Full text of Economic Indicators : September 1950

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81st Congress, 2d Session

Economic Indicators
SEPTEMBER

1950

Prepared for the Joint Committee on the Economic Report




by the Council of Economic Advisers

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1950

JOINT COMMITTEE ON THE ECONOMIC REPORT
(Created pursuant to Sec. 5 (a) of Public Law 304S 79th Cong.)
JOSEPH C. O'MAHONEY, Wyoming, Chairman
EDWARD J. HART, New Jersey, Vitt
FRANCIS J. MYERS, Pennsylvania

WRIGHT PATMAN, Texas

JOHN J. SPARKMAN, Alabama

WALTER B. HUBER, Ohio

PAUL H. DOUGLAS, Illinois

FRANK BUCHANAN, Pennsylvania

ROBERT A. TAFT, Ohio

JESSE P. WOLCOTT, Michigan

RALPH E. FLANDERS, Vermont

ROBERT F. RICH, Pennsylvania

ARTHUR V. WATKINS, Utah

A. HERTER, Massachusetts

THEODOEE J. KEEPS, Staff Director
GROVER W. ENSLBY, Associate Staff

Director

JOHN W. LEHMAN, Ckrk

COUNCIL OF ECONOMIC ADVISERS
(Created pursuant to Sec. 4 (a) of Public Law 304, 79th Cong.)
' '

'

'

;

LEON H. KEYSERLING, Chairman
JOHN D. CLARK
ROY BLOUGH

[PUBLIC LAW 120—81sx CONGRESS; CHAPTER 237'—IST SESSION]
[S. J. Res. 55]
To print the monthly publication entitled "Economic Indicators'9
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the Joint
Committee on the Economic Report be authorized to issue a monthly publication entitled "Economic Indicators,"
and that a sufficient quantity be printed to furnish one copy to each Member of Congress; the Secretary and the
Sergeant at Arms of the Senate; the Clerk, Sergeant at Arms, and Doorkeeper of the House of Representatives; two
copies to the libraries of the Senate and House, and the Congressional Library; seven hundred copies to the Joint
Committee on the Economic Report; and the required number of copies to the Superintendent of Documents for
distribution to depository libraries; and that the Superintendent of Documents be authorized to have copies printed
for sale to the public.
Approved June 23, 1949.
Charts drawn by Graphics Unit, Office of the Secretary, Department of Commerce

11




Contents
THE TOTAL OUTPUT OF THE ECONOMY
The Nation's Economic Budget
Gross National Product

Page

1
2

PRICES
Consumers' Prices
Wholesale Prices
Prices Received and Paid by Farmers
Stock Prices

3
4
5
6

EMPLOYMENT
Labor Force
Nonagricultural Employment—Selected Industries
Average Weekly Hours—Selected Industries
Work Stoppages

7
8
9
10

PRODUCTION AND BUSINESS ACTIVITY
Industrial Production
Weekly Production—Selected Indicators
Production of Selected Manufactures
New Construction
New Housing Starts
Expenditures for New Plant and Equipment
New Corporate Security Issues
Inventories and Sales
Merchandise Exports and Imports

11
12
13
14
15
16
17
18
19

PURCHASING POWER
National Income
Corporate Profits
Personal Income
Consumer Income, Spending, and Saving
Personal Consumption Expenditures
Per Capita Disposable Income
Average Hourly Earnings—Selected Industries
Average Weekly Earnings—Selected Industries
Farm Income
Consumer Credit

20
21
22
23
24
25
26
27
28
29

MONEY, BANKING, AND FEDERAL FINANCE
Bank Loans and Investments
Money Supply
Federal Cash Receipts From and Payments to the Public




30
31
32
111

THE TOTAL OUTPUT OF THE ECONOMY
THE NATION'S ECONOMIC BUDGET
Consumer income and saving in the Is! half of I960 were substantially higher than in 2nd half of 1949, due
in part to payment of the National Service Life Insurance dividend. This payment ($5,2 billion at an annual
rate) more than accounted for the Government cash deficit in the 1st half of 1950,
BILLIONS OF DOLLARS
ANNUAL RATES, SEASONALLY ADJUSTED

50

100

CONSUMERS

1949,

£il£:

SECOND HALF

^* Transfer
* payments

I960,
FIRST HALF

BUSINESS

1949,
SECOND HALF

I960,
FIRST HALF

INTERNATIONAL

1949,
SECOND HALF

1950,
FIRST HALF

GOVERNMENT

(Federal, state, and local)

1949,
SECOND HALF

msfer payments

1950,
FIRST HALF

EXCESS OF RECEIPTS (+),
1949,

-25
I

EXPENDITURES (-)

SECOND HALF

O

1950, FIRST HALF

25
1

-25
|

0

25

CONSUMERS
BUSINESS
INTERNATIONAL

GOVERNMENT

!/

(Federal, state, and- local)

TRANSFER PAYMENTS ARE INCLUDED IN RECEIPTS OR EXPENDITURES OF THE SEPARATE ACCOUNTS BUT NOT IN THE TOTAL GROSS NATIONAL PRODUCT,

NOTE: SEE PAGE 2 FOR THE NATIONS ECONOMIC BUDGET TOTAL (GROSS NATIONAL PRODUCT)
SOURCE: ECONOMIC REPORT OF THE PRESIDENT, JULY i960, APPENDIX A,




COUNCIL OF ECONOMIC ADVISERS

GROSS NATIONAL PRODUCT
Gross national product rose about $7 billion (annual rate) from 1st to 2nd quarter I960 to a peacetime
high of nearly $270 billion. The chief factor in the rise was an increase of more than $5 billion, or about
13 percent, in the rate of gross private domestic investment.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

300

300

NATIONAL PRODUCT

L CONSUMPTION EXPENDITURES

PRIVATE DOMESTIC INVESTMENT

RNMENT PURCHASES OF GOODS AND SERVICESX

OREIGN INVESTMENT''

I

I

I

1950
SOURCE: DEPARTMENT OF COMMERCE

council or ft

[Billions of dollars]
Total gross
national
product

Period

1939
1944
1946
1947
1948
1949

„

_

Personal
private Net foreign
consump- Gross
domestic
tion expend- investment
investment
itures

91.3
213.7
211. 1
233.3
259. 1
255. 6

_ .

67.5
111.6
146. 9
165.6
177.4
178.8

9.9
7.7
28.7
30.2
43. 1
33.0

0.9
-2. 1
4. 6
8.9
1.9
.4

Government
purchases of
goods and
services
13. 1
96.5
30. 9
28.6
36.6
43.3

Annual rates, seasonally adjusted
1949: First quarter
Second quarter
Third quarter
Fourth quarter
1950: First quarter
Second quarter

«_
_

258. 8
255. 2
254.4
253. 8

177.4
178.4
179.0
180.6

37.5
31.3
32. 1
31. 2

1.0
1. 3
.1
-.7

42.9
44. 3
43.2
42.8

262.5
269. 9

182.4
184.5

40. 5
45.9

-1.9
-2.0

41.4
41.4

NOTE.—Detailjwill'not necessarily add to totals because of rounding.
Source: Department of Commerce,




PRICES
CONSUMERS' PRICES
A 1.4 percent rise in consumers1 prices in July, the largest monthly gain since April 1948, was mainly due
to sharp increases in food prices. All other categories except apparel advanced moderately. A partial survey
indicates that, because of seasonal factors, food prices leveled off by mid-August.
PERCENT OF 1935-39 AVERAGE

PERCENT OF 1935-39 AVERAGE

LL

I

I

|

| j o

SOURCE: DEPARTMENT OF LABOR

[1935-39=100]
Period
1940 monthly average
1942 monthly average
1943 monthly average
1944 monthly average
1945 monthly average
1946 monthly average
1947 monthly average
1948 monthly average
1949 monthly average
1949- June 15
July 15
August 15 _ _ ._
September 15
October 15
November 15
December 15
1950* January 15
February 1 5
March 15
April 15
Mav 15
June 15
•
July 15

All items

100. 2
116. 5
123. 6
125. 5
128. 4
139.3
159. 2
171.2
169. 1
169. 6
168. 5
168. 8
169. 6
168. 5
168. 6
167. 5
166. 9
166. 5
167.0
167. 3
168. 6
170. 2
172. 5

Food
96. 6
123. 9
138.0
136. 1
139. 1
159. 6
193. 8
210. 2
201.9
204. 3
201. 7
202. 6
204. 2
200. 6
200. 8
197. 3
196. 0
194. 8
196.0
196. 6
200. 3
204. 6
210. 0

NOTE.—Prices are for moderate-income families in large cities.
Source: Department of Labor.




Apparel

101. 7
124.2
129.7
138. 8
145. 9
160. 2
185.8
198. 0
190. 1
190. 3
188. 5
187.4
187. 2
186. 8
186. 3
185. 8
185. 0
184. 8
185. 0
185. 1
185. 1
185. 0
184. 7

Rent

104. 6
108.5
108. 0
108.2
108.3
108. 6
111.2
117. 4
120. 8
120. 6
120. 7
120. 8
121. 2
121. 5
122. 0
122. 2
122. 6
122.8
122. 9
123. 1
123. 5
123. 9
124.4

Fuel, electricity, and
refrigeration

House furnishings

99.7
105.4
107. 7
109.8
110. 3
112. 4
121. 1
133. 9
137. 5
135. 6
135. 6
135. 8
137. 0
138. 4
139. 1
139. 7
140. 0
140. 3
140.9
141.4
138. 8
138. 9
139. 5

100. 5
122.2
125. 6
136. 4
145.8
159. 2
184.4
195. 8
189.0
187. 3
186. 8
184. 8
185. 6
185.2
185. 4
185. 4
184. 7
185. 3
185.4
185. 6
185. 4
185.2
186.4

Miscellaneous

101. 1
110.9
115.8
121. 3
124. 1
128.8
139.9
149.9
154. 6
154.2
154. 3
154.8
155. 2
155.2
154.9
155. 5
155. 1
155. 1
155. 0
154.8
155. 3
155. 3
156.2
-

WHOLESALE PRICES
Wholesale prices continued their upward trend during August. Farm and food prices moved irregularly, but
industrial prices rose more, consistently and reached new peaks.
PERCENT OF 1926 AVERAGE

PERCENT OF 1926 AVERAGE

200

220

LJ—t I i l l I I I M I t I } i l l I-. t I

M M . I, . . , , ( . . , . . ! . , , , . I . , . M l , , M . I

LATEST DATA PLOTTED J

I

i

,TTl

MONTHLY - AUGCJST
WEEKLY - SEPTEMBERS

SOURCE: DEPARTMENT OF LABOR.

