ex­
port market, but U.S. imports came more and
more from other parts of the world. From 1901
to 1910, the United States exported an average of
$1,132 million worth o f merchandise a year to
Europe, receiving in return only $594 million
worth; trade with other parts of the world, prin­
cipally the Western Hemisphere, averaged $484
million o f exports a year, $564 million o f imports.
During W orld W ar I, U.S. imports from Canada
and Latin America increased to a point where
those two areas became the chief U.S. suppliers.
For several years after W orld War II, these coun­
tries constituted also the largest U.S. export
market, until the early 1950’s when exports to
Western Europe increased and surpassed those to
Latin America.
In 1961, Canada was far above any other country
both as an export market and as a source o f im­
ports to the United States. Japan, the United
Kingdom, and West Germany followed in impor­
tance to U.S. foreign trade.
30

Extent of U.S. Dependence on Imported Raw
Materials
Materials imported into the United States in
crude and semimanufactured forms, which cur­
rently comprise about half of total imports, make
a vitally important contribution to the supplies
of industrial raw materials used in the country.
Among individual commodities for which ratios
of imports to the total new supply ranged from 80
to 100 percent in 1961 (excludes reused materials)
were such raw materials as tin, nickel, manganese,
chrome ore, industrial diamonds, carpet wool, and
natural rubber. For a number o f other important
metals, and for newsprint, imports furnished from
50 to 80 percent of U.S. new supplies. Petroleum,
the leading import in dollar value, accounted for
21 percent of U.S. new supply.
A t the beginning o f the 20th century, the
United States was, with a few important excep­
tions, largely independent of foreign raw material
supplies. In the aggregate, there was a net ex­
port surplus of domestic raw materials equal to
10 percent of domestic consumption. However,
raw material consumption expanded until, by mid­
century, domestic production fell short o f con­
sumption and there was a small net import balance
in raw materials.
The raw material base, however, is supporting
a more and more elaborate economic structure.
Increased fabrication and reuse make a given
amount o f a raw material the base for many more
end-use products and services today than 50 years
ago. Gross national product amounted to nine
times the aggregate of raw materials consumed in
1960, compared with four times this aggregate in
1900.

Private Investment Abroad
Until W orld W ar I, the United States was a
debtor nation. Funds for national expansion and
development were obtained in considerable
measure from abroad. Long-term investments by
people in other countries totaled $1.4 billion in

FOREIGN TRADE, BY EC O N O M IC CLASS
UNITED STATES, 1911-1961
Billions of Dollars

Billions of Dollars

22

EXPORTS OF U.S. MERCHANDISE

16

14

12
10

8
6
4

2
0

SOURCE: U.S. DEPARTMENT OF COMMERCE,
BUREAU OF CENSUS.

31

1869; in mid-1914, they were estimated at $6.7
billion, o f which $3.9 billion was in railroads.
British investors furnished nearly three-fifths of
this total; Germany, the Netherlands, and France,
somewhat over a quarter. On the whole, foreign
investors preferred to risk their funds in private
enterprises, o f which railroads were the favored
field.
W orld War I changed the balance. Since then,
U.S. investments abroad have usually been greater
than foreign investments here.
About three-fifths of United States direct in­
vestments are in the Western Hemisphere— 55
percent in Canada and 45 percent in Latin Amer­
ica. O f the remaining two-fifths, 55 percent are
in Europe. Elsewhere in the world, United States
investment in 1961 was greatest in Australia ($951
million), and the Republic o f the Philippines
($439 m illion).
More than one-third of U.S. direct private in­
vestment abroad in 1961 was in the petroleum
industry, half of it in Latin America and Canada;
one-third was in manufacturing, largely in Canada
and Western Europe. The remainder was distrib­
uted among mining, public utilities, trade estab­
lishments, etc., largely in the Western Hemisphere.

U.S. Tariffs and Trade Agreements
U.S. tariffs originally were largely for revenue
purposes; the idea o f tariffs for protection o f in­
dustry first became important in 1816. The next
100 years or more saw a long struggle between this
and other ideas, and tariff levels were frequently
changed. With few exceptions, however, tariffs
generally tended to be protective, average duties
on dutiable imports ranging between 26 and 62
percent. W orld War I brought some decline in
duties, but the postwar low (16 percent) in 1920
was followed by a decade o f rapidly mounting
trade barriers. The Smoot-Hawley tariff o f 1930
was the highest in recent U.S. history, yielding
average duties on dutiable imports of 53 percent
in 1931, 59 percent in 1932, and 54 percent in 1933.
This high tariff philosophy was reversed in the
mid-1930’s, and the current U.S. position is a
recognition that foreign trade strengthens both
the United States and foreign economies and that
international trade must be a two-way flow. Fun­
damental to this position, the reciprocal trade
agreements legislation of the United States has
32

by now become symbolic of international economic
cooperation instead of economic warfare. United
States protective actions against competitive for­
eign goods are rather exceptions to the basic phi­
losophy of expanding foreign trade.
The reciprocal trade agreements program was
initiated with the enactment o f the Trade Agree­
ments Act o f 1934, passed by the Congress as an
amendment to the Tariff Act o f 1930. The 1934
act authorized the President— for a period o f 3
years—to enter into trade agreements with other
nations, to reduce duty rates within specified limits
(up to 50 percent o f the 1930 levels) and to modify
other import restrictions in return for similar con­
cessions. Since then, Congress has on many sepa­
rate occasions renewed the trade agreements au­
thority for consecutive periods of 1 to 4 years each,
and most recently for 5 years. Additional tariff
reduction authorizations were granted on four o f
these occasions. Amendments such as the escape
clause and the national security provisions were
added which affected the operation o f the program,
but the basic form and spirit of the legislation has
remained unchanged. The escape clause allows
for withdrawal or modification o f tariff conces­
sions on a finding that imports cause or threaten
serious injury to domestic producers.
Within this framework, the Trade Expansion
Act o f 1962, signed into law on October 11, 1962,
continues the President’s authority to enter into
trade agreements, broadens his authority to reduce
tariffs, expands measures for dealing with unrea­
sonable or discriminatory import restrictions o f
other countries against U.S. products, and intro­
duces new authority permitting direct adjustment
assistance to individual domestic firms and groups
o f workers found to be injured by import competi­
tion due to trade agreement concessions. De­
signed to meet current economic challenges and
to strengthen the U.S. bargaining position in inter­
national trade, the act includes several types o f
tariff-cutting authority:
1. Basic authority for tariff reductions up to 50 percent
of the July 1,1962, rate over a 5-year period;
2. Special authority for tariff reductions up to 100 per­
cent: (a) In agreements with the European Economic
Community (EEC) on categories of industrial products
in which the U.S. and the EEC combined account for 80
percent of world trade and on agricultural commodities
if the President determines this action will help maintain
or expand United States exports of such products; (b)
on any tropical, agricultural, or forestry commodity of

less-developed countries, provided the EEC agrees to
similar nondiscriminatory access for these commodities;
and (c) on low-duty commodities (now set at 5-percent
or less).

The traditional most-favored-nation policy ex­
tending the tariff concession granted by one coun­
try to the imports from all non-Communist
countries is reaffirmed, but the President is au­
thorized to deny these benefits to any country
engaged in unreasonable or discriminatory trade
practices against U.S. exports. The President may
also increase any rate o f duty up to 50 percent
above the 1934 level and impose import quotas or
other trade restrictions if he considers such action
in the best interest o f the Nation. While the escape
clause and national security mechanisms are re­
tained, the act provides as possible alternatives or
supplements to increased import restriction, au­
thority for the President to negotiate international
agreements with countries limiting the exports of
specific articles from those countries to the United
States. It also authorizes direct adjustment assist­
ance to firms and workers adversely affected by
tariff reduction. Adjustment assistance includes
technical assistance, direct loans and loan guaran­
tees not available from other sources, and tax relief
through the special carryback o f operating losses.
Workers certified as being unemployed or under­
employed because o f import competition due to
tariff concessions are eligible for readjustment al­
lowances in the form o f unemployment compen­
sation (up to 65 percent o f their weekly pay or 65
percent o f the average weekly manufacturing
wage, whichever is less), retraining for other em­
ployment and relocation allowances to assist a
family in moving to an area where employment is
available.
Trade agreements during the early years o f the
reciprocal trade program were generally bilateral.
As world conditions changed, limitations o f the
bilateral approach to worldwide problems became
increasingly evident. Effective means were sought
to establish a multilateral program for reducing
world trade barriers. In 1947, the General Agree­
ment on Tariffs and Trade (G A T T ) was nego­
tiated by 23 member nations, including the United
States. Membership has since grown to include
40 countries. The G A T T sets forth principles and
rules governing the import and export trade o f the
contracting parties. Meetings o f its participating

members provide a broad international forum
for discussion and settlement of mutual trade prob­
lems. In the first five major tariff negotiating con­
ferences under G A T T sponsorship, participating
countries exchanged more than 60,000 tariff con­
cessions. The United States participates in the
G A T T pursuant to the Trade Agreements Act o f
1934 as amended and extended.
Under the various Trade Agreements Acts, the
average U.S. tariff rates on dutiable imports (im­
ports subject to customs duties) have been reduced
about 50 percent in 20 years. About two-thirds
o f the reduction has taken place since W orld War
II. I f price changes are taken into account,
American tariffs on dutiable imports declined by
an average o f approximately 75 percent during the
years 1934-61.
The 1961 average rate on dutiable imports was
a little over 12 percent. I f the 39 percent o f U.S.
imports which enter free o f duty are included, the
average tariff on all imports, dutiable and non­
durable, was 7.4 percent. Rates will be somewhat
lower when reductions negotiated under the Gen­
eral Agreement on Tariffs and Trade in 1960-61
become fully effective in later years.
Average import duties

As percent of
dutiable imports

1936-40 average---------- _____
1941-45 average_______ _____
1946-50 average_______ _____
1951-55 average_______ _____
1956-60 average____________
1961__________________

37.9
32. 1
16.0
12. 1
11.4
12.1

As percent of
total imports
for consumption
0including duty­
free imports)

15. 0
10.9
6. 7
5. 4
6. 5
7. 4

S ource : U.S. Department of Commerce, Bureau of the Census, Statistical
Abstract of the United States, 1962, p. 890.

For various reasons, by 1961, about 14 percent
of approximately 3,800 rate classes in the U.S.
tariff were not covered by any kind of trade agree­
ment concessions. In some cases, the principal
suppliers were not members o f G A T T or were
countries with which the United States had nego­
tiated bilateral agreements. In other cases, the
rates of duty were already low and o f minimal
negotiating value. Sometimes items were pro­
posed for concession but supplier parties could not
offer reciprocal concessions. In others, the tariff
classes cover “ sensitive” items for which rates of
duty could not be reduced, or for some similar
reason.
33

The tariff is practically the only type of import
control now exercised by the United States. A
few exceptions have been made in terms o f special
import quotas for such commodities as sugar, cot­
ton, cotton textiles, lead and zinc, and petroleum
and its products, but in general, the United States
makes little or no use of import quotas and does
not use exchange controls, currency rationing, or
other comparable devices.

Foreign Aid by the U.S. Government
Foreign assistance by the United States is gen­
erally provided through grants or gifts, credits or
loans, and, more recently, through the sale o f U.S.
agricultural products for foreign currency. For
the period July 1, 1945, to December 31, 1962,
these three types o f assistance, net after all forms
o f payment to the U.S. Government, totaled
$86,267 million. Net grants amounted to $71,810 million; net credits to $11,342 million; net
other assistance, to an additional $3,115 milliom
Since W orld W ar II, United States foreign as­
sistance programs have passed through several
phases. The early phase of relief and reconstruc­
tion was a response to postwar needs of other
countries. It was accomplished through the
United Nations Relief and Rehabilitation A d ­
ministration (U N R R A ) and other programs.
The Economic Cooperation Act o f 1948 author­
ized funds for the European recovery program
(the Marshall Plan) and, with further legislation
in 1949 and 1950, for the Far East and other areas.
(See table 17.)
With progressive recovery in other countries
and with the mutual defense assistance program,
authorized in 1949 to extend military aid to other
nations, emphasis shifted from economic recovery
to defense support.
Technical aid, initiated in limited form in Latin
America during W orld W ar II, was expanded to
other areas in 1950 and designated as the tech­
nical cooperation program (Point Four). It was
designed to help raise levels of living in lessdeveloped areas, not by contribution o f capital
funds but through the extension o f technical
knowledge and skill.
The Mutual Security Act o f 1952 combined the
major programs for economic, technical, and mili­
tary assistance to other countries. Under the
guidance o f the Department of State, in the main,
34

T able

17.

