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Economic Report

or the President







Economic Report
of the President
TRANSMITTED TO THE CONGRESS




JANUARY 20, 1959

UNITED STATES -GOVERNMENT PRINTING OFFICE
WASHINGTON : 1959

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, 75 cents.

LETTER OF TRANSMITTAL
THE WHITE HOUSE,
January 20, 1959.
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 had the advice and assistance of the
Council of Economic Advisers. I have also had the advice of the heads of
executive departments and independent agencies of the Government. I set
forth below, largely in the language of the Report itself, what I consider to
be its salient conclusions and recommendations.
Economic Recovery in 1958
When the Economic Report was submitted to the Congress in January
1958, a contraction in production and employment that had started some
six months earlier was still under way. The decline proved to be sharper
than the 1953-54 recession, but it did not last as long. A recovery began
in May 1958, and by the end of the year most of the ground lost had been
regained. Gross national product, our broadest measure of the Nation's
output of goods and services, was at an annual rate of $453 billion in the
fourth quarter of the year. In dollars of constant purchasing power, this
was almost equal to the highest output attained in the pre-recession period.
Nearly a million more people were at work in December 1958 than in July,
after allowance for seasonal changes. Although the number of persons unemployed was above 4 million in December, it was 1 million below the highest
unemployment figure reached during the recession. Wage and salary income
and consumer spending were at an all-time high, and the index of consumer
prices had been virtually stable for six months, although about 2 percent
higher than a year earlier.
Economic Policies in 1957-58
The events of the last 18 months show again the considerable capacity
of our economy to resist contractive influences and to hold a downturn
within fairly narrow limits.
Many factors contribute to this capacity. Chief among them are the
industry and resourcefulness of our people, the strength and resiliency of our
free competitive institutions, and the continuing operation in the American
economy of powerful forces making for long-term growth.
Also of importance are features of our economic system that moderate
the impact of contractive influences on personal income, and thus help to




in

maintain demand. Increasingly, our people work in industries and occupations that are not readily affected by moderate economic declines. And
such reductions in income as do result from lower production and employment are offset, to a considerable extent, by supplementary payments, notably by those made under the Federal-State system of unemployment
insurance.
Governmental actions also played an important role in moderating the
recession and helping to bring about a prompt and sound recovery. Monetary and credit policies were employed vigorously to assure ample supplies
of credit. Legislation was enacted to lengthen temporarily the period of
entitlement to unemployment benefits. Numerous actions were taken to
spur building activity. Steps were taken to accelerate Federal construction
projects already under way and to speed up projects supported by Federal
financial assistance. Activities under a number of Federal credit programs,
in addition to those in the housing field, helped counter the recession. And
the acceleration of defense procurement, which was being undertaken in
line with national security policy, exerted an expansive effect.
The 1957-58 recession shows that the major emphasis of Federal policies
to counteract an economic downturn should be placed on measures that
will act promptly to help shift the balance of economic forces from contraction to recovery and growth. Though an effective contribution can be
made by the acceleration of public construction projects already under way,
little reliance can be placed on large undertakings which, however useful
they may be in the longer term, can be put into operation only after an
extended interval.
The 1957—58 experience is also a reminder that there is no simple prescription for corrective action which can be applied with only minor variations in every business downturn. It emphasizes the importance, in a
situation in which powerful corrective forces are at work, of avoiding hasty
and disproportionate actions, such as tax reductions that needlessly endanger
the prospects of future fiscal balance and prejudice the orderly revision of
the tax structure.
As production, employment, and income moved upward in 1958, the
economic policies of Government became increasingly concerned with keeping the recovery on a sound basis and promoting a sustainable long-term
expansion. Monetary and credit policy was shifted with a view to limiting
the expansion of bank credit to a sustainable pace. The large financing operations of the United States Treasury are being conducted with a view to
enhancing the basic stability of our financial system and promoting sound
economic growth. And the fiscal operations of Government are moving in
the direction of restoring a balance between outlays and incomes and thereby
countering potential inflationary tendencies.
The Economic Outlook
As 1959 opens, there is reason for confidence that the improvement
in business activity which began in the second quarter of last year will




rv

be extended into the months ahead. Factors that influence decisions
on business capital outlays have become more favorable, and an upturn
in these expenditures may already be under way. Residential construction
outlays should contribute further to economic expansion, especially if favorable action is taken by the Congress on recommendations made in the
Report to provide a steadier and more assured flow of private funds into
mortgages. Sales of United States products in foreign markets may increase
as the pace of business activity abroad quickens and the trade position of
primafy producing countries is improved. The combined outlays of Federal, State, and local government units will continue to rise. Under the
impact of these developments, the liquidation of inventories should soon
come to an end; indeed, the gap between current sales and stepped-up
production schedules may already have been closed. The effect of these
favorable factors on employment and income can be expected to enlarge
the markets for consumer goods and thereby to reinforce the conditions
making for over-all economic expansion.
A Program for Economic Growth with Stable Prices
Our objective must be to establish a firm foundation for extending economic growth with stable prices into the months and years ahead. This will
not come about automatically. To attain our goal, we must safeguard and
improve the institutions of our free competitive economy. These are basic
to America's unassailable economic strength. We must wage a relentless
battle against impediments to the fullest and most effective use of our
human and technological resources. We must provide incentives for the
enlargement and improvement of the facilities that supplement human
effort and make it increasingly productive. Finally, an indispensable condition for achieving vigorous and continuing economic growth is firm confidence that the value of the dollar will be reasonably stable in the years
ahead.
Action to meet these challenges is required on many fronts, by all groups in
our society and by all units of government.
The individual consumer can play an important part by shopping carefully for price and quality. In this way the American housekeeper can be
a powerful force in holding down the cost of living and strengthening the
principle that good values and good prices make good business.
Businessmen must redouble their efforts. They must wage a ceaseless
war against costs. Production must be on the most economical basis possible. The importance of wide and growing markets must be borne in mind
in setting prices. Expanding markets, in themselves, promise economies
that help keep costs and prices in check.
Leaders of labor unions have a particularly critical role to play, in view
of the great power lodged in their hands. Their economic actions must
reflect awareness that the only road to greater material well-being for the
Nation lies in the fullest realization of our productivity potential and that
stability of prices is an essential condition of sustainable economic growth.




The terms of agreements reached between labor and management in
wage and related matters will have a critical bearing on our success in
attaining a high level of economic growth with stable prices. It is not
the function of Government in our society to establish the terms of these
contracts, but it must be recognized that the public has a vital interest in
them. Increases in money wages and other compensation not justified
by the productivity performance of the economy are inevitably inflationary.
They impose severe hardships on those whose incomes are not enlarged.
They jeopardize the capacity of the economy to create jobs for the expanding labor force. They endanger present jobs by limiting markets at home
and impairing our capacity to compete in markets abroad. In short, they
are, in the end, self-defeating.
Self-discipline and restraint are essential if reasonable stability of prices
is to be reached within the framework of the free competitive institutions
on which we rely heavily for the improvement of our material welfare. If
the desired results cannot be achieved under our arrangements for determining wages and prices, the alternatives are either inflation, which would
damage our economy and work hardships on millions of Americans, or controls, which are alien to our traditional way of life and which would be an
obstacle to the Nation's economic growth and improvement.
The chief way for Government to discharge its responsibility in helping
to achieve economic growth with price stability is through the prudent
conduct of its own financial affairs. The budget submitted to the Congress for the fiscal year 1960, which balances expenditures with receipts
at a level of $77 billion, seeks to fulfill this responsibility. If Government spending is held within the limits set in the proposed budget, the
growth of our economy at the rate that may be expected would make it
possible in the reasonably foreseeable future to provide, through a significant further step in tax reform and reduction, added incentives and means
for vigorous economic growth and improvement.
Governmental actions in other areas can also help to maintain price stability as our economy expands. The Congress will be requested to amend
the Employment Act of 1946 to make reasonable price stability an explicit
goal of Federal economic policy, coordinate with the goals of maximum
production, employment, and purchasing power now specified in that Act.
Steps will be taken within the Executive Branch to assure that governmental
programs and activities are administered in line with the objective of
reasonable price stability, and programs for the enlargement and improvement of public information on prices, wages and related costs, and productivity will be accelerated.
The many continuing programs of Government that promote the expansion and improvement of our economy will be administered vigorously.
Also, new legislation will be requested to strengthen competitive forces, to
enhance personal welfare, to promote integrity in labor-management relationships and to foster better industrial relations, to assist local areas




VI

experiencing heavy and persistent unemployment, to make more effective
use of the large Federal expenditures relating to agricultural price support,
to promote conditions favorable to trade among nations, and to assist in
the economic growth and development of the Free World.
Favorable consideration of these legislative proposals by the Congress
will materially help to achieve the goals of vigorous, orderly, and sustainable economic progress within a framework of reasonable price stability.
All of our people, in view of their broad common interest in promoting
the Nation's economic strength, can fully support this program.




DWIGHT D. EISENHOWER.

VII




CONTENTS
Page

CHAPTER 1. The Lessons of Recession and Recovery in 1957-58. . .
The Economy's Capacity To Resist Recession
Policy Implications of Differences Among Economic Cycles....
Achieving Vigorous and Sustainable Economic Growth
CHAPTER 2. Economic Developments in 1958 and Outlook for 1959 .
Extent of the Decline
Major Factors in the Decline
Resistance to Contraction
Prices and Costs
Resumption of Economic Expansion
Developments in World Production and Trade
Outlook for 1959
CHAPTER 3. Economic Policies in 1958
Policies During the Contraction

1
1
3
4
7
7
10
14
17
20
27
30
33
33

Money and Credit
Housing and Home Financing
Unemployment Insurance Benefits
Defense Procurement
Civil Procurement and Construction
Acceleration of Grants-in-Aid and Tax Refunds
Federal-Aid Highway Program
Federal Credit Programs
Federal Fiscal Operations
Policies After the Upturn
CHAPTER 4. A Program for Economic Growth With Price Stability.
A Balanced 1960 Budget
Other Governmental Financial Policies
Additional Governmental Actions To Maintain Price Stability.
Additional Measures for Economic Growth
Competition
Small Business
Personal Welfare
Area Assistance
Agriculture
Foreign Economic Policy

33
37
40
40
41
41
42
42
42
44
48
49
51
52
53
53
54
55
56
56
57




IX

CHAPTER 4—Continued
Continuing Programs for Economic Growth and Improvement.
Education
Personal Security and Health
Construction and Transportation
Water Projects and Mineral Exploration
Research and Development

Page
59
60
60
61
62
63

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 1958
C. Some Major Economic Developments in 1958
I. Employment and Earnings
II. Prices
III. Agriculture
IV. Financial Developments
V. Government Finances
VI. United States Foreign Trade and Payments
D. Statistical Tables

65
71
79
81
91
98
106
114
122
133

LIST OF TABLES AND CHARTS
(Chapters 2 and 3 and Appendix C)
Tables
1. Duration and Extent of Declines in Selected Economic Indicators.
2. Changes in Income ahd Consumption in Recessions
3. Obligations and Payments on Federal-Aid Highway Programs,
1957-58
'....."
4. Federal Budget Receipts and Expenditures, Fiscal Years 1957-60.
C-l. Changes in Nonagricultural Employment Since December
1956
C-2. Civilian Employment, by Major Occupational Group, 1947,
1957, and 1958
C-3. Insured Unemployment Under State and Federal Employee
Programs, April 1957 and April 1958
C—4. Index of Average Hourly Earnings, Adjusted for Overtime
and Inter-Industry Employment Shifts, Selected Periods,
1948-58
C-5. Distribution of Employees Receiving Wage Increases Under
Major Labor Agreements, 1956-58
C—6. Changes in Wholesale Price Indexes Since June 1955




7
16
42
43

82
83
86

88
89
95

Tables

C-7.
G-8.
C-9.
C-10.
C-ll.
C-12.
C-13.
C—14.
C-15.
C-l 6.
C-l 7.
C-l8.
C-l 9.

C-20.
C-21.
C-22.
C-23.
C-24.
C-25.
C-26.

Page

Changes in Consumer Price Indexes Since July 1957
Price Changes in the United States and Selected Other Industrial Nations, 1953 to 1957
Number of Farms and Average Income of Farm Families,
1947 and 1952-56
Meat and Poultry: Prices, Receipts, Production, and Consumption, 1952-58
Net Budget Expenditures for Agricultural Programs, Fiscal
Years 1953-60
Wheat: Production, Utilization, and Carryover, 1952-58..
Feed Grains: Production, Utilization, and Carryover,
1952-58
Changes in Short- and Intermediate-Term Consumer Credit
Outstanding, 1955-58
Net Changes in Commercial Bank Holdings of Loans and
Investments, 1955-58
Net Changes in Ownership of the Publicly Held Federal Debt
During 1958
Flow of Funds for Selected Nonbank Financial Institutions,
1955-58
Federal Budget Expenditures, 1957-60
Relation Between the Federal Budget Surplus or Deficit,
Receipts from and Payments to the Public, and Change
in the Public Debt, 1953-59
Consolidated Cash Statements of Federal and State and
Local Governments, 1953-58
Government Receipts and Expenditures as Shown in the
National Income Accounts, 1957-58
United States Balance of Payments, Selected Periods,
1952-58
Exports of the United States and Other Countries, 1956-58 . .
Change in United States Exports, 1956 to 1958
Change in United States Imports, 1956 to 1958
Use of Gold and Dollars for International Settlements,
Selected Periods, 1952-58

96
97
99
101
103
103
104
107
110
110
Ill
114

117
119
120
122
123
124
126
130

Charts

1.
2.
3.
4.
5.
6.

Changes in Major Sectors of the Nation's Output, Third Quarter
1957 to First Quarter 1958
Changes in Major Sectors of the Nation's Output, First Quarter
1958 to Fourth Quarter 1958
Manufacturing Capacity, Production, and Prices
Consumer Prices on a Prewar Base
Consumer Prices on a Recent Base
Wholesale Commodity Prices




XI

8
9
11
17
18
19

Charts

Page

7.
8.
9.
10.
11.
12.
13.
14.
15.
16.

Employment in Nonagricultural Establishments
Employment, Hours, and Earnings in Manufacturing
Employment, Production, and Income
Foreign Industrial Production
World Trade
Interest Rates and Bond Yields
Member Bank Reserves
Money Supply
Housing Starts and Requests for Federal Underwriting
Federal Government Receipts and Expenditures, National Income Accounts
17. Stock Prices and Credit




XII

21
23
24
28
29
34
35
37
39
43
45

Chapter 1

The Lessons of Recession and Recovery in 1957-58
TTTTHEN THE ECONOMIC REPORT was submitted to the Congress
* * in January 1958, the American economy was in a recession that had
started about six months earlier. The decline was still moderate, but it
was gaining momentum and spreading to additional areas of the economy.
The Economic Report gave an account of the recession as it had developed
to the turn of the year, and expressed the view that the underlying strength
and regenerative powers of our free competitive system, supported by
appropriate private and public policies, might be expected to bring the
decline to an end soon and to restore the economy to an upward path. The
recession did, in fact, halt in April 1958. By May, a recovery was under
way; and before many months had passed, most of the ground lost during
the decline had been regained. As 1958 ended, we were moving toward
new high levels of production and employment.
The present Economic Report therefore reviews the greater part of a
full economic cycle. Chapter 2 describes the extent of the contraction
and how it started, what helped to keep it within narrow limits, how
recovery began and developed, and what the economic situation was at the
end of the year. Chapter 3 summarizes the Government actions that helped
to shorten the decline, to reduce the severity of its impact, and to promote
a sound recovery. And Chapter 4 proposes a program for promoting
economic growth on a sustainable, inflation-free basis.
These major divisions of the Report are-presented in fulfillment of the
explicit requirements of the Employment Act of 1946. But it is useful also
to consider what broad lessons may be learned from the events of the past
year and a half as guides for the future. What do these events tell us
about how our economy responds to contractive influences, about the role
that Government can usefully play in seeking to moderate economic fluctuations, and about the problems that Americans must face in the years ahead
in striving to achieve high and sustainable rates of economic growth,
unmarred by inflation? These questions are treated in the present chapter.
THE ECONOMY'S CAPACITY TO RESIST RECESSION
In many respects, the most important lesson taught by the recent recession
is that a competitive economic system has remarkable power to resist contractive pressures and, without an extended interruption of growth, to stage




a good recovery. The inherent features of our economy that make this
possible—its strength and resiliency—are due mainly to our free competitive
institutions, to the stability of our institutions of saving, banking, and finance,
and to the character of our people, notably their industry and resourcefulness
and their capacity to take a confident and balanced view of the Nation's
economic prospects. Other sources of strength are due to certain long-term,
structural changes in our economy—which have resulted in growing percentages of American workers being employed in industries and occupations
not readily affected by an economic downturn—and to certain changes in
business practices, notably long-term planning for the enlargement of
operations.
Our economy is also aided in resisting recession by features that tend to
moderate the impact of a decline in economic activity on the flow of income
to individuals and thus on the volume of spending for consumption. The
most important of these is the Federal-State unemployment insurance system,
under which payments are made to individuals out of work. In addition,
our system of graduated personal income taxes cushions the impact of an
over-all decline in income on the amounts available for spending on consumer
goods and for savings.
These features of our economy, which were clearly evident in the 1957-58
recession, have certain implications for public policy that are worthy of
special note. First, the capacity of our economy to withstand contractive
influences provides time for regenerative processes to make the adjustments
needed for sound recovery, and for the counteractive measures taken by
Government, jointly with factors making for long-term growth, to make
their effects felt. Where necessary, efforts should be made to strengthen
these features of our economic system.
Second, the major emphasis of Federal countercyclical policy should be
placed on measures that will result in prompt action to help promote a shift
in the balance of economic forces from contraction to recovery and growth.
Though a useful contribution can be made by the acceleration of public
works projects that are already under way or are ready to be started, little
reliance can be placed on large undertakings which, however useful they
may be in the longer term, can be put into operation only after an extended
interval of planning. By the time they are fully under way, they may exert
excessive demand on an economy that has already recovered.
Third, in contrast to large-scale public works, monetary and credit policy,
used vigorously, can produce prompt and significantly helpful results.
Although the easing of credit does not affect all parts of the economy to the
same degree, it works broadly, is promptly reversible, and makes its impact
felt without entailing direct governmental intervention in the affairs of
business concerns and individuals.
Finally, the capacity to resist short-term fluctuations can be increased by
Government actions to strengthen the factors that make for long-term
economic growth—vigorously competitive markets, research and develop-




ment activity, and heightened incentives for all Americans to work, save,
and invest. It is on these factors that we depend most heavily for the thrust
that lifts the economy from recession to recovery and for the stimulus to
continuing economic expansion and improvement.
POLICY IMPLICATIONS OF DIFFERENCES AMONG ECONOMIC CYCLES
Although all economic cycles have certain common characteristics, each
is unique in character and follows a course that varies in significant respects
from its predecessors. These distinctive characteristics must be taken into
account when governmental policies intended to help reverse a recessionary
trend are formulated.
The need to do this was especially evident in the 1957—58 recession. It
had been preceded by a major expansion in productive capacity without
a corresponding increase in utilization, so that when the downturn began
there was ample, if not temporarily excess, capacity in a number of important
industries. In contrast, the expansion of capacity prior to the 1953 downturn had been matched by a roughly equivalent increase in production.
Similarly, the American consumers' requirements for a broad range of goods
were more nearly satisfied when business activity turned down in 1957 than
they had been when activity began to recede in 1953. Sales of automobiles
reached an exceptionally high level in 1955, aided by a sharp easing of
instalment credit terms. In 1953-54, production of Western European
nations was expanding rapidly, world commodity prices were relatively
stable, and international trade was continuing to rise. In 1957-58, on
the other hand, industrial activity in Western Europe tended to level off,
commodity prices weakened, and international trade turned downward for
the time being.
These differences naturally affected the character and extent of the recent
decline. Business expenditures for new plant and equipment, which had
fallen only 11 percent in 1953-55, dropped 22 percent in 1957-58. Total
consumer expenditures were virtually stable in both periods; but in the nine
months following the 1957 peak, automobile production fell 47 percent,
compared with an 11 percent decline following the economic downturn in
1953. Merchandise exports, which had increased 18 percent in 1953-54,
fell by about that amount in the 1957-58 recession.
But from the viewpoint of public policy, the most significant difference
between the two periods was in Federal fiscal operations. In the three
quarters following the 1957 peak of activity, Federal purchases of goods
and services increased $1 billion, measured on an annual rate basis; in
the comparable period of 1953-54, they fell $6 billion, largely as a result
of the termination of the Korean conflict. This critical difference was
accentuated by the fact that, although State and local government purchases
of goods and services were rising in both recessions, they rose more in 1957-58
than in 1953-54. It was clear in January 1958 that even without a general
tax reduction the fiscal operations of the Federal Government would have




a significantly more expansive effect on the economy than they had had
during the 1953-54 recession, notwithstanding the tax cut of $7.5 billion
in early 1954. As it turned out, the economy received an even larger
stimulus from Federal fiscal operations in the fiscal year 1958 than had been
expected at first. And this effect has been intensified in the fiscal year 1959.
These facts are a reminder that there is no single prescription for corrective
action which can be applied with only minor variations in every cyclical
episode. They emphasize the importance, in a situation in which powerful
corrective forces are already at work, of avoiding hasty and disproportionate
actions, such as tax reductions that needlessly endanger the prospects of
future fiscal balance and prejudice the orderly revision of the tax structure.
Clearly, the distinctive features of a downturn are pertinent not only to an
appraisal of the probable course of business activity as contraction develops
but also to the design of measures to help stem the downturn and promote
recovery.
ACHIEVING VIGOROUS AND SUSTAINABLE ECONOMIC GROWTH
We may justifiably take satisfaction in the increases already achieved in
employment, production, and incomes and in the. fact that the price level has
been reasonably steady of late.
Our objective now must be to establish a firm foundation for extending
this economic advance and price stability into the months and years ahead.
But this will not come about automatically. On that point, history is clear.
Action is required on many fronts, by all groups in our society, and by all
units of government.
First, we must zealously safeguard and improve the institutions of our
free and competitive economy. America's unassailable economic strength
derives in no small measure from the fact that over the years there have
been incentives and freedom to do new things and to challenge old and
established ways. Our strength comes in large part from the pressures which
this competition entails, pleasures to shelter groups from these pressures
and from the need to make the readjustments that they compel come at the
cost of limiting our capacity to grow.
Second, a high rate of growth in our economy requires that we wage a
relentless battle against impediments to the full and most effective use of
our human and technological resources. Such impediments curb the productivity of our work force and increase production costs. They raise the
prices of the things we buy and limit the success of our efforts to lift levels
of living.
Third, if we are to achieve a rapid rate of economic growth and improvement in the years ahead, we must continue to enlarge and improve the plant
and equipment that supplement human effort and make it increasingly
productive. There must be strong incentives for businesses to commit ever
larger sums for expanding their operations and reducing their costs. And
there must also be incentives for the thrift essential to the financing of these




critically important outlays. Policies that weaken these incentives will cause
us to fall short of achieving our full potential for expansion.
Finally, an indispensable condition for achieving vigorous and continuing economic growth is firm confidence that the value of the dollar
will be reasonably stable in the years ahead. In recent months, prices
generally have moved within a narrow range, and some of the price increases
early in the year were the result of temporary conditions, such as the effect of
adverse weather on food supplies. But these facts provide no basis for complacency regarding the long-term problem of maintaining reasonably stable
prices. Despite recession during the first part of the year, wage rates
continued to move upward. The rate of increase was nearly as great
as in periods of economic expansion, and higher than the rate at which
gains in productivity have been achieved in our economy over extended
periods of time. Obviously, if we have only limited success in restraining
increases in unit costs during recession, much remains to be done to achieve
a basis for holding prices reasonably steady when productive capacity is
more fully utilized. To this challenge everyone must respond.
The individual consumer can play an important part by shopping carefully
for price and quality. In this way, the American housekeeper can be a
powerful force for holding down the cost of living and strengthening the
principle that good values and good prices make good business.
Businessmen must redouble their efforts. They must wage a ceaseless
war against costs. Production must be on the most economical basis possible. The importance of wide and growing markets must be borne in mind
in setting prices. Expanded markets, in themselves, promise economies that
help keep costs and prices in check.
Leaders of labor unions, in view of the great power lodged in their hands,
have a particularly critical role to play. Their economic actions must reflect
awareness that stability of prices is an essential condition of sustainable
economic growth and that the only road to greater material well-being for
the Nation lies in the fullest possible realization of our productivity potential.
This requires not only that our resources be fully employed, but that
arbitrary restraints on their most effective utilization be removed. We
can realize more from our economy only to the extent that we produce more.
It is not the function of Government in our society to establish the terms
of contracts between labor and management; yet it must be recognized that
the public has a vital interest in these agreements. Increases in money
wages and other compensation not justified by the productivity performance
of the economy are inevitably inflationary. They impose severe hardships
on those whose incomes are not enlarged. They jeopardize the capacity of
the economy to create jobs for the expanding labor force. They endanger
present jobs by limiting markets at home and impairing our capacity to
compete in markets abroad. In short, they are, in the end, self-defeating.
Self-discipline and restraint are essential if agreements consistent with a
reasonable stability of prices are to be reached within the framework of the

489916 O—59-




free competitive institutions on which we rely heavily for the improvement
of our material welfare. If the desired results cannot be achieved under
our arrangements for determining wages and prices, the alternatives are
either inflation, which would damage our economy and work hardships on
millions of Americans, or controls, which are alien to our traditional way of
life and which would be an obstacle to the Nation's economic growth and
improvement.
Government also has a vitally important part to play in helping to prevent
inflationary developments. First, through the management of its fiscal
affairs, it can help to create an environment favorable to the achievement
and maintenance of price stability. Second, to the extent consistent with
other national objectives, it must strive to operate those Government programs that directly affect costs and prices in a way that will contribute to
over-all price stability. Third, it must lose no opportunity, through revisions
of its tax structure or by other means, to promote improvements in productivity and to provide greater incentives for economic expansion.
Numerous elements in the program recommended to the Congress in
Chapter 4 of this Report are concerned explicitly with establishing a more
secure basis for the price stability essential for orderly economic expansion.
Other parts of the program, though immediately directed to other goals,
will also further this objective. All of our people, in view of their broad
common interest in economic growth, can fully support this program.