OF

ECONOMIC

ADVISERS

[1926=100]
Period
1942 monthly
1946 monthly
1947 monthly
1948 monthly
1949 monthly

average.
average.
average.
average.
average.

1949: July
August
September
October
November
December

_.

1950: January
February
March
April •
May
June
July 1
August
Week ended:
1950: August

1__
8__
15—.
22__
. 29-,
September 5__.

1

Estimates based on change in weekly data.
Source: Department of Labor.




98.8
121.1
152. 1
165. 1
155.0

105.9
148.9
181.2
188.3
165.5

99.6
130.7
168.7
179. 1
161.4

Other than
farm products and foods
95.5
109.5
135.2
151.0
147.3

153.6
152.9
153.5
152.2
151.6
151. 2

166.2
162. 3
163. 1
159.6
156.8
154.9

161.3
160.6
162.0
159.6
158.9
155.7

145. 1
145.0
145. 3
145.0
145.0
145.4

151.5
152. 7
152.7
152.9
155.9
157.3
162. 9
166. 6

154.7
159. 1
159.4
159.3
164.7
165.9
176. 0
178. 3

154.8
156.7
155.5
155.3
159.9
162. 1
171. 4
174.8

145. 8
145.9
146.1
146. 4
147.6
148.8
151.5
155. 9

165. 3
165. 6
164. 9
166. 0
167. 2
167. 5

179. 2
177. 5
175. 4
176. 4
179. 5
179. 4

175.2
174. 7
174. 2
174. 4
176.8
177. 1

153. 4
154. 5
154. 1
155. 1
155. 4
156. 3

All commodities

Farm products

Foods

PRICES RECEIVED AND PAID BY FARMERS
Prices received by farmers increased about l'/2 percent from July 15 to August 15, reflecting sharply higher
>rices for cotton and for dairy and poultry products. Prices paid increased almost I percent.
PERCENT OF I9IO-I4 AVE:RAGE
35O

PERC INT OF 1910-14 AVERAGE

350
MONTHLY AVERAGE

PRICES RECEIVED

%

300

//
f^

200

100

300

S\
/ A ^"'\.

250

150

1

PRICES PAID
(INCL. INTEREST, TAXES
.AND WAGE RATES)

250

200

-/^__^

150

V*-*^-*-*-.-^

~x'J<^

*^*^

*~^ r^^-

*"-t

It • • • • „ ,
* '*•

Mm .
?**«*-+»+. «

_/•"•
» • • • • «r

100

PARITY RATIO*

50

50

1

0

I

1939 40

1
41

1
42

1
43

1
44

I
45

1
46

1
47

1
48

ii i i r 1 i i i i i

I

1 f

1

! 1 II 1

11

I I 1 ! 1 1 ! M M

O

49
1948

# RATIO OF INDEX OF PRICES RECEIVED TO INDEX OF PRICES PAW, INTEREST, Tt

XES

AND WAGE

1949

I960

KATES.

s

[1910-14=100]
Prices paid by
Prices
farmers (includreceived
ing interest, Parity ratio l
taxes, and
by farmers
wage rates)

Period

1939 monthly average
1942 monthly average
1944 monthly average
1946 monthly average
1947 monthly average
1948 monthly average
1949 monthly average

-

.

1949: July 1 5 _
August 15
September 15
October 15
November 15_
December 15

.

1950: January 15
February 15
March 15
April 15
May 15 _
June 1 5
July 15
August 15

.•

1
2

1946.

72707—50-




-

-

.

__. _

.

„.

.
;
_

-

-

_ _
,

.

-~

2
2

95
158

196
234

275
285
249

123
152
182
207
240
259
250

77
104
108
113
115
110
100

246
244
247
242
237
233

250
249
248
246
245
246

98
98
100
98
97
95

235
237
237
241
247
247
263
267

249
248
250
251
254

94
96
95
96
97
97
103
103

•

255

256
258

Ratio of index of prices received to index of prices paid, interest, taxes, and wage rates.
Includes wartime subsidy payments paid on beef cattle, sheep, lambs, milk, and butterfat between October 1943 and June
Source: Department of Agriculture.

STOCK PRICES
During August the weekly index of industrial stock prices reached a postwar peak; railroad stocks maintaim3d
the 1950 high levels reached at the end of July. Utilities recovered part of the drop which occurred after ttie
Korean outbreak.
PERCENT OF 1935-39 AVE RAGE
175

PERGENT OF 1935-39 AVERAGE
,175
WEEKLY AVERAGE

»/

150

..4

,/A\

-^

// 1

x>

75

r^/

\

v

^WXA
\iV //J/ f$&k.^
,
i. A^-l-

/ / V-^-

1 25

! 00

l i _

150

INDUSTRIALS

Vf,/ "t/vfc-

/s'-CT

\S^$Jf

/

'V-1

V./
*

/1

\r
-f

Wt,

-v~

125

J^

COMPOSITE INDEX

W

C^l

y>
/v'X

'r/'*s'>RAlLROADS \

j-

f.'

I

^^!V~

i

100

^
^\^ ^>^^^
».
/"

UTILITIES

w

75

50

50

=
0

1
939 40

1

1
4!

1
42

I
43

1
44

I
45

!
46

1

• . .1
1

J

1 i i i i '[ [ i 1 1 1 ! I I I I I 1 1 I I I I I I f

1 1 I I I 1 1 1 1

0

47 48 49

1948

1949

SOURCE: STANDARD AND POOR'S CORPORATION

195O
COUNCIL OF ECONOMIC ADVISERS

[1935-39=100]
Composite
index 1

Period
Weekly average:
1939
1942
19461948...
1949
1949: July
August
September
October
November
December
1950: January
February
March
April. „

.

May

June_ _
July
August
Week ended:
1950: August

„
2

9

16

23
30

_*

September 6_ _
1

Industrials

Railroads

Utilities

94 2
69. 4
139. 9
124 4
121. 3
117. 8
121. 8
123. 8
127. 3
129. 1
132. 7
135. 1
136. 7
138 8
141. 8
146. 9
147. 7
138. 2
147. 2

94. 8
71. 3
143. 4
130. 6
127. 5
123. 8
128. 0
130. 3
134.4
136. 5
140. 3
142. 6
144. 4
146. 5
150. 0
156. 1
157. 6
147.2
158. 0

74. 7
66. 1
143. 0
114. 7
96. 4
90. 6
94. 2
95. 1
97. 6
96.2
101. 0
107. 8
107. 2
108. 5
109. 5
109. 7
107. 1
109. 7
120. 6

98. 6
61. 3
120.2
96. 2
97. 5
95. 4
98. 5
100.0
101. 2
102. 6
104. 1
105. 8
107.4
109. 6
111.0
112. 8
111. 5
103. 0
104. 2

143. 5
147. 4
146. 9
150 2
148. 1
148. 4

153. 6
158. 2
157. 6
161. 5
159. 0
159. 3

119. 0
121. 0
121. 0
122. 3
119. 9
119. 6

102. 8
104. 0
104. 0
105. 4
104. 8
105. 0

Composite index prior to June 23,1948, was based on 402 common stocks, and included 354 industrials, 20 railroads, and 28 utilities; thereafter,
416 common stocks are represented, with 365 industrials, 20 railroads, and 31 utilities.
Source: Standard & Poor's Corporation.




EMPLOYMENT
I

LABOR FORCE
Civilian employment, increasing by about 1 million in August, was at an all-time peak of 62.4 million.
Nonagr cultural employment advanced by nearly 1.5 million while agricultural employment dropped further
below its summer peak reached in June. Unemployment of 2.5 million was 700,000 below July and at the
lowest level since the end of 1948.
MILLIONS OF PERSONS

MILLIONS OF PERSONS
70
UNEMPLOYMENT
\^^^^

fapgjmtf

60

1

-—~~^^^

S^rr*~

_

1

w/,

1

m w,

ft

50

TOTAL
LABOR FORCE

60

50

pill
•
•
40

30

-

_

'%

-

• * . - ' ' .

-

_

_ •

:

-

-

-

10

~

-

-

"

^

f

n

1

t f

\

1 1 t

1 1 I

;

i i Mf-n/ti-ii ^v»/ir"MT

10

-

5

-

mm r.;..v..j

20

-

10

O

1944

liil 111;)
1947

1948

111]

-

- 15

-

-

•Vffi*^^^
•X-lX-Xf'"'"'^''4^
S

1949

Period

Total labor
force (including
armed
forces)

10

- 5

.,f!^^^^^^^^^^^^ff^^

i l l !
I

0

1

I948

MONTHLY AVERAGE

l949

195

°

Civilian labor force
Total
Employment J
civilian
Agricul- Nonagrilabor
Total
tural
cultural
force
Thousands of persons, 14 years of age and over
370
36, 140
9,610
55, 230
45, 750
11,260
45, 010
8, 950
54, 630
53, 960
8,266
1,440
49, 761
60, 168
58, 027
51, 405
7,973
1,306
61, 442
59, 378
1,466
50, 684
8,026
58, 710
62, 105

Armed
forces

1939 monthly average,.-.
1944 monthly average
1947 monthly average
1948 monthly average
1949 monthly average

55, 600
65, 890
61, 608
62, 748
63, 571

1949: July
August
September
October
November
December „

65, 278
65, 105
64, 222
64, 021
64, 363
63,475

1,463
1,468
1,459
1,445
1,436
1,430

63, 815
63, 637
62, 763
62, 576
62, 927
62, 045

59, 720
59, 947
. 59,411
59, 001
59, 518
58, 556

9,647
8,507
8,158
7, 710
7,878
6,773

50, 073
51, 441
51, 254
51, 290
51, 640
51, 783

1950: January
February
March
April

62, 835
63, 003
63, 021
63, 513
64, 108
66, 177
65, 742
66, 204

1,408
1,366
1,346
1,330
1,320
1,311
1, 315
1, 337

61,427
61, 637
61,675
62, 183
62, 788
64, 866
64, 427
64, 867

56, 947
56, 953
57, 551
58, 668
59, 731
61, 482
61, 214
62, 367

6, 198
6, 223
6,675
7, 195
8,062
9,046
8,440
8,160

50, 749
50, 730
50, 877
51, 473
51, 669
52, 436
52, 774
54, 207

May

-

ncof^ctuT r\c /~n/ii i AM i Aono cr\Dr*c

H
-

June .
July
August

30

PERCENT
2O

15

1939

_

1 i I L i 1 1 J -I i i .*. A •- 1 i t t I i 1 | | |

PERCENT
20

0

40

NONAGR CULTURAL EMPLOYMENT

;
20

-

Unemployment

-

Unemployment as percent of total
civilian
labor force

9, 480
670
2, 142
2,064
3,395

17.2
1.2
3.6
3.4
5. 5

4,095
3,689
3,351
3,576
3,409
3,489

6.4
5.8
5.3
5.7
5.4
5.6

4,480
4, 684
4, 123
3, 515
3,057
3,384
3,213
2, 500

7.3
7.6
6.7
5.7
4.9
5.2
5. 0
3.9

i Includes part-time workers and those who had jobs but were not at work for such reasons as vacation, illness, bad weather, temporary lay-off, and industrial
disputes.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source; Department of Commerce.