U.S. G o v e r n m e n t N e t F o r e ig n G r a n t s a n d
L o n g - a n d S h o r t -T e r m C r e d it s , 1945-62
[Millions of dollars or equivalent]
Period

Total

Military

July 1945-December 1954...............................
1955..................................................................
1956..................................................................
1957..................................................................
1958..................................................................
1959..................................................................
1960..................................................................
1961..................................................................
1962.................................................................

$49,588
4,909
4,951
5,069
4,926
3,923
4,429
4,057
4,414

$13,773
2,672
2,634
2,483
2,368
2,031
1,812
1,518
1,630

$35,815
2,237
2,318
2,586
2,559
1,892
2,617
2,539
2,784

Total postwar period (July 1, 1945-De­
cember 31, 1962)_______ ____ ___________
Percent_________________________________

86,267
100.0

30,921
35.8

55,347
64.2

Eco­
nomic

N ote: Recent figures are preliminary and subject to revision. Because of
rounding, sums of individual items may not equal totals.
“ Net grants and credits” equals gross grants and credits (in goods shipped,
services rendered, and funds disbursed by U.S. Government to or for the
account of foreign governments, or other entities) minus the goods and
services received by, and funds repaid to, the U.S. Government from the
foreign sources.
For data by country, see Statistical Abstract of the United States, 1962 (U.S.
Department of Commerce, Bureau of the Census), p. 865ff.

it has been administered by the Agency for Inter­
national Development and its predecessors (the
Foreign Operations Administration and the Inter­
national Cooperation Administration), in eco­
nomic and technical fields, and by the Department
of Defense in military supply and training fields.
The Export-Import Bank also provides many of
the long-term foreign credits o f the U.S. Gov­
ernment.
In 1961, the United States joined with the Orga­
nization o f American States in establishing the
Alliance for Progress. This agreement calls for
mobilizing and directing Latin American re­
sources on a self-help basis so as to bring about
profound economic, social, and cultural improve­
ments in the Latin American countries and eco­
nomic integration o f the continent. To supple­
ment Latin American domestic resources, the
progam envisages a minimum external investment
of $20 million over a 10-year period. For its part,
the United States agreed to furnish technical as­
sistance and major financial cooperation in the
form o f long-term loans at low, or zero, interest
rates.
The United States supports and participates in
various international organizations such as the
United Nations and its specialized agencies: The
International Labour Office, the Food and A gri­
culture Organization, and the International Mone­
tary Fund, organizations which provide a consid­
erable amount o f technical assistance, including
trained personnel, to nations requesting such aid.

Government Income Security Programs
Government Social Insurance and Assistance
Programs
The social protection enjoyed by American fam­
ilies is a composite of many programs, public and
private, and is difficult to picture as a whole. The
public programs are discussed here; some privately
developed programs are mentioned on page 43.
The public programs, largely developed since
about 1935, are o f two kinds: Those that provide
services, and those that provide money payments
to help maintain the income of the recipient.
The many public programs that provide services
rather than money payments are not described
here. They include U.S. Children’s Bureau serv­
ices to promote the health and welfare o f mothers
and children; Federal, State, and local public
health programs; vocational counseling and re­
habilitation; State employment services; and
many other programs. There is also a whole com­
plex o f systems for aiding veterans (former mili­
tary personnel) in various ways.
Money payments are made to individuals to help
maintain their incomes under numerous programs.
Some of these are Federal, others are State or city,
and some are joint Federal-State. In general, the
types o f payments are:
1. Payments to retired workers and their dependents or,
in the case of death, to the survivors (old-age and sur­
vivors’ insurance) ;
2. Payments to unemployed workers (unemployment
insurance) ;
3. Payments to workers permanently or temporarily
disabled and to their dependents in case o f death ( Federal
and State programs, including workmen’s compensation
to workers injured on the job) ; and
4. Payments to poor and needy individuals and families
(various public assistance programs).

The United States has no system o f family al­
lowances. Income taxes are lower, however, for
persons having family dependents. Provision for
dependents is also made under the Federal old-age,
survivors, and disability insurance (O A S D I ); by
unemployment insurance in 12 States; by work­
men’s compensation in 14 States; and by public
assistance programs generally.
Insurance Systems. There are two kinds o f public
income maintenance for the individual in the
United States: (1) insurance and (2) assistance to

the needy. (See listing pp. 36-37 on social insur­
ance. ) Most o f the public social security programs
are basically income insurance. While a person is
earning money, payments are made by the em­
ployee and his employer into a fund in order that,
when the employee’s earnings are interrupted, the
employee may receive benefits from the fund to
partially reimburse the loss of his earnings. Cer­
tain self-employed persons may also pay into the
social security fund. In most o f the programs,
benefits paid to the individual or to his dependents
are related to his payments on prior earnings.
Public assistance, or relief, on the contrary, is
not related to prior earnings. Here the chief qual­
ification is need and, provided residence require­
ments are met, payments are limited to meet that
need.
Temporary income loss through illness or injury
not connected with the job is for the most part
not covered by public systems; however, there is
an area, amounting to about one-fourth o f those
workers with unemployment insurance, who are
protected by law against short, non work-connected
disability.
Income loss due to temporary disability, medical
expenses, and long-term unemployment (usually
6 months or more) are the largest areas that are
covered only to a minor degree by public insur­
ance programs. During recession periods, how­
ever, the Federal Government instituted programs
for extending the duration of unemployment in­
surance benefits to 9 months.
Public Assistance. Public assistance is a general
term applied to a w hole battery of public pro­
T
grams that help to fill the gaps left by the insur­
ance systems. Eligibility for assistance or relief
is based upon proof of need, providing residence
requirements can be met, and payments are in­
tended to cover minimum needs. (See table 18.)
Assistance is administered by State and local
governments rather than by the Federal Govern­
ment. Nevertheless, the Federal Government at
present pays a large part of the cost through
Federal-State programs of aid for special groups.
State and local public assistance, and some sources
of private aid, provide with varying degrees o f
adequacy for the remainder o f the need. Neces­
sary medical expenses may be provided.
35

T able 18.

C h ief G overnm ent S ocial

What agencies operate the
programs?

Who pays?

Who is covered?

Number covered; degree of
coverage

Federal Government, pri­
marily through Bureau of
Old-Age and Survivors In­
surance.

Under Old-Age, Survivors,
and Disability Insurance
(OASDI), employers and
employees each pay into
fund 3H percent of em­
ployee’s earnings, and selfemployed persons pay 5.4
percent of earnings up to
$4,800 a year. (Steps up in
1966 and 1968.)

Nearly all economically active
persons, civilian and mili­
tary; great majority are under
OASDI.

About 93 percent of persons in
paid employment are covered
by OASDI or other public
programs.

Unemployment............ State agencies, with Federal
cooperation, supervision, and
administrative
financing.
Federal Government oper­
ates railroad insurance plan.

Employers; in 3 States em­
ployees also pay small share.
State rates vary from 0.0 per­
cent to 4.0 percent of an
employee’s earnings up to
$3,000 per year (more in a
few States). Lower rates
apply to employers providing
steady employment.

Most wage and salary workers
in industry, commerce, trans­
portation, Federal Govern­
ment, etc., and veterans
with military service, and
some State and municipal
employees.

Abort four-fifths of nonagricultural wage and salary
workers;
estimated
4th
quarter, 1961 average almost
47.3 million.

Permanent disability. _ (1) Federal Government, pri­
marily through Bureau of
Old-Age and Survivors In­
surance, and (2) State work­
men’s compensation agencies.

Under the Federal OASDI law,
cost is paid by employers,
employees,
and
self-em­
ployed, through OASDI
fund. Under State work­
men’s compensation laws,
cost is paid by employers
through
insurance;
cost
varies widely but averages
about 1 percent of employee
earnings.

Federal program applies to all
persons covered by OASDI
(see above); State workmen’s
compensation programs ap­
ply to wage and salary em­
ployees, in case of workconnected disability.

About 90 percent of labor force
is covered by Federal pro­
gram. State workmen’s com­
pensation covers about fourfifths of wage and salary
workers.

Primarily State workmen’s
compensation agencies.

Under State workmen’s com­
pensation laws, cost is paid
by employers through in­
surance.

Wage and salary employees
whose disability is the result
of work injury.

State workmen’s compensation
programs cover about fourfifths of wage and salary
workers.

Employment security agencies
in California, New Jersey,
and Rhode Island; Work­
men’s Compensation Board
in New York; and the Fed­
eral Railroad Retirement
Board for railroads.

In 2 States, 1 percent employee
contribution; in 1, a ^-percent employee and H-percent
(adjusted by experience) em­
ployer contribution subject
to dollar maximum; in the
4th State, a ^-percent em­
ployee contribution up to 30
cents a week with employer
paying the remainder. Em­
ployers finance railroad fund.

Wage and salary workers, gen­
erally the same groups pro­
tected by unemployment in­
surance laws in the 4 States
and railroads’ employees.

About 11.7 million workers.

Type of risk

Old age: Death of
breadwinner.

Temporary disability:
Occupational............

Nonoccupational___

(Federal and many Staite and local government workers i
continue to receive wages during iperiods of temporary occupational1and nonoccupational disability.)

Source: U.S. Department of Labor and U.S. Department of Health, Education, and Welfare.

36

I nsurance P rograms

as of

J an u a r y 1, 1963

Who is not covered?

Benefits; how much?

Benefits to how many?

Maximum benefits
period

About 7 percent of persons in
paid employment, mainly
some of the self-employed
and domestic workerg.

Benefits vary with previous
earnings, age and number of
dependents.
M axim um
OASDI payments per month
are: retired man alone, $127;
man, wife, over 65, $190.50;
widow, 2 children, $254.
Actual payments average
about two-thirds of maxi­
mum.

Under OASDI, July 1962, to
16,220,000 beneficiaries, in­
cluding 2,506,000 children and
young widows.

Under OASDI, during
retirement: from age
62 or over.

Large and growing numbers
of persons are covered also
by supplementary private
pension plans, often estab­
lished through collective
bargaining.

Self-employed; employees of
firms with 1 to 3 workers in
31 States; employees in agri­
culture, domestic service,
most nonprofit organizations,
and family employees in
most States.
Total not
covered: about 15,300,000 ci­
vilian wage and salary work­
ers, 9,900,000 self-employed
and unpaid family workers.

Benefits vary according to pre­
vious earnings, and from
State to State; in 12 States,
vary also with number of de­
pendents, minimu ms range
from $3 to $17, and maximums from $30 to $70 per
week. The average weekly
benefit in 1961 was $33.80,
paid during an average period
of 14.7 weeks.

During 1961, to average of
2,004,000 persons each week;
nearly 7,066,000 persons re­
ceived one or more payments.

Maximum of 20 to 39
weeks in a year, de­
pending on State law;
national average is
23.6 weeks.

Administration is combined
with public employment
exchanges; applicant must
be registered for a job, and
must accept suitable work
if offered.

State workmen’s compensation
laws, covering work-con­
nected disability; exclude
self-employed, most workers
in agriculture and domestic
service, and in many States,
workers in small establish­
ments and persons irregularly
employed. Housewives, chil­
dren, and others outside the
labor force are generally not
covered.

Under Federal and State pro­
grams, benefits related to
previous earnings, up to max­
imum expressed in dollars.
Under Federal program, ben­
efits same as for OASDI.
State laws generally provide
maximum benefits of $30 to
$50 per week with some
States paying additional al­
lowances for children.

