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Economic Report
or tne President

III
TRANSMITTED TO THE CONGRESS
!

1







Economic Report
of the President
TRANSMITTED TO THE CONGRESS




JANUARY 20, 1958

UNITED STATES GOVERtiNliNT PRINTING OFFICE
WASHINGTON : 1958

Additional copies of this report are for sale by the Superintendent of Documents,
U. S. Government Printing Office, Washington 25, D. C.
Price of single copy, 65 cents




LETTER OF TRANSMITTAL

T H E WHITE HOUSE,

January 20, 1958.
To the Congress of the United States:
I present herewith my Economic Report, as required by Section 3 (a)
of the Employment Act of 1946. In preparing this Report, I have received
the assistance and advice of the Council of Economic Advisers. I have
also had the advice of the heads of the executive departments and independent agencies of the Government.
I set forth below, in condensed form, what I consider to be the major
conclusions and recommendations of the Report.
The Economy in 1957
The past year was a prosperous one, despite a decline in the closing
months. Over 65 million people were employed, 300,000 more than in
1956. The Nation's output of goods and services totaled $434 billion, and
personal income was $343 billion. Both were 5 percent larger than in the
preceding year. A considerable part of these increases, however, reflected
higher prices.
In the final quarter of the year, gross national product was about 1 J/i percent below the peak reached in the third quarter. Personal income after
taxes declined one-half of 1 percent, and personal consumption expenditures somewhat less. In December, however, unemployment amounted to
5.2 percent of the civilian labor force, compared with 4.3 percent in
September.
This change in economic conditions called for adjustments in economic
policies. During much of the year, the task of restraining inflationary pressures was paramount, and policies were directed to this end. In the closing
months of the year, and currently, the task has been to facilitate readjustments in the economy essential to the resumption of sustainable economic
growth, but to do so without reviving inflationary pressures.
The Current Economic Situation and Outlook
As we look ahead in 1958, there are grounds for expecting that the decline
in business activity need not be prolonged and that economic growth can be
resumed without extended interruption. The policies of Government will
be directed toward helping to assure this result.




in

The demand for goods and services for final use has been well maintained.
A considerable adjustment in inventories has already taken place, and present
holdings are generally not heavy. Personal income has fallen very little,
and purchases by consumers are continuing at a high level. The confidence
of business concerns in the economic future is evidenced by their long-range
plans for the expansion and improvement of production facilities and the
high rate at which they are carrying out these plans. The increasing amount
of resources committed to research and development is further evidence of
this confidence and assures the continued working of forces that make for
expansion.
Financial conditions are increasingly favorable to resumption of economic
growth. Credit is more readily available and its cost is lower. These conditions, together with the recent reduction in the cash investment required
of prospective home buyers under Federal mortgage insurance programs,
tend to promote increased home building. More ample and lower-cost
credit also favors a continuation of the large and growing volume of capital
expenditures by State and local governments, and should help moderate the
decline in investment outlays by business concerns.
At the turn of the year, the economy was beginning to feel the effects of
an acceleration of the placement of defense contract awards, prompted by
the need to move forward quickly with programs essential to the strengthening of the Nation's defenses.

The Longer Perspective
At a time like the present, when the economy is adjusting to the large
additions to productive capacity made in the past few years, it is well to view
our economic prospects in a longer perspective and to consider some of the
sources of our strength.
There are good reasons for confidence that a vigorous expansion of our
economy can be sustained over the years. Our domestic market for goods
and services has about doubled every quarter of a century, and we should
do at least as well in the next 25 years. The needs and wants of our growing
population will continue to enlarge markets for output. To keep pace with
expanding requirements, State and local outlays must continue rising at
some such rate as the recent $3 billion a year. Research and technological
developments are opening up vast new fields for profitable investment.
World-wide economic development can enlarge foreign markets for our
products. The annual personal savings of Americans, which are close to
$20 billion, and the strength of our financial institutions, will help attain
the economic capacity necessary to meet these growing requirements.
The latest challenge of international communism will require a further
increase in the economic claims of national security, which are already heavy.
If we follow suitable private and public policies, this challenge can be met




IV

without distorting our economy, or destroying the freedoms that we cherish.
Whatever our national security requires, our economy can provide and we
can afford to pay.
The Challenge to Economic Policies
A realistic appraisal of our economic prospects, though it warrants confidence, also requires that we acknowledge an unfavorable feature of recent
economic developments. In 1957, our gross national product rose 5 percent,
but four-fifths of this increase was accounted for by rising prices.
There are critical questions here for business and labor, as well as for
Government. Business managements must recognize that price increases
that are unwarranted by costs, or that attempt to recapture invesment outlays
too quickly, not only lower the buying power of the dollar, but also may be
self-defeating by causing a restriction of markets, lower output, and a narrowing of the return on capital investment. The leadership of labor must
recognize that wage increases that go beyond over-all productivity gains are
inconsistent with stable prices, and that the resumption of economic growth
can be slowed by wage increases that involve either higher prices or a further
narrowing of the margin between prices and costs. Government, for its part,
must use its powers to help keep our economy stable and to encourage sound
economic growth with reasonably stable prices.
The resumption and maintenance of economic growth promise greater
economic capability for meeting the Nation's needs. If this opportunity
is to be fully realized, however, growth must take the form of increases in
real output, accompanied by a stable price level. This can be achieved if
weight is given to long-run as well as short-run considerations in policies
and practices that affect our economic welfare. It can be guaranteed by
a public opinion that is alert to the consequences of wrong policies and
insists on policies which will yield economic growth without inflation.

Measures to Help Attain Economic Goals
A legislative program is presented in this Report to help solve urgent
problems that confront the Nation today, foster a resumption of growth,
and build stronger foundations for economic advances in the years ahead.
Fiscal policies are recommended to meet, within the framework of a budget
in which expected revenues are adequate to cover projected expenditures,
the Nation's needs for strengthened defenses, for the improvement of our
position in science and education, and for other essential activities. Legislation is proposed to increase the effectiveness of the Federal Government's
credit programs and its programs for the insurance and guaranty of private
credits; to widen and strengthen our economic ties with other nations; to
foster adjustments intended to bring agricultural production into line with




commercial demands and reduce the fiscal burden of price-support programs; to give individuals greater protection against economic hardships,
promote integrity in labor-management relationships, and improve industrial relations; to enhance the competitive character of our private enterprise system; and to strengthen the economic position of small businesses.
Favorable consideration of this program will materially enlarge the
Nation's capacity to meet present challenges and to achieve sustainable
economic growth and improvement in the years ahead.




DWIGHT D.

VI

EISENHOWER.

CONTENTS
Page

1. Economic Goals and Policies in a Free Society
Economic Growth
Economic Stability
Price Stability
Free Competitive Enterprise
Economic Change and Shifts in the Emphasis of Policy
Economic Policies in 1957
CHAPTER 2. The American Economy in 1957
Shifts in the Major Components of Demand
Employment and Incomes
Prices, Costs, Profits, and Productivity
Financial Developments
Agriculture
The Extent of the Over-All Decline
CHAPTER 3. Foreign Developments and the American Economy...
Changes in Production
The Course of World Trade
Internationa] Financial Developments
Future Problems and Policies
CHAPTER 4. Economic Opportunities and Challenges Ahead
Appraisal of the Current Economic Situation
The Longer Perspective
The Challenge to Economic Policies
CHAPTER 5. A Legislative Program to Help Achieve National
Economic Goals
Government Finances
Federal Credit Programs
Science and Education
Small Business and the Competitive System
Personal Welfare
Agriculture
Foreign Economic Policy
Federal Economic Statistics
CHAPTER




1
1
3
4
5
5
6
10
12
17
22
27
34
38
40
40
42
46
48
49
49
50
53
55
55
57
60
63
64
67
70
73

APPENDIXES
A. Summary of Recommendations in the Economic Report of the
President
B. Report to the President on the Activities of the Council of
Economic Advisers During 1957
C. Program for Improving Federal Statistics in Fiscal Year 1959. .
D. The Consumer Price Index
E. Productivity Statistics
F. Statistical Tables Relating to Income, Employment, and
Production

Page
75
81
89
97
105
Ill

LIST OF TABLES AND CHARTS
{Chapters 2 and 3 and Appendix E)
Tables

1. Changes in Employment, Income, and Production, 1955-57....
2. Changes in Gross National Product and Its Major Components,
1955-57
3. Changes in Nonagricultural Employment Since December 1956..
4. Distribution of Employees Receiving Wage Increases Under
Major Labor Agreements, 1956-57
5. Security Offerings, 1954-57
6. Changes in Commercial Bank Holdings of Loans and Investments, 1954-57
7. World Industrial Production, 1955-57
8. Changes in World Trade, 1955-57
9. U. S. Merchandise Exports and Imports, 1953-57
E—1. Indexes of Output per Man-Hour for the Private Economy,
1948-57

10
16
20
21
27
28
41
42
44
108

Charts

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.

Output of the Economy
Shifts in Major Components of Demand
Personal Income and Consumption
Employment and Income
Wholesale Price Changes
Consumer Prices
The Pattern of Credit Expansion
Liquidity of Commercial Banks and Nonfinancial Corporations.
Member Bank Reserves
Interest Rates and Bond Yields
Indicators of Agricultural Conditions
Federal Agricultural Programs
World and U. S. Foreign Trade
U. S. Balance of Payments




VIII

11
13
17
18
23
25
29
30
31
33
35
36
43
45

Chapter 1

Economic Goals and Policies in a Free Society

D

EVELOPMENTS IN 1957 illustrate how rapidly changes can occur
in the problem of maintaining growth with reasonable stability of
prices in a dynamic, free enterprise economy. Production, employment, and
income were high, but tended to decline somewhat toward the year's end.
During much of the year, a rise in the consumer price index accompanied a
slowing down in the rate of growth of national output. Small increases in
the price index continued even after industrial production and employment
had turned downward and inflationary pressures had been substantially
diminished. In recent months, fresh challenges have arisen: to strengthen
our defenses; to improve our position in science and education; and to unite
our efforts more effectively with those of other countries for the achievement
of security, freedom, and improvements in material welfare.
These changes, compressed into a short time span, underscore the need
for a balanced conception of national economic goals, if private and public
policies and programs are to serve all our people and advance the long-run
as well as the immediate interests of the Nation. We cannot say that we
have only one goal, unless it is to advance the general welfare. Sustainable
and balanced growth in our economy is needed to assure our defenses, to
satisfy our growing wants, and to enable us to assist healthy expansion
and improvement in other economies of the free world. Also, we seek to
hold economic fluctuations within narrow limits, to maintain a reasonably
stable price level, and to avoid deflationary as well as inflationary developments. And we insist on striving for these goals within a framework of
free competitive institutions.
To achieve a proper balance among these sometimes conflicting objectives
is a difficult task. Success requires an understanding by all of us of our
national economic objectives and of private and public responsibilities for
helping achieve them. Accordingly, this chapter is devoted to a statement
of these objectives and a brief review of the steps taken during the year to
attain them.
ECONOMIC GROWTH

Confidence that economic growth and improvement within a framework
of free institutions are feasible national goals is evidenced by the stress
which the Employment Act of 1946 places on "maximum production,




employment, and purchasing power." The record of the 12 years that have
elapsed since the Employment Act was passed has abundantly justified this
confidence and clearly demonstrated the strength of the forces that make
for growth in a free economy. A rising national output has enabled us to
make up arrears that accumulated during the War. Most of the heavy
requirements arising from the increase in our population and the persistently
expanding needs and wants of our people are being met. We are also
fulfilling greatly enlarged world responsibilities.
The aggregate of goods and services produced today is nearly one and a
half times what it was when the Employment Act was passed. This is an
average rate of economic growth of 3l/2 percent a year. There are 10 million more civilian jobs now than there were in 1946. More than $350
billion of private funds have been devoted since then to the expansion and
modernization of productive facilities. In addition, huge investments have
been made in housing, schools, hospitals, roads, and other private and public
improvements.
The use of these vast resources to increase our productive capacity and
our fixed public and private assets has been accompanied by a sustained
advance in current consumption. The output of consumer goods and
services is 40 percent higher today than it was in 1946. The increase
over the period has averaged about 3 percent a year.
In short, our economy has exhibited a remarkable capacity for sustained
and balanced growth. The American people and the free enterprise
system have responded well to the challenges of our increasing
requirements.
These challenges continue. In some important respects they have become greater. Despite our utmost efforts, international tensions persist.
This hard fact emphasizes the need for a sound and growing economy
to assure our defenses. The national security burden carried by our
economy is a heavy one, claiming about 10 percent of our national
output. We do not abandon hope for arrangements under which less of
our own and of the rest of the world's resources can, with safety, be devoted
to military preparedness. But pending measurable progress in these efforts,
Americans will not shrink from the task of defending our freedoms, whatever the necessary cost.
A sound and growing economy is needed also to meet the requirements
of our expanding population. There are 32 million more Americans now
than at the end of World War II, and the number is increasing at the rate
of about 3 million a year. Heavy economic requirements are implied by this
increase. A huge expansion of educational personnel and physical facilities will be required to train increasing numbers of students for the higher
level of technology on which our security and welfare depend. Our
larger population will also require increased facilities for the production
and distribution of goods and services, and for health and recreation.
Production must expand as fast as population merely to maintain our




present consumption standards. Even higher rates will be necessary
as these standards rise.
Apart from our civilian and cjefense requirements, economic growth is
needed to help meet our expanded international responsibilities. These
include the provision of public and private capital to assist economic development abroad, as well as military and economic aid to countries associated with us in the common defense effort.
Although the rate of economic growth that is best suited to the Nation's
capacity and requirements cannot be stated precisely, the low current
rate would clearly be unsatisfactory as a continuing condition. We
must always be alert to question the adequacy of the rate of economic
growth and to consider whether further encouragement and incentives are
needed, and if so how best to provide them. Yet we must be continuously on
guard against resort to measures that might provide a spurt in activity at
the cost of impairing the long-run health of the economy.
ECONOMIC STABILITY

When the Employment Act was being considered in the Congress, fears
were expressed that the transition from war to peace would entail serious
economic dislocation and abnormally high unemployment. Actually,
the transition was made with relatively little contraction in production, employment, or income, despite the large reductions in national
security expenditures. The supporters of the legislation were also mindful
of the waste of resources which economic fluctuations had occasioned in the
past. The Council of Economic Advisers was accordingly directed by the
Employment Act to develop and recommend to the President national economic policies "to avoid economic fluctuations or to diminish the effects
thereof."
Economic stability as an aim of national policy clearly means more than
fostering the maintenance of production, employment, and income at constant levels. Extended lapses from normal rates of growth must be resisted
and their effects diminished where possible. And every effort should be
made to moderate surges that go beyond rates of growth that can be sustained over longer periods. Such surges often involve increases in limited
sectors of the economy that cannot be sustained and that may lead to serious
imbalances. The proper objective of national economic policy, to the
achievement of which private as well as public actions must contribute, is
to strive to limit fluctuations in the rate of over-all economic growth to a
relatively narrow range around a rising trend.
Because our economy responds to forces and conditions that are continually changing in intensity and character, economic growth will inevitably
proceed at a somewhat uneven pace. The high rate of economic growth
that occurs when ground lost during a recession is being recovered cannot
continue indefinitely. When economic resources are close to being fully
used, even though there may be slack in some sectors of the economy, expan-




sion normally proceeds at a slower pace. Efforts to accelerate growth
under these conditions may succeed only in generating inflationary pressures.
When readjustments are being made, with some sectors of the economy
remaining unchanged or contracting while others are expanding, over-all
economic activity may show no growth for a time, or may even recede
slightly. The establishment of a new balance which such a readjustment
entails is often an essential phase in the operation of a dynamic enterprise
system. It is the means by which the economy corrects previous excesses
and prepares for resumption of over-all growth. Through its economic
policies and programs, Government can help achieve this improved balance
and speed the resumption of sound economic growth.
PRICE STABILITY

A clear responsibility rests on Government to pursue policies that will
help prevent inflation. Although the harmful consequences of inflation
spread widely through the economy, they fall with unequal severity on different individuals and on different economic sectors. Some persons may
obtain an increase in money income that is greater than the increase in living
costs, while others may fail to do so. Some industries may be in a better
position than others to adjust prices promptly to rising costs. As a result,
the relative economic positions of individuals and of different industries may
be altered, sometimes in ways that harm the national welfare by lessening incentives to enter certain essential vocations and by impeding the flow of
resources into important sectors of industry. Similarly, although the investment income of some individuals may rise during an inflationary period,
that of others, and frequently the great majority of those who have only
modest savings, does not increase at all. Consequently, persons in the latter
group suffer a decline in the value of the income received and a diminished
purchasing power of their savings when repaid. The effect is to reduce
the incentive to save, which tends to dry up one of the major sources
of capital upon which maximum employment and economic growth depend.
Furthermore, price inflation directs activities into speculative channels and
distorts private and public obligations and contracts that are expressed in
fixed dollar amounts. Finally, changes in the value of money disrupt international trade and financial relations. In these and other ways, inflation
weakens our capacity to achieve and sustain balanced economic growth.
The task of restraining price inflation is a continuing one for a free society
experiencing high production, employment, and incomes over long periods.
In such a society, pressure on prices may arise from a number of sources.
One is the rapid increase and concentration of demands on scarce skills and
resources and on output which is limited by capacity. Another is the exuberance, even imprudence, of some individuals and businesses during good
times in making commitments that assume continual inflation in prices.
Still another is the exercise of economic power by individuals and groups




favored by temporary conditions or by their place in the Nation's productive
system.
We must learn to conduct our economic affairs in ways that will harness
the expansionary forces of our free economy for the increase of our national
strength and well-being, and must prevent these forces from finding expression in a depreciation in the value of our money. This task entails heavy
responsibilities for private individuals and groups, and for Government, to
pursue policies that will assure that economic expansion provides an increase
in real output and does not consist merely of larger money values reflecting
higher prices. A strong and growing economy is needed for our national
security, for meeting the needs of our expanding population, and for improving our level of living. Reasonable stability of prices is needed also, for
reasons of equity and as a condition for sustaining economic growth. Failure
to achieve these goals would court the danger of controls incompatible with
our way of life which would eventually impede advances in our economic
welfare.
FREE COMPETITIVE ENTERPRISE

The productiveness of the American economy derives from its reliance on
private enterprise and on the incentives and opportunities which such a
system supplies for the development and use of individual talents and energies. Initiative and efficiency are stimulated and rewarded through the
market place; pressures are exerted to remedy inefficiencies; and economic
resources tend to be used in accordance with the preferences of consumers.
This way of organizing production and consumption both encourages vigorous economic growth and reinforces our freedoms in the political and social
spheres. Thus, the strengthening of free competitive enterprise not only is
a means for promoting economic growth but also is, in itself, a major objective of policy.
This view was held by the authors of the Employment Act, who made
it explicit that Government, in seeking to achieve maximum production,
employment, and purchasing power, should do so "in a manner calculated
to foster and promote free competitive enterprise." Accordingly, in our
efforts to achieve economic growth and at the same time to avoid price inflation, we place reliance on measures that involve a minimum of direct
intervention in the affairs of individuals and private groups. The corollary
of this reliance is that the policies and practices of individuals and private
groups must contribute to, not hinder, the achievement of economic growth
with reasonably stable prices. With such assistance toward making the
joint effort a success, pressures for direct Government controls are averted.
ECONOMIC CHANGE AND SHIFTS IN THE EMPHASIS OF POLICY

No one goal alone provides a complete guide to public policy in economic
matters. In an economy where changes are as rapid and far-reaching as
those which occur in ours, the accent of policy shifts according to the logic




of events. At times the emphasis may be mainly on the containment and
reduction of inflationary pressures, which has been the case during much of
the period since 1955. At other times, as at present, the accent may properly
be placed on encouraging orderly readjustment within the economy and
facilitating the resumption of economic growth. At all times, policy must
be capable of responding to unusual demands, such as those that have been
felt recently as a result of international developments.
ECONOMIC POLICIES IN

1957

In 1957, policy had to cope with important changes in the economy.
The paramount task during much of the year was to restrain inflationary
tendencies. However, as the year developed, these tendencies diminished
in strength. Current demand failed to keep pace with growing industrial
capacity in a number of lines. Shortages of goods became fewer and were
largely eliminated after the middle of the year. Prices of basic commodities
began to decline in the early months, and the rise in prices of finished industrial commodities was moderated. The index of consumer prices, however,
which had started to rise in April 1956, continued upward with only brief
pauses. In the late summer, production, employment, and sales leveled off
or declined in a number of lines; and as the year closed, indicators of over-all
economic activity moved down in response to the using up of inventories
and to somewhat lower domestic and foreign sales.
This shifting of economic forces called for adjustments in public policies.
For the first three quarters of the year, Federal Reserve operations were
designed to limit the expansion of bank credit and to hold down increases
in the money supply. A partly seasonal reduction of $1.6 billion in Federal
Reserve holdings of Government securities kept the reserve position of member banks under continuous pressure. The pressure on reserves induced
member banks, despite an increased discount rate, to borrow more heavily
from the Federal Reserve System. From April through mid-October,
member bank borrowings fluctuated around $ 1 billion, and net free reserves
(the difference between excess reserves and member bank borrowings)
remained negative, at close to $500 million.
These restrictive measures had a marked effect on the money supply and,
jointly with the heavy demand for capital and credit, on interest rates.
Demand deposits, the most important component of the money supply,
were virtually the same at the end of 1957 as two years earlier. During
the same period, the dollar volume of total output increased 7 percent.
With demands for capital and credit continuing substantial, and the supply
of funds under increasing pressure, interest rates rose sharply in the first
half of 1957. In August and September, the costs of financing for corporations and State and local governments were well above anything experienced for many years. By mid-October, the yield on long-term Government securities had reached 3.78 percent, and the cost to the Federal
Government of its shortest term borrowing had risen to 3.66 percent, the
highest in 24 years.




Federal fiscal policies were also directed to restraining inflationary tendencies. Beginning early in the year, all Federal expenditure programs were
closely reviewed to effect economies wherever such action was consistent
with essential program objectives. No general reduction of taxes was undertaken, and reductions in specific taxes—certain excise taxes and the tax rate
on corporate income—that were scheduled to occur on April 1, 1957 were
postponed. The Federal budget was balanced during the calendar year
1957, and $1.7 billion of debt was retired.
Treasury financing operations were designed to help sustain economic
growth and at the same time to produce a better debt structure. More
than $10 billion of the Treasury's new marketable offerings had a maturity
in excess of 1 year; Treasury notes varying in maturity from 3 to
5 years were offered on six different occasions; and more than $500 million of long-term bonds were issued in October and again in December. The
effective rates of interest to maturity on Series E and H Savings Bonds were
raised to 3% percent, as of February 1, 1957, to encourage saving in these
forms; sales of Series J and K Savings Bonds were discontinued on April
30, 1957, in view of the high rate of redemption of these fixed-interest
securities.
A number of steps were taken to moderate the impact on specific sectors
of the economy of the general measures to restrain inflationary tendencies.
On March 29, 1957, in two moves designed to assist prospective home buyers, the Federal Housing Administration (FHA) reduced its minimum downpayment requirements to the limit then permitted by law, and the Federal
Home Loan Bank System undertook to encourage greater mobility of mortgage funds among different areas of the country by authorizing insured member institutions to buy and sell participating interests of up to 50 percent in
home mortgage loans. In May, the Veterans Administration (VA) began
the immediate processing of direct loan applications for veterans living in
localities where private lenders had restricted their participation in the VA
Home Loan Guaranty Program. On August 6, FHA reduced downpayment requirements by the full amount authorized by the Housing Act of
1957 and, in order to attract additional funds into home financing, raised
the maximum interest rate to 5^4 percent.
Other actions were taken by FHA to simplify and expedite the processing
of home purchase applications in remote areas, and the insurance premium
on repair and modernization loans was reduced. For the year as a whole,
about $1 billion of home mortgages were purchased by the Federal National Mortgage Association in its secondary market operations, in order to
relieve particularly acute shortages of available funds.
Although business needs for credit were generally met well by banks and
other private financial institutions, financing assistance from the Small Business Administration proved useful in helping to satisfy the special needs of
many small concerns. During 1957, this agency approved $162 million of
loans, 33 percent above its 1956 volume.




The credit policy of the Federal Reserve authorities continued unchanged
until mid-October. By that time, mainly because of a fall in the demand
for loans, member bank borrowings at the Federal Reserve Banks began
to decline, and the net deficiency of reserves gradually fell. All but one of the
Federal Reserve Banks reduced their discount rates from 3 ^ percent
to 3 percent between November 15 and November 29, initiating a decline
in interest rates and bond yields. A further absorption of the net reserve
deficiency occurred in December. In the last week of the year, excess
reserves were greater than member bank borrowings by $74 million. Interest
rates and bond yields had returned to approximately the levels reached in
late 1956 and early 1957.
Increasing the availability and lowering the cost of credit are measures
that help moderate a decline in business investment. They also permit
capital outlays by State and local governments that might not otherwise be
feasible. Largely through their impact on the yields available on corporate
securities and Government obligations, they widen the spread between the
return on home mortgages and on competing uses of funds. They tend
thereby to make financing more readily available for home construction and
purchase and to promote a higher level of building activity. Their effectiveness in this connection was strengthened in January 1958 by actions taken
by Federal housing and home financing agencies. The Federal Housing
Administration announced the rescinding of a rule, adopted in April 1955
as an anti-inflationary measure, that prohibited the inclusion of closing
costs in the maximum insurable amount of home mortgage loans. FHA also
announced certain changes in the permissible discounts on insured mortgage loans, calculated to make funds more readily available in areas of the
country still experiencing a relative scarcity and to bring the yield on insured
mortgage investments more nearly into alignment with market rates in areas
having more adequate supplies. At the same time, the prices at which the
Federal National Mortgage Association buys mortgages were adjusted, also
to increase the availability of funds for home construction and purchase.
In 1957, steps were taken to expedite activity in certain Federal construction programs involving no direct capital charge on the budget, and to
accomplish a needed expansion of the military housing program. These
moves were made with full realization of the fact that resources of labor
and materials in some parts of the economy continued relatively short,
particularly in construction, and that a sharp increase in demand might
result in further increases in costs and prices. For this reason, they were
taken cautiously, to avoid reviving inflationary pressures in the face of
enlarged national security requirements. At the turn of the year, the
economy was beginning to feel the effects of an acceleration of the placement of defense contract awards, prompted by the need to move forward
quickly with programs essential to the strengthening of the Nation's defenses.
Events in 1957 show how important it is for private and public policies
and practices to complement each other as we seek to achieve economic




8

growth with reasonable stability of prices. Decisions which give rise to
wage increases generally in excess of improvements in productivity, or to
price increases that typically go beyond increases in costs, make this task
more difficult. If fiscal and credit policies are sufficiently stern to keep the
price level from rising, there are risks of economic dislocation, an unnecessarily slow rate of economic growth, and extreme and inequitable pressures
on some who are not themselves contributors to the inflation of costs and
prices. On the other hand, if economically unwarranted increases in wage
rates or prices are validated by credit and fiscal policies, a persistent decline
in the value of the dollar results.
Neither of these is an acceptable alternative, and neither is consistent
with sustainable expansion of the economy. The conclusion is inescapable
that, if we are to have orderly and adequately rapid growth in the economy,
our wage-making and price-making arrangements must produce results
consistent with a reasonably stable price level. They must do so within a
free competitive economy. Freedom, including econornjc freedom, requires
self-discipline. If important groups ignore this truth, the alternatives are
either an economy damaged by inflation or controls that are incompatible
with our free competitive institutions.




Chapter 2

The American Economy in 1957
T H E YEAR 1957 was a prosperous one, despite the decline in the
•*" final quarter. Economic expansion continued, though at a lower rate.
Production, employment, and income again attained record levels. For
the year as a whole, gross national product amounted to $434 billion and
personal income to $343 billion, both some 5 percent above 1956. Civilian
employment increased by 300,000, and the annual average of unemployment
showed little change from 1956 (Table 1).
TABLE 1.—Changes in employment, income, and production, 1955-57
Percentage change
Item

1955

1956

19571
1955 to
1956

1956 to
19571

Millions of persons
EMPLOYMENT »

Civilian labor force 3__
Employment
Nonagricultural
Agricultural

65.8

__

_

TTnP.mploymfint

67.5

67.9

2.6

0.6

62.9
56.2
6.7

-

64.7
58.1
6.6

65.0
58.8
6.2

2.8
3.4
-2.2

.5
1.1
-5.3

2.9

2.8

2.9

-2.8

4.0

50.1
16.6
33.5

Employees in nonagricultural establishments *
M anufactur ing
Nonmanufacturing

51.9
16.9
35.0

52.6
16.8
35.8

3.6
2.1
4.4

1.3
-.6
2.2

Billions of dollars
INCOME

Personal income disbursements 5
Disposable personal income 6
Corporate profits and depreciation
Corporate profits:
Before taxes
After taxes
_
_.

311.1
270.2
57.9

332.6
287.2
60.0

349.7
300.0
60.7

6.9
6.3
3.6

5.1
4.5
1.2

42.5
21.0

43.0
21.0

42.0
20.6

1.2
.0

-2.3
-1.9

417.4

430.3

433.9

3.1

.8

143

2.9

.0

PRODUCTION

Gross national product (1957 prices)

1947-49=100

Industrial production

139

143

1 Preliminary.
2
Percentage changes based on unrounded data.
3 Bureau of the Census data (new definitions). See Table F-17.
4
Bureau of Labor Statistics data. See Table F-22 for definition.
8
Total personal income plus personal contributions for social insurance.
• Total personal income less personal taxes.
Sources: Department of Commerce, Department of Labor, Board of Governors of the Federal Reserve
System, and Council of Economic Advisers.




IO

The decline which became apparent in the last quarter of the year in
our broadest measures of economic activity followed an unusually
long period of expansion. Beginning in 1954, business activity was carried
upward by large increases in demand, first in one part of the economy
and then in another. The expansion was launched by rapidly increasing outlays for residential construction, and late in 1954 there was an upsurge of
demand for new automobiles. As the force of these demands began to wane
in mid-1955, an enormous increase in business expenditures for new plant
and equipment emerged, reinforced by a heavy accumulation of inventories.
In late 1956 and early 1957, as plant and equipment expenditures began to
level off, national security expenditures increased, and exports rose sharply,
sustaining the advance. But demands were being somewhat moderated by
a reduction in the rate of increase of inventories, and the over-all rate
of expansion was clearly slowing down. The rise of expenditures and incomes in the latter part of 1956 and most of 1957 was largely matched
by an increase in prices. The physical output of goods and services rose
only slightly, and throughout 1957 industrial output remained below the
peak registered in December 1956 (Chart 1).
CHART

1

Output of the Economy
Total output of goods and services decreased in late 1957.
Industrial production began to decline earlier and fell rather
sharply in the closing months of the year.
BILLIONS OF DOLLARS *

INDEX, 1947-49 » 100
SEASONALLY ADJUSTED

450

GROSS NATIONAL PRODUCT
IN 1957 PRICES
(LEFT SCAL

425
X.
^

400

GROSS NATIONAL PROOUCT
IN CURRENT PRICES
(LEFT SCALE)

150

375

140

INDUSTRIAL PRODUCTION
(RIGHT SCALE)

1955

130

1956

* ANNUAL RATES.
SOURCES: DEPARTMENT OF COMMERCE, BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM, AND COUNCIL OF ECONOMIC ADVISERS.




11

1957

By mid-summer the balance of economic forces had shifted, though
expenditures of State and local governments continued to increase and
outlays on residential construction began to move upward. Business expenditures on plant and equipment declined slightly in the final quarter
of the year. The sharp advance in national security outlays ended in the
second quarter, and exports decreased. A curtailment of orders for new
equipment and generally cautious business policies had reduced the accumulation of inventories to an annual rate of $1 billion in the first three quarters
of the year; in the final quarter inventories were being reduced, on balance,
at an annual rate of $3 billion, or possibly more, as the further decline in
sales and the decrease in backlogs of unfilled orders led to curtailed production schedules. With employment and incomes reduced slightly, sales at
retail leveled off and then declined. Reflecting these movements, gross
national product was at a rate of $433 billion in the fourth quarter of the
year, about 1 l/i percent below the $439 billion reached in the third quarter.
SHIFTS IN THE MAJOR COMPONENTS OF DEMAND

The pattern of economic developments during the year was shaped
largely by the shifts in three major components of demand—business outlays
on plant and equipment, exports, and government expenditures. Important changes occurred also in construction expenditures and the management of business inventories (Chart 2). These shifts in demand,
through their impact on production and employment, and thus on incomes,
in turn affected the expenditures of consumers, the ultimate demand in our
economy.
Business Outlays on Plant and Equipment
The increase in business outlays on plant and equipment from the first
quarter of 1955 to the third quarter of 1957 was of boom proportions,
amounting to almost 50 percent. The gains in some industries were particularly large. Railroads more than doubled their capital outlays. Expenditures by manufacturers of durable goods increased by nearly 75
percent. New business was placed with producers of capital goods at such
a pace that, even with production at capacity limits, backlogs of unfilled
orders became extremely large. The pressure of demand in this sector
of the economy was further increased as manufacturers of investment goods
and their suppliers expanded their working inventories.
But in the second half of 1956 unfilled orders of producers of investment
goods rose more slowly, and by the end of the year the major expansive influence of investment spending had subsided. New orders received and the
volume of unfilled orders began to fall. Expenditures on capital goods by
most industries continued to rise through the first three quarters of 1957,
but they declined moderately toward the year's end. For the year as a




12

CHART 2

Shifts in Major Components of Demand
Business fixed investment leveled off in 1957, and the rate of
inventory accumulation declined.

Federal outlays, after rising for

a year, were reduced in the second half of 1957.
BILLIONS OF DOLLARS
SEASONALLY ADJUSTED ANNUAL RATES

60

S

50

40

. FEDERAL OUTLAYS FOR
GOODS AND SERVICES

..'"" ^ B U S I N E S S FIXED INVESTMENT-^

30
STATE AND LOCAL EXPENDITURES
FOR GOODS AND SERVICES

20

RESIDENTIAL CONSTRUCTION

10

-10

1954

1955

1956

1957

- 1 / PRODUCERS* DURABLE EQUIPMENT AND NONRESIDENTIAL CONSTRUCTION.
SOURCES: DEPARTMENT OF COMMERCE AND COUNCIL OF ECONOMIC ADVISERS.




whole, business expenditures for new plant and equipment were more than
in any previous year and 6 percent more than in 1956. When adjustment
is made for higher prices, however, it appears that there was no increase
after the turn of the year in the rate of installation of plant and equipment.
Exports
Exports were a second major force in the expansion of the American
economy to mid-1957, and also a contributor to the downward movement
in the latter part of the year. Exports of goods and services increased swiftly
from early 1956 to the first quarter of 1957, partly because of special circumstances, including the extra demand for United States petroleum generated by the temporary disruption of normal shipments via the Suez Canal.
Later in the year, however, these special forces subsided. The demand for
exports was also reduced by a slowing down in the rate of economic expansion
abroad and by foreign exchange difficulties in a number of countries. As
a result exports declined in the autumn. Imports, on the other hand, showed
little change from the high level reached in 1956. Exports remained
higher than imports, but by a reduced margin. By the end of the year,
net foreign investment, which reflects mainly this relation, was $1J/2—2 billion lower, at an annual rate, than at the beginning of the year.
Government Expenditures
A third major force affecting economic developments was a change in
purchases of goods and services by Federal, State, and local governments.
The total of these outlays rose $7*4 billion between mid-1956 and mid-1957,
with 60 percent of the increase representing higher Federal spending for
national security purposes. This increase in Federal expenditures was
accompanied by a large rise in employment and inventories in the industries
immediately affected, notably aircraft. After the middle of the year, however, military procurement outlays and awards of new contracts were reduced, and total Federal purchases declined moderately. A rise of about
$3 billion in the total of social security outlays, other transfer payments, and
interest on the public debt further increased tptal Government cash outlays
to the public in 1957 and supplemented consumer incomes.
State and local governments continued to increase their outlays on construction and on goods and services, adding $3 billion in 1957 to their
over-all rate of expenditures. Such outlays on construction, including work
done with Federal assistance, were 9 percent more than in 1956. There
were substantial increases in the construction of schools, highways, hospitals,
and sewerage and water systems. These outlays were continuing upward
at the end of the year.
Construction Expenditures
The long upward movement in total construction expenditures continued
in 1957. Although there was some decline in outlays on residences in the
first half of the year, continuing a movement which had started early in
1955, this trend was later reversed. Fewer dwelling units were started in




1957 than in 1956, but in the second half of the year home building was
going forward at a rate only slightly below that of 1956. A considerable
part of the upturn in residential building activity was in the construction
of apartment dwellings, a sector of the industry that had been relatively
inactive for a few years.
The year witnessed a sharp increase in private institutional building,
for which outlays rose 14 percent. Hospital construction rose more than
50 percent, and there were substantial increases in the construction of religious, social, and recreational buildings.
Again, the rising trend of dollar outlays can be misleading. Actually,
construction costs rose during the year somewhat more than expenditures,
so that the physical volume of construction was a little less than in 1956.
Prices of building materials were virtually unchanged, on the average,
as reductions in prices of materials used principally in home building
were roughly offset by increases in prices of other materials. For the industry
as a whole, higher wage rates accounted for most of the rise in construction
costs.
Inventories
In contrast to 1956, when business inventories were increased by $4.6
billion, no further accumulation took place in 1957 (Table 2), and inventory
holdings were sharply reduced in the final quarter of the year.
Retailers and wholesalers—with the exception of automobile dealers
and wholesalers of certain durable goods—lowered their inventories in
1957. Reductions were particularly large in the first few months of
the year, and for a while caused sharply decreased rates of production
in a number of consumer goods industries. By the year end, stocks in many
lines were still low relative to current retail sales.
Manufacturers' inventories, large parts of which are closely related
to current and prospective levels of output, continued to rise in the
first nine months of 1957, though at a much slower rate. Changes
were particularly large in the machinery-producing and defense
industries, where inventories had expanded in response to rising levels
of production and, to some extent, in anticipation of further advances.
The rate of accumulation in the machinery-producing industries, however, was reduced in late 1956, and especially in early 1957, as production
declined. After the middle of the year, decreases in defense orders produced
even larger adjustments in the holdings of the aircraft industry. Declining
new orders and falling backlogs of unfilled orders caused, first, a further
decline in the rate of accumulation, and later, in the final months of the year,
an actual decrease in the inventory holdings of these industries. Many producers of consumer goods also reduced their inventory investment in the
early part of 1957 and, after some increase in the summer, again in the late
months of the year.




TABLE 2.—Changes in gross national product and its major components,

1955—57

[Billions of dollars]

Change
1957 i

Item

1955 to 1956

Current
prices
Gross national product or expenditure
Change in business inventories
Final purchases

1956 to 1957 i

1957
prices

Current
prices

1957
prices

433.9

23.0

12.9

19.2

3.6

.0
433.9

.4

.4
12.5

-4.6
23.8

280.4

Durable goods
Nondurable goods
Services

12.8

9.1

13.2

35.1
140.0
105.4

Personal consumption expenditures

-4.9
8.5
4.8

-1.7
7.3
7.1

-1.9
5.9
5.0

1.2
6.7
5.5

.0
2.5
2.4

22.6

63.6

Gross private fixed investment
Residential construction (nonfarm)
Other construction
Producers' durable equipment

5.0

2.3

2.2

-.5

14.2
19.0
30.4

-1.3
1.9
4.4

-1.8
1.1
3.0

-1.1
1.0
2.3

-1.4
.2
.7

3.3

Government purchases of goods and services.

1.9

1.4

2.4

Exports of goods and services.
Less: Imports of goods and services
Unilateral transfers

1.9

3.5
1.9
-.2

2.9
1.5
-.5

2.8
.8
.1

2.0
.6
.0

86.6

Net foreign investment

1.8

26.3
20.6

3.1

6.4

2.7

50.5
45.7
36.0

.4
1.1
2.7

3.3
3.3
3.0

1.3
1.5
1.2

-2.1
-1.0
1.5

1

Federal (excluding Government sales)..
Preliminary estimates by Council of Economic Advisers.
National necessarily add to totals because of rounding.
NOTE.—Detail will not security
State and of Commerce (except as noted).
Source: Departmentlocal

As manufacturers of finished goods lowered their output and adjusted
their stocks of purchased materials, sales and new orders of the primary
metals industries fell. Production of these metals declined; producers'
inventories nevertheless rose sharply during most of 1957. In the final
months of the year, however, further decreases in output halted this accumulation. Rising inventories in a number of other industries also led to
cutbacks in production during the final quarter of the year, notably among
producers of petroleum products, chemicals, and apparel. Output in
manufacturing industries as a whole declined sufficiently below the level of
shipments to result in an over-all reduction of inventories. Total inventory
investment, which had absorbed $4.6 billion of output in 1956, dropped to
an annual rate of $1 billion in the first three quarters of 1957; and in the
final quarter of the year inventories were being reduced at an annual rate of
$3 billion or possibly more.
Consumer Expenditures
Increased incomes from production, augmented by substantial increases
in pension, social security, and similar payments, provided a basis for higher
levels of consumer expenditures during most of 1957. Consumer demand
was supported also by a further moderate increase in consumer credit,




16

though there was no significant increase in spending on durable goods. Increases in spending were confined mainly to nondurable goods and services.
By the end of the summer, the expansion of consumer demand ceased.
Personal income began to decline in September, and retail sales receded
from the high levels of the summer. Purchases of services continued to rise,
but total consumer spending declined one-half of 1 percent from the third to
the final quarter of the year. For the year as a whole, consumer expenditures
increased 5 percent, about the same as in 1956. However, the higher expenditures in 1957 reflected in large part increases in prices, and only a small increase in the volume of goods and services acquired (Chart 3).
CHART 3

Personal Income and Consumption
Disposable personal income rose during most of 1957, but its
buying power increased little because of price advances.
BILLIONS OF DOLLARS
SEASONALLY ADJUSTED ANNUAL RATES

325
DISPOSABLE PERSONAL INCOME J
300

275

250

225

I
1954

1955

I

I

1

1956

I

I
1957

I

T

PERSONAL INCOME LESS TAXES.
SOURCES: DEPARTMENT OF COMMERCE, DEPARTMENT OF LABOR, AND
COUNCIL OF ECONOMIC ADVISERS.

EMPLOYMENT AND INCOMES

Employment and Earnings
After nearly three years of sizable gains, nonagricultural employment
reached a peak in the summer of 1957 (Chart 4). A slowing down in the
rate of growth had become apparent after mid-1956, and hours of work in
manufacturing had turned downward somewhat earlier. In 1957, declines
began to appear in employment in manufacturing industries, the most
pronounced decreases occurring in durable goods, especially machinery,
primary metals, and transportation equipment. The declines continued




CHART 4

Employment and Income
Total nonagricultural employment, after rising until September 1957,
declined in the closing months of the year.
MILLIONS OF PERSONS
54
52

SEASONALLY ADJUSTED DATA

NONAGRICULTURAL
EMPLOYMENT
(BLS)

50

16

MANUFACTURING
PRODUCTION
WORKERS

' . ..f— '

V

12
I I I I I 11I I I I 1I I I I I 1 I I I I I 1I I I I I 1I I I I

I i i i i i I i i I I Ii

Basic wage rates rose moderately throughout the year
DOLLARS
FOR MANUFACTURING
PRODUCTION WORKERS
2.20
AVERAGE HOURLY EARNINGS
GROSS «

2.00

•

\
EXCLUDING
OVERTIME

1.80

1.60

I I i i i i I i i i i i I i i i i i 1 i i i i i I i i i i i 1 i i i i

1954

1955

1956

SOURCE: DEPARTMENT OF LABOR.




18

1957

CHART 4—Continued

Employment and Income
. . . but hours of work were reduced and weekly earnings remained
roughly constant.
DOLLARS

HOURS

100

FOR MANUFACTURING
PRODUCTION WORKERS
90

80
AVERAGE WEEKLY EARNINGS
(LEFT SCALE)

70

AVERAGE WEEKLY HOURS-!/
(RIGHT SCALE)

Personal income reached a new high in the summer, and then
declined slightly, reflecting changes in labor income.
BILLIONS OF DOLLARS
400
SEASONALLY ADJUSTED ANNUAL RATES

350
PERSONAL INCOME

300

250
WAGE AND SALARY
DISBURSEMENTS *

200

150

-

1954
7

1955

1956

SEASONALLY ADJUSTED

SOURCES: DEPARTMENT OF LABOR, DEPARTMENT OF COMMERCE, AND
NATIONAL BUREAU OF ECONOMIC RESEARCH.




1957

throughout the year, accelerating in the autumn. Until September, gains in
nonmanufacturing employment, especially in trade and services, more than
offset the reductions in manufacturing (Table 3). But after the summer
peak, lowered employment in construction, trade, and transportation, combined with sharper declines in manufacturing, reduced nonfarm employment
by December to a level below that of December 1956.
TABLE 3.—Changes in nonagricultural employment since December 1956
[Thousands of persons, seasonally adjusted data]
Change
December
1957

Industry

Employees in nonagricultural establishments.

December
1956 to
August
1957

August
1957 to
December
1957 1

December
1956 to
December
1957 1

51,895

-646

-555

-825

-191
-79

-454
-101

-645
-180

35,614

573

-394

179

816
2,906
2,665
1,411
11, 471
2,365
6,545
7,435

20
-42
-7
22
261
34
118
167

-37
-126
-97
-11
-198
11
68
-4

-17
-168
-104
11
63
45
186
163

2,174
5,261

Federal
State and local-

-949

-270

9,390
6.891

Durable goods industries
Nondurable goods industries.
Nonmanufacturing.
Mining
Contract construction
Transportation
Public utilities
Wholesale and retail trade
Finance, insurance, and real estateService and miscellaneous
Government

303

16, 281

Manufacturing

17
150

-60
56

-43
206

1

Based on preliminary figures for December.
Source: Department of Labor.

The decline in employment during 1957 was accompanied by a slower
growth of the civilian labor force. From 1954 to 1956, as job opportunities
had increased rapidly, large numbers of people had entered the labor market
and the civilian labor force had expanded by 3 million. The growth was
due mainly to substantial increases in the number of teen-age persons and
women over 35 desiring employment. By late 1956, however, and throughout 1957, the labor force was increasing more slowly; between the final
quarters of 1956 and 1957, the increase amounted to about half a million.
Because the slower growth of employment was generally accompanied
by smaller additions to the labor force, rates of unemployment remained
roughly unchanged until October, at the low level prevailing since 1955. By
December, however, the unemployment rate had risen, on a seasonally
adjusted basis, to 5.2 percent, from 4.3 percent in September. For 1957 as
a whole, unemployment averaged 4.3 percent of the labor force, about the
same as in 1956.
Lower employment in manufacturing in 1957 was accompanied by reductions in hours of work, less overtime, and a distinct slowing down in gains
in average hourly and weekly earnings. In December, the average work-




20

week was 39.3 hours and average overtime was 2.0 hours, compared with
41.0 hours and 3.1 hours, respectively, in December 1956. For 1957 as a
whole, average hourly earnings rose 5 percent, and weekly earnings only 3
percent, above 1956. The rise above 1956 in weekly earnings was about
equal to the rise in consumer prices. The same general experience with
respect to hours of work and earnings was characteristic of industries other
than manufacturing.
Collective Bargaining
Wage contract negotiations were relatively few in 1957, because of the
large number of long-term contracts in existence that had been negotiated
in earlier years. Labor disputes were infrequent, and idleness resulting
from work stoppages was less than in any year since World War IT. Wage
increases were provided for in almost all the major contracts open for negotiation, except those in the men's apparel and northern textile industries.
The number of workers who received wage rate increases under major
collective bargaining contracts in 1957 was about the same as in the previous year, but the increases tended to be somewhat larger than in 1956.
Of the approximately 7.5 million workers who received increases under
such major agreements, about 5 million obtained the adjustments as a
result of settlements concluded prior to 1957 which specified "deferred"
wage adjustments to go into effect in 1957 and, typically, also provided for
cost-of-living escalator adjustments. About 2.5 million workers obtained
wage increases under major contracts negotiated during the year.
TABLE 4.—Distribution of employees receiving wage increases under major labor
agreements, 1956-57
Percent of total workers
receiving wage
increases

Wage increase (cents per hour)

1956
All wage increases

2

Under 5 cents
_ _ _ _ _
5-8.9 cents
9-12.9 cents
_.
...
13-16.9 cents.
17 cents and over
Not specified.
_ - - _ _ _

1957

100
_
_.___..__

.__

100

1
19
62
8
7
3

?
20
36
34
6
3

1
2

Preliminary.
Includes cost-of-living, deferred, and newly negotiated wage increases received under collective bargaining situations affecting 1,000 or more employees and coming to the attention of the Department of Labor.
Excludes construction, services, finance, and government.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Labor.

In contrast to about 15 percent in 1956, about 40 percent of the employees
whose rates of pay were raised under the terms of major labor agreements
received increases averaging 13 cents or more per hour (Table 4). Three
of every four agreements negotiated in 1957 specified improvements in the
nonwage benefits of employees, notably in health and welfare plans,
improved vacation and holiday schedules, and more liberal pensions. Cost-




21

of-living escalator clauses were more widely adopted. By the end of the year,
about 4 million workers were covered by such clauses, compared with 3.5
million in late 1956.
Personal Income
For the year as a whole, total personal income reached $343 billion, a new
high level. But the change in production and employment during the year
was evident in the flow of income payments. Personal income payments
were at their highest rate in August; by the end of the year, they were
1 percent below this level. Continued increases in employment of nonproduction workers in manufacturing and gains elsewhere in the economy,
combined with rising average hourly earnings, kept total wage and salary
payments advancing through the first eight months of the year. As reductions in employment and in hours of work became more pronounced
in manufacturing, and began to occur also in nonmanufacturing industries,
total wage and salary payments declined from an annual rate of $242 billion
in August to $239 billion in December.
The decline in total personal income after August was moderated by an
increase in transfer payments, about half in unemployment insurance benefits. The extent of this stabilizing influence may be seen in the fact that
between September and December, when wage and salary disbursements
and other labor income declined by $2.9 billion, on an annual rate basis,
transfer payments rose by $1.5 billion, also on an annual rate basis. The
effect was to offset more than half of the impact on total personal income of
lower wage and salary payments.
PRICES, COSTS, PROFITS, AND PRODUCTIVITY

The upward movement of consumer prices continued in 1957, though
the circumstances which produced the increases were in many cases not
closely related to current demand. The record was different in other
areas of the economy, where prices are more responsive to changes in
market conditions. The rapid advance of industrial prices at wholesale
was halted, and prices of crude materials, which are especially sensitive,
declined.
Wholesale Prices
Wholesale prices, particularly the prices of industrial commodities,
advanced much less in 1957 than in 1956 (Chart 5). From December
1956 to December 1957, prices of crude industrial materials, which
previously had risen sharply, fell 10 percent. The prices of almost all
major crude materials declined; certain nonferrous metals—copper, lead,
and zinc—were especially affected, as mounting stocks forced a series of
price reductions. On the average, prices of construction materials
changed little over the year, and prices of semifabricated materials and
components for manufacturing rose only slightly, despite advances in




22

CHART 5

Price Changes
Wholesale prices rose much less during 1957 than in 1956.
PERCENTAGE CHANGE
0

-10

-20

tlO

+ 20

ALL COMMODITIES

FARM PRODUCTS

PROCESSED FOOD

INDUSTRIAL PRODUCTS
(OTHER THAN FARM AND FOODS)

Among industrial products, prices of finished and intermediate

goods increased

more slowly, and

those of

crude materials declined.
1

' INDUSTRIAL PRODUCTS- special groups

'

I

1

1

in

PRODUCER FINISHED GOODS

[v-vv

CONSUMER FINISHED GOODS

[ffffj

INTERMEDIATE MATERIALS,
SUPPLIES, AND COMPONENTS

F ^
fcy.y

CRUDE
MATERIALS

1

WT
^^^^^^fr^J

1

1

-^ CHANGES AT ANNUAL RATES.
SOURCE: DEPARTMENT OF LABOR.




1

1

1

1

1

steel prices. Prices of producer finished goods continued to rise, but much
less rapidly than during the previous 18 months. Prices of consumer finished
goods also increased very gradually, except those for new automobiles, on
which the increases were significant though smaller than in 1956. Reflecting
changes in these various categories, the average of all industrial prices rose
only 1 percent during the year, and the increase after February was negligible. Wholesale prices of farm products and of foods also advanced, but,
like prices of industrial goods, by a smaller amount than during 1956.
The small advance in industrial prices reflected the slower rise in demand,
growing industrial capacity, and a somewhat smaller increase than in 1956
in manufacturing labor costs per unit of output. Production-worker manhours of employment in manufacturing declined relative to output during
most of 1957, and the rate of rise in average hourly earnings slowed considerably; as a result, production-worker wage costs per unit of output
advanced only slightly, and significantly less than in 1956. On the other
hand, the employment of nonproduction workers, and salary payments to
them, rose rapidly throughout the first eight months of 1957. The result
was that total labor costs per unit, including both production and nonproduction workers, continued to advance in 1957, although the rise was
less than in the preceding year.
Consumer Prices
The increase in the consumer price index, which had started in April
1956, about ten months after the first sharp rise in wholesale industrial
prices, continued with virtually no interruption through 1957. By November, the index was 6 percent above the level of early 1956. About 70 percent
of the rise was due to food and service prices, about 13 percent to durable
goods, and 17 percent to nondurable commodities (Chart 6).
Among foods, the increases in prices of meat were the most important.
As supplies of meat products fell below the large amounts available earlier,
meat prices began to recover, and by the end of 1957 they were 12 percent
above the low point of two years earlier. Other food prices rose mainly
because of higher costs of processing and distribution, and because the
products were in some cases more highly processed or of a better quality.
Prices of consumer durable goods l^ave risen about 6 percent since March
1956, but on the average they are still below 1952 prices. Increases in
prices of automobiles are mainly responsible for the recent changes. Prices
of furniture and many other consumer durable goods rose moderately over
the past 18 months, reflecting increased manufacturers' prices. Prices of
appliances, on the other hand, fell slightly. Among nondurable goods other
than food, the major contributors to the over-all price advance were gasoline, fuel, and drugs; prices of apparel rose only moderately.
Prices of services are subject to a wide variety of influences. Some
services—such as those of the light, power, and communications industriesare produced on a highly industrialized basis; others are largely personal.
Prices of most services in the first group have increased only moderately




24

CHART 6

Consumer Prices
After declining for several years, prices of commodities began
to

rise in 1956.

Prices of services continued

their postwar

uptrend.
INDEX, 1947-49 = 100

140

130

120

110
NONDURABLE COMMODITIES
EXCLUDING FOOD
COMMODITIES

100

,1
1952

1953

1954

1955

1956

,
1957

SOURCE: DEPARTMENT OF LABOR.

over the past few years. On the other hand, the cost of personal services,
in many of which the possibilities of gains in productivity are small, have
increased by almost the full amount of the rise in earnings of service workers
and self-employed professional people. Increases in the prices of these services in the past two years have been generally larger than in the preceding
two years, when consumer prices were broadly stable. Rents have continued
to rise of late, at a slightly faster rate than in 1954 and 1955.
The advance in consumer prices during 1957 was only in part an indication of current inflationary demand in retail markets. Adjustments of
prices to cost increases that had occurred earlier, and special conditions affecting particular commodities and services, also played important
roles. The decline in meat supplies is an example of such changes. Increases in prices of petroleum products reflected, at least in part, the diversion of oil supplies to Europe during the interruption of shipments via
the Suez Canal. Service prices that are subject to the approval of public
commissions normally adjust only slowly to changes in cost and market
conditions. Rent increases, particularly those following the release of con-




trols, often reflect cost and demand conditions originating in earlier periods.
And month-to-month changes in the consumer price index, especially as
affected by changes in the prices of food, apparel, and automobiles, may
reflect essentially seasonal variations. This factor was important in a
number of month-to-month changes in the index during 1957. In view
of the widespread interest in the movement of consumer prices, the nature
and construction of the consumer price index are described in Appendix D
of this Report.
Corporate Profits
Changes in industrial prices, costs, and production are the major factors
determining the movement of corporate profits and their share in total
income. During the expansion of activity that began in 1954, profits
followed a course different from that of other forms of income. With both
sales and margins increasing, profits rose rapidly throughout 1955. However, the increase was not extended into 1956; on the contrary, during
that year and in the first half of 1957, corporate profits fluctuated around
a level somewhat below that reached in the second half of 1955. This failure
of profits to advance during 1956 and early 1957, while other incomes were
rising, reflected a number of factors, including the incurrence of additional
costs of many kinds and an increased allocation of gross earnings to depreciation accounts. The number of employees was rising, wage rates were
increasing, and overhead expenditures were higher, in part as a result of
the rapid increase in investment outlays. Although increases in prices covered most of the increases in unit costs of production, profit margins were
slightly reduced. Output increased only moderately, and total profits failed
to rise.
Profits of manufacturing corporations fell early in 1957, reflecting declines in production and sales in a number of important industries and a
tendency for industrial prices to level off while some elements of cost continued to rise. The decline in profits was accelerated later in the year, as
production and sales fell further. In most nonmanufacturing sectors of the
economy, where activity continued to rise, profits in general were well
maintained during the first part of 1957. Present indications are that the
profits of these sectors also declined in the latter part of the year. The
aggregate volume of corporate profits, in which the profits of manufacturing
corporations are more important than all other types combined, fell slightly
in the first half of 1957; and by the end of the year, they had declined
significantly below the levels around which they had been moving earlier.
Productivity
Private nonagricultural output rose only slightly from 1956 to 1957,
and man-hours of employment were virtually unchanged. The indicated
gain in productivity accordingly was still small, though much larger than the
gain from 1955 to 1956. In both instances, the increase was smaller than the
long-term average annual increase of about 2 percent recorded for the past




26

few decades and the still higher average increase recorded for the whole
period following World War II. The small extent of these gains, in comparison with increases in wage rates, maintained the upward pressure on unit
costs and, therefore, on prices.
The small improvement in productivity indicated for 1956 and 1957
provides no basis for expecting the future long-term rate to fall below the
average annual gain realized in recent decades. For one thing, productivity statistics generally show irregular year-to-year changes. Moreover,
uncertainties about the concept, difficulties of measurement, and shortcomings of available information require a cautious interpretation of the
yearly changes shown by available data (see Appendix E ) .
But more positive reasons may be cited for confidence that the long-term
rate of gain in productivity will be higher than the rates for 1956 and 1957. A
major reason for confidence is the huge investment made during recent years
in new plant and equipment. Circumstances favorable to the full realization
of the productivity potential of these facilities, namely, large gains in output
in the industries concerned, have not yet been experienced. And large
increases in certain types of expenditures also raise the productivity potential, even though they may depress the current level of productivity. Although the starting-up of new productive facilities, the expansion of research
and development projects, and the training of personnel in new techniques
tend to raise employment immediately, their beneficial effect on the output
of goods and services is deferred.
FINANCIAL DEVELOPMENTS

The major demands for credit in 1957 were reflected in the long-term
capital markets. State and local governments drew on these markets for
$6.9 billion of funds, $ 1.4 billion more than in 1956 (Table 5). School construction expenditures accounted for more than 35 percent of the funds
borrowed. Added to these demands of State and local governments were
TABLE 5.—Security offerings, 1954-57
[Millions of dollars]
Security

1954

1955

1956

1957J

State and municipal securities (principal amounts).

6,969

5,977

5,446

6,879

Corporate securities (gross proceeds)
Manufacturing
Mining
.
Electric, gas, and water
Railroad
Other transportation
Communication
Financial and real estate (excluding investment companies).
Commercial and other

9,516

10,240

10,939

12,997

2,268
539
3,713
479
299
720
1,076
422

2,994
415
2,464
548
345
1,132
1,899
443

3,647
456
2,529
382
342
1,419
1,856
307

4,275
329
3,942
344
416
1,472
1,843
377

1

Preliminary.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Securities and Exchange Commission.




very heavy security flotations by corporations, amounting to $13.0 billion,
$2.1 billion more than in 1956 (Chart 7). The issues of utility companies
were especially important, reflecting the continued large programs of expansion and improvement in this industry. But manufacturing concerns were
also heavy borrowers, despite the slowing down in their expansion programs
after the strong upsurge of the past several years.
This heavy reliance of corporations on the securities markets reflected in
part the culmination of a reduction in liquid assets which had been in progress since the end of 1955 and which had brought corporate liquidity to a
new low for the postwar period (Chart 8). It also reflected a decline in the
volume of additional funds available to business concerns from the commercial banking system. Bank loans to businesses increased only $1.6 billion in
1957, compared with an increase of $5.5 billion in 1956 (Table 6), though
this difference doubtless reflected in part a decline in the demand for shortterm credit arising from a substantially slower rate of accumulation of
business inventories.
TABLE 6.—Changes in commercial bank holdings of loans and investments, 1954—57
[Billions of dollars]
Net change during—

Loans or investment
1954

Loans (excluding interbank) and investments.

1955

1956

1957 1

10.2

4.2

4.3

11.6

7.6

3.6

-.3
1.7
(2)
.9
.2
.6

6.4
2.4
2.3

5.5
1.7
1.3
-.8
-.3
.5

1.6
.7
1.3

7.2

-7.0

-3.5

.8

5.6
1.6

Investments.
U. S. Government securities.
Other securities

4.6

2.9

Loans (excluding interbank)
Business
Real estate...
Consumer....
Security
Agricultural.
Allother

-7.4
.4

-3.0
-.4

-.6
1.3

-.5
.3

1

Preliminary estimates by Council of Economic Advisers.
Less than 50 million dollars.
NOTE.—See Table F-41 for data including interbank loans.
Detail will not necessarily add to totals because of rounding.
Source: Board of Governors of the Federal Reserve System (except as noted).

2

At the same time, credit demands from other sectors of the economy
were somewhat more moderate than in earlier years. Total mortgage
debt rose by only $11 billion in 1957, compared with $15 billion in 1956
and $16 billion in 1955. This slower rate of growth was due in part to
the fact that funds for investment in federally insured and guaranteed
home mortgages were less readily available, since interest rates on these
mortgages were less attractive to lenders than the yields available on
other types of investments. The total amount of consumer credit out-




28

CHART 7

The Pattern of Credit Expansion
State and local governments marketed a near-record volume of
securities in 1957, and corporate issues were at a new high . . .
BILLIONS OF DOLLARS

0

5

10

15

20

1955
1956
1957

CORPORATE SECURITY
ISSUES: NEW MONEY-2/

. . . but growth in other forms of credit was greatly reduced.
BILLIONS OF DOLLARS

0

+5

+ 10

1955

+15

+20

INCREASE IN
MORTGAGE DEBT3/
( I - to 4-Family Homes)

1956
1957

INCREASE IN
CONSUMER CREDIT-^/

1955
1956

INCREASE IN BUSINESS LOANS
BY COMMERCIAL BANKS-2/

1957




I
y PRINCIPAL AMOUNTS.
1/ NET PROCEEDS.
3/CHANGES IN AMOUNTS OUTSTANDING.
SOURCES: THE BOND BUYER. SECURITIES AND EXCHANGE COMMISSION, BOARD OF
GOVERNORS OF THE FEDERAL RESERVE SYSTEM, AND COUNCIL OF ECONOMIC ADVISERS.

standing increased by only $2.7 billion in 1957, compared with $3.4 billion in 1956 and $6.4 billion in 1955. The amount of instalment credit
extended was actually above that in 1956; but since repayments were high,
the increase in total instalment credit outstanding was held down.
Significant changes also took place in the supply of funds during 1957.
First, in most of the year the capacity of the commercial banking
system to expand its loans and investments was more limited than in
1956. The volume of member bank reserves was held roughly unchanged by the monetary authorities, and the already sharp reductions
in bank holdings of United States Government securities limited any
further shifts out of these securities in order to expand loans (Chart 9 ) .
Commercial banks sold $600 million of Government securities in 1957,
compared with $3 billion in 1956 and $7.4 billion in 1955.
With the level of bank reserves unchanged, and a sharp increase in time
deposits, there was no expansion in the money supply during 1957. Indeed,
demand deposits and currency actually declined by $1.5 billion, whereas the
volume of money expenditures increased. The decline in the cash liquidity
of businesses and individuals which is represented by this changed relation
CHART 8

Liquidity of Commercial Banks and Nonfinancial
Corporations
Bank liquidity continued low in 1957.
concerns was further reduced.

The liquidity of business

PERCENT
60

ENO OF QUARTER

55
COMMERCIAL BANKS-!/

50
45

NONFINANCIAL
CORPORATIONS-?/

**•••

,•••'

40

0

I

I

1955

1

I

I

1956

I

I

I

I

i

1957

U RATIO OF HOLDINGS OF U.S.GOVERNMENT SECURITIES (BOOK VALUE) TO DEMAND DEPOSITS.
U RATIO OF CASH ASSETS AND HOLDINGS OF U.S. GOVERNMENT SECURITIES (PAR VALUE)
TO CURRENT LIABILITIES.
SOURCES: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, SECURITIES AND
EXCHANGE COMMISSION, AND COUNCIL OF ECONOMIC ADVISERS.




CHART 9

Member Bank Reserves
Member

bank

BILLIONS OF DOLLARS

reserves changed little in 1957.
1

28

U.S. GOVERNMENT SECURITIES HELD
BY FEDERAL RESERVE BANKS

22

MEMBER BANK RESERVES
20

18

:

i

Free

reserves

i

were

negative

i
for

most

of

i
the

year

f
but

the

deficiency was reduced in the closing months.
BILLIONS OF DOLLARS 1 (Enlarged scale)
1.5

MEMBER BANKS
^
BORROWINGS FROM
%
•. / ^ FEDER,
• S
.
FEDERAL RESERVE BANKS

1.0

.5

FREE RESERVES
(EXCESS RESERVES
LESS BORROWINGS)
-.5

~I.O

I i i i i i I i i i i 11 i i i i i 1 i i i i i l i i i i i 1 i i i i i I i i i i i 1 i i i i i I i i i i i 1 i i i i
1953
+

1954

1955

1956

AVERAGES OF DAILY FIGURES.

* CHANGE IN RESERVE REQUIREMENTS.
SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.




31

1957

between money supply and expenditures was one of the most significant
financial developments of the year.
Second, there was a decline in the amount of new funds available
from insurance companies, savings and loan associations, and mutual
savings banks, resulting from the lower liquidity of these institutions and
the smaller flow of new savings through them. Their purchases of State
and local securities and corporate issues were somewhat greater than in 1956,
but this was made possible only by a large reduction in their purchases of
mortgages.
Third, despite a slightly smaller volume of total personal saving, direct
purchases by individuals of corporate, State and local, and other marketable securities were almost $3 billion larger in 1957 than in 1956. This
was due partly to the attractiveness of yields on these securities for individuals. An important source of funds for these greatly enlarged purchases, though not a net addition to new savings, was a reduction of almost
$2 billion in individuals' holdings of United States Savings Bonds, primarily
by investors sensitive to the higher yields generally available in the market.
Fourth, the Federal budget during the calendar year 1957 contributed
less than during 1956 to making additional funds available to the securities
markets through financial institutions and individuals. In 1956, a reduction of $6.4 billion in the publicly held United States debt was an important
factor in the ability of financial institutions and individuals to add to their
loan and security portfolios. They did so by reducing their holdings of United
States Government securities. In 1957, only $2.9 billion of the publicly held
debt was retired; thus the ability of this group of investors—especially
financial institutions—to provide funds by further reducing their holdings
of Government securities was decreased.
Reflecting the more limited supply of new funds relative to the demands
for them in 1957,, interest rates rose during much of the year (Chart 10).
The rise was especially rapid in June and August, when money market
pressures became unusually heavy. In August, the rate on Treasury bills
was close to 3J/2 percent, major banks raised their prime rate from 4 percent
to 4^4 percent, and the Federal Reserve Banks raised the discount rate from
3 percent to 3*/2 percent.
After the Federal Reserve Banks announced lower discount rates in
November, interest rates and bond yields declined significantly, in many
cases one-half of 1 percent or more. This reflected a reduction in demand for
loans that had already been apparent and some easing of pressure on bank
reserves. By the end of the year, credit in both the long-term and shortterm sectors of the markets had eased appreciably, though the impact on
certain sectors of the market, notably the mortgage market, was slow
in developing.
The rise in stock prices to July brought the average yield on common stocks
to 4 percent, about the same as the yields then available on high-grade bonds.




CHART 10

Interest Rates and Bond Yields
Short-term interest rates rose through most of 1957 but declined
after mid-November.
PERCENT PER ANNUM

INTEREST RATES

SHORT-TERM BUSINESS
LOANS BY BANKS .

* FEDERAL RESERVE BANK
DISCOUNT RATE
TREASURY BILLS
(NEW ISSUES)

0

M

I 1 I I 1 I I I I I 1 I 1 I I I I I I I I I I I I I 1 I I I I I I I

Long-term rates rose sharply in the spring and summer and declined
at the year end.
PERCENT PER ANNUM
6
BOND YIELDS

CORPORATE Aaa

U.S. GOVERNMENT
(10 YEARS AND OVER) 1

1

0

HIGH-GRADE MUNICIPAL

I I I I I i I I I I I I I i I I i I I I I i i I I I I I I I I i I I II

1955

1956

1957

SOURCES: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, MOODY'S INVESTORS
SERVICE, TREASURY DEPARTMENT, AND STANDARD a POOR'S CORPORATION.