NONAGRICULTURAL EMPLOYMENT - SELECTED INDUSTRIES
Manufacturing employment continued to increase in July to a level about i million higher than a year ago.
Construction employment reached a new postwar high.
MILLIONS OF WAGE AND SALARY WORKERS

MILLIONS OF WAGE
AND SALARY WORKERS
9.0

DURABLE MANUFACTURING

NONDURABLE MANUFACTURING

i
J

F

M

A

M

J

J

A

S

O

N

D

J

CONTRACT CONSTRUCTION

F

MA

MJ

J

i
A

i
S

i
0

i
N

D

TRADE

1949

\

V

P"

i

J

od_J_
F

IV!

A

I

"1

M

SOURCE: DEPARTMENT OF LABOR

[Thousands of wage and salary workers
Manufacturing
Period
Total
1939 monthly average- _ — 10, 078
17, 381
1943 monthly average
14, 461
1946 monthly average
15, 247
1947 monthly average
15, 286
1948 monthly average
14, 146
1949 monthly average 13, 884
1949: June
13, 757
July
14, 114
August
September
. __ 14,312
13, 892
October
13, 807
November
14, 031
December
13, 980
1950: January
Februarv
13, 997
March
. > 14, 103
14, 162
April 2
14, 421
May 2
14, 681
June 2
14, 739
July _ _ _ _

Contract
construction
Durable Nondurgoods able goods
4,683
11,077
7,739
8,373
8,315
7,465
7,392
7,255
7,302
7,409
6,986
7,050
7, 303
7,342
7, 324
7,418
7,548
7,813
7,971
8,007

5,394
6,304
6, 722
6,874
6, 970
6,681
6,492
6, 502
6, 812
6, 903
6,906
6,757
6, 728
6,638
6,673
6,685
6,614
6,608
6,710
6,732

1,150
1,567
1,661
1,982
2,165
2, 156
2, 205
2,277
2,340
2, 341
2, 313
2,244
2,088
1,919
1,861
1,907
2,076
2,242
2,413
2,502

Trade

6,705
7,322
8,815
9, 196
9,491
9,438
9,336
9,220
9,213
9,409
9,505
9,607
10, 156
9, 246
9,152
9,206
9, 346
9,338
9,424
9,417

Finance
and
service

Government
(Federal,
State,
local)

4,610
5,187
5,994
6, 427
6,515
6, 544
6,608
6,631
6,616
6,604
6,561
6,534
6,508
6,473
6,473
6,499
6,560
6,602
6,652
6,670

3,987
6,049
5,607
5,454
5,613
5,813
5,803
5,738
5, 763
5,893
5, 866
5, 783
6, 041
5,777
5,742
5, 769
5, 915
5,900
5,832
5,741

Transportation
and
Mining
public
utilities
2,912
3,619
4,023
4, 122
4, 151
3,977
4,031
4,007
3,992
3,959
3,871
3,892
3,930
3,869
3,841
3,873
3,928
3,888
4,023
4,039

845
917
852
943
981
932
968
943
956
948
593
917
940
861
595
938
939
939
944
909

1
Includes all full- and part-time wage and salary workers in nonagricultural establishments who worked or received pay during the pay period ending nearest
the 15th of the month. Excludes proprietors, self-employed persons, domestic servants, and personnel of the armed forces. Total derived from this table not comparable with estimates of nonagricultural employment of the civilian labor force reported by the Department of Commerce (p. 6) which include proprietors, selfemployed persons, and domestic servants; which count persons as employed when they are not at work because of industrial disputes; and which are based on an
enumeration
of population, whereas the estimates in this table are based on reports from employing establishments.
2
Preliminary estimates.
Source: Department of Labor.

8



AVERAGE WEEKLY HOURS - SELECTED INDUSTRIES

4

\Vlost
1n

durable industries reported small seasonal declines in the average workweek in July. Seasonal expansion
food processing and textile industries was responsible for a longer workweek in the nondurable group.

HOUR S PER WEEK

HOURS PER WEEK

NONDURABLE MANUFACTURING

DURABL'E MANUFACTURING
42

42

—vT^l^SAA^n

40

X^/V ^

40

38

36

36

34

34

0

i 1 1 i i 1 i n i i 1 II 1 1 I 1 1 1 1 i I I t 1 i I 1 II 1 1
1947

1948

1949

^ ^~^*.
y>-rV
\~V

N

38

1 1 1 1 t I 1 1f f 1
1950

0

i t 1 1 1 I11 i 1 i
1947

1 I 1 1 1 111 I 1 I
*

1 1 I I 1 i ! 1 1 I1

1948

1 1 1 1 1 1M I M

1949

1950

RETAIL TRADE

BUILDING CONSTRUCTION
42

42

40

40

_yX-

r^

-xW

38

38

*
36

V~X

^

v^

34

0

II . . . i , I M i

1947

1 I i I I Il I r ii
1948

,1...
1949

/

36

V
h/

34

, , , , , i , , , ,7

0

",,,!

»950

1 1 1 1 1 1 M

1947

1948

I I1

1 l t 1 I 1 1 1 IH
1949

I 1 1 1 1 11 1 C1 1

1950

SOURCE: DEPARTMENT OF LABOR

[Hours per week, selected industries l]
Manufacturing
Period
1939 monthly average. _
1943 monthly average. _ _ _ _ _
1946 monthly average
1947 monthly average. _
. .
1948 monthly average
1949 monthly average —
1949: June
July . .
August
._ .
September
October
„
November
December.
1950: January
....
February
March
April 3
May
June33
July
1

For production and related workers.




Total
37 7
44. 9
40 4
40. 4
40 1
39 2
38. 8
38 8
39 1
39 6
39. 7
39 1
39 8
39 7
39. 7
39 7
39 7
40 0
40 4
40 4

Durable
goods
38 0
46 6
40 2
40 6
40 5
39 5
39 2
38 8
39 3
39 6
39 9
39 0
40 1
40 0
40 1
40 2
40 7
40' 9
41 3
40 9
* Not available.

Building
Nondurable construction Retail trade
goods
37
42
40
40
39
38
38
38
38
39
39
39
39
39
39
39
38
38
39
39

4
5
5
1
6
8
5
7
9
6
6
3
5
4
3
2
5
9
5
8

(2)
2
(2)
(2)

(2)

37 3
36 7
37 1
37 1
37.2
36 5
36 9
36. 1
35 8
34 8
33 7
34 5
35 6
36 8
37 3

*

(2)
(2)
(2)

40. 3
40 3
40. 4
40. 5
40 9
40. 9
40 5
40. 4
40. 1
40. 7
40.4
40.4
40. 3
40. 2
40.3
40. 9
(2)

s Preliminary estimates.
Source: Department of Labor,

WORK STOPPAGES
Man-days of idleness resulting from work stoppages increased slightly in July, but the scattered stoppages
involved fewer workers than in June.
MILLIONS OF MAN-DAYS IDLE

MILLIONS OF MAN-DAYS IDLE

20

20
MONTHLY AVERAGE

1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949

SOURCE: DEPARTMENT OF LABOR.

COUNCIL OF ECONOMIC ADVISERS

Workers involved in
stoppages
In effect
Beginning
Percent of
during
in
estimated
month
period
working time (thousands)
(thousands)
1, 170
0.28
2,360
.32
840
.05
2, 120
.09
3,470
.47
4,600
1.43
2, 170
.41
1,960
.37
3,030
.59

Man-days of idleness
during period
Period

1939
1941
1942
1944
1945
1946
1947
1948
1949
1949: June
_„.
July___
August. _ _
September. . _
October
November...
December
1950: January l 1
February
. _
March1 1
April
May ll _ _
June
July !
1

Preliminary estimates.

10



Monthly
average
(thousands)
1,483
1,917
348
727
3,167
9,667
2,883
2,842
4,208

Number of stoppages
Beginning
in
period

In effect
during
month

2,613
4,288
2,968
4,956
4,750
4,985
3,693
3,419
3,606

4, 470
2,350
2, 140
6,270
17, 500
6,270
1,350

.61
.35
.27
.87
2.49
.93
.19

572
110
134
507
570
57
46

673
249
232
603
977
914
417

377
343
365
287
256
197
170

632
603
643
536
475
, 388
323

2, 600
7,850
3,750
3,150
3,000
2,750
2,900

.38
1.27
.49
.47
.40
. 36
.41

185
75
80
160
325
260
225

300
515
530
300
500
400
400

225
210
260
400
450
425
425

340
325
400
550
650
650
650

Source: Department ofJ^akQr,

PRODUCTION AND BUSINESS ACTIVITY
INDUSTRIAL PRODUCTION
Industrial production reached anew postwar peak in August, about 4 percent above the July level, according
to preliminary estimates. Higher output occurred in most major groups of industries.
PERCENT OF 1935-39 AVERAGE

400

PERCENT OF 1935-39 AVERAGE

\

400

i . i
1939 4O 41

*

i . i . .