691,000 disabled persons and
485,000 dependents of dis­
abled workers were receiving
OASDI benefits in July 1962.
Data not available on perma­
nently disabled receiving
workmen’s compensation.

Under Federal program,
permanently disabled
workers may draw
OASDI pension for
life.
Under work­
men’s compensation,
over half of States
provide benefits for
life or duration of dis­
ability; most other
States limit benefits
to 8-10 year periods.

Federal Government aids
States in program of public
assistance (not insurance)
payments to needy persons
perm anently disabled.
Some States and the Fed­
eral Government provide
rehabilitation training.

State workmen’s compensation
laws usually exclude most
workers in agriculture and
domestic service, and in
many States, workeis in
small establishments, selfemployed, and those irregu­
larly employed.

Benefits are related to earnings
up to a maximum, generally
of $32 to $50 a week under the
different St ate laws.

Data not available..................... State laws vary, from 4
years to entire period
of disability.

Payments of medical services
are provided under work­
men’s compensation laws;
some also provide for re­
habilitation program.

The same groups not covered
by unemployment insurance
in the 4 States with programs,
plus all workers in the re­
maining 46 States and Wash­
ington, D.C.

As in unemployment insurance,
benefits vary according to
previous earnings and State
law.
Minimums without
dependents $10 a week; maximums range from $36 to $70
a week, plus hospital benefits
in 1 State. Railroad benefits
range from $45 to $102 for
2-week period.

In 1961, number of periods of
disability compensation
543,000; this excludes periods
of statutory payments by
private insurance companies
in New York and California.
Also excludes periods com­
pensated by nonstatutory
private insurance.

In addition to statutory pro­
grams, many persons are
covered by private insur­
ance. Coverage is exten­
sive.

26 weeks..........................

Notes

37

The millions who receive public assistance in­
clude people who have not been protected by the
insurance systems, or whose protection under the
systems is inadequate for their needs, or who have
special needs such as medical care which are not
otherwise provided for. The Federal Govern­
ment also helps the States to pay some o f the costs
o f medical services for older persons who can
meet living expenses but cannot afford the medical
care they need.
The Federal Government helps the States to
support four dependent groups: (a) needy per­
sons aged 65 and over; (b) blind persons; (c)
totally disabled persons; and (d) families with
dependent children.
The Federal Government aids in the support
o f the first three groups by contributing 29/35
o f the first $35 o f the State’s average monthly pay­
ment plus 50 to 65 percent o f the remainder of
the State’s payment, up to an average maximum
o f $70 per recipient. The exact percent for each
State is determined by the State’s per capita in­
come, with the States having the highest per capita
income receiving 50 percent and the States with
the lowest receiving 65 percent from the Federal
Government. The State is free to increase the
payments to individuals above $70 a month by
adding more on its own part, and many States
do so. For children, the Federal Government
pays $14 o f the first $17 o f the State’s average
monthly payment, plus from 50 to 65 percent of
the remainder, up to $30 per recipient. The per­
cent is related to the per capita income o f the
States, as in the other three programs.
For all four groups, the Federal Government
shares in payments made to those supplying medi­
cal care to assistance recipients. For old-age as­
sistance, the Federal Government shares in such
costs up to $15 above the $70 maximum. To help
States pay medical care costs for aged persons not
receiving old-age assistance but who cannot meet
the cost o f medical care, Federal sharing ranges
from 50 percent to 80 percent o f expenditures.
The Federal Government also helps the States
to provide maternal and child health services, spe­
cial aid to crippled children, and child welfare
services.
General Assistance is considered a branch of
public assistance. It is a name under which are
grouped all sorts of State and local government
38

aid to persons who are in need but are ineligible
for (or inadequately supported by) other types o f
public insurance and assistance.
General Assistance is usually administered by
local government units within the State. The
State may pay the entire cost, a part, or nothing
at a ll; on the average, the States pay about half.
Because of the extent o f local responsibility, eli­
gibility conditions and adequacy of aid vary
infinitely.
The number of persons receiving the various
types o f Federal, State, and local assistance in
July 1962, and the average amounts they received,
were as follow s:
Average
Number of monthly
recipients payments
Old-age assistance (note that this program is uncon­
nected with old-age, survivors, and disability in­
surance, which is an insurance, not an “ assistance”
p la n ).................
Medical assistance for the aged (not receiving old-age
assistance)...................
Aid to the blind.................................... _.............. ......
Aid to the permanently and totally disabled..............
Aid to families with dependent children (930,000
families, average payment $122.90)...........................
General assistance (330,000 cases, average per case
$66.87)........

2,233,000

$73.16

103,000
100,000
419,000

205.36
77.49
71.43

3,638,000

31.40

798,000

28.28

N ote : General assistance occasionally supplements other forms of public
assistance. The total number of recipients is therefore somewhat less than
the sum of the items shown.
Source : U.S. Department of Health, Education, and Welfare, Social
Security Administration.

People who are forced to depend on public as­
sistance, including general assistance, can hardly
be called a group. They are a great number of
scattered individuals and broken families, many
or most of whom are entirely outside the labor
force. They are deserted wives and children;
aged individuals who had no opportunity to build
up O A S D I credit; migratory farm workers out
o f a jo b ; some workers who have exhausted rights
to unemployment benefits by reason o f long unem­
ployment ; workers of marginal ability; and
mental or physical invalids. I f these people have
no relatives to care for them, they must “look to
some form o f public assistance or institutional
care. Expenditures for public assistance are ex­
pected to decline somewhat as workers accumu­
late more insurance credits; but there may always
be many who cannot be brought into any income
insurance system, for whom continued special pro­
vision will be necessary.

Wage and Hour Legislation
The Fair Labor Standards Act (Federal WageHour Law) o f 1938 is the Federal law o f most
general application concerning wages and hours of
work. This act applies to employees engaged in
or producing goods for interstate commerce, in­
cluding any closely related process or occupation
directly essential to such production. As a re­
sult o f amendments enacted in 1961, the act also
applies to employees in enterprises engaged in
commerce or in the production of goods for com­
merce. These include: Enterprises having two or
more retail or service establishments, an annual
gross volume o f sales o f $1 million or more (ex­
clusive o f certain excise taxes), and $250,000 in
receipts or purchases of goods which move or have
moved across State lines; urban and interurban
transit enterprises having an annual gross volume
o f sales o f $1 million or more (exclusive o f cer­
tain excise taxes); enterprises engaged in the busi­
ness o f construction or reconstruction having an
annual gross volume from the business of $350,000
or more; gasoline service establishments having
an annual gross volume of sales o f $250,000 or
more (exclusive o f certain excise taxes); and any
other type o f enterprise having an annual gross
volume of sales o f $1 million or more. A ll em­
ployees in any such enterprise which, in addi­
tion to meeting the annual volume of sales tests,
has two or more employees individually engaged
in commerce or in the production of goods for
commerce are covered by the act.
For employees within its coverage, the act sets
minimum wage, maximum hours, and overtime
pay standards. It also restricts the employment
o f child labor and, generally effective June 11,
1964, prohibits wage discrimination on the basis
o f sex.
As amended in 1961, the act establishes a mini­
mum wage o f $1.25 an hour and a 40-hour maxi­
mum workweek, to become effective in gradual
stages, beginning September 3,1961, as follows:
I. For employees individually engaged in commerce or
in the production o f goods for commerce: A minimum wage
of $1.15 an hour ($1.25 an hour, effective September 3,
1963) and a 40-hour maximum workweek, with overtime
compensation at a rate of not less than one and one^half
times the employee’s regular rate o f pay for all hours
worked over 40 in any workweek; and
II. For employees made subject to the monetary pro­
visions of the act for the first time as a result of the 1961

amendments: A minimum wage o f $1 an hour ($1.15 an
hour effective September 3, 1964; $1.25 an hour, effective
September 3, 1965) and, effective September 3, 1963, a
maximum workweek of 44 hours (42 hours, effective Sep­
tember 3, 1964 ; 40 hours, effective September 3, 1965),
with overtime compensation at not less than one and onehalf times the employee’s regular rate of pay for all hours
worked in excess of the statutory maximum workweek.

The child labor provisions set a minimum age o f
16 years for most jobs; a minimum age of 18 years
for work in hazardous occupations (as designated
by the Secretary o f L a b o r); permits the employ­
ment of children between 14 and 15 years o f age
in a limited number o f jobs, such as office and sales
work, for a limited number of hours and times of
day; and prohibits the employment o f children
under 14 years o f age.
Exemptions from some or all of these require­
ments are provided for employees in certain occu­
pations and industries. The Equal Pay Act o f
1963, which amends the Fair Labor Standards
Act and becomes generally effective on June 11,
1964, prohibits wage discrimination on the basis
of sex in establishments having employees subject
to the minimum wage requirements o f the Fair
Labor Standards Act. The equal pay standard
does not apply to any employee who is exempted
from the minimum wage provisions of the Fair
Labor Standards Act.
Unless specifically exempt, all covered employees
must be paid at least the applicable minimum
wage, regardless o f whether the employees are
paid by the hour, by salary, by piece work, or by
any other method. However, learners, appren­
tices, messengers, handicapped workers, and full­
time students employed in retail or service
establishments outside o f school hours, under cer­
tain circumstances, may be paid special lower min­
imum wage rates, provided that special certificates
are first obtained from the Administrator of the
Wage and Hour and Public Contracts Divisions.
Also, for employees in Puerto Rico, the Virgin
Islands, and American Samoa, industry wage or­
ders may set minimum rates below the statutory
minimum.
The law applies equally to men and women, to
homeworkers as well as factory and office workers
(certificates issued by the Divisions are necessary
for homeworkers in certain industries) and gen­
erally regardless o f the number o f employees o f an
employer. The law does not require extra pay for
Saturday, Sunday, or holiday work, as such, or
39

vacation, holiday, or severance pay or a dis­
charge notice; nor does it set any limit on the num­
ber o f hours persons 16 years o f age or over may
work.
Approximately 28 million workers are subject to
this act, 8.6 million o f whom were brought within
its coverage for the first time by the 1961 amend­
ments. About 2.2 million of this latter group are
employed in retail or service establishments.
The Fair Labor Standards Act is enforced by
the U.S. Department o f Labor. Other Federal
agencies administer legislation covering working
conditions for such industries as trucking, rail­
roads, and airlines.
Thirty-four States have their own wage or hour
laws to protect working women, particularly those
not covered by the Federal act, such as women
in retail trade, restaurants and hotels, launderies,
and beauty shops. Sixteen of these States have
also established minimum wages for men and
many of the State laws also regulate or prohibit
nightwork by women.4

Employment Act of 1946
The Employment Act o f 1946 states it is the
policy and responsibility o f the Federal Govern­
ment to promote employment, production, and
purchasing power. Section 2 of the act, the
Declaration o f Policy, reads as follow s:
The Congress hereby 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 re­
sources for the purpose of creating and maintaining, in
a manner calculated to foster and promote free com­
petitive enterprise and the general welfare, conditions

40

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.

The act’s major requirement is that the Presi­
dent submit an annual economic report to the
Congress “ setting forth (1) the levels of employ­
ment, production, and purchasing power obtain­
ing in the United States and such levels needed to
carry out the policy declared in section 2 ;(2 )
current and foreseeable trends in the levels of em­
ployment, production, and purchasing power; (3)
a review o f the economic program of the Federal
Government and a review of economic conditions
affecting employment in the United States or any
considerable portion thereof during the preceding
year and o f their effect upon employment, produc­
tion, and purchasing power; and (4) a program
for carrying out the policy declared in section 2,
together with such recommendations for legisla­
tion as he may deem necessary or desirable.”
The act established a Council of Economic A d ­
visors to assist and advise the President and a
Joint (Congressional) Committee on the Economic
Report “ to make a continuing study of matters
relating to the Economic Report; to study means
of coordinating programs in order to further the
policy o f this act; and as a guide to the several
committees of the Congress dealing with legisla­
tion relating to the Economic Report . . . to file
a report. . . . containing its findings and recom­
mendations with respect to each of the main recom­
mendations made by the President in the Economic
Report, and from time to time to make other
reports and recommendations to the Senate and
House o f Representatives as it deems advisable.”
4 F or fu rther inform ation, see Federal Labor Laws and Agen­
cies: A Layman’s Guide (1 9 5 7 ), U.S. Departm ent o f Labor,
Bureau o f Labor Standards, pp. 37 -44. (B u lletin No. 123, R e­
v ised ; and 1960 Supplem ent).