33

With the large decline in stock prices after July, yields on common* stocks were
above 4 / 2 percent at the close of the year, considerably above the much lower
yields then available on high-grade bonds.
AGRICULTURE

There have been a number of favorable developments in agriculture in
the past two years, though net income from farming has not changed significantly (Chart 11). Despite an over-all decline in crop prices, the livestock market strengthened sufficiently to raise average prices received by
farmers. Heavy export shipments have made a considerable reduction in
surplus stocks. A long drought in the Southwest has ended. Land values
and the equities of farm proprietors have climbed to new record levels.
Realized gross farm income increased both in 1956 and in 1957, but rising
production expenses offset most of the gains. Conditions in the rest of the
economy have provided generally favorable opportunities for off-farm
earnings, and per capita income of the farm population from all sources has
been increasing. The revolution in farm technology is a continuing source
of agricultural strength, though it complicates current problems of agricultural adjustment and public policy.
Livestock Sector
Prices of farm products, as well as cash receipts from farm marketings,
have benefited from recent livestock developments. A peak in the hog cycle,
coinciding with heavy supplies of fed steers, had seriously depressed livestock markets late in 1955. With high slaughter rates continuing into the
early months of 1956, and with forced marketing of cattle from drought
areas that fall, both production and per capita consumption of red meat
reached record levels. During 1956, however, the number of cattle on
farms decreased for the first time since 1948, and a 2 percent decline in the
1957 calf crop further suggests that cattle numbers have entered a downward cyclical phase. Pig crops in the spring and fall of 1956 and in the
spring of 1957 were reduced below the levels of the preceding year, though
by successively narrower margins. Prices of meat animals were consequently about one-third higher by late 1957 than they had been two years
earlier. Since prices of milk and dairy products were firm, cash receipts
from marketings of livestock and livestock products were about 6 percent
higher in 1957 than in 1956.
Exports and Stocks
The value of agricultural exports in fiscal 1957 reached $4.7 billion,
an increase of 17 percent over the previous record attained in 1952; and the
volume of exports exceeded by 30 percent the record reached in 1919.
Shipments financed through special Government programs (Chart 12) —
mainly sales for foreign currencies under Public Law 480, barter transactions,
and outright commodity donations—comprised fully 40 percent of the total.
Of the remainder, a substantial portion moved under export subsidies in




34

CHART 11

Indicators of Agricultural Conditions
Net

farm income has reflected

little of

the

improvement

in gross

farm income since 1955.
BILLIONS OF DOLLARS
40

REALIZED GROSS
FARM INCOME-*/

30

.TOTAL NET FARM INCOME y

.7^
REALIZEO NET
FARM INCOME-!/

10

NET INCOME FROM
NONFARM SOURCES-b/

Farm product prices and the parity index increased in 1957.
INDEX, 1910-14 = 100
300

7

275

PRICES PAID, INTERESTi
TAXES, AND WAGE RATES
(PARITY INDEX)

250

PRICES RECEIVED
(ALL FARM PRODUCTS)

225

The value of proprietors' equities is higher than ever.
BILLIONS OF DOLLARS
160

140
FARM

100

PROPRIETORS'EQUITIES
(JANUARY I )

0
1950

51

52

54

53

55

& INCOME OF FARM OPERATORS, INCLUDING GOVERNMENT PAYMENTS.
2j INCOME OF ALL FARM PEOPLE.
SOURCE: DEPARTMENT OF AGRICULTURE.




35

56

57

CHART

12

Federal Agricultural Programs
CCC price-support investment has been reduced by enlarged commodity disposals, particularly under special export programs.
BILLIONS OF DOLLARS
FISCAL YEARS

8

-

CCC PRICE-SUPPORT
INVESTMENT-1'

6 -

TOTAL EXPORTS FOR
FOREIGN CURRENCIES

Net budget expenditures for agricultural programs remain high,
and heavy losses are being realized on commodity operations.
BILLIONS OF DOLLARS

NET BUDGET
EXPENDITURES^

4

^

\

REALIZED COST OF
STABILIZATION PROGRAMS

2

M

y/*

-

DIRECT GOVERNMENT
^
PAYMENTS!/

..*
»••*

X
1

0

1953

1954

1955

1

1956

1/ LOANS AND INVENTORIES, JUNE 3 0 .
2/EXPENDITURES FOR AGRICULTURE AND AGRICULTURAL RESOURCES.
& PAYMENTS TO FARM OPERATORS AND LANDLORDS, CALENDAR YEARS
SOURCES: DEPARTMENT OF AGRICULTURE AND BUREAU OF THE BUDGET.




1957

various forms. On dollar sales of wheat, the subsidy element averaged
about 80 cents per bushel. Under the export program for raw cotton, initiated early in 1956 and continued in the current season, sales have been at
competitive world prices, some 20 percent below the domestic price. Commodities valued in excess of $600 million (CCG cost) were released to barter
contractors during the fiscal year 1957, but activity declined sharply after
new regulations were issued in May to help prevent displacement of normal
dollar sales. Since August 1957, exports have been running below the
very high monthly levels of the preceding year.
Under present circumstances, variations in the rate of export shipments
exert their major influence on the level of commodity stocks, not on current
crop prices or farm income. Carry-overs of cotton, wheat, and rice were
reduced, and investment by the Commodity Credit Corporation (CCC) in
price-support loans and inventories on November 30, 1957 was $1.0 billion
lower than a year earlier. However, a substantial rise in stocks of feed
grains continues, and the grain surplus is world-wide. Despite a record
volume of international trade in wheat during 1956-57, stocks of major
coarse and bread grains in the four principal exporting countries as of July 1
reached a new high in 1957 for the fifth consecutive year. Tobacco stocks
also increased in 1956-57, in part because newer high-yielding varieties
found poor favor in domestic and export markets alike. All stocks of CCCowned wool have now been sold.
Crop Production and Prices
Crop adjustments in 1957 were expected to reinforce the favorable export
experience and further reduce burdensome surpluses. Over 25 million acres
were placed in the Soil Bank; acreage allotments were at the minimum
levels permitted by law; and total harvested acreage of wheat, cotton,
and corn was about 25 percent lower than four years earlier. Soil-Bank
withdrawals contributed to significant reductions in the output of wheat,
cotton, rice, and tobacco. Excessive rainfall at harvest time adversely affected the quality of several crops and reduced cotton production sharply
below early-season estimates. The all-crop production index nevertheless
equaled the record-matching 106 (1947-49=100) of 1956, as drought was
broken on the Great Plains, more acreage was diverted to soybeans and
minor feed grains, and the upward trend in yields per acre continued. Total
feed-grain output set a new record.
Farm prices have reflected these developments. Since September 1957,
the index of crop prices has been lower than on corresponding dates in
1956. Because of improved prices for livestock and livestock products, however, the general index of prices received by farmers in 1957 averaged some
3 percent higher than in the two preceding years. Record supplies of feed
concentrates and cheap feed relative to livestock prices are now encouraging
expansion of hog production and heavy feeding of beef cattle.




37

Financial Position of Farmers
Realized gross farm income was 1 percent higher in 1957 than in 1956.
However, higher cash receipts from livestock and an increase of nearly half
a billion dollars in Soil-Bank payments were not sufficient to counteract reductions in crop marketings and increases in production expenses. Unusual
weather conditions in the autumn lowered cash receipts from cotton, delayed marketings of hogs to allow feeding of wet corn, and thus adversely
affected farm income in the fourth quarter. Net realized farm income,
while higher than in 1955, declined from $12.1 billion in 1956 to an estimated $12.0 billion in 1957. After adjustment for net change in inventories, net farm income was the same as in 1956.
Most of the increase in total expenses was due to higher overhead costs—
depreciation charges that reflect heavy capital investment in earlier years, tax
payments, and interest. More expensive feeder livestock, motor vehicles,
and farm machinery contributed to a 4 percent rise in the index of prices
paid for all items (including interest, taxes, and wage rates) and held the
statutory parity ratio at its 1956 level.
The over-all financial position of agriculture continues to show strength.
The value of farm land per acre on November 1, 1957, was 7 percent higher
than a year earlier and one-fourth higher than in 1951. This was the
main factor lifting the value of proprietors' equities to an estimated $168.4
billion as of January 1, 1958, about 7 percent above the previous peak. A
further rise in real estate debt also occurred, but the ratio of total liabilities
to proprietors' equities declined. Relatively few farms are being offered
for sale, and foreclosures in 1957 were below the relatively low rate in 1956.
Efforts to enlarge existing holdings in the interest of improved efficiency,
demands for rural home sites, and other nonfarm uses for farm land in
some regions all lend strength to farm land values. To some extent, these
higher land prices also reflect the capitalized value of Government programs to sustain farm income and prices.
T H E EXTENT OF THE OVER-ALL DECLINE

The decline in over-all economic activity that had taken place by the end
of 1957 was moderate. The Nation's output of goods and services in the
fourth quarter was less than. 1 J/i percent below the total reached in the third
quarter. Nonagricultural employment in December, adjusted for seasonal
changes in the number of jobs, was about 2 percent below the summer peak,
and personal income had declined by less than 1 percent.
Final purchases of goods and services were, in the aggregate, virtually
unchanged—only $1 billion less than in the third quarter—but inventories,
which had been accumulating at the rate of $2 billion annually in the third
quarter of the year, were being used up in the fourth quarter at the rate of
$3 billion or more. Adjustments in inventory holdings, therefore, accounted
for most of the declines in production, employment, and income which developed toward the year's end.




38

Because of the high level of private investment expenditures and of Government purchases, and the strength of consumer demand, labor income
declined by only 1 percent between the third and the fourth quarters of the
year. And since other forms of income, notably payments to individuals
under various income-maintenance programs, increased in the fourth quarter, total personal income fell even less than 1 percent. Personal income
after taxes fell by $2 billion in the fourth quarter, and personal consumption
expenditures by $ 1 billion.
Thus, the over-all decline has been moderate, despite rather sharp reductions in inventories and in industrial production. Purchases of goods
and services for final use have been well sustained; incomes have held up
well; and the continuing high level of retail purchases attests to the confidence of consumers in their economic position.




39

Chapter 3

Foreign Developments and the American Economy

T

HE INTERACTION between economic developments in other countries and in the United States was again evident in 1957. In the early
part of the year, foreign demand exerted a strongly expansive effect on the
American economy. United States exports, which had already been rising
rapidly with the growth in economic activity abroad, increased with unusual
force as a result of demands arising from the closure of the Suez Canal
and other temporary circumstances. These special demands subsided at
the same time that the pace of economic expansion abroad slowed down,
and United States exports declined from the record level of the first half
of the year. United States imports varied only slightly, in total amount,
from the 1956 level, though the demand for raw material imports declined
in the latter part of the year, as a result of reduced industrial activity.
When economic activity contracted in 1953-54, United States demand
for imports fell for a time. However, the outflow of dollars through capital
investment and in other ways increased; this strengthened the foreign
exchange positions of other countries and helped promote economic expansion. The continued rise in industrial production in Western Europe supported world trade and commodity prices and contributed to an upturn in
economic activity in the United States.
In the months ahead, developments in the United States economy and
in its external trade and financial relations will influence, and be influenced
by, economic developments in other countries. It is important that policies
pursued here and abroad promote economic growth and counteract strains
that would lead to raising and hardening trade barriers among nations.
CHANGES IN PRODUCTION

Industrial production abroad (excluding output of countries in the Soviet
bloc) averaged about 4 percent higher in 1957 than in 1956, and close to
double the prewar output (Table 7). In most countries, the lead in the
exceptionally rapid expansion since 1953 was taken by the metal and
metal-fabricating industries, to meet strong home-investment and export
demands. In the more developed countries, the demand for consumer
durable goods also proved to be heavy, as incomes and levels of living rose;
during 1956, textile manufactures, which had previously lagged, joined
in the rise.




4°

TABLE 7.—World industrial production, 1955-57
[Index, 1953=100]
1957
Country

1955

1956

First Second Third Fourth
quarter quarter quarter quarter
Not seasonally adjusted

World:»
Including United States
Excluding United States

110
118

U25

119
129

120
133

3 115
* 127

Seasonally adjusted
O E E C countries

119

Canada
United States.

130

131

131

138
122
111
«129
139
134
104
128
124
122
114
113

144
127
118
142
147
142
102
135
130
123
118
113

146
125
116
143
148
145
104
137
127
128
120
116

147
* 117
113
144
146
149
100
138
126
128
119
116

107
104

„.

125

133
116
112
117
129
130
108
118
118
117
111
114

Austria
Belgium
Denmark
France
Germany, Federal Republic.
Greece
Ireland
Italy
Netherlands
Norway
_.
Sweden
United Kingdom

114
107

117
109

115
107

114
107

3 131

()

7 151
U46

()

7 124
7 128
)
7 115
7 112
104

Not seasonally adjusted
India
Japan
Yugoslavia
Argentina
Chile
Brazil
Mexico

116
117
132
118
102
112
119

126
142
145
117
104
112
130

133
150
150
111
95
(4)

149
164
165
120

(4)

(4)

164
170
7 4131
()

(<)

()
7 159

w

i Excluding USSR and other members of the Soviet bloc.
* Quarterly figures for 1956 are: for the world including United States, 114, 116, 112, 119; for the world
excluding United States, 122, 128, 122, 130.
3 Preliminary estimates by Council of Economic Advisers.
« Not available.
«Reflects July strike.
6
Average of quarterly figures for 1956 would be 134.
7
Partial data for quarter.
Sources: United Nations and Organization for European Economic Cooperation (except as noted).

These gains in industrial production were achieved in Western Europe
generally by May 1957, and there appears to have been no further over-all
increase since then. Production in the Federal Republic of Germany, after
a pace-setting rise up to mid-1956 and a further vigorous increase in the
first quarter of 1957, fell in the summer but turned upward again in
the autumn. The revival in the United Kingdom's industrial output
starting in the spring did not go much beyond the level reached at the end
of 1955. In France, however, the industrial upsurge that began in 1954
continued during 1957; but it was accompanied by inflationary pressures
and produced an imbalance in trade and a depletion of foreign exchange
reserves.
Industrial output in Canada leveled off in the early months of 1957 and
then receded. Japanese production, after a long and rapid increase, de-




41

clined after July. Industrial activity in India and Yugoslavia continued to expand rapidly, but this was not typical of less developed countries
as a whole. In Latin America, the total volume of mining output expanded
appreciably, but manufacturing appears to have been only moderately
higher than in 1956\
Although the growth of demand slackened in some countries, a slower
rate of increase in output was inevitable because, in a number of cases,
industrial production had begun to crowd the physical limits set by existing
plant capacity or by the supply of labor. Moreover, in response to the rise
of prices and wages, the monetary authorities in most of the developed
economies restricted credit, thereby restraining investment outlays. In
several countries, loss of foreign exchange reserves as the result of trade
deficits or speculative capital movements compelled policies of restraint.
T H E COURSE OF WORLD TRADE

Total world exports (excluding those of the Soviet bloc) reached an
annual rate close to $100 billion during the first half of 1957. In physical
terms, exports were 8 percent above those in the first half of 1956 and nearly
40 percent above the same period of 1953 (Chart 13). In recent months
there has been little further expansion. Trade among the industrial countries accounted for most of the increase to mid-1957. In relative terms,
however, some of the sharpest increases were in imports of certain of the
less developed countries (Table 8). Most of this rise was in their trade with
the United States and other industrially developed countries.
TABLE 8.—Changes in world trade, 1955—57
Imports

Exports

Area

World i

July
1956June
1957
(billions
of
dollars)

Percentage
increase
First half First half
1955 to
1956 to
first half first half
1956
1957

July
1956June
1957
(billions
of
dollars)

Percentage
increase
First half First half
1955 to
1956 to
first half first half
1956
1957

94.9

12.2

10.9

103.1

11.0

11.9

24.1
8.6
38.3

16.8
10.6
12.2

18.7
2.1
11.8

20.7
8.3
45.5

17.9
2.7
10.5

3.5
14.4
14.0

To or from other Western
European countries
To or from other areas

19.7
18 6

11.3
13.0

12.9
10.7

20.2
25.3

11.6
9.7

11.9
15.7

Overseas territories of continental
Western Europe _ _
Outer sterling area
Middle East 3
Far East 3
Other countries 3

2.8
12.0
2.2
4.7
2.2

6.8
5.9
24.5
14.2
2.2

.7
4.5
3.4
12.4
8.4

3.7
12.8
2.2
6.9
3.0

2.5
7.1
11.9
17.8
9.3

18.0
7.3
1.8
34.0
12.1

Northern North America 2
Latin America
Western Europe (OEEC countries).

» Excludes USSR and other members of the Soviet bloc.
Exports exclude military aid shipments by United States and Canada.
Excludes countries belonging to the sterling area.
Sources: Department of Commerce, based on data from United Nations and Organization for European
Economic Cooperation.
2
3




CHART 13

World and U. S. Foreign Trade
J . S. exports rose much faster than imports or total world trade
rom early 1956 to early 1957, but declined later in the year.
BILLI ONS OF DOLLARS, 1953 PRICES
120
SEASONALLY ADJUSTED ANNUAL RATES

100
WORLD TRADE
(MEASURED BY
MERCHANDISE EXPORTS)

^_

J
*

^^

N
80

-

^

60

o

1

1

1

1

1

i

1

1

1

1 1

i

i

i

1

i

i

i

r

BILLIONS OF DOLLARS, 1953 PRICES (ENLARGED SCALE)
SEASONALLY ADJUSTED ANNUAL RATES
-

20

1 8
U.S. MERCHANDISE
EXPORTS

/
X

16

-

1 4

r

r

1 2

-

MERCHANDISE
IMPORTS

1 0
<




<
1

1
1953

1

1

1

1

1954

1

I

1

i

1955

1

1

1

1

I

1

1

1956

MOTE: DATA EXCLUDE U.S. MILITARY SHIPMENTS UNDER AID PROGRAMS AND
EXPORTS OF USSR AND OTHER MEMBERS OF THE SOVIET BLOC.
SOURCES: COUNCIL OF ECONOMIC ADVISERS AND DEPARTMENT OF COMMERCE.

43

1

1957

1

1

Purchases of American goods and services by foreign countries rose with
exceptional vigor during the first quarter of 1957 to an annual rate of about
$27 billion, 25 percent higher than a year earlier (Chart 14). They maintained this rate during the second quarter and most of the third, but declined
in the autumn.
Exports of three commodities—petroleum (and products), raw cotton, and
wheat—together increased by $850 million and accounted for nearly one-half
of the increase in total United States merchandise exports between the first
half of 1956 and the first half of 1957. The large rise in petroleum shipments resulted from the temporary disruption of traffic through the Suez
Canal. Cotton shipments, which had been abnormally low in 1955-56
prior to the reduction in the United States export price to world market
levels, rose to exceptionally high amounts as foreign stocks were rebuilt.
Exports of wheat were unusually large, primarily because of the poor European harvest in 1956 and large special-program shipments to Asian countries.
In addition to these special circumstances, United States exports benefited from reductions achieved in trade barriers abroad and, until mid-1957,
from the general buoyancy of foreign demand. Sales of both industrial
materials and capital equipment rose as industrial activity expanded abroad
(Table 9). Exports of many products, such as steel, scrap, and machinery,
TABLE 9.—U. S. merchandise exports and imports, 1953—57
[Millions of dollars]
1953-55

1956

1957

Commodity group
Quarterly average
Domestic exports !

First
quarter

Second
quarter

Third
quarter

3,248

4,286

5,043

5,089

4,437

Producers' supplies and materials:
Cotton, tobacco, and other agricultural materials
Nonagricultural materials

305
1,055

366
1,474

531
1,847

378
1,625

Capital equipment

1,036

1,326

1,432

433
1,847
1,643

1,430

685
380

762
396

709
397

595
348

Consumer goods:
Food
Other consumer goods

464
346

Miscellaneous.

43

56

G eneral imports.. _

2,706

3.151

Producers' supplies and materials:
Petroleum and products
Other materials 2used in production of nondurable goods
Materials used in production of durable
goods
Materials used in agriculture

75

60

61

3,237

3,205

3,197
406

382

580

560

518

756
94

918
84

834
94

884
101

873
85

92

105

108

92

793
318

879
332

737
359

747
414

40

Miscellaneous.
1
2
8

360

570

797
228

Consumer goods:
Food, beverages, and drugs
Other consumer goods

320

514

58

Capital equipment 3

219

55

53

74

Excludes military aid, and motion picture films exported on a royalty basis.
Includes newsprint and paper base stocks and tobacco.
Includes agricultural machinery.
NOTE .—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.




44

CHART 14

U. S. Balance of Payments
The excess of U. S. receipts from other countries over payments to
them led to reductions in foreign gold and dollar holdings in 1957.
BILLIONS OF DOLLARS
SEASONALLY ADJUSTED

8 -

J0T*

TOTAL PAYMENTS
\

6

_

.

\
TOTAL RECEIPTS
_

4 ,_
I

I

I

1

1

1

I

1

I

1

-S

RECEIPTS
6

\

-

—

EXPORTS OF GOODS
AND S! IRVICES

4

-

>

<
OTHER RECEIPTS-*/

1

-I

0

>\

\m^"mV^ 1

PAYMENTS
IMPORTS OF GOODS
AND SERVICES

4

U.S. PRIVATE
CAPITAL 3 ^

GOVERNMENT GRANTS AND
PRIVATE REMITTANCES^/

I

/

-

o L—cd

I955

I956

-*/ FOREIGN LONG-TERM CAPITAL PLUS ERRORS AND OMISSIONS.
•2/ INCLUDES RELATED GOVERNMENT CAPITAL EXPORTS.
& INCLUDES EXPORT-IMPORT BANK LOANS.
NOTE: DATA EXCLUDE MILITARY GRANT-AID.
SOURCE: DEPARTMENT OF COMMERCE.




45

I957

were facilitated by the possibility of obtaining delivery more rapidly from
the United States than from other sources, though this entailed some additional upward pressure on United States prices of such goods. Exports of
consumer finished goods, on the other hand, rose more slowly.
As the year progressed, foreign demand for United States output declined from the very high rate of the early months. Late in the year, the volume of exports had fallen to a level slightly below that of 12 months earlier
and was at an annual rate markedly lower than in the first six months
of 1957.
The expansion of imports into this country, though much smaller than
the rise in exports, was fairly general and substantial from 1954 to 1956.
Further growth of imports has been limited, with increases occurring
chiefly in petroleum and products and consumer manufactures including
automobiles (Table 9). Imports of industrial materials, other than petroleum, which had constituted nearly half of total imports in 1953-56,
reflected the decline in domestic manufacturing production and showed
some effect of reductions in prices.
INTERNATIONAL FINANCIAL DEVELOPMENTS

Disparities between movements in exports and in imports gave rise
to some exceptionally large trade deficits and consequent difficulties in
international payments. In India, heavy private and public demands
generated by the program for economic development caused the trade
deficit to increase by an annual rate of more than $600 million from
the first half of 1955 to the first half of 1957. Smaller increases occurred
in some other less developed countries. Trade deficits also rose in some
of the industrially more advanced countries over the same two-year period—
by an annual rate of $1,550 million in France, almost $1,400 million in
Japan, and $640 million in the Netherlands. These changes had their
counterpart in increased trade surpluses of a few other countries. That of
the United States rose by an annual rate of $4,500 million and that of
Western Germany by a rate of $600 million.
The deficits and surpluses arising in international trade in the recent
past were to a large extent offset by capital movements. Much of the
large increase in the excess of our exports over imports of goods and
services in the last few years was made possible by a rapid growth in the
outflow of United States private capital. Although private American
investment abroad fell sharply in the third quarter of 1957, it was still
relatively high. United States Government grants and credits remained
close to previous levels and continue to contribute significantly to our export surplus (Chart 14).
In a number of countries, however, trade balances were not covered
by capital movements; and in several cases capital outflows, particularly of
a speculative nature, increased rather than alleviated these strains. The
United Kingdom achieved a surplus on current account but experienced




a still larger outflow of capital. Much of this outflow was due to speculative
operations, concentrated first during the period of the Suez crisis and again
during the summer of 1957.
The net result of these movements on trade and capital account was a
sharp fall in the gold and foreign exchange reserves of a number of countries, notably France, the United Kingdom, India, Japan, the Netherlands,
and Belgium. In addition, heavy demands were made upon the resources
of the International Monetary Fund, and further credits were obtained
through the European Payments Union. Part of these gold and exchange
resources were used in settlements with the United States. The net decline
in the gold and dollar balances of foreign countries and of international
institutions attributable to transactions with this country amounted to $900
million during the year ended September 30, 1957. A substantial inflow
of foreign private capital played a role in these movements; some of these
assets are potential sources of additions to foreign currency reserves.
Certain foreign countries, however, added significantly to their gold and
foreign exchange holdings during that period. The increase amounted to
$1,650 million in Western Germany. Other major increases were $800
million in Venezuela and $300 million in Canada, influenced in both cases
by large capital inflows, chiefly from the United States. Australia's gold
and foreign exchange holdings, mainly in sterling, rose by about $500 million.
In several countries, notably the United Kingdom, the Netherlands, and
Japan, exchange positions took a turn for the better before the end of 1957.
Credit policy, operating externally on speculation and internally on investments and inventories, was the major corrective measure. France, however, responded to continued losses of exchange reserves by devaluing the
franc and tightening trade controls. Within the French economy, the
pressure of demand remained strong and consumer prices rose further,
whereas in most European countries retail prices increased much less than
in other recent years.
Western Germany's strong external position and some easing of domestic
demand permitted a reduction in its central bank discount rate while other
countries were raising theirs. Western Germany was also able to provide
some direct relief to the international payments situation by prepayments
on long-term debts and by new loans.
Demand in the nonindustrial countries has continued strong, as shown
by the further rise in the imports of this group of countries in the third
quarter of 1957. Thus, United States exports of machinery to Latin
America in that period expanded further, although machinery exports to
Canada and Western Europe declined. In a number of the less developed
countries, the increases in imports reflected, in part, inflationary internal
conditions and resulted in continued difficulties in international payments.
The foreign exchange earnings of a number of countries heavily dependent on the export of primary products have been reduced as the result
of declines in prices of certain commodities—including minerals and metals




47

and some foodstuffs and fibres—as enlarged capacity and output encountered
some slackening in export demand. The effective buying power of the
primary producing countries has been further impaired by the rise in prices
paid for imports of manufactured goods.
FUTURE PROBLEMS AND POLICIES

Although world production and trade are, for the time being, not rising
at the rapid rate of recent years, the possibilities for further advance remain
great. Potential demands abroad for consumer goods, for public facilities,
and for other types of investments continue to be large. Most governments today recognize a responsibility for pursuing policies to promote high
levels of economic activity. The industrially less developed countries are
eager to push ahead with their economic development. Vigorous growth
abroad will help fulfill universal aspirations for economic betterment and
can result in a rising level of demand for United States goods and services.
The actual course of foreign economic developments will be influenced in
significant measure by developments in our own economy and in our foreign
and domestic policies. Whether potential external demands for our goods
and services materialize will depend primarily upon foreign opportunities
to earn dollars through exports to the United States or to obtain loans and
investments. These opportunities have expanded swiftly ever since the end
of the war, with only minor interruptions, and have played an essential role
in world economic growth. If the outflow of dollar payments should cease to
grow or should contract, the continuation of economic expansion abroad
would become more difficult to achieve and measures aimed at restricting
purchases from the United States might result, because of lack of dollars to
pay for them. A continued rise in the outflow of dollar payments, on the
other hand, would make for a mutually reinforcing economic expansion here
and abroad.
The economic policies of the United States, both domestic and foreign,
have an important bearing on these prospects. In the field of domestic
economic policy, growth and stability are important objectives not only
for this country's welfare but also for their effects on foreign countries
through our imports and in other ways. In the field of foreign economic
policy, our aims are expressed in programs of economic and technical assistance for promoting economic development abroad and in efforts to extend
the liberalization of trade.
In all of this, we stand to benefit not only by the rise in foreign demand
for our exports but also by the increase in foreign capacity to meet our import
needs. The contribution made by imports to our welfare includes the
satisfaction of certain essential requirements and a widening of the variety
of goods available to our consumers and producers. These results are to
the good of the Nation. It would be a grave loss to impede our access to
needed imports or to isolate ourselves from the specializations and skills of
other countries.




Chapter 4

Economic Opportunities and Challenges Ahead
A S WE ATTEMPT to evaluate the current economic situation and the
•^ ^ outlook for the year ahead, we must be alert to the limitations of our
information concerning many factors that will influence the outcome and,
above all, to the uncertainties that attend any effort to chart beforehand
the course that our free economy will take. However, it seems likely that,
in the current year, changes in spending by business concerns on new facilities and equipment and by Government on defense procurement will significantly influence the magnitude and duration of the movement of inventories
and, in conjunction with inventory changes, the course of over-all economic
activity. Accordingly, attention may usefully be directed first to these important components of the demand for goods and services.
APPRAISAL OF THE CURRENT ECONOMIC SITUATION

Although an extension into 1958 of the decline in business expenditures
on plant and equipment is suggested by data on new orders and contracts,
and by information on businessmen's investment intentions, the magnitude
of the decline and its duration are uncertain. Decisions regarding these expenditures are influenced by a variety of conditions that affect particular
industries and firms and are subject to rapid change. The outcome will be
especially affected by sales experience and expectations. A decline in investment spending seldom lasts only a few months; however, in some industries
reductions began as early as 1956, and in many others they have been in
progress during much of 1957. Also, certain conditions that tend to limit
the decline may be noted. Pressures to reduce costs and to improve products
continue and in some respects have been intensified. Research and
development activities, which are cumulative in their results, continue at
a high level and are certain to yield many practical suggestions for undertakings the financial feasibility of which will be enhanced by the greater
availability and lower cost of capital and credit.
For other categories of investment expenditures, many evidences of
strength are apparent. There are signs that the rise in residential construction outlays will continue, possibly at a faster pace. Well-maintained
personal incomes, greater availability of mortgage credit, and recent moves
to reduce the cash investment required for home purchase will help achieve
this result. Expenditures for the construction of various types of private
institutional buildings have been rising for several years. Growing needs for




49

such facilities and the improvement in financing conditions reinforce the
evidence provided by contract awards that outlays on this type of construction
should continue to rise moderately.
Foreign demand, on the other hand, is likely to exert a moderately contractive influence on economic activity for the time being. The reasons
for this are discussed in Chapter 3. They include the passing of the special
circumstances which accounted for part of the sharp increase in United
States exports in 1956 and early 1957, some slowing down in economic
expansion abroad, and pressure on the foreign exchange positions of certain
nations abroad. While a reduction in some categories of United States
import demand is also evident, exports seem likely to decline relative to
imports. This development, in conjunction with other international economic transactions, would involve a further, though probably modest, reduction in net foreign investment and hence in the stimulus provided to
production and employment from this quarter.
In view of the necessary acceleration of certain defense programs, and the
steps already taken to give effect to this change, national security expenditures may be expected to increase during the year ahead. Insofar as business activity is affected by the award of procurement contracts, which are
being placed at an increased rate, it may rise earlier and more strongly
than the prospective increase in national security expenditures.
The growing need for public services, and particularly the further
increase of highway construction, point to a continued high rate of increase
in the expenditures of State and local governments. The outlook for more
ample and lower-cost financing strengthens this expectation.
The uncertainties associated with estimating the movement of each of
these major elements of demand remain, of course, when an attempt is made
to strike a balance for them taken together. Though the decline in business
outlays on new plant and equipment may outweigh the combined rise in
other types of investment expenditures, this is likely to be offset by the
necessarily larger outlays on certain defense procurement items and by the
rising expenditures of State and local governments. And the rate of inventory reduction may not be substantially greater than it has been so far,
if the balance between government expenditures and business capital outlays is favorable and if personal incomes and consumption expenditures
are well maintained, as seems likely.
These considerations suggest that the decline in business activity need
not be prolonged, and that economic growth can be resumed without
extended interruption. The policies of Government will be directed toward
helping to assure, this result.
T H E LONGER PERSPECTIVE

At a time like the present, when the economy is adjusting to the large
increases in productive capacity created in the past few years, it is well to
seek a longer perspective on our economic prospects and to consider some




50

of the sources of strength for the years ahead. There are good grounds for
confidence not only that economic growth can be resumed without prolonged delay, but also that a vigorous expansion of our economy can be
sustained over the years. Our domestic market for goods and services
has about doubled every quarter of a century. There is every reason to
believe that we shall do at least as well in the next 25 years.
The vigorous postwar growth of population is a basic and powerful force
making for expansion in the American economy. Our numbers are increasing by some 3 million a year, and there is no reason to doubt a strong
uptrend in the next quarter century. In our economy, an increase in population continues to mean new and enlarged markets for output. Over the
last two decades, per capita consumption has increased by more than 50
percent, in spite of changes in the age composition of the population which
have tended to lower basic needs per capita for consumer goods. After
this year or the next, the number in the group aged 13 to 19, whose needs
and wants are much greater than those of young children, will increase
substantially for a decade or more.
The growth and changed age distribution of our population will require
greatly expanded private facilities for the production, transportation, and
distribution of goods and for services of many kinds, including education.
The capital assets normally provided by Government must at least keep
pace, and the expansion of some types of public assets will have to be
at a faster rate to reduce backlogs and to supply services that will be required
in especially increased amounts. The clearly indicated need for enlargement of the capacity of our public schools, colleges, and universities
is a case in point. Large and growing sums will be spent by State and local
governments to provide needed educational and other facilities and services.
Large public and private outlays will also be required to develop and conserve our water, land, forest, mineral, and energy resources. Major undertakings have been launched in many cities, with Federal aid, looking to the
renewal of urban areas, and many more are in the planning stages. State
and local outlays have been rising at the rate of $3 billion a year, and something like this rate of increase must continue, to keep pace with growing
requirements.
Many activities of the Federal Government exert a growth-promoting
influence. Grants to States for extending and modernizing our roads and
highways will reach $1.8 billion in the current fiscal year and $2.4 billion in
the next fiscal period. The program for providing the navigational aids
necessary to jet air travel and otherwise modernizing our airways will grow
in magnitude over the next several years. Major improvements will be
called for in the great variety of physical facilities utilized by the Federal
Government. Like the vast improvements in public assets being undertaken by State and local governments, these Federal programs are designed
to keep pace with expanding public needs and to facilitate the long-term
expansion of our private economy. These additions to the Nation's assets




will have an economic effect many times their direct cost through the new
opportunities for profitable private investment which they will inevitably
open up.
A further element of strength consists in the increase of knowledge and
the improvement of technology which are being steadily fostered by a huge
expansion of our educational system and of research and development.
Billions of dollars are being spent each year by private industry and institutions on scientific and technical research, and additional billions by the
Federal Government. These efforts, including many federally supported
projects related to national defense, will lead to new products for civilian
use and improved methods of production. Indeed, a large proportion of
our output in 1957 consisted of products not in use a decade or so ago. There
is every reason to expect continuation of these trends in the years ahead.
It can be safely anticipated that the momentum of economic development,
which has been a notable feature of recent years in most of the advanced
countries of the world and in several of the less advanced, will be resumed
as readjustments now in progress are completed. The extent of international economic cooperation among the free nations of the world exceeds
anything heretofore experienced, and recent steps toward greater economic
integration in Western Europe hold out high promise, Almost everywhere,
horizons have been extended and greatly enlarged economic potentials are
recognized. In this perspective, the temporary strains now being felt in
some countries and the more basic problems of others can be faced with
more assurance.
Important developments in recent years have significantly improved the
outlook for greater stability in our economy. Among these are the substantial progress of market and economic research by American businesses, and the more orderly and longer-range planning which they now
undertake for the expansion and improvement of their productive facilities.
Businesses can usefully intensify these activities. In large part because of
them, it is less likely now than in earlier years that unsound projects will be
launched in a boom psychology, or that projects needed for the long pull
will be discontinued in a period of readjustment.
The stability of our economy is also enhanced by public and private arrangements, greatly extended in recent years, that help maintain incomes
in an economic downturn. The Federal-State unemployment compensation system is functioning with enlarged coverage and somewhat liberalized
benefits. The broadened coverage of old age, survivors, and disability insurance and the increasing volume of payments sustain the purchasing power
of many millions of consumers. Benefits are also paid in an increasing
volume to many millions of persons under private pension and welfare programs. Under our tax system, income tax liabilities vary directly with individual and corporate income, so that incomes change less after tax than
before tax. Such stabilizers cushion the impact of an economic decline and
improve the basis for early resumption of growth.




The strength of our financial institutions provides a basis for confidence
both in immediate economic prospects and in the outlook for economic
growth over the longer run. Speculative excesses have been notably rare
in our recent experience. Though consumer debt is higher than ever before,
it is not dangerously burdensome in a growing economy. The prevalence of regularly scheduled debt repayment, both on long-term mortgage indebtedness and on shorter-term obligations, reduces the risk of defaults. A
far greater proportion than ever before of the assets of financial institutions
is protected by governmental insurance or guaranty; and the guaranty of
liabilities to depositors covers virtually all of our banks.
Assured of these continuing sources of economic and financial strength and
stability, business concerns and consumers can make plans which will enable
the Nation to move forward to new economic achievements.
The latest challenge of international communism will require a further
increase in the economic claims of national security, which are already heavy.
If we follow suitable private and public policies, this challenge can be met
without distorting our economy., or destroying the freedoms that we cherish.
Whatever our national security requires, our economy can provide and we
can afford to pay.
T H E CHALLENGE TO ECONOMIC POLICIES

Although a realistic appraisal of the present economic outlook warrants
confidence, it also requires that we recognize an unfavorable feature of the
recent performance of our economy. In 1957, the money value of gross
national output rose by almost 5 percent, but in physical terms the increase
was only about 1 percent. There was a good expansion in demand but,
despite the existence of unused capacity in several important lines of industry, it was accompanied by an increase in prices and only a small increase in
output. At the same time, the margin between business costs and prices
narrowed, business profits were reduced, and at the end of the year production and employment were declining.
There is no simple explanation of recent economic developments and no
easy solution to the problem of maintaining high employment, vigorous
economic growth, and reasonably stable prices. But it is clear that the combination of policies and practices followed in the recent past by the various
participants in our economic life has given results that in certain important
respects are unfavorable.
There are critical questions here for the leadership of business and labor,
as well as for Government. Business concerns must re-examine their policies
and practices. Price increases that are unwarranted by costs or that attempt
to recapture investment outlays too quickly not only lower the purchasing
power of the dollar but may be self-defeating by causing a restriction of markets, lower output, under-utilization of capacity, and a narrowing of the
return on capital investment. The leadership of labor must recognize that




53

wage increases that go beyond prospective productivity gains are inconsistent with a stable price level. The problem of inflation can only be
aggravated by wage increases that are demanded and obtained on the
assumption that living costs are going to rise; and the resumption of economic growth can only be slowed by wage demands that imply either an
increase in prices or a further narrowing of the margin between prices and
costs. Government's role is to follow policies that will help keep our economy stable and promote sound economic growth with reasonably stable
prices.
The resumption and maintenance of economic growth which can be
achieved through suitable private and public policies assure expanding
economic strength with which to meet the Nation's needs, accomplished
through an enterprise system that preserves individual freedoms. However, if this opportunity is to be fully realized, economic growth must take
the form of increases in real output, accompanied by a stable price level.
This can be achieved if weight is given to long-run as well as short-run
considerations in policies and practices that affect our economic welfare.
It can be guaranteed by a public opinion that is alert to the consequences of
wrong policies and insists on those that will yield real economic growth
without inflation.




54

Chapter 5

A Legislative Program To Help Achieve
National Economic Goals

T

HE LEGISLATIVE PROGRAM for the coming year, which is presented here, is designed to help discharge the responsibilities of the
Federal Government under the Employment Act of 1946. It takes account
of present and foreseeable economic conditions and seeks to reach an appropriate balance among our national economic goals. The proposed measures would strengthen the foundations on which sustainable economic
growth and national security are based, help moderate fluctuations in our
economy, aid in countering a resurgence of inflationary pressures, and assist
in the sound development of the free world economy.
First, the program recognizes the economic impact of the fiscal policies of
Government. It takes particular note of the far-reaching effects of the
activities under which the Federal Government makes loans directly to
individuals, business concerns, local governments, and other groups, or insures or guarantees loans made to them by private lenders. Second, it
proposes steps to improve our store of technical knowledge and productive
skills, the better to meet the problems of our time. Third, it suggests measures to enhance the competitive character of our system of private enterprise, with emphasis on strengthening the economic position of small business
concerns. Fourth, it suggests ways of giving to individuals greater protection
against economic hardships, of promoting integrity in labor-management
relationships, and of improving industrial relations. Fifth, it proposes the
extension of certain agricultural laws and the revision of others, to facilitate
long-needed adjustments. Sixth, it proposes means for widening and
strengthening our economic ties with other nations. And, finally, it suggests
measures for improving the economic information needed by private and
public groups to follow and analyze economic developments and to provide
a sounder basis for policy decisions.
GOVERNMENT FINANCES

The Federal Government's fiscal operations are of such size and character that the policies followed in these matters cannot fail to exert a
powerful influence on economic conditions. Fiscal policies can contribute significantly to the attainment of national economic objectives
or can impede their accomplishment. It is crucial, therefore, that they




55

be attuned to the times and so designed as to promote the long-run as
well as the immediate economic welfare of the Nation.
The budget provides an integrated view of the planned fiscal operations
of Government. It also provides a basis for considering the impact of fiscal
operations on the economy. In determining budget policy, four objectives
are uppermost: to make adequate provision for needed services; to provide
these services efficiently; to promote suitable relationships among Federal,
State, and local governments; and to make the maximum contribution to
economic growth and stability.
Because the provision of services by Government requires that income be
claimed that would otherwise be used privately, the first of these objectives
means, in a broad sense, that the amount of income which is taken in taxes,
the sources from which taxes are drawn, and the way tax receipts are spent
should be such as to maximize Government's contribution to national
welfare. Constant vigilance is needed to get the work of Government done
at the lowest cost consistent with the desired level of performance, which is
the essence of the second stated objective, but vigilance is needed also to
assure that the income which Government takes in taxes makes a greater
contribution to well-being when spent publicly than it would if used
privately. Efficiency in this broad economic and social sense requires wise
judgment in selecting the activities on which the revenues of Government
are to be spent and in allocating the burden of taxation.
The third objective—a suitable relationship among the various levels
of Government—has been affected by the increasing scope and complexity of our economic life, a desire to conduct various programs on a uniform basis, a succession of national emergencies, and the existence of a
highly productive Federal revenue system. These circumstances have
tended to direct more functions to the Federal Government, with the
consequence that a continuing re-evaluation of the distribution of governmental functions and of the revenues for financing them is necessary.
During the past year, a Committee of ten Governors and seven Federal officials, including three Cabinet members, has been developing recommendations and plans under which certain functions now performed at the Federal
level may be undertaken by the States, with an appropriate transfer of revenue sources presently used by the Federal Government. The first results of
this constructive work are described in Progress Report No. 1 of the Joint
Federal-State Action Committee, issued December 5, 1957. Where necessary, legislative proposals to carry out these recommendations will be transmitted to the Congress.
The continuing work of the Committee is expected to yield additional
suggestions. Its efforts will also help establish clearer definitions of responsibility for emerging problems.
The balance between Federal budget expenditures and receipts in the
calendar year 1957 was broadly favorable to the attainment of the fourth
goal of fiscal policy, namely, to help create conditions conducive to economic




56

growth and stability. Although Federal expenditures were somewhat
higher than in the preceding year, some surplus of receipts over outlays helped
moderate inflationary pressures.
The need to accelerate important portions of our defense program requires that the Congress make certain supplemental appropriations early in
the calendar year 1958 and authorize the Executive Branch to make certain
transfers of funds under existing appropriations. The acceleration of our
defense program, which these steps will facilitate, will result in some increase
of Federal outlays in the fiscal year 1958. And readjustments currently
taking place in the economy suggest that receipts will be somewhat lower
than was estimated earlier. Present indications point, therefore, to a small
excess of outlays over receipts for the fiscal year as a whole.
Budget estimates reflect the interaction between economic developments
and the Federal Government's receipts. With the anticipated resumption
of economic growth, receipts in the fiscal year 1959 are expected to be
enough higher than in fiscal 1958 to provide a small surplus over the somewhat increased level of projected expenditures. The prospective surplus is
a narrow one, however, and insufficient to permit the reductions in the corporate income tax rate and in the excise taxes on automobiles and parts,
cigarettes, distilled spirits, wines, and beer scheduled to take effect on July 1,
1958. It is recommended, therefore, that these tax rates be extended by
legislative action for an additional year.
The statutory limit on the public debt returned to $275 billion at the
beginning of the fiscal year 1958. At that time, the debt subject to this
restriction was slightly over $270 billion. The usual excess of cash payments
over receipts in the first half of the fiscal year resulted in an increase in the
public debt outstanding, and at the end of December the debt subject to
limit was less than one-half billion dollars under the ceiling.
It has been possible to conduct the Federal Government's fiscal operations
within this statutory restriction only by the most careful economy and by
drawing down Treasury cash balances to uncomfortably low levels. This
extremely narrow margin has imposed serious problems of fiscal administration on the Federal Government, not the least of which is the lack of flexibility needed for efficient management of the public debt. Financial demands
upon the Treasury will be severe also during the second half of the calendar
year 1958. The higher rate of expenditures dictated by our national security
requirements, the seasonal pattern of Treasury receipts, and the need for
greater operating flexibility requires a less restrictive debt limit. Legislation
providing an appropriate temporary increase will be requested of the
Congress.
FEDERAL CREDIT PROGRAMS

Increasing attention has been directed recently to the numerous programs
under which the Federal Government lends money directly to individuals,
local governments, business concerns, and other groups, or underwrites,
either by insurance or by guarantee, credit extended to them by private




57

lenders. These Federal programs fall into four broad categories: programs
under which direct loans and loan insurance are provided for housing; direct
loan and loan insurance programs for farm people; programs of financial
aid for business concerns; and programs under which loans are extended to
foreign firms or governments and international agencies. Some programs
were designed originally to fill gaps in private credit markets; others were
created to achieve certain social objectives; and still others were designed
to meet specific defense needs or to support the foreign policy of the United
States.
All of these programs involve the credit of the Federal Government in
one way or another. They also tend to swell Government expenditures,
though they are by no means fully reflected in Federal budget totals. Insured and guaranteed loans do not appear in budget expenditures at all,
except for the relatively minor administrative costs and the losses which
have been associated with them; and, in most cases, direct loan programs
result in net expenditures only to the extent that disbursements under new
credits exceed repayments of loans previously made and by the amount of
the administrative costs involved. But whether reflected in the budget or
not, Federal credit programs, both individually and in the aggregate, have
a significant and widely diffused impact on the economy. They influence
the volume of credit extended, the uses for which it is available, and the
interest rate and other terms on which it can be obtained. It is important,
therefore, that the programs be administered in such a way that the burden
which they place on the Federal budget is minimized, consistent with program objectives; that they supplement, rather than compete with, private
credit agencies; and that they make their maximum contribution to the
stability of the economy and to its capacity for sustainable growth.
Federal credit programs could fulfill their statutory objectives and promote the stability and growth of the economy more effectively if the heads
of the various agencies had wider discretionary authority to set the terms
on which funds are available to qualified borrowers under Federal insurance
or guarantee of private loans. Congress should give favorable consideration
to legislation that will accomplish this result. Existing statutory limitations
are sometimes so restrictive as virtually to nullify program objectives. A
prime example is the VA Home Loan Guaranty Program. Because of the
currently uneconomic level of its statutory maximum interest rate, this program has been drastically curtailed before its scheduled expiration date, so
far as new guaranty commitments are concerned. Home mortgage loans
are not currently available from private sources at the statutory maximum
of 4J/2 percent, in view of the higher yields that can be earned on other investments of comparable quality. Other programs that have been seriously
retarded in obtaining necessary financing from private investors include the
armed services housing, rental housing, and management-type cooperative




housing loans insured by the Federal Housing Administration. The National Housing Act should be amended to adjust the interest rate limitations
in Sections 207, 213 and 803, which have become impediments to the intended operation of these programs.
Wider discretionary authority would make it possible to administer programs so as to encourage the use of private funds under loan insurance or
guaranty arrangements, rather than to employ direct public funds. This
would substantially reduce the burden of credit programs on the Federal
budget and eliminate a type of subsidized public competition with private
financial facilities. Also, the use of Federal insurance or guaranty programs, rather than those under which loans are extended directly, should be
encouraged by the Congress through legislation making it explicit that
Federal credit is available directly only when financing cannot be secured
from private sources at reasonable rates.
Proposals will be made for the adjustment of the statutory maximum
interest rates on certain direct loan programs. These adjustments are
needed to reduce the burden which the programs involved place on the
budget and to bring the charges available to qualified borrowers under the
programs into reasonable alignment with rates that must be paid in private
markets.
Much can be done to harmonize the policies of Federal credit programs
with the general economic and credit policies of Government through exchanges of views among Federal credit agencies and other divisions of the
Executive Branch. The Advisory Board on Economic Growth and Stability
provides the nucleus of a group to facilitate interagency consultation on
program policies and practices.
A number of specific proposals relating to housing and home financing
should be enacted by the Congress. These proposals would increase the
availability of funds to prospective home owners and would facilitate the
construction of dwelling units both for sale and for rent. Thus, they would
increase the effectiveness of Governmental programs in improving the
Nation's housing resources.
The requirement that charges, fees, and discounts on federally insured or
guaranteed home loans must be regulated by Government has proved to be
a serious impediment to the free flow of funds into mortgage loan investments. This provision of the Housing Act of 1957 has served in practice
to handicap the families it was designed to protect. It should be repealed.
The Congress should also eliminate the requirement that mortgages
acquired by the Federal National Mortgage Association (FNMA) under its
special assistance programs be purchased at par. This requirement, coupled
with statutory maximum interest rates on insured and guaranteed loans that
are lower than market rates on comparable investments, has forced FNMA
to buy mortgages at unreasonably low yields and in amounts larger than
would otherwise be necessary, with a corresponding burden on the Federal




59

budget. The par purchase requirement tends strongly to discourage private financing at present interest rates.
In view of the increased costs of homes, a proposal will be made to increase to $30,000 the maximum size of loan that may be insured by the Federal Housing Administration (FHA) under Sections 203 and 220 of the
National Housing Act. Favorable action on this proposal will make the
already very useful FHA program even more effective in promoting wider
home ownership and improved housing.
The increasing scale of activities of FHA in the home mortgage insurance
programs will require a higher statutory limit on the amount of outstanding
insured loans. This action should be taken well in advance of the exhaustion of FHA's insuring authority in order to assure the continuity of this
important aid to home financing.
Finally, recommendations will be made to realign Federal, State, and local
relations in the Urban Renewal Program in the light of experience gained
during recent years.
SCIENCE AND EDUCATION

The security and well-being of our people depend upon timely and adequate investment not only in physical structures, equipment, and weapons,
but also in knowledge and skills. Indeed, without satisfactory provision for
the intangible capital accumulated through research and education, it
would be impossible to design, to construct, or to use effectively the implements essential to our survival and progress.
Most of the scientific and educational needs of our dynamic economy are
met routinely. However, new and stern challenges to the security of
the free world, both immediate and long-run, call for greater efforts to
strengthen the technical base of our military preparedness and to improve
the quality of our school system. If we allow a gap to develop and
persist in favor of the communist bloc, our influence in the struggle for
peace may be seriously diminished. Our economy must be able to meet
threats that are subtle and emerging, as well as those that are obvious and
imminent. There is no cause for complacency in the fact that a rival power,
making impressive contributions to science and technology, at the same time
denies its people the common freedoms, adequate housing, and other basic
amenities of life. On the contrary, the ability of a dictatorial regime consistently to subordinate the freedom and welfare of its population to the pursuit of military might and foreign economic penetration is a circumstance
that requires vigilant attention.
Impatience to meet the Soviet challenge in its new dimensions of science
and education should not blind us to the true nature of the threat or induce
us to take inappropriate countermeasures. Our aim is to assure the continuing superiority of the free world's military and economic defenses, and
to retain the confidence of uncommitted peoples. This aim can be
achieved, not by distorting the Nation's scientific programs and educational
system, but by promoting their rapid growth and improvement in needed




6o

directions, without sacrificing either the balance necessary for the rounded
life in a free society or the capacity to meet new contingencies that may
arise.
Above all, it would be unwise and unrealistic to assume that the expanding Soviet challenge can be successfully met merely by enlarging Federal
appropriations. Some additional funds are needed and are being requested.
But it will be even more necessary to enlist the interest and to marshal the
energies of individuals and private groups throughout the Nation. In a free
society, an enlightened public attitude toward science and learning is essential if the quality and capacity of schools, colleges, and universities are to
be improved. Broad remedial action must be taken by citizens, community
organizations, schools, foundations, business firms, labor groups, professional
societies, the press, and State and local governments.
Two Committees appointed by the President have been at work since
April 1956 on problems of technical manpower and higher education. Their
reports deserve the widest possible study.
One report, issued by the President's Committee on Scientists and Engineers in October 1957, emphasizes contributions that can be made by community and other essentially non-Federal programs. It indicates how the
present corps of scientists and engineers may be utilized more effectively
and how young people may be encouraged to prepare for scientific and
engineering careers. It notes the importance of providing adequate technical and clerical assistance to professional workers, raising the quality of education in science and mathematics, and encouraging talented students to
continue their studies. It also proposes measures for elevating the economic
status of teachers, upgrading teacher qualifications, revising school curricula,
providing better guidance and counseling services, improving college facilities, enlarging the contributions of junior colleges and intermediate technical
institutes, and stimulating public interest in education.
The other report, issued by the President's Committee on Education
Beyond the High School in July 1957, makes similar recommendations and
certain additional ones. It stresses the need for making teaching careers
more attractive, proposes assistance to capable students through scholarships and counseling, points to the importance of planning for the expansion and diversification of educational facilities at the college level, suggests modes of financing higher education, and sketches a role it deems
appropriate for the Federal Government in the achievement of these
objectives.
Science and education already receive considerable support from the
Federal Government. Huge sums are devoted annually to research and
development undertakings in many fields, including national defense, atomic
energy, health, agriculture, and mineral resources. These funds, allocated
to basic as well as applied research, benefit thousands of business firms,
private and public institutions of higher learning, and other non-Federal
organizations. As conventionally reckoned, they amounted to $3 bil-




6i

lion in the fiscal year 1957 and will exceed this total by a substantial
amount in the current fiscal year. Moreover, when fuller account is taken
of certain research-connected military expenditures, these sums are more
than doubled. Thus, the funds programmed by the Department of Defense
for the fiscal year 1958 for research and development, according to the usual
definition, amounted to $1.8 billion; but this figure is raised to well over
$5 billion when the definition is broadened to include supplementary items.
Federal encouragement of basic or general-purpose research is exemplified
by the activities of the National Science Foundation, for which substantially
enlarged appropriations are being requested for the fiscal year 1959. This
agency makes grants to universities and other institutions for the conduct of
fundamental investigations in mathematical, physical, medical, biological,
engineering, and other sciences. It aids the training of scientific manpower
through graduate fellowships and science-teacher institutes. It also finances
experimentation to improve science teaching.
The Federal Government assists science and education in many other
ways. It sponsors numerous activities to help establish a civilian atomic
energy industry on a commercial basis. It trains groups to man private
domestic projects and to aid the nuclear programs of friendly nations. The
Defense Department conducts education and training programs that raise
the technical qualifications of in-service personnel. Like research contracts,
military procurement contracts make a large contribution toward raising
the level of skills in the civilian labor force and increasing their variety.
In recent years, the Administration has sought legislation to help State and
local agencies construct elementary and high schools. Although its proposals were not enacted, the effort underscored the national interest in
providing an increasing number of classrooms. First reports for the 1956-57
school year indicate that the rate of construction of school buildings continued at a high level, and that the classroom shortage was reduced. It
is not too early for our people to begin thinking of ways to accommodate
the large numbers of students who will be entering the colleges and universities in the next few years.
Several legislative steps are needed to help improve the Nation's resources
of knowledge and skills. The Congress is being asked to authorize funds
that would be made available on a temporary basis to the States for the
improvement of instruction in science and mathematics, for the identification and encouragement of able high school students through testing and
improved counseling and guidance services, and for college scholarships.
Other provisions of this temporary program include the strengthening of
State departments of education in the fields of science and mathematics,
broader support of graduate education, improvement and expansion of the
teaching of foreign languages in colleges and universities, and improvement
of State statistics on education.
The Congress is requested, as in last year's Economic Report, to authorize
a temporary assistance program for the expansion and modernization of




62

medical and dental teaching facilities. These would complement the
research facilities for which legislative provision has already been made.
In the health field, it is not practicable to separate training from research.
SMALL BUSINESS AND THE COMPETITIVE SYSTEM

The variety of ways in which the Federal Government assists small business concerns is described in a report, "Federal Policies and Programs that
Benefit Small Business," published on September 23, 1957. This report
was prepared by the Cabinet Committee on Small Business, established by
the President in 1956. The Committee's task is to follow the fortunes of
small business concerns and to recommend legislative and administrative
actions that would aid them.
In its First Progress Report, dated August 7, 1956, the Committee made
recommendations in respect of taxation, financing, competition, procurement, technical assistance, and Government reports. These recommendations were described in last year's Economic Report. Those that could
be given effect by the Executive Branch within the framework of present
law—such as the elimination of certain administrative impediments to
Government procurement from small business concerns—have been acted
upon. Other proposals require changes in the law. Such changes were
enumerated and recommended by the President in a letter to the Chairman
of the Committee on Ways and Means of the House of Representatives, dated
July 15, 1957. In the field of taxation, it was recommended that Congress
extend accelerated depreciation formulas to purchases of used property up to
$50,000 in any one year; grant closely held corporations the option to elect
the tax status of partnerships; grant taxpayers the option of paying estate
taxes over periods of up to 10 years where an estate consists largely of investments in closely held businesses; and allow an ordinary loss deduction, up to
some maximum amount, instead of a capital loss deduction, on original
investments in the stock of small companies. A broad reduction of the tax
burden carried by small concerns, whether incorporated or not, cannot be
achieved until budgetary conditions warrant cutting taxes generally. Although such a cut cannot be proposed at present, the changes in our tax
laws outlined above promise to remedy, with a minimum loss of revenue to
the Government, important specific handicaps under which small business
firms now operate, and the Congress is requested to act favorably on them.
The difficulties which small business concerns face in obtaining adequate
financing on satisfactory terms would be lessened by favorable Congressional
consideration of the proposal to increase, from $300,000 to $500,000, the
maximum amount of a corporate security issue that is exempt from the full
registration requirements of the Securities and Exchange Commission. Because of the Commission's power to limit or condition by appropriate rules
the privileges of Regulation A filings, which would be extended by this proposal, this change could benefit small concerns without weakening the
protections for the investor which our securities laws are designed to provide
and which must continue unimpaired.




63

Legislation should be enacted to remove the limitation on the life of the
Small Business Administration (SBA) and to increase suitably its authorization for making business loans and disaster loans. Business loans approved by the SBA totaled about $160 million in the fiscal year 1957. In
addition, SBA helps small concerns obtain procurement awards, and it offers
important management counseling services. This work can be done most
effectively by an agency having assured continuity of functions.
The Board of Governors of the Federal Reserve System is currently engaged in a study which should help assess the adequacy of existing private
facilities for financing small business.
A further means by which Government can promote the proper interests
of small business concerns, and of the community in general, is by eliminating
barriers to open and fair competition. This requires vigorous enforcement
of the antitrust laws. Certain improvements in these laws should be made.
The recommendation has been made in previous Economic Reports that
notice to the antitrust agencies should be required when businesses of significant size that are engaged in interstate commerce propose to merge.
Such a law would facilitate antitrust enforcement by providing an automatic
notification to the responsible agencies of merger plans.
Other measures also are needed to strengthen the administration and
enforcement of the antitrust laws and to foster a competitive environment:
Federal regulation should be extended to bank mergers accomplished
through the acquisition of assets; in antitrust cases, the Attorney General
should be empowered to issue civil investigative demands for the production
of necessary documents without the need of grand jury proceedings; cease and-desist orders issued by the Federal Trade Commission for violations of
the Clayton Act should be macie final unless appealed to the courts; and
the Federal Trade Commission should be authorized, in merger cases where
it believes violation is likely, to seek a preliminary injunction.
Proposals for certain changes in our laws regarding labor-management
relations are made in a later section of this chapter. These proposals would
tend to eliminate practices that are inimical not only to the proper interests
of the community generally, but also to the long-run interests of employees.
Favorable action on these proposals by the Congress would yield significant
benefits to small business concerns.
PERSONAL WELFARE

The primary means by which Government can help improve the welfare
and security of the family and the individual is by following policies that
foster stable economic growth. General prosperity has made it easier in
recent years for our people to acquire homes and other property, and to
protect themselves against the hazards of life through savings and insurance.
The capacity of the economy to provide opportunities for steady employment at good wages is promoted by Federal programs that strengthen labor




standards and help maintain the incomes of older people, of families bereft
of breadwinners, and of persons experiencing unemployment or other severe
personal misfortune. The improvement of these programs along lines set
out in previous Economic Reports is desirable as a means of promoting
general economic stability as well as personal welfare.
The Federal-State programs of unemployment compensation provide a
major defense against- personal hardship and an important means for helping
sustain personal income, and thus consumption expenditures, during periods
of economic readjustment. As pointed out in an earlier section of this
Report, payments to individuals under unemployment insurance systems have
helped significantly to cushion the impact on total personal income of the
decline of wage and salary payments in the closing months of 1957.
The past four Economic Reports have recommended changes designed
to strengthen unemployment insurance systems, and some progress has been
made. More than 43 million people, or 83 percent of all nonagricultural
wage and salary workers, are now covered by unemployment compensation,
compared with only 37 million in 1954. In many States, weekly benefits
have been increased and their duration extended; yet coverage, size of benefits, and duration still fall short of recommended standards. It is again suggested that the States increase maximum benefits so that the great majority
of the covered workers will be eligible for payments equal to at least half
their regular earnings, and that States which have not already done so
lengthen the maximum term of benefits to 26 weeks for every person who
qualifies for any benefit and who remains unemployed that long.
Recommendations made in last year's Economic Report are already pending before the Congress for legislation extending the coverage of unemployment insurance to employees of firms employing under 4 workers and to
employees in Puerto Rico. This important means for sustaining personal
incomes would be strengthened further if the States which have not yet done
so would provide coverage for approximately 5 million State and local
government employees who still lack protection under the system.
Unemployment insurance in the District of Columbia should measure
up to the standards that are recommended for all States and have been
adopted in several. Enactment of legislation to this end is requested.
Workmen's compensation systems, which are mainly the responsibility
of the States, are a second means for safeguarding personal welfare. Occupational accidents result in about 2 million injuries and deaths a year,
bringing tragedy and hardship to individuals and families and needlessly
impairing the Nation's manpower resources. Efforts to develop and enforce adequate safety standards and to encourage safe practices should
be intensified by State and local governments and by employers, and the
States, where necessary, should improve workmen's compensation systems with respect to benefits, administration, and provision for rehabilitation. A special responsibility of the Federal Government in this area
of personal welfare could be discharged more fully if legislation were




65

enacted enabling the Secretary of Labor to prescribe and enforce safety
standards for longshoremen. Enactment of such a law is recommended.
Temporary disabilities not related to the work of employees often result in unusual expenses at the very time that income is cut off. Four
States have insurance programs to deal with this problem, and health
and welfare plans of employers have become increasingly numerous.
Nevertheless, protection against this form of personal hardship is still
inadequate. It is hoped that the remaining State and Territorial jurisdictions will establish programs to provide nonoccupational temporary
disability insurance.
Another major safeguard of personal welfare is provided by the old
age, survivors, and disability insurance programs, which now cover more
than 90 percent of all employed persons in the Nation. The 1954 and 1956
amendments to the Social Security Act extended coverage under these
programs to about 840,000 additional persons, liberalized the provissions
governing the eligibility of older women for benefits, and provided benefits for totally and permanently disabled workers aged 50 or over. These
changes, coupled with the increase in the number of persons eligible for
benefits, account for the increase in payments to an annual rate of $7.2
billion in 1957, from $5.5 billion in 1956. Benefits because of permanent
disability of persons 50 to 64 years of age are now being paid to 140,000
persons at an annual rate of more than $120 million. More than 600,000
women aged 62 to 64 are drawing benefits amounting to about $27 million a
month at recent rates.
Recommendations in last year's Economic Report are already pending
before the Congress for legislation extending the Fair Labor Standards Act
to additional groups of workers needing its protection and to enact the
principle of equal pay for equal work without discrimination on account of
sex. Favorable consideration by the Congress is requested for legislation
to strengthen the Federal 8-hour laws for the benefit of workers subject to
Federal wage standards on Federal and federally assisted construction and
other public works.
Earlier Economic Reports recommended a Federal program to stimulate
sound economic development in areas of persistent unemployment. Legislation previously recommended to provide an Area Assistance Administration in the Department of Commerce, to extend loans, research grants, and
technical assistance to such areas, should be enacted.
Labor-management relations and the trade unions through which workers bargain collectively with employers must be kept free of Government
domination. Nonetheless, Government has a responsibility to maintain a
framework of laws to protect the basic rights of the individual, promote
integrity in labor-management relationships, and make for better industrial
relations. In keeping with this responsibility, a program of legislation is
being proposed to the Congress. This program will require, among other
things, periodic public reports on private employee welfare and pension




66

funds, on financial dealings between employers and employee representatives and their agents, on general union finances, and on union organization
and structure. It also calls for modifications of the law governing secondary
boycotts and picketing, and provides that the States have jurisdiction in
labor-management disputes in which the National Labor Relations Board
declines to exercise authority.
AGRICULTURE

American agriculture is basically strong. The transformation in farm technology has been raising output per man-hour more rapidly in agriculture
than in manufacturing. Family farms remain the dominant form of agricultural operation, and the proportion of farms that are owner-operated has
never been higher. Although the average size of farm is rising, a key feature
of modern technology is that it permits a larger enterprise to be successfully
managed by a farm family. Electricity, the tractor, the automobile, and the
truck have helped to lighten the burden of farm work and to relieve the
isolation of rural living. Recent declines in the number of farms have been
heaviest among those too small to provide an adequate level of living from
agriculture alone. Greater mobility, and the movement of industry into the
countryside, have widened the range of economic opportunities open to rural
people. Farm families have notably improved their levels of living during
the last decade and a half, and this improvement continued even when
income from farming alone was declining.
Many of the Federal programs undertaken on behalf of farm people have
made important contributions to this long-term progress. Gains in agricultural productivity owe much to research and extension services. The
Rural Electrification Administration has played a major role in raising the
proportion of farms having central station electricity service from 11 percent
in 1935 to 95 percent today. A variety of credit facilities have been developed for farm operators; farmers own more than half the capital of the
Farm Credit System and participate extensively in its management. In 1957
farm operators became eligible to receive benefits under old age, survivors,
and disability insurance. The regulation of markets and dissemination of
current market news serve the interests of producer and consumer alike.
However, in three areas especially, farm programs are in need of reconsideration: the disposal of accumulated surpluses, the operation of agricultural price supports, and direct measures of production adjustment.
The high cost of carrying commodity stocks, and the persistent tendency
for current production to outrun commercial demands, continue to require
emphasis on programs for disposal of surplus stocks. During the past several
years, an impressive volume of commodities has been successfully moved into
consumption in this country and abroad. Although constructive ends have
been incidentally served, surplus disposal on a large scale gives rise to serious
dangers. When disposal is made overseas, damage to other exporting
countries is an ever-present risk.