Chapter 2

Economic Developments in 1958
and Outlook for 1959
SHARP but brief contraction
the third quarter of
A^TER Aeconomic activity being reversed startingtoinappear early of 1958.
1957,
turned upward in the second quarter
Signs that the recession was
began
in May
and, once started, the recovery spread rapidly through the economy. By
the end of the year most of the ground lost during the contraction had been
regained. The index of industrial production was 142 percent of the 194749 average, compared with the peak of 146 in 1957; total employment had
increased by about 1 million from its recession low; unemployment had been
reduced by approximately the same amount; and the income and expenditures of individuals were at new high levels. Gross national product, our
broadest measure of the Nation's output of goods and services, had risen to
an annual rate of $453 billion. Expressed in dollars of constant purchasing
power, this represented an output of goods and services about equal to the
peak reached in 1957.
EXTENT OF THE DECLINE
Measured by the duration and extent of declines in employment, production, and income, the 1957-58 recession may be regarded as a moderate one
by the standards of earlier experience (Table 1). The Nation's total output
TABLE 1.—Duration and extent of declines in selected economic indicators
Percentage change l

Duration
(months)

Period

Nonagricultural
employment

Total
(Census)

1929-33
1937-38
1948-49
1953-54 .
1957-58

...

43
13
11
13
9

(3)
(3)
-0.7
-2.5
-1.7

Wage and
salary
workers
(BLS) »
-30.7
-10.0
-4.1
-3.4
-4.4

Industrial
production

-50.8
-32.3
-7.7
-9.6
-12.4

Personal
income

-49.8
-11.2
-3.4
-. 1
-.9

1
Percentage change from cyclical peak to cyclical trough (3-month centered averages), based on seasonally adjusted data.
2
In nonagricultural establishments. See Table D-22, footnote 1, for explanation of differences between
this series and the Bureau of the Census series.
3
Xot available.
Sources: Board of Governors of the Federal Reserve System, Department of Commerce, Department of
Labor, National Bureau of Economic Research, and Council of Economic Advisers.




CHART 1

Changes in Major Sectors of the Nations Output
Third Quarter 1957 to First Quarter 1958
State and local spending and consumer outlays on nondurables
and services helped offset declines in business investment, exports,
and consumer spending on durables.
BILLIONS OF DOLLARS, SEASONALLY ADJUSTED ANNUAL RATES

-30

-20

-10

0

+10

TOTAL G N P

CHANGE IN BUSINESS
INVENTORIES

BUSINESS FIXED
INVESTMENT-I/

CONSUMER EXPENDITURES
FOR DURABLE GOODS

NET EXPORTS OF GOODS
AND SERVICES

FEDERAL PURCHASES OF
GOODS AND SERVICES

RESIDENTIAL

CONSTRUCTION

CONSUMER EXPENDITURES
FOR NONDURABLE GOODS
AND SERVICES

STATE AND LOCAL
PURCHASES OF GOODS
AND SERVICES

-30

-20

-10

I
+ 10

U PRODUCERS' DURABLE EQUIPMENT AND NONRESIDENTIAL
CONSTRUCTION.
SOURCE*. DEPARTMENT OF COMMERCE.




CHART 2

Changes in Major Sectors of the Nation's Output
First Quarter 1958 to Fourth Quarter 1958
Changes in inventory investment and purchases by consumers and
by government were major factors in the GNP

increase.

BILLIONS OF DOLLARS, SEASONALLY ADJUSTED ANNUAL RATES

- 10

0

+10

+20

+30

+ 10

+ 20

+ 30

TOTAL GNP

CHANGE IN BUSINESS
INVENTORIES

BUSINESS FIXED
INVESTMENT-!/

CONSUMER EXPENDITURES
FOR DURABLE GOODS

NET EXPORTS OF GOODS
AND SERVICES

FEDERAL PURCHASES OF
GOODS AND SERVICES

RESIDENTIAL CONSTRUCTION

CONSUMER EXPENDITURES
FOR NONDURABLE GOODS
AND SERVICES

STATE AND LOCAL
PURCHASES OF GOODS
AND SERVICES

I
-10
-V PRODUCERS' DURABLE EQUIPMENT
CONSTRUCTION.

AND NONRESIDENTIAL

SOURCES: DEPARTMENT OF COMMERCE AND COUNCIL OF ECONOMIC ADVISERS.




of goods and services, adjusted for changes in prices, fell about 5*/2 percent
between the third quarter of 1957 and the first quarter of 1958. Industrial output decreased more sharply, which is typical of economic contractions; over a period of eight months, it decreased 13 percent. Employment
in manufacturing industries began to decline in January 1957, slowly for
six or seven months and then more rapidly. By May 1958, one month
after what is commonly regarded as the low point in general business
activity, a decline of 11 percent had been recorded. Reductions in nonfarm employment outside of manufacturing were smaller. Unemployment began to rise in the third quarter of 1957 and fluctuated around 5
million in the spring and summer of 1958. Lower employment naturally
meant a reduction in the incomes received by individuals. Total wage and
salary payments fell 3/2 percent between July 1957 and April 1958. The
drop in total personal income, on the other hand, was only 1 percent.
These broad measures tend to obscure the fact that economic fluctuations characteristically affect some parts of the economy more severely than
others. The recent recession was no exception in this respect. Production
of nondurable goods declined very little, and the output of the service industries actually increased. On the other hand, production of consumer durable
goods fell 27 percent from July 1957 to April 1958; the output of steel and
of machinery fell 40 percent and 21 percent, respectively; and the production
of automobiles in April 1958 was about 40 percent below what it had been
in the same month of 1957.
The pace of the decline was also uneven. The downturn was preceded
by a slowing in the rate of growth of the economy, and for the first few
months the rate of contraction was relatively moderate. However, it tended
to accelerate in the early months of 1958, with the result that a large proportion of the total decline was compressed into a period covering less than half
of its full duration.
By the end of March the decline was abating, and by May indications
of a general improvement began to appear. The signs of recovery, which
multiplied quickly, were confirmed before long by a sustained upturn, and
the recession may now be regarded as having ended in April.
MAJOR FACTORS IN THE DECLINE
Early in 1957, changes in several economic sectors, developing at the same
time mainly by coincidence, tended to sap the vigor of the expansion then in
progress. Each exerted a growing downward pressure on production and
employment, and ultimately their joint effect was to tip the balance, around
midyear, toward a general reduction in economic activity (Chart 1).
The major developments were the decrease in the volume of incoming
business of the capital goods industries and reduced appropriations by manufacturing businesses for their investment expenditure programs. By the
end of 1957, these early signs were confirmed by lower expenditures of business concerns on machinery, equipment, and new facilities. Throughout




10

CHART 3

Manufacturing Capacity, Production, and Prices
Manufacturing capacity rose in 1956-58 relative to production
INDEX, 1 9 5 3 = 100

140

MANUFACTURING CAPACITY-!/

V

120

100

1953

1954

1956

1955

1957

1958

. . and prices of capital goods rose relative to the prices of
other products.
INDEX, 1953 = 100
140

120-

100

Q

Q

I 1

I I I I II

1953

I I I I I I I I I I I I I I I I I I |I I I I I I I I I I I I I I I I I I I I I II I I I I I I I I I I I I I II

1954

1955

1956

1957

-!•/ END OF Y E A R .
& SEASONALLY ADJUSTED.
SOURCES: Me G R A W - HILL PUBLISHING COMPANY, BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM, DEPARTMENT OF LABOR, AND
E. H. BOECKH AND ASSOCIATES.




II

1958

most of 1957, financing for expansion programs was becoming more costly.
Corporate liquidity was low, and instances of capital issues being postponed
because of unfavorable financing conditions increased. Clearly, financial
considerations were exerting a progressively greater influence on businesses to
restrict their commitments for further expansion of their facilities.
A more basic factor affecting the capital expansion programs of businesses
was the widening gap between the supply and use of industrial capacity. In
manufacturing alone, spending on new plant and equipment between 1953
and 1957 had increased capacity by about one-fourth, but production had
increased by only 7 percent. At the same time, the cost of new capacity, as
reflected in the prices of industrial equipment, rose substantially more than
the prices of industrial output (Chart 3).
Pressure to curtail the capital improvement and expansion programs of
businesses mounted rapidly. By the second quarter of 1958, outlays for
these purposes had dropped $7.4 billion, on an annual rate basis, from the
peak reached three quarters earlier. This sharp decline was a major factor
in initiating the general economic contraction.
A similar though lesser impact on business activity resulted from a reduction in merchandise exports. These had risen at a particularly rapid rate
in 1956 and early 1957, and in the first quarter of the latter year they were
60 percent higher than in 1954. The decline that began in the second quarter of 1957 persisted through the first quarter of 1958, when the volume of
exports stabilized some 20 percent below the level a year earlier. Initially,
the decline occurred largely in wheat, cotton, and petroleum, but it soon
spread to exports of metals, machinery, and manufactured goods generally.
The rising volume of exports in 1956 and early 1957 had helped to maintain an upward trend in our economy at a time when domestic investment
demands were beginning to level off. The disappearance of the special
factors accounting for this surge in foreign sales coincided with the decline
in investment outlays of business concerns, and reinforced this downward
pressure on economic activity. The Suez crisis that had led earlier to
unusually heavy petroleum shipments subsided. Shipments of cotton and
other agricultural products, which had been exceptionally large during the
second half of 1956 and the first half of 1957, declined. Economic activity
in certain industrialized countries of Western Europe and in Japan ceased
to increase, following a prolonged period of expansion; and, in view of
their large stocks of imported materials, these countries reduced their
demands on the productive capacity of the United States. Industrial contraction in Canada resulted in smaller United States exports to that important market, and some of the less developed countries of the world curtailed
imports, because of a weakening in their terms of trade and foreign exchange
positions.
The drop in our shipments abroad, occurring at a time when our imports
were declining very little, meant a decrease in net exports of goods and




12

services of about $4 billion on an annual rate basis from the first half of 1957
to the first half of 1958.
Obligations by the Department of Defense for major procurement and
production items, which had risen in the second and third quarters of 1956
to an annual rate of about $18.2 billion, were being made at a $10.6 billion
rate in the same period of 1957, but actual expenditures changed much less,
and only after some time lag. The annual rate of purchases of goods
and services for national defense declined from $44.9 billion in the second
and third quarters of 1957 to $43.9 billion in the fourth quarter; but since
Federal expenditures for nondefense programs increased, total expenditures
in the fourth quarter declined only $600 million. Additional nondefense
expenditures caused a rise in the total for the first quarter of 1958. Subsequently, however, both defense and nondefense spending increased, and total
expenditures in the fourth quarter reached $53.8 billion. Meanwhile, the
rise in expenditures of State and local government units continued. As a
result, total expenditures for goods and services by all units of government—Federal, State, and local—increased throughout the recession. In
the first quarter of 1958, they were 3 percent higher than they had been six
months earlier.
Finally, although the aggregate of consumer spending changed very little,
large and important shifts occurred in the amounts spent on different groups
of goods. Purchases of consumer durable goods moved irregularly in the
first three quarters of 1957, then dropped sharply in the next six months.
In the first half of 1958, they were 11 percent less than in the third quarter
of 1957, and approximately four-fifths of the decline was accounted for by
reduced purchases of automobiles. Sharp cuts in consumer purchases of
durable goods are by no means unprecedented in recession, but the 1957-58
decline was unusually large in view of the small reduction—about 1 percent—in the amount of income available to consumers after payment of
taxes.
These largely independent changes in demand—lower rates of spending
by businesses on new plant and equipment, smaller exports, briefly and
slightly reduced purchases by the Federal Government, a lower rate of
contract placement, and reduced expenditures by consumers for durable
goods—led to a change in the inventory policies of business concerns. This
change was a major factor in the decline.
From 1955 to mid-1957, business inventories were increased substantially.
To a considerable extent this represented the rebuilding and enlargement of
stocks of materials, work in process, and finished products that are a normal
part of any expansion period. The rate of inventory accumulation slackened noticeably in the first three quarters of 1957, however, as uncertainties
about future sales and prices emerged and as the financing of inventories
became more costly and difficult. But the major change did not come until
the final quarter of the year. Business concerns then curtailed their production schedules sharply below the rate at which they were making sales, and




by the first quarter of 1958 inventories were being reduced at the rate of
$9.5 billion per year. Thus, a rather common feature of economic fluctuations in an enterprise economy was repeated: a moderate decline in the pace
of actual sales produced a much larger effect on production and employment by provoking a sharp swing from inventory accumulation to inventory
liquidation.
The inventory declines were closely related to the specific reductions in
demand already noted. Indeed, reductions in inventory holdings by manufacturers of machinery, aircraft, and automobiles accounted for over one-half
of the decline in total business inventories. Producers supplying these industries in turn were faced with substantial declines in incoming business, and
they attempted to pare down their holdings. As a consequence, particularly
large reductions occurred in the output of the supplying industries.
Certain additional developments also influenced inventory policies. Special problems of excess capacity and unfavorable relationships between
current sales and inventory holdings affected the petroleum, chemical, and
paper industries. The inventories of manufacturers of consumer household
durable goods were high when the downturn began; although sales declined
only moderately, production was cut sharply in order to complete the indicated adjustment. And distributors of all types of consumer goods—apart
from automobile dealers, whose inventories were rising sharply—cut their
purchases from manufacturers and drew down their inventories, even though
consumer purchases were well maintained. The major part of this liquidation of trade inventories came in the first quarter of 1958, when recessionary
pressures were greatest.
The impact of these inventory adjustments was considerable. The swing
from accumulation at an annual rate of $2.2 billion per year in the third
quarter of 1957 to liquidation at the annual rate of $9.5 billion during the
first quarter of 1958 reduced gross national product by $11.7 billion, about
60 percent of its entire decline during this period.
RESISTANCE TO CONTRACTION
Measures taken in 1957-58 specifically to counteract economic recession,
and other measures taken for reasons independent of economic conditions,
played an important part in limiting the contraction in production and
employment to a moderate over-all decline and to a brief span of time. But
these limiting features were in part also the result of the considerable and
growing capacity of our economic system to resist deflationary forces.
A major element in the economy's resistance to recession in 1957-58 was
the maintenance of over-all consumer demand, a result that may be attributed to consumer confidence and to the maintenance of personal income.
Although gross national product was $20 billion lower on an annual-rate
basis in the first quarter of 1958 than in the third quarter of 1957, the decline
in personal disposable (after tax) income was less than $4 billion, and
aggregate consumer expenditures fell only $2 billion.




14

In contrast, during the recessions prior to World War II, large declines
in investment activity commonly resulted in large contractions in personal
income, and reduced incomes naturally led to lower consumer purchases.
But in recessions since the war, the relative stability of consumer incomes
and purchases has provided a check on this potentially cumulative process.
As a result, declines in production have been contained within a narrower
segment of the economy.
A number of factors help to account for the maintenance of consumer
income during the 1957-58 recession. First, the decline in personal
income earned in production was small relative to the contraction in the
value of output. For every decline of $1 billion in private output, personal
income earned fell only $360 million; in 1929-30, it fell $670 million for
each $1 billion decline in output. This relatively more moderate decline
in earned income resulted in part from the fact that a larger proportion of
our labor force is now employed in industries and occupations not quickly
affected by moderate changes in business conditions; and even in the industries that are more sensitive to business fluctuations, a larger proportion of
employees hold positions not usually affected by production cutbacks of
short duration. Moreover, wage rates continued to press upward during the
1957-58 period, increasing the pay of employed persons and moderating the
income reductions of those working a shorter week. But this is a factor that
works two ways. It may sustain income for the employed; but to the extent
that it leads to higher costs and prices, it may induce reductions in the
working force and be an obstacle to re-employment.
Some of the factors that have made personal income earned in production
more resistant to recession have, on the other hand, made corporate income
more sensitive. Total corporate profits, and consequently the revenues
received by Government from corporate income taxes, fell sharply during
the recession. Because corporate dividends were maintained at a high level,
helping to sustain personal income, corporate retentions of income were
sharply reduced. For every $1 billion decline in gross national product,
corporate income taxes and retained earnings (adjusted for inventory valuation) together fell $590 million from the third quarter of 1957 to the first
quarter of 1958, compared with a drop of $240 million from 1929 to 1930.
Another development accounting for the small decline in personal income
earned in production was the rise in farm income during the recession.
Net farm income rose in the first quarter of 1958 to an annual rate that
was 10 percent higher than in 1957, increased another 6 percent in the
second quarter, and then remained roughly unchanged for the rest of the
year. To some extent, however, the beneficial results for the economy of the
larger income of farmers were offset by the effect of higher farm prices,
which reduced nonfarm real income and purchases.
Second, certain supplements to earnings helped to maintain aggregate
consumer income. Unemployment compensation payments increased
sharply as employment and earnings fell, and the extension of these benefits




15

for additional periods in 1958 provided a further offset to lost pay for those
who had exhausted their rights. Actually, the extended benefits did not
begin to be paid until after the recovery had started; nevertheless, they
assisted those who felt the recession's effect for the longest time and they
also strengthened the recovery movement. In addition, supplemental unemployment compensation payments under private plans helped to maintain
personal incomes and consumption expenditures. Another major income
supplement was the steady increase in payments under social security,
pension, and other benefit arrangements. The increase in such payments
during the recession resulted from the growth in the number of persons
eligible to receive them and from benefit increases under certain public
social security programs which had been legislated earlier.
The increase in these so-called "transfer" payments was very large:
$2.6 billion on an annual rate basis between the third quarter of 1957 and
the first quarter of 1958, and another $2.6 billion by the third quarter. In
this way, not only was the personal income earned in production relatively
well maintained during the recession, but the declines that did occur were
appreciably moderated in their effect on total personal income.
Finally, part of the fall in personal income was offset by a decline in
tax obligations, so that the income available to consumers after taxes, and
thus their purchasing power, declined less than the flow of personal income.
The combination of these three stabilizing factors—the small decline in
earned personal income relative to the decline in production, the growth
in transfer payments, and the reduction in personal tax payments—greatly
moderated the fall in consumer income available for spending. And consumers, in turn, reduced their purchases of goods and services by less than
the fall in their income.
If purchases by consumers in 1957-58 had fallen as much, in proportion
to the decline in all other demands for output, as from 1929 to 1930, they
TABLE 2.—Changes in income and consumption in recessions
Percentage change
Period

1929-30
1937-38
1948-49
1953-54
1957-58

Gross
national
product

-12.7
—6 2
-3.6
-2.7
-4.4

1
2

Personal
income
earned in
production

-10.7
-8 0
-3.7
-1.1
-2.2

Ratio of
change in
consumpPersonal
tion to
Disposable consump- change in
personal
tion exgross
income
penditures national
product l
(percent)
-10.5
—7 5
-2.0
.8
-1.2

-10.1
—4 0
.2
1.4
-.7

0.60
48
(2)

(2)

.11

Ratio based on change in dollar amounts.
Not computed because consumption rose while gross national product declined.
NOTE.—Changes from 1929 to 1930 and from 1937 to 1938 are based on annual data. Other changes are
based on seasonally adjusted data for the peak and trough quarters of gross national product.
Sources: Department of Commerce and Council of Economic Advisers.




16

would have dropped by at least $26 billion. Actually, they fell only $2
billion. While gross national product fell 4/2 percent, personal disposable
income fell only about 1 percent, and consumption expenditures only 0.7
percent (Table 2 ) .
The moderate extent and relatively short duration of the recession were
also due in part to the absence of adverse financial developments—which in
the past have tended to aggravate business contractions—and to the increase
of asset values, notably farm land and real estate. These circumstances
reflect the fact that the recession was brief and moderate, but they helped
to keep it brief and moderate.
PRICES AND COSTS
Public attention was attracted during the recession to the apparent paradox of prices continuing to rise while production and employment were
declining. Attention was naturally focused mainly on consumer prices.
As measured by the consumer price index, this group of prices rose, on the
average, by about 2 percent, though there was considerable diversity of
movement among different items. A major part of the increase was due
to higher food prices and the continuing upward drift in the costs of various
services used by consumers (Charts 4 and 5). On the other hand, prices of
manufactured products, with the major exception of new and used automobiles, were reasonably stable.
CHART 4

Consumer Prices on a Prewar Base
Between 1939 and 1948 commodity prices increased rapidly,
service prices slowly.

Since then, prices of services have risen

steadily relative to prices of commodities.
INDEX, 1939 = 100

250

•>

..••*
ALL ITEMS

/ DURABLE
/COMMODITIES

200

NONDURABLE COMMODITIES
«^»*
EXCLUDING FOOD , ' ^

150

100
I

I

1940

I

42

I

I

44

I

I

46

SOURCE: DEPARTMENT OF LABOR.




J

I

I

48

50

1

I

52

1

I

54

I

I

56

I

58

Prices in wholesale markets rose somewhat less than prices at retail, and
have been roughly stable since early in 1958. Again, however, the average
of wholesale prices fails to disclose the considerable differences of movement
among commodity groups. Prices of farm products and foods rose sharply
during the recession and then declined after mid-1958. Prices of raw
materials, which are always sensitive to changes in domestic and world
market conditions, declined sharply during the recession but recovered
rapidly after the upturn. Prices of manufactured products continued to
rise during the early months of the contraction, but fluctuated within a
narrow range throughout 1958 (Chart 6).
While it is important to beware of overly simple explanations for the rise
in prices during the last few years, and in particular for the continuance of
some increases during the recession, three factors of major importance may
be identified as having contributed to these results. First, during the early
part of the upward price movement which started about three years ago,
some increases were caused by heavy and rapidly mounting demands. These
higher prices often became higher costs for other industries, thus diffusing
their effects throughout much of the economy.
Second, a substantial part of the rise during the recession reflected forces
not closely related to the immediate business situation. Prices of services,
on which consumers spend over one-third of their total outlays, were making
a delayed adjustment to earlier increases in prices and costs. This paralleled
CHART 5

Consumer Prices on a Recent Base
Between 1955 and mid-1957 all major price indexes rose; during
the next year increases were confined mainly to food and service
prices; in recent months the over-all index has been stable.
INDEX, 1953-54=100
115

105

100

1953

1954

1955

1956

SOURCE: DEPARTMENT OF LABOR.