Employer-Employee Relationships
The National Labor Relations Act
For more than a century, trade unions developed
in the United States without specific Federal legis­
lation protecting their formation and operation.
Except for measures affecting maritime labor and
railroad workers, the Norris-LaGuardia (AntiInjunction) Act o f 1932 and section 7(a) of the
National Industrial Recovery Act of 1933, Con­
gress did not enact any laws dealing specifically
and exclusively with problems of trade union
organization and activities until the passage o f
the National Labor Relations Act of 1935 (the
Wagner A ct). This law guaranteed the right o f
workers to organize and bargain collectively with
their employers and outlawed company unions.
It also forbade as unfair labor practices certain
types of anti-union actions by employers. The
act created a National Labor Relations Board
authorized to enforce the act and to hold elections
among employees to determine which union, if any,
should represent them in bargaining with their
employer.
In 1947, the National Labor Relations Act was
revised, with the general effect o f adding restric­
tions or prohibitions on certain activities and
practices o f labor organizations to the restrictions
already placed on employers in 1935. The 1947
act (called the Taft-Hartley Act) added lists of
actions which unions might not take without vio­
lating the law. Thus, both employers and labor
unions now have lists o f unfair practices which
they are forbidden to follow in their relations with
each other. In addition, the law forbids a closed
shop agreement—that is, a shop in which only
members o f a union may be hired by the employer.
However, it permits a union shop agreement, that
is, where an employer may hire workers who are
not members o f the union, but where the workers
must join the union within a specified period.
In 1959, the Labor-Management Reporting and
Disclosure Act was passed. This law provides for
additional restrictions on union and union officers’
activities and new safeguards for rank-and-file
members, and makes some changes in the TaftHartley Act. It lays down rules for union rela­
tionships with members. Officers must file reports
on their own and their organization’s finances.

Certain conditions o f ineligibility for office are
established. The secondary boycott provisions o f
the Taft-Hartley Act are strengthened. Organi­
zational and recognition picketing are permitted
only under specified conditions.

Employee Dismissals
U.S. laws do not, in general, restrict a private
employer in his right to lay off or discharge a
worker at any time (except that some States forbid
dismissals because of race, creed, or national origin,
and except that it is an unfair practice under the
Taft-Hartley Act for an employer to dismiss a
worker because o f legitimate trade union activity).
Restrictions on an employer’s right to dismiss
workers appear rather in collective agreements
(contracts between union and management)
governing questions of dismissal and layoff.
Typically, the general decision that workers must
be laid off is within the discretion of the employer,
though agreements may establish the order o f
layoff or may require consultation with the union
as to procedure. However, not all nonunion
employees are without protection. Federal, State,
and local government employees are often pro­
tected through civil service and other systems. For
various reasons, many private employers volun­
tarily adopt procedures similar to those in col­
lective agreements.
Under union agreements, an employee may be
discharged for just cause including wrong con­
duct. The union will appeal his dismissal, how­
ever, under the grievance procedure in the
collective agreement, if it believes the dismissal
unfair.
In case of a layoff for such a reason as lack of
business, the latest employee hired is usually the
first to go (seniority rule), but skill and ability to
perform the job often are considered also. Under
many agreements, the laid-off employee has a right
to be rehired when business revives.
The laid-off employee is usually eligible for
State unemployment insurance, and sometimes
also for private benefits as agreed upon in col­
lective bargaining. Many collective agreements
provide for severance or separation pay to em­
ployees permanently dismissed.
41

Trade Unions
Slightly less than 1 o f every 3 employees (wage
and salaried workers) in nonagricultural estab­
lishments was a trade union member in 1960.
Total union membership of 17.5 million was more
than 6 times greater than in 1933, and more than
20 times greater than in 1900. Since 1958,
membership in trade unions has declined slightly.
About 80 percent of the organized workers are
members o f national unions affiliated with the
American Federation of Labor and Congress of
Industrial Organizations (A F L -C IO ). However,
50 national unions and many single firm unions
are not affiliated with this federation. Among the
larger independent unions are the International
Brotherhood o f Teamsters, Chauffeurs, Ware­
housemen and Helpers o f America; United Mine
Workers o f America; United Electrical, Radio
and Machine Workers o f America; International
Union o f Mine, Mill and Smelter Workers; Order
of Railway Conductors and Brakemen; and
Brotherhood o f Locomotive Engineers.
The American Federation o f Labor (A F L ) was
formed in 1886, and grew slowly. Membership
was originally organized largely according to oc­
cupation or craft. During 1935 and 1936, eight
unions, some of which had left the A F L and
some of which were independent, formed a sepa­
rate federation which became known as the Con­
gress o f Industrial Organizations (C IO ). The
CIO emphasized organizing all workers in an
establishment into a single union, rather than
separately according to occupation. With the
passage o f time, however, both the A F L and the
CIO tended to become a mixture of craft and in­
dustrial unions. In 1955, the A F L and CIO
merged to form the A F L -C IO . The merged
federation is composed o f approximately 62,000
local and 134 national and international unions.
Degree o f Organization. The extent o f trade
union organization varies by industry, occupation,
and area. Mining, construction, much of manu­
facturing, transportation, and public utilities are
highly organized. Agriculture, trade, banks, or
insurance companies have little union organiza­
tion. Regionally, union organization is least
prevalent in the South.
About two-thirds or more o f all factory produc­
tion workers are organized. Basic industries like
42

steel, automobile, aircraft, meatpacking, rubber,
and electrical manufacturing are almost com­
pletely organized. The unorganized factory
workers are chiefly in textiles and lumber in the
South and in scattered small manufacturing plants
in all regions.
From an occupational standpoint, the largest
unorganized groups are white-collar workers,
hired agricultural workers, and domestic workers.
Generally considered ineligible for union member­
ship and generally unorganized are military per­
sonnel, proprietors, managers, the self employed,
and farm operators.
Most union members are men, but the propor­
tion or organized women workers is increasing.
Altogether, about 3.3 million women workers were
union members in 1960. Their number and in­
fluence are considerable in the apparel, telephone,
and hotel and restaurant unions.

Work Stoppages
Working time lost in strikes and lockouts varies
from year to year, although it is always small
compared with total time worked. In 1935-39,
the time lost averaged about 0.3 percent o f work­
ing time. Just after W orld W ar II, it rose to
almost 1.5 percent; by 1962, it had declined to
0.16 percent of total work time.
Strikes are, in general, lawful in the United
States, and workers strike from time to time in
order to obtain better wages or better working
conditions. Generally, improvements are obtained
through peaceful collective bargaining.
A few types of strikes, however, are either il­
legal or subject to special regulation. Federal
Government employees are forbidden to strike.
Some of the States and cities ban strikes by State
employees or by workers in public utilities (elec­
tricity, gas, water). Strikes caused by a dispute
between two unions are illegal under the National
Labor Relations Act. Strikes or lockouts that
are deemed to imperil the national health or safety
are subject to special rules, the general intent o f
which is to end the stoppage, or to delay it to
allow more time for conciliation and other efforts
to settle the dispute.

Mediation, Conciliation, and Arbitration
The vast majority of union-management d if­
ferences are settled without strikes; and most

strikes are settled between employer and union
without outside help. However, if outside help is
offered and is accepted by the parties, it often
takes the form o f mediation or conciliation.
Mediators or conciliators may be anyone both
sides are willing to accept. Almost all such serv­
ices are provided by Federal, State, or local gov­
ernment agencies. The Federal Government,
through the Federal Mediation and Conciliation
Service, maintains a corps o f mediators through­
out the country. These officers help to settle many
disputes before they reach the strike stage and
many after a strike has begun. The mediator
talks first with one side and then with the other,
offering suggestions and trying to persuade both
sides to achieve agreement.
Settlement of strikes by an agreement to arbi­
trate, not common in the United States, means
that both sides agree to put the case before some
impartial person or group and to accept the deci­
sion, whatever it may be. Arbitration o f griev­
ance disputes that arise during the term of an
agreement is a common practice, provided for in
most union-management agreements.

Private Supplementary Wage and Personnel
Practices
In addition to the government social insurance
programs for protection against the hazards of
old age, unemployment, and disability, mentioned
on preceding pages, there are in the United States,
as in many other countries, many private arrange­
ments which supplement wages and are classified
by employers as labor expenditures. These extra
benefits are commonly called fringe benefits.
They include private pension and retirement
plans; paid vacations and holidays; supplemen­
tary unemployment benefits; profit-sharing; and
health and insurance plans.
A few supplementary wage and personnel prac­
tices discussed briefly in the following section have
been selected largely for their special interest to
foreign countries.

Private Pension and Disability Retirement
Plans
Private retirement plans are generally con­
sidered as supplements to the Federal Govern­

ment’s old-age, survivors, and disability insurance
program. Although the first private pension plan
formed in the United States was started by the
American Express Co. (now Railway Express
Agency) in 1875, the real expansion o f such plans
began in 1950. There were 720 known plans cover­
ing 2.7 million employees in 1930; 1,965 plans
covering 4.1 million employees in 1940; and 12,330
plans covering 9.8 million employees by 1950. By
1962, about 23 million employees were protected
by private retirement plans in addition to govern­
ment social security. There were approximately
2 million retired workers drawing benefits from
these plans in 1962.
In 1960, an estimated 11 million employees o f
private enterprises were covered by pension plans
under collective bargaining agreements. The
plans include both those negotiated by manage­
ment and labor unions, and those originally estab­
lished by the employers and subsequently
incorporated in labor-management agreements.
Prominent among negotiated plans are those o f
the General Motors Corp., IT.S. Steel Corp., and
industrywide and areawide programs covering
workers in the bituminous coal, men’s and women’s
clothing, and other industries.
Generally speaking, only full-time permanent
employees may participate in private plans. E li­
gibility for a full or partial pension depends in
most cases, on the attainment o f a certain age and
the completion o f a specified period o f service,
usually more than 10 years. The normal retire­
ment age is ordinarily 65, but retirement is not
necessarily compulsory at that age.
Collective bargaining agreements often provide
for retirement benefits (to be added to Federal
Social Security benefits) for employees who have
10 or more years o f service with the company. A
Bureau o f Labor Statistics survey o f 300 pension
plans under collective bargaining, made in the fall
o f 1959, showed that a worker earning $4,800 an­
nually and retiring at age 65 after completing 30
years’ service, will, on the average, receive about
$207 per month, including maximum primary
Social Security benefits o f $127 a month. I f the
retired worker is married, his wife will receive
$63.50 per month.
43

Government
Government Receipts
Federal receipts come in large measure from
direct taxes: 58 percent is derived from individual
income, and 24 percent is from corporate income
taxes. Indirect taxes, chiefly excise taxes, account
for 18 percent. Contributions for social insurance
are set aside in separate trust funds.
The State and local governments depend chiefly
on property taxes and sales taxes for revenue
sources. In addition, the States receive Federal
Government grants-in-aid. (See table 19.)

Government Expenditures
In 1962, 9 percent o f the total United States na­
tional production o f goods and services, public and
private—the gross national product or GNP, went
for military or defense purposes. For govern­
ment, however, as indicated in table 20, defense was
the largest single cost. After national defense, the
largest governmental expenditure was for educa­
tion, followed by natural resources, highway costs,
T able

19.

and interest on debt. Education costs are chiefly
for elementary and secondary schools, and are
carried largely by local authorities.