67

The Agricultural Trade Development and Assistance Act of 1954 has
financed a large volume of agricultural exports. It has also furthered our
foreign policy objectives. Title II of the Act has facilitated emergency food
assistance to foreign countries. Sales for foreign currencies under Title I
of the Act have contributed to mutual security and to economic development
programs in underdeveloped countries. Titles I and II should be extended
for one year beyond the current expiration date of June 30, 1958, and the
present limit on permissible expenses and losses of the Commodity Credit
Corporation under Title I should be raised by $1.5 billion. Operations under
this temporary legislation require frequent review. Carry-overs of certain
commodities are already being reduced to levels that raise mandatory price
supports through statutory escalator formulas even while supplies remain
seriously out of balance with commercial requirements. Past and prospective shipments under various surplus disposal measures must not be
allowed to stimulate the production of continuing surpluses.
Measures designed to direct our surpluses into domestic consumption outside commercial channels have also been helpful. Distributions to schools,
institutions, and needy persons, together with direct financial grants for the
school lunch and special milk programs, now amount to about $400 million
a year. The advantages of sustaining milk consumption among children of
school age, especially in low-income communities, are of sufficient importance to warrant the extension of the special milk program beyond the
present expiration date of June 30, 1958.
Government expenditures on agriculture and agricultural resources in
fiscal 1958 are estimated at about $5 billion—about one-quarter of the total
for all purposes other than national security and interest on the public
debt. The figure has doubled since 1954, largely because of mandatory
price-support operations under existing legislation. Through June 30,
1957, direct price support had been extended by the Commodity Credit
Corporation on $3 billion worth of 1956 crops. This was 15 percent below
the previous year's rate, but still involved one-half the rice produced, onethird of the upland cotton, and one-fourth of all wheat. In the past several
years, and despite some reduction in support levels, new price-support acquisitions have been running about 20 percent as large as total farm marketings of all price-supported commodities. Losses realized in disposing of
commodities during the fiscal years 1955-57 totaled $4 billion, chiefly from
operations in wheat, dairy products, cotton, and corn.
In a statement to the Chairman of the Senate Committee on Agriculture
and Forestry on May 2, 1957, the Secretary of Agriculture made three key
points: production controls have been ineffective in reducing over-all agricultural output; abundant agricultural products cannot successfully be
priced as if they were scarce; and present legal formulas governing price
supports and acreage allotments are proving obsolete. In view of agriculture's advancing productivity and the importance of enlarging commercial
markets, changes are required in the method of determining price supports




68

on basic crops and dairy products. The rigid escalator formulas governing
price supports at levels between 75 and 90 percent of parity, should be eliminated. Price supports for wheat, corn, cotton, rice, tobacco, peanuts, and
dairy products should be determined administratively, within a range of
from 60 to 90 percent of parity, in accordance with guidelines already
established by law for almost all other agricultural commodities. It is also
recommended that the National Wool Act be extended beyond March
31,1959.
The achievement of statutory price objectives has been premised on appropriate adjustments of output by growers. Yet there is little support, among
farmers or in the Congress, for controls that would be severe enough to
implement current price objectives, except possibly for tobacco. Acreage
allotments for corn have become largely inoperative and should be eliminated. Within the limits of general statutory principles, the Secretary
should be given discretionary authority to increase allotments of other basic
crops now governed by legal formulas.
The Acreage Reserve Program has temporarily contributed to a reduction
of output of certain crops, by voluntary means, without loss of net income
to growers but at a high cost to the Treasury. This Program should be permitted to expire at the end of the 1958 crop season. Longer-term contracts
under the Conservation Reserve Program promise to be more useful in promoting agricultural adjustments and the conservation of natural resources.
If we are to avoid moving toward tighter restraints on production, it is
imperative that the stimulus to current output should be less than that now
supplied by various Government programs. At the same time that the
Conservation Reserve Program is strengthened, consideration should be
given to further consolidation of the Federal Government's widespread activities in soil and water conservation.
The Commodity Credit Corporation Advisory Board should be enlarged;
its members should require confirmation by the Senate; and its powers should
extend to advising the Secretary of Agriculture in the exercise of the wider
discretionary authority requested for determining both acreage allotments
and price support levels, as well as related matters.
The Commission on Increased Industrial Use of Agricultural Products,
appointed pursuant to Public Law 540 of the 84th Congress, made a number
of useful suggestions for widening the markets for existing farm products
and for developing new crops. While unrealizable hopes must be guarded
against, more funds can usefully be diverted to research and promotion in
this area within the limits of present statutory authority and without the
creation of a new administrative agency in the Executive Branch.
The Federal Government assumes certain responsibilities in assisting
farm people who are hit hard by natural disaster and those who are handicapped by chronically low incomes. Although drought in the Great Plains
is no longer a matter of immediate concern, important recommendations
conveyed in the Presidential Drought Message of March 5, 1957 should be




69

implemented at an early date. In particular, the distribution formula
under Title I of the Bankhead-Jones Act should be revised so as to permit
allocation of a larger amount of loan funds to areas in acute need; and
States should be required to contribute at least 25 percent of disaster-relief
costs in certain emergency programs.
The Rural Development Program is a long-range program. It enlists private and public cooperation to raise levels of living in low-income rural areas.
Among these efforts are improved vocational education, more effective employment and public health services, and the encouragement of local industrialization as well as better farming. The soundness of this approach is
widely accepted and the results being attained warrant continued support
of this program by the Congres, but it requires no new legislation at this
time.
FOREIGN ECONOMIC POLICY

Now more than ever the United States must ensure that its foreign economic policy is soundly conceived in the interest of the Nation as a whole
and is adequate to the changing needs of the times. Gratifying gains
have already been achieved in the scope and freedom of international trade
and financial transactions. Important legislative steps remain to be taken
in the field of foreign economic policy if we are to deal successfully with the
problems confronting us.
The keystone of our foreign trade policy is the Trade Agreements Act,
shortly up for renewal. Under that Act, as extended from time to time
by the Congress, trade barriers against United States goods have been reduced
on a wide front. The most important results are embodied in the General
Agreement on Tariffs and Trade, to which 37 countries accounting for
more than 80 percent of world trade are now signatories. Through the
General Agreement we have secured conditions conducive to the increase of
our exports. We have succeeded not only in reducing tariffs against our
goods but also, owing in large part to the multilateral obligations provided by
the General Agreement, in greatly reducing the quantitative controls abroad
which were so prevalent before and, for a time, after the war.
While the national interest demands a growing two-way flow of trade,
certain recognized safeguards have been established. These include "escape
clause" relief for industries which have experienced, or are threatened
with, serious injury as a result of tariff concessions on imports. To assist
him in the consideration of Tariff Commission investigations in such cases,
and to advise on the administration of the trade agreements program generally, the President has established the Trade Policy Committee at the Cabinet
level with the Secretary of Commerce as Chairman.
The preservation and extension of the benefits obtained from widening
the channels of world trade will depend heavily on the direction taken by
American trade policy in the next year. The decisions made will have a
significant bearing on the economic fortunes and policies of our trading




70

partners, and particularly on the success of the steps being taken toward
closer integration in Western Europe through the Common Market now
starting among six countries and through the Free Trade Area under negotiation for the region as a whole. It is basic to our interests and to those of
the larger community of nations that these ne,w groups pursue policies favoring the expansion of international trade and that they contribute effectively
to the economic growth and unity of the free world.
To meet these needs, three major elements are required in our trade
agreements program. First, the Trade Agreements Act should be extended
for five years from the date of its expiration on June 30, 1958. This action
would confirm our continued adherence to the principles which the Act
embodies, and would enable the United States to carry on necessary negotiations in behalf of our export trade during the crucial formative period which
lies ahead in Western Europe.
Second, additional authority is needed to make tariff concessions to enable
us to conduct trade negotiations successfully. Congress will be requested
to authorize the reduction of any duty existing on July 1, 1958, by 5 percent
per year over a 5-year period, or by an equivalent total amount in not less
than three stages with a maximum of 10 percent in any one year. The
President would also be authorized, alternatively, to reduce any rate of duty
by 3 percentage points ad valorem, without any yearly reduction exceeding
1 percentage point, or to reduce any rate to 50 percent ad valorem, if the
existing duty is in excess of that amount, without any yearly reduction exceeding one-third of that difference. The negotiation of tariff reductions would
remain subject to the safeguards now in the Act, and additional safeguards
would be provided to permit prompter and more effective relief to domestic
industries through escape clause proceedings.
Third, we need a formally constituted center to serve as the administrative
organ for the General Agreement. Such a center would provide a more effective means for reviewing developments affecting trade and for considering
disputes arising out of undertakings among signatories to the General Agreement. The Congress is requested to help constitute this center by enacting
legislation authorizing United States membership in the Organization for
Trade Cooperation.
In addition to the trade agreements program, the Congress will have
before it certain other measures relating to our foreign trade. These include
the extension of the Export Control Act, which expires on June 30 of this
year; bills amending certain provisions concerning customs administration
in the Tariff Act of 1930; and amendments to the Antidumping Act of 1921,
designed to improve the administration of the Act, which have been approved by the House of Representatives and are awaiting action by the
Senate. Favorable action is needed on all of these measures.
The various measures of United States assistance to, and cooperation
with, other countries have played a significant role in strengthening national




economies abroad. Direct United States Government loans and grants and
the investment guaranty program have assisted economic recovery and development abroad since the war. United States expenditures overseas for military and other purposes have increased the foreign exchange resources of
many countries. Technical assistance to foreign countries has been provided
by the United States, both through our own bilateral programs and through
the United Nations. Some of the largest agreements under Public Law 480
have benefited industrially less-developed countries.
Much assistance has also been obtained from private sources and international agencies. Private capital has been invested abroad in increasing
volume, carrying with it the benefit of American managerial and technical
experience. Public and private funds have been channeled through the
International Bank for Reconstruction and Development and its affiliate,
the International Finance Corporation. The International Monetary Fund
has played a key role in helping countries take actions to strengthen their
currencies and in assisting them to overcome temporary foreign exchange
difficulties.
Our Mutual Security Program is designed to strengthen the nations whose
independence and welfare are essential to our own. This calls not only for
military assistance but for economic support also, since some countries cannot, without such support, make the military effort needed in the common
interest. Further, it would be illusory to aim only at strengthening military
security in a narrow sense. A large part of the world's population—the most
rapidly growing part—has so far experienced little improvement in material
welfare. Many of these peoples are now emerging into political independence, and we should not lose the opportunity, through appropriate programs
of assistance, to strengthen their confidence in the possibilities of economic
growth under free institutions. Some other highly developed countries are
able to participate in this endeavor. An additional reason for welcoming the
new moves toward greater economic integration in Western Europe is that
they should increase the foreign resources available for this purpose.
For the fiscal year 1959, an additional appropriation will be required for
the Development Loan Fund which was authorized in 1957 to facilitate
financing economic development projects in underdeveloped countries. The
amount that will be requested is needed to permit effective operation of the
Fund. Appropriations requested for technical assistance will include an
increase in our contribution to the United Nations program in this field.
An increase is being requested in the lending authority of the Export-Import Bank. The Bank's activities in financing exports are directly helpful in
promoting production and employment in the United States economy as
well as in assisting the economic development of foreign countries. The
Bank has the widespread support of our banking and foreign trade communities, and its funds are often loaned jointly with private capital, thus
reducing the demand for public funds.




FEDERAL ECONOMIC STATISTICS

A well-coordinated system of Federal statistics is essential for recording
the Nation's economic activity, correctly appraising its economic performance, and formulating appropriate public and private policies. Such a
statistical system must provide timely and reasonably complete information
on economic trends and interrelations. It must have continuity and be
sufficiently flexible to take account of the changes that characterize a
dynamic economy.
Taken as a whole, Federal economic statistics are good; but in view of the
public and private needs for more and better information, numerous deficiencies in them should be remedied. Accordingly, the Congress will be
asked to provide funds for the fiscal year 1959, for the first step of a program
intended to make our economic information more nearly adequate to our
growing and changing requirements. This first step is described in Appendix
C to this Report. In designing it, use was made of the special studies prepared over a number of years by university, business, labor, Government, and
other experts. The work of the Subcommittee on Economic Statistics of the
Joint Economic Committee of the Congress has been especially helpful. The
additional funds requested are small in comparison with the total cost of
present statistical programs. Yet with these funds a significant contribution can be made toward improving existing statistics and filling gaps in our
knowledge of the workings of our economy.




73




Appendix A

SUMMARY OF RECOMMENDATIONS IN
THE ECONOMIC REPORT OF
THE PRESIDENT




75




Summary of Recommendations in the Economic
Report of the President
Including Recommendations to the Congress and Suggestions
to the States and Local Governments
I. GOVERNMENT FINANCES

a) Extend the present tax rate on the income of corporations and the present
excise rates on automobiles and parts, cigarettes, distilled spirits, wines,
and beer for one year beyond July 1, 1958. [Page 57]
b) Enact legislation temporarily increasing the statutory debt limit.
[Page 57]
See also Recommendation IV (a).
II.

FEDERAL CREDIT PROGRAMS

a) Grant wider discretionary authority to heads of Executive agencies and
departments to set terms on private loans insured or guaranteed by the
Federal Government. [Page 58]
b) Adjust interest rate limitations on certain FHA loan insurance programs
(National Housing Act, Sections 207, 213, and 803) and on the VA
Home Loan Guaranty Program. [Pages 58-59]
c) Repeal the provisions of the Housing Act of 1957 requiring regulation
of charges, fees, and discounts on federally insured or guaranteed home
loans and the purchase of mortgages at par by the Federal National
Mortgage Association under its special assistance programs. [Pages
59-60]
d) Increase to $30,000 the maximum size of home mortgage loan that may
be insured by the Federal Housing Administration under Sections 203
and 220 of the National Housing Act. [Page 60]
e) Increase the limit on outstanding insured loans of the Federal Housing
Administration. [Page 60]
III.

SCIENCE AND EDUCATION

a) Provide funds on a temporary basis for grants to States to improve
instruction and to strengthen State departments of education in the
fields of science and mathematics, to identify and encourage able high
school students, to provide college scholarships, and to improve
State statistics on education; and funds for broader support of
graduate education and the improvement and expansion of foreign language teaching in colleges and universities. [Page 62]




77

b) Authorize a temporary program of assistance for the expansion and
modernization of medical and dental teaching facilities. [Pages 62-63]
IV.

SMALL BUSINESS AND THE COMPETITIVE SYSTEM

a) Amend the tax laws to extend accelerated depreciation formulas to
purchases of used property up to $50,000 in any one year; to permit
closely held corporations the option of electing the tax status of partnerships; to grant taxpayers the option of paying estate taxes over periods
of up to 10 years where estates largely consist of investments in closely
held businesses; and to allow losses on original investments in the stock
of small companies to be treated as ordinary loss deductions rather than
capital loss deductions. [Page 63]
b) Permit the Securities and Exchange Commission to apply its simplified
notification procedure to security issues in amounts up to $500,000.
[Page 63]
c) Remove the limitation on the life of the Small Business Administration
and suitably increase its authorization for making business and disaster
loans. [Page 64]
d) Require notification to the antitrust agencies of proposed mergers by
businesses of significant size engaged in interstate commerce. [Page 64]
e) Extend Federal regulation to bank mergers accomplished through the
acquisition of assets. [Page 64]
f) Empower the Attorney General in antitrust cases to issue civil investigative demands for the production of necessary documents without the
need of grand jury proceedings. [Page 64]
g) Make Federal Trade Commission cease-and-desist orders issued for
violations of the Clayton Act final, unless appealed to the courts.
[Page 64]
h) Authorize the Federal Trade Commission to seek preliminary injunctions in merger cases where a violation may be likely. [Page 64]
V. PERSONAL WELFARE

a) Amount and duration of unemployment insurance benefits; coverage
of firms with one to three persons on their payrolls; coverage of employees in Puerto Rico; coverage of State and local government employees. (State and Federal responsibility) [Page 65]
b) Bring the unemployment insurance provisions applicable to workers in
the District of Columbia up to the standards recommended for the States.
[Page 65]
c) Intensify efforts to develop and enforce adequate occupational safety
standards and to encourage safe practices. (State and local responsibility) [Page 65]
d) Improve workmen's compensation laws with respect to benefits, administration, and provisions for rehabilitation. (State responsibility)
[Page 65]




78

e) Authorize the Secretary of Labor to prescribe and enforce safety standards
for longshoremen. [Pages 65-66]
f) Provide nonoccupational temporary disability insurance for employees
in States and Territorial jurisdictions where programs have not been
established. (State and Federal responsibility) [Page 66]
g) Minimum wage legislation covering certain additional groups of workers; equal pay for equal work without discrimination on account of sex.
[Page 66]
h) Improve the 8-hour laws applicable to Federal and federally assisted
construction projects. [Page 66]
i) Establish an Area Assistance Administration in the Department of Commerce to extend loans, research grants and technical assistance in areas
of persistent unemployment. [Page 66]
j) Require periodic public reports on the status of private employee welfare and pension funds, on financial dealings between employers and
employee representatives or their agents, on general union finances, and
on union organization and structure. [Pages 66-67]
k) Modify the law governing secondary boycotts and picketing, and provide that the States have jurisdiction in labor-management disputes in
which the National Labor Relations Board declines to exercise authority.
[Page 67]
VI.

AGRICULTURE

a) Extend Titles I and II of the Agricultural Trade Development and
Assistance Act of 1954 for one year beyond June 30, 1958, and raise the
present limit on permissible expenses and losses of the Commodity
Credit Corporation under Title I by $1.5 billion. [Page 68]
b) Continue the special milk program beyond June 30, 1958. [Page 68]
c) Eliminate the escalator clauses governing price supports on basic commodities under the Agricultural Act of 1949. [Pages 68-69]
d) Authorize price supports for wheat, corn, cotton, rice, tobacco, peanuts,
and dairy products to be determined administratively, within a range
of from 60 to 90 percent of parity, in accordance with guidelines already
established by law for almost all other agricultural commodities.
[Page 69]
e) Extend the National Wool Act beyond March 31, 1959. [Page 69]
f) Eliminate acreage allotments for corn and provide discretionary authority to increase allotments of other crops. [ Page 69]
g) Permit the Acreage Reserve Program to expire at the end of the 1958
crop season; strengthen the Conservation Reserve Program; and consider
further consolidation of Federal activities in soil and water conservation.
[Page 69]
h) Enlarge the Commodity Credit Corporation Advisory Board and assign
it the role of advising the Secretary of Agriculture in the exercise of the
wider discretionary authority requested in VI (d) and VI (f). [Page
69]




79

i) Revise the distribution formula under Title I of the Bankhead-Jones
Act to permit the allocation of a larger amount of loan funds to areas
of acute need, and require States to contribute at least 25 percent of
disaster-relief costs in certain emergency programs. [Page 70]
VII.

FOREIGN ECONOMIC POLICY

a) Extend the Trade Agreements Act for 5 years beyond June 30, 1958;
permit the reduction of any duty existing on July 1, 1958 by 5 percent
per year over a 5-year period, or by an equivalent total amount in not
less than three stages with a maximum of 10 percent in any one year; also
permit, alternatively, the reduction of any rate of duty by three
percentage points ad valorem without any yearly reduction exceeding
one percentage point, or the reduction of any rate to 50 percent
ad valorem, if the existing duty is higher than that amount, without
any yearly reduction exceeding one-third of that difference; and
authorize United States membership in the Organization for Trade
Cooperation. [Page 71]
b) Extend the Export Control Act beyond its expiration on June 30, 1958;
amend certain customs administration provisions in the Tariff Act of
1930; and approve amendments to the Antidumping Act of 1921 to
improve its administration. [Page 71]
c) Provide funds for the Development Loan Fund to finance economic
development projects in underdeveloped countries, and for technical
assistance under the United Nations program. [Page 72]
d) Increase the lending authority of the Export-Import Bank. [Page 72]
VIII.

FEDERAL ECONOMIC STATISTICS

a) Provide funds for the improvement of Federal economic statistics
programs. [Page 73]




8o

Appendix B

REPORT TO THE PRESIDENT ON THE
ACTIVITIES OF THE COUNCIL
OF ECONOMIC ADVISERS
DURING 1957




81




Letter of Transmittal
DECEMBER 23,
The

1957.

PRESIDENT.

SIR: The Council of Economic Advisers submits this Annual Report for
calendar year 1957 in accordance with the requirements of Congress, as
set forth in Section 4 (d) of the Employment Act of 1946.
Respectfully,
RAYMOND J. SAULNIER^ Chairman.




JOSEPH S. DAVIS.
PAUL W. MCCRACKEN.




Report to the President on the Activities of the Council of
Economic Advisers During 1957
The past year has been marked by important economic developments, in
both the United States and the rest of the world. The rise in the consumer
price index, which had begun early in 1956, was perhaps the center of interest. But with inflationary pressures substantially reduced by the middle
of the year, attention shifted to the completion of adjustments within the
economy on the basis of which growth with reasonably stable prices might
be extended into the future. The progress of these developments and their
implications for Government policy have been under continuous review by
the Council.
Council Activities
The principal responsibility of the Council of Economic Advisers is to
review and analyze developments in the United States economy and elsewhere in the world, and to evaluate their policy implications. Reports on
these matters are made frequently to the President by the Chairman of the
Council. The Chairman performs a similar function for the Cabinet.
A second responsibility of the Council is to review legislative proposals,
and suggestions for administrative actions, for their possible effect on the
stability of our economy and its capacity for balanced and sustainable
growth. During the year, a large number of such proposals were reviewed
by the Council.
Numerous other activities of the Council grow out of its membership in
continuing or ad hoc committees. Among these are the Council on Foreign
Economic Policy; the Defense Mobilization Board and the Emergency Resources Board; the Cabinet Committee on Small Business, of which the
Chairman of the Council serves as Chairman; the ad hoc committee established in September 1957 by the Secretary of the Treasury for consideration
of credit and related policies; and the Committee for Rural Development
Program. Members of the staff have represented the Council on several
technical interagency committees, including groups concerned with productivity measurements, health surveys, population and housing censuses, rural
development, and employment statistics.
The Council cooperates with the Organization for European Economic
Cooperation (OEEC) in its economic surveys and with the International
Cooperation Administration (ICA) in its training programs for foreign
specialists. During the year, the Council prepared a Survey of Economic




Developments in the United States for the annual review of the OEEC,
and materials for response to the United Nations' annual questionnaire. A
Council Member, assisted by a member of the staff, participated in the
annual review of economic conditions conducted by the OEEC in Paris
in September 1957. The Chairman attended a meeting of OEEC economic experts in October. Throughout the year, two staff members met
frequently with ICA study teams.
The Council conferred frequently during the year with groups outside
the Government. These groups included experts from universities and
representatives of labor, agricultural, business, and financial organizations.
The Council assists the President each year in the preparation of the
Economic Report which he transmits to the Congress. The Report reviews economic developments, assesses the outlook, and makes recommendations to the Congress and suggestions to States, communities, and private
groups for actions and policies designed to achieve the goals set forth in
the Employment Act. The Report is widely used as an authoritative
review of developments in the United States economy; 35,000 copies of
the January 1957 Report were published.
The Council also prepares Economic Indicators, & monthly compendium
of current economic statistics, published by the Joint Economic Committee
of the Congress. Copies of Economic Indicators are distributed to members
of the Congress and to depository libraries; in addition, 6,500 copies are
sent monthly to paying subscribers.
Council Membership
The Council has three members, appointed by the President and confirmed by the Senate. Raymond J. Saulnier has served as a member of
the Council since April 4, 1955 and as Chairman since December 3, 1956.
Joseph S. Davis has served as a member since May 2, 1955, and Paul W.
McCracken since December 3, 1956.
Council Staff
The Council is assisted by a staff of 27 persons of whom 12 are senior
economists selected for their skill and judgment in the objective analysis
of economic problems. Each senior staff member is assigned an area for
special attention and is responsible for eliciting the cooperation of Government agencies and business, labor, and other private groups in analyzing
and evaluating economic developments. Most senior staff members are
permanent employees of the Council; some are on leave of absence from
university posts; others serve the Council on a consulting basis. Present
members of the senior staff, including consultants, are Henry W. Briefs,
Samuel L. Brown, Robert C. Colwell, Frances M. James, Marshall A.
Kaplan, Hal B. Lary, David W. Lusher, Charles L. Schultze, Irving H.
Siegel, Collis Stocking, Boris C. Swerling, and Philip E. Taylor.




86

Advisory Board on Economic Growth and Stability
Continuous assistance is received by the Council from the Advisory Board
on Economic Growth and Stability, established by the President in 1953.
The Board consists of policy-making officials of departments and agencies
that have responsibility for important economic programs. The Chairman
of the Council serves as Chairman of the Advisory Board. The present
members of the Board are as follows:
Department of State—Thomas C. Mann, Assistant Secretary for
Economic Affairs
Department of the Treasury—Julian B. Baird, Under Secretary
Department of Agriculture—True D. Morse, Under Secretary
Department of Commerce—Walter Williams, Under Secretary
Department of Labor—James T. O'Connell, Under Secretary
Department of Health, Education, and Welfare—John A. Perkins,
Under Secretary
Board of Governors of the Federal Reserve System—Abbot L. Milk
Member of the Board
Bureau of the Budget—Percival F. Brundage, Director
The White House Office—Gabriel Hauge, Special Assistant to the
President
Council of Economic Advisers—Raymond J. Saulnier, Chairman
Budget for Fiscal Years 1957 and 1958
For the fiscal year 1958, the Congress appropriated $375,000 for the
Council's activities. Contributions to the Government Retirement Fund,
not previously required of Federal agencies, accounted for the increase
from the $365,700 appropriated for the fiscal year 1957.







Appendix C
PROGRAM FOR IMPROVING FEDERAL
STATISTICS IN FISCAL YEAR 1959







Program for Improving Federal Statistics
in Fiscal Year 1959
Proposals for a significant step toward a more balanced and better integrated Federal statistics program are made in the budget for the fiscal year
1959. These proposals take account of the findings of special studies made
in the past several years by university, business, labor, and other experts, together with Government technicians, and of extensive studies by the Subcommittee on Economic Statistics of the Joint Economic Committee of the
Congress. Further steps should be taken in the fiscal year 1960 and thereafter, to carry into effect long-range plans for improving the scope and
usefulness of Federal statistics.
IMPROVING SYSTEMS OF NATIONAL ACCOUNTS

Some of the requested funds would be devoted to bolstering the best known
of the integrated national accounts—the system of statistics relating to
national income and national product. Attention would also be directed
toward improving other sets of national accounts that are valuable for the
study of economic interrelations.
Statistics on National Income and Product
National income and product statistics are the most highly developed,
widely used, and current of our economic accounts. Four projects are contemplated for the fiscal year 1959:
(1) Preparation and publication of quarterly estimates of gross national
product and its major components, adjusted for price changes. The price
data needed for this work would also be improved.
(2) Initiation of the measurement in constant dollars of net output
for several major industry groups and for selected components of manufacturing. This will require the improvement of industry input data and of
product price and quantity information.
(3) Initiation of work on an accounting of interindustry flows for 1958
(see below) for the major economic sectors identified in national income
and product accounts.
(4) Establishment of a small research staff for work on problems of concept and estimation which cannot be adequately pursued by statisticians
fully occupied with the preparation of current statistics, and for exploration
of the interrelationships among the several types of economic accounts.




International Balance of Payments Accounts
These accounts, which assemble all transactions involving payments
between the United States and foreign countries, enter national product
estimates through the "net foreign investment" component. The 1959 program includes provision for beginning a comprehensive survey of United
States direct private investments abroad.
Statistics on Savings
Plans for improving the data needed to estimate national savings are well
under way, and definitive quarterly statistics on savings should become available by late 1959. Methods are already being developed for dovetailing
savings and flow-of funds accounts (see below) with other types of national
accounts.
Flow-of-Funds Accounts
Accounts showing the flow of funds corresponding to transactions between sectors of the economy are valuable for current analysis of financial
flows. In addition to transactions that originate income, they include transactions in existing assets. Major improvements in the quality of the basic
data are needed.
Sector Balance Sheet Accounts
Balance sheets should be developed to permit the study of the allocation
of resources to the various industrial sectors, and of intersector claims.
The flow-of-funds accounts, which show outstanding financial assets and
liabilities for each sector, provide only partial balance sheets. Although no
provision is made in the 1959 budget for the development of sector balance
sheet accounts, they should eventually be included among, and integrated
with, other types of national accounts.
Interindustry Accounts
Interindustry accounts are designed to show for a given period, through
so-called input-output tables, the flow of goods and services between industries and to households. When constructed in detail, they are especially
valuable for economic and technological analyses, market and investment
planning by business firms, and mobilization planning by Government. The
1959 budget proposes initiation of an accounting of flows between major
industry groups in 1958.
Broad Productivity Estimates
The development of estimates of real product originating in broad
industry groups, proposed in the 1959 budget, would make it possible to
derive consistent estimates of labor productivity for the economy as a whole
and for the major industrial divisions. These estimates would be made in
addition to measures for narrowly defined industries based on other available production data. On the input side, the chief immediate need is for
improvement of data on employment and average hours worked in the




various divisions. Improvements in this direction too are contemplated in
the 1959 budget proposal.
IMPROVING DATA FOR ECONOMIC ANALYSIS

Economic censuses provide comprehensive benchmark data that are essential for the analysis of industrial and regional developments and for the
interpretation and adjustment of current statistics derived from interim
surveys that are less complete than census reports. Several censuses covering 1958 are scheduled for 1959. Many improvements are planned in the
scope of census data and in the variety and quality of statistics derived from
other sources.
Census of Business
Margin and value-added data.—Data on retail margins are essential for
establishing benchmarks in the national income accounts for expenditures
on personal consumption and for investment in producers' durable goods.
They are also necessary for constructing interindustry accounts. Collection
and tabulation procedures for the Census of Business are expected to yield
measures of "value added" in distribution, which would provide a basis for
better estimates of trade margins.
Plant and equipment expenditures data.—On the basis of data to
be provided by the 1958 Census of Business, estimates would be made of
plant and equipment expenditures by retail trade, wholesale trade, and service trade establishments.
Annual surveys.—The 1959 budget program would also provide for developmental and preparatory work for later annual surveys of wholesale
trade and selected services. Procedures would be devised for the future
compilation of detailed sales or purchase data of commodities at wholesale,
comparable with sales or shipments data obtained in the Census of Manufactures.
Census of Manufactures
Use of materials, products, and durable equipment.—Data showing the
consumption of materials by individual industries are desirable for studying
commodity flows throughout the economy and for mobilization planning.
The 1958 Census of Manufactures will provide statistics on industrial
purchases of producers' durable equipment.
Distribution of manufacturers3 sales.—Information on the distribution of
manufacturers' shipments by class of customer, including shipments to the
Government, would also contribute to better estimates of commodity flow.
Plans for the 1958 Census of Manufactures call for the collection of sales
data by class of customer.
Census of Mineral Industries
The 1958 Census of Mineral Industries will have essentially the same
scope as the 1954 Census. The inauguration of annual surveys of mineral




93

industries, analogous to those for manufactures, is planned; the first survey
would refer to 1959 operations.
Employment and Hours Statistics
Estimates of man-hour productivity would be improved by changes contemplated in reports by establishments on hours of work. The 1959 program calls for the collection of information on hours worked, as well as on
hours paid for, in manufacturing industries, and for the collection of data
relating to so-called "nonproduction workers" in these industries. It also
calls for the collection of data on hours for selected nonmanufacturing
industries not now covered.
Price Statistics
Prices paid by the Government.—A major limitation of price statistics
from the standpoint of national accounting is the lack of data on prices paid
for goods, especially defense items, by the Government. Systematic efforts
toward the preparation of appropriate price indexes in this field will be made.
Wholesale and retail prices.—Many durable goods and various services
are not covered by existing price indexes. Plans for 1959 include the expansion of data on prices in primary markets and at retail. This expansion
would improve current business indicators and lead to better estimates of
real output, productivity, and inventories in constant prices.
Construction Statistics
The development of a sound, comprehensive program of construction
statistics will require several years. The budget proposed for 1959 includes
surveys designed to improve estimates of construction activity, including
"additions and alterations" and "repairs and maintenance."
Plant and Equipment Expenditures
Two recommendations for improvement of data on plant and equipment
expenditures are included in the 1959 program. First, in the 1958 Census
of Business, data would be obtained from wholesale trade, retail trade, and
service trade establishments. Second, the collecting agencies for the current
Plant and Equipment Expenditures Survey would renew efforts to obtain
separate information for plant and for equipment.
Producers' Durable Equipment
Efforts would be made under the 1959 proposal to remedy the chief
deficiencies in statistics on equipment. In the 1958 Census of Manufactures, as already noted, data on manufacturers' sales of producers' durable
equipment will be compiled by class of customer and type of equipment
purchased. The collection of more detailed sales data by industry, in the
Monthly Industry Survey, would permit improvement of the quarterly
estimates of investment in producers' durable equipment.




94

Inventories
Separate stage-of-fabrication estimates are to be developed for all major
industry groups in manufacturing and for significant subgroups. For selected subgroups, the estimates of inventories of finished goods would be
subdivided into producers' equipment and consumer goods. Information
is still needed on the proportion of manufacturers' inventories that is related
to defense production. Improvements are planned in the monthly estimates
of retail trade inventories by major "kind of business." Estimates would
be provided for a limited number of commodities at both retail and
wholesale levels.
Manufacturers' Sales, Inventories, and New Orders
Refinement of company data supplied in the Monthly Industry Survey
and revision and enlargement of the sample would lead to better current
economic indicators on manufacturers' sales, inventories, and new orders.
Provision is made in the 1959 budget for these improvements.
Service Trade Receipts
Statistics on monthly receipts of service trades—such as hotels, barber
and beauty shops, and auto-repair shops—are not available. A project to
improve the estimates for selected service trades is included in the 1959
budget proposal.
Consumer Credit
The 1959 budget proposal includes the collection of monthly information
on accounts receivable from a sample of retail trade establishments. This
information would strengthen present estimates of consumer credit outstanding.
Corporate Profits and Income of Unincorporated Enterprises
Corporate profits.—The Business Indicators Series has been initiated to
provide preliminary estimates derived for selected items from income tax
returns within a year after the returns are filed. The 1959 budget proposes
that this work be continued on a regular basis. Among other improvements
that are essential is a regular Audit Control Study, preferably made once
every five years, to provide factors for adjusting profits in the unaudited tax
returns used in benchmark tabulations.
Current financial data on nonmanufacturing firms, by size, are not now
available. The 1959 budget proposal calls for extension of the present
Quarterly Financial Report program to include both small and large corporations in trade and mining industries.
Nonfarm unincorporated enterprises.—Selected income and balance-sheet
items for sole proprietorships and partnerships, the dominant forms of
"small business," would be tabulated annually as part of the Business Indicators Series. Data on sole proprietorships and partnerships should also be
included in plans for the Audit Control Study, referred to above.




95

Attention is being directed to the need for accurate measures of monthly
and quarterly changes in profits of unincorporated business. Consideration
will also be given to the feasibility of regularly constructing financial reports
from accessible operating information.
Survey of Farm Operators
After the Census of Agriculture for 1959 is completed, an annual sample
survey of farm operators should be initiated to provide data on farm income,
off-farm income, and farm production expenditures. The sample should
make possible estimates for at least three categories—large commercial
farms, small commercial farms, and all other farms.
State and Local Governments
The 1959 budget proposal includes the preparation of a quarterly report
on State and local government finances, including revenues, capital outlays
and current expenditures, indebtedness, and financial assets.







Appendix D
THE CONSUMER PRICE INDEX

97




The Consumer Price Index
Considerable public interest has been focused on the consumer price index
as an indicator of price trends in the consumer sector of the economy, and
because of its extensive use in wage adjustments. To afford a better understanding of the index, this Appendix briefly describes its essential features,
some of the problems connected with its computation, and its limitations and
uses.
CONSTRUCTING THE INDEX

The consumer price index in roughly its present form was first published
by the United States Bureau of Labor Statistics (BLS) in 1921, and covered
the period extending back to 1913. The last major revision was in 1953.
The present index is designed to measure changes in the prices of goods
and services commonly purchased by wage-earner and clerical-worker families living in the 3,000 towns, cities, and suburbs of the United States that
had a population of 2,500 or more in 1950. In general, the only families
included are those whose major sources of income are earnings of craftsmen, factory workers, laborers, clerks, and sales and service workers. This
group of families comprises about 64 percent of the urban, and 40 percent
of the total, population.
An over-all consumer price index is published and also various subgroup
indexes. The most familiar groupings are those in which commodities and
services are classified by their end use, e. g., food, apparel, housing, reading
and recreation, etc. More recently, the BLS has been publishing monthly
what might be termed an "economic" classification: all commodities; all
commodities other than food; durable goods; nondurable goods; and services. It also publishes indexes for three major groups: (1) food, (2) commodities other than food, and (3) services. As of December 1956, each
of these three categories was of roughly equal relative importance in the
index—29, 37, and 34 percent, respectively.
In essence, the consumer price index measures changes in the price of
a fixed "market basket" of goods and services chosen to represent the customary spending pattern of wage-earner and clerical-worker families. In
the computation of the index, prices of individual items or groups of items
are assigned specific weights, based on their relative importance in the average family budget for a survey year. The price changes from the base period
(1947-49) for all of the items, appropriately weighted, are then combined
into the consumer price index—which expresses the change in the price of the




99

total market basket since the base period. There are thus two major elements in constructing the index: the prices of the specific goods and services
included and the weights assigned to them.
Prices
The prices used in computing the index are obtained at 46 urban sampling points, selected as representative of the entire urban portion of the
country. Most of the prices are obtained at regular intervals from a sample
of stores and service establishments. In each city, a selection is made of
establishments most frequently patronized by wage-earner and clericalworker families, and which represent the important types of retail outlets,
such as chain and independent stores, and department and specialty stores.
Samples of rental units are chosen from block listings representative of the
total rental housing market.
The price data, in general, are collected in personal visits by trained BLS
field agents. In order to eliminate as far as possible the effect of significant
changes in the quality of products, specifications are drawn up for use by
the field agents in comparing prices. These specifications provide a detailed
description of the article, including quality factors associated with price, and
physical characteristics essential for identifying an item from store to store
and from time to time. Product descriptions and other data are checked,
and, wherever possible, prices posted for goods on display are recorded. If
discounts or over allowances on trade-ins are known to be common, the
agents obtain from the store manager the information needed for computing
a realistic net price.
Prices obtained for each city are combined by means of expenditure
weights described below. Prices for all 46 cities are then combined by
means of population weights to form the national index. Separate indexes
are published monthly for the 5 largest cities, and quarterly for the 15 next
largest of the 46 cities.

Weights
The weights currently used were derived in the main from a comprehensive family expenditure survey made in 1950-51. This survey included data
for nearly 12,000 families in 91 cities of various characteristics: size, climate,
population density, income level, and, in the case of small cities, distance to
market. Six additional cities surveyed earlier were also used.
In the 1953 revision of the index, the development of weights involved
two principal steps: (1) averaging the different spending patterns reported
by individual families, and (2) adjusting the survey data for price and
income changes which had occurred between 1950 and January 1953, the
first month of the revised index.
During 1950 and 1951, while the major study of consumer expenditures
was under way, the BLS collected and studied prices for several hundred
commodities and services. The individual items were classified into "price
families," i. e., groups of commodities with similar characteristics as regards




ioo

physical properties, use, and price movements. Items of major importance
were chosen from each "price family" to represent price changes for all
items in the group. In the computation of the index, a specific item or set
of items was assigned the total expenditure weight of the group which it
was chosen to represent.
MAINTAINING THE INDEX

Periodically, the goods and services priced for the consumer price index
are varied to take account of changes in patterns of family spending. But
this is done infrequently, because spending patterns change slowly. The
revision in 1953 incorporated the results of the 1950-51 expenditure survey.
When a revision is made, it is done in a way that will preserve the character
of the index as a measure of price change. Prices for comparable
items are matched for each pair of successive months in the "linking-in"
period. If, for example, the new index is to be introduced in January,
both old and new indexes are computed for December. Percentage changes
between November and December are based on the old index; and those
between December and January are based on the new index. Thus monthto-month changes in the index continue to represent price change, not the
difference between the price of one market basket and that of another.
The basic character of the index is determined by the requirement that
the same market basket (in terms of quantity and quality of goods and
services) be priced in the periods being compared. To achieve this comparability, the BLS has established statistical procedures for the collection
of prices according to fixed specifications. But new items come onto the
market and become popular, and others decline in favor or disappear. In
addition, there are frequent changes in established products. Such changes
cumulate and eventually produce shifts in buying habits that are so far
reaching as to require revision of the fixed basket of goods. However,
account is taken of many minor changes in the interval between major
revisions.
When the characteristics of an item priced for the index have changed,
the specifications reported call attention to the points of noncomparability
and provide information for eliminating the measurable price effect of
such changes. When these changes are definite improvements or recognizable additions to the old item, or the reverse, statistical adjustments can
be made to reduce the prices to a comparable basis. However, when improvements in quality cannot be eliminated, the index reflects an upward
bias in consumer prices; and the reverse is true when quality deterioration
occurs.
The problem of adjustment for quality changes is particularly important
in the pricing of appliances, household equipment, and automobiles, although variants of this problem appear in almost all components of the
index, including the pricing of foods, services, and housing. When prices
for exactly comparable items cannot be collected, the BLS procedures just




IOI

described are applied whenever possible. Thus, when a new automobile
model or a new appliance model contains specific features which can be
isolated as improvements or additions, the price comparison is adjusted to
eliminate that part of the price change which can be ascribed to the change
in model. Nevertheless, there are types of changes which it is not possible
to take into account, even though there may be general agreement that
these changes constitute improvements. For example, a change in the
shape of the springs in an automobile may make for better riding, perhaps
at no increase in cost; or a slight change in the composition of an automobile
tire may make it safer and lengthen its life.
Other practices in pricing the fixed basket of goods may cause a downward
bias in the index. For example, when items drop out of the market
completely or, because of reduced sales, fail to qualify for continued inclusion as a "volume seller," they are replaced where possible by similar items
of different specifications—often of a higher quality and price. The new
prices are linked in without showing the price difference between the old
and the new items. For consumers who would prefer to buy the original,
lower-priced item, the change in market availability represents a real price
increase.
For short periods of 2, 3, or 4 years, the amount of bias arising
from quality changes that have not been eliminated is probably too small
to affect the index very much. For periods of a decade or more, however,
there is undoubtedly a significant effect upon the index values for some items,
although the net effect on the total index cannot be determined.
In preparing a monthly index of prices with fixed weights, the Bureau
of Labor Statistics must cope with items which are available on the market
in volume only in particular seasons. Such items are represented in the
market basket in accordance with their relative importance in annual consumption. Consequently, in off-season months the relative importance of
such items is too great in the price comparisons. In the months when these
items disappear from the market, their price movements must in effect be
estimated by the price movements of other products in the same class of
commodities. When such items reappear on the market, erratic jumps in
the index may occur as seasonal prices are reintroduced. For year-to-year
comparisons, this measurement of price changes is correct; but it may tend
to exaggerate the magnitude of some month-to-month changes.
LIMITATIONS

Since the index represents changes in the prices of a fixed set of goods and
services typically bought by a designated class of consumers, it does not
measure changes in consumption levels or in total living costs. These are
responsive to factors other than the changes in prices of the set of goods and
services included in the index. Thus, a family's living costs will shift as the
family grows, as its income rises or falls, as its tastes change, or for reasons




102

not related to price changes alone. The effects of such factors are ignored
by the consumer price index.
Because the index is an average, it does not necessarily apply to any one
family or to any small group of families. A careful housewife, by judicious
shopping, may purchase many items at prices lower than the averages embodied in the index. A family which takes great care in budgeting its expenditures, a family faced with abnormal expenses for one reason or another,
or a family in a position to make its purchases under particularly advantageous circumstances, would find that the index does not represent the movement of prices that it is called upon to pay. And, strictly speaking, the index
is not an appropriate measure of prices paid by very low or very high income
groups, or by single workers, elderly couples, or other groups whose living and
manner of spending are different from those of wage-earner and clericalworker families. On the other hand, when the index is applied to all city
families or to the total urban population, the limitations are not considered
to be serious, since the wage-earner and clerical-worker group constitutes
nearly two-thirds of the population.
Although separate consumer price indexes are published for individual
cities, they do not measure absolute differences in price levels. The fact
that the index for city A is higher than the index for city B does not necessarily mean that prices are higher in city A; it means only that, since the base
period, prices have risen more in city A. Indeed, the particular level of
the consumer price index for the Nation as a whole, for an individual city,
or for some specific group of consumer goods, represents only the magnitude of the change in prices since the base period, and has no meaning except
with reference to that period.
SOME U S E S OF THE INDEX

Government has long recognized the importance of prices in the formulation of policies affecting wage rates. As early as 1780 an index, based on
four commodities, was calculated by the State of Massachusetts to provide
a basis for adjusting soldiers' pay. Although first published in 1921, the
present index of consumer prices in the United States was developed by the
Department of Labor in 1918 to serve as a guide for the adjustment of wage
scales in the shipyards and other war production centers during Word War I.
In World War II and during the Korean conflict, the index was the basis
of a number of strategic wage decisions.
The index has been the focus of Nation-wide attention in recent years,
as wage contracts have been signed calling for periodic adjustments in wages
if the consumer price index should move up or down beyond specified
limits—the so-called "escalator clauses." This form of wage contract spread
rapidly throughout the automobile industry, and was extended to farm
equipment, aircraft, and electrical manufacturing industries, and to the
railroads. Most of the agreements are for a long term—2, 3, or 5 years—
without reopening clauses on wages. By 1952, more than 3,500,000 workers




103

were employed under contracts containing escalator clauses. After some
decline in the use of escalator clauses, they have recently become more
widespread. It is estimated that at least 4,000,000 workers are now employed under labor-management contracts by which wages are adjusted
according to changes in the consumer price index. As a rule, these clauses
provide for wage adjustments of about two cents per hour for each change
of one index point. At 40 hours a week for 50 weeks in the year, an increase
of one point in the index raises the annual wage bill for these workers by
about $160 million.
The index has an indirect impact on wage rates even where formal escalator agreements are not in effect. Pay adjustments made under escalator
contracts influence wage payments elsewhere, and the index is often explicitly
considered by management and labor in formulating wage policies.




104




Appendix E
PRODUCTIVITY STATISTICS

105




Productivity Statistics
The terms "productivity" and "labor productivity" are commonly used
to designate measures of output per unit of labor input. Productivity
index numbers showing changes in output per employee or per man-hour
are used in the discussion and study of various economic topics—e. g., wagecost-price relationships, the rise of living standards, technological progress,
and the outlook for production and employment.
PRODUCTIVITY ESTIMATES FOR THE PRIVATE ECONOMY,

1947-56

Table E-l shows two sets of productivity index numbers (1947=100)
computed by the Bureau of Labor Statistics from available Government
data. These productivity measures, relating to the private economy (i. e.^
excluding Government) and its main components, are based on a common set of output estimates and two different sets of man-hour estimates
covering both employers and employees. In one index, the man-hours
refer to hours for which pay is received (plus the hours of unpaid family
workers). In the other, the man-hours refer to hours worked. In other
words, the first man-hour concept includes, and the second excludes, paid
holidays, vacations, and sick leave. The output estimates, which are subject
to further revision for much of the period, refer to portions of the gross
national product adjusted to 1947 prices.
For the decade 1947—56, both productivity measures for the private
economy as a whole show average annual rates of increase that exceed the
long-term trend rates. According to one mode of computation used
throughout this Appendix, the average annual increase in output per manhour paid was 3.4 percent during the postwar decade, and the average for
output per man-hour worked was 3.9 percent. These rates are much larger
than the long-term rates of 2 percent or slightly more per year shown by
various studies for periods covering several decades. Smaller excesses over
long-term rates are indicated if the postwar interval is lengthened to 1945-56
or shortened to 1950-56.
Productivity advanced more rapidly in agriculture than in the rest of the
private economy during 1947—56. The two average annual rates for agriculture, derived from an output series fitting into the national product
accounts, were about 6 percent. For nonagricultural industries, on the
other hand, output per man-hour paid increased at 2.8 percent per year
(3.2 percent in the manufacturing sector and 2.6 percent in nonmanufactur-




107

TABLE E-l.—Indexes of output per man-hour for the private economy, 1948-57
[1947=100]
Based on man-hours paid 1
Year

Based on man-hours worked 2

Nonagricultural industries
Total

Agriculture 3

Manufacturing*

Total

Nonmanufacturing

Total

Agriculture 3

Nonagricultural
industries

1948
1949

104.9
107.0

123.4
114.7

102.5
106.0

102.5
104.7

102.8
107.2

104.2
105.4

123.7
113.8

101.7
104.2

1950
1951
1952
1953
1954

115.6
118.1
121.7
126.2
129.0

131.8
129.8
138.7
153.6
167.1

112.7
114.9
117.5
120.4
122.4

113.1
114.6
116.4
120.3
123.7

112.8
115.1
118.1
120 2
121.9

114.5
118.8
123.2
127.8
131.5

131.4
129.0
138.0
152.7
166.3

111.5
115.7
119.2
122.2
125.1

1955
1956
1957 5

133.5
134.6
137.0

169.7
175.8
183.8

126.8
127.1
128.6

130.9
131.4
132.4

124.7
125.1
127.1

136.3
137.9
140.9

168.9
175.0
183.4

129.8
130.6
132.6

1
"Man-hours paid" were derived from Bureau of Labor Statistics figures for the nonagricultural component and Bureau of the Census information for the agricultural component. They include the hours of
unpaid family workers in addition to wage and salaried workers and the self-employed. They cover paid
holidays, vacations, and sick leave.
2
"Man-hours worked" were derived from data of the Bureau of the Census, Department of Commerce.
Like "man-hours paid," they include the hours of all persons, whether employees or employers. They
incorporate adjustments designed to eliminate holidays, vacations, and sick leave.
3
Differs in concept from Department of Agriculture's productivity series based on requirements of equivalent adult man-hours.
* Derived from a Bureau of Labor Statistics index of net output for 1947-53 extended with the aid of Office
of 5Business Economics data.
Preliminary, subject to revision.
NOTE.—The indexes in this table were computed by Department of Labor, Bureau of Labor Statistics,
from estimates of real product and man-hours. The real product estimates, referring to 1947 prices, are
based primarily on national product statistics of the Department of Commerce, Office of Business Economics.
Source: Department of Labor (see note above).

ing). In the case of output per man-hour worked, the average nonagricultural productivity rise was 3.3 percent per year.
Both sets of productivity measures show uneven percentage changes from
year to year. Although agriculture recorded an exceptionally high rate of
gain for the decade as a whole, it experienced setbacks between 1948 and
1949 and between 1950 and 1951. Unusually small rises occurred in the private economy as a whole and in the nonagricultural sector between 1955 and
1956. For the private economy, output per man-hour paid advanced 8
percent between 1949 and 1950 as output increased sharply, and productivity in terms of man-hours worked advanced nearly 9 percent. Between
1955 and 1956, on the other hand, the two productivity indicators for the
private sector rose only about 1 percent, and the two measures for the
nonagricultural industries changed even less. For the same year, each
agricultural measure showed a gain of 3.6 percent.
PRODUCTIVITY CHANGES IN

1957

Preliminary estimates indicate a generally better productivity performance
in 1957 than in 1956. According to either man-hour concept, the productivity advance for the private economy apparently matched the long-term
trend rate of about 2 percent. The two measures for agriculture approached




108

5 percent. Some improvement over the preceding year is suggested for the
nonagricultural sector and its manufacturing and nonmanufacturing divisions, but the gains were still comparatively small. Thus, the nonagricultural productivity increases for 1957 over 1956 were 1.2 percent for manhours paid and 1.6 percent for man-hours worked. The advances for the
manufacturing and nonmanufacturing divisions, both referring to man-hours
paid, were 0.8 percent and 1.6 percent, respectively.
PROBLEMS OF MEASUREMENT AND MEANING

The application and interpretation of available productivity index numbers must take account of many theoretical and practical difficulties of
measurement. In principle, various acceptable productivity indicators can
be constructed, each of which would be especially appropriate to a particular
context or use. But limitations of data and other factors commonly make
it impracticable to construct measures consistent with the desired concepts.
The details of actual measurement affect the meaning and applicability of
the results. Two or more productivity index numbers computed for a
given industry occasionally differ significantly—in direction as well as in
magnitude. Furthermore, tolerable agreement during a period of observation gives no assurance of similarity thereafter.
The problems of concept, technique, and data that are important for
application and interpretation pertain not only to the productivity ratio
proper but also to the production numerator and the labor denominator.
Production measures often employ gross output concepts rather than preferred net concepts; incorporated weights may refer to a year other than
the one desired; basic product data are commonly reported in crude units
or broad classes, vary greatly in quality between census and other years,
and lack continuity because of technological and other changes. For many
industries (e. g., finance) and activities (e. g., research) that do not have
uniform or directly measurable products, indirect and rough techniques of
estimation have to be used (e. g., the adjustment of dollar values for price
changes by means of price measures that may not be altogether pertinent),
and these techniques yield results that are conceptually obscure. In labor
input measures, employees and hours of different skill are typically treated
as equivalent; statistics for hours remunerated often have to be used in
lieu of hours actually worked; and the scope of the data frequently fails
to coincide exactly with the scope of the production measure. Finally, productivity index numbers for specific industries may be combined in various
ways, with results that sometimes differ significantly from ratios of composite
production and labor input measures computed for the same group of
industries.
Certain common misunderstandings of productivity measures should also
be noted. Short-term changes provide no clear guide to the long-term productivity trend or to an alteration of this trend. Furthermore, short-term
changes are influenced by, but do not closely reflect, the course of tech-




109

nological progress. The confinement of the denominator to labor input
does not imply that labor is the sole contributor to the value of product or
the sole input to be economized in the process of production.
Continual efforts are being made to improve productivity indicators and
to extend measurement to additional sectors and industries. These efforts
are reflected in the 1959 budget proposals described in Appendix C and in
the establishment in January 1957 of an Interagency Committee on Productivity Estimates under the auspices of the Bureau of the Budget. This
Committee has been making a systematic review of productivity concepts,
methods, and data needs and of opportunities to fill the major statistical
gaps.




no

Appendix F
STATISTICAL TABLES RELATING TO INCOME,
EMPLOYMENT, AND PRODUCTION




I I I




CONTENTS
income or expenditure:
Page
Gross national product or expenditure, 1929-57
117
Gross national product or expenditure, in 1957 prices, 1929-57
118
Gross private and government product, in current and 1957 prices,
1929-57
120
F-4, Gross national product or expenditure, in 1947 prices, 1929-57
121
F-5. Implicit price deflators for gross national product, 1929-57
122
F-6. The Nation's income, expenditure, and saving, 1955-57
123
F-7. Personal consumption expenditures, 1929-57
124
F~8. Gross private domestic investment, 1929-57
125
F-9. National income by distributive shares, 1929-57
126
F-10. Relation of gross national product and national income, 1929-57. . . .
127
F - l l . Relation of national income and personal income, 1929-57
128
F-12. Sources of personal income, 1929-57
129
F-l3. Disposition of personal income, 1929-57
130
F-l 4. Total and per capita disposable personal income and personal consumption expenditures, in current and 1957 prices, 1929-57
131
F-l5. Financial saving by individuals, 1939-57
132
F-l6. Sources and uses of gross saving, 1929-57
133
Employment and wages:
F-l 7. Noninstitutional population and the labor force, 1929-57
134
F-18. Employment and unemployment, by age and sex, 1942-57
136
F-l9. Employed persons not at work, by reason for not working, and special
groups of unemployed persons, 1946-57
137
F-20. Unemployed persons, by duration of unemployment, 1946-57
138
F-21. Unemployment insurance programs, selected data, 1939 and 1946-57.
139
F-22. Number of wage and salary workers in nonagricultural establishments,
1929-57
140
F-23. Average weekly hours of work in selected industries, 1929-57
142
F-24. Average gross hourly earnings in selected industries, 1929-57
143
F-25. Average gross weekly earnings in selected industries, 1929-57
144
F-26. Average weekly hours and hourly earnings, gross and excluding overtime, in manufacturing industries, 1939-57
145
F-27. Average weekly, earnings, gross and net spendable, in manufacturing
industries, in current and 1957 prices, 1939-57
146
F-28. Labor turnover rates in manufacturing industries, 1930-57
147
Production and business activity:
F-29. Industrial production indexes, 1929-57
148
F--30. Business expenditures for new plant and equipment, 1939 and 1945-58.
150
F-31. New construction activity, 1929-57
151
F-32. New public construction activity, 1929-57
152
F-33. Housing starts and applications for financing, 1929-57
153
F-34. Sales and inventories in manufacturing and trade, 1939-57
.
154
F-35. Manufacturers' sales, inventories, and orders, 1939-57
155
National
F-l.
, F-2.
F—3.




JI

3

Prices:
Page
F-36. Wholesale price indexes, 1929-57
156
F-37. Wholesale price indexes, by economic sector, 1947-57
158
F-38. Consumer price indexes, 1929-57
160
F-39. Consumer price indexes, by selected major groups, 1935-57
161
Money supply, credit, and finance:
F-40. Deposits and currency, 1929-57
162
F-41. Loans and investments of all commercial banks, 1929-57
163
F-42. Federal Reserve Bank credit and member bank reserves, 1929-57. . . .
164
F-43. Bond yields and interest rates, 1929-57
165
F-44. Short- and intermediate-term consumer credit outstanding, 1929-57. .
167
F-45. Instalment credit extended and repaid, 1946-57
168
F-46. Mortgage debt outstanding, by type of property and of financing,
1939-57
169
F-47. Net public and private debt, 1929-57
170
Government finance:
F-48. U. S. Government debt, by kind of obligation, 1929-57
171
F-49. Estimated ownership of Federal obligation, 1939-57
172
F-50. Federal budget receipts and expenditures and the public debt,
1929-59
173
F-51. Federal budget receipts by source and expenditures by function, fiscal
years 1946-59
174
F-52. Government cash receipts from and payments to the public, 1946-59. .
175
F-53. Government receipts and expenditures as shown in the national income
accounts, 1954-57
176
F-54. Reconciliation of Federal Government receipts and expenditures as
shown in the national income accounts with receipts and expenditures as reported in the consolidated cash statement and the conventional budget, fiscal years 1955-57
177
F-55. State and local government revenues and expenditures, selected fiscal
years, 1927-56
178
Corporate profits and finance:
F-56. Profits before and after taxes, all private corporations, 1929-57
179
F—57. Relation of profits before and after taxes to stockholders' equity and
to sales, private manufacturing corporations, by asset size class,
1947-50 average and 1956-57
180
F—58. Relation of profits after taxes to stockholders' equity and to sales,
private manufacturing corporations, by industry group, 1947-50
average and 1956-57
181
F-59. Sources and uses of corporate funds, 1946-57
183
F-60. Current assets and liabilities of U. S. corporations, 1953-57
184
F-61. State and municipal and corporate securities offered, 1934-57
185
F-62. Common stock prices and stock market credit, 1939-57
186
F-63. Business population and business failures, 1929-57
187
Agriculture:
F-64. Income of the farm population, 1929-57
188
F-65. Farm population, employment, and productivity, 1929-57
189
F-66. Farm production indexes, 1929-57
190
F-67. Indexes of prices received and prices paid by farmers, and parity
ratio, 1929-57
191
F-68. Comparative balance sheet of agriculture, 1940-58
192
F—69. Level-of-living indicators for farm-operator families, selected years,
1920-56
192
F-70. Selected indicators of farming conditions, 1929-57
193




International transactions:
F-71. United States balance of payments, 1953-57
F-72. United States balance of payments with individual areas, 1953-57. . . .
F-73. United States merchandise exports and imports for consumption, by
leading commodities, 1936-38 average and 1953-57
..
F—74. U. S. Government grants and credits, excluding military supplies and
services, by areas, total postwar period and fiscal years 1953-57. . . .
F-75. U. S. Government grants of military supplies and services, by areas,
total postwar period and fiscal years 1953-57
F—76. Estimated gold reserves and dollar holdings of foreign countries, 1937
and 1949-57




Page
194
195
197"
198
199
199




NATIONAL INCOME OR EXPENDITURE
TABLE F—1.—Gross national product or expenditure, 1929—57
[Billions of dollars]
Government purchases of
goods and services

Gross private domestic
investment 2
^otal
sross
national
product

Period

Personal
consumption
expenditures 1

New construction

1929.

104.4

1930
1931
1932
1933
1934

91.1
76.3
58.5
56.0
65.0

71.0 10.3
61.3 5.5
49.3
.9
1.4
46.
51.9 2.9

1935
1936
1937
1938
1939

72.5
82.
90.8
85.2
91.1

56.3
62.6
67.3
64.6
67.6

1940
1941
1942
1943
1944

100.6
125.8
159.
192.5
211.4

71. 13.2
81. 18.1
89.7 9.9
5.6
100.
109.8 7.

213.
209.
232.
257.
257.

121.
146. e
165.
177.
180.

10.4
27.
29.7
41.2
32.5

10.2
14.0
17. S
17.

1950
1951
1952
1953
1954

285.
328.
345.
363.
361.

194.
208.
218.
230.
236.

51.2
56.
49.8
50. £
48.

22.
23.
23.
25.
27.

1955
1956
1957«...

391.
414.
433.

254.
267.
280.

60. 32.
65. S 33.
63. 33.

1945
1946
1947
1948
1949

.

79.0

Net
foreign
investment

3.6

5.8

2.1
1.6
.6

16.

4.5
2.8 - 1 . 3
1.6 - 2 . 6
1.6
2.3
3.1
4.2
5.1
3.6
4.2

8.4
11.

9.2
9.2
8.1
8.0
9.8

.9 - . 1
1.0 - . 1
.1
2.2
1.1

10.0
11.8
11.
12.8
13.3

7.2

1.4
1.5
1.5
2.0
3.0

7.8
7.7
6.6
6.0
6.8

2.9
()
4.8
(*)
4.6
)
5.3 ()
5.2 1.3 3.9

7.1
7.0
7.2
7.5
8.2

14.1
24.8
59.7
88.6
96.5

10.
12.4
12.
13.
14.
16.
18.
19.

-2.

6.2
16.9
52.0
81.2
89.0

2.2
13.8
49.6
80.4
88.6

4.0
3.2
2.
1.5
1.6

7.9
7.8
7.7
7.4
7.5

82.9
30.9
28.6
36.6
43.6

7.7
10.
16.7
19.

16.
15.
14.

1.3

0.8

5.5 2.2
6.9 4.5
4.3 1.8
4.0
5. -l'.C

12.
11.
11.
11.8
13.5

Federal

20.9
15.8
21.0
25.4

75.9
21.2
13.3
16.0
19.3

1.0
2.5
3.8
5.6
6.6

8.1
10.0
12.8
15.6
18.2

18.5
37.3
48.8
51.5
43.1

3.9
4.2
5.8
8.4
6.2

19.9
21.8
23.2
24.9
27.7

41. 5.9
42.4 5.2
45. 5.2

30.3
33.0
36.0

42. 22.
62. £
77.
84.4 59. £
48. S
77. 46.8
47.2
50.

Seasonally adjusted annual rates
1955: First quarter..
Second quarter.
Third quarter..
Fourth quarter.

379.0
387.7
397.0
402.8

247.4
252.1
258.3
259.9

55.6
59.7
61.4
65.4

31.6
32.7
32.9
33.2

16.3
16.8
16.7
16.4

15.3
15.9
16.2
16.8

21.3
22.4
25.2
25.9

2.7 - . 4
4.6 - . 7
3.3
.1
6.3 - . 7

46.9
46.5
46.7
47.1

41.8
41.3
41.3
40.7

5.5
5.6
5.8
6.8

.4
.4
.4
.4

29.5
30.1
30.5
31.1

1956: First quarter..
Second quarter.
Third quarter..
Fourth quarter.

405.2
410.8
416.7
426.0

262.8
265.0
268.6
272.3

64.4
65.3
65.5
68.5

32.9
33.6
33.2
33.4

15.7
15.5
15.1
15.1

17.3
18.1
18.1
18.4

26.3
27.2
29.0
29.9

5.2 - . 2 78.2 46.2
4.6 1.2 79.3 46.4
3.3 2.0 80.6 47.3
5.1 2.4 82.8 49.0

41.1
41.6
42.7
44.2

5.5
5.2
4.9
5.1

.4
.4
.4
.4

32.0
32.9
33.3
33.9

1957: First quarter...
Second quarter.
Third quarter..
Fourth quarter

429.1
434.3
439.0
433.0

276.7
278.9
283.6
282.5

62.7
65.0
65.5
61.0

32.8
32.7
33.0
34.0

14.4
13.7
14.0
14.5

18.5
19.0
19.0
19.5

30.7 - . 8
30.5 1.7
30.5 2.0
30.0 - 3 . 0

45.5
46.3
45.8
45.2

5.2
5.2
5.2
5.2

.4
.4
.4
.4

35.3
35.8
36.1
37.0

1
1
3

4.1
3.5
3.2
2.5

76.5
76.6
77.2
78.2

85.6
86.9
86.7
87.0

50.3
51.1
50.6
50.0

See table F-7 for major components.
See Table F-8 for more detail and explanation of components.
For 1947-57, national security expenditures include the items classified as such in the Budget of the
United States Government for tjie Fiscal Year ending June 30,1954. They are not comparable with the major
national security category in the Budget for the fiscal year ending June 30, 1959, which corresponds more
closely to national defense expenditures for goods and services. National defense expenditures since 1947
are as follows: 1947,12.3 billion dollars; 1948,11.6 billion; 1949,13.6 billion; 1950,14.3 billion; 1951, 33.9 billion;
1952, 43.4 billion; 1953, 49.3 billion; 1954, 41.2 billion; 1955, 39.1 billion; 1956, 40.4 billion; and 1957, 43.7 billion.
4
N o t available separately.
8
Less than 50 million dollars.
9
Preliminary; fourth quarter b y Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




117

TABLE F—2.—Gross national product or expenditure, in 1957 prices, 1929—57*
[Billions of dollars, 1957 prices]
Personal consumption
expenditures

Period

Total
gross
national
product Total

Gross private domestic investment

New construction
Dura- Nonble durable Services Total
goods goods

Total

Residential
(nonfarm)

Producers'
durable
Other equipment

Change
in business
inventories

1929

193.8

133.0

15.0

68.3

49.7

38.9

23.1

9.3

13.8

12.6

3.2

1930
1931
1932
1933
1934

175.7
162.7
138.0
134.9
148.9

125.3
121.6
110.5
107.7
113.5

12.1
10.4
7.9
7.7
8.7

64.9
64.7
59.5
57.8
61.7

48.3
46.6
43.1
42.3
43.2

26.6
16.7
4.5
4.7
8.8

17.1
12.0
6.6
5.1
5.7

5.5
4.5
2.3
1.7
2.0

11.7
7.4
4.4
3.4
3.6

10.0
6.7
4.0
4.2
5.7

-.6
-2.0
-6.2
-4.6
-2.6

1935
1936
1937
1938
1939

164.0
186.3
197.0
188.5
203.5

120.6
133.0
137.7
135.7
143.5

10.8
13.3
14.0
11.5
13.6

65.1
72.6
75.0
76.3
80.5

44.7
47.1
48.8
47.9
49.4

17.7
23.5
30.0
17.2
23.9

7.4
10.4
12.5
11.1
13.3

3.3
4.9
5.3
5.5
7.3

4.1
5.5
7.2
5.6
6.0

7.6
10.4
11.9
8.2
9.6

2.6
2.7
5.7
-2.1
1.0

1940
1941
1942
1943
1944

221.6
256.8
291.4
323.9
348.0

151.0
161.1
158.3
162.5
168.1

15.6
17.9
11.6
10.0
9.1

84.2
89.7
91.7
94.9
99.0

51.3
53.5
55.0
57.6
60.0

32.0
40.6
20.7
11.8
13.8

14.9
16.8
8.6
4.8
5.3

7.8
8.4
3.9
1.8
1.5

7.1
8.4
4.7
3.0
3.7

12.4
14.5
8.4
7.7
10.2

4.8
9.3
3.7
-.7
-1.7

1945
1946
1947
1948
1949

340.1
301.1
300.5
314.0
313. 3

179.5
200.3
203.5
207.5
212.9

10.3
19.8
23.7
24.5
25.8

106.5
112.1
109.4
109.6
111.3

62.7
68.3
70.5
73.5
75.8

18.8
45.9
44.7
53.7
41.9

7.2
17.8
20.1
22.9
22.5

1.9
6.5
8.5
10.4
10.2

5.3
11.3
11.5
12.6
12.3

14.2
18.1
24.6
26.1
23.2

-2.7
10.0
.1
4.8
-3.8

1950
1951
1952
1953
1954

341.6
367.6
381.1
397.0
389.7

225.6
227.2
234.4
244. 3
248.8

31.3
27.9
27.5
30.7
31.0

114.2
116.3
120.3
123.9
125.0

80.2
83.0
86.5
89.7
92.9

63.3
64.9
56.8
56.6
54.1

28.2
27.1
26.9
28.3
30.5

15.0
12.2
12.0
12.7
14.5

13.3
14.9
14.9
15.6
16.0

26.9
27.2
27.0
28.0
25.9

8.1
10.6
3.0
.4
-2.3

1955
1956
1957 8

417.4
430.3
433.9

266.5
275.6
280.4

37.0
35.1
35.1

131.6
137.5
140.0

98.0
103.0
105.4

66.3
68.9
63.6

35.1
34.4
33.2

17.4
15.6
14.2

17.7
18.8
19.0

26.7
29.7
30.4

4.5
4.9
(6)

See footnotes at end of table.




u8

TABLE F-2.—Gross national product or expenditure, in 1957 prices, 1929-57l
-Continued
[Billions of dollars, 1957 prices]
Government purchases of goods and services
Net
foreign
investment

Period

Federal

State

Total

Total

National

security

2

Other 3
(4)

and
local

1929

1.1

20.8

3.4

1930
1931
1932
1933
1934

.8
.2

23.1
24.2
23.1
22.9
26.6

3.9
4.2
4.4
6.2
8.4

L.2
- L.4
LO
L.6
?

26.9
31.3
30.2
33.9
34.9

8.1
12.6
11.8
14.4
13.5

3.3

10.2

18.8
18.7
18.5
19.6
21.4

1.9
.4
-2.1
-5.8
-5.7

36.7
54.7
114.5
155.4
171.8

16.4
35.6
97.1
139.6
156.3

5.9
29.0
92.5
138.1
155.7

10.5
6.7
5.0
2.5
2.7

20.3
19.1
17.4
15.8
15.5

-4.5
4.9
9.5
1.5

146.3
50.0
42.7
51.2
58.5

130.5
32.1
22.4
29.1
33.6

132.5
32.5
19.0
22.1
25.4

1.8
3.8
5.3
7.7
8.7

15.8
17.9
20.3
22.1
24.9

-2.3
1.5
.6
-1.7
.1

55.0
74.1
89.3
97.8
86.7

28.2
46.9
61.7
69.1
55.5

23.6
42.6
55.5
59.8
48.8

5.0
4.7
6.6
9.8
7.1

26.7
27.2
27.6
28.7
31.2

1.9
3.3

84.6
83.9
86.6

51.3
49.2
50.5

45.2
44.2
45.7

6.5
5.4
5.2

33.3
34.8
36.0

-.4

1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945.
1946
1947
1948
1949

_
_

.

1950
1951
1952
1953
1954
1955
1956
1957 6 . .

--

..

-

.

17.4
19.2
20.0
18.7
16.7
18.2

4

()

(})

4

()

1 These estimates represent an approximate conversion of the Department of Commerce series in 1947
prices. (See Table F-4.) This was done by major components, using the implicit price indexes converted
to a 1957 base. Although it would have been preferable to redeflate the series by minor components, this
would not substantially change the results except possibly for the period of World War II, and for the
series on change in business inventories.
2
Net of Government sales, which are not shown separately in this table. See Table F-l for Government sales in current prices.
3 See Table F-l, footnote 3.
4
Not available separately.
« Less than 50 million dollars.
6
Preliminary.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Council of Economic Advisers.