18

1957

1958

CHART 6

Wholesale Commodity Prices
The wholesale price index was roughly stable in recession and
recovery.

Offsetting changes occurred in prices of the various

components.
INDEX, 1953-54 = 100

FINISHED INDUSTRIAL PRODUCTS

*•

120

-

...-••"
•••"

PRODUCERS' EQUIPMEI*<T

V /
./""

no
-

CONSUMER GOODS

,— '

100
1 II 1 ll 1 1 1 ! 1

1953

m

1 II 1 1 ll 1 1 M

1954

1955

SOURCE: DEPARTMENT OF LABOR.




1

mnlnm

1956

1957

lllllllllll

1958

the experience in the other two postwar recessions. Prices of food, which
account for roughly one-quarter of the expenditures of consumers, rose
mainly because of supply conditions. Lower marketings of livestock resulted
in higher meat prices; and unfavorable weather conditions reduced the
supplies, and led to higher prices, of fresh fruits and vegetables.
Third, substantial increases in costs in recent years have influenced prices.
Large additions to productive capacity, and the replacement in this period
of facilities originally acquired when costs and prices were lower, have
caused capital costs to mount sharply. A rapidly enlarging complement of
professional and technical personnel has also added to costs, though inevitably the full beneficial effects of these larger staffs will be realized only over
an extended period of time. Since commensurate gains in output have not
occurred, these increases in costs have resulted in higher expenses per unit
of output produced.
Finally, wages, salaries, and employee fringe benefits have increased at
rates above those consistent with the long-run productivity performance of
the economy. As a result, employee compensation per unit of output, which
had been fairly stable between 1953 and 1955, rose about 10 percent in the
next two years.
This persistent advance in costs of all types naturally exerted an upward
pressure on prices. The increase in prices that did occur was less than the
rise in costs, however, with the result that profits per unit of output were
lower in 1956 and 1957 than in 1955.
Clearly, severe reductions in the price level during a brief and moderate
recession are not to be expected and would not be a proper objective of
national economic policy. Indeed, such reductions might impede early
recovery of the economy. Rather, the problem is how to achieve a reasonable stability of prices when economic activity is advancing and output and
employment are high. The limited downward flexibility of prices in a
moderate recession, and the upward movement even then of certain key
prices and costs, highlight and emphasize the need for public and private
policies that will produce the desired price stability at all times.
RESUMPTION OF ECONOMIC EXPANSION
Even during periods of general economic contraction, some industries
and some regions of the Nation continue to forge ahead and others experience only a temporary cessation or slowing down of their rate of growth.
This continuing strength helps to moderate cutbacks of production elsewhere ; and when demands begin to rise again in areas where there had been
actual declines, over-all gains in output and employment follow quickly.
A pattern of this type prevailed in the 1957-58 recession. While production and employment were declining rather sharply in some sectors, notably
in the heavy industries and in those producing consumer durable goods,
output and sales of consumer nondurable goods fell only slightly, the service
industries expanded, and purchases by State and local governments con-




20

CHART 7

Employment in Nonagricultural Establishments
Manufacturing, mining, and transportation accounted for fourfifths of the 1957-58 decline in employment and for half of the
increase since April.
MILLIONS OF PERSONS
54

52 -

4 -

2 -

1953

1954

1955

1956

SOURCE: DEPARTMENT OF LABOR.

21

489916 O—59




3

1957

1958

tinued to rise. Then, as areas of the economy that had suffered declines
resumed expansion, and as sales began to be met increasingly out of current
production rather than out of inventories, a rise in general economic activity
started (Chart 2 ) .
In the early part of 1958, shifts of this kind developed quickly. In February, employment was declining in all major sectors of the private economy;
only in government was it increasing. By April and May, increases in
private employment were reported (Charts 7 and 8). The demand for
goods and services ceased declining in a number of industries and in some
cases began to rise. The decline of exports virtually ended by the second
quarter of 1958, eliminating an important contractive force.
As indicated earlier, Federal outlays on goods and services fell only in the
fourth quarter of 1957, and then by a relatively small amount—$600 million
on an annual rate basis. A rise in such outlays began in the next quarter.
Purchases of nondefense goods and services by the Federal Government rose
at an annual rate of $3 billion from the first to the fourth quarter of 1958,
largely on account of increased payments under agricultural price support
programs and higher Government pay scales. And defense outlays, significantly influenced by the effect of pay increases, rose at an annual rate of
$400 million between the first and second quarters of 1958 and by another
$900 million in the next two quarters. At the same time, there was a sharp
increase in the placement of contracts for the purchase of military goods.
New orders for major items of defense goods, which in the second half of
1957 were being placed at an annual rate of $12 billion, increased to an
annual rate of $22 billion in the first half of 1958. The most immediate
effect of this rise was to slow and eventually halt the liquidation of inventories
by defense contractors.
Most of the decline in business expenditures for plant and equipment
had occurred by the second quarter of 1958. However, indications that
the decline would not be of long duration began to appear early in the
year; new orders for machinery and equipment, after falling sharply in
the late months of 1957, stabilized after the turn of the year and moved
upward shortly thereafter. Surveys of the plans of businesses for capital
outlays reported in September 1958 and again in December indicated that
the decline in these expenditures had ended and that some increase was in
prospect. Although industrial capacity was generally ample, the need for
more or for improved facilities was already being felt in some industries.
Throughout the economy, increased competitive pressures and rising costs
intensified the search for more efficient production techniques.
Indications that home building would help promote an upturn were
apparent early. Applications for FHA commitments, after declining more
than seasonally in the final quarter of 1957, moved moderately upward
through March 1958 and then increased strongly for the next six months.
The number of new private dwelling units being started increased steadily
after February. As was to be expected, time was required for these changes




22

CHART 8

Employment, Hours, and Earnings in Manufacturing
The average length of the workweek turned up in March 1958 . . .
HOURS*
AVERAGE WEEKLY HOURS
(PRODUCTION WORKERS)

42
40
38

II I i I i I I i I I 11 i i I i I 11 I I I 11 i I i i i I i 1 1 I 11 i i 11 i 1 1 1 I i 11 i I 11 I 11 11 i 11 i i I I i 1 1 I I i ii

1953

1954

1955

1956

1958

1957

. . . and employment of production workers in June.
MILLIONS OF PERSONS*
EMPLOYMENT

14

13

12

II

NONPRODUCTION (SALARIED)
WORKERS
*

S

t'
0

r l I I I I I I I I I 1 1 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 I I I I I I I I I I I I I I I 1^

1953

1954

1955

1956

1957

1958

Hourly earnings continued to advance throughout the year.
DOLLARS
AVERAGE HOURLY EARNINGS
(PRODUCTION WORKERS)

2.20

2.00

1.80

1.60

-

0 11111111111111111111111111 1111111111i 111111111111111111111111111111111111
1958
1953
1954
1955
1956
1957
* SEASONALLY ADJUSTED DATA.
SOURCES: DEPARTMENT OF LABOR AND DEPARTMENT OF COMMERCE.




CHART 9

Employment, Production, and Income
Employment changes have been broadly similar to previous postwar experience.
PEAK MONTH = 100*
110
NONAGRICULTURAL EMPLOYMENT (BLS)

105

1948-50

V
100

1953-55

95

90

85 L-L-J—L
0

2

4

6

8
10
12
14
16
MONTHS AFTER CYCLICAL PEAK

18

20

22

24

8
10
12
14
16
18
MONTHS AFTER CYCLICAL LOW

20

22

24

PERCENT OF CIVILIAN LABOR FORCE*

2 -

0

2

4

6

* SEASONALLY ADJUSTED.
SOURCES: DEPARTMENT OF LABOR, DEPARTMENT OF COMMERCE, AND
COUNCIL OF ECONOMIC ADVISERS.




24

CHART

9—Continued

Employment, Production, and Income
Changes in production and income also have been similar to
previous experience.
PEAK QUARTER=100 f

115
TOTAL OUTPUT
(GNP IN CONSTANT PRICES)

110

1948-50

105

100

1953-55

95
1957-58

90
2

3
4
5
6
QUARTERS AFTER CYCLICAL PEAK

PEAK MONTH = IOO f

115
PERSONAL INCOME

110

105

100

95

90 I

0

i

i

2

i

i

4

i

i

i

6

8

i

i

10

i

i

i

12

14

16

18

i

i

20

i

i

22

MONTHS AFTER CYCLICAL PEAK
t SEASONALLY ADJUSTED.
* INCLUDES SPECIAL LUMP-SUM PAYMENTS.
SOURCES: DEPARTMENT OF COMMERCE AND COUNCIL OF ECONOMIC ADVISERS.




i

24

to be translated into actual construction activity, but the volume of expenditures for residential construction turned upward after May and quickly
pushed well above the levels of 1956 and 1957.
The rise in home building activity and the stability of consumer demand
in general began early in 1958 to exert a favorable influence on the inventory policies of producers and distributors of building materials and consumer
goods. In the first quarter of the year, these industries were cutting back
their inventories sharply. Except for automobiles, however, sales were not
falling by a significant amount, and in many cases were rising. As retail
and wholesale firms placed larger orders with manufacturers, the latter increased their production, both to meet the increased sales and to replenish
their own inventories. In preparation for a new model year, the automobile industry also began expanding production and adding to inventories.
The change in the rate of inventory investment by wholesalers and retailers
and by the automobile industry accounted for a rise of about $4 billion in
national product between the first and fourth quarters of 1958, about oneseventh of the total increase recorded for that period.
Although inventories of manufacturers not closely associated with consumer developments continued to decline throughout the summer at a fairly
rapid rate, they eventually began to feel the effects of the increase in demand
elsewhere. Inventory reductions were slowed considerably, as production
expanded faster than sales; but in some industries, particularly those producing capital goods, liquidation continued in the final quarter of 1958.
For the economy as a whole, however, the rate of production in the fourth
quarter was equal to sales, whereas in the first quarter it had been $9.5
billion less than sales. This rise of $9.5 billion accounted for more than
one-third of the increase in gross national product during the period.
As a result of increases in sales and production, and a continued rise in
transfer payments, personal income began to rise in March. Apart from the
effects of retroactive salary payments to Federal employees in July, and the
pattern of dividend payments in December, the increase continued through
the year, providing the basis for higher consumption expenditures. Although
the decline in consumer spending on durable goods continued through the
second quarter, total consumption expenditures began to increase in that
quarter and by the end of the year retail sales were above sales a year earlier.
After September, purchases of durable goods increased substantially.
Responding to the increase in output and sales, corporate profits recovered
sharply in the second half of 1958. By the fourth quarter of the year, they
were apparently equal to the highest quarterly figure in 1957 and only
slightly below the peak attained in 1955. Supplementing the increasing
allowances for depreciation, these higher earnings were providing substantially larger amounts of internal funds to business concerns by the end of
the year.
Had it not been for extensive work stoppages in the final quarter, the
recovery in output, employment, and income, and in spending by consumers,
would have been more rapid. As it was, changes in employment followed
fairly closely the patterns of change in previous postwar cycles. The rate of




26

unemployment, which had risen above the rate in previous recessions since
the war, also fell rapidly. In the final two months of the year, the unemployment rate was close to what it had been in the corresponding period in
the 1948—50 recession and recovery, though still above what it had been in
the corresponding period in 1953-55 (Chart 9).
DEVELOPMENTS IN WORLD PRODUCTION AND TRADE
The recession was not limited to the United States in its origins or in its
effects. Production ceased to expand in most other industrial countries of
the Free World, and in some countries it declined in 1957-58 (Chart 10).
However, the general level of industrial output abroad in the closing months
of 1958 was moderately higher than it had been a year earlier, and many
indications pointed toward a renewal of expansion in countries with which
the American economy is closely related. World commodity prices, crucial
to the incomes of the primary producing countries, stabilized in the first half
of the year, and some of them tended to strengthen in the second half.
World trade, after its first significant setback since the Korean conflict, also
appeared to reflect a strengthening of demand.
The period of expansion which preceded the recession produced certain
maladjustments abroad, the correction of which entailed at least some
slowing down in production and trade before growth could be resumed
on a firmer footing. As in the United States, the expansion of industrial
capacity in certain countries was greater than the increase in industrial
output. In the United Kingdom, the increase in capacity resulting from
large investment outlays after 1955 was not matched by a corresponding
increase in industrial production or in output per worker. As wage rates
continued to rise rapidly, labor costs per unit of output increased. Together
with rising capital costs, they exerted an upward pressure on prices. In
most other industrial countries, the investment boom was translated
into a rapid growth in output and in productivity. Some of these
countries, especially the Federal Republic of Germany, Italy, and Austria,
successfully combined these high growth rates with only moderate price
increases. Others, however, including particularly Japan, France, and
the Netherlands, developed strong inflationary pressures at home and unsustainably heavy external deficits as their demands for capital goods and industrial materials rose. To these maladjustments were added the strains in
international payments produced by the Suez crisis and the short-term
capital movements that started in late 1956.
Readjustments thus had to be made in a number of countries at about
the same time. The timing of these shifts was partly coincidental, but their
effects were closely intertwined. A contraction of demand arising out of
them had immediate effects on inventory policies not only in the countries
immediately concerned but in other countries as well, as world prices of
primary commodities weakened. Some commodities were already vulnerable to such changes. This was especially true with respect to nonferrous
metals, for which production capacity in the United States and abroad had




27

CHART 10

Foreign Industrial Production
Production abroad rose rapidly from 1952 to mid-1957 and since
then has shown little further change.
INDEX, 1953 = 100*
160

140
WESTERN EUROPE,
CANADA, AND JAPAN

V

120

100

80 I

I

1 I

I

I

I

I

I

I

I

1953

1954

1955

1956

1957

1958

1953

1954

1955

1956

1957

1958

1955

1956

1957

1958

180

160 -

140 -

120 -

100

UNITED KINGDOM

120

\

100

80

1953
*

1954

SEASONALLY

SOURCES:




ADJUSTED.

DEPARTMENT OF COMMERCE AND ORGANIZATION FOR
EUROPEAN ECONOMIC COOPERATION.

28

CHART 11

World Trade
The chief decline was in exports of the U. S. and the primary
producing countries and in imports of other industrial countries.
BILLIONS OF DOLLARS*
WORLD

100
EXPORTS

80

60

-

1953

1954

1955

1957

1956

. . .f
1958

INDUSTRIAL COUNTRIES

60
WESTERN EUROPE,
CANADA, AND JAPAN

40

20
IMPORTS

1953

1954

1955

1956

1957

1958

PRIMARY PRODUCING COUNTRIES-^

40

20

EXPORTS

1953

1954

1955

1956

1957

1958

* SEASONALLY ADJUSTED ANNUAL RATES.
J/EXCLUDES PETROLEUM-EXPORTING COUNTRIES (BUT
LATTER ARE INCLUDED IN WORLD TOTAL).
NOTE: DATA EXCLUDE TRADE OF USSR AND SOVIET- BLOC COUNTRIES.
SOURCES: DEPARTMENT OF COMMERCE AND INTERNATIONAL MONETARY FUND.




been rapidly expanded in response to the extraordinary demands generated
by the Korean conflict and its aftermath and by the investment boom.
Burdensome surpluses of coffee had also been generated by excessive increases in capacity.
The decline of commodity prices, in turn, reduced the buying power of
countries producing primary products, in many of which the demand for
imports had already grown beyond export earnings or other means of
financing.
For these reasons, international trade receded from the high level reached
in the first half of 1957 and declined into the early part of 1958 (Chart 11).
The decline was especially marked in United States exports, for reasons
related to their commodity composition and country distribution. In the
second half of 1958, however, United States exports were at about the same
rate as in the first half of the year, and there appeared to be some strengthening in world trade.
OUTLOOK FOR 1959
An examination of changes in demand that have been occurring recently
in the major sectors of our economy provides a useful basis for estimating
further changes during the months ahead. In the private sector, the
industries that supply capital goods and facilities have, so far, contributed only modestly to the recovery. New orders for such goods have
improved and demands for them have begun to rise, but output in the
industries producing these goods has not increased markedly and the
increase in employment has been even more restricted. In the months
ahead, however, these industries and others more or less closely related
to them should make a larger contribution to rising production, employment, and income. Factors that have a considerable influence on capital
outlay decisions have become more favorable. Business earnings have
improved. The rate of utilization of existing industrial capacity, though
still not exerting pressure on businesses generally to enlarge their facilities,
has increased sufficiently to bring the need for additional capacity within
sight for some industries and firms. Moreover, the need for controlling
costs provides incentives to replace obsolete and high-cost facilities, even
though they remain operational. Present evidence indicates that business
concerns contemplate no further curtailment of their expenditures for new
and better facilities, and an upturn in such expenditures may already be
under way. In the past, improving economic conditions have typically led
business concerns to revise upward their plans for capital outlays, and it is
reasonable to believe that some such revision may take place as the year
progresses. There is not, as yet, a sufficient basis for judging how large
the eventual increase in demand from this sector of the economy may be,
but it seems reasonable to expect that it will make an increasing contribution
to a rise in over-all economic activity.
Although residential construction has already risen by about one-fourth
since mid-1958, it is continuing to be a major factor in economic recovery.




3°

Financing commitments already in hand and uncompleted starts should
entail some further increase in construction outlays in the next few months.
Subsequently, however, the level of building activity will depend increasingly on the capacity of the industry to compete for funds in the capital
markets. Favorable action by the Congress on recommendations made
elsewhere in this Report to correct those features of our housing laws that
tend currently to impede the flow of private funds into home financing
would significantly improve the outlook for a sustained high level of residential construction.
For the time being, exports are still affected by some of the factors that
contributed to their decline in 1958: a leveling of industrial activity abroad;
apparently large inventories of some commodities that are important in
United States shipments; and continued trade deficits and strains on foreign
exchange reserves in some of the primary producing countries. These
conditions not only moderate foreign demands for United States output but
also produce keener export competition. A decisive upturn in United
States exports can scarcely be expected until a renewed rise in industrial
activity abroad sets in, and perhaps then only with some delay where
inventories or idle capacity are large. However, there are encouraging
indications of such a rise in some countries abroad, and policies favorable to
economic expansion have been undertaken generally. Increased demand
arising from renewed expansion in the industrial countries may be expected
to benefit the trade position of primary producing countries. Meanwhile,
United States imports appear to be strengthening further, as domestic economic activity rises, and this should help to increase foreign buying power,
both directly through larger earnings from the United States and, more
widely, through some continued firming of raw material prices. Accordingly, the prospect is that in the course of this year foreign economic activity
and, possibly with some delay, the foreign demand for United States exports
should begin to rise again in a mutually reinforcing relationship with our
own economy.
Farm production may be expected to remain an element of strength and
stability in 1959. Even with growing conditions less favorable than in
1958, which was an exceptional year, the aggregate output of crops promises to remain high. It is expected that the total supply of milk, eggs, and
meat will be increased, the last especially by a substantial amount of pork.
Large production and stocks of many crops are likely to keep farm prices
under some pressure, but prices of many products are protected from severe
decline by governmental supports. Livestock prices may recede somewhat,
owing to larger supplies of hogs and poultry, though beef cattle prices may
remain relatively unchanged. Farmers' cash receipts from marketings
may be well maintained but total expenses on account of farm production
will probably continue to rise somewhat, reflecting higher payments for
wages, taxes, interest, and machinery. Lower or unchanged costs are
expected for other items. In these conditions, income from farming may
be slightly below that in 1958, but still high, and farmers' expenditures for




31

production and consumption may be expected to remain at levels favorable
to an expansion of business activity. Also, the high productivity of agriculture and large stocks of food and feed should help restrain increases in the
general price level in the year ahead.
In the public sector of the economy, a rise in Government outlays—Federal, State, and local combined—may be expected in the present year,
though probably a smaller increase than in 1958. Outlays by State and
local governments have been rising steadily, and they may be expected to
continue expanding at the same rate as in the past year, if not at a somewhat
higher rate. The Federal Government's outlays for goods and services and
for transfer payments in connection with social security programs will increase in 1959, though by a lesser amount than in the past year.
If increases in the demand for output continue to develop along these
lines, the liquidation of inventories should soon come to an end, if it has not
already done so, and some stepping up in production schedules above sales
can reasonably be expected. A building up of stocks of materials and work
in process is typical of a period of economic expansion. Moreover, inventories of some businesses in 1958 appear to have fallen below the amounts
appropriate for even the reduced pace of sales at that time. The improved
liquidity position of business concerns and financial institutions should make
it possible to finance needed increases in inventories with reasonable ease.
When account is taken of the currently favorable appraisal of economic conditions which consumers appear to hold, their improved credit
position, and the higher incomes likely to be generated in sectors of the
economy not directly connected with the production of consumer goods, it
seems reasonable to expect an enlarging market for these goods in the coming
year. In turn, higher employment in these industries may be expected to
contribute further to the increase in economic activity generally. On the
other hand, the extent to which increases in income can lead to higher consumption of goods and services, and thus to higher levels of production and
employment in the consumption goods industries, depends on whether
increases in wage and other costs are held within limits consistent with reasonable stability of consumer prices.
With due allowance for the limitations that surround all efforts to forecast the probable course of activity in a free economy, there is a reasonable
basis for confidence that the recent improvement in activity will be extended into the months ahead. However, it must be recognized that the
actions of all individuals and groups in the Nation—consumers, business
concerns, labor organizations, and Government—will have a decisive bearing on the outcome. All must play their parts appropriately if the high
levels of employment, production, and purchasing power envisaged by the
Employment Act are to be attained. A significant contribution by Government to the accomplishment of this purpose, and particularly to the
achievement of the price stability essential for sustainable economic growth,
would be assured by the economic program outlined in Chapter 4. That
program is recommended to the favorable attention of the Congress.
32




Chapter 3
Economic Policies in 1958
ARIOUS MEASURES undertaken by Government helped overcome
the contractive forces in our economy in 1957-58. Some of these
measures were initiated specifically to help reverse the decline and to
promote a higher level of business activity. Others were designed to
mitigate the special hardships experienced by individuals and families
through loss of employment. Still others were called for by considerations
entirely independent of economic conditions, but they nevertheless had the
effect of stimulating economic activity. After the recovery started, policies
were directed to helping achieve a high and sustainable rate of economic
growth with stable prices.
A review of these actions and an appraisal of how they influenced
the year's economic developments are important as guides for Government and for private individuals and groups in meeting future problems of
economic stabilization with balanced and constructive policies.
POLICIES DURING THE CONTRACTION
Money and Credit
During the past 18 months, monetary and credit policy was directed
successively to moderating the rate of credit expansion, helping to reverse
economic contraction, and encouraging a steady and balanced recovery and
growth.
Demands for capital and credit were heavy in the months preceding the
1957 downturn. Plant and equipment expenditures were at an all-time
high, and expanding inventories required financing. Because the cash and
liquidity position of businesses was relatively strained, funds to help finance
investment programs and working capital needs were necessarily sought in
large volume from outside sources. But because the Federal Reserve System confined the reserves supplied to member banks at its own initiative to
amounts consistent only with seasonal swings in activity, bank credit was
less readily available than in 1956. Businesses did obtain additional credit
from commercial banks, but the increase was much smaller than in 1956,
and more reliance for funds had to be placed on the capital markets.
Securities offered by corporations increased to a new high volume, and the
offerings of State and local governments approached record amounts.
Meanwhile, the flow of funds into life insurance companies, savings and
loan associations, and mutual savings banks slackened. Although larger




33

CHART

12

Interest Rates and Bond Yields
Short-term interest rates continued to decline until mid-1958, then
rose sharply until October.
PERCENT PER ANNUM

4

-

1955

1956

1957

1958

Long-term interest rates declined slightly early in the year, but
rose rapidly from midyear until October.
PERCENT PER ANNUM

0 ii i i i i Ii i ii i I i ii i i Ii iii i I i i ii t Ii iii i Iii i i i I ii i ii

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




34

CHART 13

Member Bank Reserves
In 1958 the rise in Federal Reserve holdings of U. S. Government
securities offset the effect of gold outflow on bank reserves.
BILLIONS OF DOLLARS

T

35
CURRENCY IN CIRCULATION
^^

30

^__

X|

f

'

1

U.S. GOVERNMEN r SECURITIES
HELD BY FEDERAL RESERVE BANKS

25

v......,x

:.
GOLD STOCK -^

20
y

MEMBER BANK /
RESERVrE BALANCES

15

*^^*^^"^"^^^™^
**

-

-

1955

1956

1957

1958

Free reserves increased sharply early in 1958 and
declined after midyear.
BILLIONS OF DOLLARS1"

(ENLARGED SCALE)

FREE RESERVES
( E X C E S S RESERVES
LESS BORROWINGS)

I955

I956

I957

I958

t AVERAGES OF DAILY FIGURES.
* CHANGE IN RESERVE REQUIREMENTS.
SOURCE: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.