, , . , , I

42 43 44 45 46 47 48 49

PRELIMINARY ESTIMATE

SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM




COUNCIL OF ECONOMIC ADVISERS

[1935-39=100, seasonally adjusted]
Period
1943 monthly average
1946 monthly average.1947 monthly average
1948 monthly average „ __ _
1949 monthly average
1949: June
July
„ ..
August
.
September
OctoberNovember
December—
1950: January
_
.. -.
February
March . „ .„
April _„ - _ _ — __
May
June J
July _ 1
August
i Preliminary estimates.

Total
industrial
production
239
170
187
192
176
169'
161
170
174
166
173
179
183
180
187
190
195
199
197
205

BManufactures

Total
258
177
194
198
183
175
168
178
184
176
179
188
192
192
194
199
203
207
206
213

Durable Nondurable goods
goods
176
360
192
165
172
220
177
225
202
168
194
161
154
185
165
193
172
199
177
175
181
177
176
203
179
209
180
207
181
211
222
180
181
231
236
183
181
235
189
241

Minerals
132
134
149
155
135
133
123
129
119
112
141
132
130
118
144
140
145
151
146
161

Source: Board of Governors of the Federal Keserve System.

11

WEEKLY PRODUCTION - SELECTED INDICATORS
Steel production was near capacity levels during most of August. Electric power plants continued to
produce at peak rates. The output of the automobile industry was second only to June — the all-time
peak month.
MILLIONS OF TONS

BILLIONS OF KILOWATT HOURS

3

7.0

J

F

M

A

M

J

J

N O

A S O

./

'

/-% / *

/V/\

/ill

f i!

.

SOURCES: AMERICAN IRON AND STEEL INSTITUTE, EDISON ELECTRIC INSTITUTE, DEPARTMENT OF THE INTERIOR, WARD'S AUTOMOTIVE REPORTS.

Steel
Period

Thousands of
net tons

Weekly average:
1947
1948
1949
.
Week ended:
1949: August

6 _, _ _ _

13

20

27

September 3
10 _
1950: August

5

12

19
26_
September 2
9

_ _ _ _ _
__ _ _

_____

Percent of
theoretical1
capacity

Electric power,
by utilities
(millions of
kilowatt-hours)

Bituminous
coal
(thousands of
short tons) 2

Cars and
trucks
(number)

1,628
1,695
1,496

93.0
94.1
81.0

4,821
5,300
5,500

2,058
1,948
1,418

92, 163
82, 340
120, 350

1,499
1, 517
13539
1,563
1, 590
1,552

81. 3
82.3
83.5
84.8
86.3
84.2

5,466
5,530
5,579
5, 523
5,444
5, 258

1,254
• 1, 328
1,254
1, 314
1,346
1,231

142, 346
139, 863
142, 663
148, 469
138, 796
117, 703

1,920
1, 927
1,931
1,747
1,873
1,890

99.5
99. 9
100. 1
90.6
97. 1
98.0

6,247
6,253
6, 370
6,346
6, 459

1,760
1,813
1,880
1, 830
1,837

173, 169
180, 284
183, 368
171, 867
178, 445

i Based on weekly net ton capacity of 1,749,928 for 1947,1,802,476 for 1948,1,843,516 for 1949,1,906,268for the first half of 1950, and 1,928,721 beginning July 1,1950.
* Daily average for week.
Sources: American Iron and Steel Institute, Edison Electric Institute, Department of the Interior, and Ward's Automotive Eeports.

12



]PRODUCTION OF SELECTED MANUFACTURES
n July, most durable and nondurable manufactures declined slightly, reflecting vacations not completely
accounted for by the seasonal adjustment factor.

PERC

250

f\ ,r

IRON A W STEEL

200

150

IOO

0

/Y
-/

*

UM%B
//""^
vA
y

L
r-p i

Y'

\

VfV

s

^'x-^

•R AND PRODUCTS*

Jt

1

•; \ /N

N,v
/ V
^ >^\ ^V>A r
\J

200

/~N

150

V

IOO
.....Illll.

1 1 1 1 i 1 i 1 1 iT

0

!

N ^
V.

.-, \f\

250

I ! \ V *\

III
200

150

IOO

0

V \
/' /•''-A'

i

'

48

), /--

UCTS

IL

44 46

/^A

%

200

1949

CHE M

-X

MM l I l l l F F

\ -.,
v^

C M. PRODUCTS
X^

^'

\\

X"

XX
^^«XS^-

/

|
Jr
/ ^
IOO

'948

N./

^—-*^^\-—*^—-*

150

V

1 1 I 111 M 1 M

\

i
i
i
i
i

/

x % *

L
JL
i i i i i i i i i n m1 1 1 1 1 1 1 1 1
40 42

:
;i

250

/

' Xx-x

/

r\
j \

300

^MAC H NERY^

y*\A

L
J un i i i i i i i i .n iTTi 1 1 1 1 1 M i 1 1 1 1 1 i 1 1 1 1 1

350

|

-%.^ v

"""^TEXTILES ^ND PRODUCTS

//

*

443

1

AND COAL-s^
fl\vPETROLEPR UNOC(3UCTS
>-

--vf

t i i i i i i n rTTi 1 1 1 1 1 1 1 1

350

300

-\ r\x

250

1 1 1 1 1 1 1 1 1 rr

^MANUFACTURED FOOD
PRODUCTS

"
I
=.
JIL
i i i i i i t i i i i rr*M 1 1 1 1 M 1 1

ol

40

1950

42 44 46 48

1948

M I M 1 1 1 M 1

1949

iM 11iin m
I960

s

[1935-39=100, seasonally adjusted]
Durable manufactures
Period

Iron and
steel

1943 monthly average
1946 monthly average
1947 monthly average
1948 monthly average
1 949 monthly average
1949: June
July
August- __ _
September
October.
_
November
December
1950: January
February
March
April
May
June.1
July
i Preliminary estimates.

72707—50




3

208
150
195
208
188
177
156
178
179
102
145
201
203
201
205
222
226
231
228

Nondurable manufactures

Lumber
Nonferrous Textiles
Machinery metals and
and
and
products
products products
129
131
143
145
130
123
115
126
132
133
147
158
144
150
156
159
158
155
150

443
240
276
277
234
225
217
216
224
226
217
227
229
237
243
251
258
262
264

*

267
157
187
193
160
133
127
141
157
164
163
166
180
190
200
198
197
207
202

153
162
163
170
147
126
120
140
155
169
175
173
178
179
173
174
175
173
168

Petroleum Manufacand coal tured food
products
products
185
173
193
218
209
202
198
203
208
198
205
219
211
205
207
206
216
222
228

145
149
157
159
163
165
161
166
167
165
160
160
161
161
166
164
164
164
162

Chemical
products
384
236
251
254
241
233
228
229
236
240
243
246
248
247
247
252
256
261
260

Source: Board of Governors of the Federal Reserve System.

13

NEW CONSTRUCTION
New construction in August advanced about 1 percent above its July level and was about 25 percent above
a year ago. All categories recorded some increase with that in private residential construction being the
smallest.
MILLIONS OF DOLLARS
2,5 OO

MILLIONS OF DOLLARS
2,500

ADJUSTED FOR SEASONAL VARIATION

E.OOO

2,000

TOTAL CONSTRUCTION

1,500

1,500

1,000

1,000

PRIVATE RESIDENTIAL
(NON FARM)

OTHER PRIVATE FEDERAL, STATE, AND LOCAL

1949

SOURCES: DEPARTMENT OF C O M M E R C E AND DEPARTMENT OF L A B O R

Period
1939 monthly average
1942 monthly average
1944 monthly average
1946 monthly average
1947 monthly average
1948 monthly average
1949 monthly average-1949: July
August _
September. _ _ _
October
November .
December
1950: January
February
_
March
April
May
_*
June 2
July 2
August

_
_
_

I960

1951

COUNCIL OF ECONOMI

[Millions of dollars, seasonally adjusted]
Privat/e construction
Total new
Total
Residential
Other
construction
private
(nonfarm)
366
223
142
683
142
1, 173
285
143
__ __
182
114
438
68
803
469
335
1,000
1,386
1,094
526
568
1,389
674
1,798
715
659
1,883
1,350
691
1,834
1,319
666
653
1,322
676
1, 853
646
706
1, 333
627
1,897
1,934
752
1, 375
623
1,428
_ __ _
1,985
792
636
1, 471
842
2,039
629
1, 506
863
2,068
643
956
644
_
2, 127
1, 600
641
2, 167
1,579
938
1, 604
2, 183
957
647
1,649
2,209
990
659
1,
699
664
2,267
1,035
2,298
1, 075
1, 748
673
2,318
680
1,758
1,078

Federal,
State, and
local*
317
888
256
197
291
409
532
515
531
564
559
557
568
562
527
588
579
560
568
550
560

1 Includes public residential construction.
Sources: Department of Commerce and Department of Labor.
2 Preliminary estimates.
Noil.—-Construction data have been revised. See May 1950 Supplement to Construction and Construction Materials.

14



NEW HOUSING STARTS
Housing starts, experiencing the same moderate increase recorded in June, again rose to an all-time
record in July. Starts during the first seven months of the year totalled 838,300, over 50 percent
more than in the corresponding period of 1949,
THOUSANDS OF UNITS
200

THOUSANDS OF UNITS
200

SOURCE: DEPARTMENT OF .LABOR




COUNCIL. OF ECONOMIC ADVISERS

New nonfarm units started
Month

1948

1949

39 300
42 800
56, 000
67 100
72, 900
77 200
81 100
86, 300
93 800
94, 000
79 700
58, 800

53 500
50 100
76, 400
99 500
100 300
97 800
95 000
86, 700
82 300
73, 400
63 700
52 900

50 000
50 400
69, 400
88 300
95, 400
95 500
96 100
99, 000
102 900
104, 300
95 500
78, 300

.

849, 000

931 600

1 025 100

Monthly average

70, 750

77 600

85 425

1947
January
February
March
April

May

__ __ _ _

__

June
July
August
September * „
October
November
December _ _
Total

1

Preliminary estimates.

_ __

1950
78 700
82,900

117, 300
133, 400
1
140, 000
1
142 000
1
144 000

Source: Department of Labor.