TABLE F—3.—Gross private and government product, in current and 7957 prices, 1929—57
[Billions of dollars]

Current prices
Total
gross
national
product

Year

1957 prices *

Gross private productl
Total Farm

2

Nonfarm

Gross
government
product3

Total
gross
national
product

Gross private product * Gross
Total Farm 2

Nonfarm

government
product 3

1929

104.4

100.1

9.8

90.3

4.3

193.8

181.9

15.4

166.5

11.9

1930
1931
1932
1933
1934

91.1
76.3
58.5
56.0
65.0

86.6
71.6
54.0
51.3
59.4

7.7
6.2
4.4
4.6
4.3

78.8
65.4
49.6
46.7
55.1

4.5
4.7
4.4
4.7
5.6

175.7
162.7
138.0
134.9
148.9

163.3
150.0
125.6
121.3
132.9

14.3
16.6
15.6
15.2
12.7

149.0
133.5
110.0
106.1
120.3

12.5
12.7
12.4
13.6
16.0

72.5
82.7
90.8
85.2
91.1

66.6
75.5
83.9
77.6
83.5

6.9
6.3
8.1
6.7
6.5

59.6
69.2
75.8
70.9
77.0

5.9
7.3
6.9
7.6
7.6

164.0
186.3
197.0
188.5
203.5

146.9
166.2
178.2
168.0
182.9

15.5
13.0
16.9
16.7
16.6

131.4
153.1
161.3
151.3
166.4

17.1
20.2
18.8
20.5
20.6

100.6
125.8
159.1
192.5
211,4

92.8
116.4
144.0
167.0
179.2

6.8
9.4
13.4
15.3
15.7

86.0
107.0
130.6
151.7
163.5

7.8
9.4
15.1
25.6
32.2

221.6
256.8
291.4
323.9
348.0

200.3
230.7
253.5
265.2
280.8

16.1
17.4
19.0
17.5
18.0

184.1
213.2
234.5
247.7
262.8

21.4
26.2
37.8
58.7
67.2

213.6
209.2
232.2
257.3
257.3

178.4
188.5
215.6
240.0
238.0

16.2
18.8
20.6
23.7
20.1

162.2
169.7
195.0
216.2
217.8

35.2
20.7
16.7
17.4
19.3

340.1
301.1
300.5
314.0
313.3

274.5
266.6
274.0
287.4
285.4

16.9
17.6
16.3
18.9
18.0

257.7
249.0
257.7
268.6
267.5

65.5
34.5
26.5
26.6
27.8

1950
1951
1952
1953
1954

285.1
328.2
345.4
363.2
361.2

264.3
301.0
314.5
331.5
328.9

21.1
24.6
22.7
21.0
20.5

243.1
276.4
291.8
310.5
308.4

20.8
27.2
31.0
31.7
32.2

341.6
367.6
381.1
397.0
389.7

312.8
331.8
342.7
358.8
352.2

18.7
17.5
17.7
18.4
19.4

294.1
314.3
325.0
340.4
332.8

28.8
35.8
38.4
38.2
37.5

1955
1956
1957 «

391.7
414.7
433.9

357.8
378.6
395.5

19.9
19.6
19.2

337.9
359.0
376.3

33.9
36.1
38.3

417.4
430.3
433.9

380.0
392.5
395.5

20.2
19.9
19.2

359. 8
372.6
376.3

37.4
37.9
38.3

1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949

-...

.

_ .

.

.

-

.

.

1
Gross national product less compensation of general government employees, i. e., gross product accruing
from domestic business, households, and institutions, and from the rest of the world.
2
See Survey of Current Business, August 1954 and June 1957, for description of series and estimates in
current and constant prices and implicit deflators for 1910-56.
3 Includes compensation of general government employees and excludes compensation of employees in
government enterprises. Government enterprises are those agencies of government whose operating costs
are at least to a substantial extent covered by the sale of goods and services, in contrast to the general activities of government which are financed mainly by tax revenues and debt creation. Government enterprises, in other words, conduct operations essentially commercial in character, even though they perform
them under governmental auspices. The Post Office and public power systems are typical examples of
government enterprises. On the other hand, State universities and public parks, where the fees and admissions cover only a nominal part of operating costs, are part of general government activities.
* See Table F-2, footnote 1.
8
Preliminary.
NOTE.—Detail will not necessarily add to totals because of rounding.

Sources: Department of Commerce and Council of Economic Advisers.




I2O

TABLE F—4.—Gross national product or expenditure, in 1947 prices, 1929-57

1

[Billions of dollars, 1947 prices]
Personal consumption
expenditures

Period

Total
gross
national
Duproduct Total rable
goods

Gross private domestic
investment

Government
purchases of goods
and services

Net
Gross
forpriPro- Change eign
vate
inNew ducNonin
ers'
vestState p r o d con- dudu- ServbusiFeduct 3
rable ices Total struc- rable ness ment Total e r a l and
local
tion equip- invengoods
ment tories

1929

149.3 107.3

13.0

58.1

36.2

26.8

16.1

8.5

2.1

1.6

13.6

2.3

11.2

142.3

1930
1931
1932
1933
1934

135.2 100.9
126.6 98.0
107.6 88.9
103.7 86.6
113.4 91.5

10.5
9.1
6.9
6.7
7.6

55.2
55.0
50.7
49.2
52.5

35.2
33.9
31.4
30.8
31.4

17.9
12.0
3.3
2.1
4.3

11.8
8.3
4.6
3.5
3.9

6.8
4.6
2.7
2.9
3.9

-.7
-.9
-4.1
—4.2
-3.5

1.2
.6
.3
.1
.5

15.1
15.9
15.1
14 9
17.2

2.7
2.9
3.0
4 3
5.7

12.5
13.0
12.1
10.6
11.6

127. 8
119.1
100.3
95.6
103.9

1935
1936
1937
1938
1939

127.8
142.5
153.5
145.9
157.5

97.3
107.6
111.5
109.8
116.3

9.4
11.6
12.2
10.0
11.8

55.4
61.8
63 8
64.9
68.5

32.5
34.3
35 5
34.9
36.0

13.6
15.2
22 5
12.1
16.8

5.2
7.3
87
7.8
9.4

5.2
7.1
8.1
5.6
6.5

3.2
.9
57
-1.2
.8

- 5
-.7
— 2
1.9
1.6

17.4
20.3
19.7
22.1
22.8

5 4
8.3
7.8
9.6
9.0

11.9
12.0
11.8
12.5
13.8

117.6
130.3
142 1
133! 6
145.0

1940
1941
1942
1943
1944

171.6
198.2
223.6
248.9
268.2

122.5
130.9
128.1
131.4
135.9

13.5
15.6
10.1
8.7
7.9

71.6
76.4
78.0
80.8
84.3

37.4
38.9
40.1
42.0
43.7

22.8
28.9
14.7
7.4
9.2

10.6
11.8
6.0
3.4
3.6

8.4
9.8
5.7
5.2
6.9

3.9
2.2 24.1 11.0 13.0
1 1 37 3 25 1 12 2
7.3
3.0 - 1 . 1 81.8 70.8 11.0
— 1.2 —4.1 114.2 104 3 9 9
- 1 . 3 - 4 . 0 127.1 117.4
9.7

158.6
181.7
198.7
209.0
222.0

1945
1946
1947
1948
1949

263.1
233.8
232.2
243.9
241.5

145.2
162. 4
165.0
168.0
172.3

8.9
17.2
20.6
21.3
22.4

90.6
95.4
93.1
93.3
94.7

45.6
49.8
51.3
53.5
55.2

13.0
32.4
29.7
38.8
28.1

5.0
12.3
14.0
16.1
15.8

9.7
12.3
16.7
17.7
15.7

—1.6 —2.9 107.8
7.8
5.0 34.0
8.9 28.6
-1.0
5.1
2.1 34.9
-3.5
.8 40.3

97.9
22.7
15.8
20.8
24.3

9 9
11.2
12.8
14.0
16.0

218.0
211 2
215.6
227.3
224.0

1950
1951
1952
1953
1954

264.7
282.9
293.7
305.3
301.3

182.8
183.6
189.3
197.4
200.9

27.2 97.2
24.2 99.0
23.9 102.4
26.7 105.4
26.9 106.3

58.4
60.4
63.0
65.3
67.6

45.3
45.2
39.3
38.5
37.9

20.0
19.0
18.8
19.8
21.4

18.3
18.4
18.3
19.0
17.6

7.0 - 1 . 1
7.8
2.3
2.2
1.7
-.3
-.3
-1.0
1.2

37.7
51.8
63.4
69.6
61.2

20.5
34.2
45.6
51.1
41.0

17.3
17.5
17.8
18.5
20.2

246.6
259.9
268.9
280.7
277.3

1955
1956
1957 *

322.8 215.4
332.0 222.5
334.7 226.3

32.2 111.9
30.5 117.0
30.5 119.0

71.3
75.0
76.7

46.6
47.6
43.6

24.7
24.1
23.2

18.1
20.1
20.7

1.3
3.0
4.2

59.4
58.9
60.7

37.8
36.3
37.4

21.6
22.5
23.3

299.0
308.0
310.5

.

3.8
3.4
-.3

1
See National Income, 1954. Edition, A Supplement to the Survey of Current Business, for explanation of
conversion of estimates in current prices to those in 1947 prices. See Table F-5 for implicit deflators.
2 Net of Government sales.
3
Gross national product less compensation of general government employees.
* Preliminary estimates by Council of Economic Advisers.
NOTE.—Detail will not necessary add to totals because of rounding.
Source: Department of Commerce (except as noted).




121

T A B L E F—5.—Implicit price deflators for gross national product, 1929—57
[Index numbers, 1947=100]
Personal consumption
expenditures
Gross
national
product i

Year

Gross private domestic
investment1

Government purchases of goods
and services

Gross Gross
gov- priProernducment pvatero
Dur- Non- Servers'
State prod- uct d3
durResidur- Total Fed- and uct 2
Total able able ices
deneral local
goods goods
able
Total tial Other equipnonment
farm
New construction

1929

70.0

73.6

70.7

64.8

88.6

53.9

52.6

54.9

68.5

62.4

56.0

63.8

61.5

70.4

1930
1931
1932
1933
1934

67.4
60.3
54.3
54.0
57.3

70.3
62.6
55.4
53.6
56.7

67.9
60.6
53.0
52.0
55.4

61.6
52.6
44.9
45.3
50.8

84.8
79.3
73.0
67.2
66.9

52.2
47.7
40.8
40.6
43.4

51.3
46.7
37.7
37.5
41.7

52.6
48.4
42.5
42.4
44.4

65.8
62.3
58.8
55.7
59.3

60.7
57.9
53.4
54.0
56.7

52.8
53.2
48.9
47.3
52.9

62.4
58.9
54.5
56.7
58.6

61.3
62.0
60.5
58.3
58.7

67.7
60.2
53.9
53.6
57.2

1935
1936
1937
1938
1939

56.7
58.1
59.2
58.4
57.9

57.8
58.2
60.3
58.9
58.1

54.5
54.5
56.9
57.0
56.5

52.9
53.2
55.1
52.3
51.3

67.2
68.4
70.8
71.6
71.6

44.2
45.0
50.4
50.7
50.6

41.1
43.2
47.6
49.2
49.9

47.0
46.8
52.8
52.3
51.5

59.1
59.0
63.3
65.4
64.0

57.5
58.3
59.6
57.9
58.3

53.8
58.3
58.0
55.1
57.3

59.2
58.4
60.6
60.1
59.0

58.3
59.7
61.0
61.8
61.2

56.6
57.9
59.0
58.1
57.6

1940
1941
1942
1943
1944

58.6
63.5
71.2
77.3
78.8

58.7
62.6
70.0
76.5
80.8

57.4
61.9
69.2
76.2
85.6

52.0
56.6
65.8
73.4
77.6

72.0
74.5
78.5
82.7
86.3

51.7
56.0
61.6
69.2
74.7

51.5
56.3
59.9
65.2
71.6

51.9
55.6
63.1
71.9
76.1

66.0
70.6
76.4
77.2
78.3

58.5
66.3
73.0
77.6
76.0

55.9
67.3
73.4
77.9
75.8

60.7
64.3
70.0
74.8
77.8

59.9
57.2
60.9
64.1
69.7

58.5
64.1
72.5
79.9
80.7

81.2 83.8 90.6 80.8 88.5 76.8 77.0 76.8 79.3 76.9 76.4 81.8 77.9
89.5 90.3 92.2 88.6 92.9 83.3 83.4 83.3 87.4 91.0 92.2 88.8 91.9
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
105.5 105.7 104.3 105.9 105.9 111.4 112.0 110.9 108.1 104.9 100.8 110.8 104.5
106.6 104.8 105.1 102.3 108.9 110.7 109.2 112.0 113.3 108.2 104.6 113.6 111.0

81.8
89.2
100.0
105.6
106.2

1945
1946
1947
1948
1949

-.

106.2
113.5
115.3
116.8
117.7

105.1
112.0
111.3
111.7
109.0

111.4
116.1
120.0
125.0
128.1

113.9
123.9
126.9
132.4
133.4

107.7
116.0
117.6
119.0
119.9

115.0
118.3
|124. 7
!128. 9
134.1

107.2
115.8
117.0
118.1
118.6

1955
1956
1957 «

121.3 118.1 110.7 112.5 130.1 132.2 129.0 135.6 130.9 129.7 123.6 140.3 142.3
124.9 120.1 111.3 113.9 133.2 138.0 133.1 142.4 139.6 136.3 129.9 146.6 150.2
129.6 123.9 114.9 117.6 137.4 142.9 135.1 149.4 147.3 142.5 135.1 154.4 158.1

119.7
122.9
127.4

103.3
112.2
113.4
112.9
113.4

113.9
122.8
125.9
130.1
129.7

113.8
121.6
124.9
127.4
125.9

1950
1951
1952
1953
1954

115.7
125.7
126.4
127.8
128.1

111.3
121.3
122.3
121.2
125.2

108.0
119.9
119.0
116.3
119.2

115.3
124.3
130.6
134.6
137.3

1
Separate deflators are not available for total gross private domestic investment, change in business
inventories, and net foreign investment. For explanation of conversion of estimates in current prices to
those in 1947 prices, see National Income, 1954. Edition, A Supplement to the Survey of Current Business.
2
For definition, see footnote 3, Table F-3.
3 Gross national product less compensation of general government employees.
4
Preliminary estimates by Council of Economic Advisers.
Source: Department of Commerce (except as noted).




122

T A B L E F—6.—The Nation's income, expenditure, and saving, 1955—57
[Billions of dollars]
1955

Economic group

Consumers:
Disposable personal income
Personal consumption expenditures
Personal net saving. _
Business:
Gross retained earnings
Gross private domestic investment
Excess of investment (—)

Net receipts

270.2

287.2
254.4

39.8

280.4
19.6

20.0
40 9

60.6

44 0
63.6

65.9

—20 8

—25 6

— .4

-19.6

1.4
.4

3.3
-3.3

—1 4

101.1

109.0

115 7

21.5

24.0

27.5

79 6

85.0

88 2

98.6

104.2

114.1

21.5

24.0

27.5

77 1

Purchases of goods and services

80 2

86.6

Surplus or deficit (—)
on income and product account

GROSS N A T I O N A L P R O D U C T

300.0
267.2

15.8

Total government expenditures _
Less: Transfers, interest, and
subsidies (net)

Statistical discrepancy

1957 1

Excess
Excess
Excess
of reof reof reEx- ceipts ReEx- ceipts
Ex- ceipts
Re- pendReor ex- ceipts pend- or ex- ceipts pend- or exceipts itures
itures penditures pendpenditures
itures
itures
<-)
(-)
(-)

International:
Net foreign investment
Excess of receipts or investment (—)
Government (Federal, State, and
local):
Tax and nontax receipts or accruals
Less: Transfers, interest, and
subsidies (net)

1956

2.6
2.1

2.1
391.7

391.7

1.7

4 8
1.6
414.7

1 6
414.7

1 7
433.9

1.7
433.9

i Preliminary; fourth quarter by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Based on the national income and product statistics of the Department of Commerce (except
as noted).




123

TABLE F-7.—Personal consumption expenditures, 1929-57
[Billions of dollars]
Durable goods

Period

Nondurable goods

Total
personal
consumption Toextal
penditures

Services

Total

1929-

79.0

9.2

37. 7 19. 5

7.0 32.1 11.4 4.0 2. 6 14.0

19301931193219331934-

71.0
61.3
49.3
46.4
51.9

7.2
5.5
3.
3.5
4.2

34 0
28.9
22.8
22.3
26. 7

18J
14.7
11.4
10.9
12. 2

6.3
5.7
4.8
5.3
7.2

19351936193719381939..

56.3
62.6
67.3
64.
67.6

5.1
6.3
6.9
5.7
6.7

29. 3
32.8
35. 2
34.0
35.1

1.6
13.
15.2
L
16. 4
15.
15.7

7.9
9.1
9.8
9.5
10.1

19401941194219431944-

71.9
81.
89.7
100.5
109.

7.8
9.7
7.0
6.
6.8

37.2
43.2
51. 3
59. 3
65. 4

16.7
19.4
23.
1.7
27. 8

7.4
8.8
11.0
13. 4
30.6 14.

19451946194719481949-

121.7
146.
165.0
177.6
180.6

8.1
15.9
20.6
22.2
23.

73. 2 34. 1 16.5
,
.4
84. 5 40. 18.2
93.1 45. 18.8
98. 7 49. 19.6
1.4
9 48.8 18.5

19501951195219531954..

194.0
208.3
218.3
230.5
236.6

28. 6 12. 4
10. 9
26. 6 10. 4
29.8 13.
29.4 12. 6

1955..
19561957 «.

254.4 35. 6 17. 2 14. 2 4. 2 126. 0 66. 9 20. 6 7. 5 31. 0 92. 8 31.1 14.1 7. 5 40.1
267.2 33. 9 14. 14.8 4. 5 133. 3 71.3 21.8 8. 0 32. 2 99.
8 15.5 7. 7 43. 8
280.4 35.1
L7 4.7 140. 0 75.4 22. 3 8. 6 33. 7 105. 4 34. 5 16.3 7.9 46. 6

1.0
3.9
6.3
7.3
9. 5

4.
8.7
11.0
11.5
10. 9

29. 8 11.
26. 9 10.
22.9
20.7
21.0

3.9
3.5
3.0
2.8
3.0

2. 2 12. 7
1.9 11.2
1.6 9.3
1.5 8.5

21.
23.5
25.1
25.0
25.8

3.2
3.4
3.7
3.
3.

9.4
10.3
11. 1
10.7
11.0

2.3 10.
2.6 12.3
2.1 14.5
1. 3 16. 7
1.4 18.7

26.9 9.3 4.0
29. 0
31.5
34.7
37.7

i
10.. O
10.
11.3
11.9

11.4
12.3
13.1
14.7
16.3

1. 8 20.8
1.8
3. 6 25.1
4. 3 25.
4. 7 24.

40.4
i.
46. 2
51.
56.
60.1

17.5
12.4 6.4
1.8
1 20.
13.
6.7
5.4 7.4 5.5 23.0
17.5 8.0 5. 9 25..2
19.4 8.5 5. 8 26. 4

12. 9 3. 3 100. 4 51.0 18.5
.9
12. 7
111.1 58.3119.8 5. 5 27. 4
0 28.6
116.1 61. 4 20.1
12.5
119.
6. 6 29. 6
120. 6 64 19.7 6. 9 29. 7
12. 9

65. 0 21.
70. 1 23.
75.
81.7 27.6
86.6 29.5

4.3
4.8
5.2
5.9

9.4
10.3
11.1
12.0
12.6

5. 8 28. 5
6. 4 30. 0
6. 8 32. 1
7. 3 34. 8
7. 3 37. 2

Seasonally adjusted annual rates
1955: First quarter...
Second quarter.
Third quarter _
_
Fourth quarter.

247.4
252.1
258.3
259.9

34.' 16. 8 13. 9
1
35.3
37. 2 18. 5 14.5
35.4 16. 5 14. 4

1956: First quarter._.
Second quarter.
Third quarter..
Fourth quarter

262.8
265.0
268.
272.3

34.6 15.4 14.

1957: First quarter...
Second quarter.
Third quarter..
Fourth quarter

276.
278.9
283.
282.5

35.
35.
35.
34.

4.
33. 3 13. 8 15. 0 4.
33. 0 13. 7 14. 7 4.
34. 8 15. 3 14. 9 4.
9
0
0
5

16.
15.
15.
15.

122. 4 64. 8 19. 9
124. 8 66. 3 20. 6
6.
.
127. 4 68. 0 20. 8
129. 2 68. 6 21. 3
5
5
6
6

130.
132.
134.
135.

9
7
4
3

69.
70.
71.
72.

9
8
9
7

21. 0
21.
22. 3
22. 2

3 14. 9 4. 7 137. 3 74. 0 21.
5 14. 9
75. 5 22. 0
3 14. 9 4. 8 142. 5 76. 6 23.1
6 14.1 4. 8 141. 0 76.1 22.1

1 Quarterly data are estimates by Council of Economic Advisers.
2 Includes standard clothing issued to military personnel.
3
Includes imputed rental value of owner-occupied dwellings.
* Preliminary; fourth quarter by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




124

3 30.
5 30.

2
0
7
3

7 31.

90.
92.
93.
95.

7. 9 32.1
8. 0 32. 2
8. 0 32. 2
8. 3 32.1

97. 2
99. 0
101.1
102. 2

8.
8.
8.
8.

5
7
7
7

i.
30. 5 13. 5
I.
30. 9 13. 8
31. 3 14. 3
31 7

. 4 38.
. 4 39.
. 5 40.
. 6 41.

15.2
15.5
15. 7
15. 8

7. 7 42. 2
7. 7 43.
'.
7.
7. 8 45.1

32. 9 103. 4 33. 9 16. 0
32. 9 104. 9 34. 3 16. 2
34. 0 106.1 34.7
34.1 107. 0 35.0 16.6

7. 8 45. 7
7. 9 46. 5
7. 9 47.1
8.0 47. 4

32.1
32. 6
33. 2
33. 5

TABLE F-8.—Gross private domestic investment, 1929-57
[Billions of dollars]

Period

Farm equipment
Total Nonfarm producers'
and construction
plant and equipment
private
domestic
ConConinvest- Total Equip- struc- Total Equip- strucment 2 tions
ment tion
ment

Residential
construction
(nonfarm)

Net change in
Other business inventories
private
construcNontions Total farm 6 Farm

1929.

16.2

9 3

5.2

4.1

0.9

0.6

0.3

3.6

1.7

1.8

-0.2

1930..
1931.
1932.
1933..
1934.

10.3
5.5
.9
1.4
2.9

7.2
4.4
2.4
2.2
2.9

4.0
2.6
1.4
1.5
2.1

3.3
1.8
1.0

.7
.4
.2
.2
.3

.5
.3
.1
.1
.3

.2
.1
(7)

2.1
1.6
.6
.5

-.1
-1.6
-2.6
-1.4
.2

-.3
.3
(7)
-.3
-1.3

1935
1936
1937
1938
1939.

6.3
8.4
11.7
6.7
9.3

3.7
5.0
6.5
4.7
5.3

2.7
3.6
4.5
3.1
3.7

1.0
1.4
2.1
1.5
1.6

.5
.7
.8
.7
.7

.4
.5
.6
.5
.5

1
.1
.2
.2
.2
.2

-.4
.7
.5 - 1 . 3
.2 - 2 . 6
.1 - 1 . 6
.1 - 1 . 1

1.0
1.6
1.9
2.0
2.7

.1
.2
.2
.3

.9
1.0
2.2
-.9
.4

.4
2.1
1.7
-1.0
.3

.5
-1.1
.5
.1
.1

1940
1941.
1942
1943
1944.

13.2
18.1
9.9
5.6
7.1

5.3
4.6
6.2

4.9
6.1
3.7
3.5
4.7

2.0
2.5
1.6
1.1
1.5

.2
.3
.3
.3
.3

3.0
3.5
1.7

1.0

.6
.8
.7
.6
.7

2.2
4.5
1.8
-.8
-1.0

1.9
4.0
.7
-.6
-.6

.3
.5
1.2
-.2
-.4

1945.
19461947,
1948
1949-

10.4
27.1
29.7
41.2
32.5

9.2
14.8
20.7
23.5
21.7

6.9
10.0
15.0
16.8
15.3

2.3
4.8
5.7
6.7
6.4

1.0
1.6
3.0
3.9
4.0

.7
.7
1.6
2.3
2.5

.3
.9
1.4
1.5
1.5

1.1
4.0
6.3
8.6
8.3

.7
1.0
1.3

-1.1
6.1
-1.0
4.2
-2.7

-.6
6.4
1.3
3.0
-1.9

-.5
-.2
-2.3
1.1

1950.
19511952.
1953.
1954.

51.2
56.9
49.8
50.3
48.4

25.5
29.1
29.6
31.9
30.5

18.5
20.4
20.5
21.6
20.0

7.0
8.8
9.1
10.3
10.5

4.2
4.7
4.5
4.4
4.1

2.6
2.8
2.6
2.7
2.5

1.6
1.8
1.9
1.7
1.6

12.6
11.0
11.1
11.9
13.5

1.5
1.7
1.6
1.8
2.1

7.4
10.4
3.0
.3
-1.9

6.4
9.0
2.1
.9
-2.4

-.6
.5

1955.
1956.
1957*

60.6
65.9
63.6

33.3
39.5
42.0

21.2
25.7
27.6

12.1
13.8
14.4

4.1
4.0
4.4

2.5
2.4
2.9

1.6
1.6
1.6

16.6
15.3
14.2

2.3
2.6
3.0

4.2
4.6

(0

4.0
5.0
.3

.3
-.5
-.3

(0

0.7

Seasonally adjusted annual rates
1955:
First quarter
Second quarter.
Third quarter..
Fourth quarter.

30.2
31.9
34.7
36.4

18.9
20.0
22.5
23.5

11.4
11.9
12.3
12.9

4.0

16.3

2.3

4.1
4.3
4.0

2.4
2.5
2.7
2.4

1.6

59.7
61.4
65.4

1.6
1.6
1.6

16.8
16.7
16.4

2.4
2.3
2.3

2.7
4.6
3. 3
6.3

2.2
4.2
3.1
6.3

1956:
First quarter
Second quarter.
Third quarter..
Fourth quarter.

64.4
65.3
65.5
68.5

37.6
39.0
40.3
41.2

24.2
25.0
26.4
27.2

13.4
14.0
13.9
14.0

3.6
3.8
4.2
4.3

2.1
2.2
2.6
2.7

1.6
1.6
1.6
1.6

15.7
15.5
15.1
15.1

2.3
2.5
2.6
2.8

5.2
4.6
3.3
5.1

5.4
5.0
3.9
5.7

1957:
First quarter
Second quarter.
Third quarter.8 .
Fourth quarter .

62.7
65.0
65.5
61.0

42.0
42.0
42; 1
42.0

27.9
27.6
27.7
27.2

14.1
14.4
14.4
14.8

4.3
4.6
4.4
4.4

2.8
3.0
2.8
2.8

1.5
1.6
1.6
1.6

14.4
13.7
14.0
14.5

2.9
3.0
3.0
3.1

-.8
1.7
2.0
-3.0

-.3
2.2
2.3
-3.0

55.6

1

-.5
-.5
-.3

CO

Items for nonfarm producers' plant and equipment are not comparable with those shown in Table F-28
principally because the latter exclude equipment and construction outlays charged to current expense and
also investment by nonprofit organizations and professional persons.
2
Total producers' durable equipment less farm machinery and equipment, and farmers' purchases of
tractors and business motor vehicles.
3
Industrial buildings, public utilities, gas- and oil-well drilling, warehouses, office and loft buildings,
stores, restuarants, and garages.
* Farm construction (residential and nonresidential) plus farm machinery and equipment, and farmers'
purchases of tractors and business motor vehicles. (See footnote 2.)
s Includes religious, educational, social and recreational, hospital and institutional, miscellaneous nonresidential, and all other private construction.
6
After inventory valuation adjustment.
7
Less than 50 million dollars.
s Preliminary; fourth quarter by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




125

TABLE F-9.—National income by distributive shares, 1929-57
[Billions of dollars]
Business and proCorporate profits
fessional income
and inventory
and inventoryvaluation
valuation
adjustment
adjustment » In- RentComcome al inTotal penna- sation
of
Net
In- farm come
tional of emInIninof
in- 1 ploycome ven- pro- perCor- ven- terest
come ees 2
tory prietory
of
3 sons
porate valuunin- valuTotal corpo- ation tors
Total profits ation
before adrated adtaxes< justenter- justment
prises ment

Period

1930
1931
1932
1933
1934

10.1

87.8

51.1

8.8

8.6

0.1

6.0

5.4

75.7
59.7
42.5
40.2
49.0

46.8
39.7
31.1
29.5
34.3

7.4
5.6
3.4
3.2
4.6

6.7
5.0
3.1
3.7
4.6

.8
.6
.3
-.5
-.1

4.1
3.2
1.9
2.4
2.4

4.8
6.6
3.8
1.6
2.7 - 2 . 0
2.0 - 2 . 0
1.7
1.1

57.1
64.9
73.6
67.6
72.8

37.3
42.9
47.9
45.0
48.1

5.4
6.5
7.1
6.8
7.3

5.4
6.6
7.1
6.6
7.5

()
.2
-.2

5.0
4.0
5.6
4.3
4.3

1.7
1.8
2.1
2.6
2.7

2.9
5.0
6.2
4.3
5.7

81.6
104.7
137. 7
170.3
182.6

52.1
64.8
85.3
109.6
121.3

8.4

8.5

10.9
13.9
16.8
18.0

11.5
14.3
17.0
18.1

-.6
-.4
-.2
-.1

4.6
6.5

10.0
11.4
11.5

2.9
3.5
4.5
5.1
5.4

181.2
179.6
. _ 197.2
.
221.6
216.2

123.2
117.7
128.8
140.9
140.9

19.0
21.3
19.9
21.6
21.4

19.1 - . 1
23.0 - 1 . 7
21.4 - 1 . 5
22.1 - . 4
.5
21.0

11.8
13.9
14.5
16.7
12.7

240.0
277.0
290.2
302.1
299.0

LS4.3
180.4
195.1
208.1
206.8

22 9
24.8
25.7
25.9
25.9

24.0 - 1 . 1
25.1 - . 3
.2
25.5
26.1 - . 2
-.1
25.9

13.3
16.0
15.1
13.3
12.7

324.1
343.6
358.5

223.1
241.4
254.3

27.3
28.0
28.7

27.6
28.6
28.9

11.9
11.6
11.6

1929
_

._
-

1935
1936
1937
1938
1939

,

1940.
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954

_

1955
1956
1957 6

-.3

0.5

6.4

3.3
2.4
-3.0
1.0
.2
1.7 - 2 . 1

6.0
5.8
5.4
5.0
4.9

9.6
3.3
-.8

()
1.0
-.7

4.8
4.7
4.7
4.6
4.6

14.5
19.7
23.8
23.0

9.3 - . 2
17.0 - 2 . 5
20.9 - 1 . 2
24.6 - . 8
23.3 - . 3

4.6
4.5
4.3
3.7
3.3

5.6
6.2
6.5
7.2
7.9

18.4
17.3
23.6
30.6
28.1

19.0
22.6 - 5 . 3
29.5 - 5 . 9
32.8 - 2 . 2
1.9
26.2

3.2
3.1
3.8
4.5
5.2

8.5
9.1
9.9

10.2
10.6

35.1
39.9
36.9
36.0
33.1

40.0 - 4 . 9
41.2 - 1 . 3
1.0
35.9
37.0 - 1 . 0
-.3
33.5

5.9
6.8
7.4
8.7
9.8

10.2
10.3
10.4

40.7
40.4
40.6

42.5 - 1 . 7
43.0 - 2 . 6
42.0 -1.4

10.9
11.9
12.9

9.1

3.1
5.7
6.2
3.3
6.4

-.2

Seasonally adjusted annual rates
1955: First quarter....
Second quarter..
Third quarter...
Fourth quarter..

311.4
321.5
328.3
334.9

214.0
221.3
226.1
230.8

26.7
27.3
27.6
27.8

26.8
27.6
27.9
28.1

-.1
-.3

1956: First quarter
Second quarter.
Third quarter. _.
Fourth quarter.

335.8
340.6
344.5
353.3

234.5
240.0
242.7
247.9

27.7
28.0
28.2
28.3

28.3
28.7
28.5
28.8

1957: First quarter....
Second quarter..
Third quarter...
Fourth quarter 6.

355.1
358.1
362. 2

251.1
254.0
257.0
255.0

28.4
28.7
29.1
28.5

28.9
29.0
29.2
28.8

(7)

1

-!4

11.7
12.1
11.9
11.7

10.4
10.2
10.1
10.1

38.2
39.9
41.6
43.2

39.4 - 1 . 2
40.7 - . 9
43.6 - 2 . 0
46.1 - 2 . 9

10.5
10.7
11.0
11.3

-.6
-.7
-.4
-.6

11.4
11.5
11.5
12.0

10.2
10.3
10.4
10.4

40.5
39.1
39.8
42.4

43.3
42.4
40.8
45.6

-2.8
-3.2
-1.0
-3.2

11.5
11.7
12.0
12.3

-.5
-.3
-.1
-.3

11.5
11.7
11.8
11.5

10.4
10.4
10.4
10.4

41.2
40.7
40.9

43.9 - 2 . 7
42.0 - 1 . 3
41.8 - . 9

12.5
12.7
13.0
13.3

o

(7)

(7)

(7)

National income is the total net income earned in production. It differs from gross national product
mainly in that it excludes depreciation charges and other allowances for business and institutional consumption of durable capital goods, and indirect business taxes. See Table F-10.
2
Wages and salaries and supplements to wages and salaries (employer contributions for social insurance;
employer contributions to private pension, health, and welfare funds; compensation for injuries; directors'
fees; pay of the military reserve: and a few other minor items).
3
Excludes income resulting from net reductions of farm inventories and gives credit in computing
income to net additions to farm inventories during the period.
4
See Table F-56 for corporate tax liability (Federal and State income and excess profits taxes) and
corporate profits after taxes.
« Less than 50 million dollars.
6
Preliminary; fourth quarter by Council of Economic Advisers.
7 Not available.
NOTE.—Detail wUl not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




126

T A B L E F-10.—Relation of gross national product and national income, 1029—57

[Billions of dollars]

Period

Plus:
Less: Capital conLess:
Subsumption allowances
Gross
Equals: sidies
less
naNet
tional
na- iurrent Indirect business Busiprodtional surplus
Depretax
ness
uct Total ciation Other prod- of govtransuct
charges
ernfer
ment
State payenter- Total Fed- and ments
prises
eral local

Equals:
Sta- Natisti- tional
cal ncome
discrepancy

1929..

104.4

8.6

7.7

0.9

95.8

7.0

1.2

5.8

0.6

0.3

87.8

1930..
1931..
1932..
19331934..

91.1
76.3
58.
56.0
65.0

8.5
8.2
7.6
7.2
7.1

7.7
7.6
7.0
6.7

.8
.6
.6
.5
.5

82.6
68.1
50.9
48.8
57.9

7.2
6.9
6.8
7.1
7.8

1.0
.9
.9
1.6
2.2

6.1
6.0
5.8
5.4
5.6

.5
.6
.7
.7
.6

-1.0
.8
.8
.9
.7

75.7
59.7
42.5
40.2
49.0

1935..
1936..
19371938..

72.5
82.
90.8
85.2
91.1

7.2
7.5
7.7
7.8
7.8

6.7
6.7
6.9
6.9
7.1

.6

.7

65.3
75.2
83.0
77.4
83.3

8.2
8.7
9.2
9.2
9.4

2.2
2.3
2.4
2.2
2.3

6.0
6.4
6.8
6.9
7.0

.6
.6
.6
.4
.5

-.2
1.1
-.2
.5
1.2

57.1
64.9
73.6
67.6
72.8

1940
1941
1942
1943
1944

100.6
125.8
159.1
192.5
211.

8.1
9.0
10.2
10.9
12.0

7.3
8.1
9.2
9.9
10.8

.8
1.0
1.0
1.0
1.2

92.5
116.8
149.0
181.6
199.4

10.0
11.3
11.8
12.7
14.1

2.6
3.6
4.0
4.9
6.2

7.4
7.7
7.7
7.8
8.0

.4
.5
.5
.5
.5

.8
.4
-.8
-1.7
2.8

81.6
104.7
137.7
170.3
182.6

1945
1946
1947
1948
1949

213.6
209.2
232.2
257.3
257.3

12.5
11.7
14.1
16.5
18.4

11.2
10.0
12.2
14.3
16.4

1.3
1.7
2.0
2.
2.1

201.0
197.6
218.1
240.8
238.9

15.5
17.3
18.7
20.4
21.6

7.1
7.9
7.9
8.1
8.2

8.4
9.5

10.8
12.3
13.5

.5
.6
.7
.7
.8

4.5
.9
1.4
-2.1
.1

181.2
179.6
197.2
221.6
216.2

1950
1951
1952
1953
1954

285.1
328.2
345.4
363.2
361.2

20.5
23.5
23.9
26.5
28.9

18.0
20.3
21.0
23.3
25.6

2.5
3.1
2.9
3.
3.3

264.6
304.8
321.6
336.
332.2

23.7
25.6
28.1
30.2
30.1

9.0
9.5

10.5
11.2
10.1

14.7
16.1
17.6
19.0
20.1

.8
1.0
1.2
1.4
1.3

.2
1.3
2.0
2.6
1.7

240.0
277.0
290.2
302.1
299.0

1955
1956
1957 »

391.7
414.
433. S

31.6
34.3
37.1

28.1
30.6
33.3

3.7
3.8

360.1
380.4
396.8

32.9
35.0
36.9

11.0
11.6
12.3

21.8
23.4
24.6

1.3
1.3
1.3

2.1
1.6
1.7

324.1
343.6
358.5

-0.1

1.1
1.6

Seasonally adjusted annual rates
1955:
First quarter
Second q u a r t e r Third quarter.F o u r t h quarter .

379.0
387.7
397.0
402.8

30.6
31.4
32.0
32.6

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

348.4
356.3
365.0
370.2

.1
.7
0
.1

31.5
32.8
33.2
34.0

10.6
11.3
11.0
11.3

20.9
21.5
22.2
22.7

1.3
1.3
1.3
1.3

4.4
1.4
2.3
.1

311.4
321.5
328.3
334.9

1956:
First q u a r t e r . . . .
Second q u a r t e r .
T h i r d quarter - .
Fourth quarter.

405.2
410.8
416.7
426.0

33.3
33.9
34.6
35.3

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

371.9
376.9
382.1
390.7

.8
1.0
1.1
1.6

34.1
34.7
35.1
36.1

11.1
11.3
11.5
12.3

23.0
23.4
23.6
23.8

1.3
1.3
1.3
1.3

1.5
1.3
2.3
1.6

335.8
340.6
344. 5
353.3

1957:
First q u a r t e r . _.
Second quarter _
Third quarter.
F o u r t h quarter 3

429.1 36.1
434.3 36.6
439.0 37.4
433.0 38.2

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

393.0
397.7
401.6
394.8

1.4
1.6
1.7
1.7

36.4
36.6
37.1
37.4

12.2
12.1
12.3
12.3

24.2
24.5
24.8
25.1

1.3
1.3

- 1.6

355.1
358.1
362.2

1
Accidental damage tofixedcapital and capital outlays charged to current account.
2 Less than 50 million dollars.
3 Preliminary; fourth quarter by Council of Economic Advisers.
* Not available.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




127

1.3
,3

3.3
2.7
«

T A B L E F—11.—Relation of national income and personal income^ 1929—57
[Billions of dollars]
Less:
CorpoExcess
rate
of
profits ContriNational and in- butions wage
income
acfor
ventory
social cruals
over
valu- insurdisation
ance
burseadjustments
ment

Period

Equals:

Plus:

Government
transfer
payments

Net
interest
paid
by
government

Dividends

Business
transfer
payments

Personal

L929

87.8

10.1

0.2

0.9

1.0

5.8

0.6

85.8

1930 . .
1931
1932
1933 . .
1934

75.7
59.7
42.5
40.2
49.0

6.6
1.6
-2.0
-2.0
1.1

.3
.3
.3
.3
.3

1.0
2.1
1.4
1.5
1.6

1.0
1.1
.1
.2
.2

5.5
4.1
2.6
2.1
2.6

.5

76.9
65.7
50.1
47.2
53.6

1935
1936
1937
1938
1939

57.1
64.9
73.6
67.6
72.8

2.9
5.0
6.2
4.3
5.7

.3
.6
1.8
2.0
2.1

1.8
2.9
1.9 j
2.4 !
2.5

.1
.1
.2
.2
.. 2

2.9
4.5
4.7
3.2
3.8

4
5

60.2
68.5
73.9
68.6
72.9

81.6
104.7
137.7
170 3
182.6

9.1
14.5
19.7
23.8
23.0

2.3
2.8
3.5
4.5
5.2

2.7 1
2.6
2.6
2.5
3.1

.3
.3
.5
2.1
2.8

4.0
4.5
4.3
4.5
4.7

4
5
5
5
5

78.7
96.3
123.5
151. 4
165.7

181.2
179.6
197.2
221.6
216.2

18.4
17.3
23.6
30.6
28.1

6.1
6.0
5.7
5.2
5.7

5.6
10.9
11.1
10.5
11.6

3.7
4.5
4.4
4.6

4.7
5.8
6.5
7.2
7.5

5
6
7
7
8

171.2
178.0
190.5
208.7
206.8

240.0
277.0
290.2
302.1
299.0

35.1
39.9
36.9
36.0
33.1

6.9
8.2
8.6
8.7
9.7

14.3
11.6
12.0
12.9
15.0

4.7
4.8
4.9
5.0
5.2

9.2
9.1
9.0
9.3
9.9

8
1. 0
1. 2
1. 4
1. 3

227.0
255.3
271.8
286.0
287.4

324.1
343.6
358.5

40.7
40.4
40.6

11.0
12.4
14.4

16.1
17.2
19.9

5.2
5.7
6.0

11.0
11.9
12.3

1. 3
1. 3
1. 3

305.9
326.9
342.9

1940
1941
1942
1943
1944
1945
1946
1947
19481949

-

- -

1950
1951
1952
1953
1954
1955.--

. --. .

1956
1957 1

0.2
-.2

-.1

4.4 j

Seasonally adjusted annual rates
1955: First quarter
Second quarter._
Third quarter...
Fourth quarter..

311.4
321. 5
328.3
334.9

38.2
39.9
41.6
43.2

10.6
10.8
11.3
11.4

1956: First quarter
Second quarter..
Third quarter...
Fourth quarter..

335.8
340.6
344.5
353.3

40.5
39. 1
39.8
42.4

1957: First quarter
Second quarter..
Third quarter-..
Fourth quarter i.

355.1
358.1
362.2

41.2
40.7
40.9
(2)

.1
.5
-.6

15.7
16.1
16. 1
16.2

5.2
5.1
5.2
5.3

10.2
10.4
10.8
12.0

1.3
1.3
1.3
1.3

294.8
303.3
309.4
315.2

12.0
12.2
12.5
12.8

16.6
17.1
17.4
17.7

5.5
5.7
5.8
5.9

11.7
12.0
12.1
11.5

1.3
1.3
1.3
1.3

318.5
325.3
328.7
334.5

14.2
14.3
14.6
14.5

18.4
20.0
20.0
21.3

6.0
6.0
6.0
6.1

12.4
12.5
12.6
11.7

1.3
1.3
1.3
1.3

337.7
342.8
346.5
344.5

1

Preliminary; fourth quarter by Council of Economic Advisers.
Not available.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).

2




128

TABLE F-12.—Sources of personal income, 1929—57
[Billions of dollars]

Period

Labor
Proprietors'
Less:
income
income 2
Perwage and
Nonsonal
Rental
Per- Trans- contri- agriculsalary
Total
income Divi- sonal fer pay- butions tural
personal disbursedends interest ments
Busiof
income ments
personal
for
income
and other F a r m ness and persons
social ncome 3
profeslabor 1
insursional
income)
ance

1929..

85.8

51.0

6.0

8.8

5.4

5.8

1930..
1931..
1932..
1933..
1934..

76.9
65.7
50.1
47.2
53.6

46.7
39.6
30.9
29.4
34.1

4.1
3.2
1.9
2.4
2.4

7.4
5.6
3.4
3.2
4.6

4.8
3.8
2.7
2.0
1.7

5.5
4.1
2.6
2.1
2.6

6.9
6.9
6.6
6.2
6.1

1.5
2.7
2.2
2.1
2.2

.1
.2
.2
.2
.2

70.8
60.9
46.9
43.6
49.8

1935..
1936..
1937..
1938..
1939..

60.2
68.5
73.9
68.6
72.9

37.2
42.5
46.7
43.6
46.6

5.0
4.0
5.6
4.3
4.3

5.4
6.5
7.1
6.8
7.3

1.7
1.8
2.1
2.6
2.7

2.9
4.5
4.7
3.2
3.8

5.9
5.8
5.9
5.8
5.8

2.4
3.5
2.4
2.8
3.0

.2
.2
.6
.6
.6

53.9
63.2
67.0
62.8
67.1

1940..
1941..
1942..
1943..
1944..

78.7
96.3
123.5
151.4
165.7

50.5
62.8
83.0
106.7
118.5

4.6
6.5
10.0
11.4
11.5

8.4
10.9
13.9
16.8
18.0

2.9
3.5
4.5
5.1
5.4

4.0
4.5
4.3
4.5
4.7

5.8
5.8
5.8
5.8
6.2

3.1
3.1
3.1
3.0
3.6

.7
.8
1.2
1.8
2.2

72.6
88.0
111.5
137.6
151.6

1945..
1946..
1947..
1948..
1949..

171.2
178.0
190.5
208.7
206.8

119.4
113.8
125.2
137.9
137.4

11.8
13.9
14.5
16.7
12.7

19.0
21.3
19.9
21.6
21.4

5.6
6.2
6.5
7.2
7.9

4.7
5.8
6.5
7.2
7.5

6.9
7.6
8.2
9.0

6.2
11.4
11.8
11.3
12.4

2.3
2.0
2.1
2.2
2.2

156.8
161.1
172.8
188.5
190.8

1950..
1951..
1952..
1953..
1954..

227.0
255.3
271.8
286.0
287.4

150. 3
175.6
190.3
203.4
201.7

13.3
16.0
15.1
13.3
12.7

22.9
24.8
25.7
25.9
25.9

8.5
9.1
9.9
10.2
10.6

9.2
9.1
9.0
9.3

10.6
11.6
12.3
13.7
15.0

15.1
12.6
13.2
14.3
16.2

2.9
3.4
3.8
39
4^6

210.5
235. 7
253.1
269.2
271.3

1955..
1956..
1957 «

305.9
326.9
342.9

217.3
234.8
246.6

11.9
11.6
11.6

27.3
28.0
28.7

10.2
10.3
10.4

11.0
11.9
12.3

16.1
17.6
18.8

17.4
18.5
21.2

5.2
5.7

290.6
311.7
327.6

77.7

1.5

Seasonally adjusted annual rates
1955: First quarter
Second quarterThird quarter..
Fourth quarter.

294.8
303.3
309.4
315.2

208.3
215. 2
220.7
224.7

11.7
12.1
11.9
11.7

26.7
27.3
27.6
27.8

10.4
10.2
10.1
10.1

10.2
10.4
10.8
12.0

15.6
15.8
16.2
16.7

17.0
17.4
17.4
17.5

5.0

5.1
5.3
5.3

279.7
287.7
294.0
300.0

1956: First quarterSecond quarterThird quarter.Fourth quarter.

318.5
325. 3
328.7
334.5

228.2
233.6
235. 9
241.0

11.4
11.5
11.5
12.0

27.7
28.0
28.2
28.3

10.2
10.3
10.4
10.4

11.7
12.0
12.1
11.5

17.0
17.4
17.8
18.2

17.9
18.4
18.7
18.9

5.6
5.7
5.7
5.9

303.4
310.2
313.6
318.9

1957: First quarter..
Second quarter.
Third quarter..
Fourth quarter

337.7
342.8
346.5
344.5

243.6
246.4
249.2
247.3

11.5
11.7
11.8
11.5

28.4
28.7
29.1
28.5

10.4
10.4
10.4
10.4

12.4
12.5
12.6
11.7

18.5
18.7
19! 0
19.3

19.7
21.3
21.3
22.6

6.7
6.8
6.9
6.8

322.6
327.4
331.0
329.4

1
The total of wage and salary disbursements and other labor income differs from condensation of employees in Table F-9 in that it excludes employer contributions for social insurance and excludes the excess
of 2wage accruals over wage disbursements.
Excludes income resulting from net reductions of inventories and gives credit in computing income
to3net additions to inventories during the period.
Nonagricultural income is personal income exclusive of net income of unincorporated farm enterprises,
farm wages, agricultural net interest, and net dividends paid by agricultural corporations.
4
Preliminary; fourth quarter by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




129

TABLE F-13.—Disposition of personal income, 1929-57

Period

Personal
income

Less:
Personal
taxes »

Less:
Equals: Personal
DisposEquals:
conable
Personal
personal sumption saving
expendiincome
tures

Saving as
percent
of disposable
personal
income
(percent)2

Billions of dollars
1929.-

85.8

2.6

83.1

79.0

4.2

5.0

1930-.
1931..
1932..
1933-.
1934..

76.9
65.7
50.1
47.2
53.6

2.5
1.9
1.5
1.5
1.6

74.4
63.8
48.7
45.7
52.0

71.0
61.3
49.3
46.4
51.9

3.4
2.5
-.6
-.6
.1

4.6
3.9
-1.3
-1.4
.2

1935..
1936..
1937..
1938-.
1939..

60.2
68.5
73.9
68.6
72.9

1.9
2.3
2.9
2.9
2.4

58.3
66.2
71.0
65.7
70.4

56.3
62.6
67.3
64.6
67.6

2.0
3.6
3.7
1.1
2.9

3.5
5.4
5.3
1.6
4.1

1940..
1941..
1942..
1943..
1944-.

78.7
96.3
123.5
151.4
165.7

2.6
3.3
6.0

17.8
18.9

76.1
93.0
117.5
133.5
146.8

71.9
81.9
89.7
100.5
109.8

4.2
11.1
27.8
33.0
36.9

5.5
11.9
23.6
24.7
25.2

1945..
1946-.
1947-,
1948-.
1949..

171.2
178.0
190.5
208.7
206.8

20.9
18.8
21.5
21.1
18.7

150.4
159.2
169.0
187.6
188.2

121.7
146.6
165.0
177.6
180.6

28.7
12.6
4.0
10.0
7.6

19.1
7.9
2.4
5.3
4.0

1950..
1951..
1952..
1953..
1954-

227.0
255.3
271.8
286.0
287.4

20.9
29.3
34.4
35.8
33.0

206.1
226.1
237.4
250.2
254.5

194.0
208.3
218.3
230.5
236.6

12.1
17.7
19.0
19.7
17.9

5.9
7.8
8.0
7.9
7.0

1955-.
1956-.
1957 3.

305.9
326.9
342.9

35.8
39.7
43.0

270.2
287.2
300.0

254.4
267.2
280.4

15.8
20.0
19.6

5.8
7.0
6.5

Seasonally adjusted annual rates
1955; First quarter
Second quarter..
Third quarter...
Fourth quarter..

294.8
303.3
309.4
315.2

34.7
35.5
36.2
36.6

260.1
267.8
273.2
278.6

247.4
252.1
258.3
259.9

12.7
15.7
14.9
18.7

4.9
5.9
5.5
6.7

1956: First quarter
Second quarter..
Third quarter...
Fourth quarter..

318.5
325.3
328.7
334.5

38.9
39.5
39.8
40.5

279.6
285.8
288.8
294.0

262.8
265.0
268.6
272.3

16.8
20.8
20.3
21.7

1957: First quarter
Second quarter..
Third quarter. _.
Fourth quarter 3.

337.7
342.8
346.5
344.5

42.2
42.9
43.6
43.5

295.5
299.9
302.9
301.0

276.7
278.9
283.6
282.5

18.9
21.0
19.3
18.5

6.0
7.3
7.0
7.4
6.4
7.0
6.4
6.1

1
Includes also such items as fines, penalties, and donations.
2 Annual percentages are based on data in millions of dollars, and may therefore differ slightly from percentages computed on the basis of figures shown in this table.
3
Preliminary; fourth quarter by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.

Source: Department of Commerce (except as noted).




I3O

TABLE F-14.—Total and per capita disposable personal income and personal consumption
expenditures, in current and 1957 prices, 1929-57

Period

Total disposable Per capita dispersonal income posable personal
(billions of
income (dollars)
dollars)

Total personal
consumption
expenditures
(billions of
dollars)

Current 1957 ] Current 1957 Current
prices prices
prices prices' prices

1957
prices

Per capita personal consumption expenditures (dollars)

]

Population
(thousands) 2

Current 1957 ]
prices prices

1929..

83.1

136.0

682

1,116

79.0

129.2

19301931..
1932..
1933..
1934..

74.4
63.8
48.7
45.7
52.0

125.0
117.8
99.9
99.2
109.0

604
514
389
364
411

1,015
948
799
790
862

71.0
61.3
49.3
46.4
51.9

119.3
113.2
101.2
100.6
108.8

576
494

19351936..
1937..
19381939..

58.3
66.2
71.0
65.7
70.4

119.3
134.1
138.7
130.9
142.3

458
517
551
.505
538

937
1,047
1,076
1,006
1,087

56.3
62.6
67.3
64.6
67.6

115.1
126.8
131.4
128.8
136.5

1940..
1941..
1942..
19431944..

76.1
93.0
117.5
133.5
146.8

152.5
177.4
202.3
216.4
234.1

576
697
871
977
1,060

1,154
1,330
1,499
1,583
1,691

71.9
81.9
89.7
100.5
109.8

19451946..
1947..
19481949..

150.4
159.2
169.0
187.6
188.2

234.6
229.0
212.3
218.9
221.9

1,075
1,126
1,173
1,279
1,261

1,677
1,620
1,474
1,492
1,487

195019511952..
19531954-

206.1
226.1
237.4
250.2
254.5

240.5
244.4
250.9
262.6
265.9

1,359
1,465
1,512
1,568
1,567

195519561957«.

270.2
287.2
300.0

283.2
296.7
300.0

1,635
1,708
1,752

1,061

121,875

410

911
811
800
860

123,188
124,149
124,949
125,690
126,485

442
488
522
497
516

904
988
1,020
990
1,042

127,362
128,181
128,961
129,969
131,028

144.0
156.2
154.5
163.0
175.2

544
614
665
735
794

1,090
,172
,145
,191
,266

132,122
133,402
134,860
136,739
138, 397

121.7
146.6
165.0
177.6
180.6

189.9
211.0
207.3
207.2
213.0

870
1,037
1,145
1,211
1,211

,357
,492
,438
,413
,428

139,928
141,389
144,126
146,631
149,188

1,586
1,584
1,598
1,645
1,637

194.0
208.3
218.3
230.5
236.6

226.4
225.2
230.8
241.9
247.2

,279
,350
,390
,444
,456

,492
,459
,469
,515
1,521

151,683
154,360
157,028
159,636
162,417

1,714
1,764
1,752

254.4
267.2
280.4

266.7
276.0
280.4

,539

1,613
1,642
1,638

165, 270
168,174
171, 229

Seasonally adjusted annual rates
1955: First quarter
Second quarter..
Third quarter...
Fourth quarter..

260.1
267.8
273. 2
278.6

273.2
281.3
285.8
290.8

1956: First quarter
Second quarter..
Third quarter._.
Fourth quarter..

279.6
285.8
288.8
294.0

292.8
297.1
296.2
299.4

1957: First quarter
Second quarter..
Third quarter. _.
Fourth quarter 3

295.5
299.9
302.9
301.0

299.1
300.5
300.5
297.4

1,583
] ,624
1,649
] ,674

1,663
1,706
1,725
1,747

247.4
252.1
258.3
259.9

259.9
264.8
270.2
271.3

1,506
1,528
1,559
1,561

1,582
1,605
1,631
1,629

164,288
164,934
165, 662
166,452

,673
L,703
1,713
L,735

1,752
1,770
1, 757
1,767

262.8
265.0
268.6
272.3

275.2
275.5
275.5
277.3

1,572
1, 579
1,593
1,607

1,646
1,641
1,634
1,636

167,150
167,824
168, 594
169,416

1,737
1,755
1,765
1,746

1,758
1,759
1,751
1,725

276.7
278.9
283.6
282.5

280.1
279.5
281.3
279.2

1,626
1,632
1,652
1,638

1,646
1,635
1,639
1,619

170,158
170,859
171,650
172, 440

:

i Dollar estimates in current prices divided by the consumer price index on a 1957 base. Personal consumption expenditures in this table therefore differ from the data in Table F-2.
8
Population of the continental United States including armed forces overseas. Annual data are for
July 1; quarterly data are for middle of period.
3 Preliminary; fourth quarter by Council of Economic Advisers.
NOTE.—Annual figures for total income and expenditures in 1957 prices and for per capita income and
expenditures in current prices are computed from data in millions of dollars.
Sources: Department of Commerce, Department of Labor, and Council of Economic Advisers.




TABLE F-15.—Financial saving by individuals, 1939-57
[Billions of dollars]

Period

Currency
and
Total bank
deposits 2

Private in- GovSecurities
surance and ernSavpension
ment
ings
reserves insurand
ance
loan
and
assoU. S. Other Corpenciasav[nsur- Pen- sion
tions Totals ings govern- and ance sion
rebonds ment 4 other
serves
Old series

1939

4.25

1940
1941
1942
1943
1944

4.24
10.52
29.30
38.71
41.41

2.88
4.80
10.95
16.18
17.55

1945
1946
1947
1948
1949
1950
1951

Less: Increase
in debt

Mort- Congage sumer
debt 5 debt «

J

0.04 -0.53

0.66 -0.83 -0.36

1.72

(7)

1.30

.20
.36
.26
.55
.81

-.17
2.83
10.25
13.83
14.96

2.75
7.98
11.14
11.80

-.81 -.22
.44 - . 3 6
.09
2.17
2.88 - . 2 0
3.89 - . 7 3

1.85
2.14
2.49
2.85
3.21

(7)
(7)
(7)
(7)
(7)

1.30
1.86
2.55
3.92
4.96

37.39 19.06
13.74 10.56
6.67
2.01
2.99 -1.84
2.86 -1.46

1.06
1.18
1.20
1.21
1.51

9.36

6.85

.89

.90

3.43 - . 9 2
.65
-.65

3.51
3.22
3.03

.98

3.46
3.42
3.64
3.75
3.71

(7)
(7)
(7)
(7)
(7)

5.14
3.55
3.49
3.57
2.34

3.60
4.46
4.61
3.87

1.80
10.88

1.51
2.10

2.04
2.05

1.36
2.59

3.92
4.06

(7)
(7)

1.09
4.24

7.16
6.58

3.00

3.62
5.95

.86

.89
1.78
2.13 - . 4 3
.52
1.53
.55

.12

-.47

-.07

.84

1.52

0.50
.84
.97
.66
.82
.09 -2.89

- . 3 8 -1.01
.14
-.06
.20

.48
2.28
2.73
2.31
2.40
3.22

New series !
1951 i
1952
1953
1954

10.90
12.95
10.67
9.02

6.05
7.15
4.97
5.44

2.07
3.05
3.64
4.45

1955
1956

7.40
14.41

4.44
4.71

4.76
5.08

5.66
6.72

1955: First quarter._.
Second quarter.
Third quarter..
Fourth quarter
1956: First quarter...
Second quarter.
Third quarter..
Fourth quarter.

2.00
-.66
3.42
2.63

-.55

1.12
1.42

3.22
2.02

1.56

1.67
1.14
1.79
1.06

5.04
2.04
3.66
3.67

-.08

1.12
1.61

1957: First quarter...
Second quarter.
Third quarter..

5.93
3.24
4.74

.21
.53

.09
.83
.20 1.74
.60 -1.20

2.71
3.02
-.69

-.25

.24

1.61
2.94

1.95

.67

.71

1.53
1.79
1.09
-.08

3.11
3.78
3.92
4.21

2.30
2.73
2.84
3.11

4.24
4.40
3.24
2.63

6.60
6.52
7.30
9.17

4.36
3.65
.96

3.24
3.80

2.15
3.02

4.20
4.28

3.35
3.61

3.09
3.68

12.01
10.59

6.09
3.08

1.10

.37
.28
.61
.89

1.07

.84
.84
.84
.84

1.00

.90
.90
.90
.90

1.62

.98
.98
.98

1.23

-.47

.27

-.10
.20
.02

-.34

.84

-.01

1.19

3.32

.16

2.54

.96

1.72

1.67

.72

-.08
-.08
-.10

.49
.69
.08

1.01
1.64

3.34
1.65
2.43

-.58
-.46
-.49

2.17

.68

.51

.06

.11

.55

1.77

.85

1.15
1.13

.62
.55

.97
.95

1.11

.74

1.18
1.19

1.75
1.57
1.15

1.23

.95
.85

.45
.98
.67
.82
.98
.25
.50
.59

2.72 - . 1 2
3.33 2.32
3.48 1.74
2.48 2.15
2.52 - . 5 1
2.79 1.46
.63
2.79
2.50 1.49
1.97 - . 9 2
2.14 1.50
.74
2.20

1 Individuals' saving, in addition to personal holdings, covers saving of unincorporated business, trust
and pension funds, and nonprofit institutions in the forms specified. Prior to 1951, separate data on corporate pension fund investments are not available and are reflected in the various components of individuals' saving.
2
3 Includes currency, demand deposits, and time and savings deposits.
4 Does not include net purchases by brokers and dealers or by other individualsfinancedby bank loans.
Includes armed forces leave bonds and other U. S. Government bonds (except savings bonds) and
all5 securities issued by State and local governments.
6 Mortgage debt to institutions on 1- to 4-family nonfarm dwellings.
Largely attributable to purchases of automobiles and other durable consumer goods, although including some debt arising from purchases of other consumption goods. The other segments of individuals'
debt have been allocated to the assets to which they pertain, viz., saving in insurance and securities.
7 Not available separately. See footnote 1.
NOTE.—In addition to the concept of saving shown above, there are other concepts of individuals' saving,
with varying degrees of coverage, currently in use. The series with the most complete coverage, the personal saving estimates of the Department of Commerce, is derived as the difference between personal income
and expenditures. Conceptually, Commerce saving includes the following items not included in Securities
and Exchange Commission saving: Housing net of depreciation, and farm and unincorporated business
investment in inventories and plant and equipment, net of depreciation and net of increases in mortgage
and other debt to corporations and financial institutions. Government insurance is excluded from the
Commerce saving series. For a reconciliation of the two series, see Survey of Current Business, July 1957.
Revisions for 1955-57 in the consumer credit statistics of the Board of Governors of the Federal Reserve
System have not yet been incorporated into these estimates.
Detail will not necessarily add to totals because of rounding.
Source: Securities and Exchange Commission.




132

TABLE F—16.—Sources and uses of gross saving, 1929—57
[Billions of dollars]
Gross private saving and government surplus or
deficit on income and product transactions
Government
surplus or
deficit (-)

Private saving

Period
Total

Total

Per- Gross
sonal busi- Total
ness
saving saving

1929._

16.7

15.7

4.2

1930..
1931..
1932..
1933..
1934..

11.9
4.9
.3
.6
2.6

12.2
7.7
2.0
1.9
5.0

3.4
2.5

1935..
1936..
1937..
1938..
1939..

6.4
7.2
12.1
7.3
9.0

8.4
10.1
11.5
8.9
11.2

2.0
3.6
3.7
1.1
2.9

1940..
1941..
1942..
1943..
1944..

13,9
18.8
10.5
5.1
2.3

14.6
22.6
41.9
49.3
54.2

4.2
11.1

1945..
1946..
1947..
1948..
1949..

4.5
30.8
37.3
45.2
33.0

1950..
1951..
1952..
1953..
1954-.
1955..
1956..
1957 2.

Gross investment

Federal

State
and
local

Gross
private Net fordomes- eign inTotal tic in- vestment
vestment

Statistical
discrepancy

11.5

1.0

1.2

-0.1

17.0

16.2

5.2
2.7
2.6
4.9

-.3
-2.8
-1.7
-1.4
-2.4

.3
-2.1
-1.5
-1.3
-2.9

-.5
-.7
-.2
(9
.5

11.0
5.7
1.1
1.5
3.3

10.3
5.5
.9
1.4
2.9

6. 3
6.5
7.8
7.8

-2.0
-3.0
.6
-1.6
-2.1

-2.6
-3.5
-.2
-2.0
-2.2

.5
.7
.4
.1

6.2
8.3
11.8
7.8
10.2

6.3
8.4
11.7
6.7
9.3

!i
1.1

-.2
1.1
-.2
.5
1.2

27.8
33.0
36.9

10.4
11.5
14.1
16.3
17.2

-.7
-3.8
-31.4
-44.2
-51.9

-1.4
-5.1
-33.2
-46.7
-54.6

.7
1.3
1.8
2.5
2.7

14.7
19.2
9.7
3.4
5.0

13.2
18.1
9.9
5.6
7.1

1.5
1.1
-.2
-2.2
-2.1

.4
-.8
-1.7
2.8

44.3
26.6
24.0
37.4
36.2

28.7
12.6
4.0
10.0
7.6

15.6
14.0
20.0
27.4
28.7

-39.7 -42.3
4.2
2.2
13.3
12.2
7.9
8.0
-3.2 -2.4

2.6
2.0
1.0
-.1

9.0
31.7
38.6
43.1
33.1

10.4
27.1
29.7
41.2
32.5

-1.4
4.6
8.9
2.0
.5

4.5
.9
1.4
-2.1
.1

48.8
55.8
47.7
45.7
46.3

40.7
49.6
51.0
52.5
52.7

12.1
17.7
19.0
19.7
17.9

28.6
31.9
32.0
32.8
34.8

8.1
6.2
-3.3
-6.8
-6.4

9.2
6.5
-3.4
-7.1
-5.4

49.0
57.1
49.6
48.3
48.0

51.2
56.9
49.8
50.3
48.4

-2.2

-.4

.2
1.3
2.0
2.6
1.7

58.1
65.7
65.3

55.5
60.9
63.6

15.8
20.0
19.6

2.6
4.8
1.7

3.6
6.2
4.0

-1.1
-.4
0)
.2
-1.0
-1.0
-1.4
-2.2

60.2
67.3
66.9

60.6
65.9
63.6

-.4
1.4
3.3

2.1
1.6
1.7

55.2
59.0
61.5
64.7

55.6
59.7
61.4
65.4

-.4
-.7
.1
-.7

4.4
1.4
2.3
.1

40.9
44.0

0.3
.7
.2
.2
.2
.4
i

.2
-.2
-2.0

-1.0

.7

Seasonally adjusted annual rates
1955:
First quarter
Second quarter. _
Third quarter
Fourth quarter-.

50.8
57.7
59.3
64.6

51.5
56.4
55.0
59.1

12.7
15.7
14.9
18.7

38.8
40.7
40.1
40.4

-.7
1.3
4.3
5.5

.9
2.8
4.6
5.9

-1.6
-1.5

1956:
First quarter.
Second quarter..
Third quarter - _
Fourth quarter-

62.8
65.3
65.2
69.2

56.8
60.2
61.7
64.6

16.8
20.8
20.3
21.7

40.0
39.4
41.4
42.9

6.0
5.1
3.5
4.6

7.3
6.7
4.5
6.0

-1.3
-1.7
-1.1
-1.4

64.2
66.5
67.5
70.9

64.4
65.3
65.5
68.5

-.2
1.2
2.0
2.4

1.5
1.3
2.3
1.6

65.2
65.0
65.9

61.4
64.3
63.7

18.9
21.0
19.3
18.5

42.5
43.3
44.4

3.8
.7
2.2
(3)

6.1
3.1
4.2
(3)

-2.3
-2.4
-1.9

66.8
68.5
68.7
63.5

62.7
65.0
65.5
61.0

4.1
3.5
3.2
2.5

1.6
3.3
2.7

1957:
First quarter
Second quarter..
Third quarter . 2 .
.
Fourth quarter .

(3)

(3)

(3)

1

-.4

A

(3)

Less than 50 million dollars.
Preliminary; fourth quarter by Council of Economic Advisers.
3
Not available.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).

2




133

EMPLOYMENT AND WAGES
TABLE F-17.—Noninstitutional population and the labor force, 1929-1957
UnemployTotal
ment as
labor
force as percent of
civilian
Employment
percent
of non- labor force
Unem- instituployAgri- Non- ment 2 tional
agripopu- Unad- SeasonTotal culcullation justed ally adtural tural
justed
Civilian labor force

Period

Total
Nonin- labor
force
stituArmed
tional (includ- forces J
popu-l
ing
Total
lation armed
forces)

2

Thousands of persons 14 years of age and over
Old definitions 2
1929..

Percent

49, 440

260 49,180 47,630 10,450 37,180

1, 550

3.2

50,080
50,680
51, 260
51,840
52,490

260
260
250
250
260

49,820
50,420
51,000
51,590
52,230

45,480
42,400
38,940
38,760
40,890

35,140
32,110
28, 770
28,670
30,990

4,340
8,020
12,060
12,830
11,340

8.7
15.9
23.6
24.9
21.7

00

53,140
53,740
54,320
54,950
55,600

270
300
320
340
370

42,260 10,110 32,150 10,610
44,410 10,000 34, 410 9,030
46,300 9,820 36, 480 7,700
44,220 9,690 34,530 10,390
45,750 9,610 36,140 9,480

1940-.
1941..
1942-.
19431944-.

100,380
101, 520
102, 610
103, 660
104,630

56,180
57, 530
60,380
64,560
66,040

540
1,620
3,970
9,020
11,410

52,870
53,440
54,000
54, 610
55, 230
55,640
55, 910
56, 410
55,540
54,630

19451946-.
1947..
19481949-

105, 520
106, 520
107, 608
108, 632
109, 773

19501951195219531954-.