Federal Income and Estate Taxes
Federal Individual Income Taxes. Citizens and
residents o f the United States are required to pay
a tax on income. The higher the income, the larger
the part of the income that is paid in taxes. The
heaviest tax burden is placed upon those most able
to pay. Thus, although the combined incomes in
1960 o f all persons who had incomes under $5,000
amounted to more than 27 percent o f the total o f
incomes reported, this under-$5,000 income group
paid only about one-sixth of the total income taxes
collected from individuals. The rates on 1962 in­
come for a single person or a married person filing
a separate return were as follow s:
20 percent on the first_________ ____ $2, 000 o f
22 percent on the second--------------------$ 2 ,0 0 0 o f
26 percent on the third______________ $2, 000 o f
— and so on, up to 91 percent on the income

G o v e r n m e n t R e c e ip t s ,

taxable income.
taxable incom e.
taxable income.
above $200,000.

1902
Percent

Amount (millions)
Source
Total

Federal

State and
local

Total

Federal

State and
local

Total receipts.......................................................................................................

$132,890

$85,032

$47,858

100.0

100.0

100.0

Individuals................... ............................. - ..................................................... ..........
Income taxes..........................................................................................................
Estatp (.Federal! and death (State) and gift taxes __
.
Motor vehicle licenses................ ........... ....................................................... ........
Property taxes_______________________________________________________ _
Other tax es____________________________________________________________
Nontax receipts_________________________________________________________
Less tax refunds__ ______________________________________________________

57,686
55,329
2,622
861
404
311
3,397
-5,238

49,029
52,105
2,074

43.4
41.6
2.0
.6
.3
.2
2.6
-3 .9

57.7
61.3
2.4

88
-5,238

8,657
3,224
548
861
404
311
3,309

.1
-6 .2

18.1
6.7
1.1
1.8
.8
.6
6.9

Corporate profit tax accruals________________________________________________

22,169

20,769

1,400

16.7

24.4

2.9

Indirect business tax and nontax accruals.... ........................................... ..................
Excise taxes (Federal) and sales taxes (State and local)......................................
Liquor_____________________________________________________________
Tobacco___ _______ _____ _______________________ ______ _____________
Gasoline and other__________ _____ ____ ___________ ___________
___
General sales tax (State).................................................................................
Local sales tax______________________________________________________
Customs duties.......................................................................................................
Motor-vehicle licenses...... ........... ........ .................................................................
Property taxes_______ ___________________________ _____ _ ____ ______ ___
_
Other tax6s________________________________________________________
Nontax receipts______________________________________________________ _
Tiftss tax re.funds ___
_

53,035
25,721
4,180
3,125
11,493
5,399
1,524
1,212
823
19,045
3,715
2,768
-249

15,234
13,149
3,393
2,029
7,727

37,801
12,572
787
1,096
3,766
5,399
1,524

39.9
19.4
3.1
2.3
8.6
4.1
1.1
.9
.6
14.3
2.8
2.1
-.2

17.9
15.5
4.0
2.4
9.1

79.0
26.3
1.6
2.3
7.9
11.3
3.2

Contributions for social insurance____
__ _ _ _ __
__
__
Federal grants-in-aid to States________________ _______________ _______________

23,900
7,669

20,381

N ote : Receipts of public service enterprises such as TVA are not included.
Also excluded are trust funds, chiefly social security.
Nontax receipts include fines and penalties, rents and royalties, entrance
fees to the National Parks, receipts from sale of documents, State license fees,
tuition of State universities, etc.
Federal grants-in-aid cover grants for highways, agricultural research and

44

1,212

1,122
-249

823
19,045
3,715
1,646

1.4

1.3
-.3

1.7
39.8
7.8
3.4

3,519
7,669

education, vocational education, veterans’ postwar education, public assist­
ance, administration of the unemployment insurance program and the
public employment services, etc.
Source : U.S. Department of Commerce, Office of Business Economics,
Survey of Current Business, July 1963, p. 22.

T able 20.

Government : D irect General E xpenditures ,

by

F unction

and

L evel

G overnment, 1062

Amount (millions)

Function

Percent

Total
Tntn.1 dirf>r*.t expend it,nras l _ _

of

.

. _.

State

Local

$148,415

....

Federal
$88,953

$20,373

$39,089

53,225
1,242
4,101
22,525
10,472
5,070
6,094
2,286
1,100
1,912
13,080
1,666
1,105
1,383
727
1,699
1,482
9,158
10,088

53,225
1,242
4,101
598
151
63
1,793
196

4,268
6,635
2,509
2,161
276

10,823
548
709
1,096
328
641
209
7,162
6,068

973
8
35
91
399
509
254
635
1,620

National defense and international relations__________________________
Space research and technology_______________________________________
Postal service______________________________________________________
Education_________________________________________________________
Highways_________________________________________________________
Public welfare_____________________________________________________
Health and hospitals_______________________________________________
Police pro tection _________________________________________________
Local fire protection
_____________________________________________
Sanitation - ________________________________________ ___________
Natural resources___________________________________________________
Housing and urban renewal_________________________________________
Air transportation__________________________________________________
Water transport and terminals_______________________________________
Pociftl security administration
_ _______________ _____
Financial administration___________________________________________
Generakcontrol.___________________________________________________
Interest on gen eral debt ___________________________________________
Other and unallocable______________________________________________

17,659
3,686
2,498
2,140
1,814
1,100
1,912
1,284
1,110
361
196
549
1,019
1,361
2,400

Total

Federal

State

Local

100.0

100.0

100.0

100.0

35.9
.8
2.8
15.2
7.1
3.4
4.1
1.5
.7
1.3
8.8
1.1
.7
.9
.5
1.1
1.0
6.2
6.8

59. 8
1.4
4.6
.7
.2
.1
2.0
.2

20.9
32.6
12.3
10.6
1.3

12.2
.6
.8
1.2
.4
.7
.2
8.1
6.8

(S). i
.4
2.0
2.5
1.2
3.1
8.0

45.2
9.4
6.4
5.8
4.6
2.8
4.9
3.3
2.8
.9
.5

4.8

1.4
2.6
3.4
6.1

1 Because of rounding, sums of individual items may not equal totals.
2 Less than 0.05 percent.
N ote : Data apply to fiscal year ending during 1962. For the Federal
Government, most school districts, and all but 4 of the 50 States, the fiscal
year ended June 30. Other governments end their fiscal year at various

times. Local government units are of various types: county, city, township,
school district, and special district.

Taxes payable by a man and wife with two chil­
dren and who file a joint return vary according to
their income. For the year 1962, they were as
follow s:

Thus, an individual without dependents can earn
up to $675 a year before he becomes liable to pay
income tax; a married man with a wife can earn
up to $1,325, and a married man with a wife and
two dependent children, up to $2,675 before pay­
ing any Federal income tax. (Data are for 1962.)
I f the taxpayer works for an employer, the
employer is required to withhold towards pay­
ment of Federal income tax a certain amount of
the wage or salary due the employee, and to pay
the amounts ^withheld to the Director of Internal
Revenue. The amount withheld varies with the
amount of the salary and the number o f exemp­
tions the employee claims on his withholding
exemption certificate. It is computed to yield
slightly less than the total tax that will presum­
ably be due at the end of the year. The taxpayer
must pay directly to the U.S. Treasury any re­
mainder that is due; if large deductions or small
income should result in a total tax bill that is less
than the amount withheld, the taxpayer receives a
refund from the Treasury.

Gross Income

$2,500............................................ $6,000.................................... ............
$12,000..............................................
$30,000..............................................
$70,000..................................
$132,000____
$300,000............................................

Tax

0
$600
1,784
7,058
26,812
65,940
194,804

Tax as percent
of income

.................
10
15
24
38
50
65

N ote : In calculating the tax, deductions for Interest paid, contributions,
medical expenses, etc., have been assumed to be 10 percent of adjusted gross
Income for ail levels of income. Deductions are often greater, however,
for taxpayers in the lower income groups who itemize their deductions.
For example, at the $6,000 level, deductions often run as high as a fifth,
rather than a tenth of income.

In calculating taxable income, allowance is made
for certain deductions and exemptions. The tax­
payer may subtract from his gross income specified
expenses incurred in producing the income and
may make other specified deductions, for example,
charitable contributions, interest on loans, losses,
etc. Or, instead o f specifying his deductions, he
may take a standard deduction o f 10 percent of
his adjusted gross income, subject to certain limi­
tations. He is also entitled to a $600 exemption
for himself and the same exemption for his wife
and for each dependent, and to an additional ex­
emption if he is over 65 years o f age, or is blind.

S ource : U.S. Department of Commerce, Bureau of the Census, Govern­
ment Finances in 1962.

Federal Corporation Income Taxes. Most cor­
porations pay a “ normal” tax equal to 30 percent
o f their taxable income, and a “ surtax” equal to
22 percent of taxable income in excess of $25,000.
Checks on Evasion. Any tax report may be in­
vestigated for correctness by agents of the Treas45

ury. Those showing large incomes usually are
investigated. Others are selected for investiga­
tion if there is reason to question their accuracy.
In addition, other reports are selected for check­
ing, more or less at random. Many of the errors
that are found are unintentional or result from
a misunderstanding of the tax laws.
Federal Estate Tax. I f the gross estate of a citi­
zen or resident of the United States is valued at
more than $60,000 on the date o f death, a Federal
estate tax return must be.filed. (There must be
included in the gross estate the value of the prop­
erty transferred to others before death, such as
transfers made in contemplation of death, trans­
fers with retained life estate,5 transfers taking
effect at death, and certain revocable transfers.)
A tax is imposed at graduated rates upon the tax­
able estate, if any. The taxable estate is the
amount remaining after subtraction of a $60,000
specific exemption and of other authorized deduc­
tions (such as debts, funeral expenses, bequests to
charities and, subject to certain limitations, to sur­
viving spouse, etc.) from the gross estate. In case
o f a deceased nonresident alien, property situated
in the United States is subject to tax, with some
exemptions.
Federal estate tax rates begin at 3 percent on the
first $5,000 o f the value of the taxable estate and
increase progressively to 77 percent on the part of
the value o f the taxable estate which exceeds $10
million. Credits are authorized against the tax
for death taxes paid to a State or territory (and,
under certain circumstances, for death taxes paid
to foreign countries). Examples of Federal es­
tate taxes follow :
Taxable estate

Total tax

$100,000............
$200,000............

i $20,700
i 50,700 ($20,700 plus 30 percent of the excess above

$5,200,000.........

12,602,200 ($2,468,200 on the $5,000,000 plus 67 percent
of the $200,000).

$100,000 ).

1 Before any authorized credits for State inheritance taxes, etc.
Sou rc e : U.S. Treasury Department, Internal Revenue Service.

Federal, State, and Local Governments
The Federal Constitution, which went into ef­
fect in 1789, established the relationship between
Federal and State Governments.
The Constitution gives the Federal Government
power, among other things, over the issuance of
46

money, over defense and the military forces, im­
ports and exports, and foreign relations. It also
empowers Congress “ To regulate commerce with
foreign nations, and among the several States”—
the interstate commerce clause. A series o f pro­
tections for the individual against arbitrary gov­
ernment action was likewise written in as the first
10 amendments, and is known as The Bill o f
Bights.
A central feature was the proviso that “ The
powers not delegated to the United States by the
Constitution, nor prohibited by it to the States,
are reserved to the States (italics supplied) re­
spectively, or to the people.” Thus many mat­
ters that in other countries are under the juris­
diction o f the national government are in the
United States the business o f the separate States.
For example, the Constitution had to be amended
before the Federal Government could impose in­
come taxes. Age and other qualifications for vot­
ing are established by State law, and vary
somewhat from State to State. Cities (except
Washington, D.C., which is governed by Con­
gress) receive their powers from the States, not
from the Federal Government ; the Federal Gov­
ernment has no jurisdiction over them.
More than 100,000 governmental units are in
operation in the United States—Federal, State,
county, township, city and village units, school
and other special-purpose districts, etc. A large
proportion exist through State legislation and are
directly or indirectly under the authority o f the
States. The school system, for instance, is in re­
ality many school systems, one operated by each
State and one in the District of Columbia as well
as Puerto Rico, the Virgin Islands, and other U.S.
possessions. There is no national system o f edu­
cation, though the Federal Government maintains
an Office of Education in the Department o f
Health, Education, and Welfare to aid and advise
the States.
The “ interstate commerce” clause of the Con­
stitution (broadly interpreted by the courts in re­
cent years) furnishes authority (not specifically
delegated to the Federal Government) for many
actions by the central Government. Federal reg­
ulation o f working conditions, for instance, ex­
tends to workers engaged in commerce or trade
between the States, or in the production of goods*
* P roperty given aw ay during donor’s life over which donor
has retained control.