15

EXPENDITURES FOR NEW PLANT
AND EQUIPMENT
The survey made between mid-July and mid-August of business investment plans indicates a substantial
expansion of programs for new plant and equipment and an acceleration of expenditures in 3rd quarter
by 13 percent above the amount planned when the May survey was made.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

25

25
ANNUAL TOTALS

1939

1941

1948

1949

2

3
1948

4

SOURCES SECURITIES AND EXCHANGE COMMISSION AND U, S. DEPARTMENT OF COMMERCE

[Millions of dollars, annual rates, not adjusted for seasonal variation]
Total i

Period
1939. _ _
1941
1945 _
1948
1949

_ _ _ _ _ _ _ _ _ _
_

1948: Third quarter
Fourth quarter

_ _ _

1949: First quarter
Second quarter _ _ „
Third quarter
Fourth quarter
1950: First quarter _ _ _ _
Second quarter3 _
Third quarter
1
2

_^

_

Manufacturing

Transportation
Mining
Railroad

Other

Electric and
gas utilities

Commercial
and miscellaneous 2

5, 200
8,190
6,630
19, 230
18, 120

1,930
3,400
3,210
8,340
7,250

380
680
440
800
740

280
560
550
1,320
1, 350

280
340
320
700
520

480
710
630
2, 680
3, 140

1,850
2,490
1,480
5,390
5, 120

19, 320
21, 640

8,360
9,280

800
880

1, 320
1, 640

680
680

2,760
3,400

5, 440
5,760

17, 840
18, 640
17, 480
18, 520

7,400
7, 520
6,760
7,320

760
760
720
720

1,440
1,520
1, 240
1, 200

520
560
560
480

2,720
3, 120
3, 160
3, 560

5,040
5, 160
5, 040
5, 280

14, 800
17, 320
20, 240

6,080
7,440
9,080

600
640
720

920
1,200
1,280

320
360
440

2,600
3,040
3,640

4,240
4, 640
5, 040

Excludes agriculture.
Commercial and miscellaneous composed of trade, service, finance, and communication.
« Figures for third quarter are based on anticipated capital expenditures reported in the July-August survey.
NOTE.—These figures do not agree with the totals included w the gross national product estimates of the Department of Commerce, principally because the
latter cover agricultural investment and also certain equipment and construction outlays charged to current expense. Figures for 1939-44 are Federal Reserve
Board estimates based on Securities and Exchange Commission and other data.
Detail will not necessarily add to totals because annual rates are based on quarterly figures rounded to the nearest 10,000,000.
Sources: Securities and Exchange Commission and Department of Commerce (except as noted).

16



NEW CORPORATE SECURITY ISSUES
Net proceeds from new security issues increased about S 800 million in 2nd quarter. Over half
of the increased proceeds was used for retirement of debt and stock.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

3,0

3.0

1939

1943

1946

1947

I

1948

2

3

1948

4

1
1

1

2

3

4

1949

SOURCE: SECURITIES AND EXCHANGE COMMISSION.

[Millions of dollars]
Proposed uses of net proceeds
Estimated
net proceeds

Period

New money
Total

1939 quarterly average
1943 quarterly average
1946 quarterly "average
1947 quarterly average
1948 quarterly average
1949 quarterly average

..

_
-

-_-

_

.

.
~

-

1948: Third quarter
Fourth, quarter
1949: First quarter
..
Second quarter—
Third quarter
Fourth quarter

_

.

^
„_-.
__

1950: First quarter «.Second Quarter

Plant and
equipment

Working
capital

Retirement
of debt and
stock *

529
287
1,689
1,617
1,740
1,490

81
77
820
1,148
1,482
1,151

43
35
529
852
1,055
931

39
42
291
296
428
221

448
210
869
469
258
338

1,321
2,051

1,056
1,870

743
1,469

314
401

264
182

1,210
2,441
1,009
1,299

970
1,986
788
861

784
1,675
669
596

186
312
120
265

240
456
219
438

1,398
2, 193

1,014
1,275

777
958

237
317

384
918

1
Includes small amount for other purposes.
NOTE.—Detail will not necessarily add to totats because of rounding.
Source: Securities and Exchange Commission.




17

INVENTORIES AND SALES
1Manufacturers'

and retailers' sales on a seasonally adjusted basis, again achieved new records in July
sDeflecting the buying wave that followed the Korean outbreak. Manufacturers' inventories showed little change.
BILL IONS

OF DOLLARS

BILLIONS

TOTAL* AND

OF DOLLARS
RETAIL

MANUFACTURING

20

60
MONTHLY AVERA^

A

1

SEASONALLY^..,..

..-***
.<••***

MONTHLY AVERAGE

ADJUSTED

^-INVENTORIES

"""^••-,, ...,--••TOTAL

SEASONALLY' ADJUSTED

,/X

NVENTORIES^

X

* SALES

/ ^—

10

50

|
!

!
i

/

^•10-FAL SALES*

40

.«*•••••-. J

^MANUFAGTUR NG
^-

1
20

Tlr
r

0

i i i i i i i | i-

1948

11 1 1 1 1 I 1
1949

DEPARTMENT

INVENTORIES

STORES

/

V

/

£^/^....^<

r
SALES*'

^

200

j/,j

/

IOO

Hllllllll

1948

1 1 II

1 ! M 1 II

1949

Total business

itMihiiii

I I I 1 I I 1 I I

0

II 1 I I ! 1 II M

1 M M 1II MI

1948

1949

40 42 44 46 48

1950

Inventories 2

1

Sales s

Manufacturing
Inventories 2

8

Sales

20, 172
31, 143
30, 571
42, 709
51, 692
58, 546
53, 628
56, 435
55, 320
54, 631
54, 617
54, 356
53, 996
53, 628
54, 125
53, 932
54, 513
54, 741
55, 403
56, 254
55, 424

11, 109
22, 372
24, 181
27, 800
34, 739
38, 190
35, 997
36, 391
34, 820
37, 137
37, 239
34, 603
35, 496
34, 651
35, 678
36, 463
37, 946
36, 895
40, 038
41, 388
43, 306

11,465
20, 098
18, 390
24, 818
29, 818
34, 066
30, 899
33, 251
32, 367
31, 638
31, 076
30, 744
30, 547
30, 899
31, 136
31, 098
31, 103
31,219
31, 509
32, 014
31, 800

5,100
12, 822
12, 883
12, 841
17, 076
18, 998
17, 815
17, 989
17, 114
18, 946
18, 865
16, 805
17, 313
16, 857
17, 650
18, 035
19, 144
18, 456
20, 695
21, 329
21, 800

M M 1 I It M

1950

COUNCIL OF ECONOMIC ADVISERS .

Department stores

Retail

New
orders 4

Millions of dollars, seasonally adjusted

1939
1943
1945
1946
1947
_
1948
19491949: June
July
August
September <_
October
November
December
1950: January
February
MarchApril 7_
May
June77
J u l y _ _ ..

^/^

"":.^'

INV ENTORIES-^

S.OURCE : DEPARTMENT OF COMMERCE AND BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Period

1950

SEASONALLY ADJUSTED

^- SALES

300

MANUFACT URING

! 1 f I 1 1 1 1 1I1

OF 1935-1939 AVERAGE

MONTHLY AVERAGE

/

40 42 44 46 48

J 1 1i
l
l
l 1 1 I
1 111

400

J

1

10

PERC ENT

^

// ''•

I 1 1

10 42 44 46 48

r-vv
30

f 1 I 1 1!

0

,(86)
()
(fl)
14, 004
16, 768
18, 694
17, 189
16, 300
15, 496
18, 697
19, 441
18, 359
18, 138
16, 775
18, 646
17,983
20, 228
18, 594
20, 345
22, 626
22, 800

Inventories 2

Sales

8

4

5,532
7,361
7,543
11, 226
13, 221
14, 969
13, 698
14, 182
13, 862
13, 932
14, 355
14, 475
14, 336
13, 698
13, 998
13, 800
14, 282
14, 138
14, 416
14, 747
14, 302

3,504
5,277
6,315
8,358
9,909
10, 837
10, 682
10, 684
10, 549
10, 669
10, 856
10, 678
10, 630
10, 503
10, 855
11, 101
11, 125
11, 080
11, 327
11,700
12, 555

InvenSales 5
tories 5
1935-39=100, seasonally adjusted

102
155
166
213
255
291
270
265
•256
253
263
270
273
271
272
279
285
286
285
276
268

106
168
207
264
286
302
285
285
280
283
289
276
277
293
282
280
274
292
290
298
362

s Indexes computed from data on retail value of sales for month and retail
1 Total business includes manufacturing, retail, and wholesale (not shown
book value of inventories, end of period.
separately in this table).
6 Not available.
2 Book value, end of period.
8
* Preliminary estimates.
Monthly average for year and total for month.
4
Data for new orders not adjusted for seasonal variation.
Sources: Department of Commerce and Board of Governors of the Federal Reserve System,

18



MERCHANDISE EXPORTS AND IMPORTS
In July exports fell sharply. Imports continued to increase as they have in 10 of the past 12 months,
reaching a level exceeded only once (following a maritime strike). These changes brought the merchandise export surplus down to only $63 million, the lowest since June 1941.
MILLIONS OF DOLLARS
1,600

MILLIONS OF DOLLARS
1,600

1,200

1936-38

1946

1947

J

1948 1949

F

M

A

M

J

J

A

S

O

N

D

J

F M A M J

J

A

S

O

N

D

J

F

M

A

M

J

J

A

S

O

N

D

SOURCES: DEPARTMENT OF COMMERCE, DEPARTMENT OF THE ARMY, AND DEPARTMENT OF THE NAVY.

[Millions of dollars]
Exports l

Period
1936—38 monthly average
1943 monthly average
_
1946 monthly average
1947 monthly average
1948 monthly average
1949 monthly average
1949: June
JulV—

.

- -

-

--

.

-

...._.-._

_

...

- -

_ _ ^

-

...

_ » _
-

- .

-

--

-

1,080
849

1,278
1,054
1,000
1, 107

..