110,929
112,075
113,270
115,094
116,220

64,749
65,983
66, 560
67,362
67,818

1955..
1956..
1957..

117,388 68,896 3,048 65,847 63,193
118, 734 70,387 2,857 67, 530 64,979
120,445 70, 761 2,797 67,964 65,272

1930..
1931.
1932..
1933..
1934..
19351936-.
1937-.
1938-

New definitions 2
1947
1948
1949

8

10,340
10,290
10,170
10,090
9,900

()
3

C)
(3)

20.1
16.9
14.3
19.0
17.2

47, 520
50, 350
.53, 750
54, 470
53,960

9,540
9,100
9,250
9,080
8,950

37, 980 8,120
41,250 5,560
44,500 2,660
45,390 1,070
670
45,010

56.0
56.7
58.8
62.3
63.1

14.6
9.9
4.7
1.9
1.2

65,290 11, 430 53,860
60,970 3,450 57, o20
61,758 I,!" 60,168
62,898 1, 456 61,442
63,721 1,616 62,105

52,820
55,250
58,027
69,378
58,710

8,580
8,320
8,266
7,973
8,026

44,240
46,930
49, 761
61,405
50,684

1,040
2,270
2,142
2,064
3,395

61.9
67.2
57.4
57.9
68.0

1.9
3.9
3.6
3.4
5.5

1,650
3,098
3,594
3,547
3,350

59, 957
61,005
61.293
62,213
61,238

7,507
7,054
6, 805
6,562
6,604

52,450
53,951
54,488
55, 651
54,734

3,142
1,879
1, 673
1,602
3,230

58.4
58.9
58.8
58.5
58.4

5.0
3.0
2.7
2.5
5.0

6,730 56,464
6,585 58,394
6,229 59,043

2,654
2,551
2,693

58.7
59.3
58.7

4.0
3.8
4.0

107, 608 61, 758 1,590 60,168 57, 812 8,256 49, 557 2,356
108, 63r
1,456 61, 442 59,117 7,960 51,156 2,325
109, 773 3, 721 1,616 62,105 58,423 8,017 50,406 3,682

57.4
57.9
58.0

3.8
5.9

52, 251
53, 736
54, 243
55,390
54, 395
6,718 56, 225
6,572 58,135
6,222 58, 789

3,351
2,099
1,932
1,870
3,578

58.4
58.9
58.8
58.5
58.4

5.3
3.3
3.1
2.9
5.6

2,904
2,822
2,936

58.7
59.3
58.7

4.4
4.2
4.3

1,650
3,098
3,594
3,547
3,350

63,099
62,884
62,966
63,815
64,468

195019511952..
1953..
1954..

110, 929
112, 075
113, 270
115, 094
116, 220

195519561957-

117,388 68,896 3,048 65, 848 62,944
118, 734 70,387 2,857 67,530 64,708
120,445 70, 744 2,797 67, 946 65, Oil

64,749
65,983
66,560
67,362
67,818

63,099
62,884
62,966
63,815
64,468

59, 748
60,784
61,035
61,945
60,890

7,497
7,048
6,792
6,555
6,495

Old definitions 2
1956: January
February._March
April
May
June

118,080
118,180
118, 293
118,367
118, 53:
118,632

68,396
68,806
69,434
70, 711
72,274

2,916
2,906
2,893
2,879
2,865
2,844

65, 775
65,490
65,913
66,555
67,846
69, 430

62,891
62,576
63,078
63,990
65,238
66, 503

57,256
67,107
57,400
57,603
58,092
58,627

2,885
2,914
2,834
2,564
2,608
2,927

58.2
57.9
68.2
58.7
59.7
60.9

4.4
4.4
4.3
3.9
3.8
4.2

S.7
S.7
S.8
S.7

July
August
September..
October
November-.
December...

118, 762
118,891
119,047
119,198
119,344
119, 481

72,325
71, 787
70,896
70,905
70,560
69,855

2,836
2,840
2,827
2,823
2,828
2,826

69, 489
68,947
68,069
68,082
67, 732
67,029

66, 655 7,700 58,955
66,752 7,265 59,487
66,071 7,388 68,683
66,174 7,173 59,000
65,269 6,192 59,076
64, 550 5,110 59,440

2,833
2,195
1,998
1,909
2,463
2,479

60.9
60.4
59.6
59.5
59.1
58.5

4.1
3.2
2.9
2.8
3.6
3.7

4-0
S.6
S.4
S.5
4-0
S.8

See footnotes at end of table.




134

5,635
5,469
5,678
6,387
7,146
7,876

TABLE F-17.—Noninstitutional population and the labor force,

1929-57—Continued

UnemployTotal
ment as
labor
force as percent of
civilian
Employment 2
percent
of non- labor force
Unem- instituployAgri- Non- ment 2 tional
agripopu- Unad- SeasonTotal culcullation justed ally adtural tural
justed
Civilian labor force

Period

Sloninstitutional
popu-l
ation

Total
labor
force Armed
(includ- forces *
ing
Total
armed
forces)

Thousands of persons 14 years of age and over
Old definitions t
1957: January
February._.
March
April
May
June..

Percent

119,614
119, 745
119,899
120,057
120,199
120,383

68,647
69,130
69, 565
69, 773
70. 777
72, 742

2,817
2,817
2,816
2,820
2,821
2,819

65,830
66, 313
66, 749
66,953
67. 956
69,923

62,890
63,434
64,049
64, 472
65, 467
66,892

4,943
5,199
5,442
5,758
6,663
7,547

57,947
58, 235
58,607
58, 714
58. 804
59,345

2,940
2,881
2,700
2,481
2.489
3,030

57.4
57.7
58.0
58.1
58.9
60.4

4.5
4.3
4.0
3.7
3.7
4.3

3.8
S.6
S.6
S.6
S.9
4.2

July
August
September.
October
November.
December..
New definitions 2
1956: January
February
March
April
May
June

120, 579
120, 713
120,842
120,983
121,109
121, 221

73, 056
71,838
71,056
71,303
70,796
70, 480

2,823
2,839
2,819
2,786
2,729
2,688

70,233
68,999
68,237
68,517
68,067
67,792

67, 546
66, 619
65, 921
66,240
65,078
64,652

7,804
6,827
6,519
6,838
5,817
5,391

59, 742
59, 792
59, 402
59, 402
59, 262
59,262

2,687
2,380
2,31"
2,27'
2,989
3,140

60.6
59.5
58.8
58.9
f8.5
58.1

3.8
3.4
3.4
3.3
4.4
4.6

S.8
S.9
4.0
4.2
4-8
4.8

118,080
118,180
118, 293
118,367
118, 537
118,632

68,691
68,397
68,806
69, 434
70, 711
72,274

2,916
2,906
2,893
2,879
2,865
2,844

65, 775
65,491
65, 913
66, 555
67,846
69, 430

62,684
62,354
62, 787
63,799
64,950
66,027

5,625
5,463
5,662
6,386
7,120
7,859

57,059
56,891
57,124
57, 410
57,830
58,166

3,092
3,136
3,125
2,755
2,896
3,403

58.1
57.9
58.2
58.7
59.7
60.9

4.7
4.8
4.7
4.1
43
49

4.0
4.0
4.2
4.0
4.5
4.6

July
August
September.
October
November.
December..

118, 762
118,891
119,047
119,198
119,344
119, 481

72,325
71, 787
70,896
70,905
70, 560
69, 855

2,836
2,840
2,827
2,823
2,828
2,826

69,489
68,947
68,069
68,082
67, 732
67,029

66,354
66, 420
65, 774
65, 955
65,084
64,306

7,674
7,237
7,376
7,168
6,190
5,105

58, 680
59,184
58,395
58, 785
58, 893
59,199

3,134
2,527
2,295
2,127
2,648
2,723

60.9
60.4
59.6
59. 5
59.1
58.5

45
37
34
31
.
3.9
41
.

4-4
4.1
S.9
S.9
4.S
4.2

119,614
1957: January
February .. 119,745
March
119,899
April
120,057
May
120,199
June
120,383

68,638
69,128
69, 562
69, 771
70, 714
72, 661

2,817
2,817
2,816
2,820
2,821
2,819

65,821
66,311
66, 746
66,951
67,893
69, 842

62, 578
63,190
63.865
64. 261
65,178
66,504

4,935
5,195
5,434
5,755
6,659
7,534

57, 643
57,996
58, 431
58,506
58, 519
58,970

3,244
3,12'
2,882
2,690
2,715
3,337

67.4
57.7
58.0
58.1
58.9
60.4

4.2
4.0
S.9
S.9
4.2
4.5

73,051
71,833
71,045
71,299
70, 790
70,458

2,823
2.839
2,819
2,786
2,729
2,688

70,228
68,994
68,226
68,513
68,061
67, 770

67,221
66, 385
65, 674
66,005
64,873
64,396

7,772
6,823
G, 518
6,837
5,817
5,385

59, 449
59, 562
59,156
59,168
59,057
59,012

3,007
2,609
2,552
2,508
3,185
3,37'

60.6
59.5
58.8
58.9
58.5
58.1

49
47
43
40
40
48
43
3^8
3
37
47
50

July
August
September.
October...
November.
December.

120, 579
120, 713
120,842
120,983
121,109
121,221

4.2
4.2
4.S
4.6
5.1
5.2

1
Data for 1910-52 revised to include about 150,000 members of the armed forces who were outside the
continental United States in 1940 and who were, therefore, not enumerated in the 1940 Census and were
excluded from the 1940-52 estimates.
2 See Note.
3 Not available.
NOTE.—Civilian labor force data beginning with May 1956 are based on a 330-area sample. For January
1954-April 1956 thev are based on a 230-area sample; for 1946-53 on a 68-area sample; for 1940-45 on a smaller
sample; and for 1929-39 on sources other than direct enumeration.
Effective January 1957, persons on layoff with definite instructions to return to work within 30 days
of layoff and persons waiting to start new wage and salary jobs within the following 30 days are classified
as unemployed. Such persons had previously been classified as employed (with a job but not at work).
The combined total of the groups changing classification has averaged about 200,000 to 300,000 a month in
recent years. The small number of persons in school during the survey week and waiting to start new
jobs are classified as not in the labor force instead of employed as formerly. Persons waiting to open new
businesi-es or start new farms within 30 days will continue to be classified as employed. (New definitions
series for periods prior to January 1957 are Census Bureau estimates under the old definitions adjusted by
Council of Economic Advisers to the new definitions.)
Beginning July 1955, labor force data are for the calendar week containing the 12th of the month; previously, for week containing the 8th.
Annual population data are as of July 1; monthly data are as of the 1st of the month.
For the years 1940-52, estimating procedures made use of 1940 Census data; for subsequent years, 1950
Census data were used. For the effects of this change on the historical comparability of the data, see
Annual Report on the Labor Force, 1954, Series P-50, No. 59, April 1955, p . 12.
Detail will not necessarily add to totals because of rounding.
Sources: Department of Commerce, Department of Labor (labor force, 1929-39), and Council of
Economic Advisers.




135

TABLE F—18.—Employment and unemployment, by age and sex, 1942—57
[Thousands of persons 14 years of age and over]
Unemployed

Employed

Total
civil45
45 years
20-44 years andyears
20-44 years
ian
over Total
and over
labor Total 14-19
14-19
emunem- years
force ployed years
FeFe- ployed
FeFeMale male Male male
Male male Male male

Period

Old definitions *
56,410 53,750 5,770 20,790 9,40014,160 3,630
55, 540 54,470 6,35017,55011,05015,160 4,360
54, 630 53, 960 6, 050 16, 380 11, 280 15, 480 4,770

1942
1943
1944

2,660
1,070
670

510
290
200

670
180
140

520
260
170

770
240
110

190
100
50

1,040
2,270
2,142
2,064
3, 39f

330
190
290 1,200
425
920
415
757
595 1,329

270
280
303
353
559

200
410
396
414
719

50
90
99
127
194

1945
1946
1947
1948
1949

53,860
_ _ _ 57,520
'_
60,168
61, 442
62,105

52, 820
55, 250
58, 027
59, 378
58, 710

1950
1951
1952
1953
1954

63,099
62,884
62,966
63,815
64,468

59, 957
61, 005
61,293
62, 213
61, 238

5,517
5,819
6,130
6,306
6,395

3,142
1,879
1,673
1,602
3,230

543 1,119
515
356
495
362
512
312
515 1,158

552
419
344
300
617

697
402
345
363

232
190
127
116
256

1955

65,847 63,193 4,446 23,76811,00016,878 7,101
67, 530 64,979 4, 764 24, 05111, 271 17,294 7,598

2,654
2,551

471
510

854
784

502
491

606
530

222
239

67, 946 65, 011 4, 720 23,993 11, 247 17, 246 7,804

2,936

574

935

566

606

255

5,480 15, 830 11,140 15, 520 4,850
\,
4,
170
4,380
4,600
4, 717 23;
C409
4, 841 23, 842 10,098 15, 677 4,924
i,
4,, 512 23,
1,483 10,087 15, 491 5,138
564 23, 833 10, 376 15, 666
614 23, 594 10, 833 16,144
530 23, 372 10,917 16, 345
514 23, 715 10, 953 16, 725
285 23,178 10, 730 16, 649

1956
New definitions i
1957
Old definitions i
1956: January...
February .
March .. .
April
May
June

65, 775
65, 490
65, 913
66, 555
67, 846
69, 430

62, 891
62, 576
63, 078
63,990
65, 238
66, 503

4, 020 23, 685 10, 962 16, 920
i,
3,870 23,'
964 16, 848
3, 917 23, 759 10, 926 17,
.033
4,205 23,'
050 17, 258
4,565 23,99311,47217,
',421
5, 813 24, 288 11, 341 17, 484

7,305
7,246
7.44'
7,568
7,788
7,578

2,885
442
2,914
508
2,834
433
2,564
413
2,608
548
2,927 1,005

967
947
977
836
769
788

581
462
495
459
490
469

713
783
675
565
536
421

184
215
255
289
265
241

69, 489
68, 947
68, 069
68, 082
r
,732
67, 029

66, 655
66, 752
66, 071
66,174
65, 269
64,550

329 24, 319 11,101 17, 398
127 24, 424 11,143 17, 485
4, 826 24,25711,60317,528
4,672 24,23811.,857 17, 554
,539
4, 408 24,14811,539 17,429
4,418 23,941 11,,301 17,183

7,510

2,833
2,19)

759
445
356
331
482
396

807
678
595
551

560
461
450
438
539
482

425
382
371
380
518
584

283
229
228
208
260
203

65, 821
66,311
66, 746
66, 951
67, 893
69, 842

62, 578
63,190
63, 865
64, 261
65,178
66, 504

3, 871 23, 598 10, 797 16, 846
3, 970 23, 583 11, 066 16, 955
,
4, 087 23, 807 11 07' 17,109
4,204 23,911 11,091 17.212
11, 27'617, ',407
4,475
5,607 24,34611,191 17, 480

7,468
7,612
7,786
7,843
7,936
7,820

3,244 493 1,078
3,121
465 1,086
2,882
497
947
2,690 461
915
2,715
566
790
3,337 1,105
874

652
566
506
517
556
606

731
724
671
606
563
528

289
280
262
192
242
225

July
70, 228
August
68, 994
September 68, 226
October
1,513
November 68. 061
December. . 67, 770

67, 221
66, 385
65, 674
66, 005
64,873
64,396

332 24, 490 11, 201 17, 385
953 24,45011,067 17, 304
,199
680 24,199 11,41617,430
678 24,101 11, 766 17, 431
338 23,832 11,550 17, 274
385 23,513 11,465 17,125

7,814
7,613
7,945
8,030
7,878
7,908

3,007
2,609
2,552
2,508
3,188
3,374

582
554
555
523
638
541

479
505
528
667
768

251
244
251
248
313
258

July
August
September
October
November
December.

7, 855 1,998
7,854 1,909
7,744 2,463
7,708 2,479

New definitions 1
1957: January
February
March
April
May
June

84'
828
553
779
436
802
401
809
54' 1,023
512 1,294

1
See Note, Table F-17 for explanation of differences between the old and new definitions.
NOTE.—Data are not available prior to 1942 for all the age/sex groups above.
See Note, Table F-17 for information on area sample used and reporting periods.
Detail will not necessarily add to totals because of rounding.

Source: Department of Commerce.




I36

TABLE

F—19.—Employed persons not at work, by reason for
unemployed persons, 7946-57

not working,

and special groups

of

l

[Thousands of persons 14 years of age and over]

Employed persons not at work,

Special groups of unemployed persons 3

by reason for not working
Period
Bad

weather

Industrial
dispute

Vacation

Illness

All
other
reasons 2

Tempo- New wage
rary
and salary
job»
layoff 4

1946,.
1947..
1948..
1949-.

95
97
79

662
834
1,044
1,044

819
847
844
719

)
273
308
291

97
123
141
185

58
92
121
101

1950-.
1951-.
1952-.
19531954.

85
57
164
73
53

1,137
1,073
1,130
1,171
1,361

718
782
775
827
776

349
436
418
362
425

92
117
142
167
221

116
103
117
101
127

1955.
1956.
1957.

61
76
45

1,268
1,346
1,447

835
901
962

416
456
425

133
124
150

117
147
110

1956: January
February...
March
April. _
May
June

70
57
79
22
68
30

304
381
289
399
535
1,933

1,032
1,032
992
913
859

505
413
423
451
300
493

145
134
153
97
110
80

62
88
138
94
178
396

July
August
September..
October
November._
December _.

406
45
41
30
59
6

5,327
3,977
1,357
789
537
327

851
885
859
870
854
835

566
588
427
401
472
433

145
123
139
110
97
160

156
209
158
108

1,994
2,011
1,905
1,822
2,056
3,358

12
26
40
40
46

313
342
342
429
707
1,959

876
999
975
896
810

442
418
382
317
344
489

202
149
102
143
142
137

103
93

7,014
6,048
2,777
2,571
2,492
2,161

113
81
41
34
16
27

5,577
4,522
1,430
794
524
421

793
885
857
1,342
1,339

514
535
402
348
438
467

129
148
181
121
160

1957: January
February...
March
April
May
June
July
August
September..
October
November..
December..

147
251
136
105
99
54
84
96

1
D a t a prior to 1957 are Census Bureau estimates adjusted b y Council of Economic Advisers to the new
definitions of employment and unemployment.
2
Includes persons waiting to open new businesses or start new farms within 30 days.
3 Under the old definitions of employment and unemployment, these groups were included in the
"employed b u t not at work" category.
4
Persons on layoff with definite instructions to return to work within 30 days of the layoff.
5 Persons scheduled to start new wage and salary jobs within 30 days. Under the old definitions, t h e
"new job or business" group included these persons as well as persons waiting to open new businesses or
start new farms within 30 days (see "all other" category in this table) and persons in school during the
survey week and waiting to start new jobs (these are now classified as "not in the labor force").
s Not available.

NOTE.—See Note, Table F-17 for information on area sample used and reporting periods.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




137

T A B L E F—20.—Unemployed persons, by duration of unemployment, 1946—57
Duration of Vinemployment
Period

Total unemployed

4 weeks
and under

5-14

15-26

weeks

weeks

Over 26
weeks

Average
duration
of unemployment
(weeks)

Thousands of persons 14 years of age and over
Old definitions:1

(3)

1946
1947
1948
1949

2,270
2,142
2,064
3,395

1,041
1,087
1,517

704
669
1,195

234
193
427

141
164
116
256

1950
1951
1952
1953
1954

3,142
1,879
1,673
1,602
3,230

1,307
1,003
925
910
1,303

1,055
574
517
482
1,115

425
166
148
132
495

357
137
84
79
317

12.1
9.7
8.3
8.1
11.7

1955
1956

2,654
2,551

1,138
1,214

815
804

367
301

336
232

13.2
11.3

2,936

1,484

891

321

239

10.4

1955: First quarter _
Second quarter
Third quarter
Fourth quarter

3,302
2,710
2,286
2,319

1,144
1,129
1,116
1,161

1,188
702
668
700

518
490
239
218

452
389
262
239

14.1
14.7
12.1
11.3

1956: First quarter
Second quarter
Third quarter
Fourth quarter

2,878
2,700
2,342
2,284

1,212
1,307
1,138
1,199

1,041
810
730
638

347
374
256
227

278
209
218
221

12.2
10.8
10.9
10.9

3,082
2,914
2,723
3,023

1,382
1,559
1,469
1,529

1,108
738
781
935

371
359
245
309

223
258
228
248

10.6
10.7
9.8
10.3

9.8

8.6
10.0

N e w definitions: i
1957

Old definitions:»

New definitions:1
1957: First quarter.
Second quarter
Third quarter
Fourth quarter

1 See Note, Table F-17 for explanation of differences between the old and new definitions.
2 For duration of less than 6 months, data are available only for under 3 months (1,568,000) and 3 to I
months (564,000).
» Not available.
NOTE.—See Note, Table F-17 for information on area sample used and reporting periods.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.




138

TABLE F-21.—Unemployment insurance programs, selected data, 1939 and 1946—57
Initial claims 1

Period

Insured unemployment *

State, i
veteran,
and
State
All pro- State
proFederal
5
proemployee grams 3 grams
grams 3
pro- 2
grams

State
Benefits paid
insured
under State
unemprograms 3
ployExhaus- ment
tions,
as perState
cent of
proTotal
Average
covered
grams 3 employ- millions weekly
of dol
check
ment
lars) s [dollars)'
(percent) 3 <

Weekly average (thousands)
1939..

188

188

5. 1

429.3

10.66

1946..
1947..
1948.
1949.

341
280
282
375

189
187
210
323

2,803
1,804
1,465
2,474

1,294
1,008
999
1,973

38
24
20
37

4.3
3.1
3.0
6.2

1,094.9
775.1
789.9
1,736.0

18.50
17.83
19.03
20.48

1950 _
1951.
1952.
1953.
1954.

239
211
215
222
310

236
208
215
218
303

1,599
996
1,064
1,058
2,039

1,497
965
1,019
988
1,857

36
16
18
15
34

4.6
2.8
2.9
2.8
5.2

1, 373.1
840.4
998.2
962.2
2,026. 9

20.76
21.09
22.79
23.58
24.93

1955.
1956.
1957 1

236
234
274

228
229
269

1,388
1,312
1,550

1,269
1,225
1,455

25
20
23

3.4
3.1
3.5

1, 379. 2
1,409.3
1,733.9

25.08
27.06
28.02

1956: January. _
February.
March
April
May
June

315
257
219
239
220
212

307
250
213
234
216
205

1,606
1,651
1,578
1,439
1,316
1,234

1,491
1,535
1,472
1,359 .
1, 255
1,178

20
21
24
24
20
20

4.0
4.1
4.0
3.6
3.3
3.1

135.7
143.9
152.0
133.9
125.8
116.1

26.61
26.95
27.13
27.03
26.70
26.79

260
188
195
185
226
298

254
182
190
181
221
293

1,316
1,158
1,060
939
1,090
1,379

1,209
1,059
988
878
1,013
1,285

20
19
18
16
16
17

3.1
2.7
2.6
2.3
2.6
3.3

111.7
112.2
94.9
91.5
91.7
104.2

26.91
27.05
27.77
27.57
27.26
27.43

347
256
219
254
221
226

340
251
214
250
218
220

1,850
1,846
1,700
1,565
1,424
1,319

1,737
1,730
1,592
1,475
1,350
1,251

23
24
27
26
23
23

4.4
4.3
4.0
3.6
3.3
3.0

177.6
164.9
168.8
154.3
145.7
123.5

27.73
27.85
27.72
27.72
27.47
27 Ai

280
196
250
263
325
451

276
191
246
259
320
445

1,368
1,228
1,240
1,314
1,623
2,206

1,285
1,151
1,167
1,237
1,513
2,071

21
21
20
21
20
22

3.1
2.8
2.8
3.0
3.6
5.0

130.1
121.3
113.3
131.8
136.6
175.0

27.59
27.87
28.64
29.20
29.44
29.60

July
August
September.
October
NovemberDecember..
1957: January..
February.
March
April
May
June
July
August
September...
October
November. __
December 10 .

1,086

1
2

Most of these are instances of new unemployment.
Data on veterans relate to those under the following programs: Servicemen's Readjustment Act, which
became effective in October 1944 and expired for most veterans in July 1949, and Veterans Readjustment
Assistance Act of 1952, effective October 15, 1952.
3
Beginning 1955, data include State programs and the program for Federal employees; all prior years are
for State programs only. Beginning 1956, data also include workers added by the extension of coverage to
smaller firms.
4
Represents the number of unemployed workers covered by unemployment insurance programs who
have completed at least one week of unemployment. Excludes territories.
5
State, veteran, Railroad Retirement, and Federal employee programs.
8
State unemployment insurance programs during the period shown excluded from coverage agricultural
workers, domestic servants, workers in nonprofit organizations, unpaid family workers, the self-employed,
and (in most States) workers in very small firms.
7
Represents the number of individuals who received payment for the final week of compensable unemployment in a benefit year. Workers who have exhausted benefit rights do not necessarily remain unemployed; some find employment, and others withdraw from the labor force.
8
Monthly totals are gross amounts; annual figures are adjusted for voided benefit checks.
9
For total unemployment only.
10
Preliminary.
Source: Department of Labor.




139

TABLE F-22.—Number of wage and salary workers in nonagr{cultural establishments, 1929-57 *
[Thousands of employees]
Manufacturing
and
salary
workers

Total

1929

31, 041

Mining

Transportation
and
public
utilities

1,078

1,497

3,907

6,401

1,431

3,127

3,066

1,000
864
722
735
874

10, 534

1930
1931
1932
1933.
1934

29,143
26, 383
23, 377
23, 466
25, 699

1935
1936
1937.
1938
1939

Government
(Federal,
State,
and
local)

Contract
construction

1,372
1,214
970
809
862

3,675
3,243
2,804
2,659
2,736

6,064
5,531
4,907
4,999
5,552

1,398
1,333
1.270
1,225
1,247

3,084
2,913
2,682
2,614
2,784

3,149
3,264
3.225
3,167
3,298

912
1,145
1,112
1,055
1,150

2,771
2.956
3,114
2,840
2,912

5,692
6,076
6, 543
6,453
6,612

1,262
1,313
1,355
1,347
1,399

2,883
3,060
3,233
3,196
3,321

3,477
3,662
3,749
3,876
3,995

Total

FiTrade2 nance

Service 2

Durable
goods

Nondurable
goods

9,401
8,021
6,797
7,258
8,346

(3)

(3)

(3)
(3)
(3)

(3)
(3)
(3)

(3)

(3)

26, 792
28, 802
30, 718
28, 902
30,311

8,907
9, 653
10, 606
9,253
10, 078

(3)

(3)

(3)
(3)

(3)

4,683

5,394

888
937
1,006
882
845

1940
1941
1942
1943
1944

32, 058
36, 220
39, 779
42,106
41, 534

10, 780
12, 974
15, 051
17, 381
17,111

5,337
6,945
8,804
11, 077
10, 858

5,443
6,028
6,247
6,304
6,253

916
947
983
917
883

1,294
1,790
2, 170
1,567
1,094

3,013
3,248
3,433
3,619
3,798

6,940
7,416
7,333
7,189
7,260

1,436
1,480
1,469
I, 435
1,409

3,477
3,705
3,857
3,919
3,934

4,202
4,660
5,483
6,080
6,043

1945
1946
1947
1948
1949

40, 037
41, 287
43, 462
44, 448
43, 315

15,302
14, 461
15, 290
15, 321
14,178

9,079
7,739
8, 372
8, 312
7,473

6,222
6,722
6,918
7,010
6, 705

826
852
943
982
918

1,132
1,661
1,982
2,169
2,165

3,872
4,023
4,122
4,141
3,949

7,522
8,602
9,196
9,519
9,513

1,428
1,619
1.672
1,741
1,765

4,011
4,474
4,783
4,925
4,972

5,944
5,595
5,474
5,650
5, 856

1950
1951
1952
1953
1954

44, 738
47, 347
48, 303
49, 681
48, 431

14. 967
16,104
16, 334
17, 238
15, 995

8,085
9,080
9,340
10,105
9,122

6,882
7,024
6,994
7,133
6,873

889
916
885
852
111

2,333
2,603
2,634
2,622
2,593

3,977
4,166
4,185
4,221
4,009

9,645
10, 012
10, 281
10, 527
10, 520

1,824
1,892
1,967
2,038
2,122

5,077
5,264
5,411
5,538
5,664

6, 026
6,389
6,609
6,645
6,751

1955
1956
1957 4

50, 056
51, 878
52, 550

16. 563
16,905
16, 800

9,549
9,825
9,807

7,014
7,080
6,993

111
816
840

2,759
2,993
3,025

4,062
4,157
4.156

10, 846
11,292
11,554

2,219
2,306
2,342

5, 916
6,231
6,454

6,914
7,178
7,379

Period

(3)

3

( )
(3)

Seasonally adjusted
1955: January
February. March
April
May
June

48, 827
48, 909
49, 232
49, 461
49, 824
50,181

16, 029
16,117
16, 241
16,411
16, 530
16, 658

9,134
9,214
9,298
9,425
9,523
9,621

6,895
6,903
6,943
6,986
7,007
7,037

752
750
758
767
778
783

2,624
2,618
2,703
2,759
2,813
2,823

3, 992
3,984
3,984
3,948
4,008
4,076

10, 631
10, 645
10, 701
10, 682
10,748
10, 818

2,166
2,176
2,185
2,187
2,197
2,212

5, 788
5,802
5,826
5,851
5,857
5,889

6,845
6,817
6,834
6,856
6,893
6,922

July
August
SeptemberOctober
November.
December.

50, 295
50, 421
50, 624
50,788
50, 965
51,163

16,655
16,687
16, 683
16, 822
16, 954
16, 993

9,634
9.638
9,646
9,742
9,841
9,882

7,021
7,049
7,037
7,080
7,113
7,111

783
778
791
791
792
794

2,829
2,813
2,810
2,777
2,760
2,750

4,090
4,111
4,118
4,123
4,146
4,145

10, 887
10, 931
10, 972
11,001
11,045
11,122

2,223
2,238
2,254
2,259
2,256
2,263

5,906
5,917
6,013
6,011
6,052
6,081

6,922
6,946
6,983
7,004
6,960
7,015

1956- J a n u a r y . . . .
February..
March
April
May
June

51, 285
51, 368
51, 274
51, 624
51, 799
52,026

16, 951
16, 898
16, 812
16, 931
16, 919
16, 895

9,863
9,802
9,736
9,835
9,804
9,791

7,088
7,096
7.076
7,096
7,115
7,104

792
7P4
801
816
814
829

2,768
2,802
2,834
2,902
2,985
3,113

4,154
4, 141
4, 131
4,137
4,152
4,174

11,197
11,231
11,163
11,260
11,253
11,307

2,271
2,284
2,288
2,289
2,299
2,305

6,107
6,145
6,142
6,176
6,189
6,227

7,045
7.073
7, 103
7,113
7.188
7,176

July
August
September.
October
November.
December.

51, 456
52. 180
52,148
52, 367
52, 441
52, 541

16, 468
16, 901
16, 874
17,045
17,072
17,106

9,422
9,821
9,816
9,959
10,019
10, 035

7,046
7,080
7,058
7,086
7,053
7,071

769
831
838
836
833
833

3,043
3,083
3,080
3,080
3,067
3,074

4,130
4,159
4,160
4,178
4,173
4,169

11,303
11,364
11,319
11,372
11,388
11,408

2,303
2,326
2,325
2,327
2,326
2,320

6,265
6,262
6,291
6,280
6,327
6,359

7,175
7,254
7,261
7,249
7,255
7,272

See footnotes at end of table.




14O

T A B L E F-22.—Number of wage and salary workers in nonagi (cultural establishments, 1929-57 1—
Continued
[Thousands of employees]

Period

Total
wage
and
salary
workers

Manufacturing

Total

Durable
goods

Nondurable
goods

Mining

TransCon- portatract
tion
Ficonand Trade 2 nance
struc- public
tion
utilities

Government
Serv- (Fedice 2 eral,
State,
and
local)

Seasonally adjusted
1957: January
February
March
April
May
June
July
August
September..
October
November44December _

52, 493
52, 577
52, 547
52, 593
52, 698
52, 773

17,053 10,006
16, 995 9,980
16, 962 9,945
16, 965 9,928
16, 946 9,915
16, 924 9,907

7,047
7,015
7,017
7,037
7,031
7,017

832
833
831
841
843
854

2,963
3,020
3,062
3,059
3,097
3,108

4,188
4,168
4,168
4,160
4,159
4,164

11,465
11, 519
11,490
11,501
11, 542
11, 579

2,316
2,324
2,322
2,320
2,329
2,336

6,366
6,401
6,381
6,400
6,424
6,454

7,310
7,317
7,331
7,347
7,358
7,354

52, 815
52, 844
52, 662
52, 469
52, 237
51, 895

16,880
16,836
16, 681
16,604
16, 474
16, 281

9,869
9,844
9,700
9,649
9,548
9,390

7,011
6,992
6,981
6,955
6,926
6,891

861
853
849
837
825
816

3,061
3,032
3,028
3,013
2,956
2,906

4,168
4,184
4,175
4,148
4,112
4,076

11, 636
11, 669
11,620
11, 590
11, 571
11, 471

2,343
2,354
2,361
2,368
2,368
2,365

6,492
6,477
6,508
6,482
6,515
6,545

7,374
7,439
7,440
7,427
7,416
7.435

1
Includes all full- and part-time wage and salary workers in nonagricultural establishments who worked
during, or received pay for, any part of the pay period ending nearest the 15th of the month. Excludes
proprietors, self-employed persons, domestic servants, and unpaid family workers. Not comparable with
estimates of nonagricultural employment of the civilian labor force (Table F-17) which include proprietors,
self-employed persons, domestic servants, and unpaid family workers, which count persons as employed
when they are not at work because of industrial disputes, bad weather, etc., and which are based on a sample
survey of households, whereas the estimates in this table are based on reports from employing establishments.
2
Beginning with 1939, data are not strictly comparable with data shown for earlier years because of the
shift of the automotive repair service industry from the trade to the service division.
3
Not available.
4
Preliminary.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Labor.




TABLE F-23.—Average weekly hours of work in selected industries, 1929-57
Manufacturing
Period
Total

1929
1930
-.
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947...
1948
1949
1950
1951
1952
1953
.1954
1955
1956 6
__._
1957
1956: January
February
March
April
May
June
July
August
September...
October
November.. .
December. _.
1957: January
February
March
April
May
June
.-.July....
August
September...
October
November 66 .
December ..

Durable
goods

Retail
trade
Bitumi- Build- Class I
ing
Whole- (except
nous
Tele-2
eating
Nonconrailsale
coal
and
dustruc- roads i phone trade drinkrable mining tion
ing
goods
places)

44.2

42.1
40.5
38.3
38.1
34.6
36.6
39.2
38.6
35.6
37.7
38.1
40.6
42.9
44.9
45.2
43.4
40.4
40.4
40.1
39.2
40.5
40.7
40.7
40.5
39.7
40.7
40.4
39.8
40.7
40.5
40.4
40.3
40.0
40.2
40.1
40.3
40.7
40.7
40.5
41.0
40.2
40.2
40.1
39.8
39.7
40.0
39.7
40. 0
39.9
39.5
39.3
39.3

Laundries

38.4

()

32.6
34.8
33.9
37.3
41.0
40.0
35.0
38.0
39.3
42.1
45.1
46.6
46.6
44.1
40.2
40.6
40.5
39.5
41.2
41.6
41.5
41.3
40.2
41.4
41.1
40.3
41.2
41.0
40.9
41.1
40.8
40.8
40.7
40.8
41.3
41.4
41.2
41.9
40.9
40.9
40.8
40.5
40.3
40.5
40.0
40.3
40.2
39.8
39.7
39.6

()
41.9
40.0
35.1
36.1
37.7
37.4
36.1
37.4
37.0
38.9
40.3
42.5
43.1
42.3
40.5
40.1
39.6
38.8
39.7
39.5
39.6
39.5
39.0
39.8
39.5
39.1
39.9
39.8
39.5
39.2
39.0
39.2
39.4
39.6
39.8
39.7
39.6
39.7
39.1
39.3
39.1
38.9
38.9
39.2
39.4
39.5
39.6
39.0
38.7
38.9

33.5
28.3
27.2
29.5
27.0
26.4
28.8
27.9
23.5
27.1
28.1
31.1
32.9
36.6
43.4
42.3
41.6
40.7
38.0
32.6
35.0
35.2
34.1
34.4
32.6
37.6
37.8
36.7

38.6
38.5
38.2
37.8
38.0
38.1
36.1
37.0
37.9
37.8
36.2
38.7
37.5
38.4
37.4
37.0
35.8
37.6
36.3
36.5
36.9
36.4
34.1

()

28.9
30.1
32.8
33.4
32.1
32.6
33.1
34.8
36.4
38.4
39.6
39.0
38.1
37.6
<37.3
36.7
36.3
37.2
38.1
37.0
36.2
36.2
36.4
36.1
35.1
35.5
34.7
36.0
36.5
37.2
37.0
37.2
37.4
37.4
35.8
36.3
34.1
36.3
36.0
36.2
36.4
36.9
36.8
37.2
36.8
36.6
34.3

()
()

()
43.7

44.3
45.8
47.0
48.7
48.9
48.5
46.0
46.4
46.2
43.7
40.8
41.0
40.6
40.6
40.8
41.9
41.7
41.9
41.3
42.4
41.8
41.0
42.3
41.6
40.6
42.5
40.7
42.6
42.1
41.0
42.5
42.2
40.9
42.0
42.4
41.0
42.5
42.3
41.1
42.2

38.8
38.9
39.1
39.5
40.1
40.5
41.9
42.3
5 41.7
39.4
37.4
39.2
38.5
38.9
39.1
38.5
38.7
38.9
39.6
39.5
39.1
39.4
39.1
39.1
39.1
39.0
39.3
39.9
39.4
39.9
39.8
41.0
39.3
38.7
39.0
38.7
38.7
39.0
39.2
39.5
38.9
38.8
39 2
40.1

41.3
42.6
42.8
4 42.2
41.7
41.2
41.0
41.3
42.2
42.9
42.7
41.5
41.0
40.9
40.7
40.7
40.7
40.6
40.5
40.4
40.6
40.4
40.2
40.6
40.3
40.2
40.2
40.3
40.3

40.5
40.4
40.6
40.5
40.5
40.7
40.2
40.2
40.1
40.0
40.1
40.2
40.4
40.4
40.4
40.2
40.0

()
42.7

42.5
42.1
41.1
40.3
40.4
40.3
40.7
40.3
40.3
40.4

40.5
40.2
39.9
39.2
39.1
39.0
38.6
38.1
38.6
38.5
38.4
38.5
38.3
38.7
39.1
39.1
38.5
38.3
38.0
38.6
38.2
38.2
38.0
38.0
38.0
38.2
38.6
38.7
38.1
37.6
37.5

39.4
41.0
42.7
42.6
41.6
41.8
41.8
42.1
42.2
42.9
42.9
42.8
42.9
42.6
41.9
41.5
41.2
41.1
41.1
40.5
40.1
40.3
40.3
39.8
40.3
40.1
40.1
40.5
40.9
40.9
40.4
39.9
40.2
40.2
39.9
40.1
39.8
39.8
39.9
40.0
40.3
40.4
39.8
39.4
39.6
39.4
39.0
)

1
Averages are based upon monthly data (exclusive of switching and terminal companies) summarized
in the M-300 report by the ICC and relate to all employees who received pay during the month, except
executives, officials, and staff assistants (ICC Group I). Beginning September 1949, data reflect a reduction in the basic workweek from 48 to 40 hours.
2 Prior to April 1945, data relate to all employees except executives; from April 1945 to May 1949, mainly
to employees subject to the Fair Labor Standards Act; and beginning June 1949, to nonsupervisory employees only.
3 Not available.
< Data beginning with January of year noted are not comparable with those for earlier periods,
s Nine-month average, April through December, because of new series started in April 1945.
6 Preliminary.

NOTE.—Data are for production workers in manufacturing and mining, construction workers in building
construction, and for nonsupervisory employees in other industries (except as noted). Data are for payroll periods ending nearest the 15th of the month.
The annual figures for 1957 are simple arithmetic averages of the monthly figures shown and are not
strictly comparable with the averages for earlier years, which have been weighted by data on employment.
Source: Department of Labor.




142

TABLE F-24.—Average gross hourly earnings in selected industries, 1929-57
Manufacturing
Period

1929.

BituNonDura- dura- minous
coal
ble
Total
ble
goods goods mining
$0. 566

Retail
Buildtrade
ing
JlassI Tele- Whole- (except
Agriconraileating Laun- cul-3
sale
2
dries ture
struc- roads phone trade
and
tion
drinking
places)

$0,681

$0,241

1930
1931
1932
1933
1934

.552
.515
()
()
.446 $0.497 $0,420
.442
.427
.472
.532
.515
.556

.647
.520
.501
()
.673 $0. 795

1935
1936
1937
1938
1939

.550
.556
.624
.627
.633

.577
.586
.674

.530
.529
.577
.584
.582

.745
.794
.856
.878

1940
1941
1942
1943
1944

.661
.729
.853
.961
1.019

.724
.808
.947
1.059
1.117

.723
.803
.861

.059
.139
.186

.958
1.010
1.148
1.252
1.319

.733
.743
.837
.852
.948

1945
1946
1947
1948
1949

1.023
1.086
1.237
1.350
1.401

1.111
1.156
1.292
1.410
1.469

.904
1.015
1.171
1.278
1.325

.240
.401
.636
.898
.941

1.379
1.478
1.681
1.848
1.935

1950
1951
1952
1953
1954

1. 465
1.59
1.67
1.77
1.81

1.537
1.67
1.77
1.87
1.92

.378
.48
.54
.61

2.010
2.21
2.29
2.48
2.48

1955
1956
1957 i

1.88
1.98
2.07

2.01
2.10
2.20

.71
.80

1956: January._.
February
March
April
May
June

1.93
1.93
1.95
1.96
1.96
1.97

2.06
2.05
2.06
2.08
2.08
2.09

1.96
1.98
2.01
2.02
2.03
2.05

2.07
2.10
2.14
2.15
2.16
2.18

2.05
2.05
2.05
2.05
2.06
2.07

2.18
2.17
2.18
2.18
2.18
2.19

2.07
2.07
2.08
2.09
2.11
2.11

2.20
2.21
2.22
2.23
2.24
2.24

July
August
September
October
November
December
1957: January
February
March
April
May
June
July
August
September
October 7
November 7__.
December

$0.378

.226
.172
.129
.115
.129
.142
.152
.172
.166
.166

()

.815
.824
()
.903
$0. 774
.908
.816
()
.932 $0. 730 .822

$0.648
.667
.698
5.700
.715

$0. 542

.376
.378
.395
.414
.422

.827
.820
.843
.870
.911

.739
.793
.860
.933
.985

.553
.580
.626
.679
.731

.429
.444
.482
.538
.605

.206
.268
.353
.423

.955
1.087
1.186
1.301
1.427

6.962
1.124
1.197
1.248
1.345

1.029
1. 150
1.268
1.359
1.414

.783
.893
1.009
1.088
1.137

.648
.704
.767
.817
.843

.472
.515
.547
.580
.559

2.031
2.19
2.31
2.48
2.60

1.572
1.73
1.83
1.88
1.93

1.398
1.49
1.59
1.68
1.76

1.483
1.58
1.67
1.77
1.83

1.176
1.26
1.32
1.40
1.45

.861
.92
.94
.98
1.00

.561
.625
.661
.672
.661

2.56
2.81
3.02

2.66
2.80
2.96

1.96
2.12
2.24

1.82
1.86
1.94

1.90
2.01
2.10

1.50
1.57
1.65

1.01
1.05
1.09

.675
.705

.75
.75
.78
.79
.80
.81

2.70
2.68
2.68
2.79
2.79
2.83

2.74
2.75
2.75
2.75
2.76
2.78

2.10
2.12
2.10
2.11
2.09
2.11

1.86
1.84
1.84
1.85
1.85
1.86

1.95
1.96
1.99
2.01
2.01
2.02

1.54
1.54
1.54
1.56
1.56
1.58

1.03
1.02
1.04
1.04
1.04
1.05

.740

.82
.81
.82
.83
.84

2.83
2.77
2.80
2.92
2.95
2.98

2.79
2.81
2.84
2.86
2.87
2.89

2.11
2.09
2.14
2.10
2.19
2.21

1.86
1.85
1.86
1.86
1.88
1.92

2.03
2.02
2.04
2.03
2.05
2.06

1.59
1.58
1.59
1.59
1.59
1.55

1.05
1.05
1.06
1.06
1.06
1.07

.696

2.95
2.93
2.93
3.02
3.01
3.05

2.92
2.91
2.91
2.92
2.94
2.94

2.19
2.24
2.20
2.21
2.23
2.27

1.91
1.92
1.92
1.93
1.94
1.95

2.06
2.06
2.07
2.07
2.09
2.11

1.61
1.61
1.62
1.62
1.64
1.66

1.07
1.07
1.07
1.08
1.09
1.09

.785

3.09
3.04
3.06
3.04
3.05

2.96
2.97
3.02
3.02
3.04

2.25
2.26
2.28
2.25

1.94
1.94
1.95
1.97
1.97

2.12
2. 11
2.13
2.13
2.13

1.67
1.67
1.68
1.67
1.66

1.09
1.10
1.11
1.11
1.11

.717

.88
.90
.90
.92
.92

()

"."615

.736

.643

'."757

1
Averages are based upon monthly data (exclusive of switching and terminal companies) summarized in
the M-300 report by the ICC and relate to all employees who received pay during the month, except executives, officials, and staff assistants (ICC group I). Beginning September 1949, data reflect a wage rate
increase and reduction in the basic workweek from 48 to 40 hours.
2
Prior to April 1945, data relate to all employees except executives; from April 1945 to May 1949, mainly to
employees subject to the Fair Labor Standards Act; and beginning June 1949, to nonsupervisory employees
only.
3
Weighted average of all farm wage rates on a per-hour basis.
• Not available.
8
Data beginning with January of year noted are not comparable with those for earlier periods.
6
Nine-month average, April through December, because of new series started in April 1945.
7
Preliminary.
NOTE.—Data are for production workers in manufacturing and mining, construction workers in building
construction, and for nonsupervisory employees in other industries (except as noted). Data are for payroll
periods ending nearest the 15th of the month.
The annual figures for 1957 are simple arithmetic averages of the monthly figures shown and are not
strictly comparable with the averages for earlier years, which have been weighted by data on man-hours.

Sources: Department of Labor and Department of Agriculture.




143

TABLE F-25.—Average gross weekly earnings in selected industries, 1929—57
Manufacturing
Period
Total

Bitumi- Build- Class I
nous ing con- railTelecoal
Dura- Nonstruc- roads l phone
ble
durable mining tion
goods goods
$27. 22 $22. 93

Retail
trade
(except
Whole- eating
sale
and
trade drinking
places)

Laundries

$25. 72

1929--

$25.03

1930..
1931-.
1932-.
1933-.
1934..

23.25
20.87
17.05
16.73
18.40

24.77
21.28
16.21
16.43
18.87

21.84
20.50
17.57
16.89
18.05

22.21
17.69
13.91
14.47
18.10

$22. 97

1935..
1936_.
1937-_
1938..
1939_.

20.13
21.78
24.05
22.30
23.86

21.52
24.04
26.91
24.01
26.50

19.11
19.94
21.53
21.05
21.78

19.58
22.71
23.84
20.80
23.88

24.51
27.01
30.14
29.19
30.39

$31. 90

$30. 03
31.74
32.14

1940-.
1941-.
1942_.
1943..
1944_.

25.20
29.58
36.65
43.14
46.08

28.44
34.04
42.73
49.30
52.07

22.27
24.92
29.13
34.12
37.12

24.71
30.86
35.02
41.62
51.27

31.70
35.14
41.80
48.13
52.18

32.47
34.03
39.34
41.49
46.36

32.67
32.88
34.14
36.45
38.54

30.45
32.51
35.52
39.37
42.26

23.50
24.42
25.73
27.36
29.53

17.93
18.69
20.34
23.08
25.95

1945..
1946-.
1947..
1948-.
1949-.

44.39
43.82
49.97
54.14
54.92

49.05
46.49
52.46
57.11
58.03

38.29
41.14
46.96
50.61
51.41

52.25
58.03
66.59
72.12
63.28

53.73
56.24
63.30
4
68. 85
70.95

46.32
50.00
55.03
60.11
62.36

5 40.12
44.29
44.77
48.92
51.78

43.94
47.73
51.99
55.58
57.55

31.55
36.35
40.66
43.85
45.93

27.73
30.20
32.71
34.23
34.98

1950-.
1951-.
1952-.
1953-.
1954-.

59.33
64.71
67.97
71.69
71.86

63.32
69.47
73.46
77.23
77.18

54.71
58.46
60.98
63.60
64.74

70.35
77.79
78.09
85.31
80.85

73.73
81.47
88.01
91.76
94.12

64.14
70.93
74.30
76.33
78.74

54.38
58.26
61.22
65.02
68.46

60.36
64.31
67.80
71.69
73.93

47.63
50.65
52.67
54.88
56.70

35.47
37.81
38.63
39.69
40.10

1955...
1956—
1957 •_.

76.52
79.99
82.46

83.21
86.31
88.70

68.06
71.10
73.83

96.26
96.29
106. 22 101.92
110. 69 106. 96

82.12
88.40
93.79

72.07
73. 47
75.81

77.14
81.20
84.35

58.50
60.60
62.73

40.70
42.32
43.34

1956: January

78. 55
78.17
78.78
78.99
78.40
79.19

84.87
84.05
84.25
85.49
84.86
85.27

69.83
69.65
70.31
70.17
70.20
70.95

104. 22 96.17
103.18
97.63
102. 38 95.43
105. 46 99.00
106.02 100.74
107. 82 103. 42

86.73
89.89
87.78
86.51
88.41
87.78

73.28
71.94
71.94
72.34
72.15
73.10

79.17
78.99
80.00
80.80
81.00
81.41

59.44
59.29
59.14
60.06
59.75
61.15

41.51
40.90
41.70
42.12
42.54
42.95

July
August
September...
October
November...
December. __
1957: January
February
March
April
May
June
July
August
September...
October
November 6.
December 6 .

78.60
79.79
81.81
82.21
82.22
84.05
82.41
82.41
82.21
81.59
81.78
82.80

84.25
85.68
88.38
89.01
88.99
91.34
89.16
88.75
88.94
88.29
87.85
88.70
88.00
89.06
89.24
88.75
88.93
88.70

71.71
71.68
72.44
72.65
72.86
73.84

102.16
102. 49
106.12
110.38
106. 79
115. 33
110.63
112.51
109. 58
111.74
107. 76
114.68

85. 67
88.83
87.10
89.46
92.20
90.61
93.08
94.53
89.98
92.82
94.55
93.07

74.21
72.89
74.21
74.03
77.08
75.46
73.92
74.88
74.30
74.69
75.66
76.44
76.63
75.47
75.66
77.22
79.00

82.22
81.61
82.82
82.22
83.03
83.84

62.17
61.78
61.22
60.90
60.42
59.83
61.50
61.50
61.56
61.56
62.32
63.41

42.42
41.90
42.61
42.61
42.29
42.91
42.59
42.59
42.69
43.20
43.93
44.04
43.38
43.34
43.96
43.73
43.29

February
March
April
May
June

82.18
82.80
82.99
82.56
82.92
82.92

72.73
73.10
73.12
72.74
73.13
74.09
74.47
74.26
75.24
74.10
74.30
74.69

()
()

103. 23
104. 53
106.22
106.96
102. 75
104. 91
99.57
105.63
104. 76
105. 70
107. 02
108. 49
112.17 108.93
110.96 110.48
112.91 111.14
110. 66 110.53
104.01 104. 27

()
()

95.63
95.60
93.71
94.95

$27. 72
26.11
26.37
26.76
28.41
29.87
4
29. 54
()
29.82 $23.14

82.81
82.81
83.01
82.80
83.81
84.82
85.65
85.24
86.05
85.63
85.20

64.46
64.63
64.01
62.79
62.25
)

()

$14. 89
15.42
16.14
16.83
17.22
17.64

1 Averages are based upon monthly data (exclusive of switching and terminal companies) summarized in
the M-300 report by the ICC and relate to all employees who received pay during the month, except executives, officials, and staff assistants (ICC group I). Beginning September 1949, data reflect a wage rate
increase and reduction in the basic workweek from 48 to 40 hours.
2
Prior to April 1945, data relate to all employees except executive; from April 1945 to May 1949, mainly to
employees subject to the Fair Labor Standards Act; and beginning June 1949, to nonsupervisory employees
only.
3 Not available.
4
Data beginning with January of year noted are not comparable with those for earlier periods.
* Nine-month average, April through December, because of new series started in April 1945.
6
Preliminary.
NOTE.—Data are for production workers in manufacturing and mining, construction workers in building
construction, and for nonsupervisory employees in other industries (except as noted). Data are for payroll
periods ending nearest the 15th of the month.
The annual figures for 1957 are simple arithmetic averages of the monthly figures shown and are not strictly
comparable with the averages for earlier years, which have been weighted by data on man-hours.
Source: Department of Labor.




144

T A B L E F-26.—Average weekly hours and hourly earnings, gross and excluding overtime, in
manufacturing industries, 1939-57
All manufacturing

Durable goods manufacturing industries

industries

Period

Average
weekly
hours

Average
hourly
earnings

Average
weekly
hours

Average
hourly
earnings

Nondurable goods manufacturing industries
Average
weekly
hours

Average
hourly
earnings

ExExExExExcludcludcludcludcludGross ing Gross ing Gross ing Gross ing Gross ing Gross ing
overoveroveroveroveiovertime
time
time
time
time
time
Exclud-

1939

37.7

1940
1941
1942
1943
1944

38.1
40.6
42.9
44.9
45.2

1945
1946
1947
1948
1949

43.4
40.4
40.4
40.1
39.2

1950
1951
1952
1953
1954

40.5
40.7
40.7
40.5
39.7

1955
1956
19573

40.7
40.4
39.8

1956: January
February..
March
April
May
June

0) $0,633 0)
.661 (0
0)
.729 $0. 702
0)
.853 .805
0)
.961 .894
(0
1. 019 .947
0)
0) 1.023 2.963
0) 1.086 1.051
0) 1.237 .198
(0 1.350 L.310
0) 1.401 1.367
0) 1.465 L. 415
0) 1.59 L. 53
0) 1.67 1.61
0) 1.77 1.71
(0 1.81 1.76
(0 1.88 1.82

38.0

37.6 1.98
37.4 2.07

1.91
2.01
<

41.4
41.1
40.3

40.7
40.5
40.4
40.3
40.0
40.2

37.7
37.7
37.7
37.6
37.4
37.5

1.93
1.93
1.95
1.96
1.96
1.97

I. 87
1.86
L.88
L.90
1.90
L. 91

41.2
41.0
40.9
41.1
40.8
40.8

July
August
September.
October
November.
December..

40.1
40.3
40.7
40.7
40.5
41.0

37.5
37.6
37.6
37.6
37.5
37.9

1.96
1.98
2.01
2.02
2.03
2.05

1.90
1.91
L93
L.94
L. 96
1.98

1957: January
February...
March
April
May
June

40.2
40.2
40.1
39.8
39.7
40.0

37.6
37.7
37.6
37.5
37.5
37.6

2.05
2.05
2.05
2.05
2.06
2.07

July
August
September .
October 3
November 3 .
December .

39.7
40.0
39.9
39.5
39.3
39.3

37.3
37.6
37.4
37.2
37.0
37.3

2.07
2.07
2.08
2.09
2.11
2.11

39.3
42.1
45.1
46.6
46.6
44.1
40.2
40.6
40.5
39.5
41.2
41.6
41.5
41.3
40.2

0) $0. 698 0)
.724 0)
0)
.808 $0. 770
0)
.947 .881
0)
(0 1.059 .976
1.117 1.029
(0
(') 1.111 21.042
0) 1.156 1.122
0) 1.292 1.250
(0 1.410 1.366
0) 1.469 1.434
0) 1.537 1. 480
0) 1.67 1.60
0) 1.77 1.70
0) 1.87 1.80
0) 1.92 1.86
0) 2.01 1.93

37.4
37.0
38.9
40.3
42.5
43.1
42.3
40.5
40.1
39.6
38.8
39.7
39.5
39.6
39.5
39.0

38.1 2.10
37.9 2.20

2.03
2.13

39.8
39.5
39.1

38.1
38.0
38.0
38.2
38.0
37.9

2.06
2.05
2.06
2.08
2.08
2.09

1.98
1.98
1.99
2.00
2.01
2.02

39.9
39.8
39.5
39.2
39.0
39.2

40.7
40.8
41.3
41.4
41.2
41.9

37.9
37.9
38.0
38.1
37.9
38.4

2.07
2.10
2.14
2.15
2.16
2.18

2.01
2.03
2.06
2.06
2.08
2.09

L.98
L. 99
1.99
2.00
2.00
2.01

40.9
40.9
40.8
40.5
40.3
40.5

38.0
38.2
38.2
38.1
38.0
38.1

2.18
2.17
2.18
2.18
2.18
2.19

2.01
2.01
2.02
2.03
2.05

40.0
40.3
40.2
39.8
39.7
39.6

37.7
37.9
37.7
37.5
37.4
37.7

2.20
2.21
2.22
2.23
2.24
2.24

1
2

0) $0.582 0)
.602 0)
0)
.640 $0.625
0)
.723 .698
0)
.803 .763
(0
.861 .814
(0
.904 2.858
0)
(0 1.015 .981
1.171 1.133
0)
(0 1.278 1.241
0) 1.325 1.292
0) 1.378 1.337
0) 1.48 1.43
0) 1.54 1.49
0) 1.61 1.56
0) 1.66 1.61
0) 1.71 1.66
37.0 1.80
36.8 1.89

1.75
1.83

37.2
37.3
37.0
36.8
36.7
36.8

1.75
1.75
1.78
1.79
1.80
1.81

1.70
1.70
1.73
1.74
1.75
1.75

39.4
39.6
39.8
39.7
39.6
39.7

36.9
37.1
37.0
37.0
36.9
37.1

1.82
1.81
1.82
1.83
1.84
1.86

1.76
1.75
1.76
1.77
1.78
1.80

2.10
2.10
2.11
2.11
2.12
2.13

39.1
39.3
39.1
38.9
38.9
39.2

36.8
37.0
36.8
36.7
36.7
36.8

1.86
1.86
1.87
1.87
1.88
1.89

1.81
1.81
1.81
1.82
1.83
1.83

2.14
2.14
2.16
2.16
2.18

39.4
39.5
39.6
39.0
38.7
38.9

36.9
37.0
37.0
36.6
36.4
36.7

1.89
1.88
1.90
1.90
1.92
1.92

1.84
1.83
1.84
1.85
1.86
4

(*)

()

Not available.
Eleven-month average; August 1945 excluded because of VJ Day holiday period.
3 Preliminary.
4
Not available.
NOTE.—Data relate to production workers and are for payroll periods ending nearest the 15th of the
month.
The annual figures for 1957 are simple arithmetic averages of the monthly figures shown and are not
strictly comparable with the averages for earlier years, which have been weighted by data on employment (in the case of hours) and man-hours (in the case of earnings).
Source: Department of Labor.




145

TABLE F—27.—Average weekly earnings, gross and net spendable•, m manufacturing industries, in
current and 1957 prices, 1939-57
Average net spendable weekly earnings i
Average gross weekly
earnings
Period
Current
prices

1957
prices 2

Worker with no
dependents
Current
prices

1957
prices 2

Worker with three
dependents
Current
prices

1957
prices 2

$23.86

$48.20

$23.58

$47.64

$23.62

$47.72

25.20
29.58
36.65
43.14
46.08

50.50
56.45
63.08
69.92
73.49

24.69
28.05
31.77
36.01
38.29

49.48
53.53
54.68
58.36
61.07

24.95
29.28
36.28
41.39
44.06

50 00
55.88
62.44
67.08
70.27

44.39
43.82
49.97
54.14
54.92

69.25
63.05
62.78
63.17
64.76

36.97
37.72
42.76
47.43
48.09

57.68
54.27
53.72
55.34
56.71

42.74
43.20
48.24
53.17
53.83

66.68
62 16
60.60
62.04
63.48

59.33
64.71
67.97
71.69
71.86

69.23
69.96
71.85
75.23
75.09

51.09
54.04
55.66
58.54
59.55

59.61
58.42
58.84
61.43
62.23

57.21
61.28
63.62
66.58
66.78

66 76
66.25
67.25
69.86
69.78

1955
1956
1957 3

76.52
79.99
82.46

80.21
82.63
82.46

63.15
65.86
67.63

66.19
68.04
67.63

70.45
73.22
75.03

73.85
75.64
75.03

1956: January -_
February
March
April
May
June . _ .

78.55
78.17
78.78
78.99
78.40
79.19

82.25
81.85
82.41
82.54
81.50
81.81

64.74
64.44
64.92
65.08
64.62
65.24

67.79
67.48
67.91
68.00
67.17
67.40

72.07
71.77
72.25
72.42
71.95
72.58

75.47
75 15
75.58
75 67
74.79
74.98

78.60
79.79
81.81
82.21
82.22
84.05

80.62
82.00
83.82
83.80
83.73
85.50

64.78
65.71
67.30
67.62
67.63
69.10

66.44
67.53
68.95
68.93
68.87
70.30

72.11
73.06
74.70
75.03
75.04
76.54

73.96
75.09
76.54
76.48
76.42
77.86

82.41
82.41
82.21
81.59
81.78
82.80

83.66
83.33
82.96
82.08
82.03
82.63

67.58
67.58
67.42
66.93
67.08
67.90

68.61
68.33
68.03
67.33
67.28
67.76

74.99
74.99
74.82
74.31
74.47
75.31

76.13
75.82
75.50
74.76
74.69
75.16

82.18
82.80
82.99
82.56
82.92
82.92

81.61
82.14
82.25
81.82
81.86

67.40
67.90
68.05
67.70
67.99
67.99

66.93
67.36
67.44
67.10
67.12

74.80
75.31
75.46
75.11
75.40
75.40

74.28
74.71
74.79
74.44
74.43

1939

_ -.

1940
1941
1942
1943
1944

. . . .

1945
1946
1947
1948
1949
1950
1951
1952
1953
1954 .

_

- -

July .
August
September
October
November
December
1957* January
February
March
April
May
June
July
August
September
October
November33_December

__ _

_

(*)

1

(4)

(*)

Average gross weekly earnings less social security and income taxes.
2 Estimates in current prices divided by the consumer price index on a 1957 base.
3 Preliminary.
4
Not available.
NOTE.—Data relate to production workers and are for payroll periods ending nearest the 15th of the
month.
The annualfiguresfor 1957 are simple arithmetic averages of the monthlyfiguresshown and are not strictly
comparable with the averages for earlier years, which have been weighted by data on man-hours.
Source: Department of Labor.




146

TABLE F-28.—Labor turnover rates in manufacturing industries, 1930-57
[Rates per 100 employees]
Separation rates
Period
Total

Layoff

Quit i

1930..
1931..
1932..
1933..
1934..

5.0
4.0
4.4
3.8
4.1

1.6
.9

1935-.
1936..
1937..
1938..
1939..

Discharge,
military,
and miscellaneous l

Accession
rates

.9
.9

.7

3.0
2.9
3.5
2.7
3.0

0.4
.2
.2
.2
.2

3.1
3.1
3.3
5.4
4.7

3.6
3.4
4.4
4.1
3.1

.9
1.1
1.3
.6
.8

2.5
2.1
3.0
3.4
2.2

.2
.2
.2
.1
.1

4.2
4.4
3.6
3.8
4.1

1940..
1941-.
1942-.
1943..
1944..

3.4
3.9
6.5
7.3
6.8

.9
2.0
3.8
5.2
5.1

2.2
1.3
1.1
.6
.6

.3
.7
1.7
1.5
1.1

4.4
5.4
7.6
7.5
6.1

1945..
1946.
1947..
1948.
1949.

8.3
6.1
4.8
4.6
4.3

5.1
4.3
3.4
2.8
1.5

2.3
1.2
1.0
1.3
2.4

.9
.6
.5
.5
.3

6.3
6.7
5.1
4.4
3.5

1950..
1951.
1952.
1953.
1954.

3.5
4.4
4.1
4.3
3.5

1.9
2.4
2.3
2.3
1.1

1.1
1.2
1.1
1.3
1.9

.5
.8
.6
.7
.4

4.4
4.4
4.4
3.9
3.0

1955...
1956.-.
1957 2.

3.3
3.5
3.5

1.6
1.6
1.4

1.2
1.5
1.6

.5
.5
.4

3.7
3.4
3.0

1956: January...
FebruaryMarch
April
May
June

3.6
3.6
3.5
3.4
3.7
3.4

1.4
1.3
1.4
1.5
1.6
1.6

1.7
1.8
1.6
1.4
1.6
1.3

.5
.5
.5
.5
.5
.5

3.3
3.1
3.1
3.3
3.4
4.2

3.2
3.9
4.4
3.5
3.3
2.8

1.5
2.2
2.6
1.7
1.3
1.0

1.2
1.2
1.4
1.3
1.5
1.4

.4
.5
.5
.5
.5
.4

3.3
3.8
4.1
4.2
3.0
2.3

3.3
3.0
3.3
3.3
3.4
3.0

1.3
1.2
1.3
1.3
1.4
1.3

1.5
1.4
1.4
1.5
1.5
1.1

.5
.4
.4
.4
.6
.4

3.2
2.8
2.8
2.8
3.0
3.9

3.1
4.0
4.4
4.0
3.9

1.4
1.9
2.2
1.3
.9

1.3
1.6
1.8
2.3
2.6

.4
.6
.4
.4
.4

3.2
3.2
3.3
2.9
2.1

July
August
September..
October
November.
December..
1957: January...
February.
March
April
May
June
July
August
September. . .
October
November 3..
1

Prior to 1940, military and miscellaneous separations are included with quits.
2 Based on data through November.
Preliminary.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Labor.

3




147

PRODUCTION AND BUSINESS ACTIVITY
TABLE F-29.—Industrial production indexes, 1929—57
[1947-49=100]
Industrial production
Manufactures
Durable
Period
Total
Total

Total

NonPri- Fabri- elecmary cated trical
met- metal maprod- chinals
ucts
ery

InstruElec- Trans- ments
trical porta- and re-1
mation lated
chin- equip- prodery
ment ucts

FurClay, niture
glass, and
and miscellum- laneous
ber
prod- manufacucts
tures

1929

59

1930
1931
1932
1933
1934

49
40
31
37
40

45
31
19
24
30

1935
1936
1937
1938
1939

47
56
61
48
58

38
49
55
35
49

1940
1941
1942
1943
1944

67
87
106
127
125

110
133
130

63
91
126
162
159

1945
1946
1947
1948
1949

107
90
100
104
97

110
90
100
103
97

123
86
101
104
95

103
107
90

103
104
93

104
106
90

101
101

96
102
102

100
105
95

100
105
95

100
104
95

1950
1951
1952
1953
1954

112
120
124
134
125

113
121
125
136
127

116
128
136
153
137

115
126
116
132
108

115
122
121
136
123

105
126
136
143
125

131
138
167
194
177

120
135
154

114
128
142
155
140

115
121
118
125
123

117
116
118
131
121

1955
1956
1957

139
143

140
144
144

155
159
159

140
138
132

134
135
138

135
153
150

194
207
203

203
199
211

149
166
172

138
140
133

132
135
131

H3

Seasonally adjusted
1956: January. .
February.
March
April
May
June

143
143
141
143
141
141

145
144
143
144
143
142

160
158
157
159
157
157

148
146
145
146
141
136

136
134
132
136
130
132

148
149
150
150
151
151

201
194
193
208
208
208

200
199
196
193
187
188

160
161
160
162
164
163

141
138
135
139
141
141

136
135
133
135
135
135

July
August
September
October
November
December

136
143
144
146
146
147

138
144
146
147
147
149

148
158
162
163
165
167

69
125
148
147
146
145

130
134
139
140
139
141

154
157
158
156
155
157

210
211
210
211
214
216

189
191
193
203
216
223

167
171
171
172
172
173

143
145
139
138
138
136

136
136
136
136
134
134

1957: January....
FebruaryMarch
April
May
June

146
146
145
143
143
144

147
148
147
145
145
146

164
164
162
160
159
162

143
143
137
134
132
132

137
138
137
140
136
139

154
155
155
151
152
151

208
204
204
196
199
209

222
225
222
217
213
215

173
174
173
172
171
171

133
133
132
133
136
140

131
129
130
132
132
133

144
145
144
141
139
136

146
147
146
142
140
138

161
162
159
154
153
148

132
136
131
128
121
111

141
140
140
136
139
136

152
152
151
146
142
138

214
213
207
194
199
194

210
209
205
200
201
195

173
175
174
170
171
167

134
139
135
131
128
125

134
135
136
131
128
126

July
August
September
October
November
December i

See footnotes at end of table.