35

amounts of savings were supplied from other sources, notably from the increasing volume of time deposits in commercial banks, the rising tide of
financial demands in the capital markets helped bring about progressively
higher interest rates and bond yields. The peak of credit and capital costs
came in the fall of 1957, when interest rates generally reached the highest
levels since the early 1930's (Chart 12).
By the end of September, there were indications that the demand by
business concerns for bank credit was slackening; and the flow of funds
into home financing fell as the ceiling interest rates on federally underwritten mortgages became increasingly out of line with yields available on
investments not subject to such controls. In the second half of October,
the Federal Reserve authorities began to ease slightly the reserve position
of member banks through open market operations in United States Government securities. This was followed in mid-November by a reduction
in the discount rate from 3/2 percent to 3 percent, signaling a decisive
change in policy. Subsequently, the Federal Reserve authorities eased
reserve positions still more by open market purchases of Government
securities and released some $1.5 billion of bank reserves by lowering reserve requirements. In a series of steps over five months beginning
in mid-November, the discount rate was reduced to 1% percent.
By March 1958, the reserve position of banks had eased markedly. Member bank borrowings from the Federal Reserve Banks were nearly $ 1 billion
below those of September 1957, and net free reserves (excess reserves less
borrowings) had increased to $500 million. This reserve position of member banks remained virtually unchanged until July 1958 (Chart 13).
Monetary policy was, moreover, sufficiently expansionary to offset the
impact on bank reserves of a gold outflow of $1.4 billion, which took place
in the first six months of the year.
These steps produced emphatic reactions in financial markets. The
improved reserve position of commercial banks enabled them to add nearly
$10 billion in loans and investments to their assets in the first half of 1958.
This took the form largely of additions to their holdings of United States
Government securities, which increased $6.0 billion by midyear, but their
holdings of State and local securities also increased significantly. The demand for bank credit from most other borrowers was not heavy, and other
forms of credit increased only a little or declined. As a result, the
ratio of United States Government securities to loans in bank portfolios
increased.
Because the major part of this increase in bank assets was reflected in
an expansion of $5.7 billion of time deposits, the volume of demand
deposits and currency, which is the economy's active money supply, increased
by only $2.2 billion, on a seasonally adjusted basis (Chart 14). Without
posing potentially inflationary threats, this timely expansion of the money
supply helped to improve the liquidity position of the economy generally.




CHART 14

Money Supply
The money supply increased in 1958, mainly in the first 7 months
of the year.
BILLIONS OF DOLLARS

140 -

1956

1957

1958

END OF MONTH
SOURCES: BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, NATIONAL BUREAU
OF ECONOMIC RESEARCH, AND COUNCIL OF ECONOMIC ADVISERS.

Borrowing costs and investment yields in capital and credit markets reacted quickly to these developments. Short-term interest rates fell sharply.
The rate on 91-day Treasury bills dropped significantly below 1 percent by
May, and the rate on prime commercial paper was reduced to as low as 1 1 /%
percent in June. In the market for longer-term funds, the yield on outstanding long-term United States Government issues fell to a low of 3.05
percent in April, a decline of 19 percent from the October 1957 high. By
the time the economy was turning from recession to recovery, the yield on
high-grade corporate bonds had fallen 14 percent below its 1957 high,
and the yield on high-grade municipal securities almost 19 percent. Prices
of FHA-insured and VA-guaranteed home mortgages in secondary markets
had risen significantly by midyear, and there was a rapid improvement in
the availability of mortgage investment funds throughout the country.
Housing and Home Financing
Nowhere in the economy was the stimulative effect of the easing of credit
conditions more clearly visible than in residential building. Evidences of
underlying strength in this area, in which activity had been declining more
or less steadily for two years, were apparent as early as mid-195 7. Low
vacancy rates, a somewhat quickened tempo of sales, and a reduction in

489916 O—59




37

the number of unsold houses held by builders suggested a firming of
demand. In numerous communities, the elimination of rent controls had
created conditions more favorable to the construction of apartment projects; and significant progress had been made, through the provision of
needed community facilities, in removing deficiencies that were impeding
the construction of single-family homes. In August 1957, minimum downpayment requirements on FHA-insured loans were reduced by administrative order, issued under the authority granted by the Housing Act of that
year. And the increase in residential construction costs, which had been
particularly rapid during 1955 and a good part of 1956, halted.
In this favorable environment, an increase in the flow of private funds
into the home mortgage market served rather quickly to initiate an upturn
in prospective residential building activity. Indeed, the reaction was so
marked that it was necessary in January 1958 to request authority from
the Congress to use additional funds to meet the costs of processing an
unexpectedly large volume of applications for FHA loan insurance (Chart
15).
Numerous administrative actions were taken to spur building activity.
In December 1957, more than $175 million was released for purchases of
mortgages by the Federal National Mortgage Association (FNMA) and
to assist urban renewal. Early in January 1958, the rule requiring that
closing costs on FHA-insured loans be paid in cash—a rule which had been
imposed in 1955 as a check on the excessive use of credit—was rescinded.
In February, a new program was launched by the Federal Home Loan
Bank Board to make loans available on a five-year basis to member associations, supplementing its shorter-term loan program. In March, adjustments were made in allowable discounts on VA loans, another $200 million
was released to the FNMA for the purchase of mortgages under its special
assistance programs, and the Housing and Home Finance Agency was
directed by the President to expedite construction on approved and planned
projects for college housing, urban renewal, and public housing. Early in
April, minimum downpayment requirements on VA-guaranteed loans were
reduced. In the same month, several additional steps were taken under
authority granted by the newly approved housing legislation. Adjustments
were made in the interest rate on military housing to expedite the flow of
private funds into this type of investment; minimum downpayment requirements were reduced on FHA-insured loans; the interest rate on VA-guaranteed loans was adjusted upward to the maximum permitted under the law,
in order to draw additional funds into this type of investment; discount
controls, which had previously tended to block the flow of funds into FHAinsured and VA-guaranteed loans, were removed; and $325 million was
released by the President for purchases by the FNMA of mortgages on
properties in urban renewal areas and on housing for elderly persons and
for military personnel. Funds were made available in April, May, July,




and August^ under the FNMA special assistance program created by the
April housing legislation for the purchase of mortgages ranging in amount
up to $13,500. At that time, the law required that qualifying mortgages
be purchased at par. Since this assured financing of projects at costs below
the price of funds obtainable from private sources, and because the law
authorized the issuance of advance commitments, builders turned at once
to the Federal Government. By the middle of September, virtually all of the
$1 billion authorized by this legislation had been committed to be paid out
as mortgages were delivered.
As already indicated, evidence of an imminent upturn in home building
was visible even before the end of 1957, but the increase naturally lagged
by some months behind the improvement in financial conditions. A small
increase in housing starts began in March 1958, when the seasonally adjusted annual rate rose slightly above the 915,000 reached in February. By
December 1958, starts of new homes had reached a rate of 1,430,000. The
volume of new residential construction expenditures also increased, but
somewhat later than the rise in housing starts. Although other types of
construction activity continued at a high level, it was residential building
that supplied the major impetus from the construction field to general
economic recovery.
CHART 15

Housing Starts and Requests for Federal Underwriting
Private housing starts rose sharply after March 1958. Applications for FHA and VA financing increased before midyear,
then declined.
MILLIONS OF UNITS

1.5

ANNUAL R A T E S

- /"\

PRIVATE NONFARM
STARTS
fm\

UNADJUSTED

1.0

.5

1955

1956

1957

1958

! NEW HOME CONSTRUCTION.
SOURCES: DEPARTMENT OF LABOR, FEDERAL HOUSING ADMINISTRATION (FHA), AND
VETERANS ADMINISTRATION (VA).




39

Unemployment Insurance Benefits
The primary objective of our Federal-State system of unemployment
insurance is directly to aid those experiencing involuntary loss of employment. However, by sustaining the aggregate purchasing power of consumers
at a level higher than would otherwise prevail, these payments contribute
significantly to the stabilization of the whole economy.
In both these respects, benefit payments were materially helpful during
the 1957-58 recession. Payments rose moderately in the third quarter of
1957 and very sharply in the fourth quarter and after the turn of the year,
as unemployment mounted. From July 1957 to April 1958, they directly
offset about one-third of the decline in wage and salary disbursements
and, because they are not taxable, their effect in maintaining disposable
personal income was even greater.
The contraction of job opportunities meant that unemployment was extended for many workers beyond normal lengths and beyond the period
of benefit rights under basic laws. As a result, the number of persons
exhausting their benefits rose from 82,000 per month in September 1957
to a peak of 285,000 in July 1958.
Legislation was requested in March 1958 to lengthen temporarily the
period of entitlement to unemployment benefits, and a bill was enacted in
June. States participating in this temporary program, or otherwise extending the duration of benefits, accounted for 70 percent of covered employment. The number of Unemployed persons eligible for its benefits
reached a maximum of 658,000 in late August 1958. Extra benefits
amounted to about $390 million during the year.
Defense Procurement
The Economic Report of January 1958 noted that the economy was
beginning to feel the impact of an increase in defense expenditures. In
the January 1958 Budget Message, $39.6 billion of new obligational
authority was requested for the military functions of the Department of
Defense, and budget expenditures of $40.3 billion were contemplated for
the fiscal year 1959. The latter figure was $1.4 billion higher than the
expenditures estimated for fiscal 1958. Much of this increase resulted
from higher planned expenditures for military research and development
programs, additional military construction, and a contingency reserve for
the acceleration of weapons development. In line with national security
policy, a supplemental appropriation request of close to $1.3 billion was
made on January 7, 1958, as an advance on the program for the fiscal year
1959; and in April, close to $1.5 billion of additional funds were requested
for the fiscal year 1959.
The acceleration of defense procurement under the amounts appropriated
in the calendar year 1958 and prior years was soon evident in the awarding




40

of contracts for major items. In the third quarter of 1957, gross obligations
for major procurement and production in the Department of Defense military functions amounted to $2.2 billion. They rose to nearly $3.9 billion
in the fourth quarter of 1957, and reached $4.7 billion and $6.1 billion in
the first and second quarters of 1958, respectively.
Because changes in the backlog of unfilled orders permit the rate of current production to follow a more even course than would be dictated by
the flow of new orders alone, this acceleration in defense contracting was
not accompanied by a corresponding increase of output in the affected
industries. However, the rise in defense contracting in the first half of
1958 did result in an expansion of defense production, and through its
effect on the inventory policies of defense contractors had a significantly
stimulative effect on the economy.
Civil Procurement and Construction
Steps taken to accelerate needed Government procurement and construction in nondefense programs also had a helpful, though necessarily
limited, effect. Early in March, accelerated procurement of needed equipment and supplies was authorized, and instructions were issued to agencies
calling for the placement of as many planned orders as possible under available authorizations. Stress was placed on the desirability of giving these
orders, insofar as possible, to firms in areas of substantial labor surplus.
Legislation was requested in March and enacted in April to make available for immediate use one-half of the amounts requested for the purchase
of supplies and equipment in the fiscal year 1959. The General Services
Administration, the Veterans Administration, and other civilian agencies
ordered substantial quantities of supplies under this plan, and the Post
Office Department placed orders for new trucks earlier than had been
scheduled. A program for accelerating the repair and modernization of
Federal buildings was also put into operation in March, and congressional
assent to requests for supplemental appropriations made it possible to continue an accelerated rate of activity on Federal water projects already under
way.
Acceleration of Grants-in-Aid and Tax Refunds
Allocations to State and local bodies under various Federal grant programs, including aid for the construction of hospitals, medical research
facilities, and airports, were accelerated during March and April so that
contracts might be negotiated for projects that could be started immediately.
Special efforts were made by the Internal Revenue Service in 1958 to
speed up the payment of refunds to those who had overpaid their 1957
income taxes. Refunds distributed in the first five months of the year exceeded those of the same period of 1957 by $700 million.




41

Federal-Aid Highway Program
In order to maintain construction of the Interstate Highway System on
schedule, legislation was requested to permit larger allocations to the
States than would have been possible under the original provisions of the
law. Such legislation was enacted in April, and allotments were promptly
made. During the following six months, contracts were negotiated by the
States for the construction of Federal-aid highways to cost $3 billion, 80
percent more than the amount obligated during the corresponding period
of 1957 (Table 3). During this same six-month period, Federal payments
to the States exceeded $1^4 billion. This, also, was more than 80 percent
greater than the amounts paid during the same months a year earlier.
TABLE 3.—Obligations and payments

on Federal-aid highway programs, 1957—58

[Millions of dollars]
New obligations for highway
construction 1

Federal payments to States

Period
Total

Interstate
program

Other
programs 2

Total

Interstate
program

Other
programs 2

1 957; First quarter
Second quarter
Third quarter
Fourth quarter

781
896
803
1, 174

418
410
405
833

364
486
398
341

214
235
362
423

82
64
120
173

132
171
242
250

1958' First quarter

770
1 378
1,399
1, 266

386
598
737
650

385
780
662
615

269
410
643
886

129
251
365
509

140
159
278
377

Third quarter 3
Fourth quarter
1
2

Includes Federal and State matching funds.
Includes primary, secondary, and urban extension highways.
Preliminary estimates by Council of Economic Advisers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).
3

Federal Credit Programs
Steps to help counter the recession were taken in a number of Federal
credit programs outside the housing field. Loan approvals by the Small
Business Administration during the first half of 1958 amounted to about
$122 million, $33 million more than in the corresponding period of 1957.
The Export-Import Bank contributed even more heavily to the increased
volume of Federal lending activity. Its contribution through loan authorizations toward the financing of domestic economic activity is estimated to
have been more than $250 million larger in the first half of 1958 than in
the corresponding period of 1957.
Federal Fiscal Operations
Not all Federal actions taken to help counteract recession are reflected in
Federal budget accounts. Many involved no additional budget outlays
at all and, where the placement of contracts and orders was involved, some
part of the impact on the economy came at an earlier date than would be
suggested by their eventual reflection in the budget as expenditures. Even
so, significant interactions between economic developments and Government fiscal operations are revealed in the Federal budget.




42

In the fiscal year 1958, Federal expenditures were $2.5 billion higher
than in the fiscal year 1957—the twelve-month period which preceded the
1957 downturn (Table 4). This increase was due in part to actions taken
specifically to help counter the recession but in part also to actions which,
though taken for other reasons, had an expansive effect on the economy.
Directly and indirectly, increases in Federal expenditures resulted in an
TABLE 4.—Federal budget receipts and expenditures, fiscal years 1957—60
[Billions of dollars]
Fiscal year

Expenditures

Receipts

1957
1958
1959 '
I960 i

1.6
-2.8
-12.9

69 4
71.9
80 9
77.0

71 0
69. 1
68 0
77 1

..

Surplus or
deficit (-)

.1

1

Estimate.
Sources: Treasury Department and Bureau of the Budget.

additional demand for output at a time when private demand had slackened. Furthermore, a small part of the impact of the recession on
economic activity in general was lessened by a decline in personal income
tax payments. Because of the structure of our tax system, the decline in
personal income after taxes was less than the decline in income before
taxes.
CHART 16

Fe deral Government Receipts and Expenditures
No tional Income Accounts
ixpenditures rose steadily in 1958.

Receipts fell in the first part

of the year and increased thereafter.
BILLI ONS OF DOLLARS*

100

90
80
70
60 __

^ EXPENDITURES

0

1

1

1

1

10
0

1

1

1

SURPLUS

i|i||ii^

-10 —
-20

_
>

1

& &
1

1

1953

1

1

1

1

1

1

1

1

1

1

1

1

1

1

_ ^HQigiBa.n

1

1

i1 1 1

DEFICIT
1

1

1954

1

1

1

1

1

1955

1

1

1956

!

1

1

1

1957

1

1

1

SOURCES: DEPARTMENT OF COMMERCE AND COUNCIL OF ECONOMIC ADVISERS.

43

1

1958

* SEASONALLY ADJUSTED ANNUAL RATES.




1

1

1

The effect of changes in the Federal Government's fiscal operations can
be followed more closely in our national income accounts. Total receipts
and payments as registered in these accounts are larger, and differ from
those in the budget, mainly because of the inclusion of trust fund operations,
the exclusion of intra-governmental transactions, and the timing of transactions on a basis more closely related to their economic effects.
These accounts show that in the third quarter of 1957 the Federal Government was withdrawing more funds from the economy through receipts
than it was putting in through disbursements. Aggregate receipts at the
seasonally adjusted annual rate of $83.3 billion exceeded disbursements
by $3.4 billion. By the first quarter of 1958, on the other hand, receipts
fell short of disbursements by an annual amount of $6.6 billion; in this
quarter, therefore, the Federal Government's combined fiscal operations
were, on balance, exerting a stimulative effect on the economy. This
turnabout of $10 billion—nearly three-fourths of which was reflected in
the decline in receipts—had a greater impact on the economy than did fiscal
operations in either of the two other postwar contractions (Chart 16).
POLICIES AFTER THE UPTURN
With production, employment, and income moving upward in the second
quarter of 1958, the economic policies of Government became concerned
increasingly with keeping the recovery on a sound basis and promoting a
sustainable, long-term expansion.
Credit and capital markets responded quickly to the rapidly strengthening confidence that a firm recovery was under way. The large financing
requirements of the Treasury also influenced financial mairkets. The
upturn in interest rates, which reflected these changed views and conditions,
was accentuated by the liquidation, beginning in June, of large speculative
holdings of United States Government securities. Interest rates subsequently stabilized, however, and the liquidation appears not to have had any
continuing effect on capital costs. To the greatest extent possible, the
large-scale Treasury financing that was essential in these months was carried
out in ways designed to minimize inflationary consequences and yet not to
hamper the recovery and expansion of the economy by putting undue pressure on long-term capital markets.
The events of 1958 presented an unusual variety of problems in the management of the public debt. During the year, an increase of $8 billion in
the public debt had to be financed, and $53.2 billion of maturing marketable
issues (exclusive of bills) needed refinancing. At the same time, the
reduced pressure of private demand for credit made it practicable to undertake a lengthening of the average maturity of the Federal debt. In the first
six months of the year, $19.6 billion of intermediate and long-term securities
were issued, which resulted in a significant increase in the average length of
the outstanding marketable debt. But after July, heavier than expected
subscriptions to the June exchange bond and the later rapid decline in bond




44

CHART

17

Stock Prices and Credit
Stock prices rose to a record level in 1958.
INDEX, 1939*100
420

380 -

340 -

300 -

260

1956

1957

1958

BILLIONS OF DOLLARS

4.5
STOCK MARKET CREDIT-^
(END OF MONTH)

4.0

3.5 *

A

l

I

l l

1 I l

1956

l l I

i I i i i i i I i i i i i I i i i i i I i i i i i I
1957
1958

PERCENT OF MARKET VALUE

100

MARGIN REQUIREMENTS
50

1956

1957

1956

y CUSTOMERS' NET DEBIT BALANCES AND BANK LOANS TO OTHERS THAN BROKERS
AND DEALERS. EXCLUDES U. S. GOVERNMENT SECURITIES.
SOURCES: SECURITIES AND EXCHANGE COMMISSION, BOARD OF GOVERNORS OF
THE FEDERAL RESERVE SYSTEM, AND NEW YORK STOCK EXCHANGE.




45

prices caused the Treasury to repurchase a quantity of its newly issued securities. During the latter part of July, the Federal Reserve suspended
temporarily its policy of confining open market operations to short-term
securities. For the remainder of 1958, the Treasury confined its borrowings
to maturities not in excess of 2/2 years.
It was evident by the end of the year that the Treasury's vast and difficult financing operation was being satisfactorily concluded. By December 31, most of the Treasury's prospective new money requirements
for the current fiscal year had already been met. The Federal debt increased
$6.6 billion during the second half of the year, but only about $2 billion of
additional United States Government securities had been absorbed by the
banking system. The expansion of the money supply, measured in terms of
demand deposits and currency in circulation, had been limited to about $3
billion, or 2 percent, in the second half of the year. Most of the remainder
of the Treasury's borrowing needs during this half-year were met from nonfinancial corporations and other short-term investors, rather than from
longer-term holders of securities.
As business conditions improved, monetary and credit policy was shifted,
with a view to limiting the expansion of bank credit to a sustainable pace.
The increased restraint on bank reserves was marked by the sharp rise
in member bank borrowings that began in August. Discount rates were
raised to 2 percent in August and to 2/2 percent in October, as short-term
money rates moved upward. Margin requirements on new stock purchases
were raised from 50 percent to 70 percent in August and to 90 percent in
October, to prevent the excessive use of credit in stock market transactions,
equity prices having risen in the meantime to record levels (Chart 17).
The response of interest rates to the recovery of the economy and the
shift in monetary policy was rapid. Within the short space of four months,
a rise in short-term borrowing costs wiped out much of the previous reduction, long-term capital costs returned to the levels they had reached
in the late summer and early fall of 1957, and funds became more costly
and somewhat less readily available in the mortgage market. By the close
of the year, capital and credit markets had moved a considerable distance
toward the conditions prevailing 18 to 24 months earlier.
Federal receipts and disbursements also reflected the economic and
financial developments of the recovery period. The aggregate of the Federal Government's disbursements, as registered in national income accounts,
rose from a seasonally adjusted annual rate of $82.8 billion in the first
quarter of 1958 to $90.6 billion in the final quarter. Meanwhile, Federal
receipts of all types, which had declined under the impact of recession to
an annual rate of $76.1 billion by the first quarter of 1958, rose to a rate
of $83.4 billion in the fourth quarter.
The gap between the Federal Government's disbursements and receipts
narrowed, from a rate of $9.9 billion in the second quarter of the year to
$7.2 billion as the year ended, as the fiscal operations of Government, which




had tended earlier in the year to cushion the contraction, moved in the
direction of restoring a balance between outlays and receipts and thereby
countering potentially inflationary tendencies. This direction of change in
the fiscal operations of Government is favorable to sustainable economic
growth and improvement. Its beneficial effects would be extended by
enactment of the financial plan presented to the Congress in the 1960 budget.