«----

August
September
October
November
December
1950* January
February March
April _
May
June
July
„

247

-

-— -

900
883
909
852
841
944
744
772
866
808
828
876
774

Imports *
207
282
410
478
592
552
526
456
491
530
557
593
605
623
600
664
583
659
686
711

Excess of
exports
40
798
439
801
462
448
581
443
393
379
296
248
339
121
172
202
225
169
190
63

1 Recorded merchandise exports, including reexports, and civilian supplies for occupied areas.
2 Eecorded general merchandise imports.
Sources: Department of Commerce, Department of the Army, and Department of the Navy,




19

PURCHASING POWER
NATIONAL INCOME
Total notional income was more than $9 billion (annual rate) higher in 2nd quarter than in 1st quarter of 1950,
according to preliminary data. Compensation of employees and corporate profits accounted for the increase.

BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

250

250

ANNUAL RATES, SEASONALLY ADJUSTED

ANNUAL TOTALS

TOTAL NATIONAL INCOME

;>:<;:*:;>:;CORPORATE PROFITS AND:
""" " '*<••:':INVENTORY VALUATION*:

m

in

ECONOMIC ADVISERS

SOURCE: DEPARTMENT OF COMMERCE (EXCEPT AS NOTED).

[Billions of dollars]

Period

Total
national
income

1939
„_.
1944
.
1946__ _
1947
1948
1949_ _ _ _ _

72.5
183.8
180. 3
198.7
223. 5
216. 8

Compensation of
employees

Proprietors'
(business,
professional, Net; interest
farm)
and rental
income

47.8
121.2
117. 1
128.0
140. 2
140.6

14.7
35.5
42.0
42. 4
47. 3
41.7

4.2
3. J
2.9
3.5
4. 1
4.7

Corporate profits and inventory
valuation adjustment
Total
5.8
24.0
18.3
24. 7
31. 8
29.9

Profits
before
taxes

Inventory
valuation
adjustment

6.5
24.3
23.5
30.5
33. 9
27.6

-0.7
-.3
--5.2
-5.8
-2.0
+ 2.2

Annual rates, seasonally adjusted
1949: First quarter__
Second quarter
Third quarter _ _
Fourth quarter
1950: First quarter
Second quarter

1

218.8
217.8
216.7
214.2

141. 5
140. 5
140. 0
140. 2

43.8
42,2
40. 1
40.7

4.6
4. 7
4.8
4.8

28.8
30. 4
31.8
28.4

28.3
26. 4
28.2
27.6

+.5
+ 3. 9
+ 3.7
+.8

217.2
226. 6

142.3
147.6

41.5
41.3

5.0
5.0

28.4
!32. 7

29.2
*35. 0

-.7
-2.3

i Estimates by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).

20



CORPORATE PROFITS
Preliminary data-indicate that corporate profits before taxes rose sharply in 2nd quarter of I960, reaching an
annual rate of $35.0 billion. Dividend payments were unchanged from 1st quarter and undistributed profits
more than $3 billion higher.
BILLIONS OF DOLLARS
40

939

1944

BILLIONS OF DOLLARS
40

1948

1949

3

1950

A

1951
SOURCE: DEPARTMENT OF COMMERCE (EXCEPT AS NOTED)

COUNCIL OF ECONOMIC ADVISERS

[Billions of

Corporate
profits
before

Period

1939
1944
1946
1947_ ___
1948
1949

'

_

1949: First quarter
Second quarter.
Third quarter
Fourth quarter
1950: First quarter
Second quarter *_..

.

__ _ _
*.

6.5
24. 3
23. 5
30. 5
33. 9
27.6

Corporate
tax
liability

Total

Dividend
payments

5.0
3.8
1.5
4.7
13. 5
10. 8
5.8
9.6
13.9
6.6
11. 9
18. 5
7.5
13.0
20.9
10. 6
17.0
7.8
Annual rates, seasonally adjusted

Undistributed
profits
1.2
6. 1
8. 1
12. 0
13.4
9. 2

28.3
26.4
28. 2
27.6

10.9
10.0
10.8
10. 6

17.4
16. 4
17. 3
16. 9

7.9
7.7
7. 4
8.2

9.5
8.7
10. 0
8.7

29. 2
35.0

11. 4
14.0

17. 8
21.0

8. 1
8. 1

9.7
12.9

* Estimates by Council of Economic Advisers.
NOTE.—No allowance has been made for inventory valuation adjustment.
adjustment.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




Corporate profits after taxes

See p, 20 for profits before taxes and inventory valuation

21

PERSONAL INCOME
Personal income advanced by almost $2 billion (annual rate) from June to July, reaching a total of $219
billion. Most of the increase was in farm and nonfarm proprietors' income. Salaries and wages increased only
slightly, while transfer payments dropped with the virtual completion of the NSLl dividend distribution.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

J

A

'

S

O

N

D

J

F

M

A

M

J

J

A

S

O

N

D

J

F M A M J

J

A

S

O

N

D

J

F M A M J

SOURCE: DEPARTMENT OF COMMERCE.

[Billions of dollars]
Proprietors' income
Labor income
Dividends
(salaries,
Business,
Total perwages, and
professional, and personal
sonal income other
Farm
interest
labor
and rental
income)
income

Period

1939___
1944
1947 _ _
1948
1949..--

_ _-

1949: June
July
August
September
October
November _
December. ...
1950: January
February
March
April
May
June
July*

72.6
165. 9
191.0
209. 5
206. 1
205.9
203. 5
204.3
203.4
202.4
205.7
208.4
214.6
215.4
219.3
213.8
214.5
217. 1
219.0

14.3
45. 7
116.2
11.8
15.6
122.3
135.0
17. 7
13.4
134.9
Annual rates, seasonally
13. 8
134.5
12.3
134. 3
12.8
134. 2
11.6
134.6
12. 1
133. 3
13. 1
134.4
12. 7
136.0
14.6
135.2
12.3
134.5
11.4
136. 9
11.0
138.6
12. 1
141. 1
12.1
143. 1
13.2
143.9

10.2
23.7
26. 8
29.6
28. 3
adjusted
28.4
27:9
27. 9
27.7
27.7
28. 1
27.9
28.9
28.7
28.8
28. 8
29.4
30.2
31.8

Transfer
payments

9.2
10.6
14. 5
16. 1
17.2

3.0
3. 6
11.8
11. 2
12.3

16. 8
16.6
16.8
17.0
17.2
17.2
18.9
17.5
17.7
18. 0
18. 2
17.8
17.8
17.8

12.4
12. 4
12. 6
12. 6
12. 1
12.4
12. 9
*18. 4
!22. 2
*24. 2
U7. 2
U4. 1
*13. 4
12.3

1 Includes veterans' insurance dividend. During first quarter, the payment was at annual rate of $8.5 billion (or $2.1 billion, quarterly total)
and during second quarter at $2.0 billion (or $502 million, quarterly total).
2 Preliminary estimates.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.

22



CONSUMER INCOME, SPENDING, AND SAVING
Disposable personal income in 2nd quarter declined about $2 billion (annual rate) from the
1st quarter postwar peak rate of nearly $198 billion when the bulk of the NSLI dividend was
distributed. Consumer expenditures continued to rise.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS
250

250

SOURCE:'DEPARTMENT OF COMMERCE

Disposable
personal
income *

Period

1939
1941
1942
1944
1946
1947
1948
1949

__
_.

- -

>_

_

_ _

--

-

__
_

_ _. __
--- - --- -- -

1949: First quarter
Second, quarter
Third quarter
Fourth quarter
1950: First quarter
Second quarter

-

__

___

__

___

70. 2
92.0
116.7
147.0
158. 9
169. 5
188. 4
187.4

189. 9
188. 2
185. 1
186. 8
197. 7
195. 5

Less: Personal
consumption
expenditures

Equals: Personal net
saving

Billions of dollars
67. 5
2.7
82.3
9.8
91.2
25.6
111.6
35.4
146. 9
12. 0
165. 6
3. 9
177.4
10. 9
178. 8
8. 6
Annual rates, seasonally adjusted
177. 4
12. 5
178.4
9.8
179.0
6.2
180. 6
6.2

182. 4
184.5

15.3
11.0

Net saving as
percent of disposable income

3.8
10.7
21.9
24. 1
7.6
2.3
5. 8
4. 6

6. 6
5.2
3.3
3.3
7. 7
5.6

i Income less taxes.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.




23

PERSONAL CONSUMPTION EXPENDITURES
Consumption expenditures increased again in 2nd quarter, with nondurables, especially food and clothing,
registering the major gains. Expenditures for durable goods continued at a high level. Most of the rise was
due to price increases and reflected little change in physical volume.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

200

2 00

ANNUAL RATES, SEASONALLY ADJUSTED
TOTAL EXPENDITURES

1951
SOURCE: DEPARTMENT OF COMMERCE

[Billions of dollars]
Personal consumption expenditures
Period

Nondurable
goods

Total

1939
19441946.
1947
1948.
1949-

67.5
111. 6
146.9
165. 6
177. 4
178.8

35.3
67.1
85.8
95. 1
100. 9
98.5

Durable
goods
6.7
7.1
16.6
21.4
22.9
23.8

Services
25. 5
37.4
44. 5
49. 1
53.7
56.4

Annual rates, seasonally adjusted

1949: First quarter
Second quarter
Third quarter
Fourth quarter
1950: First quarter
Second quarter __

_ _
.

NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.

24



177. 4
178.4
179. 0
180. 6
182.4
184.5

99.4
99.2
97.6
97.9
97.5
99.0

22.4
23.0
24. 7
25. 3
26. 9
26.7

55. 6
56.2
56. 6
57.4
58.0
58.8

PER CAPITA DISPOSABLE INCOME*
Per capita disposable income declined in 2nd quarter of I960, both in terms of current dollars
and in real purchasing power, as a result of the tapering off of the NSLI dividend.
DOLLARS

DOLLARS

1,600

— 1,600
ANNUAL AVERAGES

1949 DOLLARS- 2

I, 200,

I,EOO

C U R R E N T DOLLARS

J

2

3

1949

I

2

3
1950

I

2

1951

SOURCES : DEPARTMENT OF COMMERCE AND DEPARTMENT OF LABOR

Per capita disposable personal
income *

Period

Current
dollars

1939.
1941.
194219441946.
194719481949.