O R G A N IZ A T IO N O F F E D E R A L G O V E R N M E N T

L E G IS L A T IV E

E X E C U T IV E

JU D IC IA L

for interstate commerce, or in any process or
occupation necessary to the production of goods
for interstate commerce. This interpretation o f
interstate commerce is broad enough to place a
majority o f the wage and salaried workers in
industry and commerce under the Fair Labor
Standards Act (p. 39).

How the Federal Government is Organized
The Federal Government is organized in three
coordinate branches: legislative, executive, and ju­
dicial. Each of the 50 States has a somewhat
similar form o f organization, with a governor and
legislature, and a State system of courts.
The President’s Cabinet is composed o f the Sec­
retaries, or chiefs, o f the Departments. The Secre­
taries are responsible to the President. Congress
confirms their appointments. The Vice President
presides over the Senate.
The members o f each branch o f the Government
are selected in a different way and for a different
number o f years. The President is elected for a
term o f 4 years. Members o f the House of Rep­
resentatives are elected for 2 years, and Senators
for 6 years. Justices o f the Supreme Court are
appointed by the President with the consent of the
Senate, and hold office for life (or as expressed
“ during good behavior” ) .
The Government thus has what is known as a
system o f checks and balances. Every bill (pro­
posed law) must be passed by both the House and
the Senate, and signed by the President. The
President can veto a bill, but a veto can be over­
ridden by a two-thirds majority o f both the House
and the Senate. A law can be challenged before
the U.S. Supreme Court if it is believed to be not
in accord with the Constitution.
Political parties, although not mentioned in the
Constitution, originated in the early years of the
Republic. Only two major parties have been im­
portant. The political party having a majority
in either House o f Congress at the beginning o f a
session chooses as chairman the committee mem­

48

ber with the greatest seniority on that committee.
New committee members are chosen after they
have indicated interest in the committee’s subject
matter. The work of Congress is done to a con­
siderable extent through the committees. Legisla­
tion may be proposed by the President or by
Government departments, but must be initiated
and passed by Congress.
In the conduct o f foreign affairs, the Congress
shares some o f the power o f the executive branch.
The President has overall responsibility for direc­
tion o f the foreign policy o f the U.S. The De­
partment o f State advises the President on foreign
policy and has primary responsibility for initiat­
ing and implementing foreign policy. The Presi­
dent appoints ambassadors, subject to the Senate’s
confirmation. The executive branch negotiates
with foreign governments, but treaties must be
ratified by a two-thirds vote o f the Senate. The
basic foreign policies may originate in the execu­
tive branch; however, most policies have a finan­
cial aspect and therefore require appropriations by
Congress. The President is also Commander-inChief o f the Armed Forces. A declaration o f war
must be passed by both Houses o f Congress.
National elections for all members o f the House
of Representatives and for one-third o f the Senate
are held every 2 years (in even-numbered years,
on the Tuesday after the first Monday in Novem­
ber) ; for the President and the Vice President,
every 4 years. I f a senator dies or resigns during
his term, the Governor o f the State, in most cases,
appoints a successor. I f a representative dies or
resigns, a special election is held in the district
he represents.
Each State elects 2 senators, a total o f 100. In
1963, there were 435 members o f the House o f Rep­
resentatives; the number elected from a State
varies according to shifts in State populations.
New York had the largest number o f representa­
tives, 41; California next, with 38; Pennsylvania
was third with 27. Puerto Rico elects a nonvoting
Resident Commissioner to the House o f Represent­
atives.

Women Workers
Over the years, more and more women work
full or part time, and women are forming an in­
creasingly important part o f the labor force. In
1900, only 1 out o f every 5 women was working for
pay or profit. In 1962, on the average, over 24
million women, more than 1 out o f 3, were in the
labor force (economically active), and women con­
stituted one-third o f the total labor force. W om­
en’s participation is expected to rise, until by 1970,
about 38 percent will be in the labor force, a total
o f nearly 30 million.

the wife will work. Most o f the married working
women have no children of preschool age.
Although some women are employed in nearly
every occupation, women tend to concentrate in
certain jobs. Clerical work is an important field
for women— almost one-third of all employed wo­
men are clerks, stenographers, secretaries, etc.
Occupations employing 200,000 or more women,
and in which women constituted half or more o f
the total number o f workers in 1960 were as
follow s:
Women constituted nine-tenths or more

Percent of all women
who were in the labor Women as percent of
force
labor force

1900_______________
1920_________ _____
1940. .........................
1945_______________
1950_______________
1958_______________
1962_______________

18
20
25
36
29
33
33

20
23
28
37
32
36
37

Increased labor force participation by women
has resulted from changing social customs with
respect to women’s employment, better oppor­
tunities for education and training, increased
opportunities for paid employment in urban com­
munities, elimination o f many o f the burdens of
household activities and desire to contribute to the
family budget. Generally, there are noticeable
differences in labor market participation o f women
as between rural and urban areas, and among
racial, nationality, and income groups.
More than two-fifths o f the single women, but
only one-third o f those married women with hus­
bands present, were in the labor force in March
1962. The percent o f each group in the labor force
then was as follows:
Marital status

Percent

Single women____________________________________
Married women (husband present)______________
Married women (husband absent)________________
Widowed or divorced women---------------------------------

42
33
49
37

In the case o f almost one-third o f the married
couples in March 1962, both husband and wife
were working. Before W orld W ar II, when it
was much less customary for the wife to work, this
proportion was only about one-ninth (data for
1940). Studies suggest that, in general, the higher
the husband’s income, the less the probability that

Professional nurses
Babysitters
Secretaries
Private household workers (not elsewhere classified)
Telephone operators
Stenographers
Typists
Sewers and stitchers (factory)
Women constituted about four-fifths

Beauticians
Waitresses
Teachers (elementary schools)
Bookkeepers
Cashiers
Women constituted about three-fourths

Apparel and accessory operatives (factory)
Attendants, hospitals and institutions
Office-machine operators
Laundry and dry-cleaning operatives
Women constituted one-half to two-thirds

Cooks, except private household
Packers and wrappers (not elsewhere classified)
Sales clerks, retail trade

The number o f women working as domestic
workers in private families has greatly declined.
In 1900, there was one domestic worker, on the
average, to every 11 households; by 1961, there
was one such worker to 24 households. The
housewife finds it increasingly difficult to obtain
domestic help, and usually cares for her family
without paid assistance.
The 87th Congress (1961-62) included 20
women among its members. Nearly all States
have some women legislators, also.
Women earn less, on the average, than men.
For year-round full-time workers with work ex­
perience, the 1960 average income was $2,531 for
females and $4,919 for males. These differences
appear also in the major occupational groups.
49

The median income o f all women and girls who
had full- or part-time work experience in 1960
was $1,829; that o f men and boys, $4,500. As pre­
viously noted, however, many women prefer to
work only part time, or work for a part of the
year.
Women’s earnings are less than those of men for
many other reasons. Many women work for only
a few years when young, and perhaps return to the
labor force after an interval o f years devoted to
household and family responsibilities; such women
lack seniority in their place o f employment. For
the same reason, many women fail to gain long
experience as they tend also to have less training
than men; they usually occupy less skilled and

50

lower paid positions. Fewer women work in the
highly unionized, highly paid industries, such as
steel or construction; more o f them work in oc­
cupations where pay is less for both men and
women. Finally, there is some tendency to pay
less to a woman than to a man for identical work.
However, some States have had laws establishing
the principle o f equal pay for equal work. In
1963, Congress passed an equal pay law. (See
p. 50.) Some important contracts between trade
unions and management require equal pay for
equal work, or set the pay rates for each job with­
out regard to the sex o f the worker performing it.
About 3,300,000 women were members o f trade
unions in 1960.

Negroes in the Economy o f the United States
An important development o f the past several
decades in the United States has been the steady
improvement in the status o f Negroes. Although
they still lag behind whites in education, income,
occupational level, and steadiness o f employment,
the historical differences between the two have
narrowed.
As indicated earlier, nearly all the nonwhite
residents o f the United States are Negroes. The
term non whites is therefore used in this discussion
when data are not available for Negroes alone.

Populatibn
The nonwhite population has varied between
10 and*12 percent o f the United States total since
1900. Birth rates are higher among Negroes than
among whites, but death rates are also higher.
Decreases in the death rate, however, have been
greater for Negroes, especially since 1935, which
largely accounts for the slight increase in Negroes
as a percent of the total population in recent years.

vances and a declining death rate among non­
whites. The greatest 1950-60 gains in nonwhite
population occurred in California, Illinois, Michi­
gan, and New York.

Labor Force
Almost all men aged 25 to 54, both white and
non white, are in the labor force (table 21).
Among women, relatively more nonwhites than
whites have traditionally sought jobs. However,
these differences are not as great as they were a
few years ago. A major factor in reducing the
differences has been the exodus o f Negroes from
sharecropping and other small-scale farming
where, more than in other types o f enterprises,
the very young and the very old tend to be at
work. In addition, the proportion o f school age
non whites enrolled in school, and hence out of the
labor market, has increased more rapidly than
the proportion o f white youths.

Unemployment
Migration
Negroes, like whites, move about a good deal.
Both groups tend to move from country to city,
and by 1960, about 7 out o f every 10 persons, white
or non white, lived in urban communities (places
having 2,500 or more population).
Percent living in urban communities
White

1900...........................................
1920________________________
1940._____
1950______ _________________
1960________________________

Nonwhite

43.0
53.4
57.5
64.1
69 5

22.6
33. 8
47.9
60.6
72. 4

Under the impetus of economic opportunities
during W orld W ar II, many Negroes moved away
from the South, especially from southern farms,
and migrated to the North or to the West Coast.
Most Southern States registered fewer nonwhites
in the 1950 census than in 1940. This outward
movement continued during the fifties, but at a
somewhat reduced rate. However, some Southern
States in 1960 recorded an increase in nonwhite
population presumably the result o f medical ad­

Unemployment is more common among Negroes
than among whites. For example, a third o f the
non white men and boys who worked at some time
in 1961 (outside o f agriculture) suffered some
unemployment or layoff during the year, com­
pared with less than a fifth o f the whites.
Percent of males
unemployed
Non-

White white
All nonagricultural work__________ ;________ 17. 5 33.2
M anufacturing____________________________ 18.1 38.8

Differences result in part from the temporary
nature o f many unskilled jobs, in which a large
proportion of Negroes are employed, and from
the often lower seniority status o f Negroes owing
to their more recent entry into factory and office
work.
Unemployment rates vary with age in both white
and Negro groups. In 1962, with 4.6 percent of
all white males unemployed, unemployment at
ages 14-17 and 18-19 was above 12 percent each
(table 22). But more young non whites in these
age groups, girls as well as boys, were unemployed.
51

T a b l e 21. P e r c e n t o f t h e C i v i l i a n P o p u l a t io n i n t h e
L abor F orce , b y C olor , A ge , a n d S e x , A n n u a l A ver ­
a g e s , 1951 a n d 1962

White
1951

1962

Number
(thousands)

Female

Male
Age

Nonwhite
1962

1951

Nonwhite

White
1951

1962

84.0

78.6

83.7

76.4

32.6

35.6

44.9

45.6

49.2
88.4
97.0
97.6
96.0
87.4
44.5

40.8
86.5
97.4
97.9
96.0
86.7
30.6

55.3
88.7
95.7
96.4
95.1
84.6
49.5

38.4
89.3
95.3
94.5
92.2
81.5
27.2

32.5
46.7
33.6
38.0
38.0
26.8
8.5

29.7
47.1
34.1
42.2
48.9
38.0
9.8

28.9
45.4
51.1
55.8
55.5
39.8
14.0

24.0
48.6
52.0
59.7
60.5
46.1
12.2

N o te : Figures exclude persons in institutions.
S o u r c e : U.S. Department of Commerce, Bureau of the Census, and U.S.
Department of Labor, Bureau of Labor Statistics.