I48

TABLE F-29.—Industrial production indexes,

1929-57—Continued

[1947-49=100]
Industrial production •

Output of consumer durables

Manufactures
Nondurable
Other
consumer
durables

Total

ChemTex- Rub- Paper ical Foods, Minber
tiles
and bever- erals
and
and
and leather print- petro- ages,
apleum and toparel prod- ing
prod- bacco
ucts
ucts

1929

56

68

1930
1931—
1932
1933
1934-

51
48
42
48
49

59
51
42
48
51

55
61
64
57
66

55
63
71
62
68

1940. 1941
1942
1943—
1944

69
84
93
103
99

76
81
84
87
93

1945
1946
1947 ..
1948
1949

96
95
99
102
99

99
103
97

106
101
93

96
103
101

97
103
100

101
100
100

92
91
100
106
94

98
102
101

85
93
122

99
105
96

109
105
86

1952
1953.
1954

111
114
114
118
116

110
106
105
107
100

110
105
107
113
104

114
118
118
125
125

118
132
133
142
142

103
105
106
107
106

105
115
114
116
111

133
114
105
127
116

159
127
103
146
131

143
118
115
132
122

95
96
95
102
95

1955
1956 J
1957

126
129
130

109
108
104

122
117
119

137
145
148

159
167
172

109
112
112

122
129
128

147
131
130

190
138
146

144
144
133

106
111
111

1956: January
February
March
April
May
June

130
130
128
130
129
128

111
112
107
107
107
106

127
126
119
120
114
110

142
142
142
145
145
145

167
167
167
168
167
166

112
112
111
112
111
110

129
129
129
129
128
129

144
137
133
132
125
123

168
155
145
140
118
120

149
146
144
145
141
138

113
111
108
111
110
110

128
130
130
131
129
130

106
107
108
111
105
106

112
117
116
117
114
118

146
147
145
148
147
147

164
167
168
167
168
170

111
113
113
113
113
113

123
130
131
131
130
130

127
127
123
123
132
141

122
124
106
117
152
168

148
141
148
142
136
143

111
114
113
110
109
113

131
131
131
129
130
130

104
105
105
104
105
106

122
124
123
118
115
116

148
147
147
147
148
148

174
172
171
172
174
170

111
113
113
110
111
112

131
133
133
130
130
127

137
138
134
124
124
129

169
167
159
141
139
144

130
134
132
124
126
133

114
114
111
109
108
108

130
131
132
130
128
127

104
105
107
103
99
97

117
123
119
117
117
114

146
149
149
149
148
148

173
174
174
173
171
171

114
113
113
111
111
111

127
129
129
128
123
121

129
133
129
121
133
127

134
145
129
118
154
140

142
138
140
134
134

111
114
116
112
111
110

Period

1935
1936—_
1937
1938 .
1939

.

1950

1951 —

.

-

Major
Total Autos lousehold
goods

Seasonally adjusted

July
August
September
October
November
December
1957: January
February
March
April

Mav
June

. .
-

July
August
September
October
Novemberl
December
1

2
Preliminary.
Not available.
NOTE.—Detail not available prior to 1947.
Source: Board of Governors of the Federal Reserve System.




149

TABLE F-30.—Business expenditures for new plant and equipment, 1939 and 1945-58
[Billions of dollars]

Manufacturing
Period

Total i

Total

Transportation

Dura- Nonble durable
goods goods

Mining

Railroad

Com-

Public mercial
utiliand
ties
Other
other 2

1939

5.51

1.94

0.76

1.19

0.33

0.28

0.36

0.52

2.08

1945
1946
1947
1948
1949

8.69
14.85
20.61
22.06
19.28

3.98
6.79
8.70
9.13
7.15

1.59
3.11
3.41
3.48
2.59

2.39
3.68
5.30
5.65
4.56

.38
.43
.69
.88
.79

.55
.58
.89
1.32
1.35

.57
.92
1.30
1.28
.89

.50
.79
1.54
2.54
3.12

2.70
5.33
7.49
6.90
5.98

20.60
25.64
26.49
28.32
26.83

7.49
10.85
11.63
11.91
11.04

3.14
5.17
5.61
5.65
5.09

4.36
5.68
6.02
6.26
5.95

.71
.93
.98
.99
.98

1.11
1.47
1.40
1.31
.85

1.21
1.49
1.50
1.56
1.51

3.31
3.66
3.89
4.55
4.22

6.78
7.24
7.09
8.00
8.23

28.70
35.08
37.03

11.44
14.95
16.05

5.44
7.62
8.05

6.00
7.33
8.00

.96
1.24
1.25

.92
1.23
1.39

1.60
1.71
1.80

4.31
4.90
6.28

9.47
11.05
10,26

1950
1951
1952
1953
1954

--

-

.

- -

..

-

1955 3
19563
1957 3 4

Seasonally adjusted annual rates
1955: First quarter
Second quarter
Third quarter
Fourth quarter.

25.65
27.19
29.65
31.45

10.17
10.84
11.97
12.48

4.78
5.06
5.77
6.00

5.39
5.78
6.20
6.48

0.80
.94
.99
1.08

0.74
.80
.96
1.17

1.46
1.62
1.60
1.70

4.01
4.09
4.43
4.48

8.46
8.90
9.70
10.54

1956: First quarter
Second quarter
Third quarter
Fourth quarter
1957: First quarter
Second quarter.
Third quarter 4
Fourth quarter

32.82
34.49
35.87
36.46

13.45
14.65
15.78
15.81

6.57
7.38
8.20
8.21

6.88
7.27
7.58
7.60

1.13
1.28
1.26
1.28

1.25
1.22
1.20
1.23

1.65
1.63
1.79
1.76

4.56
4.61
5.08
5.27

10.78
11.10
10.76
11.11

36.89
37.03
37.75
37.47

16.12
16.25
16.37
16.16

8.09
8.31
8.23
7.93

8.03
7.94
8.14
8.23

1.35
1.28
1.24
1.20

1.42
1.35
1.54
1.22

1.52
1.82
1.81
2.03

5.72
5.93
6.64
6.62

10.76
10.40
10.15
10.24

1958: First quarter *

35.52

14.96

7.27

7.69

1.16

1.16

1.82

6.48

9.94

1
2

Excludes agriculture.
Commercial and other includes trade, service,finance,communications, and construction.
3 Annual total is the sum of unadjusted quarterly expenditures; it does not necessarily coincide
with the average of seasonally adjustedfigures,which include adjustments, when necessary, for systematic
tendencies in anticipatory data.
* Estimates for fourth quarter 1957 and first quarter 1958 based on anticipated capital expenditures reported by business in late October and November 1957.
NOTE.—Thesefiguresdo not agree precisely with the plant and equipment expenditures included in the
gross national product estimates of the Department of Commerce. The main difference lies in the inclusion
in the gross national product of investment by farmers, professionals, and institutions, and of certain outlays charged to current account.
This series is not available for years prior to 1939 and for 1940 to 1944.
Detail will not necessarily add to totals because of rounding.
Sources: Securities and Exchange Commission and Department of Commerce.




I5O

TABLE F-31.—New construction activity, 1929-57
[Value put in place, millions of dollars]

Period

Total
new
construction

Private construction
Resi- Nonresidential building and other construction
dential
Total i building
(nonComIndus- Public
Total
3
farm)
mercial 2 trial
utility Other

Public
construction

1929..

10, 793

8,307

3, 625

4,682

1,135

949

1,578

1,020

2,486

1930..
193119321933..
1934..

8,741
6,427
3, 538
2,879
3,720

5, 883
3,768
1,676
1,231
1,509

2,075
1,565
630
470
625

3.808
2,203
1,046
761
884

454
223
130
173

532
221
74
176
191

1,527
946
467
261

856
582
282
194
194

2,858
2, 659
1,862
1,648
2,211

19351936193719381939-

4,232
6,497
6,999
6,980
8,198

1,999
2,981
3,903
3,560
4,389

1,010
1,565
1,875
1,990
2,680

1,416
2,028
1,570
1,709

211
290
387
285
292

158
266
492
232
254

363
518
705
605
683

257
342
444
448
480

2,233
3, 516
3,096
3,420
3,809

194019411942..
19431944-

8,682
11,957
14, 075
8,301
5, 259

5,054
6,206
3,415
1,979
2,186

2,985
3,510
1,715
885
815

2,069
2,696
1,700
1,094
1,371

348
409
155
33
56

442
801
346
156
208

771
872
786
570
725

508
614
413
335
382

3,628
5, 751
10,660
6,322
3,073

1945..
194619471948..
1949-

5,809
12, 737
17, 915
23,222
24,163

3,411
10, 375
14, 481
18, 395
17, 759

1,276
4,752
7,535
10.122
9,642

2,135
5,623
6,946
8,273
8,117

203
1,132
856
,253
1,027

642
1,689
1,702
1,397
972

827
1,374
2,338
3,043
3,323

463
1,428
2,050
2,580
2,795

2,398
2,362
3,434
4,827
6,404

1950..
19511952..
1953..
1954..

29,955
32, 739
34, 750
37,118
39,601

22, 954
23,320
23,849
25, 724
27, 679

14,100
12,529
12, 842
13, 777
15, 379

8,854
10, 791
11,007
11,947
12,300

,371
,137
,791
2,212

1,062
2,117
2,320
2,229
2,030

3,330
3,729
4,003
4,416
4,284

3,174
3,574
3,547
3,511
3,774

7,001
9,419
10,901
11,394
11,922

1955..
19561957*

44, 581
46,060
47, 255

32,620
33, 242
33, 313

18, 705
17,632
16, 571

13, 915
15, 610
16, 742

3,218
3,631
3,570

2,399
3,084
3,162

4,543
5,113
5,830

3,755
3,782
4,180

11, 961
12, 818
13, 942

Seasonally adjusted annual rates
1956: January
February...
March
April
May
June

44, 556
45,084
45,120
45,660
46,188
46, 548

32,328
32,844
33,000
33,144
33,420
33, 504

17,760
17,868
17,880
17, 784
17, 628
17,700

14,568
14, 976
15,120
15,360
15, 792
15, 804

3,552
3,624
3,708
3,732
3 744
3,780

2,628
2,700
2,772
2,940
3,120
3,216

4,752
5,028
4,956
4,992
5,244
5,076

3,636
3,624
3,684
3,696
3,684
3,732

12,228
12,240
12,120
12, 516
12,768
13,044

July
August
September.
October
November..
December-

46, 476
46,332
46,284
46,680
46, 728
46, 848

33, 456
33,360
33, 216
33, 336
33,864
33, 588

17,568
17, 592
17, 508
17, 412
17, 616
17,520

15,888
15, 768
15, 708
15, 924
16, 248
16, 068

3, 696
3,504
3,456
3,552
3,648
3,660

3,276
3,312
3,312
3,276
3,228
3,228

5,148
5,124
5,076
5,184
5,424
5,220

3,768
3,828
3,864
3,912
3,948
3,960

13,020
12, 972
13,068
13, 344
12,864
13,260

1957: January
February. _
March
April
May
June

47,064
46,332
46,944
46, 872
46,860
46,800

32,832
32, 880
33,024
33, 048
33, 012
32,904

16,932
16, 692
16,596
16,332
15,852
15,888

15,900
16,188
16, 428
16, 716
17.160
17,016

3,504
3,396
3,504
3,540
3,648
3,636

3,168
3,240
3,288
3,324
3,336
3,276

5,220
5,472
5,508
5,664
5,964
5,868

4,008
4,080
4,128
4,188
4,212
4,236

14,232
13,452
13, 920
13,824
13,848
13,896

July
August
September.
October
November.
December 4

45, 996
47, 304
47, 748
48, 768
48, 516
48, 612

32,868
33,444
33, 480
33, 996
34,116
34, 248

16,188
16, 524
16,656
16,968
17,208
17, 328

16, 680
16,920
16,824
17,028
16,908
16,920

3.516
3,564
3,576
3,696
3,672
3,636

3,180
3,192
3,084
3,012
2,952
2,916

5,904
5,916
5,940
6,120
6,036
6,096

4,080
4,248
4,224
4,200
4,248
4,272

13,128
13,860
14, 268
14, 772
14,400
14,364

1
Excludes construction expenditures for crude petroleum and natural gas drilling, and therefore does not
agree with the new construction expenditures included in the gross national product (Table F - l ) .
2
Office buildings, warehouses, stores, restaurants, and garages.
3 Includes farm, institutional, and all other.
4
Preliminary.
Sources: Department of Commerce and Department of Labor.




TABLE F-32.—New public construction activity, 1929-57
[Value put in place, millions of dollars]
Total new public construction i

Major types of new public construction

Federal
Year

All
public
sources Direct Federal
aid

State
and
local

Highway

Sewer
Conand
Hoswater servapital
tion
and
Educa- and
and
tional institu- misceldetional laneous veloppublic
ment
service

Military
facilities

All
other
public a

1929

2,486

155

80

2,251

1,266

389

101

404

19

192

1930
1931
1932
1933
1934

2,858
2,659
1,862
1,648
2,211

209
271
333
516

104
235
111
286
721

2,545
2,153
1,418
846
864

1,516
1,355
958
847
1,000

364
285
130
52
148

118
110
83
49
51

500
479
291
160
228

137
156
150
359
518

29
40
34
36
47

194
234
216
145
219

1935
1936
1937
1938
1939

2,233
3,516
3,096
3,420
3,809

814
797
776
717
759

567
1,566
1.117
1,320
1,377

852
1,153
1,203
1,383
1,673

845
,362
,226
,421
,381

153
366
253
311
468

38
74
73
97
127

246
509
445
492
507

700
658
605
551
570

37
29
37
62
125

214
518
457
486
631

1940
1941
1942
1943
1944

3,628
5,751
10,660
6,322
3,073

1,182
3,751
9,313
5,609
2,505

946
697
475
268
126

1,500
1,303
872
445
442

,302
,066
734
446
362

156
158
128
63
41

54
42
35
44
58

469
393
254
156
125

528
500
357
285
163

385
1,620
5,016
2,550
837

734
1,972
4,136
2,778
1,487

1945
1946
1947
1948
1949

2,398
2,362
3,434
4,827
6,404

1,737
870
840
1,177
1,488

244
409
417
461

562
1,248
2,185
3,233
4,455

398
895
1,451
1,774
2,131

59
101
287
618

85
85
85
223
477

152
278
492
699
803

130
260
424
670
852

188
204
158
137

884
555
491
685
1,070

1950
1951
1952
1953
1954

7,001
9,419
10,901
11,394
11,922

1,625
2,982
4,186
4,151
3,445

465
479
619
700
709

4,911
5,958
6,096
6,543
7,768

2,272
2,518
2,820
3,160
3,870

1,133
1,513
1,619
1,714
2,134

496
528
473
365
360

819
959
958
1,050
1,171

942
912
900
892
773

177
887
1,388
1,307
1,030

1,162
2,102
2,743
2,906
2,584

1955
1956
1957 3

11,961
12, 818
13, 942

2,800
2,774
2,958

758
861
1,349

8,403
9,183
9,635

4,050
4,470
4,840

2,442
2,549
2,832

322
298
333

1,318
1,659
1,740

701
826
975

1,313
1,395
1,275

1,815
1,621
1,947

1
For expenditures classified by ownership, combine "Federal aid" and "State and local" columns to
obtain State and local ownership. "Direct" column stands as it is for Federal ownership.
2
Includes nonresidential building other than educational and hospital and institutional (industrial,
commercial, public administration, social and recreational, and miscellaneous), public residential buildings,
and publicly owned parks and playgrounds, memorials, etc.
3 Preliminary.
Sources: Department of Commerce and Department of Labor.




TABLE F-33.—Housing starts and applications for financing, 1929-57
[Thousands of units]
Proposed home
construction

New nonfarm housing starts
Privately financed
Period
Total

Publicly
financed

Government programs
Total
Total i F H A i

VA

Private,
seasonFHA
ally ad- applica- VA appraisal
2
justed
requests
annual tions
rates

1929 3.

509.0

509.0

1930
1931
1932
1933
1934

330.0
254.0
134.0
93.0
126.0

330.0
254.0
134.0
93.0
126.0

1935..
1936..
1937..
1938..
1939..

221.0
319.0
336.0
406.0
515.0

5.3
14.8
3.6
6.7
56.6

215.7
304.2
332.4
399.3
458.4

14.0
49.4
60.0
118.7
158.1

14.0
49.4
60.0
118.7
158.1

* 20. 6
47.8
49.8
131.1
179.8

1940..
1941..
1942..
1943..
1944..

602.6
706.1
356. 0
191.0
141.8

73.0
86.6
54.8
7.3
3.1

529. 6
619.5
301.2
183.7
138.7

180.1
220.4
165.7
146.2
93.3

180.1
220.4
165.7
146.2
93.3

231.2
288.5
238.5
144.4
62.9

1945..1946.—
1947..1948.—
1949.—

209.3
670.5
849.0
931.6
1, 025.1

1.2
8.0
3.4
18.1
36.3

208.1
662.5
845.6
913. 5

1950..
1951..
1952..
1953..
1954..

1, 396.0
1, 091. 3
1,127. 0
1,103. 8
1,220. 4

43.8
71.2
58.5
35.5
18.7

1, 352. 2
1, 020.1
1,068. 5
1,068. 3
1, 201. 7

686.7
412.2
421.2
408.6
583.3

1955..
1956..
1957 7

1, 328.9
1,118.1
1,039.2

19.4
24.2
49.5

1,309. 5
1, 093. 9
989.7

75.1
78.4
98.6
111.4
113.7
107. 4

1.4
1.4
4.7
1.5
2.9
2.8

101.1
103.9
93.9
93.6
77.4
63.6

1956: January
February
March
April
May
June
July
August
September..
October
November..
December..
1957: January __
February.
March
April
May
June
July
August
September. _
October
November..
December 7_

0)
()

56.6
121.7
286.4
293.2
327.0

486.7
263.5
279.9
252.0
276.3

6 200. 0
148.7
141.3
156.6
307.0

397.7
192.8
267.9
253.7
338.6

()
164.4
226.3
251.4
535.4

669.6
460. 0
296.7

276.7
189.3
168.4

392.9
270.7
128.3

306.2
197.7
198.8

620.8
401.5
159.3

73.7
77.0
93.9
109.9
110.8
104.6

36.0
30.4
37.5
46.2
46.3
44.8

13.0
13.1
16.9
19.8
19.7
18.4

23.0
17.4
20.6
26.4
26.6
26.4

1,195
1,127
1,09 k
1,157
1,146
1,091

15.6
18.5
24.9
22.3
22.1
16.8

29.3
37.1
37.5
45.8
44.4
35.6

2.1
.7
3.2
2.4
.4
.7

99.0
103.2
90.7
91.2
77.0
62.9

42.8
43.1
39.1
39.4
29.9
24.6

17.6
18.6
15.1
15.5
12.1
9.6

25.2
24.4
24.0
24.0
17.8
15.0

1,070
1,136
1,008
1,052
1,027
1,020

16.9
16.2
13. 4
13.3
10.0
7.7

34.6
36.5
30.0
29.7
21.9
19.0

63.0
65.8
87.0
93.7
103.0

2.9
2.7
7.7
2.3
6.1
5.4

60.1
63.1
79.3
91.4
96.9
94.5

19.7
19.2
22.7
25.6
27.0
28.3

7.7
9.3
11.3
12.1
14.9
15.3

12.0
9.9
11.4
13.5
12.0
13.0

935
933
962
994
995

10. 5
12.1
16.2
16.8
16.9
16.6

18.9
20.2
19.5
19.4
16.6
13.7

99.9
100.0
91.9
7
95.0
7
78.0
62.0

6.0
3.2
1.7
7
8.0
7 2.3
1.2

93.9
96.8
90.2
7
87.0
7
75.7
60.8

28.0
29.3
28.2
28.4
21.4
18.9

15.7
17.7
16.4
18.7
15.0
14.2

12.3
11.6
11.8
9.7
6.4
4.7

1,015
1,056
1,012
7
1,000
11,010
970

18.4
22.3
20.4
20.2
14.7
13.6

14.0
14.5
8.9
6.4
3.7
3.5

41.2
69.0
229.0
294.1
363.8

()

1 Excludes armed forces housing in 1956 (2,567 units) and 1957 (13,731 units).
2 Units in mortgage applications for new-home construction.
» The number of starts for the years 1920-28, respectively, was as follows: 247,000; 449,000; 716,000; 871,000;
893,000; 937,000; 849,000; 810,000 and 753,000.
* FHA program approved in June 1934; all 1934 activity included in 1935.
8
Not available.
6
Partly estimated.
7
Preliminary.
Sources: Department of Labor, Federal Housing Administration (FHA), and Veterans Administration (VA).




153

TABLE F-34.—Sales and inventories in manufacturing and trade, 1939-57
[Amounts in billions of dollars]
Total manufacturing and trade l

Manufacturing

Wholesale trade l

Retail trade 1

Period
InvenInvenInvenSales 2 tories 3 Ratio Sales 2 tories 3 Ratio • Sales 2 tories 3 Ratio *

Inventories 3 Ratio *

1939....

10.8

20.1

1.77

5.1

11.5

2.11

2.2

3.1

1.34

3.5

5.5

1.53

1940...
1941....
1942....
1943....
1944....

12.1
15.8
18.6
21.9
23.8

22.2
28.8
31.1
31.3
31.1

.72
.58
.66
.40
.33

5.9
8.2
10.4
12.8
13.8

12.8
17.0
19.3
20.1
19.5

2.06
1.78
1.77
1.51
1.45

2.4
3.0
3.4
3.8
4.2

3.2
4.0
3.8
3.7
3.9

1.30
1.20
1.19
.97
.94

3.9
4.6
4.8
5.3
5.9

6.1
7.8
8.0
7.6
7.6

1.49
1.48
1.76
1.42
1.31

1945....
1946....
1947....

23.9
27.2
33.2

30.9
42.9
50.5

.30
.33
.43

12.9
12.6
15.9

18.4
24.5
28.9

1.48
1.66
1.71

4.5
6.0
7.3

4.6
6.6
7.6

.91
.90
1.01

6.5
8.5
10.0

7.9
11.9
14.1

1.21
1.13
1.27

1948—
1949—
1950—

36.1
34.5
39.7

55.4
51.8
62.8

.48
.56
.39

17.6
16.4
19.3

31.7
28.9
34.3

1.72
1.86
1.57

7.5
7.2
8.4

7.9
7.6
9.1

1.01
1.06
.96

10.9
10.9
12.0

15.8
15.3
19.3

1.40
1.42
1.40

1951...
1952...
1953...
1954...

44.7
45.9
48.4
47.4

73.8
75.4
78.6
75.5

,58
.61
.61
.62

22.3
22.8
24.5
23.5

42.8
43.8
45.4
43.0

1.77
1.90
1.84
1.86

9.7

9.7
10.0
10.5
10.4

1.05
1.01
1.06
1.07

13.0
13.5
14.1
14.1

21.2
21.6
22.7
22.1

1.65
1.55
1.59
1.59

1955—
1956—
1957 * •

52.3
54.8
56.3

81.7
89.1
90.9

.49
.56
.61

26.3
27.7
28.4

46.4
52.3
53.8

1.68
1.79
1.89

10.6
11.3
11.3

11.4
13.0
12.8

1.02
1.08
1.14

15.3
15.8
16.7

23.9
23.9
24.3

1.50
1.50
1.44

Seasonally adjusted
1956: January
54.3
February. _. 54.0
March
53.3
53.9
April
M a y . . . . — 54.7
54.5
June

82.5
83.5
83.7
84.5
85.3
85.6

] .51

1.54
1.57
1.56
1.55
1.57

27.6
27.7
26.8
27.5
27.6
27.4

46.8
47.6
48.0
48.6
49.3
49.6

1.69
1.70
1.78
1.76
1.78
1.81

11.2
11.1
10.8
11.0
11.4
11.3

11.6
11.7
11.9
12.0
12.1
12.2

1.03
1.05
1.09
1.09
1.06
1.08

15.5
15.2
15.6
15.4
15.7
15.9

24.1
24.2
23.8
23.9
23.9
23.8

1.55
1.59
1.54
1.55
1.52
1.51

July
August
September.
October
November..
December...

53.9
55.0
54.2
55.9
56.3
57.0

86.2
86.6
86.9
87.8
88.5
89.1

L. 59
.57
.60
L. 56
L. 57
L. 56

26.8
27.6
27.1
28.7
28.5
28.8

1.86
50.0
50.4
1.82
50.8
1.86
51.8 . 1.79
52.2
1.83
52.3
1.81

11.2
11.3
11.1
11.4
11.6
11.8

12.3
12.5
12.6
12.7
12.8
13.0

1.09
1.10
1.12
1.11
1.10
1.09

15.9
16.1
15.9
15.9
16.2
16.3

23.8
23.7
23.4
23.3
23.5
23.9

1.50
1.48
1.49
1.47
1.44
1.45

1957: January
February. _.
March
April
May
June

57.9
57.4
56.2
56.4
56.8
56.4

89.3
89.6
89.9
90.1
90.6
90.7

L. 54
L. 56
L. 60
L.59
1.59
L. 61

30.0
29.5
28.4
28.7
28.6
28.1

52.4
52.9
53.3
53.7
53.9
53.9

1.75
1.78
1.87
1.87
1.88
1.91

11.6
11.5
11.4
11.3
11.5
11.4

12.9
12.8
12.8
12.8
12.7
12.7

1.11
1.11
1.12
1.13
1.11
1.11

16.3
16.4
16.3
16.4
16.6
16.8

24.0
23.9
23.7
23.7
23.9
24.1

1.47
1.46
1.46
1.44
1.43
1.43

July
August
September.
October
November66
December .

57.4
57.0
56.3
55.7
54.9

91.0
91.3
91.3
91.1
90.9

L. 58
L60
1.62
L.64
L.66

29.0
28.6
28.2
28.1
27.4

54.1
54.2
54.2
54.1
53.8

1.86
1.89
1.92
1.93
1.97

11.4
11.4
11.2
11.0
10.9

12.7
12.8
12.8
12.8
12.8

1.12
1.12
1.15
1.17
1.17

17.0
17.0
16.9
16.7
16.6
16.7

24.1
24.3
24.4
24.2
24.3

1.42
1.42
1.44
L45
1.47

1
The series beginning in 1948 are not comparable with the previous years because of changes in definition
for the wholesale series. Beginning in 1951, the estimates of retail sales and inventories are based on a
new method of estimation adopted by the Bureau of the Census.
2
Monthly average shown for year and total for month.
3
Seasonally adjusted, end of period.
4
Inventory/sales ratio. For annual periods weighted average inventories to average monthly sales;
forfi monthly data, ratio of average end of current and previous month's inventories to sales for month.
Where December data not available, data for year calculated on basis of no change from November.
6
Preliminary.

NOTE.—For a description of the series and their comparability, see Survey of Current. Business, September
and November 1952, January 1954, and June 1957 for retail, and August 1957 for manufacturing and wholesale.
The inventory figures in this table do not agree with the estimates of change in business inventories included in the gross national product since these figures cover only manufacturing and trade rather than all
business, and show inventories in terms of current book value without adjustment for revaluation.
Source: Department of Commerce.




154

TABLE F-35.—Manufacturers*

sales, inventories, and orders, 1939—57

[Billions of dollars]
Inventories 2

Period

New orders *

UnDurable-goods
Nondurable-goods
filled
industries
industries
Dura- NonDura- Non- orders
ble- durable (unble- durablegoods goods PurTotal goods goods adjustPurindus- indus- ed) 3
indus- indus- chased Goods- Fin- chased Goods- Fintries
tries mate- j inished matein- ished
tries
tries
rials process goods rials process goods
1.9

3.2

1.8

1.5

2.1

2.4

0.8

2.9

5.4

2.2

3.2

7.0

1941....
1942....
1943—.
1944....

2.5
3.8
5.2
6.9
7.3

3.4
4.4
5.3
6.0
6.4

2.1
3.1
3.7
3.9
3.3

2.0
3.2
4.6
5.2
5.0

2.2
2.3
2.2
2.1
2.1

2.6
4.0
4.3
4.5
4.7

1.2
1.2
1.4
1.4

3.0
3.2
3.3
3.0
3.0

6.8
9.8
13.3
12.7
11.9

3.4
5.3
8.0
6.8
5.5

3.4
4.5
5.3
5.9
6.4

18.4
37.9
72.9
71.5
49.0

1945...
1946...
1947—
1948—
1949—

6.3
5.0
6.7
7.6
7.1

6.6
7.6
9.2
10.0
9.3

3.2
4.5
5.1
5.6
4.6

3.5
4.6
5.2
5.4
4.7

2.1
2.9
4.0
4.7
4.7

4.9
6.5
7.2
7.3
6.5

1.5
1.8
2.2
2.2
2.1

3.2
4.2
5.2
6.5
6.3

10.5
13.7
15.6
17.4
15.9

3.9
5.9
6.4
7.5
6.6

6.6
7.8
9.3
9.9
9.3

20.9
33.8
30.3
26.9
20.8

1950—
1951—
1952...
1953...
1954...

8.8
10.4
10.9
12.4
11.2

10.5
11.9
11.9
12.1
12.3

6.1
7.4
7.3
7.4
6.5

6.0
8.6
10.2
10.7
9.8

4.7
6.8
6.9
8.1
7.7

8.4
9.1
8.6
8.1
7.9

2.5
2.7
2.7
2.7
2.6

6.6
8.2
8.1
8.4
8.4

21.0
24.5
23.6
23.1
22.5

10.3
12.7
11.7
11.0
10.2

10.7
11.8
11.9
12.1
12.3

41.1
67.6
76.3
59.5
46.9

1955...
1956...
1957 * *.

13.1
13.8
14.2

13.3
13.9
14.3

7.4
8.7
8.5

11.1
12.8
13.1

8.2
9.2

8.1
8.5
9.0

2.8
3.0
3.0

8.8
10.1
10.4

27.2
28.3
27.3

13.9
14.4
13.1

13.3
13.9
14.2

56.9
64.2
51.8

1940—

Seasonally adjusted
1956:
January
February...
March
April
May
June

13.8
13.8
13.3
13.7
13.6
13.6

13.8
13.9
13.6
13.8
14.0
13.8

7.5
7.7
7.9
8.0
8.1
8.1

11.2
11.4
11.6
11.8
12.1
12.0

8.2
8.4
8.4
8.4
8.5
8.7

8.2
8.2
8.2
8.2
8.3
8.3

2.8
2.8
2.8
2.8
2.8
2.9

8.9
9.1
9.2
9.4
9.4
9.6

28.1
28.1
27.4
28.3
28.6
27.7

14.4
14.4
13.8
14.5
14.7
14.1

13.7
13.7
13.6
13.8
14.0
13.6

58.3
58.7
59.0
59.6
59.7
60.6

July
August
September..
October
November.
December..

13.0
13.7
13.4
14.4
14.3
14.5

13.8
13.9
13.7
14.3
14.2
14.3

8.2
8.2
8.2
8.5
8.6
8.7

12.1
12.2
12.3
12.6
12.9
12.8

8.7
8.8
8.9
9.1
9.1
9.2

8.3
8.4
8.4
8.6
8.6
8.5

2.9
2.9
2.9
3.0
2.9
3.0

9.8
9.9

10.0
10.0
10.1
10.1

27.7
31.1
26.8
28.8
30.0
29.0

14.1
17.3
13.0
14.3
15.8
14.5

13.6
13.7
13.7
14.5
14.2
14.5

62.4
64.1
63.6
62.8
63.4
64.2

1957:
January
February..
March
April
May
June

14.9
14.8
14.2
14.3
14.3
14.2

15.0
14.7
14.2
14.4
14.3
13.9

8.6
8.7
8.7
8.6
8.5
8.4

12.8
12.9
13.0
13.4
13.4
13.3

9.2
9.3
9.4
9.4
9.6
9.7

8.6
8.7
8.7
8.7
8.9
9.0

3.0
3.0
3.0
3.0
2.9
3.0

10.2
10.3
10.4
10.6
10.5
10.5

28.9
28.6
28.1
27.9
28.4
27.1

14.2
14.1
13.9
13.2
14.1
13.2

14.8
14.5
14.2
14.7
14.3
13.8

64.0
63.7
63.2
61.9
61.1
60.3

July
August
September.
October
November 5

14.6
14.3
14.1
13.9
13.5

14.5
14.3
14.1
14.1
13.9

8.4
8.4
8.5
8.6
8.5

13.5
13.6
13.4
13.2
13.1

9.8
9.8
9.8
9.9
9.8

9.0
9.0
8.9
8.9
9.0

2.9
3.0
2.9
3.0
3.0

10.5
10.5
10.5
10.4
10.4

27.3
27.3
26.6
26.2
26.2

13.0
13.2
12.5
12.2
12.3

14.3
14.2
14.0
14.1
13.9

59.3
57.8
56.0
53.2
51.8

1
2

Monthly average shown for year and total for month.
Book value, seasonally adjusted, end of period.
3 End of period.
* Based on data through November.
5
Preliminary.
NOTE.—See Table F-34 for total sales and inventories of manufacturers.
Source: Department of Commerce.




155

PRICES
TABLE F-36.— Wholesale price indexes, 1929-57
[1947-49=100] i

All commodities other than farm products
and foods
All
commodities

Period

Farm
products

Processed
foods

Total

Textile Chemi- Rubber Lumber
cals
and
and
prodand
rubber wood
ucts
prodallied
prodand
ucts
ucts
apparel products

?3
()

83.5

31.9

51.2
53.7

73.0
62.0
53.8
56.8
65.8

29.4
23.8
20.3
24.2
28.5

56.0
56.4
59.0
55.9
55.8

66.4
71.7
84.4
82.7
86.3

27.4
28.7
33.7
30.8
31.6

56.6
61.6
69.3
69.5
70.2

80.2
86.5
100.6
103.3
102.0

35.2
41.8
45.4
48.0
51.9

100.1
104.4
95.5

70.6
76.3
101.4
103.8
94.8

98.9
99.4
99.0
102.1
98.9

52.5
60.3
93.7
107.2
99.2

105.0
115.9
113.2
114.0
114.5

99.2
110.6
99.8
97.3
95.2

96.3
110.0
104.5
105.7
107.0

120.5
148.0
134.0
125.0
126.9

113.9
123.9
120.3
120.2
118.0

101.7
101.7
105.6

117.0
122.2
125.6

95.3
95.3
95.4

106.6
107.2
109.5

143.8
145.8
145.2

123.6
125.4
119.0

84.1
86.0
86.6
88 0
90.9
91.2

98.3
99.0
99.2
100.4
102.4
102.3

120.4
120.6
121.0
121.6
121.7
121.5

95.7
96.0
95.9
95.1
94.9
94.9

106.3
106.4
106.5
106.9
106.9
107.1

148.4
147.1
146.2
145.0
143.5
142.8

126.3
126.7
128.0
128.5
128.0
127.3

114.0
114.7
115.5
115.6
115.9
116.3

90.0
89.1
90.1
88.4
87.9
88.9

102.2
102.6
104.0
103.6
103.6
103.1

121.4
122.5
123.1
123.6
124.2
124.7

94.9
94.8
94.8
95.3
95.4
95.6

107.3
107.3
107.1
107.7
108.2
108.3

143.3
146.9
145.7
145.8
146.9
147.9

126.6
125.2
123.6
122.0
121.5
121.0

116.9
117.0
116.9
117 2
117.1
117.4

89.3
88.8
88.8
90 6
89 5
90.9

104.3
103.9
103.7
104.3
104.9
106.1

125.2
125.5
125.4
125.4
125.2
125.2

95.8
95.7
95.4
95.3
95.4
95.5

108.7
108.8
108.8
109.1
109.1
109.3

145.0
143.9
144.3
144.5
144.7
145.1

121.3
120.7
120.1
120.2
119.7
119.7

118.2
118.4
118.0
117 8
118.1
118.4

92.8
93.0
91.0
91 5
91.9
92.6

107.2
106.8
106.5
105.5
106.5
107.4

125.7
126.0
126.0
125.8
125.9
126.0

95.4
95.4
95.4
95.1
95.0
94.9

109.5
109.8
110.2
110.4
110.3
110.5

144.9
146.9
146.5
146.2
144.7
145.7

119.3
118.6
117.8
117.3
116.9
116.4

1929

61.9

58.6

58.5

65.5

1930
1931
1932
1933
1934

.

56.1
47.4
42.1
42.8
48.7

49.3
36.2
26.9
28 7
36.5

53.3
44.8
36.5
36.3
42.6

60.9
53.6
50.2
50.9
56.0

.

.

52.0
52.5
56.1
51.1
50.1

44 0
45.2
48.3
38 3
36.5

52.1
50.1
52.4
45.6
43.3

55.7
56.9
61.0
58.4
58.1

_

51.1
56.8
64.2
67.0
67.6

37.8
46.0
59 2
68.5
68.9

43.6
50.5
59.1
61.6
60.4

59.4
63.7
68.3
69.3
70.4

68.8
78.7
96.4
104.4
99.2

71.6
83.2
100.0
107.3
92 8

60.8
77.6
98.2
106.1
95.7

71.3
78.3
95.3
103.4
101.3

103.1
114.8
111.6
110.1
110.3

97.5
113.4
107.0
97 0
95.6

99.8
111.4
108.8
104.6
105.3

110.7
114.3
117.6

89.6
88.4
90.9

111.9
112.4
112.8
113 6
114.4
114.2

1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949

.

.

.

__

- .

.

1950
1951
1952
1953
1954

-

1955
1956
1957*
1956: J a n u a r y

February
March
April
May
June
July

August
September
October
November
December

_.

__ -

1957: January

February. .
March. _
_

April
May
June

July
August
September
October
November 4
December

_

See footnotes at end of table.




i56

w
3
(3)
()
(3)

(3)

(3)

TABLE F-36.—Wholesale price indexes,

1929-57—Continued

[1947-49=100]i

All commodities other than farm products and foods (continued)

Period

Hides, Fuel,
skins, power
leather, a n d
and
lighting
leather
prodmateucts
rials

Pulp,
paper,
and
allied
products

Furniture
Metals Machin- and
and
ery and other
metal motive houseprodprodhold
ucts
ucts
durables

Non- Tobacco
metal- manufactures Miscellic
laneous
and
minerbottled products
als
(struc- bevertural)

1929

59.3

70.2

67.0

69.3

72.6

86.6

1930
1931
1932
1933
1934

54.4
46.8
39.7
44.0
47.1

66.5
57.2
59.5
56.1
62.0

60.3
54.1
49.9
50.9
56.2

68.2
62.8
55.4
55.5
60.2

72.4
67.6
63.4
66.9
71.6

87.1
84.6
81.4
72.8
76.0

1935
1936
1937
1938
1939

48.7
51.9
56.9
50.5
52.0

62.2
64.5
65.7
64.7
61.8

56.2
57.3
65.6
63.1
62.6

()
65.3

59.8
60.6
67.2
65.6
65.4

71.6
71.7
73.4
71.1
69.5

75.9
75.8
76.5
76.4
76.4

1940
1941.
1942
1943
1944

54.8
58.9
64.0
63.9
63.4

60.7
64.5
66.4
68.4
70.3

62.8
64.0
64.9
64.8
64.8

66.2
68.6
71.2
71.0
71.0

71.2
76.8
76.4
78.4

69.7
71.3
74.1
74.5
75.9

77.3
78.1
79.1
83.0
83.4

1945
1946
1947
1948
1949

64.2
74.6
101.0
102.1
96.9

71.1
76.2
90.9
107.1
101.9

()
98.6
102.9
98.5

65.9
73.9
91.3
103.9
104.8

71.6
80.3
92.5
100.9
106.6

78.6
83.0
95.6
101.4
103.1

79.1
84.2
93.9
101.7
104.4

85.8
89.7
97.2
100.5
102.3

()
100.8
103.1
96.1

1950
1951
1952
1953
1954

104.6
120.3
97.2
98.5
94.2

103.0
106.7
106.6
109.5
108.1

100.9
119.6
116.5
116.1
116.3

110.3
122.8
123.0
126.9
128.0

108.6
119.0
121.5
123.0
124.6

105.3
114.1
112.0
114.2
115.4

106.9
113.6
113.6
118.2
120.9

103.5
109.4
111.8
115.7
120.6

96.6
104.9
108.3
97.8
102.5

93.8
99.3
99.5

107.9
111.2
117.2

119.3
127.2
129.5

136.6
148.4
151.2

128.4
137.8
146.1

115.9
119.1
122.2

124.2
129.6
134.6

121.6
122.3
126.1

92.0
91.0

1956: January
February..
March
April
May
June

96.7
97.1
97.7
100.6
100.0
100.2

111.0
111.2
110.9
110.6
110.8
110.5

124.8
125.4
126.8
127.4
127.3
127.4

145.1
145.1
146. 5
147.7
146. 8
145.8

133.3
133.9
134.7
135. 7
136.5
136.8

118.0
118.2
118.1
118.0
118.0
118.1

127.0
127.1
127.9
128.6
128.6
128.9

121.7
121.7
121.7
121.7
121.6
121.6

89.6
88.7
88.2
92.1
96.1
92.9

July
August
September
October
NovemberDecember.

100.1
100.0
100.2
99.7
99.8
99.2

110.7
110.9
111. 1
111.7
111.2
114.0

127.7
127.9
127.9
128.1
127.8
128.0

144.9
150.2
151.9
152.2
152.1
152. 3

136.9
137.7
139.7
141.1
143.4
143.6

118.3
119.1
119.7
121.0
121.1
121.2

130.6
130.8
131.1
131.5
131.2
131.3

121.7
122.5
122.8
123.1
123. 5
123.6

91.3
91.1
89.9
89.2
91.2
91.7

1957: January
February.
March
April
May
June

98.4
98.0
98.4
98.8
99.0
99.9

116.3
119.6
119.2
119.5
118.5
117.2

128.6
128.5
128.7
128.6
128.9
128.9

152.2
151.4
151.0
150.1
150.0
150.6

143.9
144.5
144.8
145.0
145.1
145.2

121.9
121.9
121.9
121.5
121.6
121.7

132.0
132.7
133.2
134.6
135.0
135.1

124.0
124.1
124.1
124.5
124.5
124.7

93.2
92.4
92.0
91.4
89.4
87.3

July
August
September
October
November
December

100.7
100.5
100.3
100.4
100.3

116.4
116.3
116.1
115.8
115.7
115.7

129.5
129.9
130.1
130.9
130.9
131.0

152.4
153.2
152.2
150.8
150.4
150.3

145.8
146.2
146.9
147.7
149.2
149.3

122.4
122.4
122.3
122.6
122.7
123.3

135. 2
135.3
135.2
135.3
135.4
135.7

127.7
127.7
127.7
127.7
127.8
128.0

88.8
90.1
89.4
87.7
86.8
87.2

1955
1956.
1957*

1
This does not replace the former index (1926=100) as the official index prior to January 1952. These
data from January 1947 through December 1951 represent the revised sample and the 1947-49 weighting
pattern. Prior to January 1947 they are based on the month-to-month movement of the former index.
2
The data from January 1947 through January 1953 differ from the official series due to a change in the
method of eliminating excise taxes and discounts.
3
Not available.
* Preliminary.
Source: Department of Labor.




'57

T A B L E F—37.—Wholesale price indexes, by economic sector, 1947—57
[1947-49=100]
Intermediate materials, supplies, and components *
Crude materials

Period

All
commodities

Materials and components for
manufacturing

Food- Nonstuffs food
maTotal and terials, Fuel
faoA
ieeu- except
stuffs fuel

Total

Materials
for
Total food
manufacturing

Materials
for
nondurable
manufacturing

Materials
for
durable
manufacturing

Components
for
manufacturing

Materials
and
components
for
construction

1947
1948
1949

96.4
104.4
99.2

98.6
108.0
93.4

100.7
108.8
90.5

96.0
106.8
97.2

89.4
105.6
105.0

96.2
104.0
99.9

96.4
104.0

102.8
106.0
91.2

99.2
105.0
95.8

91.2
103.0
105.8

94.4
101.9
103.8

93.3
103.2
103.5

1950
1951
1952
1953
1954

103.1
114.8
111.6
110.1
110.3

101.8
116.9
107.4
99.2
98.3

97.0
112.3
105.7
94.6
94.7

111.0
128.1
110.9
106.2
104.2

104.6
106.5
107.2
111.0
106.0

104.3
116.9
113.5
114.1
114.8

104.5
118.4
113.4
115.2
115.4

94.9
105.7
101.5
101.8
100.9

100.5
116.5
104.8
104.0
102.3

111.9
124.3
124.6
130.1
133.1

107.6
122.2
122.5
124.7
125.3

108.9
119.1
118.3
120.2
120.9

1955.—
1956
1957*

110.7
114.3
117.6

94.5
95.0
97.2

85.7
84.0
87.7

110.1
114.2
112.5

105.8
113.3
119.5

117.0
122.1
125.1

118.2
123.7
126.9

97.7
98.0
99.9

102.7
104.3
105.7

139.7
148.5
153.2

130.9
142.9
148.3

125.6
132.0
132.9

1956:
January—
February..
March
April
May
June

111.9
112.4
112.8
113.6
114.4
114.2

91.5
93.3
93.4
95.4
96.6
95.7

77.8
80.7
80.8
83.4
86.4
86.2

115.8
115.2
115.5
116.6
114.3
111.9

112.4
112.7
113.1
112.6
111.9
110.6

120.0
120.3
121.0
121.7
122.2
121.7

121.3
121.9
122.6
123.1
123.4
123.1

95.3
96.7
98.1
98.1
100.5
9a 7

104.1
104.3
104.3
104.3
104.2
104.0

145.0
145.7
146.8
147.4
147.3
147.1

137.9
138.4
139.3
141.1
142.3
142.3

129.9
130.3
131.3
132.3
131.8
131.5

July
August
September.
October
NovemberDecember. .

114.0
114.7
115.5
115.6
115.9
116.3

95.0
96.4
96.7
95.0
94.9
96.6

85.4
86.8
87.2
84.4
83.4
85.0

111.5
113.1
113.1
112.6
114.3
115.9

110.4
110.9
111.5
116.0
116.5
120.4

121.3
122.6
123.0
123.6
123.8
124.2

122.6
124.2
124.8
125.6
125.7
125.9

97.3
96.7
97.0
98.3
99.8
100.1

104.1
104.0
104.0
104.7
104.8
105.0

146.1
150.6
151.7
151.9
151.1
151.1

142.0
143.3
145.2
146.7
147.9
147.9

131.4
132.8
133.2
133.4
133.1
133.0

1957:
January - . .
February. .
March
April
May
June

116.9
117.0
116.9
117.2
117.1
117.4

97.4
96.7
96.7
97.1
96.5
98.8

86.3
85.9
86.5
88.0
86.9
89.1

115.8
114.2
113.4
111.6
112.0
115.0

120.8
121.7
119.9
120.0
119.3
118.1

124.8
125.1
124.9
125.0
124.7
124.5

126.4
126.5
126.3
126.3
126.2
126.2

101.1
100.4
99.6
99.0
98.5
99.2

105.4
105.5
105.2
105.4
105.6
105.9

152.1
152.6
152.5
152.5
152.0
151.6

147.5
147.4
147.6
147.9
148.0
147.7

132.8
132.8
132.7
132.8
132.6
132.6

July
August
September.
October—.
November.
December *

118.2
118.4
118.0
117.8
118.1
118,4

99.7
99.6
97.0
95.3
95.3
96.3

90.4
90.3
87.3
86.1
86.8
88.5

115.2
115.0
112.6
109.9
108.1
107.7

118.0
118.0
118.6
119.0
120.5
120.7

125.2
125.5
125.4
125.2
125.3
125.4

127.1
127.4
127.4
127.3
127.5
127.6

100.1
99.5
99.6
99.6
100.8
101.6

105.8
105.9
106.0
106.0
105.8
105.8

153.8
154.7
154.3
154.2
154.2
154.2

148.3
148.8
149.4
148.9
149.2
149.2

133.3
133.4
133.1
133.0
133.0
132.9

See footnotes at end of table.




158

TABLE F-37.— Wholesale price indexes, by economic sector, 1947-57— Continued
[1947-49=100]
Special groups of industrial
products

Finished goods
Consumer finished goods

Period
Total
Total

Other
DunonFoods durable rable
goods
goods

Producer
finished
goods

InterConmediate
sumer
Crude materials, finished
mate- supplies, goods exrials 2 and com- cluding
ponents 3
foods

1947
1948
1949

95.9
103.5
100.6

96.8
104.1
99.2

97.0
105.8
97.2

97.4
103.5
99.2

94.8
101.3
104.0

92.8
101.1
106.1

92.9
108.5

95.3
103.7
101.0

96.6
102.8
100.6

1950
1951
1952
1953
1954

102.4
112.1
111.5
110.4
110.7

100.9
110.3
109.0
107.1
107.1

99.2
111.3
110.4
104.6
103.8

100.8
108.5
105.9
106.9
107.2

105.0
112.1
113.0
113.8
114.7

108.7
119.3
121.3
123.1
124.7

109.9
120.8
109.3
108.5
103.3

105.7
118.5
114.7
116.2
116.7

102.1
109.6
108.0
108.9
109.4

1955
1956
19574

110.9
114.0
118.1

106.4
108.0
111.1

101.1
101.0
104.5

107.8
109.9
112.4

115.9
119.7
123.3

128.5
138.1
146.6

113.4
120.0
118.3

120.1
126.0
129.3

110.2
112.8
115.7

1956: January
February...
March
April
May
June

111.8
112.0
112.3
112.7
113.6
114.0

106.4
106.5
106.8
107.0
108.0
108.2

98.0
98.0
98.4
99.1
101.5
102.2

109.5
109.7
109.6
109.6
109.6
109.7

118.3
118.5
119.0
119.1
119.1
119.1

133.3
134.1
134.7
135.8
136.6
137.1

122.9
120.4
120.9
121.6
118.0
114.6

124.2
124.9
125.4
125.5
125.3

112.1
112.3
112.4
112.4
112.4
112.5

July
August
September.
October
November.
December .

114.0
114.1
115.3
115.6
116.2
116.2

108.3
108.1
109.1
109.1
109.4
109.3

102.1
101.4
103.7
103.0
102.7
101.8

109.7
109.8
110.0
110.3
110.3
111.0

119.2
119.5
119.8
120.7
122.3
122.4

137.2
138.4
140.6
141.9
143.8
144.0

115.2
120.0
120.5
119.9
122.0
124.2

125.1
126.6
127.2
127.8
127.7
128.2

112.5
112.7
112.9
113.4
114.0
114.4

1957: January
February. .
March
April
May
June

116.7
117.0
116.9
117.4
117.4
117.6

109.9
110.2
109.9
110.5
110.5
110.7

102.3
101.8
101.3
102.7
103.1
104.2

111.8
112.9
112.7
112.8
112.5
112.0

122.9
123.0
122.9
122.7
122.7
122.7

144.3
144.7
145.1
145.3
145.5
145.5

123.5
121.2
119.7
117.1
117.6
121.4

128.7
129.0
129.0
129.1
129.0
128.9

115.2
115.9
115.8
115.8
115.5
115.3

July
August
SeptemberOctober
NovemberDecember 4

118.5
118.6
118.8
119.0
119.6
119.8

111.6
111.6
111.6
111.8
112.2
112.5

106.2
106.2
106.0
106.2
106.8
107.2

112.2
112.2
112.4
112.4
112.3
112.4

122.9
123.1
123.0
123.5
124.7
124.8

146.4
147.2
147.8
148.4
149.8
149.9

121.3
121.2
118.3
114.4
112.1
112.1

129.5
129.8
129.8
129.8
129.8
129.8

115.4
115.5
115.6
115.7
116.1
116.2

1
Includes, in addition to subgroups shown, processed fuels and lubricants, containers, and supplies.
2 Excludes crude foodstuffs and feedstuffs, plant and animal fibers, oilseeds, and leaf tobacco.
3
Excludes intermediate materials for food manufacturing and manufactured animal feeds.
* Preliminary.
NOTE.—For a listing of the commodities included in each sector and their relative importance, see Monthly
Labor Review, December 1955.
Source: Department of Labor.




159

TABLE F-38.—Consumer price indexes, 7929-57

For city wage-earner and clerical-worker families
[1947-49=100]

Period

All
items

Housing
Food

Total Rent

Read- Other
Ap- Trans- Medi- Per- ing and goods
cal
parel porta- care sonal recrea- and
tion
care
tion services

1929

73.3

65.6

0)

117.4

60.3

0)

0)

0)

0)

1930
1931
1932
1933
1934

71.4
65.0
58.4
55.3
57.2

62.4
51.4
42.8
41.6
46.4

(0
0)
0)
0)
(')

114.2
108.2
97.1
83.6
78.4

58.9
53.6
47.5
45.9
50.2

0)
(0
0)
0)
0)

0)
(0
0)
0)
(0

(0
0)
0)
(0
0)

0)
0)
(0
0)
0)

0)
0)
0)
0)
0)

1935
1936
1937
1938
1939

58.7
59.3
61.4
60.3
59.4

49.7
50.1
48. 4
47.1

71.8
72.8
75.4
76.6
76.1

78.2
80.1
83.8
86.5

50.6
51.0
53.7
53.4
52.5

69.6
70.2
71.3
71.9
70.2

71.4
71.6
72.3
72.5
72.6

54.6
55.3
58.5
59.8
59.6

58.1
5P. 1
60.8
62.9
63.0

67.2
67.0
68.8
69.4
70.6

1940
1941
1942
1943
1944

59.9
62.9
69.7
74.0
75.2

47.8
52.2
61.3
68.3
67.4

76.4
78.3
81.8
82.8
84.7

8S.4
90.4
90.3
90.6

53.2
55.6
64.9
67.8
72.6

69.8
72.2
78.5
78.2
78.2

72.7
73.1
75.1
78.7
81.2

59.5
61.0
66.9
73.8
79.0

64.1
66.4
69.5
75.3
83.4

72.8
74.2
76.3
80.2
82.4

1945
1946
1947
1948
1949

76.9
83.4
95.5
102.8
101.8

79.0
95.9
104.1
100.0

86.1
88.3
95.0
.101. 7
103.3

90.9
91.4
94.4
100.7
105.0

76.3
83.7
97.1
103.5
99.4

78.1
82.1
90.6
100.9
108.5

83.1
87.7
94.9
100.9
104.1

81.5
87.4
97.6
101.3
101.1

86.8
89.7
95.5
100.4
104.1

85.7
88.6
96.1
100.5
103.4

1950
1951
1952
1953
1954

102.8
111.0
113.5
114.4
114.8

101.2
112.6
114.6
112.8
112.6

106.1
112.4
114.6
117.7
119.1

108.8
113.1
117.9
124.1
128.5

98.1
106.9
105.8
104.8
104.3

111.3
118.4
126.2
129.7
128.0

106.0
111.1
117.2
121.3
125.2

101.1
110.5
111.8
112.8
113.4

103.4
106.5
107.0
108.0
107.0

105.2
109.7
115.4
118.2
120.1

1955
1956
19572
1956: January
February
March
April
May
June

114.5
116.2
120.0

110.9
111.7
115.4

120.0
121.7
125.5

130.3
132.7
135.1

103.7
105.5
106.8

126.4
128.7
135.7

128.0
132.6
137.8

115.3
120.0
124.2

106.6
108.1
112.0

120.2
122.0
125.3

114.6
114.6
114.7
114.9
115.4
116.2

109.2
108.8
109.0
109.6
111.0
113.2

120.6
120.7
120.7
120.8
120.9
121.4

131.4
131.5
131.6
131.7
132.2
132.5

104. 1 126.8
104.6 126.9
104.8 126.7
104.8 126.4
104.8 127.1
104.8 126.8

130.7
130.9
131.4
131.6
131.9
132.0

118.5
118.9
119.2
119.5
119.6
119.9

107.3
107. 5
107.7
108.2
108.2
107.6

120.8
120.9
121.2
121.4
121.5
121.8

117.0
116.8
117.1
117.7
117.8
118.0

114.8
113.1
113.1
113.1
112.9
112. P

121.8
122.2
122.5
122.8
123.0
123.5

133.2
133.2
133.4
133.4
133.8
134. 2

105.3
105.5
106.5
106.8
107.0
107.0

127.7
128.5
128.6
132.6
133.2
133.1

132.7
133.3
134. 0
134.1
134.5
134.7

120.1
120.3
120.5
120.8
121.4
121.8

107.7
107.9
108.4
108.5
109.0
109.3

122.2
122.1
122.7
123.0
123. 2
123.3

118.2 112.8
118.7 113.6
118.9 113.2
119. 3 113.8
119.6 114.6
120.2 116.2

123.8
124.5
124.9
125.2
125.3
125.5

134.2
134.2
134.4
134.5
134.7
135.0

106.4
106.1
106.8
106.5
106.5
106.6

133.6
134.4
135.1
135.5
135.3
135.3

135.3
135.5
136.4
136.9
137.3
137.9

122.1
122.6
122.9
123.3
123.4
124.2

109.9
110.0
110.5
111.8
111.4
111.8

123.8
124.0
124.2
124.2
124.3
124.6

117.4
117.9
117.0
116.4
116.0

125.5
125.7
126.3
126.6
126.8

135.2
135.4
135.7
136.0
136.3

106.5
106.6
107.3
107.7
107.9

135.8
135.9
135.9
135.8
140.0

138.4
138.6
139.0
139.7
140.3

124.7
124.9
125.1
126.2
126.7

112.4
112.6
113.3
113.4
114.4

126.6
126.7
126.7
126.8
126.8

July
August
September
October
November
December
1957: January
February
March
April
May
June
July
August
September
October
November

120.8
121.0
121.1
121.1
121.6

1

Not available.
2 January-November average.
Source: Department of Labor.




160

TABLE F—39.—Consumer price indexes, by selected major groups, 1935-57
[1947-49=100]
Services

Commodities

Period

All
items

All
items
less
food

All
items
less
All
shel- comter
modities

Commodities less food
Food
All

NonDura- durables
bles

All
services

Rent

All
services
less
rent

1935..
1936..
1937..
1938-.
1939..

58.7
59.3
61.4
60.3
59.4

65.8
66.5
68.9
69.6
69.1

55.5
56.2
58.0
56.4
55.4

52.0
52.7
54.7
52.7
51.6

49.7
50.1
52.1
48.4
47.1

57.3
57.9
60.4
60.4
59.4

53.3
54.1
57.5
58.5
57.3

57.1
57.6
59.9
59.6
58.7

75.6
76.4
78.7
80.3
80.4

78.2
80.1
83.8
86.5

72.6
72.2
72.9
73.5
73.5

19401941.
1942.
1943_
1944.

59.9
62.9
69.7
74.0
75.2

69.4
71.4
76.4
78.5
81.5

55.8
59.1
66.6
71.6
72.9

52.1
55.7
63.8
69.4
70.2

47.8
52.2
61.3
68.3
67.4

59.8
62.7
69.8
72.7
76.7

56.8
60.7
68.9
71.2
77.8

59.3
61.8
68.4
71.3
74.9

80.6
81.6
84.2
85.8
87.9

86.9
88.4
90.4
90.3
90.6

73.6
74.5
77.8
81.3
85.2

1945.
1946.
1947.
19481949.

76.9
83.4
95.5
102.8
101.8

83.4
87.0
95.1
101.9
103.0

74.8
82.3
95.6
103.1
101.3

72.3
80.1
96.3
103.2
100.6

68.9
79.0
95.9
104.1
100.0

79.7
84.7
95.7
102.9
101.5

83.7
87.5
94.9
101.8
103.3

77.6
83.3
95.7
103.1
101.1

89.0
90.8
94.5
100.4
105.1

90.9
91.4
94.4
100.7
105.0

87.0
90.2
94.7
100.1
105.2

19501951.
1952.
1953.
1954.

102.8
111.0
113. 5
114.4
114.8

104.2
110.8
113.5
115.7
116.4

102.0
110.5
112.7
113.1
113.0

101.2
110.3
111.7
111.3
110.2

101.2
112.6
114.6
112.8
112.6

101.3
108.9
109.8
110.0
108.6

104.4
112.4
113.8
112. 6
108.3

100.9
108.5
109.1
110.1
110.6

108.5
114.1
119.3
124.2
127. 5

113.1
117.9
124.1
128.5

108.1
114.6
120.1
124.6
127.7

1955.
1956.
1957 1

114.5
116.2
120.0

116.7
118.8
122.6

112.4
114.0
117.7

109.0
110.1
113.5

110.9
111.7
115.4

107.5
108.9
112.2

105.1
105.1
108.7

110.6
113.0
116.0

129.8
132.6
137.5

130.3
132.7
135.1

130.1
133.0
138.4

1956: January. _
February.
March
April
May
June

114.6
114.6
114.7
114.9
115.4
116.2

117.4
117.6
117.7
117.8
117.9
118.1

112.2
112.2
112. 5
112.7
113.3
114.1

108.3
108.3
108.5
108.7
109.3
110.3

109.2
108.8
109.0
109.6
111.0
113.2

107.7
108.0
108.1
108.0
108.1
108.0

104.2
104.3
104.3
104.0
104.2
103.8

111.5
111.9
112.1
112.2
112.1
112.3

131.2
131.3
131.2
131.5
131.8
132.3

131.4
131.5
131.6
131.7
132.2
132.5

131.6
131.7
131.6
131.9
132.2
132.7

July
August
September
October
November
December

117.0
116.8
117.1
117.7
117.8
118.0

118.6
119.0
119.4
120.2
120.5
120.8

114.9
114.5
114.8
115.5
115.6
115.7

111.2
110.6
111.0
111.7
111.8
111.8

114.8
113.1
113.1
113.1
112.9
112.9

108.4
108.7
109.4
110.6
111.0
111.1

104.1
104.5
104.8
107.4
107.9
108.0

112.8
113.0
113.9
114.3
114.6
114.7

132.9
133.3
133.6
133.7
133.9
134.4

133.2
133.2
133.4
133.4
133.8
134.2

133.2
133.8
134.1
134.2
134.4
134.9

1957: January._
February .
March
April
May
June

118.2
118.7
118.9
119.3
119.6
120.2

121.0
121.5
122.0
122.3
122.3
122.5

115.9
116.4
116.5
116.9
117.1
117.8

111.9
112.3
112.4
112.8
113.0
113.7

112.8
113.6
113.2
113.8
114.6
116.2

111.2
111.4
111.9
112.1
111.8
111.9

108.2
108.3
108.6
108.8
108.3
108.4

114.7
115.0
115.6
115.8
115.6
115.8

135.0
135.7
136.3
136.7
137.2
137.5

134.2
134.2
134.4
134.5
134.7
135.0

135.6
136.5
137.1
137.6
138.1
138.4

July
August
September
October
November

120.8
121.0
121.1
121.1
121.6

122.8
123.0
123.4
123.7
124.6

118.5
118.7
118.7
118.6
119.2

114.4
114.6
114.5
114.3
114.7

117.4
117.9
117.0
116.4
116.0

112.2
112.1
112.6
112.8
113.8

108.2
108.4
108.6
108.6
110.9

116.3
116.0
116.7
117.0
117.4

137.9
138.3
138.8
139.2
139.8

135.2
135.4
135.7
136.0
136.3

138.9
139.3
139.8
140.3
140.9

1

January-November average.
Source: Department of Labor.




161

MONEY SUPPLY, CREDIT, AND FINANCE
TABLE F-40.—Deposits and currency, 1929-57
[Billions of dollars]
Total excluding U. S. Government deposits J

End of period >

Total
deposits
and
currency

Demand deposits and
currency
Total
Total

1929
1930
1931
1932
1933-.
1934
1935
1936
1937
1938
1939
1940-.1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957«
1956: January
February. ..
March
April
May
June
July
August
September. .
October
November..
December. .
1957: January
February. ..
March
April
May
June
July*
August«
September«
Octobers...
November 8.
December «.

54.7
53.6
48.4
45.4
42.6
48.1
52.7
57.6
56.8
59.9
64.7
71.1
79.1
100.5
123.4
151.4
176.4
167.5
172.3
172.7
173.9
180.6
189.9
200.4
205.7
214.8
221.0
226.4
231.7
217.2
216.1
217.8
217.4
217.4
219.7
217.5
219.1
220.1
220.9
222.9
226.4
222.4
221.1
221.5
224.3
224.2
224.9
225.2
225.0
225.4
226.9
227.0
231.7

54.6
53.2
47.9
44.9
41.5
46.3
51.3
56.4
55.8
58.1
63.3
70.0
76.3
91.3
112.4
130.2
150.8
164.0
170.0
169.1
169.8
176.9
186.0
194.8
200.9
209.7
216.6
222.0
227.3
214.4
211.6
210.8
212.4
211.2
213.6
213.3
212.8
214.1
216.6
217.2
222.0
219.9
218.0
217.2
219.6
218.4
219.7
221.0
220.0
220.9
223.0
223.3
227.3

26.4
24.6
21.9
20.4
19.8
23.1
27.0
31.0
29.6
31.8
36.2
42.3
48.6
62.9
79.6
90.4
102.3
110.0
113.6
111.6
111.2
117.7
124.5
129.0
130.5
134.4
138.2
139.7
138.2
136.0
132.8
131. 5
133.1
131.6
133.0
132. 7
131.9
132.8
135.1
136.3
139.7
136.9
134.4
132.6
134.7
132.7
133.3
134.3
132.9
133.3
134.9
135.7
138.2

CurDemand rency
deposits
adjusted 3 outside
banks
22.8
21.0
17.4
15.7
15.0
18.5
22.1
25.5
24.0
26.0
29.8
34.9
39.0
48.9
60.8
66.9
75.9
83.3
87.1
85.5
85.8
92.3
98.2
101.5
102.5
106.6
109.9
111.4
109.7
108.9
105. 6
104.4
106.1
104.2
104.7
105.2
104.5
105.4
107.4
108.3
111.4
109.5
107.0
105.2
107.3
104.8
105.6
106.6
105.1
105. 6
107.2
107.2
109.7

3.6
3.6
4.5
4.7
4.8
4.7
4.9
5.5
5.6
5.8
6.4
7.3
9.6

13.9
18.8
23.5
26.5
26.7
26.5
26.1
25.4
25.4
26.3
27.5
28.1
27.9
28.3
28.3
28.5
27.1
27.2
27.2
27.0
27.4
28.3
27.4
27.5
27.4
27.7
28.0
28.3
27.4
27.4
27.4
27.4
27.9
27.8
27.8
27.8
27.8
27.8
28.5
28.5

u. s.
GovernTime
ment
deposits < deposits *

28.2
28.7
26.0
24.5
21.7
23.2
24.2
25.4
26. 2
26.3
27.1
27.7
27.7
28.4
32.7
39.8
48.5
54.0
56.4
57.5
58.6
59.2
61.5
65.8
70.4
75.3
78.4
82.2
89.1
78.4
78.8
79.3
79.3
79.6
80.6
80.7
80.9
81.3
81.5
80.9
82.2
82,9
83.6
84.6
84.9
85.7
86.4
86.7
87.1
87.7
88.1
87.6
89.1

0.2
.3
.5
.5
1.0
1.8
.5
.2
.0
1.5
1.1
2.8
9.2
11.0
21.2
25.6
3.5
2.3
3.6
4.1
3.7
3.9
5.6
4.8
5.1
4.4
4.5
I. 4
2.8
4.5
7.0
5.0
6.2
6.1
4.2
6.3
6.0
4.3
5.7
4.5
2.5
3.1
4.3
4.7
5.8
5.2
4.2
4.9
4.5
3.9
3.8
4.4

1 End-of-year, June and December 1956, and December 1957 figures are for call dates. Other data (including those for June 1957) are for the last Wednesday of the month.
2
Includes holdings of State and local governments.
3 Includes demand deposits, other than interbank and U. S. Government, less cash items in process of
collection.
* Includes deposits in commercial banks, mutual savings banks, and Postal Savings System, but excludes interbank deposits.
6
Includes U. S. Government deposits at Federal Reserve Banks and commercial and savings banks and,
beginning with 1938, includes U. S. Treasurer's time deposits, open account.
« Preliminary; December estimates by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Board of Governors of the Federal Reserve System (except as noted).




l62

TABLE F—41.—Loans and investments of all commercial banks, 1929—57
[Billions of dollars]

End of period 1

1929—Junes
_.
1930—Junes
1931—June*
1932-June*
1933—June*
_.
1934—June*
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957 7
1956: January
February...
March
April
May
June
July
August
September..
October
November..
December...
1957: January
February..
March
April
May
June
July? 7
August
September I
October 7_...
7
November 7
December .

Total
loans
and
investments
49.4
48.9
44.9
36.1
30.4
32.7
36.1
39.6
38.4
38.7
40.7
43.9
50.7
67.4
85.1
105.5
124.0
114.0
116.3
114.3
120.2
126.7
132.6
141.6
145.7
155.9
160.9
165.1
169.5
159.4
158.4
159.9
160.1
159.7
160. 0
159.6
161.0
162.0
162.5
164.0
165.1
162.8
162. 5
162.9
165.1
165.1
165.6
165.4
165.9
166.3
167.9
167.3
169.5

Loans
Total 3

35.7
34.5
29.2
21.8
16.3
15.7
15.2
16.4
17.2
16.4
17.2
18.8
21.7
19.2
19.1
21.6
26.1
31.1
38.1
42.5
43.0
52.2
57.7
64.2
67.6
70.6
82.6
90.3
93.9
82.0
82.5
84.7
85.3
86.0
86.9
87.1
87.5
88.5
88.8
89.5
90.3
88.9
89.3
90.6
91.0
91.2
93.3
92.3
92.8
93.4
93.0
93.0
93.9

Investments

Business
loans 3

5.7
6.4
7.3
9.3
7.9
7.9
8.0
9.6
14.2
18.2
18.9
17.1
21.9
25.9
27.9
27.2
26.9
33.2
38.7
40.3
32.7
32.9
34.5
34.8
34.8
36.1
35.8
36.4
37.0
37.2
37.8
38.7
37.6
37.8
39.0
39.0
38. 9
40.5
40.3
39.4
40.3

Total

13.7
14.4
15.7
14.3
14.0
17.0
20.9
23.1
21.2
22.3
23.4
25.1
29.0
48.2
66.0
83.9
97.9
82.9
78.2
71.8
77.2
74.4
74.9
77.5
78.1
85.3
78.3
74.8
75.6
77.4
75.8
75.2
74.8
73.7
73.1
72.4
73.6
73.6
73.8
74.5
74.8
73.9
73.2
72.2
74.1
73.9
72.3
73.0
73.1
72.9
74.9
74.3
75.6

U. S. GovOther
ernment
obligations < securities
4.9
5.0
6.0
6.2
7.5
10.3
13.8
15.3
14.2
15.1
16.3
17.8
21.8
41.4
59.8
77.6
90.6
74.8
69.2
62.6
67.0
62.0
61.5
63.3
63.4
69.0
61.6
58.6
58.0
60.9
59.2
58.6
58.2
57.3
56.6
56.2
57.2
57.0
57.5
58.2
58.6
57.7
56.8
55.7
57.5
57.1
55.5
56.3
56.2
55.9
57.3
56.8
58.0

8.7
9.4
9.7
8.1
6.5
6.7
7.1
7.9
7.0
7.2
7.1
7.4
7.2
6.8
6.1
6.3
7.3
8.1
9.0
9.2
10.2
12.4
13.3
14.1
14.7
16.3
16.7
16.3
17.6
16.5
16.6
16.6
16.6
16.4
16.5
16.3
16.4
16.6
16.3
16.3
16.3
16.2
16.3
16.5
16.7
16.8
16.8
16.8
16.9
17.1
17.6
17.4
17.6

1 End-of-year, June and December 1956, and December 1957figuresare for call dates. Other data (includ ing those for June 1957) are for the last Wednesday of the month.
2 Data are shown net, i. e., after deduction of valuation reserves. Includes commercial and industrial,
agricultural, security, real estate, bank, consumer, and other loans.
3 Beginning with 1948, data are shown gross of valuation reserves, instead of net as for previous years.
Prior to June 1947 and for months other than June and December, data are estimated on the basis of reported
data for all insured commercial banks and for weekly reporting member banks.
< Figures in this table are based on book values and relate only to banks within the continental United
States. Therefore, they do not agree with ngures in Table F-49, which are on the basis of par values and
include holdings of banks in United States Territories and possessions.
5
June data are used because complete end-of-year data are not available prior to 1935 for U. S. Government obligations and other securities.
6
Not available.
7
Preliminary; December estimates by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Board of Governors of the Federal Reserve System (except as noted).