47

Chapter 4

A Program for Economic Growth
with Price Stability

T

HE EMPLOYMENT ACT OF 1946, under which this Report is
submitted to the Congress, lays principal emphasis on the need for
public and private policies to promote high levels of employment, production, and purchasing power. Achievement of these goals has assumed
increasing importance with the addition of a heavy and continuing burden—
the maintenance of strong national defenses—which our economy must
carry while raising the living standards of an increasing population and
helping to discharge the Nation's international responsibilities.
Experience during the life of the Act has, however, directed attention more
and more to the need for a framework of reasonable price stability in order to
achieve sustainable economic growth. A persistent upward movement of
prices would do great harm to our economy. Quite apart from the
inequities it would impose on those whose incomes would not rise correspondingly, it would narrow markets at home for important groups of
goods, lower our capability to compete in the world's markets, and by
requiring restrictive fiscal and monetary policies, lessen our chances of
fully realizing our potential for economic growth. If price increases
were to accelerate, the continuing upward movement would sooner or later
undermine the confidence on which our economic system depends and
would eventually release drastic corrective forces. Since some of the forces
that tend to produce an upward movement of prices are themselves expressions of the process of vigorous growth in a free economy, the objective of
national economic policy must be to balance encouragement and restraint.
Clearly, reasonable stability of costs and prices cannot be preserved by
any single policy or measure, nor by Government acting alone. To achieve
the goal of inflation-free, sustainable growth requires that we adopt appropriate policies and modify certain practices in both the public and private
sectors of the economy. As noted in Chapter 1, every group in the Nation
has a responsibility to help check the forces which contribute to increases in
costs and prices. Although success depends on a combination of appropriate
public and private policies and actions, Government must supply the required leadership and direction for its achievement.




A BALANCED 1960 BUDGET
The principal means by which Government can express leadership
in the effort to preserve price stability is to conduct its own financial
affairs prudently. The budget submitted to the Congress for the fiscal
year 1960, which balances expenditures with receipts at a level of $77
billion, seeks to fulfill this responsibility.
The expenditures estimated for fiscal 1960 are $3.9 billion less than
those estimated for the present fiscal year. A few items account for most
of this difference. First, an important part is accounted for by a nonrecurring expenditure of about $1.4 billion for the increased quota of the
United States in the International Monetary Fund, which is recommended
for the fiscal year 1959.
Second, during the current fiscal year the Federal National Mortgage
Association will purchase most of the mortgages for which commitments
were made under the housing legislation enacted in April 1958. Net purchases of mortgages under this special assistance program in fiscal 1960 will
be about $360 million less than in fiscal 1959.
Third, all the budget transactions in 1960 of the Federal National Mortgage Association, and those of the Export-Import Bank as well, are being
put on a self-sustaining basis by aligning new credit extensions more closely
with collections on outstanding credits and by sales of portfolio assets.
The resulting reduction in net budget expenditures between 1959 and 1960
will be over $300 million for the Federal National Mortgage Association
and almost $250 million for the Export-Import Bank.
Fourth, the expiration on April 1, 1959 of the law providing for a temporary extension of the duration of unemployment compensation payments
will result in a decrease of over $400 million in expenditures in the fiscal
year 1960.
Fifth, the termination of the acreage reserve will reduce expenditures in
the fiscal year 1960 by more than $700 million, although a partially offsetting increase will occur in the conservation reserve program.
Sixth, proposals will be made for rate adjustments to cover the costs
of operating the postal establishment, except for specified public services;
these proposals will lower budget expenditures by $350 million. This reduction, together with nonrecurring items affecting budget expenditures in
the fiscal year 1959—retroactive pay increases and higher payments for
transportation—account for the decrease of the postal deficit by $645 million
in the fiscal year 1960.
Seventh, the funding of retroactive pay increases to Federal civilian
employees, apart from the payments to postal employees mentioned above,
added some $250 million to expenditures. These payments were made
mainly in the fiscal year 1959 and do not recur in the new fiscal year.
Finally, expenditures of other Federal departments and agencies will
be reduced, to the extent that this is consistent with the satisfactory performance of their respective responsibilities.




49

Although the projected expenditures are lower in the aggregate, they
include increased outlays for many programs that support the growth of
our economy and assist growth elsewhere in the Free World. Outlays for
research and development will be increased over $600 million, with
emphasis on space exploration, peaceful as well as military uses of atomic
energy, and basic science. Federal expenditures to improve education,
especially in science and mathematics, will rise significantly. Federal
expenditures for the conservation and development of land and water
resources (including agricultural) will rise almost $200 million. All Federal
expenditures for civil public works—including grants to States, mainly
from the Highway Trust Fund—will be increased $700 million; at $5.2
billion, they will be higher than ever before. Larger expenditures are
estimated for other grants and long-term loans to foster community development. Expenditures by the Federal Aviation Agency, primarily for the
construction and operation of new facilities for the Federal airways system,
will increase almost $100 million. Programs will be proposed for assistance
to areas where unemployment that is considerably above the national average persists, and for grants to localities for the modernization of airports;
however, the latter will not affect expenditures until after the fiscal year
1960. Higher expenditures are expected for economic and technical cooperation under the Mutual Security Program, but because of a reduction
in the military assistance portion, expenditures for this Program as a whole
will be decreased.
The revenues projected in the 1960 budget are substantially higher than
those estimated for the current fiscal year, reflecting the confident expectation that economic recovery will be extended into the calendar year 1959
and beyond.
Certain actions by the Congress are needed to give effect to the 1960
financial plan. First, changes are required in the laws affecting Federal
revenues: the corporate income tax and excise taxes on automobiles and
parts, cigarettes, distilled spirits, and wines and beer should be continued
at their present levels for one year beyond June 30, 1959; a temporary
increase in the Federal motor fuel tax should be enacted to continue construction of the Interstate Highway System on a self-sustaining basis; the tax
on aviation gasoline should be raised, and a similar rate for jet fuels, now tax
free, should be enacted, to help pay the Federal cost of operating the airways;
and a revision in postal rates should be authorized. The Congress has been
requested to enact a permanent plan for the taxation of life insurance companies, and it will be asked to adjust present laws relating to the taxation
of cooperatives. The Congress will also be requested to specify the treatment processes which shall be considered as mining for the purpose of
computing percentage depletion allowances in the case of mineral products.
This amendment, prompted by court decisions and similar to that recommended last year for cement and clay products, would prevent an unintended




extension of depletion allowances to the sales price of finished products.
Recommendations will also be made for certain additional user charges.
Second, the Congress will be requested to grant wider administrative
authority for setting maximum interest rates for various credit programs
and to make certain adjustments in rates. These include the Veterans
Administration programs of home loan guaranties and direct home loans,
the rental (including armed services) and cooperative housing programs
of the Federal Housing Administration (Sections 207, 803, and 213 of
the National Housing Act), the college housing program of the Housing
and Home Finance Agency, the loan program of the Rural Electrification
Administration,, and ship mortgage loans of the Maritime Administration.
The flow of private funds into home construction and other types of building is restricted when market interest rates are high relative to the legally
prescribed ceiling rates; as a result, the volume of construction is restricted
and an increased part of its financing is shifted to the Federal Government.
Third, improvements are needed in the procedures by which appropriation bills arc enacted into law. The Congress will be requested to grant
the President authority to veto, or reduce the amounts for, specific items in
appropriation bills and in other bills authorizing expenditures.
OTHER GOVERNMENTAL FINANCIAL POLICIES
Acceptance by the Congress of the expenditure level of the 1960 budget
would be the most important single step in discharging Government's responsibility to help preserve the stability of prices and costs through prudent
management of its own financial affairs. Moreover, adherence to the
proposed expenditure program would provide an opportunity, as budgetary
results improve with economic recovery, to promote economic growth by
making a start on constructive tax reduction and reform. The growth of
the American economy was significantly aided by the 1954 tax changes.
But our tax burden remains heavy, and in important respects Federal taxes
are levied in ways that tend to weaken the incentives on which we mainly
rely for vigorous economic expansion. If our economy grows at the expected
rate, and if Government spending is held within the limits set in the proposed budget, a significant additional step in tax reduction and reform
can be taken in the reasonably foreseeable future.
Federal debt management policies are also pertinent to the achievement
of sustainable economic growth without inflation. In the formulation of
these policies, account must be taken of the necessarily far-reaching impact on the economy of the continual refinancing of large parts of the
present debt of $283 billion, of which $228.5 billion is held by the public.
The magnitude of this refinancing problem is indicated by the fact that
$49 billion of the marketable debt outstanding at the end of 1958, exclusive
of $24 billion of 13- and 26-week Treasury bills, will mature in 1959. This




is in addition to the cash borrowing in the market required by seasonal
needs and by the redemption of nonmarketable debt.
Insofar as possible, financial requirements will be met in ways designed
to reduce the frequency of Treasury issues and to improve the structure
of the debt. By offering securities which are attractive to investors outside
the banks, particularly to savings institutions, pension funds, individuals,
and other long-term investors, the Treasury can avoid undue reliance on
bank credit and thus assist, rather than interfere with, the exercise of
monetary policies appropriate to the maintenance of sustainable economic
growth and price stability. The 4 percent bonds due in 1980 that were
announced in January 1959 are an example of such offerings.
As indicated in Chapter 2, a large part of the financing of the 1959
deficit had already been completed by the end of the calendar year 1958
without impairing the effectiveness of monetary policy. Completion of
needed financing will bring the public debt to $285 billion before June
30, 1959, and it will be necessary to renew the request made of the Congress
last summer for a permanent debt limit of $285 billion—$2 billion higher
than at present. Adherence to the 1960 financial plan and receipt of
revenues as expected would obviate the need for a larger increase in the
permanent debt limit. But a temporary increase of an additional amount
will be needed to cover heavy borrowing requirements in the first half of
the next fiscal year. These borrowings would be repaid, however, before
June 30, 1960.
Finally, the maintenance of a framework of price stability requires the
avoidance of excessive extension of credit. Responsibility for monetary
and credit policies rests with the Federal Reserve authorities who have
independent status within Government. However, to help coordinate the
monetary and credit policies so determined with the economic and financial
policies of the Executive Branch of Government, frequent meetings of
principal officials have been held for the exchange of views. These meetings
have proved useful and will be continued.
ADDITIONAL GOVERNMENTAL ACTIONS To MAINTAIN PRICE STABILITY
Adherence to the financial plan presented in the 1960 budget and the
pursuit of appropriate monetry, credit, and debt management policies
would help attain rising production and employment at stable prices.
Governmental actions in other areas can also help to maintain price stability
as our economy expands.
First, the Congress is requested to amend the Employment Act of 1946 to
make reasonable price stability an explicit goal of Federal economic policy,
coordinate with the goals of maximum production, employment, and purchasing power now specified in that Act. Such an amendment would
strengthen Government's hand in restraining inflationary forces and would




help build a public opinion favorable to the adoption and vigorous application of needed measures. This amendment would make it clear that
Government is as determined to direct its policies toward maintenance of
price stability as it is to employ them in combating economic contraction.
Second, a Cabinet Committee on Price Stability for Economic Growth is
being established to follow governmental and private activities affecting
costs, prices, and economic growth; initiate studies by Government or by
groups of private citizens of price stability in relation to economic growth;
seek ways to enhance productivity in the American economy and to build
a better public understanding of the need for reasonable price stability in a
free society and of the conditions necessary to achieve this objective.
Third, a Committee on Government Activities Affecting Prices and Costs
is being established, to follow the operation of all relevant Federal programs,
including those involving procurement, construction, stockpiling, and commodity price support, and to make recommendations to the appropriate
departments or agencies or to the President for the administration of these
programs in line with the objective of reasonable price stability.
Fourth, questions concerning the level and movement of consumer prices,
changes in wage rates and earnings, and changes in productivity have assumed such significance in our economy as to require more and better statistics concerning them. Accordingly, the Bureau of the Budget has been
requested to accelerate programs for enlargement and improvement of
public information on prices, wages and related costs, and productivity.
ADDITIONAL MEASURES FOR ECONOMIC GROWTH
The Federal policies and actions outlined above will do much to assure
a vigorous growth of our economy, free from inflation. However, additional
measures should be taken by Government to promote the Nation's economic
strength and well-being.
Competition
The vitality of our economic system depends in large part on vigorous
competition, which would be enhanced by certain improvements in our
antitrust laws. The Congress is urged to act favorably on five proposals, as
follows: to authorize Federal regulation of the merger of banking institutions
accomplished through the acquisition of assets; to require notification to the
antitrust agencies when firms of significant size that are engaged in interstate commerce propose to merge; to grant the Attorney General power
to issue civil investigative demands under which the necessary facts may
be elicited when civil procedures are contemplated in antitrust cases; to
make cease-and-desist orders issued by the Federal Trade Commission for
violations of the Clayton Act final unless appealed to the courts; and to
authorize the Federal Trade Commission to seek preliminary injunctions
in merger cases where a violation of law is likely.

489916 O—59




5

53

Small Business
Legislative actions taken last year will greatly enlarge the opportunities
for the formation of new businesses and yield important benefits to existing
small concerns and to the economy generally. To facilitate the access of
small business concerns to capital and credit, the Small Business Administration was made permanent; its loan authorization was substantially
increased; and it was authorized to help State and local development companies extend financial and other aids to small businesses, and to license
and purchase the obligations of investment companies especially organized
to provide capital on a long-term debt and equity basis to small businesses.
Small concerns may also be expected to benefit from certain changes in
the tax laws enacted by the last Congress. These include ordinary-loss
rather than capital-loss treatment for losses incurred on the investment of
private funds in small business investment companies; similar treatment
of losses incurred by small business investment companies or by an original
investor in a small business concern (up to a limited amount) ; allowance
to small business investment companies of a 100 percent tax deduction for
intercorporate dividends received, rather than the 85 percent generally
permitted; provision of an additional depreciation allowance for the acquisition of new and used tangible personal property; the option for certain
small corporations of having their profits taxed directly, as if they were
partnerships; the option to pay estate taxes over a period of up to 10 years,
where the estate consists largely of investments in closely held business concerns; extension of the carryback of net operating losses from two to three
years; and an increase, from $60,000 to $100,000, in the minimum
accumulated earnings credit.
Other steps taken in 1958 include an Act to improve the opportunities of
small business concerns in obtaining Government procurement contracts,
and a new program of the Small Business Administration to facilitate the
sharing by small companies in Government research and development
contracts.
The Cabinet Committee on Small Business, which was established in
1956, continues to follow closely the position of small firms in the economy.
A recommendation made by the Committee in its Second Progress Report
is called to the attention of the Congress for favorable action, namely that
the Securities and Exchange Act be amended to extend the privilege of
the simplified Regulation A filings to a wider range of security issues.
Although significant benefits for small business concerns may be expected
from the actions already taken and from those proposed, the long-run health
of small concerns also requires an environment of satisfactory labor-management relations and opportunities to retain a larger share of business earnings. The first of these conditions would be advanced by enactment of
the proposals made below for changes in legislation governing labor-management relations. The second would be advanced by adherence to the
expenditure level proposed in the budget for the fiscal year 1960, which




54

would bring closer the time when additional steps can be taken to make our
tax system more conducive to economic growth.
Personal Welfare
Substantial progress has been made by the States in recent years in raising
the standards of the unemployment insurance system. Benefits have been
increased and their potential duration lengthened. Coverage has been
broadened to include more than four-fifths of all employees in nonagricultural establishments.
Still further improvements are necessary and desirable. Enactment of
legislation is requested to provide for extending the coverage of the system
to employees of firms having fewer than four workers; to make its benefits
available to employees of Federal instrumentalities, nonprofit organizations,
and certain other groups; to bring the provisions of the District of Columbia
system up to those recommended for the States; and to provide for extending
the system to workers in Puerto Rico. Benefits should be raised so that the
majority of covered workers will be eligible for payments equal to at least
half their regular earnings; and the maximum duration of benefits should
be lengthened to 26 weeks for any person who qualifies for any benefit and
who remains unemployed that long.
These steps would greatly enhance the contribution that the unemployment compensation system makes to our economy's capacity to resist
recession. During the recent recession, this system offset directly about onethird of the decline in wage and salary payments. Supplemented by temporary legislation providing longer duration of eligibility for employees who
exhausted their entitlement to benefits, unemployment insurance payments
substantially alleviated hardships arising from loss of income.
In an industrial economy, occupational accidents may result in hardship
for an employee and his dependents. It is therefore again recommended
that the States, which have primary responsibility, strengthen their systems
of workmen's compensation.
Certain legislative improvements are required in programs that lie within
Federal jurisdiction. Proposals will be made to the Congress to extend
the coverage of the Fair Labor Standards Act. Favorable consideration is
again requested for legislation to revise the ambiguous and outmoded provisions of the 8-hour laws applying to Federal and federally assisted construction projects and to carry out the principle of equal pay for equal work
without discrimination based on sex.
The Economic Report of 1958 outlined the responsibility of the Government to maintain a framework of laws to protect the basic rights of
the individual, to promote integrity in labor-management relationships,
and to foster better industrial relations. Proposed legislation to accomplish these purposes having failed of enactment, the Congress will again
be requested to require reporting and disclosure of financial dealings
between employers and employee representatives and their agents, and to




55

require public reports of union finances, organization, and procedures.
Requested legislation will also prescribe standards to promote democratic
procedures in union affairs, including the election of union officers, and
to correct abuses in the supervision of the affairs of subordinate bodies.
Modifications will be proposed in the law governing secondary boycotts,
organizational and recognition picketing, and representation elections, and
authority will be requested for the States to act in labor-management disputes where the National Labor Relations Board declines jurisdiction. Legislation will also be requested to correct shortcomings in the Welfare and
Pension Plans Disclosure Act enacted by the 85th Congress.
Area Assistance
Despite the forward economic strides of the Nation since the war, some
communities have suffered substantial and persistent unemployment, when
measured against national experience. Federal assistance to these communities is required not only to mitigate the hardships of individuals and
families but also to provide for the use of underutilized resources, to the
enhancement of the national welfare.
A program of assistance through development loans and through grants
for technical studies will be recommended to the Congress in order that these
communities may share in the general economic advance. By design and
administration, the program would seek to complement and reinforce community efforts to help themselves, to encourage maximum participation by
State and local agencies and private investment institutions, and to create
new job opportunities instead of merely transferring jobs from one locality
to another.
The program would also provide technical aid to towns heavily dependent
on a major industry and to rural low-income areas, to help them achieve
greater economic stability through diversification.
Agriculture
Recommendations will be made to the Congress by the Executive with a
view to reducing the cost of price stabilization operations, stopping the
increase of surplus stocks, and making progress in the reduction of accumulated supplies. Major revisions are overdue in the legislation relating to
these agricultural programs. In their present form, these statutes have the
effect of adding many billions of dollars annually to the Federal budget. Net
budget expenditures for agricultural price and income support increased
from an annual average of $3.5 billion during the fiscal years 1955-58 to
an estimated $5.4 billion in the fiscal year 1959.
What is more, experience has demonstrated that it is very difficult to
foretell reliably how much the Federal Government will be required to
expend in a given fiscal period under what are essentially open-end commitments for price support, a fact that greatly complicates the management
of the Federal Government's fiscal affairs.




56

Even these large expenditures have not brought farm output into line
with commercial demands at home and abroad while maintaining and
stabilizing farm income. Ever since the Korean conflict, the aggregate
output of our farms has exceeded these demands by subs antial amounts.
Steps taken to reduce surpluses while protecting farm incomes—Commodity
Credit Corporation support of prices at slightly declining minimum levels,
retirement of acreage from cultivation, and large exports under loan or
subsidy arrangements—have not succeeded in preventing an increase in
surplus stocks. By June 30, 1959, there will be a record carryover of 1.3
billion bushels of wheat, the equivalent of more than 2 years of domestic
requirements, and a carryover of 1.8 billion bushels of corn. Stocks of
cotton remain excessive; stocks of tobacco and rice are large; and if it were
not for the surplus disposal program, stocks of dairy products and of fats
and oils would be high.
The investment of the Commodity Credit Corporation in price supported
commodities is expected to rise to more than $9 billion by June 30, 1959,
and to almost $10.5 billion by June 30, 1960. To carry out existing commitments on price support activities will probably require use of most of the
Corporation's borrowing authority of $14.5 billion. Expenditures of the
Federal Government for storage, transportation, and interest on these surplus holdings are estimated at $850 million for the fiscal year 1959 and at
$1.2 billion for the fiscal year 1960.
The recent sharp increase in the cost of our agricultural programs is due
in part to exceptionally favorable crop conditions in 1958. But a major
part of the increase is due to the programs themselves. These are not
properly adjusted to the rapidity with which farm technology is improving.
Remedial legislation should be enacted without delay. Even though action
taken at this time can become effective only in the fiscal year 1961, steps to
bring the price stabilization expenditures of the Federal Government under
control and to reduce them materially are urgently needed.
Actually, the majority of farm people derive little or no benefit from our
agricultural price support legislation. Cattle ranchers, producers of poultry
and eggs, and growers of fruits and vegetables operate their farms today
practically without price supports. Only some 1.5 million of our commercial
farmers are the recipients of price support outlays in any material amounts,
and, within this group, those with the higher incomes are the main beneficiaries. More than 2.5 million farmers—whose annual sales are less than
$2,500 and who produce each year only about 9 percent of our marketed
farm products—receive only very small supplements, or none at all, to their
incomes from Government expenditures for price support.
Foreign Economic Policy
Next to maintaining the mutual security of the Free World, the chief
concern of the United States in its foreign economic policy is to promote
conditions favorable to the exchange of goods, services, technology, and




57

capital among nations, and to assist in economic growth and development. The efforts to rebuild and expand the economy of Western Europe
and Japan, to which we have contributed so much, have met with remarkable success. We can now look forward to increasingly effective participation by the industrial nations of Europe in the task of supplying credit
and investment capital, along with goods and services, to the less developed
areas of the world.
The United States will continue to share with friendly nations its advanced technology and the achievements of its scientific research in public
health, resource development, agriculture, industry, and commerce. This
policy will be continued through our technical assistance programs, as well
as through international agencies.
The impressive gains of the European economies have been accompanied
by efforts at removing hindrances to foreign trade. At the end of 1958,
the leading European countries made their currencies convertible for nonresidents. Simultaneously, the European Payments Union was replaced
by the European Monetary Agreement, which had been prepared by the
Organization for European Economic Cooperation several years earlier,
to become effective when currency convertibility measures were taken.
Although these countries have not given up their foreign exchange control,
their step implies the intention of proceeding further with the removal of
discriminatory controls and other import restrictions, beyond the liberalization measures adopted in recent months by the United Kingdom, France,
and others.
The European Economic Community of six continental countries, which
came into existence on January 1, 1958, has lowered duties by 10 percent
and liberalized quota restrictions as a first move in connection with the
development of its common market. Some of these concessions have been
extended to other countries.
The United States is favorably disposed toward such regional reduction
and eventual elimination of trade barriers; but as a signatory to the General
Agreement on Tariffs and Trade, it insists on the principle that such regional
arrangements must lead to the creation of more favorable trade relations
with other countries. The new authority provided by the Congress last year
by the four-year extension of the Trade Agreements Act will be used in
further efforts to reduce trade barriers on a reciprocal basis, and the enlarged
loan authority of the Export-Import Bank will promote United States
exports as well as contribute to economic growth abroad.
The increasing participation of other industrial countries in financing the
flow of trade and the development of industrially retarded countries is reassuring and welcome, inasmuch as additional economic resources are thus
brought into action. However, the task of financing sound and sustainable
economic development in large areas of Latin America, Africa, and Asia
is of such scope and urgency that it requires joint efforts. In this connec-




tion, the Government of the United States, together with other members of
the International Monetary Fund and the International Bank for Reconstruction and Development, is proposing that the resources of those institutions be enlarged. Special legislation will be proposed to the Congress.
The United States is exploring the feasibility of cooperating with other
countries in their efforts to establish regional agreements on freer trade
and economic development. An inter-American development banking
institution is under consideration. The United States has also expressed
its readiness to support a regional Arab development institution, should the
Arab states desire it and support it with their own capital. Also under
study is an International Development Association, which would be affiliated
with the International Bank for Reconstruction and Development and
would extend to less developed countries loans repayable wholly or partially
in the currency of the borrowing country. Requests for authorizations for
some of these programs will be submitted in due time to the Congress.
The Development Loan Fund, which began in 1958 to extend loans for
economic growth in less developed countries, needs additional obligational
authority.
Authorization for sales of surplus agricultural commodities for foreign
currency under Title I of Public Law 480 and for the donation of such
commodities for famine relief and other assistance under Title II expires
December 31, 1959. In view of the continued existence of heavy surpluses
of farm products and the desirability of using such stocks constructively, the
authority should be extended.
CONTINUING PROGRAMS FOR ECONOMIC GROWTH AND IMPROVEMENT
The need for new programs or for legislative changes in those already
in existence should not cause us to neglect the contributions to economic improvement that are made by continuing programs that return to the attention of the Congress only with respect to the amount of funds they annually
require or for occasional legislative revision.
Under the 1960 budget, the Federal Government will continue activities
which will strengthen the Nation in health, education, scientific development, transportation, and other important areas. The Federal Government's efforts will, of course, be supplemented by the efforts of State and
local governments and by countless private undertakings. This blend of
public and private action will enable us to take full advantage of the
opportunities that lie before us for an improvement in the level of living.
Nowhere are these opportunities more plainly registered than in recent
Census Bureau projections of population growth, which has proved a sure
avenue of economic progress in American circumstances. The lowest of
these new projections indicates a rise to 202.5 million persons by 1970,
from the present 175 million; the highest, a rise to 219.5 million. The
corresponding estimates for 1975 are 215.8 million and 243.9 million.