Occupational Grouping
Occupational differences between Negroes and
whites are still large, but in the past 22 years,
Negroes have raised their occupational level ap­
preciably faster than have whites.
In 1962, more than a fourth o f the white males
working—but only 8 percent of the non whites—
were in professional or managerial occupations
outside o f agriculture (table 23). Over half the
nonwhite men were in nonfarm manual occupa­
tions, but only 9 percent were skilled craftsmen or
foremen as compared with near 20 percent of the
whites. More than 14 percent of the non white men
were in service occupations and almost as many
were still doing farm work, compared with about 6
and 9 percent, respectively, for the whites. Many
o f those in agriculture, both white and non white,
were operating their own farms, but the percent
o f farm laborers was greater among non whites.
T able 22. U nemployed a s P ercent of Civ ilia n L abor
F orce, by A ge, A n n ual A verage, 1962
Male
White

Female

Non­
white

1940 1 1962

1962
White

14-19 years...................
20-24 years...................
26-34 years...................
35-44 years...................
45-54 years...................
65-64 years...................
65 years and over........

Age

Major occupation group and
sex

White

Non­
white

Total, 14 years and over.__

4.6

11.0

5.5

11.1

14-17 years.....................................
18 and 19 years...............................
20-24 years.....................................
25-34 years.....................................
35-44 years.....................................
45-64 years.....................................
65 years and over..........................

12.1
12.7
8.0
3.8
3.1
3.7
4.1

19.9
21.8
14.6
10.5
8.6
8.8
11.9

11.7
11.3
7.7
5.4
4.5
3.6
4.0

24.1
31.2
18.2
11.5
8.9
5.9
3.7

S o u r c e : U.S. Department of Labor, Bureau of Labor Statistics.

Percent

1940 | 1962

White

Nonwhite

1962

1951

Total, 14 years
and over.........

52

T a b l e 23. D i s t r i b u t io n o f E m p l o y e d P e r s o n s , b y
M a j o r O c c u p a t io n a l G r o u p , C olor , a n d S e x , A p r i l
1940 a n d A p r i l 1962

Non­
white

Total............................. 40,104

4,079

M ales

Professional, technical, and
kindred workers.................
Managers, officials, and pro­
prietors, except farm_____
Clerical and kindred workers.
Sales workers.........................

100.0

100.0

100.0

100.0

4,924

181

5.9

12.3

1.9

4.4

6,119
2,891
2,576

157
255
65

10.6
7.1
6.7

15.3
7.2
6.4

1.6
1.2
.9

3.8
6.2
1.6

7,982

Craftsmen, foremen, and
kindred workers.................
Operatives and kindred work­
ers.......... .............................
Laborers, except farm and
mine....................................

367

15.5

19.9

4.4

9.0

7,497

968

18.8

18.7

12.2

23.7

2,352

895

7.5

5.9

20.5

21.9

Service workers, except pri­
vate household...................
Private household workers..

2,305
27

600
22

5.8
.2

5.7
.1

12.4
2.9

14.7
.5

Farmers and farm managers..
Farm laborers and foremen..

2,379
1,052

221
349

14.0
6.8

5.9
2.6

21.3
19.9

5.4
8.6

Occupation not reported.......

.7

1.0

F em ales
2,727

100.0

100.0

100.0

100.0

2,740

201

14.3

13.8

4.3

7.4

1,103
6,669
1,625

45
279
61

4.3
24.6
8.0

5.5
33.5
8.2

.8
1.0
.6

1.7
10.2
2.2

Total............................. 19,914
Professional, technical, and
kindred workers.................
Managers, officials, and pro­
prietors, except farm..........
Clerical and kindred workers.
Sales workers.........................
Craftsmen, foremen, and
kindred workers.................
Operatives and kindred
workers...............................
Laborers, except farm and
mine....................................

220

18

1.2

1.1

.2

.7

2,891

397

20.2

14.5

6.6

14.6

90

22

.9

.5

.9

.8

Service workers, except pri­
vate household...................
Private household workers. _

2,752
1,259

613
1,016

11.3
10.8

13.8
6.3

10.5
58.0

22.5
37.3

Farmers and farm managers.
Farm laborers and foremen..

130
437

7
66

1.2
1.2

.7
2.2

3.2
12.8

.3
2.4

Occupation not reported

2.0

1.1

N ote : 1962 estimates are not com pletely comparable with 1940.

S o u r c e : U.S. Department of Commerce, Bureau of the Census, and U.S.
Department of Labor, Bureau of Labor Statistics.

These percents represent a gain in occupational
status for both white and nonwhite men, but par­
ticularly for the latter. No marked change has
been noted in the skilled and semiskilled bluecollar occupations in the last few years, but
Negroes have generally held the gains made dur­
ing W orld War II, when many moved into the
semiskilled factory operative and related occu­
pations.
The percent of non white men working as skilled
craftsmen or foremen more than doubled between
1940 and 1962, as did the percent in professional

T a b l e 24. N o n w h i t e E m p l o y m e n t a s P e r c e n t o f
T o t a l E m p l o y m e n t i n E a c h M a j o r O c c u p a t io n a l
G r o u p , b y S e x , A p r i l 1940 a n d A p r i l 1962

Major occupational group

Nonwhite
men as
percent of
employed
men

Nonwhite
women as
percent of
employed
women
1962

1940

1962

1940

Total employed.............................- ..................... —

9.0

9.2

13.9

10.0

Professional, technical, and kindred workers-----Managers, officials, and proprietors, except farm ..
Clerical and kindred workers--------------------------Sales workers--------------------- -------------------- ------

3.1
1.5
1.6
1.4

3.5
2.5
8.1
2.5

4.6
2.8
.7
1.1

6.8
3.9
4.0
3.6

Craftsmen, foremen, and kindred workers---------- 2.7
6.1
Operatives and kindred workers----- ------- --------Laborers, except farm and mine------- ---------------- 21.2

4.4
11.4
27.6

2.3
5.0
(0

7.6
12.1
(0

Service workers, except private household---------- 17.4
Private household workers...................... .............. 0)

20.7
(0

13.1
46.5

18.2
44.7

Farmers and farm managers................................. 13.1
Farm laborers and foremen----------------------- ------ 22.5

8.5
24.9

30.2
62.9

5.1
13.1

1 Figures not shown where base in either year is less than 100,000.
So u r c e : U.S. Department of Commerce, Bureau of the Census, and U.S.
Department of Labor, Bureau of Labor Statistics.

and technical occupations and the percent o f non­
farm managers, officials, etc. In each o f these
groups, nonwhites gained faster than whites.
Probably some o f the Negro men who left the farm
became unskilled laborers in urban areas, but the
rise in the percent at such work was small; the
percent in service jobs was virtually unchanged.
The most common occupation o f nonwhite
women in 1962, as in 1^40, was domestic service
work. However, the number at such work fell
from 58 to 37 percent o f non white women workers.
The number o f women in service work outside
private households rose above 22 percent and the
number o f factory operatives to almost 15 per­
cent—more than double in each case. Far more
o f the nonwhite women were clerical workers by
1962, though they still constituted only a fraction
o f the corresponding proportion o f whites. A big
drop occurred in the percent o f nonwhite women
doing farm work.
These shifts resulted, by April 1962, in giving
nonwhite men many more o f the semiskilled fac­
tory operative and clerical jobs and more o f the
professional and technical, managerial, crafts and
foremen, and sales jobs (table 24). There were
also relatively more nonwhite laborers and service
workers in 1962 than in 1940. Nonwhites had left
the farms, meanwhile, in relatively greater
numbers than whites.

Wage and Salary Income
Since earnings vary with occupation, the rela­
tive rise in Negroes’ occupational levels (table
25), as well as their continuing concentration in
the less skilled jobs, is reflected in their earnings.
Whites average higher earnings than Negroes, but
the gap is somewhat less than in earlier years. In
1939, nonwhite male workers earned, on the aver­
age, about 41 percent as much as white; by 1960,
nearly 60 percent. The corresponding percents
for nonwhite female workers were about 36 and 50.
These averages are reduced by the inclusion of
many part-time or part-year workers. I f figures
are limited to those who worked a full year, non­
whites do relatively better than when part-time
earnings are included. For full-year full-time
work, nonwhite males in 1960 averaged $3,789,
which was about 67 percent o f the rate for white
males.
When family rather than individual incomes are
compared, the Negro-white difference is somewhat
less, as a higher proportion o f Negro family mem­
bers are in the labor force.

Government Employment
The number o f nonwhites working in Federal,
State, and local government rose from 214,000 in
1940 to more than 1 million in 1962, a fivefold in­
crease. The proportion o f non whites to all govT a b l e 25.

M e d ia n W a g e a n d S a l a r y I n c o m e s o f W h i t e
a n d N o n w h i t e P e r s o n s , 1939-60
[14 years and over]

Male

Female

Year

Nonwhite as
percent of
white

White

All persons with wage
or salary income:
1939..........................
1947..........................
1957..........................
1958........... ..............
1959.........................
1960..........................
Year-round full-time
workers with wage or
salary income:
1939..........................
1957..........................
1958..........................
1959..........................
1960..........................

Non­
white

White

Non­
white

Male

Female

$1,112
2,357
4,396
4,569
4,902
5,137

$460
1,279
2,436
2,652
2,844
3,075

$676
1,269
2,240
2,364
2,422
2,537

$246
432
1,019
1,055
1,289
1,276

41.4
54.3
55.4
58.0
58.0
59.9

36.4
34.0
45.5
44.6
53.2
50.3

1,419
4,950
5,186
5,456
5,662

639
3,137
3,368
3,339
3,789

863
3,107
3,225
3,306
3,410

327
1,866
1,988
2,196
2,372

45.0
63.4
64.9
61.2
66.9

37.9
60.1
61.6
66.4
69.6

S o u r c e : U.S. Department of Commerce, Bureau of the Census.

53

eminent employees rose from 5.1 to 12.1 percent.
Estimated government employment in A pril of
selected years shown below covers all government
services, including blue-collar workers hired di­
rectly by government agencies, and teachers:

54

mO

1956

I960

1961

196$

Government employees,
total................... ......... 4,202,000 7,177,000 8,520,000 8,150,000 8,647,000
Nonwhites employed in
government.................. 214,000 670,000 855,000 932,000 1,046,000
Nonwhites as percent of
total..............................
5.1
9.3
10.0
11.4
12.1

Cooperatives
Cooperatives are much less prominent in the
United States than in some countries, though few
countries have developed as many different kinds
of cooperative enterprise. For example, coopera­
tives are found in agriculture, retail trade, medical
care, insurance, credit, housing, rural telephone
and electric service, nursery schools, student hous­
ing and bookshops. In 1962, about 15 million fam­
ilies out o f a total o f 46 million in the country were
reported to be members of cooperatives. This,
however, is a rough estimate, since cooperatives
are not required to register or report to a central
government agency, and there is no central overall
federation embracing all types o f cooperative so­
cieties which collects statistics on their activities.
The Cooperative League o f the U.S.A., orga­
nized in 1916 as a federated body to serve as a
national service agency for its members, is the
closest counterpart to the European central coop­
erative federation; but not all cooperative organi­
zations belong to it. The League is composed o f
regional and State wholesale cooperatives and in­
surance companies, the Credit Union National
Association, the National Rural Electric Coopera­
tive Association, Group Health Association o f
America and National Cooperatives, among others.
The Cooperative League belongs to the Interna­
tional Cooperative Alliance and in recent years has
played an increasing role in this organization.
The core o f the cooperative movement in the
United States, both producer and consumer, is in
agriculture. The bulk o f cooperative purchasing
and almost all cooperative marketing is done by
farmer associations; about 3 out o f 5 farmers be­
long to cooperatives. ( Since many farmers belong
to more than one cooperative association, the total
of 7.2 million members o f farm marketing, supply,
and related co-ops in 1960-61, was greater than the
total o f about 3.8 million farm operators.)
Roughly 20 to 25 percent o f farm products are
handled by cooperatives at some point in the mar­
keting or other distribution process. Cooperatives
do about 15 percent o f the total farm supply busi­
ness. Cooperative associations also supply various
services closely related to farm marketing such as
trucking, storage, grinding, cold storage, and cot­
ton ginning.