$536

691
867
1 065
1 125
1 177
1 285
1 256

1949 dollars s

$912
1, 110
1,247
1,388
1,333
1,248
1,270
1,256

Annual rates, seasonally
adjusted

1949:

1950:

First quarter
Second quarter
Third quarter
Fourth quarter
First quarter
Second quarter

„__
^

•__

. _

Consumers*
price index3
1949=100

58.8
62. 2
69.5
76.7
84.4
94.3
101.2
100.0
Not adjusted
for seasonal
variation

$1, 280
1,264
1,237
1,243

$1, 275
1,261
1,239
1,249

100. 4
100.2
99.9
99.5

1,310
1,291

1,329
1,294

98.6
99.8

1 Income less taxes.
2 Current dollars divided by the consumers' price index on the base 1949=100.
3 The consumers' price index has been roughly adjusted to take account of the understatement from December 1941-Febraary 1947. This
adjustment is in line with the report of the Mitchell Committee. The unadjusted index will be found on page 3.
Sources: Department of Commerce and Department of Labor.




25

AVERAGE HOURLY EAE!NIN"GS

- SELECTED INDUSTRIES

The hourly earnings in manufacturing industries reachiid a new high of $1.46 in July. The most important
rise was in nondurables with some increase also in di rabies.
DOLL/ms PER HOUR

DOLL ARS PER HOUR

1.60

1.50

DURABLE MANUFACTURING

NONDURABLE MANUFACTURING
1.40

1.50

1949 DOLLARS*

fC^**Z

/^**X
1.30

1.40

1949 DOLLARS*

'

'•

^^j^

x-/ ^^^^
!,30

/

\

I

1.20

CURR ENT

DOLLARS

- / "CURRENT
\l

X**^

DOLLARS

f
1.10-

1.20

0

7, i i , ! i , i i ,

. , . , , 1 M 1 , ,

2.1 0

1 11l l I 1l l 11

1948

1947

^ , . =

1949

2.00

/v^?

/

1949

M 1t 1I 1M 11
1950

RETAIL TRADE'

1.20

.few*,./^^^*^

FC^

1.10

/
S***01^

1.80

CURRENT DOLLAf 5

1.00

**

W^^ CURRENT

DOLLARS

^
.90

1.70

0

1 1 1 M 11 11 i 1

1948

1949 DOLLARS*

stT*^
1949 DOLLARS*

\ \ 1 111 in n iM i 1 1M i n
1947

1.30

BUILDING CONSTRUCTION

1.90-

0

1950

i I 11 l 11l 11 1

1 i | | | )| | | it

1947

t ! 1 t 1 I1 ! 11 1
1949

1948

I M 1 1 11 1 I 11

0 JJJLJ iJ LJ J LL '

1950

!

1947

M 1 I1 1 111
1948

SOURCE: DEPARTMENT OF LABOR

1 1 1 1 1 IM ! t J
1949

M M 1 i M M 1
1950

COUNCIL OF ECONOMIC ADVISERS

[Selected industries
All manufacturing
Period

1939 monthly average
1943 monthly average
1946 monthly average .
1947 monthly average-- _
1948 monthly average
1949 monthly average 1949: June
July
.__ _
August
September
October _ .
November
December
1950: January
February
March
April 4
May
June 44 ..
July
i Production and related workers.
Not available.
Source: Department of Labor,

3

26



Durable goods
manufacturing

Nondurable goods
manufacturing

Building
construction

Retail trade

1949
Current
1949
Current
1949
1949
Current
1949
Current
Current
dollars dollars 2 dollars dollars 2 dollars dollars 2 dollars dollars 2 dollars dollars 2
$0. 633
. 961
1.086
1. 237
1. 350
1.401
1.405
1. 408
1.399
1.407
1. 392
1. 392
1. 408
1.418
1. 420
1. 424
1.434
1.442
1. 454
1.461
2
4

$1. 077
1. 286
1.287
1. 312
1. 334
1.401
1. 401
1. 414
1.402
1. 403
1.398
1. 396
1. 421
1.437
1.442
1.441
1. 450
1.446
1.445
1.432

$0. 698
1. 059
1. 156
1. 292
1.410
1.469
1.475
1.477
1.473
1. 482
1. 458
1.457
1.476
1. 485
1.483
1. 486
1. 499
1.509
1. 524
1. 528

$1. 187
1. 418
1. 370
1.370
1. 393
1. 469
1.471
1.483
1.476
1.478
1. 464
1. 461
1.489
1. 505
1. 506
1. 504
1. 516
1. 514
1.515
1.498

(3)

(3)
(8)

$1. 171
1. 278
1. 325
1.324
1. 332
1. 319
1.328
1. 325
1. 325
1.334
1. 343
1. 350
1. 353
1. 355
1. 358
1. 365
1. 378

(3)

(33)

()
$1. 242
1. 263
1. 325
1.320
1. 337
1. 322
1. 324
1. 330
1. 329
1. 346
1. 361
1. 371
1. 369
1. 370
1. 362
1. 357
1.351

(33)
(33)
(
)
(3)
(33)
(3 )
()
()
$1. 848 ' $1. 826
1. 935
1. 935
1.924
1.918
1. 922
1. 930
1. 932
1. 936
1. 932
1.938
1. 952
1. 944
1. 953
1. 947
1.964
1. 982
2. 002
1.976
1.988
2.018
2. 019
1. 995
1. 986
2.008
2.000
2.006
1. 995
1. 983
3
(3)
()

(33)
( 3)
()
$1.009
1. 088
1. 137
1.147
1. 148
1. 146
1. 150
1. 140
1. 138
1. 126
1. 153
1. 145
1. 148
1. 156
1. 162
1. 172
(3)

Current dollars divided by consumers' price index on base 1949=100. See note 3 to table on page 25.
Preliminary estimates,

(33)
(3)
()
$1. 070
1.075
1. 137
1. 144
1. 153
1. 148
1. 147
1. 145
1. 141
1. 136
1. 168
1. 162
1. 162
1. 169
1. 165
1. 165
(3)

AVERAGE WEEKLY EAFiNlfl[GS Weekly earnings in maufacturing industries continued to rise iri July for the eighth consecutive month. As
a result of a shorter workweek, earnings in durable go ods man ufacturing dropped for the first time in I960;
r»ondurobles showed a substantial rise of almost a do lar.
DOL _ARS
65

PER WEEK

DOL LARS
60

DURABLE MANUFACTURING
60

55

1949 DOLLARS*

55

~^C

j*/ /*

N^xV

—^

yI949 DOLLARS*

45

,

1 1 I | 1 Ll Ll ' 1
1948

1947

.^^^^^^ CURR ENT DOLLARS

40

_JJLJ_±jJ_L_U_iJ

1949

0

,

,

1948

1949

IT, , , , 1 , , , , ,
1947

1950

,,,,,!,,,,?
1950

50

80

BUILDING CONSTRUCTION

RETAIL TRADE
+ 1949 DOLLARS*

75

^X*^^***^

^

45

xsJ^/^V, /

70

1949 DOLLARS*.

/

***

I

40

^/-^T
'•"""""""'^CURRENT DOLLARS

V

**O^

65

35

"^CURRENT D OLLARS

60
0

*£2**f"

DOLLARS
45

1 [ 1I 1 1111I 1

*/**

>^>-«<

^L. ^^^ -^^ x**"1^^ /**

50

RRENT

50

0

PER WEEK

NONDURABLE MANUFACTURING

30
1 1 1 M

I 1 1 1

M

LJJU L 1 IJLJ Ll

1947

SOURCE :

1948

! I 1 L1 1 1 I I 1 1

1949

, , , , , i ,, , ,r

0 ^Ji'll-LLUL

1950

1947

1 . 1, 1 1 11 1 M

1 t i l l 1 1 M

1948

DEPARTMENT OF LABOR

1

1 1

1949

^

1950

COUNCIL

OF

ECONOMIC ADVISORS

[Selected industries :
All manufacturing
Period

1939 monthly
1943 monthly
1946 monthly
1947 monthly
1948 monthly
1949 monthly

average
average.- _
average-average
average
average.

Durable goods
manufacturing

Nondurable goods
manufacturing

$26. 50
49.30
46. 49
52. 46
57. 11
58. 03

$45. 07
66.00
55. 08
55. 63
56. 43
58. 03

1949: June
July
August -_ _September
October
November .
December

54.51
54.63
54. 70
55. 72
55. 26
54. 43
56.04

54. 35
54. 85
54. 81
55. 55
55.48
54. 59
56. 55

57.82
57.31
57. 89
58. 69
58. 17
56. 82
59. 19

57. 65
57. 54
58. 01
58. 51
58. 40
56. 99
59. 73

50. 97
51. 55
51.31
52. 59
52.47
52. 07
52. 69

1950: January
February
March
April
May *
June 4
July *

56.29
56. 37
56. 53
56.93
57.68
58. 74
59.02

57.03
57.23
57. 22
57. 56
57.85
58. 39
57.86

59.40
59.47
59.74
61.01
61. 72
62. 94
62.50

60. 18
60. 38
60.47
61. 69
61. 91
62. 56
61.27

52. 91
53. 06
53.04
52. 17
52.83
53.92
54. 84

$23.
43.
43.
49.
54.
54.

* For production and related workers.
Not available.
Source: Department of Labor,

(33)
()
(33)
()
$68. 85
70.95

(33)
()
(33)
()
$68. 03
70.95

(33)
(3)
()
$40. 66
43. 85
45.93

(33)
()
(3)
$43. 12
43. 33
45. 93

50. 82
51.76
51. 41
52. 43
52.68
52. 23
53. 17

71.44
71.28
71. 95
70.69
71.80
70. 21
70.26

71.23
71. 57
72.09
70.48
72. 09
70.42
70.90

46.45
46.95
46. 87
46.58
46. 06
45.63
45.83

46.31
47. 14
46. 96
46.44
46.24
45. 77
46.25

53. 61
53.87
53.68
52. 75
52.99
53.60
53.76

68.76
67.00
68.83
70. 70
73.60
74. 41
(3)

69.67
68. 02
69. 67
71.49
73.82
73. 97
(3)

46.58
46. 26
46.26
46.47
46.83
47. 93

47. 19
46.96
46. 82
46.99
46.97
47.64
(3)

(3)
(33)
C33)
()
()
(3)
$46. 96 '$49. 80
50. 01
50. 61
51.41
51.41

$40. 58
57. 75
51. 92
52.99
53.50
54. 92




Retail trade

1949
Current
Current
1949
1949
1949
Current
Current
Current
1949
dollars dollars 2 dollars dollars 2 dollars dollars 2 dollars dollars 2 dollars dollars 2
86
14
82
97
14
92

8

Building
construction

(3)

*4 Current dollars divided by consumers' price index on the base 1949=100. See note 3 to table on page 25.
Preliminary estimates.