163

TABLE F-42.—Federal Reserve Bank credit and member bank reserves, 1929-57
[Averages of daily figures, millions of dollars]

Reserve Bank credit outstanding
Period
Total

U. S.
Government securities

Member
bank
borrowings

Member bank reserves

All
other,
mainly
float

Total

Required

Excess

Member
bank
free
reserves
(excess reserves less
borrowings)

1929

1,459

208

943

308

2,358

2,315

43

-900

1930
1931
1932
1933
1934

1,087
1,274
2,077
2,429
2,502

564
669
1,461
2,052
2,432

271
323
518
234
29

252
282
98
143
41

2,379
2,323
2,114
2,343
3,676

2,324
2,234
1,858
i 1,815
i 2,112

55
89
256
i 528
i 1, 564

-216
-234
-262
294
1,535

1935
1936
1937
1938
1939

2,475
2,481
2,554
2,600
2,628

2,431
2,431
2,504
2,565
2,584

7
6
14
9
4

37
44
36
26
40

5,001
5,989
6,830
7,935
10, 352

2,532
3,477
5,610
5,413
5,960

2,469
2,512
1,220
2,522
4,392

2,462
2,506
1,206
2,513
4,388

1940
1941
1942
1943
1944

2,487
2,293
3,408
8,182
15, 358

2,417
2,187
3,191
7,724
14, 772

3
5
5
24
135

67
101
212
434
451

13, 249
13, 404
12, 648
12,626
13, 222

6,923
8,080
9,980
11.116
12,176

6,326
5,324
2,668
1,510
1,046

6,323
5,319
2,663
1,486
911

1945
1946
1947
1948
1949

22, 211
24, 029
22, 989
22, 283
20,161

21,363
23, 250
22, 330
21, 511
19, 560

366
215
156
140
115

482
564
503
632
486

15,055
15, 969
16, 461
18,001
17, 774

13,934
14,993
15,608
17,164
16,952

1,121
976
853
837
822

755
761
697
697
707

1950
1951
1952
1953
1954.

19, 062
24,070
24, 801
26, 262
25,602

18, 410
22, 756
23,066
24, 661
24, 646

106
289
780
768
147

546
1,025
955
833
809

16,400
19,293
20,356
19,996
19, 276

15, 617
18, 536
19,642
19, 319
18,501

783
757
714
677
775

677
468
-66
-91
628

1955
1956
19572

25, 472
25, 702
25,373

23, 891
23, 709
23,345

607
831
837

974
1,162
1,191

18. 843
18,965
19,021

18, 257
18, 403
18,504

586
562
517

-21
-269
-320

1956: January
February..
March
April
May
June

25, 879
25,183
25, 517
25, 411
25,237
25, 516

23, 897
23, 401
23, 522
23, 410
23,322
23,522

807
799
993
1,060
971
769

1,175
983
1,002
941
944
1,225

19,138
18, 709
18, 924
18.847
18, 735
18, 933

18,586
18,177
18, 340
18,320
18,268
18, 359

552
533
585
527
467
575

-255
-266
-408
-533
-504
-194

July
August
SeptemberOctober
NovemberDecember..

25, 599
25, 357
25, 737
25,698
26, 097
27,156

23, 580
23.530
23, 728
23, 781
24, 024
24, 765

738
898
792
715
744
688

1,281
929
1,217
1,202
1,329
1,703

18, 836
18, 783
19, 024
18, 939
19,169
19, 535

18,237
18, 224
18, 446
18, 419
18, 579
18, 883

599
559
579
520
590
651

-139
-339
-213
-195
-154
-37

1957: J a n u a r y . . .
February. _
March
April
_
May
June

25,905
24,912
24, 968
25,411
25,041
25,189

24,092
23, 111
23,061
23,239
23,041
22, 989

407
640
834
1,011
909
1,005

1,406
1,161
1,073
1,161
1,091
1,195

19,295
18,816
18,884
19,087
18,827
18, 982

18,773
18,302
18, 366
18,580
18,362
18,485

523
514
518
506
465
496

116
-126
-316
-505
-444
-509

July
August
September .
October
NovemberDecember 2

25,466
25,166
25,489
25,326
25, 373
26,186

23,351
23,146
23,325
23,348
23,417
23, 982

917
1,005
988
811
804
710

1,198
1,015
1,176
1,167
1,152
1,494

19,129
18,834
18,956
19,040
18,958
19,420

18, 595
18,300
18,434
18, 573
18,447
18,810

534
534
522
467
512
610

-383
-471
-466
-344
-292
-100

1
3

Data from March 1933 through April 1934 are for licensed banks only.
Preliminary.

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




164

TABLE F-43.—Bond yields and interest rates, 1929-57
[Percent per annum]
U. S. Government
securities
Period

Corporate
bonds
(Moody's)

3-month 9-12
Treas- month Taxable
3
ury
2 bonds
bills i issues

1929

High-

Common
stock
yields,
200
stocks
Baa (Moody's)

grade
municipal
bonds
(Standard &
Poor's)

Average
rate on Prime Fedshorteral
comterm
Remerbank
serve
cial
loans
Bank
to busi- paper, disnesscount
selected months rate
cities

4.73

5.90

3.41

4.27

5.85

5.16

1.402
.879
.515
.256

4.55
4.58
5.01
4.49
4.00

5.90
7.62
9.30
7.76
6.32

4.54
6.17
7.36
4.42
4.11

4.07
4.01
4.65
4.71
4.03

3.59
2.64
2.73
1.73
1.02

3.04
2.11
2.82
2.56
1.54

1935
1936
1937
1938
1939

.137
.143
.447
.053
.023

3.60
3.24
3.26
3.19
3.01

5.75
4.77
5.03
5.80
4.96

4.06
3.50
4.77
4.38
4.15

3.40
3.07
3.10
2.91
2.76

()
2.1

.75
.75
.94
.81

1.50
1.50
1.33
1.00
1.00

1940
1941
1942
1943
1944

.014
.103
.326
.373
.375

1.00
1.00
7 1.00
7 1.00

1945
1946
1947
1948
1949

1930
1931
1932
1933
1934

()

()

.75
.79

2.46
2.47
2.48

2.84
2.77
2.83
2.73
2.72

4.75
4.33
4.28
3.91
3.61

5.31
6.25
6.67
4.89
4.81

2.50
2.10
2.36
2.06
1.86

2.1
2.0
2.2
2.6
2.4

.56
.53
.66
.69
.73

.375
.375
.594
1.040
1.102

.81
.82
.88
1.14
1.14

2.37
2.19
2.25
2.44
2.31

2.62
2.53
2.61
2.82
2.66

3.29
3.05
3.24
3.47
3.42

4.19
3.97
5.13
5.78
6.63

1.67
1.64
2.01
2.40
2.21

2.2
2.1
2.1
2.5
2.7

.75
.81
1.03
1.44
1.49

1950
1951
1952
1953
1954

1.218
1.552
1.766
1.931
.953

1.26
1.73
1.81
2.07
.92

2.32
2.57
2.68
2.94
2.55

2.62
2.86
2.96
3.20
2.90

3.24
3.41
3.52
3.74
3.51

6.27
6.12
5.50
5.49
4.78

1.98
2.00
2.19
2.72
2.37

2.7
3.1
3.5
3.7
3.6

1.45
2.16
2.33
2.52
1.58

7 1.00
7 1.00
1.00
1.34
1.50
1.59
1.75
1.75
1.99
1.60

1955
1956
1957

1.753
2.658
3.267

1.89
2.83
3.53

2.84
3.08
3.47

3.06
3.36
3.89

3.53
3.88
4.71

4.06
4.07
4.33

2.53
2.93
3.60

3.7
4.2
4.6

2.18
3.31
3.81

1.89
2.77
3.12

1955: January
February
March
April
May
June

1.257
1.177
1. 335
1.620
1.491
1.432

1.36
1.41
1.49
1.71
1.72
1.71

2.68
2.78
2.78
2.82
2.81
2.82

2.93
2.99
3.02
3.01
3.04
3.05

3.45
3.47
3.48
3.49
3.50
3.51

4.22
4.21
4.21
4.12
4.14
3.87

2.39
2.42
2.45
2.43
2.41
2.48

3.56

1.47
1.68
1.69
1.90
2.00
2.00

1.50
1.50
1.50
1.63
1.75
1.75

1.622
1.876
2.086
2.259
2.225
2.564

1.88
2.12
2.14
2.19
2.28
2.56

2.91
2.95
2.92
2.87
2.89
2.91

3.06
3.11
3.13
3.10
3.10
3.15

3.52
3.56
3.59
3.59
3.58
3.62

3.78
3.91
3.93
4.12
4.09
4.07

2.62
2.67
2.63
2.56
2.55
2.71

2.11
2.33
2.54
2.70
2.81
2.99

1.75
1.97
2.18
2.25
2.36
2.50

July
August
September
October
November
December

See footnotes at end of table.




165

3.77
3.93

7 1.00

TABLE F-43.—Bond yields and interest rates, 1929-57—Continued
[Percent per annum]
U. S. Government
securities
Period

3-month 9-12
Treas- month Taxable
ury
bonds 3 Aaa
bills i

Highgrade
municipal
bonds
(Standard &
Poor's)

Average
rate on Prime Federal
shortcomReterm
merserve
bank
cial
loans paper, Bank
disto busi4-6
count
nessselected months rate
cities

._.

2.50
2.38
2.43
2.83
2.83
2.69

2.88
2.85
2.93
3.07
2.97
2.93

3.11
3.08
3.10
3.24
3.28
3.26

3.60
3.58
3.60
3.68
3.73
3.76

4.21
4.09
3.86
3.87
4.13
4.01

2.64
2.58
2.69
2.88
2.86
2.75

3.93

2.334
2.606
2.850
2.961
3.000
3.230

July.-August
September
October
November
December

July.August..
September
October
November
December

Common
stock
yields,
200
stocks
Baa (Moody's)

2.456
2.372
2.310
2.613
2.650
2.527

1956: January.
February
March
April
May
June

1957: January
February
March
April
May
June

Corporate
bonds
(Moody's)

2.62
3.01
3.17
3.07
3.15
3.33

3.00
3.17
3.21
3.20
3.30
3.40

3.28
3.43
3.56
3.59
3.69
3.75

3.80
3.93
4.07
4.17
4.24
4.37

3.87
4.02
4.24
4.23
4.25
4.13

2.78
2.94
3.07
3.14
3.38
3.44

4.35

3.210
3.165
3.140
3.113
3.042
3.316

3.17
3.23
3.35
3.41
3.37
3.55

3.34
3.22
3.26
3.32
3.40
3.58

3.77
3.67
3.66
3.67
3.74
3.91

4.49
4.47
4.43
4.44
4.52
4.63

4.31
4.44
4.35
4.16
4.05
4.05

3.40
3.26
3.32
3.33
3.52
3.75

4.38

3.165
3.404
3.578
3.591
3.337
3.102

3.71
3.93
4.02
3.94
3.52
3.09

3.60
3.63
3.66
3.73
3.57
3.30

3.99
4.10
4.12
4.10
4.08
3.81

4.73
4.82
4.93
4.99
5.09
5.03

4.01
4.21
4.50
4.68
4.58
4.77

3.75
3.91
3.90
3.79
3.76
3.47

4.83

1

4.14

4.38

4.40

4.85

3.00
3.00
3.00
3.14
3.27
3.38

2.50
2.50
2.50
2.65
2.75
2.75

3.27
3.28
3.50
3.63
3.63
3.63

2.75
2.81
3.00
3.00
3.00
3.00

3.63
3.63
3.63
3.63
3.63
3.79

3.00
3.00
3.00
3.00
3.00
3.00

3.88
3.98
4.00
4.10
4.07
3.81

3.00
3.15
3.50
3.50
3.23
3.00

Rate on new issues within period. Issues were tax exempt prior to March 1, 1941, and fully taxable
thereafter. For the period 1934-37, series includes issues with maturities of more than 3 months.
2
Includes certificates of indebtedness and selected note and bond issues (fully taxable).
3
First issued in 1941. Series includes: October 1941-March 1952, bonds due or callable after 15 years;
April 1952-March 1953, bonds due or callable after 12 years; April 1953 to date, bonds due or callable 10
years and after.
* Treasury bills were first issued in December 1929 and were issued irregularly in 1930.
* Not available before August 1942.
« Not available on same basis as for 1939 and subsequent years.
7
From October 30, 1942 to April 24, 1946, a preferential rate of 0.50 percent was in effect for advances
secured by Government securities maturing or callable in 1 year or less.
NOTE.—Yields and rates computed for New York City, except for short-term bank loans.
Sources: Treasury Department, Board of Governors of the Federal Reserve System, Moody's Investors
Service, and Standard & Poor's Corporation.




166

T A B L E F—44.—Short- and intermediate-term

consumer credit outstanding^

1929-57

[Millions of dollars]

Instalment credit

End of period

Total
Total

Automobile
paper i

Other Repair
conand
sumer moderngoods ization
paper l loans 2

Noninstalment credit

Personal
loans

Total

Charge
acOthers
counts

1929

6,444

3,151

(4)

(4)

(4)

(4)

3,293

1,602

1,691

1930
1931
1932
1933
1934

5,767
4,760
3,567
3,482
3,904

2,687
2,207
1,521
1,588
1,871

4

()
(4)
(4)
(4)
(4)

4

()
(4)
(4)
(4)
(4)

4

(4)
(4)
(4)
(4)
(4)

3,080
2,553
2,046
1,894
2,033

1,476
1,265
1,020
990
1,102

1,604
1,288
1,026
904
931

1935
1936
1937
1938
1939

4,911
6,135
6,689
6,338
7,222

2,694
3,623
4,015
3,691
4,503

(4)
(4)
(4)
(4)
1,497

(4)
(4)
(4)
(4)
1,620

(4)
(4)
(4)
(4)
298

(4)
(4)
(4)
(4)
1,088

2,217
2,512
2,674
2,647
2,719

1,183
1,300
1,336
1,362
1,414

1,034
1,212
1,338
1,285
1,305

1940
1941
1942
1943
1944

8,338
9,172
5,983
4,901
5,111

5,514
6,085
3,166
2,136
2,176

2,071
2,458
742
355
397

1,827
1,929
1,195
819
791

371
376
255
130
119

1,245
1,322
974
832
869

2,824
3,087
2,817
2,765
2,935

1,471
1,645
1,444
1,440
1,517

1,353
1,442
1,373
1,325
1,418

1945
1946
1947
1948
1949

5,665
8,384
11,570
14,398
17,305

2,462
4,172
6,695
8,996
11,590

455
981
1,924
3,018
4,555

816
1,290
2,143
2,901
3,706

182
405
718
853
898

1,009
1,496
1,910
2,224
2,431

3,203
4,212
4,875
5,402
5,715

1,612
2,076
2,353
2,673
2,795

1,591
2,136
2,522
2,729
2,920

1950
1951
1952
1953
1954

21,395
22,617
27,401
31,243
32,292

14, 703
15,294
19,403
23,005
23,568

6,074
5,972
7,733
9,835
9,809

4,799
4,880
6,174
6,779
6,751

1,016
1,085
1,385
1,610
1,616

2,814
3,357
4,111
4,781
5,392

6,692
7,323
7,998
8,238
8,724

3,291
3,605
4,011
4,124
4,308

3,401
3,718
3,987
4,114
4,416

1955
1956
1957 5

38,670
42,097
44, 800

28,958
31,827
34,100

13, 472
14, 459
15,500

7,634
8,510
8,700

1,689
1,895
2,000

6,163
6,963
7,900

9,712
10. 270
10, 700

4,579
4,735
4,800

5,133
5,535
5,900

1956: J a n u a r y . , . .
February__
March
April
May
June

37,883
37.468
37, 756
38, 219
38, 920
39,453

28,849
28,896
29,101
29, 424
29,779
30,114

13,488
13, 582
13, 750
13, 898
14,065
14, 261

7,517
7,429
7,376
7,434
7,518
7,554

1,662
1,656
1,662
1,680
,718
1,748

6,182
6,229
6,313
6,412
6,478
6,551

9,034
8,572
8,655
8,795
9,141
9,339

4,002
3,564
3,508
3,574
3,746
3,844

5,032
5,008
5,147
5,221
5,395
5,495

July
August
September.
October
November.
December..

39, 513
39, 928
40,199
40, 332
40, 831
42, 097

30, 366
30, 743
30, 841
30, 985
31, 240
31, 827

14, 389
14, 539
14, 547
14, 498
14, 469
14,459

7,590
7,697
7,733
7,872
8,066
8.510

L,768
1,799
1,832
1,865
L,890
1,895

6,619
6,708
6.729
6,750
6.815
6,963

9,147
9,185
9,358
9,347
9,591
10, 270

3,713
3,730
3,822
3,920
4,072
4,735

5,434
5,455
5,536
5,427
5,519
5,535

1957: January
February..
March
April
May
June

41,138
40, 738
40. 735
41, 247
41, 937
42,491

31,568
31,488
31, 524
31, 786
32,158
32,608

14, 410
14, 432
14, 528
14,691
14,883
15,127

8,305
8,160
8,043
8,017
8,081
8,165

1,872
1,859
1,856
1,862
L,886
1,905

6,981
7,037
7,097
7,216
7,308
7,411

9,570
9,250
9,211
9,461
9,779
9,883

4,111
3,690
3,534
3,735
3,834
3,948

5,459
5,560
5,677
5,726
5,945
5,935

July
August
September.
October
November.
December».

42. 592
43,133
43, 270
43. 274
43, 530
44,800

32,968
33,303
33,415
33,504
33, 596
34,100

15,329
15,490
15.556
15, 579
15,542
15,500

8,189
8,229
8,228
8,236
8,300
8,700

L, 921
L, 954
1,969
1,988
1,996
2,000

7,529
7,630
7,662
7,701
7,758
7,900

9,624
9,830
9,855
9,770
9,934
10,700

3,810
3,957
3,942
3,991
4,135
4,800

5,814
5,873
5,913
5,779
5,799
5,900

.

()
(4)
(4)
(4)
(4)

1
Includes all consumer credit extended for the purpose of purchasing automobiles and other consumer
goods and secured by the items purchased.
2
Includes only such loans held by financial institutions; those held by retail outlets are included in "other
consumer goods paper."
3
Single-payment loans and service credit.
* Not available.
5
Preliminary estimates by Council of Economic Advisers.

Source: Board of Governors of the Federal Reserve System (except as noted).




167




TABLE F-45.—Instalment credit extended and repaid, 1946-57
[Millions of dollars]
Total

Repair and
Other consumer modernization
goods paper
loans

Automobile
paper

Personal
loans

Period
Extended

Repaid

Extended

Repaid

Extended

Repaid

1,969
3,692
5,217
6,967

1,443
2,749
4,123
5,430

3,077
4,498
5,383
5,865

2,603
3,645
4,625
5,060

423
704
714
734

200
391
579

3,026
3,819
4,271
4,542

2,539
3,405
3,957
4,335

7,150
7,485
9,186
9,227
9,117

6,057
7,404
7,892
8,622
9,145

835
841
1,217
1,344
1,261

717
772
917
1,119
1,255

5,043
6,294
7,347
8,006
8,866

4,660
5,751
6,593
7,336
8,255

10,634 9,751
11,590 10, 714
11,600 11,400
Unadjusted

1,388
1,568
1,500

1,315
1,362
1,400

10,272
11,342
12,600

9,501
10, 542
11,600

Extended

Repaid

Extended

Repaid

1946
1947
1948
1949

8,495
6,785
12,713 10,190
15, 585 13,284
18,108 15, 514

1950
1951
1952
1953
1954

21, 558
23,576
29,514
31, 558
31,051

18, 445 8,530 7,011
22, 985 8,956 9,058
25, 405 11,764 10,003
27, 956 12, 981 10,879
30,488 11,807 11,833

1955
1956
1957

39,039
40,063
42,300

33,649
37,194
40,100

2,895
2,937
3,320
3,349
3,489
3,412

3,004
2,890
3,115
3,026
3,134
3,077

1,194
1,237
1,377
1,345
1,409
1,391

1,178
1,143
1,209
1,197
1,242
1,195

776
763
851
926
981
91S

893
851
904
868
897
882

93
103
119
130
151
139

120
109
113
112
113
109

832
834
973
948
948
964

813
787
889
849
882
891

3,354
3,551
3,032
3,451
3,449
3,824

3,102
3,174
2,934
3,307
3,194
3,237

1,340
1,394
1,156
1,293
1,227
1,200

1,212
1,244
1,148
1,342
1,256
1,210

923
1,009
897
1,077
1,110
1,359

887
902
861
938
916
915

139
148
138
155
138
115

119
117
105
122
113
110

952
1,000
841
926
974
1,150

884
911
820
905
909
1,002

3,090
2,976
3,347
3,594
3,748
3,674

3,349
3,056
3,311
3,332
3,376
3,224

1,258
1,215
1,380
1,468
1,513
1,494

1,307
1,193
1,284
1,305
1,321
1,250

802
763
846
901
1,016
998

1,007
908
963
927
952
914

96
101
111
123
147
133

119
114
114
117
123
114

934
897
1,010
1,102
1,072
1,049

916
841
950
983

3,837
3,704
3,388
3,545
3,439
4,000

3,477
3,369
3,276
3,456
3,347
3,500

1,563
1,467
1,364
1,404
1,250
1,300

1,361
1,306
1,298
1,381
1,287
1,300

143
150
138
141
123
100

127
117
123
122
115
100

1,136
1,065
959
1,024
1,046
1,300

1,018
964
927
985
989
1,100

3,337
3,286
3,370
3,298
3,168

2,979
2,965
2,956
3,103
3,089
3,071

1,348
1,380
1,326
1,308
1,273
1,217

1,188
1,186
1,157
1,236
1,234
1,188

938
925
901
996
960
888

853
840
845
883
868
886

121
129
128
134
139
130

118
112
109
116
113
112

891
903
931
932
926
933

820
827
845
868
874
885

3,284
3,395
3,285
3,379
3,512
3,451

3,139
3,111
3,178
3,171
3,191
3,241

1,232
1,264
1,230
1,298
1,353
1,334

1,221
1,200
1,217
1,260
1,238
1,251

972
1,008
956
996
1,047
1,003

913
891
938
909
935
953

130
133
131
137
133
123

120
115
110
117
109
111

950
990
968
948
979
991

885
905
913
885
909
926

3,475
3,506
3,423
3,469
3,533
3,546

3,295
3,257
3,256
3,284
3,314
3,339

1,422
1,408
1,375
1,372
1,364
1,359

1,314
1,284
1,272
1,295
1,306
1,289

931
960
928
935
993
1,004

943
933
936
908
920
952

124
129
123
123
135
128

117
121
113
117
122
120

998
1,009
997
1,039
1,041
1,055

921
919
935
964
966
978

3,598
3,590
3,544
3,541
3,558
3,600

3,383
3,342
3.420
3,358
3,395
3,400

1,385
1,357
1,395
1,439
1,407
1.400

1,318
1,276
1,319
1,317
1,292
1,300

995
1,025
970
909
961
1,000

964
977
990
946
982
1,000

130
137
127
126
120
100

125
117
124
118
113
100

1,088
1,071
1,052
1,067
1,070
1,100

976
972
987
977
1,008
1,000

1956: January
February
March
April
May
June
July
August
September
October
November
December
1957: January
February
March
April
May
June
July
August
September
October
November
December * >
__

1956: January
February
March
April
May
June
July
August
September
October
November
December

..

1957: January
February
March
April
May
June
July
August
September
October
November
December L _

16, 745 13, 082
15,563 14, 576
16,700 15,600

971
995
1,022
982
927
928
976
968
1,020
956
1,300
1,000
Seasonally adjusted

1

Preliminary; December by Council of Economic Advisers.
Source: Board of Governors of the Federal Reserve System (except as noted).

168

TABLE F-46.—Mortgage debt outstanding, by type of property and of financing, 1939-57
[Billions of dollars]

Nonfarm properties
1- to 4-family houses
All
properties

E n d of period

Government underwritten

Total
Total

Total

FHA
VA
inguarsured anteed

Multifamily Farm
and
propcomerties
Con- mercial
ven- 1 prop- 2
tional erties !

1939

35.5

28.9

16.3

1.8

1.8

14.5

12.5

6.6

1940
1941
1942
1943
1944

36.5
37.6
36.7
35.3
34.7

30.0
31.2
30.8
29.9
29.7

17.4
18.4
18.2
17.8
17.9

2.3
3.0
3.7
4.1
4.2

2.3
3.0
3.7
4.1
4.2

15.1
15.4
14.5
13.7
13.7

12.6
12.9
12.5
12.1
11.8

6.5
6.4
6.0
5.4
4.9

35.5
41.8
48.9
56.2
62.7

30.8
36.9
43.9
50.9
57.1

18.6
23.0
28.2
33.3
37.6

4.3
6.1
9.3
12.5
15.0

4.1
3.7
3.8
5.3
6.9

0.2
2.4
5.5
7.2
8.1

14.3
16.9
18.9
20.8
22.6

12.2
13.8
15.7
17.6
19.5

4.8
4.9
5.1
5.3
5.6

1950
1951 ,
1952
1953
1954

72.8
82.3
91.4
101 3
113.8

66.7
75.6
84.2
93.6
105.5

45.2
51.7
58.5
66.1
75.7

18.9
22.9
25.4
28.1
32.1

8.6
9.7
10.8
12.0
12.8

10.3
13.2
14.6
16.1
19.3

26.3
28.8
33.1
38.0
43.6

21.6
23.9
25.7
27.5
29.8

6.1
6.7
7.3
7.8
8.3

1955
1956
1957 3

130.0
144.7
156.1

120.9
134.8
145.5

88.2
99.0
107.6

38.9
43.9
47.0

14.3
15.5
16.3

24.6
28.4
30.7

49.3
55.1
60.6

32.7
35.8
37.9

9.1
9.9
10.6

1955: First quarter
Second quarter
Third quarter
Fourth quarter.-- - -

117.5
122.1
126.4
130.0

109.0
113.3
117.4
120.9

78.6
82.2
85.6
88.2

33.5
35.3
37.0
38.9

13.2
13.5
13.9
14.3

20.3
21.8
23.1
24.6

45.1
46.9
48.6
49.3

30.4
31.1
31.8
32.7

8.5
8.8
9.0
9.1

1956: First quarter
_ _.. .
Second quarter. - Third quarter
Fourth quarter.- . . . .

133.6
137.6
141.4
144.7

124.2
128.0
131.6
134.8

90.8
93.7
96.6
99.0

40.2
41.3
42.5
43.9

14.7
15.0
15.2
15.5

25.5
26.3
27.3
28.4

50.6
52.4
54.1
55.1

33.4
34.3
35.1
35.8

9.4
9.6
9.8
9.9

1957: First quarter 3
Second quarter
Third q u a r t e r s
Fourth quarter

147.4
150.3
153.5
156.1

137.3
140.1
143.1
145.5

101.0
103.3
105.6
107.6

45.1
45.9
46.5
47.0

15.7
15.9
16.1
16.3

29.4
30.0
30.4
30.7

55.9
57.4
59.1
60.6

36.3
36.8
37.5
37.9

10.1
10.3
10.4
10.6

1945 . .
1946
1947
1948
1949

.

3
3

1
2

Derived figures.
Includes negligible amount of farm loans held by savings and loan associations.
3 Preliminary; fourth quarter by Council of Economic Advisers.
Source: Board of Governors of the Federal Reserve System, estimated and compiled from data supplied
b y various Government and private organizations (except as noted).




169

TABLE F-47.—Net public and private debt, 1929-57 l
[Billions of dollars]

Private
Corporate
End of
period 2

Fed- State
and
eral local
Total Govgovernernment ment2 Total

Individual and noncorporate
Nonfarm

LongTotal term Short- Total Farm 3

Total Mortgage

Commercial
Conand sumer
financial*

1929-.

190.9

16.5

13.2 161.2

47.3

41.6

72.3

12.2

60.1

31.2

22.4

6.4

1930_.
1931-1932._
1933.1934..

191.0
181.9
174.6
i.5
171.4

16.5
18.5
21.3
24.3
30.4

14.1
15.5
16.6
16.7
15.9

160.4
147.9
136.7
127.5
125.1

89.3
83.5
80.0
76.9
75.5

51.1
50.3
49.2
47.9
44.6

38.2
33.2
30.8
29.1
30.9

71.1
64.4
56.7
50.6
49.6

11.8
11.1
10.1
9.1
8.9

59.4
53.3
46.6
41.5
40.7

32.0
30.9
29.0
26.3
25.5

21.6
17.6
14.0
11.7
11.2

5.8
4.8
3.6
3.5
3.9

1935-.
1936-.
19371938-.
1939..

174.7
180.3
182.0
179.6
183.2

34.4
37.7
39.2
40.5
42.6

16.0
16.2
16.1
16.0
16.3

124.2
126.4
126.7
123.1
124.3

74.8
76.1
75.8
73.3
73.5

43.6
42.5
43.5
44.8
44.4

31.2
33.5
32.3
28.4
29.2

49.4
50.3
50.9
49.8
50.8

9.0
8.6
8.6
9.0

40.4
41.7
42.3
40.9
42.0

24.7
24.4
24.3
24.5
25.0

10.8
11.2
11.3
10.1

4.9
6.1
6.7
6.3
7.2

1940..
1941-.
1942..
1943-.
1944--

211. 6
259.0
313.6
370.8

44.8
56.3
101.7
154.4
211.9

16.5
16.3
15.8
14.9
14.1

128.6
139.0
141.5
144.3
144.8

75.6
83.4
91.6
95.5
94.1

43.7
43.6
42.7
41.0

31.9
39.8
49.0
54.5
54.3

53.0
55.6
49.9
48.8
50.7

9.1
9.2
8.9
8.2
7.7

43.9
46.4
41.0
40.5
43.0

26.0
27.2
26.8
26.2
26.1

9.5
10.0
8.1
9.5
11.8

8.3
9.2
6.0
4.9
5.1

1945..
1946-.
1947..
1948-.
1949-.

406.3
397.4
417.4
433.6
448.4

252.7
229.7
223.3
216.5
218.6

13.7
13.6
14.4
16.2
18.1

139.9 85.3
154.1 93.5
179.7 108.9
200.9 117.8
211.7 118.0

38.3
41.3
46.1
52.5
56.5

47.0
52.2
62.8
65.3
61.5

54.6
60.6
70.8
83.1
93.7

7.2
7.6
8.6
10.8
11.9

47.4
53.0
62.2
72.3
81.8

27.0
32.5
38.7
45.1
50.6

14.8
12.1
11.9
12.9
13.9

5.7
8.4
11.6
14.4
17.3

1950..
1951..
1952..
1953..
1954..

490.3
524.0
555.2
586.3
606.2

218.7
218.5
222.9
228.1
230.2

20.7
23.3
25.8
28.6
33.4

250.9
282.2
306.5
329.6
342.6

142.1
162.5
171.0
179.5
177.3

60.1
66.6
73.3
78.3
82.6

81.9
95.9
97.7
101.2
94.8

108.8
119.7
135.5
150.1
165.3

12.2
13.6
15.1
16.8
17.5

96.6
106.1
120.3
133.3
147.8

59.4
67.4
75.2
83.8
94.7

15.8
16.1
17.8
18.3
20.8

21.4
22.6
27.4
31.2
32.3

1955..
1956..
1957«.

655.8
684.0
707.5

231.5
225.4
224.3

38.4
42.7
46.7

385.9 195.9
415.9 208.2
436.5 215.5

89.3
97.3
106.0

18.7 171.4
19.4 188.3
20.5 200.5

108.8
121.7
131.0

23.9
24.5
24.7

38.7
42.1
44.8

106.5 190.0
110.9 207.7
109.5 221.0

1 Net public and private debt outstanding is a comprehensive aggregate of the indebtedness of borrowers
after elimination of certain types of duplicating governmental and corporate debt. For a further explanation of the concept, see Survey of Current Business, October 1950.
2
Data for State and local government debt are for June 30 of each year.
3 Farm mortgages and farm production loans. Farmers' financial and consumer debt is included in the
nonfarm categories.
* Financial debt is debt owed to banks for purchasing or carrying securities, customers' debt to brokers,
and debt owed to life insurance companies by policyholders.
5
Preliminary estimates by Council of Economic Advisers.
NOTE.—Data for 1955-56 for consumer debt (and related subtotals and totals) have been adjusted by
the Council of Economic Advisers to reflect revisions for 1955-57 in the consumer credit statistics of the
Board of Governors of the Federal Reserve System. No attempt has been made to reconcile other debt
items with the adjustments in consumer debt.
Detail will not necessarily add to totals because of rounding.
Sources: Department of Agriculture, Department of Commerce, Treasury Department, Board of Governors of the Federal Reserve System, Federal Savings and Loan Insurance Corporation, and Interstate
Commerce Commission (except as noted).




170

GOVERNMENT FINANCE
TABLE F—48.—U. S. Government debt, by kind of obligation, 1929—57
[Billions of dollars]
Interest-bearing public debt

End of period

Gross
public
debt and
guaranteed
issues J

Marketable public
issues

Nonmarketable public issues

Shortterm
issues2

Treasury
bonds

United
States
savings
bonds

Treasury
tax and
savings
notes

Investment
bonds 3

Special
issues 4

1929

16.3

3.3

11.3

1930
1931
1932
1933
1934

16.0
17.8
20.8
24.0
31.5

2.9
2.8
5.9
7.5
11.1

11.3
13.5
13.4
14.7
15.4

1935
1936
1937
1938
1939

35.1
39.1
41.9
44.4
47.6

14.2
12.5
12.5
9.8
7.7

14.3
19.5
20.5
24.0
26.9

0.2
.5
1.0
1.4
2.2

1940
1941
1942
1943
1944

50.9
64.3
112.5
170.1
232.1

7.5
8.0
27.0
47.1

28.0
33.4
49.3
67.9
91.6

3.2
6.1
15.0
27.4
40.4

2.5
6.4
8.6

1945
1946
1947
1948
1949

278.7
259.5
257.0
252.9
257.2

78.2
57.1
47.7
45.9
50.2

120.4
119.3
117.9
111.4
104.8

48.2
49.8
52.1
55.1
56.7

8.2
5.7
5.4
4.6
7.6

1.0
1.0
1.0

20.0
24.6
29.0
31.7
33.9

1950
1951
1952
1953
1954

256.7
259.5
267.4
275.2
278.8

58.3
65.6
68.7
77.3
76.0

94.0
76.9
79.8
77.2
81.8

58.0
57.6
57.9
57.7
57.7

8.6
7.5
5.8
6.0
4.5

1.0
13.0
13.4
12.9
12.7

33.7
35.9
39.2
41.2
42.6

.

.4
.4
.4
.7
.6
2.2
3.2
4.2

5.4
7.0
9.0
12.7
16.3

43.9
1955
81.9
12.3
57.9
280.8
81.3
45.6
11.6
1956
80.8
56.3
276.7
79.5
45.8
10.3
52.5
1957
82.1
7 275.0
82.1
43.6
81.9
12.2
1956: January...
57.6
280.1
81.4
43.7
81.9
12.2
February.
57.7
280.2
81.4
43.7
81.9
12.2
March
57.7
276.4
77.6
43.4
12.1
April
81.8
57.7
275.8
77.7
44.3
12.0
May
81.8
57.7
276.8
77.7
45.1
12.0
81.8
June
57.5
272.8
73.1
45.4
July
57.4
12.0
73.1
81.8
272.7
46.1
August
81.8
11.9
57.3
275.6
75.5
45.8
September..
11.9
274.3
57.3
75.5
45.5
11.8
October
275.4
57.1
77.1
45.7
11.7
November..
277.1
80.8
56.9
78.9
45.6
11.6
December..
276.7
80.8
56.3
79.5
1957: January
45.3
80.8
11.6
276.3
56.0
79.6
45.5
February...
80.8
11.5
276.4
55.8
80.0
45.6
March
80.8
11.4
275.1
55.6
79.1
45.2
11.3
April
274.1
55.4
79.1
46.1
11.2
275.3
55.2
May
79.5
46.8
11.1
270.6
54.6
74.9
June
46.3
July
11.0
272.6
54.3
77.9
46.7
10.9
August
274.0
54.0
79.4
46.2
10.7
274.5
53.8
September..
81.0
80.8
46.1
10.5
274.2
53.5
October
80.8
81.4
46.0
10.3
274.9
53.2
81.9
November..
81.4
45.8
10.3
7 275.0
52.5
82.1
December..
82.1
1
Total includes non-interest-bearing debt, fully guaranteed securities (except those held by the Treasury), Postal Savings bonds, prewar bonds, adjusted service bonds, depositary bonds, and armed forces
leave bonds, not shown separately. Not all of total shown is subject to statutory debt limitation.
2
Includes bills, certificates of indebtedness, and notes.
3
Includes Series A bonds and, beginning in April 1951, Series B convertible bonds.
4
Issued to U. S. Government investment accounts. These accounts also held 9.4 billion dollars of public
marketable and nonmarketable issues on December 31, 1957.
5
Less than 50 million dollars.
6
The last series of treasury savings notes matured in April 1956.
7
Of this amount, $274.6 billion was subject to the statutory debt limitation of $275 billion.
Source: Treasury Department.




171

TABLE F-49.—Estimated ownership of Federal obligations, 1939-57
[Par values», billions of dollars]

Gross public debt and guaranteed issues 2

End of period

Held by others
Held
by U.S.
GovMutual
ernsavings
State
MiscelTotal ment
and
Federal Com banks Other
investlaneous
Total Reservee mercial and in- corpor- local Individ- invesment
Banks banks3 surance ations * governactors?
comments 5
counts
panies

1939-

47.6

6.5

41.1

2.5

15.9

9.4

2.2

0.4

10.1

1940.
1941194219431944-

50.9
64.3
112.5
170.1
232.1

7.6
9.5
12.2
16.9
21.7

43.3
54.7
100.2
153.2
210.5

2.2
2.3
6.2
11.5
18.8

17.3
21.4
41.1
59.9
77.7

10.1
11.9
15.8
21.2
28.0

2.0
4.0
10.1
16.4
21.4

.5
.7
1.0
2.1
4.3

10.6
13.6
23.7
37.6
53.3

.7
.9
2.3
4.4
7.0

19451946194719481949.

278.7
259.5
257.0
252.9
257.2

27.0
30.9
34.4
37.3
39.4

251.6
228.6
222.6
215.5
217.8

24.3
23.3
22.6
23.3
18.9

90.8
74.5
68.7
62.5
66.8

34.7
36.7
35.9
32.7
31.5

22.2
15.3
14.1
14.8
16.8

6.5
6.3
7.3
7.9
8.1

64.1
64.2
65.7
65.5
66.3

9.1
8.1
8.4
8.9
9.4

19501951_
195219531954-

256.7
259.5
267.4
275.2
278.8

39.2
42.3
45.9
48.3
49.6

217.5
217.2
221.6
226.9
229.2

20.8
23.8
24.7
25.9
24.9

61.8
61.6
63.4
63.7
69.2

29.6
26.3
25.5
25.0
23.8

19.7
20.7
19.9
21.6
19.2

9.6
11.1
12.7
14.4

66.3
64.6
65.1
64.8
63.6

10.5
10.6
11.7
13.2
13.9

195519561957 s

280.8
276.7
275.0

51.7
54.0
55.2

229.1
222.7
219.8

24.8
24.9
24.2

62.0
59.3
58.7

22.8
20.9
19.5

23.3
18.6
16.5

15.1
16.1
17.3

65.5
67.1
67.6

15.6
15.9
16.0

1956: January
February
March
April
May

June

280.1
280.2
276.4
275.8
276.8
272.8

51.7
51.8
51.9
51.6
52.5
53.5

228.4
228.4
224.5
224.3
224.3
219.3

23.5
23.5
23.6
23.3
23.5
23.8

60.5
59.5
58.3
58.5
57.8
57.1

22.7
22.4
22.2
22.1
21.9
21.6

23.6
23.7
20.8
20.5
20.9
17.4

15.4
15.6
15.7
15.7
15.8
15.7

66.7
67.2
67.4
67.7
67.7
67.5

16.0
16.4
16.5
16.5
16.6
16.2

July
August
September
October
November
December

272.7
275.6
274.3
275.4
277.1
276.7

53.8
54.4
54.2
53.9
54.2
54.0

218.9
221.2
220.2
221.5
222.9
222.7

23.4
23.9
23.7
23.8
24.4
24.9

56.5
57.6
57.6
58.0
58.6
59.3

21.6
21.4
21.4
21.3
21.1
20.9

17.7
18.6
17.5
18.5
19.2
18.6

15.8
15.9
16.0
16.0
16.1
16.1

67.6
67.5
67.7
67.5
67.5
67.1

16.2
16.3
16.3
16.3
16.0
15.9

276.3
276.4
275.1
274.1
275.3
270.6

53.9
54.1
54.2
53.7
54.9
55.6

222.4
222.3
221.0
220.4
220.5
215.1

23.4
22.9
23.1
23.2
23.1
23.0

58.3
57.7
58.1
58.0
57.7
55.8

20.9
20.8
20.6
20.5
20.4
20.2

20.2
20.9
18.0
17.9
18.5
15.7

16.2
16.3
16.6
16.8
16.8
16.9

67.1
67.5
68.2
68.0
67.6
67.4

16.2
16.2
16.3
16.0
16.4
16.1

272.6
274.0
274.5
274.2
274.9
275.0

55.2
55.8
55.4
55.4
55.3
55.2

217.4
218.2
219.1
218.7
219.6
219.8

23.4
23.5
23.3
23.3
23.7
24.2

56.8
56.6
58.3
58.1
58.2
58.7

20.2
20.1
20.1
20.0
19.7
19.5

16.3
16.8
16.1
16.1
16.6
16.5

16.9
17.1
17.2
17.2
17.3
17.3

67.5
68.0
68.2
67.9
67.9
67.6

16.3
16.0
16.0
16.1
16.2
16.0

1957: January
February
March
April
May
June
July
August
September
October
Novembers8__
December --_

1 United States savings bonds, series A-F and J, are included at current redemption value.
2
Excludes guaranteed securities held by the Treasury. Not all of total shown is subject to statutory
debt limitation.
3
Includes commercial banks, trust companies, and stock savings banks in the United States and in
Territories and possessions; figures exclude securities held in trust departments. Since the estimates in this
table are on the basis of par values and include holdings of banks in United States Territories and possessions,
they do not agree with the estimates in Table F-41, which are based on book values and relate only to banks
within the continental United States.
4
Exclusive of banks and insurance companies.
5
Includes trust, sinking, and investment funds of State and local governments and their agencies, and
of6Territories and possessions.
Includes partnerships and personal trust accounts.
7
Includes savings and loan associations, nonprofit institutions, corporate pension trust funds, dealers
and brokers, and investments of foreign balances and international accounts in this country. Beginning
with December 1946, the foreign accounts include investments by the International Bank for Reconstruction and Development and the International Monetary Fund in special non-interest-bearing notes issued
by the U. S. Government. Beginning with June 30, 1947, includes holdings of Federal land banks.
8
Preliminary estimates by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Treasury Department (except as noted).




172

TABLE F-50.—Federal budget receipts and expenditures and the public debt, 1929-1959
[Millions of dollars]
N e t budget Budget ex- Surplus or
receipts 1 penditures deficit ( - )

Year

Public debt
at end of
year 2

Fiscal year:
1929

3,861

3,127

734

16, 931

1930
1931
1932
1933
1934

4,058
3,116
1,924
2,021
3,064

3,320
3,577
4,659
4,623

738
-462
- 2 , 735
- 2 , 602
- 3 , 630

16,185
16, 801
19, 487
22, 539
27, 053

1935
1936
1937
1938
1939

3,730
4,069
4,979
5,615
4,996

6,521
8,493
7,756
6,792
8,858

- 2 , 791
- 4 , 425
- 2 , 777
-1,177
- 3 , 862

28, 701
33, 779
36, 425
37,165
40, 440

1940
1941
1942
1943
1944

5,144
7,103
12, 555
21,987
43,635

9,062
13,262
34, 046
79, 407
95, 059

- 3 , 918
-6,159
- 2 1 , 490
-57,420
-51,423

42, 968
48, 961
72, 422
136, 696
201, 003

1945
1946
1947
1948
1949

44, 475
39, 771
39, 786
41, 488
37, 696

98, 416
60, 448
39, 032
33,069
39, 507

-53,941
- 2 0 , 676
754
8,419
-1,811

258, 682
269, 422
258, 286
252,292
252, 770

1950
1951
1952.
1953
1954

36, 495
47, 568
61,391
64,825
64,655

39, 617
44,058
65, 408
74, 274
67, 772

-3,122
3,510
-4,017
- 9 , 449
-3,117

257,357
255,222
259,105
266, 071
271, 260

60,390
68,165
71,029
72, 400
74, 400

64, 570
66, 540
69,433
72, 788
73,934

-4,180
1,626
1,596
-388
466

274,374
272, 751
270, 527
271,200
271, 200

38, 568
40,389
40,864
37, 514

41,080
37,955
35,623
41,106

-2,512
2,434
5,241
- 3 , 592

259,149
256,900
252,800
257,130

1950
1951
1952
1953
1954

37,306
52, 979
64,840
63, 841
61,171

37, 728
56,337
70, 682
72, 997
64,854

-422
- 3 , 358
-5,842
-9,157
-3,683

256, 708
259,419
267, 391
275,168
278, 750

1955
1956
1957 5

63,358
70,994
72, 400

66,129
67, 216
71,800

- 2 , 771
3,779
600

280, 769
276, 628
274,898

1955
1956_
1957 3
1958*
1959*

-

Calendar year:
1946
1947
1948
1949

1
Gross receipts less refunds of receipts and transfers of tax receipts to the Federal old-age and survivors
insurance trust fund, the Federal disability insurance trust fund, the railroad retirement account, and the
highway trust fund.
2
Excludes guaranteed obligations. The change in the public debt from year to year reflects not only
the budget surplus or deficit but also changes in the Treasury's cash balances, the effect of certain trust fund
transactions, and direct borrowing from the public by certain Government enterprises.
3
Preliminary.
* Estimate.
5
Estimated by Council of Economic Advisers from data through January 15, 1958. May therefore differ
fromfiguresin Treasury Department monthly statement of receipts and expenditures to be released about
January 20, 1958.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department and Bureau of the Budget (except as noted).




173

T A B L E F—51.—Federal budget receipts by source and expenditures by function, fiscal years

1946-59

[Millions of dollars]
Budget receipts by source

Budget expenditures by function

Indi- Corpovidual ration Excise All
income income taxes other
taxes
taxes
receipts i

Veter- AgriMajor ans'
culAll
naserv- ture Inter- other
Total tional
ices
and
est expendsecurity and
agriitures 2
bene- cultufits ral resources

Budget
surplus
or deficit ( - )

Fiscal
year

Total

1946
1947
1948
1949-.-.

39,771
39,786
41,488
37,696

16,157
17,835
19,305
15,548

11,833
8,569
9,678
11,195

6,999
7,207
7,356
7,502

4,782
6,175
5,150
3,451

60,448
39,032
33,069
39,507

43,207
14,372
11,771
12,907

4,416
7,381
6,654
6,726

747
1,243
575
2,512

4,816
5,012
5,248
5,445

7,262 -20,676
11,022
754
8,820
8,419
11,917 -1,811

1950
1951
1952
1953
1954

36,495 15,745
47, 568 21,643
61,391 27,913
64,825 30,108
64,655 29,542

10,448
14,106
21, 225
21,238
21,101

7,549
8,648
8,851
9,868
9,945

2,752
3,171
3,401
3,610
4,068

39,617
44,058
65,408
74,274
67, 772

13,009
22,444
45,963
51,830
47,872

6,646
5,342
4,863
4,298
4,256

2,783
650
1,045
2,936
2,557

5,817
5,714
5,934
6,583
6,470

11,361
9,907
7,603
8,627
6,618

-3,122
3,510
-4,0L7
-9,449
-3,117

1955
1956
1957 3 . . .
1958<-.1959'-.-

60,390
68,165
71,029
72,400
74,400

17,861
20,880
21,167
20,385
20,400

9,131
9,929
9,055
8,898
9,280

4,650
5,169
5,188
5,917
6,220

64,570
66,540
69,433
72,788
73,934

42,089
41,825
44,414
44,871
45,836

4,457
4,756
4,793
5,034
5,012

4,411
4,913
4,582
4,924
4,601

6,438
6,846
7,308
7,867
7,869

7,176
8,199
8,336
10,091
10,616

-4,180
1,626
1,596
-388
466

28,747
32,188
35,620
37,200
38,500

1
2

Includes employment taxes, estate and gift taxes, customs revenues, and miscellaneous receipts.
Includes expenditures for international affairs and finance (excluding military assistance and defense
support under the mutual security program), labor and welfare, natural resources, commerce and housing,
and general government; also includes adjustment to daily Treasury statement (for actuals) and allowance
for proposed legislation and contingencies (for estimates).
3 Preliminary.
< Estimate.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department and Bureau of the Budget.




174

T A B L E F-52.—Government cash receipts from and payments to the public,

1946-59

[Billions of dollars]
Total

Federal

State and local*

Cash
receipts

Cash
payments

Excess
of receipts
or
of payments

Cash
receipts

Cash
payments

Calendar year:
1946
1947
1948
1949

53.0
57.5
60.0
57.9

50.9
50.8
52.1
60.0

2.1
6.6
7.9
-2.1

41.4
44.3
44.9
41.3

41.4
38.6
36.9
42.6

5.7
8.0
-1.3

11.6
13.2
15.1
16.6

9.5
12.2
15.2
17.4

2.0
1.0
-.1
-.8

1950
1951
1952
1953 1954

60.5
79.2
93.1
93.4
93.2

61.3
78.4
94.7
99.3
95.3

-.7
.8
-1.6
-5.9
-2.0

42.4
59.3
71.4
70.1
68.6

42.0
58.0
73.1
76.3
69.7

.4
1.2
-1.6
-6.1
-1.1

18.1
19.9
21.7
23.3
24.7

19.3
20.3
21.6
23.0
25.6

-1.2
-.4
.1
.3
-.9

98.4
109.3
115.2

100.2
105.2
116.2

-1.8
4.1
-1.0

71.4
80.3
84.7

72.2
74.8
83.4

-.7
5.5
1.3

26.9
29.0
30.5

28.0
30.4
32.8

-1.1
-1.4
-2.3

93.4
105.2
111.8

97.5
101.8
111.6

67.8
77.1
82.1
85.1
87.3

70.5
72.6
80.0
84.9
86.7

-2.7
4.5
2.1
.2
.6

25.6
28.1
29.7

27.0
29.2
31.6

-1.4
-1.0
-1.8

Period

.

1955
1956
1957*
Fiscal year:
1955
1956
1957*
1958 5
1959*

Z. 4
.3

1
2

Excess
Excess
of reof receipts
Cash
Cash
ceipts
or
re- 2 pay- 2
or
of pay- ceipts ments of payments
ments

Estimates by Council of Economic Advisers.
Federal grants-in-aid have been deducted from State and local government receipts and payments
since they are included in Federal payments.
3 Less than 50 million dollars.
* Preliminary.
8
Estimate.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department and Bureau of the Budget (except as noted).




175

TABLE F—53.—Government receipts and expenditures as shown in the national income accounts,
1954-57!
[Calendar years, billions of dollars]
1956

1955

1954
Receipt or expenditure

1957 3

First SecFirst SecFirst SecFirst SecYear half 2 ond Year half 2 ond Year half ond Year half a ond
half 2
half 2
half >
half*

Total government
Receipts
E xpenditures
Excess of receipts or of
expenditures (-)

90.2
96.6

89.6
97.6

90.8 101.1
95.6 98.6

104.0 109.0 J07.6 110.4 115. 7 115.2
99.1 104.2 102.0 106.4 114.1 112.9

2.G

-8.0

-4.8

64.0

63.7

64.3

72.5

29.2

29.0

29.3

31.5

16.7

16.3

17.0

20.6

10.1

10.2

.3

4.9

4.8

116.2
115.2

5.5

4.0

1.7

2.3

.8

Federal Government
Receipts
Personal tax and nontax receipts
Corporate profits tax
accruals
Indirect business tax
and nontax accruals.
Contributions for social insurance
Expenditures
Purchases of goods
and services
Transfer payments
Orants-in-aid to State
and local governments
Net interest paid
Subsidies less current
surplus of Government enterprises

8.1

78.2

77.1

79.3

83.3

83.1

83.4

35.1

34.7

35.5

38.1

37.7

38.5

19.4

21.7

21.0

20.9

21.1

20.5

20.9

20.0

11.0

8.1 I 8.1

74.6
32.1

10.9

11.2

11.6

11.2

11.9

12.2

12.2

12.3

9.3

9.1

9.6

10.5

10.3

10.8

12.5

12.4

12.6

70.3

69.4

71.0 67.9

68.9

68.5

69.3

72.0

70.1

74.0

79.3

78.5

80.1

48.9
11.6

51.2
11.2

46.7
12.2

46.8
12.5

46.7
12.4

46.9
12.6

47.2
13.5

46.3
13.2

48.1
13.8

50.5
16.0

.50.7
15.3

50.3
16.6

2.9
4.8

2.7
4.8

3.1
4.8

3.0
4.7

2.7
4.7

3.4
4.8

3.3
5.2

2.9
5.1

3.6
5.3

4.0
5.4

3.7
5.4

4.2

1.2

1.2

1.8

2.0

2.8

2.6

3.1

3.5

3.4

6.2

7.0

5.3

4.0

4.6

5.4

Excess of receipts or of
expenditures (—).
-5.4

3.6
-7.3

-3.6

5.3

3.6

2.9

State and local govern_____
31.7 i 30.7 32.8

34.1

33.4

34.8

36.6

35.8

37.1

4.2

4.3

4.6

4.5

4.6

5.0

4.9

5.1

1.0

1.0

1.0

1.0

.9

1.0

.9

21.2

22.4

23.4

23.2

23.7

24.6

24.3

24.9

1.6
2.7

1.7
3.4

1.8
3.3

1.8
2.9

1.9
3.6

2.0
4.0

1.9
3.7

2.0
4.2

33.2

35. 5

34.9

36.1

38.7

38.1

39.2

30.8
3.5
.5

33.0
3.7
.5

32.5
3.6
.5

33.6
3.7
.6

36.0
4.0
.6

35.5
3.9
.6

36.5
4.1

1.5

1.6

1.7

1.7

1.8

1.9

1.9

2.0

-1.0 -i.e

-.4

-1.4

Receipts
29.1
Personal tax and non3.8
tax receipts
Corporate profits tax
accruals
Indirect business tax
and nontax accruals. 20.1
Contributions for so1.6
cial insurance
Federal grants-in-aid - - 2.9

28.5

1.5
2.7

1.6
3.1

E xpenditures
Purchases of goods
and services. - Transfer payments. _
Net interest paid
Less: Current surplus
of Government enterprises

30.1

29.3

30.8

32.7

32.3

27.7

3.4
.4

26.9
3.3
.4

28.4
3.4

30.3
3.5
.5

29.8
3.5
.5

1.4

1.4

1.4

Excess of receipts or of
expenditures (—)
-1.0

29.7
3.9

4.2
1.0

19.9

20.3

-1.2

21.8

1.7
3.0

1

-1.5 -1.2 -2.2 -2.3

-2.2

These accounts, like the cash budget, include the transactions of the trust accounts. Unlike both the
conventional budget and the cash statement, they exclude certain capital and lending transactions. In
genera], they do not use the cash basis for transactions with business. Instead, corporate profits taxes are
included in receipts on an accrual instead of a cash basis; expenditures are timed with the delivery instead
of the payment for goods and services; and CCC guaranteed price-support crop loans financed by banks are
counted as expenditures when the loans are made, not when CCC redeems them.
2
Seasonally adjusted annual rates.
3
Prelimininary; fourth quarter estimates b y Council of Economic Adviseis.
NOTE.—Federal grants-in-aid to State and local governments are reflected in Federal expenditures and
State and local receipts and expenditures. Total government receipts and expenditures have been adjusted
to eliminate this duplication.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




I76

T A B L E F—54.—Reconciliation of Federal Government receipts and expenditures as shown in the
national income accounts with receipts and expenditures as reported in the consolidated cash statement and the conventional budget^ fiscal years 1955-57
[Fiscal years, billions of dollars]
Receipts or expenditures

1955

1956

1957

National income accounts
Receipts

67.2
68.1

81.4
76.2

6.4

5.3

67.2

Excess of receipts or of expenditures (—)

76.1
69.7

-1.0

Expenditures

76.1

81.4

Reconciliation of receipts
Receipts as shown in the national income accounts
Less:
Excess of taxes included in national income accounts over cash collections:
Personal
Corporate profits
Other
Federal Government contributions to:
Employee retirement funds
Veterans life insurance funds
Federal Government employee contributions to employee retirement funds.
Plus:
Realization upon loans and investments
Interest, dividends, and other earnings
Proceeds from sale of Government property.
Recoveries and refunds
District of Columbia revenues
Miscellaneous adjustments

-.2
-.3
.6

.5
.0
.7
.3
.4
.4
.6
.2
.2

82.1

2.7
.0

3.2
.0

68.2

71.0

68.1

Receipts from exercise of monetary authority

77.1
11.7

60.4

Plus:
Intragovernmental transactions

67.8

2.1
.0

Less: Trust fund receipts

.3
.5
.4
.4
.2
.1

9.5

Equals: Federal receipts from the public (consolidated cash receipts)

.3
.4
.5
.6
.2
.3

69.7

76.2

.0
.1
.5
.5
-1.0
-.4

.2
.1
.6
.4
-.4

.5
.0
.7
.6
-.2
.4

.9
-.1
1.0

1.7
.1
1.6

2.7
1.0
1.7

.2
.1

.2
.1

.2
.1

.5
-.2
.1
-.2
-.1

.8
-.2
-.3
-.2
.3

.5
1.7

70.5

72.6

Equals: Conventional budget receipts
Reconciliation of expenditures
Expenditures as shown in the national income accounts
Less:
Federal Government contributions to:
Employee retirement funds
Veterans life insurance funds
Federal Government employee contributions to employee retirement funds.
Accrued interest on savings bonds and Treasury bills
Commodity Credit Corporation guaranteed nonrecourse loans (net change).
Miscellaneous adjustments
Plus:

Loans and other adjustments, government enterprises
Federal National Mortgage Association secondary market operations. __
Other
Interest received and proceeds of government sales netted out of national
income expenditures
District of Columbia expenditures
Purchase of land and existing assets
Trust and deposit fund expenditures, not included in national income
expenditures.
Miscellaneous adjustments
Decrease in clearing account
Issuance of International Monetary Fund notes
Other
Equals: Federal payments to the public (consolidated cash expenditures)

.7
.3

Less:
Trust fund expenditures
Government-sponsored enterprise expenditures (net)

8.5
.1

9.4
.3

13.0
.0

Plus:
Intragovernmental transactions
r
Accrued interest and other noncash expenditures (net)

2.1
.6

2.7
.9

3.2
-.8

66.5

69.4

Equals: Conventional budget expenditures

64.6

NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Department of Commerce, Bureau of the Budget, and Treasury Department.




177

TABLE F—55.—State and local government revenues and expenditures, selectedfiscalyears, 1927-56
[Millions of dollars]
Revenues by source 2

Fiscal year 1
Total

Expenditures by function

Revenue
Sales
All
and
Indi- Corpo- from
Prop- gross vidual ration Fed- other
net
erty
re- income income eral
reve3
taxes ceipts taxes
taxes Gov- nue
erntaxes
ment

EduTotal cation

2

High- Public All 4
wel- o t h e r
ways
fare

1927

7,271

4,730

470

70

92

116

1,793

7,210

2,235

1,809

151

3,015

1932
1934
1936
1938 .

7,267
7,713
8,504
9,228

4,487
4,076
4,093
4,440

752
1,008
1,484
1,794

74
80
153
218

79
49
113
165

232
1,051
1,057
800

1,643
1,449
1,604
1,811

7,765
7,181
7,644
8,757

2,311
1,831
2,177
2,491

1,741
1,509
1,425
1,650

444
889
827
1,069

3,269
2,952
3,215
3, .547

1940
1942
1944
1946
1948

9,609
10,418
10,908
12,357
17,251

4,430
4,537
4,604
4,986
6,126

1,982
2,351
2,289
2,986
4,442

224
276
342
422
543

156
272
451
447
592

945
858
954
855
1,861

1,872 9,229
2,123 9,190
2,269 8,863
2,661 11,028
3,685 17,684

2,638
2,586
2,793
3,356
5,379

1,573
1,490
1,200
1,672
3,036

1,156
1,225
1,133
1,409
2,099

3,862
3,889
3,737
4,591
7,170

1950
1952
1953
1954

20,911
25,181
27, 306
29,013

7,349
8,652
9,375
9,967

5,154
6,357
6,927
7,276

788
998
1,065
1,127

593
846
817
778

2,486
2,566
2,870
2,966

4,541
5,763
6,251
6,897

22, 787 7,177
26,098 8,318
27, 910 9,390
30,701 10,557

3,803
4,650
4,987
5,527

2,940 8,867
2,788 10,340
2,914 10,619
3,060 11, 556

1955.
1956

31,073 10,735
34,667 11, 749

7,643
8,691

1,237
1,538

744
890

3,131
3,335

7,584 33,724 11,907
8,465 36,711 13,220

6,452
6,953

3,168 12,196
3,139 13,397

1
Fiscal years not the same for all governments.
2 Excludes revenues or expenditures of publicly owned utilities and liquor stores, and of insurance-trust
activities. Intergovernmental receipts and payments between governments in these categories are also
excluded.
3 Includes licenses and other taxes and charges and miscellaneous revenues.
4
Includes expenditures for health, hospitals, police, local fire protection, natural resources, sanitation,
housing and community redevelopment, local recreation, general control, interest on general debt, and
other and unallocable expenditures.

NOTE.—Data are not available for intervening years.
See Table F-47 for net debt of State and local governments.
Detail will not necessarily add to total because of rounding.
Source: Department of Commerce (Bureau of the Census).




178

CORPORATE PROFITS AND FINANCE
TABLE F-56.—Profits before and after taxes, all private corporations, 1929—57
[Billions of dollars]

Corporate profits after taxes

Corporate
profits
before
taxes

Corporate
tax
liability »

1929.

9.6

1.4

8.3

5.8

2.4

1930.
1931.
1932.
1933.
1934.

3.3
-.8
-3.0
.2
1.7

.8
.5
.4
.5
.7

2.5
-1.3
-3.4
-.4
1.0

5.5
4.1
2.6
2.1
2.6

-3.0
-5.4
-6.0
-2.4
-1.6

1935.
1936.
1937.
1938.
1939.

1.0
1.4
1.5
1.0
1.4

2.2
4.3
4.7
2.3
5.0

2.9
4.5
4.7
3.2
3.8

-.7
-.2

1040.
1941.
1942.
1943.
1914..

3.1
5.7
6.2
3 4
6.4
9.3
17.0
20.9
24.6
23.3

2.8
7.6
11.4
14.1
12.9

6.5
9.4
9.5
10.5
10.4

4.0
4.5
4.3
4.5
4.7

2.4
4.9
5.2
6.0
5.7

1945..
1946..
1947..
1948..
1949..

19.0
22.6
29.5
32.8
26.2

10.7
9.1
11.3
12.5
10.4

8.3
13.4
18.2
20.3
15.8

4.7
5.8
6.5
7.2
7.5

3.6
7.7
11.7
13.0
8.3

1950.
1951..
1952..
1953..
1954..

40.0
41.2
35.9
37.0
33.5

17.8
22.5
19.8
20.3
17.4

22.1
18.7
16.1
16.7
16.0

9.2
9.1
9.0
9.3
9.9

12.9
9.6
7.1
7.4
6.1

1955..
1956..
1957 3

42.5
43.0
42.0

21.5
22.0
21.4

21.0
21.0
20.6

11.0
11.9
12.3

9.9
9.2
8.3

Period

Total

Dividend Undistributed
payments
profits

-.9
1.2

Seasonally adjusted annual rates
1955: First quarter
Second quarter..
Third quarter. _.
Fourth quarter..

10.2
10.4
10.8
12.0

9.3
9.7
10.7
10.7

1956: First quarter
Second quarter..
Third quarter...
Fourth quarter..
1957: First quarter
Second quarter3.
Third quarter ..
Fourth quarter 3.

11.7
12.0
12.1
11.5

9.5
8.7
7.8
10.8

12:4
12.5
12.6
11.7

9.1
8.0
7.9

1

Federal and State corporate income and excess profits taxes.
* 48 million dollars.
Preliminary; fourth quarter by Council of Economic Advisers.
< Not available.
NOTE.—No allowance has been made for inventory valuation adjustment.
before taxes and inventory valuation adjustment.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
3




179

See Table F-9 for profits

TABLE F—57.—Relation of profits before and after taxes to stockholders'' equity and to sales, private
manufacturing corporations, by asset size class, 1947-50 average and 1956—57

Asset size class (thousands
of dollars)

1947-50
average

1956
First
quarter

Second
quarter

1957

Third Fourth First Second Third
quarter quarter quarter quarter quarter

Ratio oi profits before Federal taxes (annual rate) to stockholders' equity
(percent)
All asset sizes
Under 250
250-999
1,000-4,999
5,000-99,999
100,000 and over

24.6

23.8

24.2

20.2

22.3

22.5

21.6

19.1

16.7
22.7
24.2
25.2
24.9

17.3
18.9
21.4
22.8
25.4

24.0
22.1
21.5
24.1
24.9

25.2
23.0
21A
22.4
18.6

13.0
12.8
18.9
22.4
24.0

15.6
15.7
18.8
20.8
24.5

19.4
19.2
19.7
21.4
22.2

18.2
20.4
18.7
20 0
18.8

Ratio olr profits after Federal taxes (annual rate) to stockholder s' equity
(percent)
All asset sizes
Under 250
250-999
1,000-4,999
5,000-99,999
100,000 and over

14.8

12.5

13.0

11.0

12.6

11.9

11.6

10.5

9.8
13.1
14.1
14.9
15.3

10.3
9.5
10.6
11.2
13.7

15.6
11.5
10.4
12.0
13.9

15.3
11.7
10.7
11.1
10.8

5.8

8.4

5.8
9.1
11.4
14.5

7.5
8.9
10.1
13.6

11.1
10.0
9.6
10.6
12.4

11.0
10.1
9.1
10.0
10.9

Profits before Federal taxes in cents per dollar of sales
All asset sizes
Under 250
250-999
1,000-4,999
5,000-99,999
100,000 and over

11.1

10.2

10.3

9.0

9.3

9.7

9.4

8.5

4.4

3.3
4.6
6.9
9.8
13.1

4.6

4.9

2.4

5.2
6.9
10.1
12.8

3.7

3.7
6.3

4.5
6.3

3.5

5.3
6.9

2.9
5.9

3.1

9.7

9.4

9.0

9.1

8.8

10.5

11.9

12.4

11.6

10.3

7.4
9.0
11.3
13.2

4.7
6.0

Profits after Federal taxes in cents per dollar of sales
All asset sizes
Under 250
250-999
1,000-4,999
5,000-99,999
100,000 and over

6.7

5.3

5.5

4.9

5.2

5.1

5.0

4.7

2.6
4.3
5.2
6.7
8.1

1.9

3.0
2.7
3.3
5.0
7.1

3.0
2.7
3.5
4.8
6.1

1.1
1.3
2.9
4.8
7.2

1.7
1.8
3.0
4.4
6.9

2.1
2.3
3.1
4.5
6.5

2.1
2.3
2.9
4.4
6.0

2 S

3.4
4.8
7.0

NOTE.—The sample for these series was changed beginning with the third quarter of 1951 and again
beginning with 1956. However, the 1947-50 averages have not been adjusted to either of these samples
and, therefore, are not strictly comparable with data for later periods. For explanatory notes concerning
compilation of the series, see Quarterly Financial Reports for U. S. Manufacturing Corporations by Federal
Trade Commission and Securities and Exchange Commission.
Sources: Federal Trade Commission and Securities and Exchange Commission.