59

Projections for selected age groups suggest the magnitude of the developing demand for schooling. By mid-1962, children of elementary school age
(5-13 years) should number about 34.5 million, 3.3 million more than the
corresponding total for mid-1958; and the annual growth of this group
may exceed 1 million during the remainder of the 1960's. The number
of children of high school age (14-17 years), which was about 10.6 million
in mid-1958, may increase to 12.9 million by mid-1962 and to 15.9 million
by mid-1970. By 1962, the number of college-age persons (18-21) may
be about 10.7 million; in 1975, about 16.3 million, or twice the 1957 figure.
Education
To discharge fully their traditional obligation to the younger generation,
State and local governments will obviously have to increase their efforts
greatly to provide needed school buildings, equipment, and teachers, particularly for secondary education. State and private institutions will have
to do likewise to accommodate greater numbers of college and graduate
students.
In the areas of secondary and higher education, additional support is being
requested for the science and education programs administered by the
National Science Foundation and the Department of Health, Education,
and Welfare. Projected expenditures of the first of these agencies for science
education during the fiscal year 1960 are almost one-fifth greater than the
estimated expenditures for 1959 and four times the 1958 outlay. The increased expenditures would be made for graduate and faculty fellowships
and for training high school and college teachers of science and mathematics.
Further Federal assistance to secondary and higher education is provided
under the National Defense Education Act of 1958, through contributions to
student loan funds; matching grants to States for equipment needed in teaching science, mathematics, and foreign languages; fellowships for graduate
study; grants to States for guidance, counseling, and testing services; and
support of training programs for foreign language teachers. Two other
important features of the Act are the authorization of Federal financial
assistance to States for improving educational statistics, and the authorization of a unit in the Federal Government to provide or arrange for
abstracting, translating, and other services to improve the distribution
of scientific information.
Personal Security and Health
Programs designed to enhance personal security also contribute to the
Nation's economic strength and well-being. Protection from want in old
age, for families losing breadwinners, and for persons permanently disabled
is afforded by the Federal Social Security system. Broadening of the coverage of the Old Age, Survivors, and Disability Insurance program in recent
years to nearly 90 percent of all persons in paid employment, together with




60

the normal increase in the number of persons eligible for benefits, has increased benefit payments from $5.7 billion in 1956 to $7.3 billion in 1957, and
to an annual rate of $8.9 billion at the end of 1958. The increase in 1958
played an important role in helping to maintain the flow of incomes during
recession. Benefits are currently being paid to more than 12 million persons,
and the average monthly benefit for old age is approximately $66. Amendments adopted in 1958 increased benefit amounts, which had been practically unchanged since 1954, by 7 percent, effective in January 1959.
Taxes were also increased in order to strengthen the actuarial basis of
the program.
Federal contributions to State-operated public assistance programs in
behalf of the aged, the blind, the disabled, and dependent children will
continue to rise in fiscal year 1960. An Advisory Council authorized by
recent legislation is studying the appropriate distribution of financial responsibility between the Federal Government and the States.
Through the Rural Development Program initiated in 1955 and carried
forward through existing agencies under the guidance of an interagency
committee of the Federal Government, efforts are being made to aid farm
families most in need of assistance. The program now reaches more than
100 rural counties. Beneficial results in the form of increased job opportunities, improved farm practices, and higher standards of living are already
evident.
In the area of health, sharply increasing outlays have been made in recent
years for the medical research and training programs administered by the National Institutes of Health in the Department of Health, Education, and
Welfare. Sizable funds have also been expended to assist the construction of hospitals and health research facilities. Expenditures will increase
further in the fiscal year 1960. The budget also provides larger sums for
the enforcement of the food and drug laws, including administration of the
new chemical additives amendment enacted in 1958.
Construction and Transportation
The increase in population and changes in the location patterns of people
and industry will require greater public and private investment in fields
other than education. The formation of new families and the continuing
movement from cities will require additional residential construction and
places of worship and commercial and community facilities of all kinds,
including utilities. Responsibility for these undertakings rests largely on
private individuals and firms, but Government programs of loan insurance
and guaranty make an important contribution to home construction. The
effectiveness of these programs would be materially increased by favorable
action on the proposals made to the Congress to grant greater discretionary
authority to the Executive for determining maximum interest rates on certain insured, guaranteed, and direct loans. Other proposals for changes




61

in present laws affecting housing and home financing and the program of
Federal assistance to urban renewal projects will be made to the Congress.
Construction of Federal-aid highways, which form a vital part of the network of roads connecting our cities, is increasing rapidly. The interstate
highway program, enacted in 1956, authorizes construction of 41,000 miles
of limited-access roads linking 90 percent of all cities with 50,000 or more
inhabitants, as well as many smaller places along the way. The Federal
share of the cost is financed out of revenues obtained from highway users.
Proposals are being made to keep the program on this self-supporting basis.
In the calendar year 1958, total capital outlays for Federal-aid and all other
new highway construction reached $6.2 billion, about $600 million more
than in 1957 and about three and one-half times the outlay of a decade ago.
Still higher expenditures may be expected in the present calendar year and
in several succeeding years.
Recent legislation will also strengthen the air, rail, and waterway components of the Nation's transportation system. A unified Federal Aviation
Agency will allocate air space, develop and operate a common system
of navigation facilities for civil and military aircraft, and make and enforce
safety regulations for civilian aviation. The Transportation Act of 1958
and the repeal of Federal excise taxes on the transportation of property,
also enacted last year, will help improve the physical and financial condition
of the railroads.
The St. Lawrence Seaway, which will open in the spring, will provide
deep water transportation almost half-way across the continent, reducing
shipping costs and directly serving eight States that have almost two-fifths
of the population and constitute the agricultural and industrial heart of the
land. User tolls will make the Seaway, constructed with Federal funds
in a joint venture with the Canadian Government, a self-liquidating project.
Water Projects and Mineral Exploration
Many public and private programs are improving the Nation's base of
material resources. Water and related power projects under way will
facilitate the economic development of the Western states. Federal expenditures for such projects are much higher than they were a few years
ago, and further increases are expected in 1960 and 1961. Progress toward
economical conversion of saline to fresh water by chemical and other techniques will be assisted by 1958 legislation for the construction of demonstration plants and by increased appropriations for the fiscal years 1959 and
1960. Other contributions to the resource base are envisaged. In 1958,
legislation authorized a continuing program of assistance to minerals exploration. The Congress is requested to enact a long-range program for
conservation of the Nation's supply of helium gas, encouraging maximum
private participation in, and financing of, this endeavor.




Research and Development
The Nation's technological base is being strengthened by Government programs in support of scientific research and development. Many of these
programs, though undertaken initially or primarily to maintain the Nation's
military might, contribute increasingly to peaceful technology. Thus, the
billions of dollars spent annually for military research and development are
extending the horizons of civilian industry, providing experience for professional and other skilled workers, and expanding private opportunities for
investment in new materials, processes, and products.
The benefits to be derived from research and development activities can
be enhanced by closer working relations between Government and private
interests. Large companies and universities already participate extensively
in Government contract or Government-supported research, supplementing
the substantial endeavors conducted on their own account. The research
capabilities of small companies are necessarily limited, but many small
firms have formal programs under way and some have achieved notable success. Explicit provision for the encouragement of research—direct and
Government contract—by small businesses was made in the 1958 revision
of the Small Business Act.
Most current research and development activity involves the useful application of known principles rather than the search for new avenues of fundamental advance. Greater attention can appropriately be given by private
enterprise to the advantages obtainable from basic research. Meanwhile,
Government expenditures for basic research are rising. For all agencies,
they will amount to about $500 million in the fiscal year 1960. In the same
year, expenditures by the National Science Foundation for basic research
will be about one-third above the figure for 1959 and more than double
that for 1958.
In the field of atomic energy, important strides have been taken toward
the adaptation of military technology to peaceful uses. A full-scale prototype atomic power reactor was operated in 1958, and other plants, of commercial size, are being planned and built under cooperative industry-Government arrangements. The wider industrial, agricultural, and medical use
of radioisotopes and radiation sources is being stimulated. Incentives are
being provided to private organizations for the commercial undertaking of
activities heretofore performed only by the Government. Technical and
financial assistance is being given to the European Atomic Energy Community, and through bilateral agreements to separate nations, in the development of power reactors and provision of small-scale reactors for research
and training. Other efforts are being made through the International
Atomic Energy Agency and through diplomatic negotiations to realize more
fully for the world the peaceful possibilities inherent in nuclear fission. And
progress is being made in cooperative international research on the generation of electric power by the controlled release of fusion energy—a project
which, if successful, promises great benefits to mankind.




63




Appendix A

SUMMARY OF RECOMMENDATIONS IN
THE ECONOMIC REPORT OF
THE PRESIDENT







Summary of Recommendations in the Economic
Report of the President
I. GOVERNMENT FINANCIAL POLICIES
a) Continue for one year beyond June 30, 1959, the present tax rate on
corporate income and the excise taxes on automobiles and parts, cigarettes, distilled spirits, and wines and beer. [Page 50]
b) Increase temporarily the Federal tax on motor fuels, raise the tax on
aviation gasoline, and impose a similar tax on jet fuels. [Page 50]
c) Authorize a revision in postal rates. [Page 50]
d) Enact a permanent plan for the taxation of life insurance companies
and adjust the present laws relating to the taxation of cooperatives.
[Page 50]
e) Specify the treatment processes which shall be considered as mining for
the purpose of computing percentage depletion allowances in the case of
mineral products. [Page 50]
f) Grant wider administrative authority in setting interest rates and make
certain adjustments in rates for various credit programs, as follows:
Veterans Administration programs of guaranteed and direct home loans;
Federal Housing Administration programs of rental (including armed
services) and cooperative housing (Sections 207, 803, and 213 of the
National Housing Act) ; the college housing program of the Housing and
Home Finance Agency; the loan program of the Rural Electrification
Administration; and the ship mortgage loan program of the Maritime
Administration. [Page 51 ]
g) Provide the President with authority to veto or reduce the amounts for
specific items in appropriation bills and in other bills authorizing expenditures. [Page 51]
h) Raise the permanent debt limit by $2 billion, to $285 billion, and
authorize a further temporary increase for the fiscal year 1960. [Page 52]
II. MEASURES To PROMOTE ECONOMIC GROWTH WITH PRICE STABILITY
a) Amend the Employment Act of 1946 to make price stability an explicit
goal of Federal economic policy. [Page 52]
b) Extend Federal regulation to bank mergers accomplished through the
acquisition of assets. [Page 53]
c) Require notification to the antitrust agencies of proposed mergers by
businesses of significant size engaged in interstate commerce. [Page 53]




d) Empower the Attorney General to issue civil investigative demands in
antitrust cases when civil procedures are contemplated. [Page 53]
e) Make Federal Trade Commission cease-and-desist orders final when
issued for violations of the Clayton Act, unless appealed to the courts.
[Page53]
f) Authorize the Federal Trade Commission to seek preliminary injunctions
in merger cases where a violation of law is likely. [Page 53]
g) Amend the Securities and Exchange Act to extend the privilege of
Regulation A filings to a wider range of security issues. [Page 54]
h) Enact a program that will provide assistance, through development loans
and grants for technical studies, to communities that have suffered substantial and persistent unemployment; and technical aid for the diversification of rural low-income areas and of towns heavily dependent on a
major industry. [Page 56]
i) Enact a long-range program to conserve helium gas. [Page 62]
III. PERSONAL WELFARE
a) Provide for extending the coverage of the Federal-State unemployment
insurance system to employees of firms having fewer than four workers,
to employees of Federal instrumentalities, nonprofit organizations and
certain other groups, and to workers in Puerto Rico. [Page 55]
b) Bring the provisions of the District of Columbia unemployment insurance
system up to the standards recommended for the States. [Page 55]
c) Strengthen State systems of workmen's compensation. (State responsibility.) [Page 55]
d) Extend the coverage of the Fair Labor Standards Act. [Page 55]
e) Improve the 8-hour laws applicable to Federal and federally assisted
construction projects. [Page 55]
f) Carry out the principle of equal pay for equal work without discrimination based on sex. [Page 55]
g) Require reporting and disclosure of financial dealings between employers
and employee representatives and their agents, and the filing of public
reports on the status of union finances, organization, and procedures.
[Pages 55-56]
h) Prescribe standards to promote democratic procedures in union affairs.
[Page 56]
i) Modify the law governing secondary boycotts, organizational and recognition picketing, and representation elections; and provide that States be
given jurisdiction in labor-management disputes where the National
Labor Relations Board declines to exercise authority. [Page 56]
j) Correct shortcomings in the Welfare and Pension Plans Disclosure Act.
[Page 56]




68

IV. FOREIGN ECONOMIC POLICY
a) Enlarge the resources of the International Monetary Fund and the
International Bank for Reconstruction and Development. [Pages 58-59]
b) Provide additional authorization for the Development Loan Fund.
[Page 59]
c) Extend the authority for sales of surplus agricultural commodities for
foreign currencies and for the donation of such commodities for famine
relief and other assistance. [Page 59]

489916 0—59




6

69




Appendix B

REPORT TO THE PRESIDENT ON THE




ACTIVITIES OF THE COUNCIL
OF ECONOMIC ADVISERS
DURING 1958




Letter of Transmittal
DECEMBER 30, 1958.
The PRESIDENT.
SIR: The Council of Economic Advisers submits this Annual Report for
calendar year 1958 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.
KARL BRANDT.
PAUL W. McCRACKEN.

73




Report to the President on the Activities of the
Council of Economic Advisers During 1958
The Council's attention in the early months of 1958 was focused largely
on measures to help arrest the economic decline; after April, attention was
directed increasingly to measures that would help promote a sound recovery
in the economy and a high and sustainable rate of long-term expansion.
Through its Chairman, the Council kept the President informed of economic developments and their policy and program implications. The
Chairman attended all Cabinet meetings and reported frequently to the
Cabinet on economic developments and policy. The Chairman also attended, on direction of the President, all meetings of the National Security
Council at which economic questions were discussed.
The Council was called upon frequently during the year to appraise
proposals for legislative or administrative actions, with special regard to the
effect they might have on the growth and stability of the economy. Through
its membership on interdepartmental committees and task forces, and
through frequent consultation with Government and private agencies, the
Council participated in the formulation of policies affecting economic
growth and stability. A Council member serves on the Council on Foreign
Economic Policy and the Civil and Defense Mobilization Board. The
Chairman of the Council is also Chairman of the Cabinet Committee on
Small Business and serves on the President's Special Committee on Financial Policies for Postattack Operations. Council staff members serve on
ad hoc committees of the latter committee. The Council conferred frequently with the State Department on foreign economic questions, and its
senior staff economist on international economic matters attended most
meetings of the National Advisory Council on International Monetary and
Financial Problems.
The Council participated in a number of international meetings during
the year and continued its cooperation with various international agencies.
In April a member of the staff participated in the Thirteenth Plenary
Session of the United Nations Economic Commission for Europe held in
Geneva, Switzerland; and a member of the Council, accompanied by
senior staff economists, attended two meetings under the auspices of the
Organization for European Economic Cooperation (OEEC) in Paris. In
July, the Council submitted a Survey of Economic Developments in the
United States for the Annual Review of the OEEC; and in February, it
submitted responses to the United Nations' annual questionnaire on eco-




75

nomic developments and policies. In December, a member of the Council
staff participated in a meeting of the "Economic Experts" group of the
OEEC, held in Paris. Two members of the staff met frequently with
foreign groups studying in this country under the auspices of the International Cooperation Administration.
During the year, the Council met with representatives of business concerns, financial houses, and consumer organizations, and representatives of
farm and other groups to discuss business conditions, the economic outlook,
and policy questions relating to the economy's growth and stability. The
Chairman participated in the semiannual meetings of the Business Advisory
Council of the Department of Commerce, and a staff member attended
meetings of the technical consultants to that body.
In accordance with the Employment Act, the Council assisted the President in the preparation of the annual Economic Report. This Report, which
is transmitted to the Congress in January, reviews the economic developments of the past year, including the steps taken by Government to promote
the economy's growth and stability; appraises the current position of the
economy and the outlook for the year ahead; and makes recommendations
to the Congress and suggestions to the States, local communities, and private groups for actions and policies to help-achieve the goals set forth in the
Employment Act. It also includes an extensive appendix of statistical information bearing on the United States economy.
Twenty-nine thousand copies of the January 1958 Economic Report of
the President were published, of which half were sold to the public through
the Superintendent of Documents. Copies were supplied to all members
of the Congress and were made available to depository libraries throughout
the country.
The Council also prepares Economic Indicators, a monthly compendium
of current economic statistics. This widely used periodical is published by
the Joint Economic Committee of the Congress. Like the Economic Report of the President, it is distributed to all members of the Congress and
to depository libraries. An additional 6,500 copies of Economic Indicators
go to paying subscribers.
Council Membership
The present members of the Council are Raymond J. Saulnier, Paul W.
McCracken, and Karl Brandt.
Dr. Saulnier, Professor of Economics on leave from Barnard College,
Columbia University, and from the National Bureau of Economic Research,
where he is Director of the Financial Research Program, has served as a
consultant to the Council from 1953 to 1955, as a member of the Council
since April 1955, and as Chairman since December 1956.
Dr. McCracken, Professor of Business Conditions on leave from the
School of Business Administration, University of Michigan, has served as




a member of the Council since December 1956 and previously as a member
of the senior staff.
Dr. Brandt was designated a member of the Council, on an interim
appointment basis, in November 1958. He is Professor of Agricultural
Economics on leave from Stanford University, where he is Associate
Director of the Food Research Institute. Dr. Brandt's name will be transmitted to the Senate for confirmation when the Congress convenes in January 1959.
Joseph S. Davis, Professor Emeritus of Stanford University and formerly
Director of the Food Research Institute at tjiat University, resigned his
membership on the Council in October 1958. Dr. Davis had served as
a member of the Council from May 2, 1955.
Council Staff
The Council has a staff of 29 persons, of whom 14 are senior economists
and statisticians. Each senior staff member is assigned one or more areas for
special attention, and cooperates with other Government agencies and with
business, labor, and other private groups in analyzing and evaluating economic developments. Two of the members are on leave from university
faculties; all others are permanent employees. Supplementing its fulltime staff, several university economists serve the Council occasionally as
consultants. The present members of the senior staff are Bernard S. Beckler,
Henry W. Briefs (on leave, Georgetown University), Samuel L. Brown,
Robert C. Colwell, Frances M. James, Marshall A. Kaplan, Hal B. Lary,
David W. Lusher, John A. Schnittker (on leave, Kansas State College),
Charles L. Schultze, Irving H. Siegel, Walter F. Stettner, Collis Stocking,
and Charles A. TafT.
Advisory Board on Economic Growth and Stability
The Advisory Board on Economic Growth and Stability, which meets
weekly under the Chairmanship of the Chairman of the Council, was established by the President in 1953 to advise with the Council on matters
affecting the growth and stability of the economy. 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—Frederick H. Mueller, Under Secretary
Department of Labor—James T. O'Connell, Under Secretary
Department of Health, Education, and Welfare—Bertha Adkins,
Under Secretary
Board of Governors of the Federal Reserve System—Abbot L. Mills,
Member of the Board
Bureau of the Budget—Roger W. Jones, Deputy Director




77

Export-Import Bank of Washington—Samuel C. Waugh, President
The White House Office—Don Paarlberg, Special Assistant to the
President
Council of Economic Advisers—Raymond J. Saulnier, Chairman
Budget for Fiscal Year 1959
For the fiscal year 1959, the Congress appropriated $375,000 for the
Council's activities. A supplemental budget request for $20,000 is being
made to cover part of the cost of increased salaries due under the terms of
the Federal Employees Salary Increase Act of 1958.




Appendix C
SOME MAJOR ECONOMIC DEVELOPMENTS
IN 1958
I. Employment and Earnings
II. Prices
III. Agriculture
IV. Financial Developments
V. Government Finances
VI. United States Foreign Trade and Payments




79




I. Employment and Earnings
Recession and recovery in 1957 and 1958 were clearly reflected in the
Nation's labor markets. Employment declined sharply in late 1957 and
early 1958. Recovery began in May and continued through the end of the
year. Unemployment, which had increased to the highest levels since World
War II, declined significantly after August 1958. Unemployment benefits,
particularly in view of the longer duration of eligibility made possible by
special temporary legislative action, played a major part in counteracting the
reduction of wage income. Despite the fall of employment and the rise of
unemployment, wage rates and hourly earnings continued to advance.
Real weekly earnings declined through April, but recovered as the workweek
was lengthened and as prices stabilized. Though infrequent for most of
the year, labor disputes increased sharply in late autumn.
EMPLOYMENT
Total employment in nonagricultural establishments, as estimated from
employers' payroll records, began to recede in August 1957, and by April
1958 it had fallen by 2.4 million, seasonally adjusted. Four-fifths of the
reduction was in manufacturing, mining, and transportation, although these
industries account for only two-fifths of nonfarm employment. The decline
was halted in April, and employment began to rise moderately in May. The
expansion continued to the end of the year, although delayed in October and
November by labor disputes. In December, employment on nonfarm payrolls was 50.7 million, an increase of 700,000 from the April low figure.
Part of the decline of nonfarm payroll employment during the recession
was due to less extensive dual jobholding and to reduced labor turnover,
as well as to the fall in the number of employed persons. Monthly estimates of the Bureau of the Census based upon household sample surveys
indicated a drop of 1.3 million from July 1957 to April 1958 in the number
of persons having nonfarm wage and salary jobs as their primary activity,
compared with a total reduction of 2.4 million estimated by the Bureau
of Labor Statistics from employer payroll records. All of this difference
cannot be accounted for, but part of it is doubtless due to the fact that
persons holding two jobs, or moving from one job to another and therefore
receiving pay from more than one employer, are counted only once in the
household surveys but twice in the payroll records. The smaller decline of
the Census estimates thus in part reflects the lessened dual jobholding and
reduced labor turnover shown by other surveys.




81

Employment began to recede in several important industrial sectors
before the general downturn in business that started after the middle of
1957. Moderate reductions commenced in the construction industry, in
transportation, and in nondurable manufacturing as early as the middle
of 1956, and in durable goods manufacturing after the end of that year.
However, until mid-1957, these declines were more than offset by continued increases in nonmanufacturing sectors, especially in trade, in State
and local government, and in financial and service industries. But in the
late summer of 1957, reductions appeared in mining, communications, and
trade, and the downward trend in employment in construction continued.
TABLE C—1.—Changes in nonagricultural employment since December 1956
[Thousands of persons, seasonally adjusted data]
Change
Major industry group
December
1956 to
July 1957
Nonagricultural employment: 2 . _ .