27

FARM INCOME
Higher prices for most farm products and seasonally larger crop marketings in July increased farm income
about 25 percent above the June level and about 6 percent above the level of July 1949,
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

1949 DOLLARS**

J----7

J
1940 41

42

43

44

45

46

4?

48

49

I

50

SOURCE; DEPARTMENT OF AGRICULTURE.

Period
1939 monthly average
1941 monthly average
1942 monthly average
1944 monthly average
1946 monthly average
1947 monthly average
1948 monthly average
1949 monthly average.
1949: June ..
July
August „
September
October
November
December.
1950: January _ _
_
February
March
April
May
June 44

.
- - ~

.-..

_.

-

.

__
__
_

_

___
__

July

1
Includes cash farm income from marketings and Government payments.
2
Converted from the reported base, 1910-14=100, to the base 1949=100.
8
Farm
income in current dollars divided by prices paid by farmers, interest,
4

Preliminary estimates.
Source: Department of Agriculture.

28



paid by
Farm income Prices
farmers (incl. Farm income
(millions of
(millions of
interest, taxes,
current
1949 dollars) 3
and wage rates)
2
dollars) 1
1949 = 100
1,478
724
49
1,851
981
53
2, 195
61
1,339
2,416
1,764
73
2,573
83
2, 136
2,632
96
2, 527
2,468
104
2, 567
2,359
100
2,359
2,033
101
2, 053
2,177
100
2, 177
2,417
100
2,417
2,634
99
2,608
3,203
98
3, 139
3,112
98
3,050
2,373
98
2,326
2,254
100
2,254
1,630
99
1,614
1,707
100
1,707
1,594
100
1,594
1,774
102
1,809
1,816
102
1,852
2,245
102
2,290
taxes, and wage rates, 1949=100,

CONSUMER CREDIT
Consumer credit increased $660 million during July to reach a total of $20.5 billion. Most of the increase
resulted from continued strong demand for all types of instalment credit.
BILLIONS OF DOLLARS

B I L L I O N S OF DOLLARS

25

25

1939

1943

1948

1949

END OF YEAR

1949

END OF MONTH
SOURCE :

BOAI

[Millions of dollars]

End of period

Total
consumer
credit
outstanding

Instalment credit
Total

Automobile
sale
credit

Other sale
credit and
loans

Charge
accounts

Other
consumer
credit *

1939
1943
1946
1947
1948
1949
1949: June—
July
August
September
OctoberNovember
December. _

7, 969
5,378
10, 191
13, 673
16, 319
18, 779
16, 124
16, 198
16, 453
16, 803
17, 223
17, 815
18, 779

4, 424
2,001
4,000
6,434
8,600
10, 890
9,123
9,335
9, 622
9,899
10, 166
10,441
10, 890

1,267
175
544
1,151
1, 961
3,144
2,499
2,610
2,761
2,876
2,986
3,085
3,144

3,157
1,826
3,456
5,283
6,639
7,746
6,624
6,725
6,861
7,023
7, 180
7,356
7,746

1, 544
1,498
3,054
3,612
3,854
3,909
3,274
3,123
3,064
3, 123
3, 197
3,454
3,909

2,001
1,879
3,137
3,627
3,865
3,980
3,727
3,740
3,767
3,781
3,860
3,920
3,980

1950: January
February
March
April
May
June 2
July

18, 344
18, 126
18, 302
18, 620
19, 085
19, 680
20, 340

10, 836
10, 884
11,077
11, 322
11,667
12, 108
12, 608

3,179
3,256
3,355
3,470
3,600
3,790
3,994

7,657
7,628
7, 722
7,852
8,067
8,318
8,614

3,506
3,233
3,211
3,241
3,290
3,392
3, 520

4,002
4,009
4,014
4,054
4,128
4, 180
4,212

_._

i Includes single-payment loans of commercial banks and pawnbrokers and service credit.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Board of Governors of the Federal Reserve System.




2

Preliminary estimates.

29

MONEY, BANKING, AND FEDERAL FINANCE
BANK LOANS AND INVESTMENTS
Commercial banks in July again expanded their loans by about $ i billion; they lowered their investments
in U. S Government securities by the same amount.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

150

150

1939

1943

1948

4

1949

•

END OF YEAR

F

M

I960

1949

1948
END

OF MONTH

SOURCE : BOARD OF 60VERNORS OF THE FEDERAL RESERVE SYSTEM

[Billions of dollars, all commercial banks]
End of period

1929
1939
1945
1947-.
1948
1949...
1949: June
.
July..._ .
August
September ....
October
November
December
1950: January
.
February
March
April .
May
June
July i

rp x |
lotai
loans and
investments

Bank loans

49. 5
40. 7
124. 0
116. 3
114. 3
120.2
113. 8
114. 7
117. 9
118. 5
119.5
119.7
120. 2
121. 2
120.6
120. 3
120 4
121. 2
122. 1
122.4

36. 0
17.2
26. 1
38. 1
42.5
43.0
41. 0
40. 5
41. 2
41. 7
41. 8
42. 7
43. 0
42. 9
43. 1
43.7
43. 8
44. 1
45. 0
46. 0

„ . _
.

* Preliminary estimates.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Board of Governors of the Federal Reserve System.

30



Total
13. 5
23. 4
97. 9
78. 2
71.8
77.2
72.7
74. 3
76. 7
76. 8
77.7
77.0
77.2
78. 3
77.5
76.7
76. 6
77. 1
77. 2
76. 4

Investments
U.S.
Government
securities
4.8

.

16. 3
90. 6
69. 2
62.6
67. 0
63. 2
64.4
66. 7
66. 7
67.6
66.9
67.0
68. 0
67.1
65. 8
65. 6
66. 1
66. 0
65.0

Other
securities
8. 7
7. 1
7. 3

9.0
9.2

10.2
9. 5
9. 8
10.0
10. 2
10. 1
10. 1
10.2
10. 3
10.4
10. 9
11. 0
11. 0
11.2
11. 4

MONEY SUPPLY
The privately-held money supply of $ 170.4 billion in July exceeded the peak held at the end of
1947 by about $ 400 million. Time deposits were higher but demand deposits and outstanding
currency were lower than at the end of 1947.
B I L L I O N S OF DOLLARS

B I L L I O N S OF DOLLARS

200
TOTAL DEPOSITS AND CURRENCY
(EXCLUDING U S, GOVERNMENT DEPOSITS)

1939

1943

1948

1949

1949

END OF YEAR

END OF MONTH
SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.

[Billions of dollars]
Total privately-held
money supply

End of period

1939
1943
1946
1947
.
1948
1949
1949* June
July
' August
September
October _
November
December
1950: January
February
March
April
May
June
" July 3

_

--•-

_ __

_ ...
-

-

>_

_

„__

«

.
.
:_.

__ _
-

.
-- -

63.3
112.4
164.0
170.0
169. 1
. 169. 8
165. 6
166.3
166.9
166. 3
167. 7
168. 1
169. 8
169.7
168. 2
167. 1
168. 5
169. 5
169. 7
170. 4

Currency
outside
banks
6.4

•

18.8
26.7
26.5
26. 1
25.4
25. 3
24.9
25. 1
24. 9
24. 9
25. 1
25.4
24. 5
24.7
24.6
24.6
24. 7
24. 6
• 24.4

Adjusted
demand
deposits *

29.8
60.8
83.3
87.1
85.5
85.8
81.9
83. 1
83.4
83. 1
84.3
85.0
85.8
86.4
84. 5
83.3
84. 5
85.3
85.4
86. 6

Time
deposits 2

27.1
32.7
54.0
56.4
57.5
58.6
58.5
58.4
58.4
58.4
58.4
58.0
58.6
58.7
59.0
59.3
59.5
59.5
59. 7
59.4

i Includes demand deposits, other than interbank and U. S. Government, less cash items in process of collection.
deposits in commercial banks, mutual savings banks, and Postal Savings System
Preliminary estimates.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Board of Governors of the Federal Eeserve System.

s
Includes
s




31

FEDERAL CASH RECEIPTS FROM
AND PAYMENTS TO THE PUBLIC
In 2nd quarter of 1950, cash payments to the public were $1.8 billion larger than receipts. Receipts were
larger and payments less than in the corresponding quarter of 1949.
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

2

|94?

3

4

2 IQAO 3

4

|950

EXCESS OF CASH RECEIPTS

Li

EXCESS OF CASH PAYMENTS

1949

1947

CALENDAR

TEARS

[Millions of dollars]
Calendar years
Calendar year total:
1946
_. _
1947
1948
1949--

_ _

Quarterly total, not adjusted for seasonal:
1947: Third quarter
Fourth quarter. .
1948: First quarter - .
Second quarter
Third quarter
Fourth quarter. ..
1949: First quarter
Second quarter Third quarterFourth quarter.

- _ _

__

1950: First quarter . . .
Second quarter *
* Preliminary estimates based on incomplete data.
Sources: Treasury Department and Bureau of the Budget.

Federal cash
receipts from
the public

Federal cash
payments to
the public

41, 426
44, 279
44, 920
41, 346

41, 372
38, 584
36, 954
42, 634

+ 54
+ 5, 695
+ 7,967
— 1,288

10, 220
9, 869

10, 257
8,536

—37
+ 1,331

15, 037
10, 238
10, 085
9, 560

8,637
9,033
8, 798
10, 486

+6, 400
+ 1, 205
+ 1, 287
—925

13, 122
8,814
10, 143
9,267

9,964
11, 389
10, 528
10, 753

+ 3, 158
—2, 575
— 385
— 1, 486

12, 235
9,303

10, 760
11, 105

+ 1,475
-1,802

Excess of receipts (+) or
payments (•—)

NOTE.—Detail will not necessarily add to totals because of rounding.

For sale by the Superintendent of Documents, IT. S. Government Printing Office, Washington 25, D. C.
Price 16 cents per copy; $1.75 per year; $2.25 foreign

32