180

TABLE F-58.—Relation of profits after taxes to stockholders'1 equity and to sales, private
manufacturing corporations, by industry group, 1947-50 average and 7956-57
1956

1957

1947-50

Industry group

aver-

First i Second, Third Fourth First Second i Third
quarter quarter quarter quarter quarter quarter quarter
Ratio of profits after Federal taxes (annual rate) to stockholders'
equity (percent)

All private manufacturing
corporations

14.8

12.5

13.0

11.0

12.6

11.9

11.6

10.5

Lumber and wood products (except
furniture)
Furniture and fixtures
Stone, clay, and glass products
Primary iron and steel industries
Primary nonferrous metal industries

17.1
14.3
15.2
12.9

9.1
10.7
12.6
14.7

11.0
11.4
17.2
15.1

9.0
13.0
15.9
6.0

5.6
11.2
13.6
15.1

2.0
7.3
10.0
13.8

6.2
9.2
13.7
13.0

6.5
9.7
13.8

12.5

19.9

18,0

13.9

14.1

12.4

9.7

8.1

15.3
14.5

10.9
11.9

11.5
14.2

11.0
12.0

9.4
12.3

9.5
12.3

10.9
13.0

11.0
10.1

17.8
21.7
6.6

10.3
16.7
14.3

12.1
13.1
16.7

11.6
6.9
13.6

11.4
15.7
16.1

13.9
18.8
14.8

12.9
15.3
16.4

11.5
9.2
13.9

Instruments and related products. _.
Miscellaneous manufacturing (including ordnance)
Food and kindred products
Tobacco manufactures
Textile mill products
1.

14.6

8.7

11.9

12.5

16.3

10.6

12.4

11.6

11.4
13.6
12.1
14.5

9.7
8.2
10.0
6.4

10.4
9.9
12.0
4.8

13.3
10.4
12.7
5.5

13.0
8.7
12.1
6.4

6.9
7.4
10.3
4.4

7.5
8.4
11.9
4.4

10.4
10.4
13.9
4.8

Apparel and related products
Paper and allied products
Printing and publishing (except
newspapers)
Chemicals and allied products
Petroleum refining

12.0
16.2

6.8
12.1

4.5
12.2

10.9
11.0

10.0
11.3

6.7
10.2

5.9
9.0

9.7
8.7

13.4
15.9
115.1

16.3
15.0
13.1

15.0
14.7
14.0

11.0
13.1
13.2

10.0
13.9
15.3

12.3
13.7
14.4

14.8
13.9
11.8

11.9
13.1
11.1

Products of petroleum and coal (except petroleum refining)
Rubber products
Leather and leather products

(2)
12.8
10.4

7.7
11.9
9.6

11.1
13.1
6.6

12.0
11.0
6.3

8.4
12.8
6.4

4.3
11.5
6.6

8.2
11.6
6.5

10.8
10.9

Fabricated metal products
Machinery (except electrical)
Electrical machinery, equipment,
and supplies
Motor vehicles and equipment
Other transportation equipment

See footnotes at end of table.




181

TABLE F-58.—Relation of profits after taxes to stockholders* equity and to sales, private
manufacturing corporations^ by industry group, 7947-50 average and 1956-57—Continued

Industry group

1947-50
average

1956

1957

First Second Third Fourth First Second Third
quarter quarter quarter quarter quarter quarter quarter
Profits after Federal taxes in cents per dollar of sales

All private manufacturing
corporations
_..

6.7

5.3

5.5

4.9

5.2

5.1

5.0

4.7

Lumber and wood products (except
furniture)
Furniture and fixtures
Stone, clay, and glass products
Primary iron and steel industries
Primary nonferrous metal industries

9.2
5.0
8.9
7.2
8.8

4.4
3.1
7.3

4.7
3.3
9.1

3.8
4.0
8.6

2.5
3.1
7.8

1.0
2.3
6.6

2.9
2.8
8.1

10.2

9.8

8.1

8.7

8.1

6.6

3.1
3.1
7.8
6.1
6.0

6.6
7.1

4.2
5.2

4.2
5.8

4.0
5.3

3.5
5.2

3.7
5.3

4.1
5.5

4.2
4.7

6.3
7.4
3.4

3.6
6.0
3.6

4.0
5.0
3.8

3.9
3.3
3.2

3.5
5.8
3.2

4.5
6.3
3.2

4.3
5.7
3.3

4.0
4.0
3.1

Fabricated metal products
Machinery (except electrical)
Electrical machinery, equipment,
and supplies
_
Motor vehicles and equipment
Other transportation equipment
Instruments and related products...
Miscellaneous manufacturing (including ordnance)
Food and kindred products
Tobacco manufactures
_.
Textile mill products

7.9

4.5

5.8

6.1

6.6

5.3

5.8

5.7

5.3
3.6
4.8
6.6

3.2
2.2
4.5
2.8

3.4
2.6
5.0
2.2

4.1
2.7
5.3
2.6

3.8
2.2
5.1
2.8

2.4
2.0
4.7
2.0

2.4
2.2
4.9
2.0

3.2
2.6
5.5
2.2

Apparel and related products. _
Paper and allied products
Printing and publishing (except
newspapers)
Chemicals and allied products
Petroleum refining.

3.1
8.6

1.4
6.4

1.0
6.4

2.1
5.9

1.9
5.9

1.4
5.7

1.2
4.9

1.8
4.9

5.0
9.1
111.0

5.4
8.5
10.6

5.0
8.1
12.0

3.7
7.6
11.4

3.0
7.9
12.3

4.0
7.8
11.0

4.8
7.9
10.2

3.8
7.6

Products of petroleum and coal (except petroleum refining).
Rubber products
Leather and leather products

(2)
4.8
3.4

3.8
4.3
2.8

4.7
4.6
1.9

5.3
4.1
1.8

3.8
4.7
1.8

2.1
4.4
1.8

3.6
4.3
1.9

4.4
4.0
2.0

1

Petroleum refining and products of petroleum and coal combined.
Not available separately for this period.
NOTE.—The sample for these series was changed beginning with the third quarter of 1951 and again
beginning with 1956. However, the 1947-50 averages have not been adjusted to either of these samples and,
therefore, are not strictly comparable with data for later periods. For explanatory notes concerning compilation of the series, see Quarterly Financial Reports for U. S. Manufacturing Corporations by Federal Trade
Commission and Securities and Exchange Commission.
Sources: Federal Trade Commission and Securities and Exchange Commission.
2




182

TABLE F-59.—Sources and uses of corporate funds, 1946-57

l

[Billions of dollars]

Source or use of funds

Total uses.

1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 19572

19.5 28.2 27.0 16.8 36.5 36.4 27.3 28.4 21.5 39.4 38.8

Plant and equipment outlays
12.5 17.0 18.8 16.3
Inventories (change in book
value)
11.2 7 1 4.2 -3.6
.
Change in customer net receivables 3
1 1 3 1 2.8 .9
.
.
Cash and U. S. Government
securities
1.0 1.0 3.2
-4.7
O ther assets
.2 (4)
-.6 (4)
Total sources
Internal sources..
Retained profits and depletion allowances
Depreciation and amortization allowances
External sources

.
98 94
.

.9

5.0

2.0

3.1

4.5
.3

2.8
.6

.1
.8

1 5 -2.0
.
.7 2.3
2.1 -1.0
.2 -.2

39.0
32.5

5.0

79
.

1.5

4.9

4.7

4.0

4.7 -4.0 - 1 . 5
.6
2.5
.3

18.2 27.9 27.7 15.6 34.7 36.1 27.4 28.5 21.5 40.2 39.0

39.0

11.4 16.6 18.6 14.7 20.2 18.1 16.8 18.3 18.9 24.0 24.8

25.5

7.2 11.4 12.4
4.2

5.2

6 8 11.3
.

Change in Federal income
tax liability
-1.6
Other liabilities
2.1
Change in bank loans and
mortgage loans
3.9
2.4
Net new issues
Discrepancy (uses less sources)..

16.9 21.6 22.4 23.9 22.4 24.2 29.9

13
.

7.6 12.4

62 71
.
.
91
.

7.8

9 1 6 4 6 5 5.4
.
.
.

81
.

»7.0

9 0 10.4 11.8 13.5 15.2 16.7
.

18.5

.9 14.5 18.0 10.6 10.2

8.8

2.6 16.2 14.2

13.5

2.5

2.1
1.5

1.0 -2.2
.4
.5

7.2
1.0

4.4 -2.8
1.9 2.4

.4 -3.0
2.2
.3

2.8 -1.5
1.7 2.0

3.3
4.4

1.8 -2.3
5.9 4.9

2.6
3.7

5.4
6.3

.5 -.6
7.1 5.9

4.7
7.0

.3 -.7

1
2

12
.

18
.

3.1
7.9

5.5
8.2

1.5
11.0

.3 (4) -.1 (4) -.8 -.2

Excludes banks and insurance companies.
Preliminary estimates.
3 Receivables are net of payables, which are therefore not shown separately.
* Less than 50 million dollars.
^ Preliminary estimate by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce based on Securities and Exchange Commission and other financial
data (except as noted).




183

TABLE F-60.—Current assets and liabilities of U. S. corporations, 1953-57 *
[Billions of dollars, end of period]
1956

Asset or liability

Total current assets
Cash on hand and in
banks
U. S. Government securities
Receivables from U. S.
Government 2
Other notes and accounts receivable
Inventories
Other current assets 3 .
Total current liabilities
Advances and prepayments, U. S. Government 2
Other notes and accounts payable
Federal income tax liabilities
Other current liabilities
Net working capital

1953

1954

1955

190.6

194.6

214.6

1957

First* Second Third Fourth First Second Third
quarter quarter quarter quarter quarter quarter quarter
213.4

214.7

220.4

225.7

224.9

224.5

228.9

31.1

33.4

34.0

30.9

32.1

32.6

34.7

31.9

32.5

33.2

21.5

19.2

23.3

20.8

17.4

17.5

18.6

18.0

15.7

16.1

2.6

2.4

2.3

2.3

2.3

2.4

2.6

2.5

2.5

2.4

65.9
67.2
2.4

71.2
65.3
3.1

81.6
70.0
3.5

82.4
73.1
3.9

84.3
74.8
3.8

88.1
76.0
3.8

88.8
77.3
3.6

89.4
79.1
4.0

90.5
79.3
4.0

98.9

102.8

115.7

112.4

112.1

117.0

121.3

118.9

117.6

92.9
80.0
4.2
121.2

2.2

2.4

2.3

2.3

2.5

2.5

2.4

2.5

2.6

2.6

57.3

61.4

69.9

69.2

71.4

73.0

74.9

74.1

74.4

75.2

18.7

15.5

18.4

15.3

12.3

14.4

16.8

14.4

12.2

13.8

20.7

23.5

25.1

25.6

25.8

27.1

27.2

28.0

28.3

29.6

91.8

91.8

98.9

101.0

102.7

103.4

104.4

106.0

107.0

107.7

1

All corporations in the United States, excluding banks, savings and loan associations, and insurance
companies. Data for 1953-54 are based on Statistics of Income, covering virtually all corporat'ons in the
United States. Statistics of Income data may not be strictly comparable from year to year because of changes
in the tax laws, basis for filing returns, and processing of data for comp lation purposes. Data for 1955-57
are estimates based on data compiled from many different sources, including data on corporations registered
with the Commission. As more complete data become available, estimates are revised.
2 Receivables from and payables to U. S. Government do not include amounts offset against each other
on the corporation's books or amounts arising from subcontracting which are not directly due from or to
the U. S. Government. Wherever possible, adjustments have been made to include U. S. Government
advances offset against inventories on the corporation's books.
3
Includes marketable securities other than U. S. Government.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Securities and Exchange Commission.




184

T A B L E F - 6 1 . — S t a t e and municipal and corporate securities offered, 1934-57'*
[Millions of dollars]

Period

Corporate securities offered for cash 2
State
and
Gross proceeds 3
Proposed uses of net proceeds *
municipal securities
New money
offered
for cash
Retire- Other
Com- Pre- Bonds
(prinTotal mon ferred and Total
Plant Work- ment purcipal
of sestock stock notes
and
ing
amounts)
Total equip- capi- curities poses
tal
ment
372

384

57

32

26

271
406

2,224
4,028
1,618
2,044
1,980

2,266
4,431
2,239
2,110
2,115

208
858
991
681
325

111
380
574
504
170

96!
478!
417
177
155

1, 865| 193
204
3,368
148
1,100
1, 206! 222
95
l,69oj

183
167
112
124

2,386
2,390
91"
990
2,670

2,615
2,623
1,043
1,147
3,142

569
868
474
308
657

424
661
287
141
252

145J
207
187)
1671
4051

1,854
1,583
396
739

2, 3891

192
172
173
100
96

758
397
891 1,127
762
779
492
614
425
736

4,855
4,882
5,036
5,973
4, 890

5,902
6,757
6,466
6,959
5,959

1,080
3,279
4,591
5,929
4,606

638

2,115
3,409
4,221
3,724

, |
1,182i
1, 708
882

4, 555]
2, 868:
1,352
307!
401

267
610
524
722
952

4,920
5,691
7,601
7,083
7,488

6,261
7,607
9,380
8, 755
9,365

4,006
6,531
8,180
7,960
6,780

2.966
5,110
6,312
5,647
5,110

1,0411
1, 42l|
1, 868j
2, 313i
1, 670;

1, 271
486
664
260
1,875

984
589
537
535
709

7, 420 10, 049 7,957
8, 002 10, 749 9,663
10,035 12, 81011,931

5, 333
6,709
9,052

2,624
2,954!
2, 8791

1,227
364
225

864
721
654

2, 485
2,359
2,314
2,892

1,988
1,814
1,699
2,457

1,258
1,230
1,948

730
584
801,
5091

320!
307
403
197

177
238
212
237

1,706
2,311
2,134
1,851

2,209
2,935
2,641
2,964

1,947
2,589
2,369
2,758

1.076
1,864
1,637
2,132

871 j
725
732
626

106
130
86
421

155
215
187
164

2,750
2,412
2,513
2,360

3,532
3,243
2,941
3,093

3,223
2,990
2,784
2,934

2,623
2.262
1,881
2,285

600

54
59
63!

255
194
94
111

1934

939

397

1935
1936
1937
1938
1939

1,232
1,121
908
1,108
1,128

2,332
4,572
2,310
2,155
2,164

22
272
285
25
87

1940
1941
1942
1943
1944

1,238
956
524
435
661

2,677
2,667
1,062
1,170
3,202

108
110
34
56
163

1945
1946
1947
1948
1949

795
1,157
2,324
2,690
2,907

6,011
6,900
6,577
7,078
6,052

1950
1951
1952
1953
1954

3,532
3,189
4,401
5,558
6"~"

6,361
7,741
9,534
8,898
9,516

811
1,212
1,369
1,326
1,213

631
838
564
489
816

1955
1956
1957 5

5,977 10, 240 2,185
5, 446 10,939 2,301
6, 879 12, 997 2,550

635
636
412

1955: First quarter._
Second quarter.
Third quarter._
Fourth quarter

1,409
1,429
1,136
2,002

2,530
2,413
2,358
2,939

758
562
405
460

111
208
150
167

1,662
1,643
1,804
2,312

1956: First quarter. _.
Second quarter.
Third quarter..
Fourth quarter.

1,517
1,617
928
1,384

2,250
2,989
2,690
3,010

352
532
457
960

191
146
99
199

1957: First quarter . .
Second quarter.
Third quarter-.
Fourth quarter

1, 758
1,689
1,549
1,883

3,596
3,305
2,987
3,108

749
756
40:
644

97
137
72
105

898

9031
6491

231

95

1
These data cover substantially all new issues of State, municipal, and corporate securities offered for
cash sale in the United States in amounts over $100,000 and with terms to maturity of more than 1 year.
2
Excludes notes issued exclusively to commercial banks, intercorporate transactions, and issues sold
through continuous offerings, such as securities of open-end investment companies and employee-purchase
plans.
3 Number of units multiplied by offering price.
4
Net proceeds represents the amount received by the issuer after payment of compensation to distributors
and other costs of flotation.
5
Preliminary.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Securities and Exchange Commission, The Commercial and Financial Chronicle, and The Bond
Buyer.




185

TABLE F-62.—Common stock prices and stock market credit, 1939-57
Stock market credit

Period

Common
stock
prices
index,
1939=100
(SEC)

Customer credit (excluding U. S.
Government securities)

Total

Net debit
balances J

Bank loans
to brokers
and
Bank loans dealers *
to 3
"others"

Millions of dollars
1939

100.0

1940
1941
1942
1943
1944

94.2
85.7
74.9
99.2
108.1

353

584
535
850
1,328
2,137

1945
1946
1947
1948
1949

131.2
149.4
130.9
132.7
127.7

1,374
976
1,032
968
1,249

942
473
517
499
821

432
503
515
469
428

2,782
1,471
784
1,331
1,608

1960
1951
1952
1953
1954

154.1
184.9
195.0
193.3
229.8

1,798
1,826
1,980
2,445
3,436

1,237
1,253
1,332
1,665
2,388

561
573
648
780
1,048

1,742
1,419
2,002
2,248
2,688

1955
1956
1957

304.6
345.0
331.4

4,030
3,984
()

2,791
2,823
)

1,239
1,161
1,066

2,852
2,214
2,190

1956: January.-.February..
March
April
May
June

325.7
330.0
350.9
355.4
347.0
341.4

4,040
3,991
4,038
4,043
4,047
4,009

2,786
2,740
2,786
2,788
2,810
2,786

1,254
1,251
1,252
1,255
1,237
1,223

2,529
2,422
2,436
2,347
2,435
2,380

July
August
September.
October.—
November.
December _
1957: J a n u a r y —
February..
March
April
May
June

359.4
359.4
344.8
341.6
338.5
344.0

4,026
3,979
3,950
3,914
3,946
3,984

2,812
2,785
2,782
2,748
2,784
2,823

1,214
1,194
1,168
1,166
1,162
1,161

2,241
1,948
2,019
1,975
1,915
2,214

338.2
325.1
328.5
338.6
352.2
354.6

3,902
3,846
3,832
3,938
3,924
4,031

2,761
2,729
2,713
2,792
2,794
2,887

1,141
1,117
1,119
1,146
1,130
1,144

1,689
1,760
1,670
1,842
1,765
1,842

July
August
September.
October---.
November.
December.

361.8
343.2
327.9
306.4
301.8
298.5

4,004
3,929
3,882
3,643
3,577

2,885
2,833
2,789
2,568
2,517
()

1,119
1,096
1,093
1,075
1,060
1,066

1,660
1,810
1,748
1,642
1,610
2,190

715
(*)

0)
(4)

()

1
As reported by member firms of the New York Stock Exchange carrying margin accounts. Includes
net debit balances of all customers (other than general partners in the reporting firm and member firms of
national exchanges) whose combined accounts net to a debit. Balances secured by U. S. Government
obligations are excluded. Data are for end of period.
2
Loans by weekly reporting member banks to others than brokers and dealers for purchasing or carrying
securities except U. S. Government obligations. However, some U. S. Government securities may be
included after 1952. Series revised beginning July 1946 and March 1953. Data are for last Wednesday of
period.
3
Loans by weekly reporting member banks for purchasing or carrying securities, including U . S . Government obligations. Series revised beginning July 1946 and January 1952. Data are for last Wednesday of
period.
* Not available.
Sources: Securities and Exchange Commission, Board of Governors of the Federal Reserve System, and
New York Stock Exchange.




186

TABLE F-63.—Business population and business failures, 1929-57
Operating businesses and
business turnover (thousands of firms) i

Period

Business failures, by size of liability 3

New
business
Number of failures
DisincorOperat- New con- Busi- poratining
Liability size
busi- ued ness tions
busi^ 2 nesses3 busi- trans- (numclass
3
nesses
ber) 3
ness- fers
Total
3
Under
es
and
$100,000

1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957

3, 029. 0
2, 993. 7
2, 916. 4
2, 828. 1
2, 782.1
2, 884. 0
2,991.9
3, 069. 8
3, 136. 3
3, 073. 7
3, 222. 2

C5)
(5)

3,318.9
3, 276. 0
3, 295. 3
3, 030. 0
2, 839.1

275.2
290.0
121.2
146.0
330.9

2, 995. 4
3, 242. 5
3,651.2
3, 872. 9
3, 984. 2
4, 008. 7
4, 067. 3
4,121.3
4, 178. 8
4,185. 3
4,189. 0
4, 245. 2
4, 287. 0

422.7
617.4
460.8
393.3
331.1

1956: January
4, 245. 2
February
March
April
May
June
July
4, 294. 2
August
September. __
October
November
December
1957: January
4, 287. 0
February
March. __
April
May
June
4, 322. 0
July
August
September.. _
October
November,._
December ^_

348.2
363.2
363.9
340. 5
334.2
380.4
380.8

318.1
270.7
386.5
337.0 ()
174.
359.4
175.6 473.2
208.7 626.9
239.2 571.9
282.0 501.3
306.5 434.7
289.6 419.4
309.3 378.3
306.3 374.9
334.0 356. 2
330.6 319.7
324.2 327.0
338.9 327.3

223.'

174.'

186.1

211.0 176.0 193.2

Amount of current
liabilities (millions of
dollars)
Liability size
class
Total

Under $100,000
and
over

$100,000

261.5
22,909 22,165
744 483.3
303.5
947 668.3
26, 355 25, 408
1, 055 736.3
28, 285 27, 230
354.2
432.6
1,625 928.3
31, 822 30, 197
6 979 B 457. 5 e 215. 5
19, 859 1 18, 880
12, 091 11,421
138.5
670 334.0
12, 244 11, 691
135. 5
553 310.6
9, 285
102.8
322 203.2
9,607
9,203
287 183. 3
101.9
9,490
283 246.5
140.1
12, 836 12, 553
227 182. 5
132.9
14, 768 14, 541
'13,619 ' 13, 400 6 219 6 166. 7 6 119.9
11, 685
163 136.1
100.7
11,848
9,282
123 100.8
9,405
80.3
3,155
66
30.2
3,221
45.3
1, 176
46
1,222
31.7
14.5
759
30.2
11.4
50
()
1,002
15.7
127
67.3
132, 916 1, 129
3,103
63.7
371 204.6
112,638 3,474
4, 853
96, 101 5,250
397 234.6
93.9
85, 491 9,246
8,708
538 308.1
161.4
92, 925 9,162
8,746
151.2
416 248.3
83, 649 8,058
7,626
131.6
432 259.5
92, 819 7, 611
7,081
530 283.3
131.9
102, 545 8,862
8,075
167.5
787 394.2
117,164 11,1
211.4
10, 226
462.6
139, 651 10, 969 10,113
206.4
856 449.4
140, 775 12, 686 11,615
1,071 562.7
239.8
136,673 13, 739 12, 547
1,192 615.3
267.1
42.9
13, 363 1,048
20.5
971
77
12, 503 1,024
909
49.2
19.7
115
12, 822 1, 170 1,081
42.6
21.3
89
985
12, 475
41.9
18.8
905
80
13,142 1,164
1,051
59.9
21.2
113
11,952 1,105
1,020
43.0
85
21.5
11,513 1,018
963
20.4
55
48.7
11,339 1,101
982
119
55.0
18.7
9,583
932
859
73
39.3
18.0
1,051
11, 546 1,158
107
21.6
50.0
925
999
9,749
74
39.9
19.2
84
10, 788
982
19.0
50.3
54.1
1,022
126
21.0
13, 387 1,148
1,042
104
65.4
10,791 1,146
23.1
1, 225
111
12,049 1, 336
55.8
25.2
1,071
104
12,312 1,175
57.1
23.1
1,069
131
12, 220 1,200
52.6
21.5
988
96
11,269 1,084
51.5
20.7
11,686 1,059
974
85
44.3
19.7
11,361 1,145
1,070
75
43.5
23.4
20.9
10,526 1,071
984
87
45.4
11,251 1,122
1,032
90
47.4
22.3
9,270 1,173
1, 075
98
52.9
23.6
10,551 1,080
85
22.6
995
45.3

221.8
364.8
382.2
495. 7
6 242. 0
195.4
175.1
100.4
81.4
106.4
49.7
M6.8
35.4
20.5
15.1
17.1
18.8
51.6
140.9
140.7
146.7
97.1
128.0
151.4
226.6
251.2
243.0
322.9
348.2
22.4
29.5
21.4
23.1
38.7
21.5
28.3
36.3
21.3
28.4
20.6
31.3
33.0
42.3
30.6
34.0
31.0
30.8
24.6
20.2
24.5
25.1
29.3
22.7

i
* Excludes firms in the fields of agriculture and professional services. Includes self-employed person
only if he has either an established plane of business or at least one paid employee.
2
Annual data through 1939 are averages of end-of-quarter estimates centered at June 30. Beginning
1940, annual data are for January 1.
3 Total for period.
* Commercial and industrial failures only. Excludes failures of banks and railroads and, beginning 1933,
of 5
real estate, insurance, holding, and financial companies, steamship lines, travel agencies, etc.
Not available.
6
Series revised; not strictly comparable with earlier data.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Department of Commerce and Dun & Bradstreet, Inc.




187

AGRICULTURE
TABLE F-64.—Income of the farm population, 1929-57
Income from agricultural sources
Farm operators' income
Realized gross farm income
Cash reFarm
ceipts from
promarketings Gov- ducernment tion
pay- exTotal i Livements penses
stock
and Crops
products

Period

Income
from
all
Net farm
2
Income sources
Per
income
Total from
(incapita
Wages (innonclud- income
nf
Real- Total farm
agnfrom
ing
ing
ized
culnet
all
resi(innet
(extural change sources
dent
clud- clud- work- change sources
in
(dollars)
ing
in
net
ers invennet
tories)
tories)
change change
in
m
inven3
tories) tories)

Billions of dollars
1929

13.9

6.2

5.1

0

7.6

6.3

6.1

0.9

7.0

(4)

(4)

(4)

1930
1931 . .
1932
1933
1934

11.4

5.2
3.8

3.9
2.5

6.9
5.5

4.5
2.9

4 4

19

2.8
3.3

2.5
3.0

4.3
4.7

2.8
3.9

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

8.5

.8
.6
.5
.4
.5

(4)

20

4.3
3.3
2.0
2.6
2.9

5.1
4.0

28

0
0
0
0.1
.4

1935..
1936
1937
1938 . 1939

9.7

4.1

3.0

5.1

4.6

5.3

10 7
11.3
10.1
10.6

47

36

4.9
4.5
4.5

3.9
3.2
3.3

.6
3
3
.4
.8

1940
1941
1942
1943
1944

11.0
13.8
18.8
23 4
24.4

4.9
6.5
9.0

6.5

8.4

64
7.1

3.5

5 6

51

4 3

6.1
5.8
6.2

5.2
4.3
4.4

6.0
4.4
4.5

.6
6
.7
.7
.7

6.7
9.9

4.3
6.2
8.8

4.6
6.6
9.9

.7
.9
1.2

11 5
12 2

11.9
12.2

11 8
11.8

14
16

11 5
11.4

81
9.2

.7
5
.6
6
8

34.6
31 6

12 0
13.8
16.5
17.1
15 4

97
11.0
13.1
13.1
12 5

7
.8
.3
.3
2

12 9
14.3
16.8
18 6
17 9

12 8
15.0
17.2
15.9
13 7

12 4
14.9
15.5
17 7
12 9

1950
1951
1952
1953
1954

32 1
37.1
36 7
35.1
33.7

16 0
19.7
18 3
17.1
16.3

12 4
13.2
14 3
14.0
13 7

3
.3
3
.2
3

19 2
22.3
22 5
21.2
21 5

12 9
14.8
14.3
13.9
12.2

13 7
16.1
15 1
13.3
12 7

1955
1956
1957 «

33.2
34 4
34.8

15.9
16 2
17.2

13. 7
14 1
13.0

.2
6
1.0

21.6
22 3
22.9

11.6
12 1
11.9

11.9
11 6
11.6

1945
J946.
1947
1948.
1949

25.8
29.3

_ -_ 34.0
. .

46

7 7

1.5
1.8
1.9
2.0

18
1 7
1.9
1.9
1.8
1.8
1.7

18
1.8

25
3.0
3.4
5.9

50
6.8
5.1
5.2

(4)
(4)
(4)

1.9

5.3

165

2.0

7.9

244
228
296
239
249

23
2 5

73
93

2.3
2.5

7.4
7.7

5.3
7.5

2.7

11.1
13 2
13.4

3.8

31
4 2
4 4
4 2

14 0
16.7
17.4
19.7
14 7

4.3
4.9

15 5
18.0
17 0
15.1
14.4

61

13.6
13 4
13.5

5.1
5 2
53
5.6
6.0

5 8
6.3

6 7
6.3

10 6
14.9
17 4
17 8

262
349
509
654
696

18 2
21.0
22.3
24 8
19 9

720
793
822
958
765

20 8
23.6
23 1
21.1
20 2

828
977
953
930
925

19.9
20 1
19.8

898
902
970

8.0

Seasonally adjusted annual rates
1956

First quarter..
Second quarter
Third quarter.
Fourth quarter
1957
First quarter».
Second quarter'
Third quarter *
Fourth quarter^

33.7
34.2
34.4
35.2

(4)
(4)
(<)
(4)

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

22.0
22.3
22.3
22.6

11.7
11.9
12.1
12.6

11.4
11.5
11.5
12.0

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

34.7
35.2
34.9
34.4

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

22.7
23.0
22.8
22.9

12.0
12.2
12.1
11.5

11.5
11.7
11.8
11.5

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

(4)
(4)
(4)
(4)

1
Also includes nonmoney income furnished by farms (value of farm products consumed in farm households and gross rental value of farm dwellings), not shown separately.
2
Realized gross farm income less farm production expenses.
3
Data prior to 1952 differ from farm proprietors' income shown in Tables F-9 and F-12 because of revisions by the Department of Agriculture not yet incorporated into the national income accounts of the
Department of Commerce.
4
Not available.
5
Preliminary.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Agriculture.




188

TABLE F-65.—Farm population, employment, and productivity, 1929-57
Farm population »
Period

Number
(thousands)
(April
1)

Farm employment
Average
Net mi(thousands) *
gross
gration
hourly Manto and
earnhours
As per- from
ings of
of
cent of farms
hired
farm
total
(thoufarm
work
Family Hired
popula sands)8 Total workers workers workers
t i s
(dol
lars)

Crop production
Farm
output
per
manhour

Per
manhour

Per
acre

Index, 1947-49=100
1929

30,580

25.1

-477

12, 763

9,360

3,403

$0. 241

135

55

53

79

1930
1931
1932
1933
1934

30,529
30,845
31,388
32, 393
32, 305

24.8
24.9
25.1
25.8
25.6

-61
156
607
-463
-527

12,497
12, 745
12,816
12, 739
12, 627

9,307
9,642
9,922
9,874
9,765

3,190
3,103
2,894
2,865
2,862

.226
.172
.129
.115
.129

134
137
132
132
118

54
58
58
53
51

52
56
57
51
49

75
83
79
71
59

1935
1936
1937
1938
1939

32,161
31, 737
31, 266
30, 980
30,840

25.3
24.8
24.3
23.9
23.6

-799
-834
-661
-545
-703

12, 733
12, 331
11, 978
11,622
11, 338

9,855
9,350
9,054
8,815
8,611

2,878
2,981
2,924
2,807
2,727

.142
.152
.172
.166
.166

123
119
129
120
121

59
55
64
66
66

58
52
62
65
65

76
65
88
85
85

1940
1941
1942
1943
1944

30, 547
30, 273
29, 234
26, 681
25,495

23.1
-633
22.7 - 1 , 4 2 4
21.7 - 2 , 975
19.5 - 1 , 5 6 3
18.4
-564

10, 979
10,669
10, 504
10, 446
10, 219

8,300
8,017
7,949
8,010
7,988

2,679
2,652
2,555
2,436
2,231

.169
.206
.268
.353
.423

119
117
122
11
2
120

70
74
79
78
81

69
73
79
77
81

1945
1946
1947....
1948
1949

25, 295
26, 483
27,124
25,903
25, 954

18.1
151
18.7
18.8 - 1 , 6 8 6
17.7
-371
17.4 - 1 , 3 1 4

10,000
10, 295
10, 382
10,363
9,964

7,881
8,106
8,115
8,026
7,712

2,119
2,189
2,267
2,337
2,252

.472
.515
.547
.580
.559

112
108
103
100
97

86
91
92
104
104

86
92
91
105
104

95
101
95
106

1950
1951
1952
1953
1954

25, 058
24,160
24, 283
22, 679
21,890

16.5 - 1 , 3 0 2
15.7
-271
15.5 - 1 , 9 9 6
14.2 - 1 , 1 7 1
13.5
-91

9,342
8,985
8,669
8,580
8,451

7,252
6,997
6,748
6,645
6,521

2,090
1,988
1,921
1,935
1,930

.561
.625
.661
.672
.661

89
91
89
88
85

112
113
120
123
127

115
112
123
124
129

97
98
103
103
101

1955
1956
1957 6

22,158
22, 257
20,396

-256
13.4
13.2 8-2,236
11.9

8,237
7,869
7,634

6,341
6,018
5,796

1,896
1,851
1,838

.675
.705
.728

85
83
80

132
136
11
4

135
140
149

106
108
112

1
F a r m population as defined b y the D e p a r t m e n t of Agriculture a n d D e p a r t m e n t of Commerce, i. e.
civilian population living on farms, both urban a n d rural, regardless of occupation.
2
Total population as of July 1 including armed forces overseas.
3
N e t change for year beginning in April, estimated b y Department of Agriculture. For 1940 and subsequent years, includes inductions and enlistments into the armed forces, and persons returning from t h e
armed forces. For all years, includes persons who have n o t moved b u t who are in a n d out of the farm
population because agricultural operations have begun or have ceased on the place where they are living .
* Includes persons doing farm work on all farms. These data, published b y the Department of Agriculture, Agricultural Marketing Service, differ from those on agricultural employment by the D e p a r t m e n t
of Commerce, Bureau of the Census (see Table F-17) because of differences in the method of approach, in
concepts of employment, and in time of month for which the data are collected. For further explanation,
see monthly reports on Farm Labor b y the D e p a r t m e n t of Agriculture.
5
Weighted average of all farm wage rates on a per-hour basis.
6
Preliminary.
7
N o t available.

Sources: D e p a r t m e n t of Agriculture and Department of Commerce.




189

TABLE F-66.—Farm production indexes, 1929-57
[1947-49=100]
Livestock and products
Year

Crops

Farm
Hay
Poulouteat
To- Oilput 1 Total 2 Mani- Dairy try Total 3 Feed and Food Vege- Fruits Cot- bac- bearprod- and
grains for- grains tables and
ton co
ing
mals ucts eggs
nuts
age
crops

1929

74

77

77

82

63

79

83

88

66

81

76

104

75

21

1930
1931
1932
1933
1934

72
79
76
70
60

78
80
81
82
75

78
82
83
86
73

84
86
86
87
85

65
63
63
62
59

76
84
80
71
58

73
84
95
73
48

75
79
86
79
67

72
76
62
45
44

82
83
83
80
87

75
94
76
77
72

98
119
91
91
68

81
76
49
68
54

23
23
21
18
21

1935
1936
1937
1938
1939

72
65
82
79
80

72
77
76
79
85

66
74
71
77
87

86
87
86
89
90

59
63
63
65
69

76
64
88
83
82

80
53
87
84
83

96
74
87
98
93

53
52
72
75
61

88
83
89
89
88

91
72
95
85
98

75
87
133
84
83

65
58
78
69
94

34
27
30
36
47

1940
1941
1942
1943
1944

83
86
96
94
97

87
92
102
111
105

89
94
107
120
108

92
96
100
99
101

70
77
89
102
102

85
86
97
90
96

85
91
104
96
100

106
106
115
110
109

67
76
80
69
85

91
92
96
103
99

95
102
100
87
102

88
75
90
80
86

72
62
70
70
96

56
61
92
98
82

1945
1946
1947
1948
1949

96
98
95
104
101

104
101
100
97
103

103
101
100
97
103

103
102
101
98
101

106
99
98
96
106

93
98
93
106
101

97
105
81
116
103

113
104
103
100
97

89
92
108
103
89

101
110
98
103
99

93
110
104
96
100

63 98
61 114
83 105
104 98
113 97

88
85
91
109
100

1950
1951
1952
1953
1954

100
103
107
108
108

107
112
112
114
117

109
117
117
116
121

101
100
100
105
107

111
116
117
120
125

97
99
103
103
101

104
97
102
101
106

106
111
107
110
109

83
82
105
96
85

98
92
92
96
94

104 70 101
106 106 115
102 106 112
104 115 103
104 96 110

116
106
104
102
116

1955
1956
1957*.--

112
113
113

120
122
121

127
123
121

108
110
111

123
136
135

105
106
106

112 116
112 111
121 126

80
84
79

96
101
96

104 103
112 93
112 77

128
153
147

109
108
83

1 Farm output measures the annual volume of farm production available for eventual human use through
sales from farms or consumption in farm households. Total excludes production of feed for horses and mules.
2
Includes certain items not shown separately.
3
Includes production of feed for horses and mules and certain other items not shown separately.
4
Preliminary.
Source: Department of Agriculture.




T A B L E F—67.—Indexes of prices received and prices paid by farmers,

and parity ratio,

1929-57

[1910-14= 100]
Prices received by farmers

Crops

Prices paidLby
farmers

Livestock and products
CO

.
5

rodi

.
9

TJ
CJ
a

05

g

'I

ft

C3

s

Dai

I I
1 1
fei

M

o5 *-<

tock
luct:

bl
f

xn

Tot

All

£

g
05

Oil- bear

1

75
CO

All

ft
o

All
farm
products i

Cot ton

Period

1

All
items,
interest, Famtaxes, i y
l
and livwage ing
rates items
(parity
index)

Parity
Pro- raduc- tio 2
tion
items

1929

148

135

116

118 150 171

143

159

155

166

161

160

154

146

92

1930
1931
1932
1933
1934.

125
87
65
70
90

115
75
57
71
98

93
56
44
66
90

106
74
48
57
95

104
64
49
68
101

140
98
84
107
156

111
73
44
57
103

134
98
72
70
81

133
91
63
59
68

142
111
86
87
101

128
98
81
74
89

151
130
112
109
120

144
124
106
108
122

135
113
99
99
114

83
67
58
64
75

1935
1936
1937
1938
1939

109
114
122
97
95

103
108
118
80
82

97
108
120
75
72

107
103
125
71
72

98
99
94
70
74

171
163
200
173
152

127
120
129
95
96

114
119
126
112
107

115
118
130
113
110

114
125
131
115
110

116
115
111
110
96

124
124
131
124
123

124
124
128
122
120

122
122
132
122
121

SS
92
93
78
77

100
124
159
3 193
3 197

90
108
145
187
199

84
97
120
148
166

85
92
115
152
172

83
111
156
167
172

134
157
247
319
348

103
138
183
202
222

109
138
171
198
196

108 120
143 140
186 163
203 3 198
190 3 222

98
122
152
191
177

124
133
152
171
182

121
130
149
166
175

123 81
130 93
148 105
164 113
173 108

3 207
»236
276
287
250

202
228
263
255
224

172
201
271
250
218

167
202
256
258
177

179
238
274
272
246

360
376
374
380
398

228
260
363
351
242

211 3 207 3 229
242 3 248 3 268
288 329 273
315 361 301
272 311 252

198
201
223
242
221

190
208
240
260
251

182
202
237
251
243

176
191
224
250
238

1950
1951 .
1952
1953
1954

258
302
288
258
249

233
265
268
242
242

224
243
244
231
232

193
226
234
208
206

282
336
310
268
274

402
436
432
429
439

376
339
296
274
279

280
336
306
272
255

340
409
353
296
292

249
286
302
274
252

186
228
206
221
176

256
282
287
279
281

246
268
271
270
274

246 101
273 107
274 100
253 92
252 89

1955 . .
1956
1957

236
235
242

236
240
234

229
224
225

187 272 437
185 268 453
170 264 465

250
250
253

236
230
249

249
238
278

253
259
263

188
177
162

281
285
296

273
278
286

249
249
258

84
82
82

1956:
January...
February
March
April
May...
June . . .

227
227
229
234
240
245

232
233
237
242
249
261

221
221
223
229
226
219

172
173
174
185
192
192

259
262
268
275
270
273

452
452
453
453
454
453

236
239
245
253
265
259

221
221
221
227
232
231

208
217
222
238
250
251

260
256
250
246
247
245

206
188
187
181
178
172

280
280
281
284
286
286

272
272
274
274
278
280

246
245
246
248
250
248

81
81
81
82
84
86

July
August ...
September.
October
November.
December.

243
236
236
234
234
235

255
233
233
231
237
237

216
218
222
225
232
234

194
197
196
178
182
185

274
263
275
270
270
262

453
451
455
453
443
461

250
249
235
249
262
264

231
238
239
236
230
233

246
257
254
243
231
239

251
257
266
274
279
274

174
171
172
167
163
165

287
287
287
288
289
290

282
281
279
279
281
283

248
250
252
250
252
252

85
82
82
81
81
81

1957:
January
February...
March
April. .
May
June

238
234
238
242
243
244

238
234
237
242
244
241

236
235
235
233
225
218

187
181
181
180
179
173

256
255
252
258
266
270

457
458
459
459
457
457

266
260
265
264
263
260

238
234
238
242
241
245

254
249
263
275
278
287

270
266
260
253
248
247

155
157
150
150
144
145

292
294
295
296
296
296

283
284
284
285
286
287

255
256
258
260
259
257

82
80
81
82
82
82

July
247 239 218 170 273 460 261 254 297 252 155 295 287
August
248 233 217 169 278 469 252 260 301 260 167 295 287
September.
245 228 217 163 279 484 244 259 291 269 174 296 287
October
240 224 219 156 273 483 231 254 274 277 180 296 286
November. . 242 224 221 152 263 473 235 258 278 279 188 298 289
December
242 218 221 152 239 466 237 264 294 275 185 299 288
1 Includes items not shown separately.
2
Percentage ratio of index of prices received by farmers for all farm products to parity index.
3 Includes wartime subsidy payments.
Source: Department of Agriculture.

257
257
258
258
260
262

84
84
83
81
81
81

1940
1941
1942
1943
1944._

.

. _

1945 - .
1946
1947
1948
1949




109
113
115
110
100

TABLE F-68.—Comparative balance sheet of agriculture, 1940-58
[Billions of dollars]

Assets

Claims

Other physical assets
Beginning
of year

HouseMahold DeposReal
chinTotal estate
furery
its
U. S.
Live- and Crops i nish- and savings
stock motor
ings cur- bonds
and
vehiequip- rency
cles
ment2
33.6
34. 4
37.5
41.6
48.2

5.1
5.3
9.6
9.7

4.0
4.9
5.3

1945
1946
1947
1948
1949

93.1 53.9
101.9 61.0
113. 7 68.5
125. 0 73.7
131.9 76.6

9.0
9.7

6.3
5.2

11.9
13.3
14.4

1950
1951
1952
1953
1954._

130. 7 75.3
149. 5 86.8
165. 3 96.0
162.9 96.6
159.6 94.7

1955
1956
1957
1958 3

164.6 98.8
168.2 102.7
177.1 109. 5
188.3 118.0

1940
1941
1942
1943
1944

Financial assets

53.0
55.1
62.5
73.3
83.8

3.1

4.3
4.3
4.5
4.6
4.6

3.2
3.5
4.2
5.4
6.6

0.2
.4

4.7
4.8
5.3

7.9
9.4

3.4

10.2

6.9
9.3

6.7
6.3
7.1
9.0
8.6

6.9

9.9
9.6

12.9
17. 1
19. 5
14.8
11.7

11.2
12.8
14.9
15.4
15.9

7.6
7.9
8.8
9.0
9.2

7.7
8.6
9.3

11.2
10.7
11.2

16.0
16.5
17.3

9.6
8.3
8.4
(4)

o n

7.1

5. 1

(4)

(4)

2.7
3.0
3.8
5.1

6.1

6. 1

10.0
10.6
11.1
11.6
12.0
(4)

.5
1.1
2.2

4.1
4.1
44
4.6

ProReal
Invest- Total estate Other prietors'
ment
debt debt equiin coties
operatives
53.0
55.1
62.5
73.3
83.8

6.6
6.5
6.4
6.0
5.4

3.4
3.9
4.1
4.0
3.5

43.0
44.7
52.0
63.3
74.9

1.2 93.1
1.4 101.9
1.5 113.7

4.9
4.8
4.9

3.4
3.2
3.6
4.2
6.1

84.8
93.9
105.2
115. 7
120.5

6.9
7.0
7.9
8.8
9.4

118.2
136.4
150.7
146.8
142.4

9.5
9.8
9.6
9.3

146.8
149.3
157.6
168.4

0.8
.9
.9
1.0

1.1

1. 7 125.0
1.9 131.9

5.1

130.7
149.5
2. 5 165.3
2.7 162.9
2.9 159.6

5.6
6.1

164.6
168.2
177.1
188.3

8.3
9.1
9.9

9.1
9.1
9.4
9.4
9.4

4.8
4.9
4.9
5.0
5.2

2.1
2.3

9.4
9.5
9.5
(4)

5.4
5.6
5.7

3.1
3.3
3.5
(*)

0)

5.3

6. 7
7.3
7.8

10.6

1 Includes all crops held on farms for whatever purpose and crops held off farms as security for Commodity
Credit Corporation loans. The latter on January 1, 1957, totaled 1.6 billion dollars.
2 Estimated valuation for 1940, plus purchases minus depreciation since then.
3
Preliminary.
* Not available,
NOTE:—Detail will not necessarily add to totals because of rounding.
Source: Department of Agriculture.

TABLE F-69.- - Level-oj-living indicators for farm-operator families, selected years, 1920-56
Level-of-living index '
(U. S. average in 1945=100)
Year

Percentage of all families reporting:

United North- North South West Elec- 2 Tele- Auto- Running
tricity phones mobiles water
States east Central

1920
1930
1940
1945
1950
1954 4
1956

3

75
79
100
122
140
145

102
115
138
152
167
169

104
104
128
147
161
165

44
49
65
92
113
119

93
102
127
145
163
167

7
13
33
48
78
93
94

39
34
25
32
38
47
52

31
58
58
62
63
71
74

10
16
22
29
43
59
64

Mechan- Tele- Home
ical
refrig- vision freezers
erators

15
32
63
90

3
36
53

12
32
39

1 Indexes based on percent of farms with electricity, telephones, and automobiles and the average value
of products sold or traded in the year preceding the appropriate Census of Agriculture.
2 Differs in minor respects from series shown in Table F-70.
3
Gas or electric lights.
4
Based on Special Cooperative Survey of Farmers' Expenditures.
Source: Department of Agriculture.




192

T A B L E F—70.—Selected indicators of farming conditions, 1929—57

Period

Total investAverage ment in farm
plant and
Number value of
of farms production equipment
(millions of
(thou- assets per
dollars)
farm
sands)
(dollars) i
Gross Net a

Real estate
Foredebt as
closure
percent of rate per
value of
1,000
real estate farms 4
(percent)'

Operators' Farm innet income come per
per farm
worker
(dollars) « (dollars) «

Percent of
all farms
with
central
station
electrical
service 7

1929

6,512

(8)

966

50

20.3

14.8

962

593

(8)

1930
1931
1932
1933
1934

6,546
6,608
6,687
6,741
6,776

(8)
(8)
(8)
(8)
8

()

717
408
194
189
376

-238
-448
-540
-455
-274

20.1
21.5
24.5
27.5
23.9

15.7
18.7
28.4
38.8
28.0

691
437
288
410
571

456
298
203
266
360

(8)
(8)
(8)
(8)
(8)

1935
1936
1937
1938..
1939

6,814
6,739
6,636
6,527
6,441

(8)
(8)
(8)
(8)
(8)

560
756
903
685
774

-104
28
107
-148
-7

22.8
21.7
20.3
19.8
19.9

21.0
20.3
18.1
14.3
13.4

676
762
788
655
682

423
487
519
452
475

10.9
12.3
15.8
19.1
22.1

1940
1941
1942
1943
1944

6,350
6,293
6,202
6,089
6,003

6,094
6,340
7,449
8,934
10,328

872
1,199
1,202
918
1,488

76
325
-168
-485
25

19.6
18.9
17.0
14.3
11.2

12.5
10.4
6.1
4.3
3.0

675
978
1,423
1,950
2,035

484
694
995
1,331
1,411

30.4
34.9
38.3
40.3
42.2

1945.
1946
1947
1948
1949

5,967
5,927
5,873
5,804
5,723

11,346
12,435
14,132
15,868
17,106

1,533
2,035
3,229
4,259
4,534

193
811
1,613
2,199
2,104

9.2
7.8
7.2
6.9
6.9

1.9
1.5
1.1
1.0
1.2

2,154
2,531
2,927
2,747
2,389

,515
L, 704
[,926
1,829
L, 660

45.7
54.3
61.0
68.6
78.2

1950
1951
1952
1953
1954

5,648
5,535
5,421
5,308
5,201

16,962
20,453
23,451
23,225
23,000

4,538
5,038
4,659
4,659
4,295

1,795
1,796
1,255
1,120
650

7.4
7.3
7.1
7.7
8.3

1.4
1.5
1.6
1.3
1.7

2,276
2,674
2,630
2,615
2,344

1,671
L, 974
1,968
:1,943
1,764

77.2
84.2
88.1
90.8
92.3

1955
1956
1957 9

5,087
4,969
4,850

24,200
25,429
27,000

4,244
4,112
4,174

492
291
176

8.5
8.8
9.0

2.0
2.3
2.0

2,277
2,432
2,450

]L, 738
]1,888
L,920

93.4
94.2
95.0

' Farm real estate less value of dwellings, crops held for feed, livestock, machinery and equipment less 60
percent of the value of automobiles, and demand deposits used for production.
2
Gross investment less depreciation and other capital consumption.
3 Data are for January 1.
4
Data are for year ended March 15.
5 Including Government payments and excluding the net change in inventories.
8
Net income of farm operators including Government payments and excluding the net change in inventories, plus farm wages of resident workers and other hired workers.
7 Data are for June 30, except for the Census of Agriculture years: 1935 (January 1), 1940 (April 1), 1945
(January 1), and 1950 (April 1).
s Not available.
9
Preliminary.
Source: Department of Agriculture.




193

INTERNATIONAL TRANSACTIONS
TABLE F-71.—United States balance of payments, 1953-57
Excluding transfers of goods and services under military grant programs
[Millions of dollars]
First 3 quarters

Item

1954

1953

1955

1956
1956

United States payments: Total
Imports of goods and services: Total
Merchandise, adjusted, excluding
military
Transportation
Travel
Miscellaneous services, excluding
military
Military expenditures
Income on investments:
Private
Government
Unilateral transfers, net, excluding
military: Total
Government grants
Remittances and other transfers. _
United States capital, net: Total
Private, net: Total
Direct investments, net
New issues
Redemptions
Other long-term, net
Short-term, net
Government, net: Total
Long-term capital, outflow
Repayments
Short-term, net
United States receipts: Total
Exports of goods and services: Total..
Merchandise, adjusted, excluding
military
Transportation
Travel
Miscellaneous services
Military transactions
Income on investments:
Direct investments
Other private
Government
Foreign long-term investments in the
United States
Balance (net United States receipts):
Total
Increase in liquid dollar holdings
by foreign countries and international institutions
United States gold sales [purchases
(-)]
Errors and omissions

19, 685

19, 876

21, 944

25, 748

19,093

20, 480

16, 644

16, 088

17, 937

19, 810

14, 967

15, 533

10,990
1,081
929

10, 354
1,026
1,009

11, 527
1,204
1,153

12, 791
1,432
1,275

9,580
1,085
1,035

9,874
1,076
1,099

659
2,535

677
2,603

728
2,823

784
2,910

587
2,225

605
2,397

364
86

360
59

408
94

464
154

348
107

332
150

2,454
1,837
617

2,262
1,647
615

2,486
1,901
585

2,332
1,695
637

1,700
1,234
466

1,805
1,270
535

587

1,526

1,521

3,606

2,426

3,142

369

1,619

1,211

2,980

1.901

2,542

721
270
-139
-316
-167

664
309
-124
135
635

779
128
-190
303
191

1,839
457
-169
319
534

1,142
309
-115
309
256

1,698
438
-111
301
216

218

-93

310

626

525

600

716
-487
-11

306
-507
108

383
-416
343

534
-479
571

410
-307
422

402
-521
719

17, 287

18,193

20,349

24,060

17, 426

20,153

17,081

17,949

20, 003

23,518

16,997

19, 810

12, 281
1,198
574
926
192

12, 799
1,171
595
978
179

14, 280
1,420
654
1,001
204

17, 321
1,619
705
1,059
156

12, 462
1,183
543
777
120

14,664
1,464
599
828
151

1,442
216
252

1,725
230
272

1,912
258
274

2,160
304
194

1,537
220
155

1,680
264
160

206

244

346

542

429

343

-2,398

-1,683

- 1 , 595

-1,688

-1,667

-327

941

1,218

1,108

1,302

1,577

102

1,161

298

41

-306

-279

-700

296

167

446

692

369

925

Source: Department of Commerce.




1957

194

TABLE F—72.—United States balance of payments with individual areas, 1953—57
Excluding transfers of goods and services under military grant programs
[Millions of dollars]
First 3 quarters
Area and type of transaction

1953

1954

1956

1955

1956

Continental Western Europe and dependencies:
United States payments: Total-. .

1957

4,834

5,055

5,911

6,335

4,749

4,879

Nonmilitary imports of goods
Nonmilitary imports of services.._
Military expenditures
Remittance and other transfers...
Government grants and capital.._
Private capital, net outflow

2,083
860
1,047
218
736
-110

1,931
899
1,196
189
745
95

2,200
1,100
1,381
218
797
215

2,608
1,231
1,295
248
568
385

1,887
962
1,014
179
433
274

2,020
1,008
1,036
191
447
177

United States receipts: Total
_
Exports of goods
_ _ .
Income on investments abroad
Exports of other services
Foreign long-term investments in
the United States

3,465

3,946

4,786

5, 981

4,265

5,113

2,600
186
616

3,010
219
636

3,562
258
761

4,650
259
857

3,285
205
624

3,926
219
779

63

81

205

215

151

189

Balance (net United States receipts)..

-1,369

-1,109

-1,125

-354

-484

234

Sterling area:
United States payments: Total . .. .

3,273

3,174

3,556

4,317

3,325

3,433

1,708
716
289
94
421
45

1,526
753
417
97
164
217

1,801
804
465
96
310
80

2,000
907
568
97
293
452

1,492
699
439
73
264
358

1,632
717
537
80
287
180

2,623

2,939

3,435

3,710

2,634

3,113

1,614
407
546

1,740
481
583

2,146
563
632

2,348
534
648

1,647
368
471

2,084
357
539

Nonmilitary imports of goods
Nonmilitary imports of services...
Military expenditures .
Remittances and other transfers.._
Government grants and capital
Private capital, net outflow
United States receipts: Total
Exports of goods
Income on investments abroad
Exports of other services
Foreign long-term investments in
the United States
Balance (net United States receipts)..
Canada:
United States payments: Total
Nonmilitary imports of goods
Nonmilitary imports of services.._
Militarv expenditures
Remittances and other transfers. _
Government grants and capital...
Private capital, net outflow
United States receipts: Total
Exports of goods
Income on investments abroad
Exports of other services „ .
Foreign long-term investments in
the United States
Balance (net United States receipts) _.




56

135

94

180

148

133

-650

-235

-121

-607

-691

-320

3,546

3,493

3,763

4,743

3,458

3,707

2,435
526
192
11
5
377

2,364
487
194

2,678
556
217
15

2,913
597
259
12

2,139
478
185
9

2,179
490
218
10

4,132

2
443

Q

306

967

652

810

3,823

4,421

5,368

3,982

4,044

3,123
336
607

2,855
371
615

3,326
423
669

4,114
487
674

3,034
328
518

3,103
399
555

66

-18

3

93

102

— 13

586

330

658

625

524

337

195

TABLE F—72.—United States balance of payments with individual areas, 1953-57—Continued
Excluding transfers of goods and services under military grant programs
[Millions of dollars]
First 3 quarters

Area and type of transaction

1954

1953

1956

1955

1956

Latin America:
United States payments: TotaL
Nonmilitary imports of goods .
Nqnmilitary imports of services ..
Military expenditures
Remittances and other transfers .
Government grants and capital _
Private capital, net outflow
_

1957

4,621

4,823

4,840

5. 831

4,262

4,925

3.581
741
27
32
373
-133

3,445
739
24
38
76
501

3,470
812
21
40
119
378

3 775
985
27
40
178
826

2,922
724
21
30
150
415

2,918
729
28
37
167
1,046

United States receipts: Total
Exports of goods
..
Income on investments abroad.. _
Exports of other services
Foreign long-term investments in
the United States

4,396

4,711

4,802

5,615

4,083

4,872

3,045
611
726

3,323
645
711

3,282
745
753

3,830
918
834

2,789
661
620

3,396
760
699

14

32

22

33

13

17

Balance (net United States receipts) .

-225

-112

-38

-216

-179

-53

3,255

3,137

3,759

4,362

3,146

3,264

1, 180
231
980
262
429
173

1,088
216
772
284
510
267

1,378
278
739
216
915
233

1,495
342
761
240
1,162
362

1,140
257
566
175
824
184

1,125
260
578
216
911
174

2,596

2,677

2,808

3,290

2,386

2,935

1,892
357
348

1,842
497
334

1,937
440
421

2,354
445
482

1,683
339
357

2,134
357
437

7

7

-659

-460

-951

-1,072

-760

-329

156

194

115

160

153

271

"37"

47

"42"

""58

79
-1

125
-12

58
155

25
15
44

21
12
33

Other countries:
United States payments: Total
Nonmilitary imports of goods.- ..
Nqnmilitary imports of services _ .
Military expenditures
Remittances and other transfers.
Government grants and capital .. _
Private capital, net outflow
United States receipts: Total
Exports of goods
Income on investments abroad..
Exports of other services
Foreign long-term investments in
the United States
Balance (net United States receipts)-.
International institutions:
United States payments: Total
Nonmilitary imports of goods.,.. _
Nqnmilitary imports of services. .
Military expenditures
Remittances and other transfers..
Government grants and capital _ _
Private capital, net outflow

-1

91
17

10

United States receipts: Total.
Exports of goods
Income on investments abroad..-.
Exports of other services
Foreign long-term investments in
the United States

75

97

7
13
47

27
15
43

8

12

12

Balance (net United States receipts).

-81

-18

-64

Source: Department of Commerce.




196

76

10

-77

-195

TABLE F—73.—United States merchandise exports and imports for consumption, by leading
commodities, 1936-38 average and 1953-57
[In millions of dollars]

1936-38
average

Commodity 1

1953

1954

1955

1956

JanuarySeptember
1956

Exports of U. S. merchandise: Total.

2,925 15,652 14, 981 15,421 18,928 13,748 15, 674

2

Nonmilitary exports: Total
Exports, excluding "special category" commodities:
Total»

12,141 12,726 14,165 17,171 12,343 14, 575
11, 525 12,123 13, 509 16,476 11,827 13,987

Agricultural commodities: Total.
Raw cotton, excluding linters
Vegetable oils, fats, and oilseeds «.
Tobacco, unmanufactured
Wheat, including flour
Other grains and preparations
Other agricultural commodities- - Nonagricultural commodities: Total 5 .

1957

778

2,847

3,054

3,198

4,168

2,836

3,376

313
5
143
62
54
201

517
173
341
589
470
757

780
306
304
427
323
914

469
324
356
482
459
1,108

718
447
334
797
544
1,328

401
292
219
578
380
966

803
315
237
688
377
956

2,147

8,677

9,069 10,311 12,308 8,991 10, 611

440
292
129
87
199
344
56
114
486

2,747
963
800
640
495
498
335
176
2,023

2,595
1,036
983
621
516
431
304
305
2,278

Machinery s
Automobiles, parts, and accessories 5
Chemicals and related products 5
Textile manufactures
Iron and steel-mill products, including scrap.
Petroleum and products 5
Coal
Nonferrous metals, including ferroalloys
Other nonagricultural commodities 5

2,824
1,238
1,077
615
818
442
485
319
2,493

Agricultural commodities: Total-

2,432

2,461 10, 779 10,240 11,337 12, 516 9,329

Imports for consumption: Total

2,588
1,024
937
460
750
338
529
296
2,069

9,585

3,468
1,357
1,237
629
1,075
567
732
415
2,828

2,886
988
1,036
497
1,092
668
648
364

1,260

3,982

3,962

3,105

2,900

1,469
425
167
908
332
296
588

1,486
411
252
827
262
223
512

1,357
415
185
798
442
260
525

1,440
437
144
778
398
242
523

1,129
377
121
589
299
196
394

995
381
95
620
258
173
378

1,201

6,594

6,267

7,355

8,554

6,224

178
42
221
174
19
1
18
87
31
5
19
406

Nonagricultural commodities: Total..
Nonferrous metals and ferroalloys
Petroleum and products
Paper and paper-base stocks
Textile manufactures
Machinery
Automobiles, parts, and accessories
Sawmill products
Chemicals and related products
Fish, including shellfish
Iron ore
Iron and steel-mill products, excluding scrap_
Other nonagricultural commodities

3,973

141
152
35
323
179
57
373

Coffee
Cane sugar
Cocoa or cacoa beans
Other foodstuffs
Crude rubber
Wool, unmanufactured
Other agricultural commodities.

4,185

1,662
762
937
464
245
53
236
293
194
97
251
1,400

1,392
829
926
440
240
53
252
249
210
119
116
1,441

1,528
1,026
985
585
277
85
323
255
214
177
145
1,755

1,711
1,286
1,092
648
355
145
306
274
238
250
230
2,019

1,241
940
812
481
266
97
236
203
177
184
152
1,435

1,276
1,150
777
485
320
228
183
206
188
214
178
1,480

1 Commodity data for 1936-38 and 1953-56 have been adjusted to conform as nearly as possible to 1957
statistical classifications. The distributions of nonagricultural exports by principal commodities, however, are based on total exports in 1936-38 and on exports excluding "special category" items in 1953 and
later periods. (See footnote 3.)
2 Data represent total exports minus shipments of military equipment and supplies by the Department
of Defense under the Mutual Security Program. Commodity breakdowns of nonmilitary exports are not
available.
3 "Special category" commodities are those to which security restrictions applied in 1956 as regards publication of detailed export statistics.
* Data exclude essential oils.
s Data for 1953 and later periods exclude "special category" exports. (See footnote 3.)
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.




197

TABLE F—74.—U. S. Government grants and credits, excluding military supplies and services,
by areas, total postwar period andfiscalyears 1953-57
[Millions of dollars]

Item

Gross new grants:
Total postwar period 5 ...

Western
Europe
(includ- Easting
ern
Total
Greece Europe
and 1
Turkey )

Near
East,

Africa,
and
South
Asia 2

Vietnam,
Laos,
Other
CamAsia
bodia,
and
China,
and 3 Pacific
Korea

Latin
America *

3,540
74
43
44
70
97

460
25
34
54
77
95

1,065
35
41
59
57
106

Other
international
institutions
and unspecified

32,925
2,046
1,681
2,039
1,777
1,782

21, 312
1,461
1,003
1,059
630
469

1,070

Reverse grants and returns
on grants:
Total postwar period 5__
Fiscal year 1953
Fiscal year 1954
Fiscal year 1955
Fiscal year 1956
Fiscal year 1957

1,469
105
85
53
63
66

1,234
94
80
49
51
62

39

138
8
2
2
1
3

Net new grants:
Total postwar period 5_.
Fiscal year 1953
Fiscal year 1954
Fiscal year 1955
Fiscal year 1956
Fiscal year 1957

31, 456
1,941
1,597
1,986
1,714
1,717

20,077
1,367
923
1,010
579
406

1,031

1,353
134
275
278
314
270

3,962
309
268
531
613
733

3,508
73
42
44

460
25
34
54
77
95

1,065
35
41
59
57
106

New credits:
Total postwar period 5__
Fiscal year 1953
Fiscal year 1954
Fiscal year 1955
Fiscal year 1956
Fiscal year 1957

13, 023
635
624
444
475
431

8,942
257
167
112
89
47

123

905
107
57
89
112
90

264

1,076
35
117
81
145
125

1,485
228
276
158
87
152

228

Repayments:
Total postwar period «„
Fiscal year 1953
Fiscal year 1954
Fiscal year 1955
Fiscal year 1956
Fiscal year 1957

4,539
528
501
460
512
639

2,507
402
371
234
275
289

248
12
17
12
17
134

130
2
1
1
1
1

675
51
34
100
71
87

747
53
60
106
129
121

179
2
13
4
14
2

Net new credits: 6
Total postwar period 5 _.
Fiscalyear 1953
Fiscal year 1954
Fiscal year 1955
Fiscal year 1956
Fiscal year 1957

8,485
107
124
-16
-37
-208

6,435
-145
-204
-121
-186
-242

70
-4
-4
-5
-5

657
95
39
77
95
-43

134
-2
2
-1
42
16

402
-16
83
-19
74
37

738
175
216
52
-43
31

50
6
-5

Total net grants and credits:
Total postwar period 5__
Fiscal year 1953
Fiscal year 1954
Fiscal year 1955
Fiscal year 1956
Fiscal year 1957

39, 940
2,049
1,721
1,970
1,677
1,508

26,513
1,222
719
889
392
165

1,100
-4
10
5
-1
5

2,009
229
314
356
409
227

4,096
307
267
530
655
749

3,910
56
125
24
144
134

1,198
199
250
107
34
126

Fiscal
Fiscal
Fiscal
Fiscal
Fiscal

year
year
year
year
year

1953
1954
1955
1956
1957

1,490
142
277
281
316
273

310
270
532
623
733

')
-14
-2

1,115
40
36
59
44
104

1
Includes European Coal and Steel Community, European Payments Union, European Productivity
Agency, and Organization for European Economic Cooperation.
2
Includes United States contribution to United Nations for Palestine Relief.
3 Includes United States contribution to United Nations Korean Reconstruction and Relief Administration.
* Includes United States contribution to Organization of American States.
5
Postwar period covers July 1, 1945 through June 30, 1957. Excludes United States subscriptions to
International Bank for Reconstruction and Development and International Monetary Fund.
6
Does not include $2,257 million prior grants converted into credits in the postwar period (Western
Europe $1,970 million, Eastern Europe $222 million, Near East and Africa $11 million, China $50 million,
and Latin America $3 million), Western Europe $1,000 million in fiscal year 1954, and Latin America $1
million in fiscal year 1957.
7
Less than $500,000.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.




198

TABLE F—75.—U. S. Government grants of military supplies and services, by areas,
total postwar period andfiscalyears 1953—57
[Fiscal years, millions of dollars]
Total
postwar

Area

1953

1954

1955

1956

20,312

4,320

3,506

2,540

3,027

255

62

9

10

14

11

20, 057

4,258

3,497

2,531

3,013

2,365

Western Europe (excluding Greece and Turkey) 2 . 12,025
Near East (including Greece, Turkey, and Africa). 2,666
Other Asia and Pacific
4,832
334
American Republics
Unspecified
199

3,120
314
768
21
35

2,326
381
725
45
21

1,582
289
596
43
20

1, 834
387
732
38
21

1,243
393
633
72
25

1957

period1

Gross military grants 3
Less: Reverse grants and returns
Equals: Net military grants 2

2,376

1
2

Postwar period covers July 1, 1945 through June 30, 1957.
Includes cash contributions to the multilateral-construction program of the North Atlantic Treaty
Organization.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.

TABLE F—76.—Estimated gold reserves and dollar holdings of foreign countries and
international institutions, 1937 and 1949-57
[Billions of dollars]

Sterling area
End of
year

Total

Total

United
Kingdom

Continental
OEEC
All
Latin
Other
countries European Canada American
other
Republics countries
and
countries
dependencies

International
institutions

1937

15.1

4.9

4.4

6.8

1.0

0.4

1.0

1949

19.0

2.8

2.0

6.1

.6

1.5

3.1

1.7

3.3

1950
1951
1952
1953
1954

23.2
23.3
24.7
27.3
29.6

4.6
3.9
3.5
4.3
4.4

3.7
2.9
2.5
3.2
3.4

7.0
7.2
8.5
10.1
11.6

.5
.5
.5
.6
.6

2.1
2.3
2.6
2.5
2.7

3.5
3.4
3.4
3.7
3.8

2.2
2.5
2.7
2.5
2.6

3.3
3.4
3.5
3.6
3.9

1955
1956
1957 1

31.5
32.9
32.5

4.0
4.2
3.9

2.9
3.1
2.7

13.2
14.1
14.4

.7
.6
.6

2.6
3.0
3.2

4.0
4.3
4.7

3.0
3.1
2.8

4.0
3.5
2.9

1.0

1 As of September 30.
NOTE.—Includes gold reserves and dollar holdings of all foreign countries with the exception of U. S. S. R.
gold reserves, and of international institutions (International Bank for Reconstruction and Development,
International Monetary Fund, United Nations, and others). Holdings of the Bank for International
Settlements (both for its own and E P U accounts) and of the Tripartite Commission for Restitution cf
Monetary Gold are included with the holdings of continental OEEC countries and dependencies. Figures
represent (1) reported and estimated gold reserves of central banks and governments, (2) official and
private short-term dollar holdings reported by banks in the United States, including foreign-held deposits,
U. S. Government securities, and certain other short-term liabilities to foreigners, and (3) estimated holdings of U. S. Government bonds and notes with original maturities of more than one year. Figures for
1937 are not strictly comparable with those for subsequent years owing to exclusion of long-term U. S. Government bonds and notes.
Source: Board of Governors of the Federal Reserve System.




199











Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102