Julv 1957
to April
1958

April 1958
to December 1958 »

213

Nondurable goods
Food and kindred products
Tobacco manufactures-. _. . .
_ .
_. .
Textile-mill products
Apparel and other finished textile products .
Paper and allied products
Printing, publishing, and allied industries . ._ .. . ..
Chemicals and allied products
Products of petroleum and coal. .
.
._
Rubber products
Leather and leather products
Mining
Contract construction
Transportation and public utilities

.

424

— 1,327

374

—6
-29
0
— 16
-37

—7
-68
— 40
-48
-252

13
38
18
29
. 82

3
— 17
20
— 77
o
—5

-143
-244
-157
-302
-26
—40

49
—23
56
98
7
7

— 60

Ordnance and accessories
Lumber and wood products (except furniture) _ Furniture and fixtures
Stone, clay, and glass products
Primary metal industries. _ _ ... . ._ _ .. . .
Fabricated metal products (except ordnance, machinery,
and transportation equipment)
Machinery (except electrical)
Electrical machinery. ..
_ . ._. .._ . _ . _ _ . .
Transportation equipment
Instruments and related products... . ... _ ... .
Miscellaneous manufacturing industries

682

— 1 633

-157

Durable goods

-2,410

—217

Manufacturing

—306

50

—39
-7
— 11
7

-32
-1
-87
-69
-19
-4
-30
-9
-28
-27

—22
-3
11
31
3
-1
—1
-4
13
23

-3
14
-3
A

—6
17
— 70
-12

-105
-223
-273

-15
—74
-26

-32
14
6

-241
-29
-3

10
—36
0

Wholesale and retail trade

122

-318

Wholesale trade Retail trade.

59
63

-77
-241

-12
62

24
170
179

7
-43
178

28
94
201

13
166

-58
236

62
139

Transportation
Communication
Public utilities .

.

. . . ..

. - ...

Finance, insurance, and real estate
Service and miscellaneous
Government
. . . . .
Federal
State and local

.

i
. 1
1
.

1
2

Based on preliminary data for December.
See Table D-22, footnote 1, for type of workers included.
Source: Department of Labor.




.

82

50

By the fourth quarter, the contraction had become quite general, and
it was accelerating in most manufacturing industries, with particularly
sharp reductions in firms producing primary metals, transportation equipment, and machinery. Steeper declines took place in the first quarter of
1958 in transportation and in construction. In financial and service industries, on the other hand, the hitherto steadily rising employment trend
merely leveled out for several months, and in State and local governments,
the strong employment uptrend was completely unaffected by the recession
(Table C-l).
Employment cutbacks were heaviest for hourly-rated production jobs in
manufacturing industries. The number of such jobs declined by 1.5
million, or 12 percent, from July 1957 to April 1958, while "nonproduction"
or salaried jobs declined by 100,000, or about 3 percent. The recovery of
manufacturing employment since late spring has been due almost entirely
to an expansion of production work; salaried employment has risen only
slightly since that time.
The occupational groups in general civilian employment that were most
affected by the recession were operatives and related workers, and craftsmen and foremen (Table C-2). The employment of professional and
technical personnel, which has followed a strong upward trend in recent
years, continued to increase, rising by 400,000, or around 7 percent, between
1957 and 1958.
Contraction of employment was very rapid in the early months of 1958,
and was aggravated by especially unfavorable weather in February and
March. Some signs of recovery appeared in April, however, as the number
of jobs began to increase in construction and firmed in nondurable manufacturing. In late spring and summer, the recovery spread to durable
goods manufacturing, trade, and service and financial enterprises, and by
TABLE C-2.—Civilian employment, by major occupational group,
1947, 1957, and 1958
[Thousands of persons 14 years of age and over]
Major occupational group
Emplovment-

- .. .-.

1947

._

1957

1958

Change,
1957 to 1958

..-

57, 843

65, 016

63,907

— 1, 109

Professional, technical, and kindred workers
Farmers and farm managers
Managers, officials, and proprietors, except farm
Clerical and kindred workers
Sales workers
- - Craftsmen, foremen, and kindred workers
Operatives and kindred workers
Private household workers
Service workers, except private household
Farm laborers and foremen
Laborers, except farm and mine

3,794
4,995
5,795
7, 200
3,394
7,754
12, 274
1,730
4,256
3,124
3,526

6, 468
3,329
6,703
9, 152
4,128
8,664
12, 530
2,098
5,534
2,730
3, 680

6 893
3,128
6,727
9 124
4, 105
8,487
11 464
2,210
5,571
2 529
3,669

425
— 201
24
— 28
—23
-177
— 1 066
112
37
— 201
— 11

Note—Annual figures shown above are averages of data for January, April, July, and October, since data
prior to 1958 are available only for these months. The data represent total employment of the civilian labor
force and, therefore, include proprietors and self-employed persons. See Current Population Reports,
Series P-57, Xo. 193, Table 15, for list of workers included in each group.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.




August employment was expanding moderately in most of the principal
sectors of the economy.
Extensive work stoppages in the automotive and other hard goods manufacturing industries retarded the increase of employment in the final quarter
of the year. The number of employees involved in labor disputes, which had
remained very low until September, rose abruptly to more than 500,000 late
in that month, rose further to 525,000 in October, and was 300,000 in
November. These stoppages substantially afTected the recovery of employment in the final quarter of the year through their indirect effects on supplying industries, as well as by their immediate impact on the workers and
firms directly involved.
Employment in agriculture, where trends are especially difficult to
estimate over short periods, appears to have been unaffected by the
recession. The Department of Agriculture estimates that total employment
on farms was virtually unchanged in 1958. The Census Bureau, using
different definitions and procedures, reports farm employment reduced by
6 percent from 1957 to 1958 (Tables D-17 and D-65).
UNEMPLOYMENT
Unemployment, which for two years had fluctuated narrowly around
2.8 million, or 4.2 percent of the civilian labor force, began to rise moderately, after adjustment for seasonal factors, in the third quarter of 1957.
As employment fell more sharply toward the end of the year, and as the
labor force continued to grow, unemployment increased more rapidly and
in April 1958 exceeded 5 million. This high level of unemployment, seasonally adjusted, persisted until September, when substantial reductions
began. By December 1958, unemployment had declined to 4.1 million, a
seasonally adjusted rate of 6.1 percent of the labor force.
The 4.0 to 4.4 percent ratio of unemployment to the civilian labor
force that prevailed from the summer of 1955 to the third quarter of 1957
was considerably higher than that which prevailed before the onset of the
1953-54 recession, and was somewhat higher than before the downturn in
1948. The reductions of employment in 1957 and early 1958 resulted^
therefore, in rates of unemployment higher than those reached in the two
prior recessions since World War II. However, both the recovery of
employment and significant reductions of unemployment commenced relatively earlier than in 1949 or in 1954; in December, the rate of unemployment was not much different from that in the corresponding period of the
1948-50 recession and recovery, although still above the rate of the 1953-54
period.
A large part of the unemployed are a swiftly changing group, during
recession as well as in more prosperous times. Although total unemployment rose steeply from December 1957 to April 1958, an average of a
million or more previously jobless workers were able to find work each
month. However, about three-fifths of those unemployed in any month




were still unemployed in the following month, and slower rates of hiring
and rising layoffs rapidly increased the number of those out of work 15
weeks or more, from 490,000 at the outset of the recession to 1.9 million
in April 1958. In September 1958, the recall of workers who had been
laid off in manufacturing industries brought the first significant reduction
of long-term unemployment. Substantial reductions, after allowance for
seasonal factors, continued in the final months of the year.
Because the decline in unemployment was most severe in durable goods
manufacturing and related industries, the impact upon the working population was quite uneven. Of the total increase of 2.4 million jobless persons
from April 1957 to April 1958, by far the greater part were men, their
numbers rising by 1.7 million, or 93 percent. Men from 20 to 34 years of
age were especially affected, and the rate of unemployment for married
men living with their families—that is, for those most likely to be strongly
attached to the labor force—rose from 2.3 percent in July 1957 to.a peak
of 6.5 percent in March 1958. In the spring and summer, employment opportunities improved, and the rate of unemployment diminished for heads
of families to 4.8 percent by the end of the year. Unemployment among
women also rose substantially, but not to the same extent as among men.
Durable goods manufacturing industries accounted for about one-third of
the total rise of the jobless, and rates of unemployment among durable goods
workers reached 12 percent in April 1958; they were especially high in
industries manufacturing primary metals and transportation equipment,
rising to 13 percent and 14 percent, respectively. Large increases also
occurred in the railroad industry, in mining, and in construction. Service
industries, government, and public utilities were least affected.
The uneven effect of the recession on the different areas of the country
is shown by the statistics of insured unemployment (Table C-3). By April
1958, rates of insured unemployment were 7 percent or more in New England, many of the Middle Atlantic and North Central States, and California, and were more than double the rates in the previous year. In Michigan, Ohio, and West Virginia, the rates had at least tripled. In several
Southern and Western States, however, insured unemployment remained
below 5 percent of covered employment. Of the Nation's 145 principal
labor market areas, the number having "substantial labor surpluses" increased from 21 in July 1957 to 86 by July 1958 and then declined to 80
in November, according to surveys by the Bureau of Employment Security.
However, reduced unemployment and an improved employment outlook
were evident in ?1 labor market areas during the second half of the year.
More than four-fifths of nonagricultural wage and salary workers are
covered by the system of unemployment insurance. Consequently, benefit
payments increased rapidly during the recession and partially compensated
for the wage loss to the employee and his family. While the provisions of
the unemployment insurance system still fall short of the President's recommendations, unemployment benefit payments rose from an annual rate
85
489916 O—59—-7




TABLE C—3.—Insured unemployment under State and Federal employee programs,
April 1957 and April 1958
Insured unemployment
as percent of covered
employment

Insured unemployment'
State

Week
ended
April 13,
1957

Week
ended
April 12,
1958

Increase,
1957 to
1958 2

Thousands

Week
ended
April 13,
19573

Weei:
ended'
April 12,
1958*

Percent

United States

1,486

3,333

1,877

3.7

8.1

Alabama
Arizona
Arkansas
California
Colorado

23
6
19
125
6

48
13
30
325
14

24
7
11
200
8

4.4
3.1
7.1
3.5
2.1

8.3
6.4
1.1.2
8.6
4.3

21
3
5
13
27

63
7
9
35
52

42
4
4
22
25

2.8
2.4
1.2
1.9

8.1
5.5
1.9
4.5
6.7

5
68
37
10
11

7
178
93
17
20

2
110
56

4.8
2.5
3.3
2.5
3.0

6.1
6.4
8.2
3.8
5.2

37
16
12
14
57

67
30
30
48
124

7.8
2.9
6.0
2.0
3.7

14.0
5.2
14.3
6.5
7.9

87
35
17
31
9

297
57
24
65
13

210
22
6
33
4

4.5
5.4
7.3
3.3

15.2
8.6
9.2
6.5
10.5

7
3
7
75
4

16
153
7

2
4
9
78

3.5
3.8
4.9
4.9
2.9

4.2
9.0
11.0
9.7
4.7

215
22
2
158
15

3.8
5.6
6.3
2.5
3.6

7.8
7.9
8.3
8.4
6.9

11
180
8

5.9
5.1
7.6
3.9
3.7

8.5
10.6
10.6
5.7
4.0

Connecticut
Delaware
District of Columbia
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas

_

_

Kentucky
Louisiana
Maine
Maryland
Massachusetts

_

Michigan
Minnesota
Mississippi
Missouri
Montana

_

Nebraska
Nevada
New Hampshire
New Jersey
New Mexico

—

New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas..
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

184
46
4
65
14

_

_

_
_

21
167
19
15
3

32
347
27
24
3

39
34
5
3
12

_

___

223
28

62
80
11
6
32

6.1
2.0
2.7
4.0
1.8

9.2
4.4
5.6
8.1
4.4

28
13
24
2

52
52
53
4

4.5
3.7
2.9
3.3

8.1
13.6
6.2
6.8

1

Represents the number of unemployed workers covered by unemployment insurance programs who havo
completed at least 1 week of unemployment. Excludes territories.
2
Based on unrounded data.
s Based on average covered employment for 12 months ended June 1956.
4
Based on average covered employment for 12 months ended June 1957.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Labor.




86

(seasonally adjusted) of $1.7 billion in July 1957 to $4.3 billion in April
1958, thus directly offsetting nearly one-third of the decline in total wage
and salary payments, and providing benefits for the laid-off employee averaging $30 to $37 per week in the principal industrial states. Private supplementary unemployment benefit plans, which raised the level of benefits
for the unemployed in certain industries, also helped to maintain incomes.
As in earlier recessions, the number of beneficiaries exhausting their
regular entitlement to benefits began to rise rapidly a few months after the
onset of recession. Starting at 82,000 per month in September 1957, these
exhaustions increased to a peak of 285,000 in July 1958. Legislation recommended by the President and enacted by the Congress provided, by
means of agreements with the States, for the payment of benefits for additional periods to persons still unemployed who had exhausted their regular benefits. States participating in the program, or otherwise extending
the duration of benefits, accounted for 70 percent of covered employment.
Unemployed persons claiming benefits under this temporary program
reached a maximum of 658,000 in August 1958, and then declined to less
than 400,000 by the end of the year. Extended unemployment benefit
payments amounted to approximately $390 million during 1958.
The months of recession also affected other social security and public
assistance programs, even though these are less closely related to employment trends than unemployment insurance. Total recipients of aid to
dependent children increased more sharply than in previous years. Cases
of "General Assistance"—relief provided from State and local funds where
applicants are not eligible for federally assisted programs—also increased
more in late 1957 and early 1958 than would be expected for seasonal
reasons.
HOURS WORKED AND EARNINGS
The average workweek of production workers in manufacturing industries declined moderately during the first half of 1957, and sharply from
September 1957 through February 1958. It then turned upward and
advanced through the rest of the year. Gross average hourly earnings,
which had leveled out at $2.11 in the final months of 1957, remained practically unchanged through April 1958, but then rose at a quickening pace
during the second half of the year, reaching $2.19 in December. Hourly
earnings, excluding premium pay for overtime, continued to rise throughout the year. Average weekly earnings, reflecting both changing hours
and changing rates, declined from September 1957 to February 1958, but
by June they had recovered all of their lost ground, and at $88.04 in
December were $5.30 above earnings a year earlier. In terms of real
purchasing power, weekly earnings continued to decline through April
1958, but recovered sharply by the end of the year, as the workweek was
lengthened and as consumer prices stabilized.
The manufacturing workweek and the amount of overtime worked
began to recede early in 1956 from the high levels of 1955, and declined




87

gradually until September 1957, when the contraction became sharper.
The low point was reached in February 1958 when average hours of work
were lower (seasonally adjusted) than at any time since World War II.
An upturn occurred in March, before the beginning of the recovery of
employment. This development is typical of periods of recovery. When
demand improves, production is first increased by lengthening the workweek, and later by adding employees.
Reduced overtime tends somewhat to counteract, in recession periods,
the continued rise of basic wage rates. In February 1958, when overtime
had been minimized and the workweek was shortest, gross average hourly
earnings in manufacturing were 2.4 percent above the level of February
1957, while average straight-time earnings were 3.5 percent higher. The
continued rise in basic wage rates in 1958 is reflected in the index of hourly
earnings excluding premium pay for overtime and adjusted for interindustry shifts of employment (Table C-4).
Reduced hours of work and less overtime, and the continued rise of consumer prices, resulted in a persistent decline of real weekly earnings in 1957
and through April 1958, despite the rise of basic wage rates. However,
this tendency was reversed by the increase in hours of work and by the
tendency of prices to stabilize after the middle of 1958. By the end of the
year, real weekly wages had recovered nearly all of the ground lost since
the record rates of late 1956.
Pay rates of armed forces personnel, and of salaried civilian employees
of the Federal Government, which had been unchanged since early in 1955,
were increased by about 10 percent, on the average, during 1958. The
increases were made retroactive to January 1958 for civilian employees,
TABLE C-4.—Index of average hourly earnings, adjusted for overtime and interindustry employment shifts, selected periods, 1948-58 *
[1947-49=100]
Month
January
February
March

1948

1949

1953

1954

1957

1958

97.4
98.2
98.1

105.4
105.3
105.5

128.2
128.8
129.1

134.3
134.2
134.4

151. 3
151.7
152.4

158.4
158.7
159.2

April... .
May
June _

98.4
99.4
100.5

105.9
105 9
106.2

129.4
129 8
130.4

134.5
135.0
135.0

152.6
153.1
154.0

159. 6
160.1
160.4

July
August .
September

102.1
103.2
104.5

106.5
106.1
106.4

131.4
131.4
133.3

135.1
134.8
136.3

154.5
155. 1
155.5

161.fi

October
November
December .

104.4
104.8
104.8

105.8
106.2
106.5

132.6
133.3
133.5

136.3
136.4
136.3

156.4
157.2
157. 6

1
2

161.1
160.9

*16L4
» 162. 9
(3)

For production workers in manufacturing. See note below.
Preliminary.
j-3-Not available.
Average hourly earnings of production workers in manufacturing are affected by changes in pre-mium pay for overtime, by changes in the industrial composition of employment, and by other factors, as
ll as by general changes in hourly wage rates. This index excludes the effects of premium pay for overerindustry employment shifts, and better reflects the movements of wage rates. Employindustries are based upon average 1954 production man-hours.
DJBpiSStjjnent of Labor.




88

resulting in lump-sum cash payments of about $332 million in June and
July. In all, about 3.4 million persons are receiving higher salaries under
this legislation, and the total rise of income amounts to about $1.4 billion
per year.
Faim wage rates, according to the index compiled by the Department of
Agriculture, increased by about 3 percent between July 1957 and July 1958.
COLLECTIVE BARGAINING DEVELOPMENTS
Basic wage rates, established in major collective bargaining situations,
continued to rise in 1958. As in 1957, the over-all average wage increase
was about 12 cents an hour, and increases were negotiated or put into
effect for 6.8 million workers—about 85 percent of those covered by major
collective bargaining contracts (Table C-5). Improvements of supplementary benefits continued to characterize three out of every four settlements.
TABLE C—5.—Distribution of employees receiving wage increases under major labor
agreements, 1956-58 *
Size of increase (cents per hour)

1956

19582

1957

Employees receiving wage increases:
Number (millions)

7.5

7.6

6.8

Percent
Percentage distribution: Total
Under 5 cents
5 and under 9 cents
^ „__,
9 and under 13 cents ,. _ „ _ „ .
J3 and under 17 cents
17 cents and over
Not specified or computed.
.__

100

^ „ ,
„ _ ..„ _

.
_

_

100

100

1
19
62
8
7
3

2
21
30
38

3
21
32
22
19
2

5
2

1 Includes cost of living, deferred, and newly negotiated wage increases received under collective bargaining situations affecting 1,000 or more employees and coming to the attention of the Department of Labor.
Excludes construction, services, finance, and government.
2
Preliminary.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Labor.

At the outset of 1958, about 3.3 million employees were covered by labor
agreements providing for specified wage increases during the year, and in
most cases for cost of living adjustments as well. In addition, at least
one cost of living wage review was scheduled for about 1 million workers
before expiration of their contracts in 1958. Employees in the steel, aluminum, meatpacking, and railroad industries received total increases ranging
from 12 to 19 cents per hour, as a result of both deferred and escalator
adjustments. Automobile workers received total increases of approximately
13 cents per hour in 1958 under both old and newly negotiated contracts.
The continued advance of the consumer price index until August, and the
record number—4 million—of employees with wages subject to cost of living
escalator clauses, were major factors in the continued rise of wage rates.




Wage increases were negotiated for 3.5 million employees in 1958. Negotiated increases tended, on the whole, to be slightly smaller than in 1957,
with 7 to 9 cents per hour being the most common, compared with 9 to 11
cents in 1956 and 1957. About 7 percent of workers affected by negotiations received no wage increase.
After delayed negotiations, three-year settlements in the automobile industry were concluded with major firms in September and October. Wage
increases of 2.5 percent at 13-month intervals, extra increases for skilled
employees, continued cost of living adjustments, and improvements of severance pay, pensions, and supplemental unemployment benefits were provided. An agreement reached in the coal mining industry in November
increased wages by $2 per day, effective in 1959, and provided higher vacation pay and other benefits.