Another important group o f cooperatives in
rural areas is the rural electric cooperatives, which
borrow money from the U.S. Rural Electrification
Administration (R E A ) to finance distribution,
generation, and transmission facilities in rural
areas. At the end o f 1962, more than 5 million
rural consumers received central station electric
service. R E A has estimated that nearly 98 per­
cent o f farms now receive electricity, more than
half o f them through cooperatives. The R E A aided systems in 1961 furnished more than 9 per­
cent o f total U.S. residential or domestic consump­
tion o f electricity. R E A also makes loans to coop­
eratives for the construction o f rural telephone
lines.
Credit unions have expanded rapidly since
W orld W ar II. They are most often formed
among persons with a common bond, such as the
same employer, a neighborhood, a college, or a
church, for the purpose o f making small personal
loans to members at low rates, and to encourage
thrift. A t the end of 1961, nearly 13 million per­
sons were members o f the more than 20,000 credit
unions. Loans outstanding (excluding mortgage
loans on real estate) totaled $4.3 billion, about 10
percent o f the installment credit extended to con­
sumers by all types o f financial institutions and
retail outlets. The loans to a total o f $5.5 billion,
were made to members who have invested in the
credit unions. The aggregate amount o f these
loans exceeds the total invested in the postal sav­
ings system, but is only a fraction o f the amounts
in savings and loan associations or in mutual sav­
ings banks.
In recent years, consumer cooperatives have been
extended into the field o f medical care. Coopera­
tive medical care plans feature prepayment, com­
prehensive care, group practice, ownership and
management o f facilities by voluntary member as­
sociations, and membership control o f the economic
and business aspects. (Physicians and dentists
direct the medical and dental services.) Although
not all cooperative medical care plans provide at
the outset for group practice, that is their ultimate
aim. In 1961, nearly 8 million persons were mem­
bers o f nonprofit voluntary prepayment health
plans. Many o f them belonged to plans sponsored
55

by community organizations or by employeremployee welfare associations. Over 3.5 million
had access to group practice clinics. In some parts
o f the country, notably in New York, on the West
Coast, and in the northern States from Wisconsin
westward, cooperative and other types o f con­
sumer-controlled group practice plans contribute
substantially to the medical care o f the population.
Affiliates o f the Group Health Association o f
America, Inc., represent some 5 million consumers
in the United States, Canada, and Mexico. The
Association helps interested groups to establish
consumer-sponsored group practice prepayment
medical care plans, sets standards, etc.
Cooperatives exist also in the field o f housing.
Since the end o f World W ar II, cooperative hous­
ing has experienced a small boom in the United
States. The National Housing Act was amended
in 1950 to add Section 213 which extended the
Federal mortgage insurance program to coopera­
tives. A t the end o f 1961, some $890 million in
mortgages had been insured under this program,
on 41,700 management-type cooperative dwelling
units (mainly apartments) and 31,700 sales-type
cooperative units (individual houses which on com­
pletion by the cooperatives were sold to individ­
uals). Many o f the management-type projects
are in New York City. Cooperatives have also
been built under State laws permitting partial tax^
rebates to limited-dividend or nonprofit housing
companies.
In the field o f retail trade, in 1961, coopera­
tives did the most o f their business in feed, fertil­
izer, and farm and garden supplies. They were
o f some importance also in gasoline service sta­
tions, fuel and fuel oil, and farm machinery sales.
According to a report by the Cooperative League
o f the U.S.A., furthermore, 46 major cooperative
grocery centers with 154,000 members did $94 mil­
lion worth o f business in 1961-62. Many o f the
centers also operated general merchandise, drug,
or other types o f business. The total sales o f sev­
eral hundred smaller co-op food stores, many o f
them in the upper Midwest, also were considerable.
American cooperatives generally do not receive
Government assistance. Farm cooperatives, how­
ever, may borrow from 13 banks for cooperatives
which were organized by the Federal Government
in 1933, as part o f the farm credit system; the
Government has not extended similar aid to non56

T able

26.

Type

Consumer
Cooperatives,
A ssociation , 1961

of association

Credit unions.........................................
Electric power cooperatives........................
Rural telephone cooperatives.....................
Nonprofit voluntary prepayment health
plans.................................................
Community sponsored.........................
Employer-employee union............
Housing.................................................
Farmer retail supply cooperatives2..........
Producers’ goods................................
Petroleum products..........................
Meats and groceries....................
Other supplies............................

by

T ype

of

Num­
Volume
ber of
Number of business
associa­ of members (thousands)
tions
20,612
889
208

0

)

1,557
7 ,016
3 4 ,4 0 0
2 ,7 9 8
896
6 ,214

12, 903,443
4 , 533,512
380 ,848
7, 961,700
3 , 232 ,300
4 , 729,400
7 3 ,439

(*)

<
*)

1

h)

< /i O O 091
fc
K
$1, O0«, ZO1

603 645
3 2 *303

*U , O O
U U
147,600
25 2 ,9 0 0
8 9 0 ,1 6 2
2 , 472 ,2 8 6
1, 511,714
621 ,9 1 0
51 ,9 3 7
28 6 ,7 2 5

1 Data not available.
2 Data are for year 1960-61 and are preliminary. Because many coopera­
tives do more than one type of business, totals are less than the number that
would be obtained by adding the number of cooperatives handling individual
items or performing individual services.
3 Approximate number only.
Sources and notes : Data, compiled by U.S. Department of Labor,
Bureau of Labor Statistics from agencies listed below, are published annually
in the Statistical Abstract of the United States, U.S. Department of Commerce.
Credit unions: U.S. Department of Health, Education, and Welfare, Social
Security Administration. “ Volume of business” represents loans out­
standing at end of year.
Electric power cooperatives: U.S. Department of Agriculture, Rural Elec­
trification Administration. Distribution cooperatives currently borrowing
from REA, average number of consumers served, and 1961 revenue from elec­
tric service.
Rural telephone cooperatives: U.S. Department of Agriculture, Rural
Electrification Administration. Cooperatives currently borrowing from
REA, number of subscribers at end of year, and 1961 revenue.
Health plans: U.S. Department of Health, Education, and Welfare, Social
Security Administration. “ Volume of business” refers to income of the
associations.
Homing: Federal Housing Administration. Cooperative projects insured,
housing units, and value of mortgages, cumulative from beginning of section
213 program, in 1950, through December 31,1961.
Farmer supply cooperatives: U.S. Department of Agriculture, Farmer
Cooperative Service.

farm societies. Rural electric and telephone co­
operatives also receive Government loans through
the R E A at lower rates than would be available
through private credit channels. Cooperatives,
whether farm or nonfarm, are not taxed on earn­
ings distributed to patrons in proportion to their
purchases, since these returns do not constitute in­
come to the cooperative. Some farm cooperatives
qualify for tax-exempt status and these may also
deduct from their gross taxable income the
amounts paid as interest or dividends on their capi­
tal stock. However, very few farm purchasing
cooperatives qualify for this exemption.
The A F L -C IO upholds the principles o f co­
operation, and some unions, notably the Amal­
gamated Clothing Workers o f America and the
International Ladies’ Garment Workers’ Union,
have been instrumental in furthering cooperative
practice, particularly through their sponsorship
o f housing and health cooperatives for their mem­
bers and o f consumer cooperatives. However, in
the United States, there is no overall organic con­
nection between trade unions and cooperatives.

M etric Equivalents of United States M easures
M e t r ic E q u iv a l e n t s o f C o m m o n

U.S. W e ig h t s

and

U.S. system

M e a s u r e s , a n d T e m p e r a t u r e C o n v e r s io n
Conversion, U.S. and metric systems

Length
1 inch=2.540 centimeters___
1 foot=0.305 meters...............
1 yard=0.914 meters..............
1 mile=1.609 kilometers.........

12 inches=1 foot (ft.) __
3 feet=l yard (yd.)—
5H yards=l rod (rd.)..
5,280 feet=l mile (mi.)

1 centimeter=0.394 inches.
1 meter=3.281 feet.
1 meter=1.094 yards.
1 kilometer=0.621 mile.

Area
4,840 square yards=1 acre (A .)..................................
100 square rods=l acre.............. ...............................
640 aeres=l square mile (sq. m i.)_._.................... .
In U.S. land measurement a square mile is some­
times called a ‘ ‘ section.”

1 square inch=6.452 square centimeters.
1 square foot=0.093 square meters.........
1 square yard=0.836 square meters.......
1 square mile=2.590 square kilomcters-

1 cm2=0.155 sq. in.
lm 2= 10.764 sq. ft.
lm 2= 1.196 sq. yd.
1 km2=0.386 sq. mi.

Volume
1,728 cubic inches=1 cubic foot (cu. ft.)....... ............
27 cubic feet=l cubic yard (cu. yd.)................. ........
A “ barrel” is a measure that varies from one
commodity lo another. It is set mostly by State
laws.

1 cubic inch=16.387 cubic centimeters.
1 cubic foot=28.317 cubic decimeters—
1 cubic yard=0.765 cubic meters........ .

1 cm2=0.061 cu. in.
1 dm2=0.035 cu. ft.
1 cubic meter=1.308 cu. yd.

Capacity (iliquid measure)
16 fluid ounces (fl. o z .)= l pint (pt.)
2cups=l pint.......... ........................
2 pints=1 quart (qt.).......................
4 quarts=1 gallon (gal.)...................

1 fluid ounce=2.957 centiliters.
1 pint=0.473 liters....................
1 quart=0.946 liters.................
1 gallon=3.785 liters.................

1 centiliter=0.338 fl. oz.
1 liter=2.113 pints.
1 liter=1.057 quarts.
1 dekaliter=2.642 gallons

Capacity {dry measure)
2 pints=1 quart..
8 quarts=1 peck..
4 pecks=1 bushel.

1 pint=0.551 liters..........
1 quart=1.101 liters.........
1 peck=0.881 dekaliters...
1 bushel=3.524 dekaliters.

1 liter=1.816 pints.
1 liter=0.903 quarts.
1 dekaliter=1.135 pecks.
1 dekaliter=0.284 bushels.

Weight (avoirdupois)
16 ounces=1 pound (lb.) _
2,000 pounds=1 short ton.
2,240 pounds=1 long ton..

1 ounce=28.350 grams.............. ......................... .
1 pound=0.454 kilograms....... .................. .........
1 short ton=0.907 metric tons........ ............ .......
1 long ton = 1.016 metric tons..............................
1 (short) ton-mile=1.460 metric ton-kilometers.

1 gram=0.035 ounce.
1 kilogram=2.205 pounds.
1 metric ton=1.102 short tons.
1 metric ton=0.984 long tons.
1 metric ton-kilometer=0.685 (short) ton-miles.

Troy weight, rather than avoirdupois, is used for precious metals; apothecary weight is used for drugs.
Degrees
Fahrenheit
Temperature
32
Freezing point of water...........................................................
212
Boiling point of water...............................................................
98,6
Normal body temperature.................................................................
Simplest conversion formula, Fahrenheit into Centigrade: Subtract 32
from degrees Fahrenheit, multiply the result by 5 and divide by 9.

Degrees
Centigrade
o
100
37

N ote . The United States system differs only in minor ways from that
of Great Britain.
S ource : U.S. National Bureau of Standards, Units of Weight and Measure.

57
U.S. GOVERNMENT PRINTING OFFICE : 1963

O—706-107