II. Prices
Prices of most manufactured industrial goods in both retail and wholesale
markets have been fairly stable over the last 18 months. On the other hand,
prices of other types of goods—farm products, industrial raw materials,
foods, and services—have changed by relatively large amounts, some fluctuating over a wide range and others rising steadily.
In wholesale markets, farm prices rose during most of the period of
contraction, and then declined in the last nine months of 1958. Prices of
industrial raw materials, on the other hand, moved in the opposite direction,
falling as economic activity receded and rising during the recovery. Reflecting these offsetting price movements and the stability of prices of most
manufactured goods, the wholesale price index has been roughly unchanged
since mid-195 7.
Prices of consumer services have continued to advance steadily; food prices
rose sharply in early 1958, and despite some modest declines in recent
months they have remained above 1957 levels. Together with higher
prices for new and used automobiles, these developments accounted for
almost all of the 2.6 percent increase in the consumer price index between
July 1957 and November 1958.
FARM AND FOOD PRICES
Farm prices rose irregularly throughout 1956 and 1957 from the abnormally low levels of the winter of 1955-56, and the rise was accelerated in
early 1958. During the first three months of 1958, wholesale prices of farm
products rose 9 percent above prices in the same quarter of 1957, while the
volume of marketings, particularly of price-supported crops, rose 5 percent.
Marketings of livestock, however, were smaller than in the preceding year,
and unfavorable weather during the winter and early spring reduced the
supply of fresh fruits and vegetables. Although the maintenance of consumer income undoubtedly contributed to the rise in food prices during the
recession, these changing supply conditions played the major role. As food
supplies increased in the summer and fall of 1958, food prices declined;
nevertheless, they remained above 1957 levels. During most of the period
of rising farm prices, marketing margins continued to advance. The higher
manufacturing, transportation, and distribution costs resulted not only from
higher wage rates, freight charges, and the like, but also from the costs
incurred in continually adding to the quality, variety, and "built-in" services
incorporated in prepared and packaged foods. A large part of the rise in




margins came in the second half of 1958, when the fall in farm prices was
accompanied by a much smaller decline in food prices. In November,
retail food prices were still about 2 percent above mid-1957 levels.
CONSUMER SERVICES
Ever since World War II, prices of consumer services have been rising
steadily, through economic expansions and contractions. They have increased not only absolutely but also in relation to prices of commodities.
Because of their relatively small rise during the war years, however, the
increase since then has only recently brought service prices, excluding rent,
back to their 1939 relationship to nonfood commodity prices. Rents are still
well below their prewar relationship to other prices. While the prewar
relationship between prices of services and other prices is not necessarily
normal for the current period, some of the relatively sharp increase in prices
of services during the past ten years may reflect an attempt to achieve in
these industries the real income gains attained earlier in other segments of
the economy.
Consumer services cover a wide variety of economic activities, ranging
from the highly industrialized and regulated public utilities to domestic
service. They also include such items as real estate taxes and property
insurance premiums, which have little immediate connection with the state
of business activity. It is not surprising, then, that there have been significant differences among the various categories in the timing and magnitude
of price changes.
Prices of services provided by the regulated public utilities tend to adjust
to inflationary pressures with some time lag. During the nine months
following the conflict in Korea, for example, when other prices were rising
sharply, prices .of most of these utilities increased moderately. In the
succeeding two years, on the other hand, they rose fairly rapidly while
commodity prices were falling. Similarly, the prices of this group of services
advanced quite gradually from 1956 to mid-1957, but since then they have
risen at a much more rapid rate. The recent increase is more a delayed
reaction to cost increases that occurred earlier than a reflection of inflationary forces currently at work. Since the end of World War II, prices of
some of these services—gas, electricity, and telephone—have risen substantially less than prices of other services. A major reason for the smaller
increase is that these services are very highly industrialized and have
achieved substantial efficiencies of operation through large investment programs, rapid expansion of operations, and the introduction of new technology. Certain other utilities, particularly local public transit, although relatively large users of capital equipment, have faced problems peculiar to their
industry, which have tended to raise their costs and prices even more than
for services in general.
For another large group of services included in the consumer price
index, prices are influenced by governmental and administrative factors not




92

closely related to the current state of the economy. The most important
items in this group are real estate taxes, auto registration fees, postage rates,
mortgage interest, and automobile and property insurance premiums.
Some of these items have been included in the consumer price index only
since December 1952. Since then, prices for this group have risen faster
than service prices generally. While property taxes, insurance rates, and
other items of a similar nature tend, in the long run, to be influenced by
general economic conditions, the specific timing of changes is usually determined by noneconomic considerations.
For consumer services other than the regulated utilities and the miscellaneous group discussed above, a common characteristic is that a large
part of their total cost is payment for labor services. They normally
cannot achieve the efficiencies made possible by heavy capital investment
and new technology to the same extent as the commodity producing and
public utility industries. For this group of "other" services, prices have
risen steadily since the end of the war, and substantially more than the
prices of services provided by the regulated utilities. In many instances,
an advance in prices for this group when other prices are stable reflects an
adjustment of wages and salaries to increases in living costs which occurred
at some earlier period. Also, wage and salary gains often lead to cost and
price increases in many of the service industries, in contrast to the industrialized sectors where there is greater opportunity for wage and salary increases
to be offset by improvements in productivity.
Taken altogether, service prices, excluding rent, rose 3.9 percent between
mid-1957 and mid-1958, and another 0.7 percent in the second half of 1958.
Since March of last year, however, the rate of increase has been somewhat
slower than during most years since the war. Rent has risen about 2.5 percent in the 18 months since the middle of 1957. While this is about the rate
of increase which has persisted since 1953, it is well below the annual increases of 4 to 5 percent in earlier postwar years.
INDUSTRIAL MATERIALS
A number of important crude or slightly processed materials used by
American industry, such as lead, zinc, copper, tin, and natural rubber, are
supplied in whole or in part from abroad. In most instances, the United
States purchases a significant part of the world supply, but other industrial
nations are also heavy buyers. Hence, prices of these materials were determined during the recession not only by the course of economic activity in the
United States but also by the leveling of industrial production and the reduction in inventory purchases by other industrialized nations. Prices of these
materials have also been affected in recent years by the termination of largescale stockpiling, and by supplies from new sources which have been developed since the post-Korean defense mobilization began. The changes in
industrial production and inventories in the United States were, nevertheless,
major factors determining the movement of prices of crude and slightly




93

processed materials, not only prices of domestic materials but also those of
foreign supplies on which the United States relies heavily.
Prices of this group of commodities tend to be much more volatile than
those of fabricated materials. After reaching a peak in December 1956,
prices of crude materials, exclusive of farm products, declined irregularly to
mid-1957, as industrial production leveled and purchases for inventory
receded. In the succeeding nine months, the decline was more rapid, as
industrial consumption of materials decreased sharply and inventories were
reduced. Prices moved upward in the summer of 1958, shortly after industrial production began to recover. Since stocks of copper, lead, and zinc had
risen during the recession, the increased consumption of these materials
was at first achieved by drawing down inventories; subsequently, purchases
from primary producers increased. Later in the year, the restoration of
tariffs on copper and the imposition of import quotas on lead and zinc
strengthened the tendency for the prices of these commodities to rise. Prices
of steel scrap, rubber, and tin also advanced sharply as the recovery progressed. Prices of crude and slightly processed industrial materials as a
whole began to rise in June, and by the end of the year they had almost
reached the level recorded prior to the recession.
SEMIFINISHED AND FINISHED PRODUCTS
With some notable exceptions, prices of fabricated industrial products
(intermediate materials and finished goods) changed little during 1958
(Table C-6). Prices tended to decline in the first half of the year, but
subsequently they rose enough to erase these declines. Prices of steel and
of many intermediate steel-using products advanced significantly in both
1957 and 1958. Steel prices were raised on the average by 4.2 percent in
July 1957 and by 2.6 percent in August 1958. Both price increases were
put into effect shortly after substantial upward adjustments of wage rates
in the industry. On the other hand, prices of nonferrous metal products,
along with those of basic copper, lead, and zinc, declined during the recession. Although prices of these products have increased in recent months,
they are still below their pre-recession peaks. Prices of building materials
were relatively stable during 1956 and 1957 and then declined slightly in
early 1958. In the second half of the year, however, the rapid increase
in residential building and in public construction was accompanied by a
recovery in the prices of construction materials. Prices of semifinished
nondurable commodities, which had risen only moderately during the overall price advance in 1956 and 1957, fell throughout 1958. For all intermediate materials, components, and supplies as a group, prices at the end
of 1958 differed little from those prevailing at mid-195 7. A small rise
occurred in the last half of 1957, a modest decline during early 1958, and
an equally modest recovery in the latter part of the year.
During the two years preceding the recession, prices of machinery and
equipment rose 15 percent, the sharpest increase for any major group of




94

TABLE G—6.—Changes in wholesale price indexes since June 1955
Percentatje change
July 1957
to
December
1957

December
1957
to
June 1958

7.2

Commodity group

0.3

0.6

0.0

1.1

-.2
.2

3.2
5.7

—5.1
-4.1

June 1955
to
July 1957

All commodities.
Farm products
Processed foods
_
Other than farm products and processed foods
(industrial)
_

3.2

June 1958
to
December
1958>

Intermediate materials, supplies, and components3

8.7

.3

-.6

1.5

11.3

Crude materials *_

-7.3

—1.2

4.8

9.0

.2

-1.0

1.0

12.1
3.3
15.7
7.3

.3
.0
.7
-.3

-.8
-1.2
.1
-.6

2.4
.0
.9
1.5

15.2
6.8

2.5
1.8

-.1
-.2

1.3
1.2

4.5

.4

8.0

Materials for durable manufacturing.
Materials for nondurable manufacturing...
Components for manufacturing
Materials and components for construction.

.4

Finished goods:
Producer finished goods
Consumer durable goods _
Consumer nondurable goods (other than
food).
Special index: All manufactured products

-1.4
.3

1.0
.4

1 Based on preliminary data for December 1958.
2 Excludes a number of partially processed materials, such as copper, lead, and zinc, which are discussed
in the text along with crude materials. In this table, these materials are included in intermediate materials,
supplies, and components.
3 Includes groups not shown separately.
Source: Department of Labor.

finished products. Even during the last half of 1957, when machinery orders
and sales were falling rapidly, prices advanced another 2l/z percent. After
November 1957, prices stabilized and remained so for most of 1958. Late
in the year, however, there were a number of small increases on particular
lines of equipment, notably agricultural and construction machinery.
With the principal exception of automobiles, the average increase in
prices of finished consumer goods, at wholesale and retail, was slight in the
past 18 months. Prices of new automobiles were raised in 1957 and 1958
when new models were introduced. However, a comparison of published
indexes at the end of 1958 with those in mid-1957, covering changes for two
model years, tends to exaggerate the increase, since discounts were larger at
the beginning of this period than at the end. The changes in prices of consumer goods, both as published and as adjusted to eliminate the essentially
seasonal changes in prices of automobiles, are shown in Table C-7. The rise
in prices of used cars was particularly marked in the past 18 months, continuing the advance begun in the period of very low prices in early 1956.
Over the past three years, almost half of the 9 percent increase in the prices
of consumer durable goods was due to the rise in prices of new cars, and
another third to the rise in prices of used cars.




95

Prices of appliances, which had fallen for many years, continued to decline after mid-1957, but the decreases tended to be small. Furniture prices
also fell slightly; apparel prices declined after a moderate seasonal increase in late 1957; and prices of gasoline, fuel oil, and textile housefurnishings moved lower. On the other hand, increases occurred in prices of
tires, prescriptions and drugs, cigarettes, newspapers, soaps and detergents,
and many other miscellaneous products. On balance, as can be seen from
Table G-7, when automobile prices are excluded, the indexes of prices of
consumer durable and nondurable commodities advanced very slightly.
TABLE G-7.—Changes in consumer price indexes since 1957
Percentage change,
July 1957 to
Relative
November 1958
importance
in index,
December Based on Based on
19571
published adjusted
data 2
data

Item

Ml items

100.0

Durable goods
New automobiles
Used automobiles 8
Other durable goods

....

Appliances
Furniture and bedding
Nondurable goods
Services including rent

_ ..
.

1.7
2.0

1.7

13.6

_

2.6

28.6
36.4

Food
Other commodities

4.3

3.4

3.0
1.6
9.0

13.6
9.0
.7

9.3

3.1
1.7

4-1.9

4 -.9

22.8
-

2.5

.7

34.2

4.0

1
Detail will not add to total because a small number of items could not be allocated to any individual
group.
2
Indexes for July 1957 for groups containing new automobiles were adjusted to eliminate, so far as possible the effect of changing discounts during the model year.
3 Includes groups not shown separately.
4 Change from June 1957 to September 1958.
Sources: Department of Labor and Council of Economic Advisers.

The index of prices of consumer goods rose 2.6 percent, mainly because of increases in the prices of three groups of items—foods, services,
and automobiles. The over-all index of wholesale prices, in contrast,
changed very little in the recession and during the recovery to date. This
index includes prices of very few service items, but it does include prices of
industrial raw materials. In general, the prices of these materials moved
in the opposite direction from prices of farm products and processed foods,
falling in the early part of 1958, when farm prices were increasing, and rising
in the latter part of the year, when farm prices were declining. Price
changes in these two major groups tended to offset each other, while prices
of semifinished and finished industrial products moved within a very narrow
range. The rise in the consumer price index relative to the wholesale price
index therefore reflects not an increase in retail margins, but rather the
substantially different composition of the two indexes.




COMPARISON OF DOMESTIC AND FOREIGN PRICE DEVELOPMENTS
The United States was not the only country to experience an increase in
the general level of prices during the past several years (Table C-8).
In fact, the average change in United States prices between 1953 and 1957
was somewhat less than the change in many Western European countries,
though nearly as much as in Germany and Italy. In the United States,
wholesale prices of nondurable goods and of farm products behaved in substantially different fashion from those of durable industrial products. Despite their rise in 1956 and 1957, farm prices in the United States were lower
at the end of the 1953-57 period than at the beginning, while in most WestTABLE C-8.—Price changes in the United States and selected other industrial nations,
1953 to 1957
Percentage change, 1953 to 1957
United
States

United
Kingdom

France

Germany.
Federal
Republic

9

16

11

9

8

21

6
15

14
14

11
13

7
11

8
8

14
13

17

14

7

5

6

All items

5

16

»6

6

10

i2

Food

2

5

33

9

11

13

-4
9
21

2
13
15

-6

2

Price series

Norway

Italy

Gross national product deflators: 1
Total
Consumption
Gross domesticfixedInvestment- .
Producers'
ment

durable equip..

(8)

Consumer price index:

Selected wholesale price indexes:
Textile products
Building materials
Machinery

_

Index of prices received by farmers

2

4
7

()
15

(')

3
6
16

2

()

-1
3
«6

(2)

11
4
15

i Implicit deflators for gross national product and specified components. For Germany (1956-57) and
France (1953), deflators for producers' durable equipment were not available; estimates, based on other data,
were used.
* Not available.
3
Based on data for Paris only.
< Based on wholesale price index of farm products.
Sources: Based on data from various agencies of the U. S. Government and international organizations.

ern European countries they had increased substantially. Prices of many
nondurable goods in the United States also were more stable than those
abroad, and prices of most consumer goods rose less than in Western Europe.
The increase in prices of durable goods for industrial use, on the other
hand, seems to have been greater in this country, both relative to other
prices here and to prices of similar goods produced abroad. Prices of
machinery and equipment rose at a particularly rapid rate; scattered evidence from a comparison of prices of processed durable materials indicates that the rise in prices in this country was greater than the increase
abroad. The over-all price behavior in the United States, compared with
other industrial nations, thus conceals significantly divergent trends among
different commodity groups.
97




III. Agriculture
For American agriculture, 1958 was a year of exceptionally favorable
weather and marked prosperity. Outstanding developments were record
yields and output of many crops, increased livestock prices, and a sharp rise
in farm income. The demand for food remained strong throughout the
year as personal incomes fell only moderately and briefly. The food component of the consumer price index averaged 4 percent higher than in 1957
as farm prices and the cost of marketing services rose about equally. Also,
exports of farm products remained high, although they were smaller in
the fiscal year 1958 than in 1957. Still, domestic and foreign demands were
again not large enough to absorb the output of many crops.
Agriculture's remarkable productivity, aided by favorable weather,
resulted in record crop output even though the acreage planted was the
smallest in many years. As a result, the two-year decline in price support
activity ended, and Federal expenditures for the stabilization of farm prices
and incomes are expected to be a record $5.4 billion in the fiscal year 1959.
Despite continued intensive efforts to dispose of surplus commodities, the
value of farm commodities under loan and in inventories of the Commodity
Credit Corporation (CCC) by mid-1959 may exceed the 1956 peak. Price
support commitments now made on 1959 crops suggest high expenditures
again in the fiscal year 1960, if production in 1959 is near the average
of recent years.
LEVEL AND SOURCES OF FARM INCOME
Realized net income of farm operators in 1958 was $13.0 billion, 20 percent more than in 1957 and the highest since 1953 (Table D-64). Delayed
marketings of 1957 crops, chiefly feed grains and cotton, contributed more
than $400 million to the increase in 1958. Total net income including
inventory change was $13.2 billion, 14 percent higher than in 1957. Production expenses increased 5 percent, as feeder livestock prices, wage rates,
prices of farm machinery and motor vehicles, and taxes rose. Farm people
earned more than $6 billion from nonfarm sources so that their average
per capita income from all sources exceeded $1,000 for the first time.
The rise in farm output and income in 1958 contributed to enlarged
expenditures on farm machinery, and thus to a greater productive capacity.
Also, the living standards of farm families continued to improve as a
result of gains in income. In addition, the increased farm expenditures
helped to moderate the business decline and to speed recovery. However,




many farm people did not share in the gains in 1958, and they still have
very low incomes. Wide differences in productive assets per farm and in
alternative employment opportunities continue to lead to large income disparities among farmers and to considerable diversity in the problems faced
by farm people.
Farms with annual gross sales of more than $2,500 represent only about
45 percent of all farms but produce nine-tenths of all farm products sold.
Operators of these farms earn most of their income from farming; they
are the chief beneficiaries of public expenditures for agricultural credit,
conservation, and price support programs; with the public, they share in
the important benefits of agricultural research. Per family average income
from all sources for the 2.2 million farms in this group has been comparatively high (Table C-9). Large differences exist within the group, however;
in 1954, 28 percent of all farms in this group made 64 percent of the group's
sales of farm products.
TABLE C-9.—Number of farms and average income of farm families, 1947 and 1952-56
Farms with sales of more than $2,500 per year Farms with sales of less than $2,500 per year
Year

Number
(thousands)

Average income '
Total

Farm

Off-farm

Number
(thousands)

Average income
Total

Farm

l

Off-farm

1947

2,140

$5, 716

$4,969

$747

3,733

$2,359

$1, 114

$1,245

1952
1953
1954

2,138
2,158
2,180

6,189
5,655
5,528

5,104
4,530
4,363

,085
,125
,165

3,283
3,150
3,021

2,816
2,706
2,691

1,086
937
881

1,730
1,769
1,810

1955
1956

2,196
2,213

5,417
5,415

4,123
4,033

,294
,382

2,889
2,751

2,806
2,925

806
789

2,000
2,136

i Farm-operator family.
Source: Department of Agriculture.

Families on the 2.8 million low-production farms with annual sales below
$2,500 earn little income from farming, but their off-farm income is comparatively large (Table C-9). Again, there is a wide range within the
group. On many of these farms, the operator has little supplementary
employment, and farm sales are his major source of income. However, the
number of these farmers who are finding off-farm jobs is growing.
About 1.5 million part-time and residential farmers make up the remainder of the low-production group. Gross sales of these units are very
low since farms are small, and many of the farm operators have off-farm
jobs. Only 2 percent of all sales of farm products are made by part-time
and residential farms, which comprise nearly one-third of all farms. Clearly,
the welfare of the families on low-production farms is more closely linked
with the expanding nonfarm sector of our economy than with agriculture
as such.




99

FINANCIAL POSITION
The financial position of agriculture, which was already strong, continued to improve in 1958. Farm debt increased somewhat, but farm
assets rose by a larger amount, as the stock of machinery, the number an<i
value of livestock on farms, and land prices increased. Equities in farm
properties reached new peaks, with the gain in equities alone nearly equal
to the total farm real estate debt.
PRODUCTION AND PRICES
Most of the gains in farm income in 1958 are attributable to the coincidence of record output of crops with insufficiently flexible, supported prices;
sharply higher prices for certain crops whose output was reduced; and comparatively high prices for the moderately reduced marketings of livestock.
In addition, the maintenance of personal income and consumer spending
during the business contraction contributed significantly to higher farm
incomes.
Crops
Total crop production in 1958 exceeded the record output of 1956 and
1957 by 11 percent, while harvested acreage was little changed from those
years and was 5 percent below the 1951-55 average. New record yields
per acre were reported for wheat, corn, cotton, sorghum grain, soybeans,
rice, and other crops which together made up 96 percent of all crop acreage
in 1958. These increases were the joint result of widespread favorable
weather and improved technology, the latter both a permanent and major
source of increased farm output.
Production of food grains was 48 percent higher in 1958 than in 1957.
An increase of more than 400 million bushels in stocks of wheat is indicated
by present estimates of domestic and foreign sales in the year ending June
30, 1959. Despite record output and large carryovers, the index of prices
received by farmers for food grains declined only moderately in 1958, as
price supports operating through nonrecourse loans set effective limits on
the price declines resulting from the large crops. The statutory price
support for wheat of the 1958 crop was 9 percent below, and for rice 5 percent below, that of 1957; prices for both commodities reflected these reductions, with wheat prices slightly below, and rice prices slightly above, the
support level.
Price supports had similar sustaining effects on the prices of feed grains
and oil crops in 1958, despite sharply increased output. As a result,
the increase in income from these major price-supported crops was very
large; food and feed grains, and oil crops accounted for one-third of the
increase in cash receipts from farm marketings in 1958.
Reductions in the size of crops were rare in 1958; for two major commodities, however, reduced output contributed to increases in cash receipts




100

and in net farm income. Smaller marketings of early citrus fruits following
frost damage sent their prices up sharply; the seasonally adjusted index of
prices received by farmers for all fruit rose 19 percent in the month preceding April 15. For the year, citrus fruit prices were 28 percent higher than
in 1957, while production decreased 15 percent. As a result, the value of
production of the reduced 1957-58 crop was $426 million, $47 million more
than the value of the larger 1956-57 crop. Noncitrus fruit production was
slightly reduced, and prices were moderately above those in 1957.
A shortage of fresh vegetables early in the season caused their prices
to rise sharply; prices fell as supplies increased at midyear.
Eight percent of the increased cash receipts from farm marketings
in 1958 was attributable to fruits and vegetables.
Livestock
Per capita meat consumption in 1958 was less than in 1957, as red
meat production declined 4 percent, largely early in the year. By midyear, monthly pork output began to exceed the 1957 volume. Beef
output, however, continued well below 1957, as breeding herds were
restocked following large reductions in 1956 and 1957; cattle on farms
increased by more than 2 million head in 1958. Lamb and mutton production was also slightly below 1957, but poultry meat production mcreased 11 percent, partly offsetting the reduction in red meat supplies
(Table C-10).
TABLE C-10.—Meat and poultry: Prices, receipts, production, and consumption,
1952-58

Year

Prices
received
for meat
animals
(1910-14=
100)i

Receipts
from sale
of meat
animals
(billions
of dollars)

Consumption per capita

Production
Red
meats

Total

Poultry
meat

Total

Red
meats

Poultry
meat

Pounds

Billions of pounds
1952
1953
1954

353
296
292

10.1
8.7
8.9

27.2
29.0
29.8

23.0
24.7
25.2

4.2
4.3
4.6

173
182
183

146
155
155

27
27
28

1955
1956
1957 s
1958

249
238
279
334

8.2
8.3
9.4
10.8

31.3
33.2
32.4
31.8

26.9
28.1
26.9
25.8

4.4
5.2
5.5
6.0

189
197
191
186

163
167
159
152

26
SO
12
{4

i Index of prices received by farmers for meat animals.
* Preliminary.
Source: Department of Agriculture.

The reduction in total and per capita meat supplies was reflected in increased prices in 1957 and even larger increases in 1958, when the index
of prices received for meat animals rose 20 percent. Because of this
sharp price response to moderately reduced marketings, sales of meat
animals accounted for nearly half of the 1958 increase in cash receipts from
farm marketings.
101
489916 O—59-




Even though there was some increase in 1958 in the volume of marketings
of poultry and eggs, prices increased slightly. Dairy production and
marketings were almost the same as in 1957, but prices fell moderately.
EXPORTS
Agricultural exports decreased by 15 percent, to $4 billion in the year
ended June 30, 1958; nevertheless, they were exceeded in only two other
years on record. Grains, cotton, and animal products accounted for
most of the decrease. Thirty percent of all exports of farm products were
shipped under special programs, compared with 40 percent in the fiscal
year 1957, mostly under provisions of Public Law 480. Cash exports
remained at $2.8 billion, partly because export subsidies continued to be
paid on several commodities in order to bridge the gap between domestic
and world prices. Sales for foreign currencies and grants for relief accounted for nine-tenths of the exports under special programs. Barter
transactions declined, under revised regulations, to only one-fourth the volume of the preceding fiscal year.
The Department of Agriculture expects a small decline in agricultural
exports during the fiscal year 1959, chiefly because of increased production
in importing countries. Cotton exports may not exceed 4 million bales,
a sharp drop from fiscal 1958, while wheat exports are expected to increase
slightly. Exports of farm products in the period from July to December
1958 were 4 percent below those in the same period in 1957.
PRICE SUPPORT OPERATIONS
Farm income has become increasingly dependent on price supports, as
rising productivity and increased resources have combined to keep the output of major farm commodities well in excess of total demand at established
prices. Somewhat less favorable crop weather, the soil bank, and large
exports based primarily on special financing or grants for relief, permitted
reductions in the carryover of wheat and cotton in 1956 and 1957. Feed
grain carryover, however, has increased in each of the last eight years. Oilbearing crops have become heavily dependent on surplus disposal programs.
High levels of price support activity in grains, cotton, and oilseeds from the
1958 crop indicate a record total of CCC holdings by mid-1959.
Since the fiscal year 1953, budget expenditures for the stabilization of
farm prices and incomes have ranged from $1.7 billion to the record $5.4
billion estimated for the present fiscal year (Table C-ll). Most of these
expenditures have been in support of the prices of wheat, corn, and cotton,
commodities which have continued to present grave problems of overproduction and excess carryover.




102

TABLE C—11.—Net budget expenditures for agricultural programs, fiscal years 1953-60
[Millions of dollars]
Agriculture and agricultural
resources
Stabilization of farm
prices and income

Fiscal year
Total

Commodity
Credit Corporation 1

Total
2,936
2,557

1955
1956
1957
1958
1959 >

_-

I9602

1,962
1,392

3,486
3,900
3,430
3,151
5,386

3, 305
3,607
2,793
2,294
4,420

5,996

_- .

2,125
1,689

4,389
4,868
4,526
4,389
6,775

1963
1954

4,490

4,218

1
Excludes the CCC portion of acreage reserve program expenditures as follows: $4 million in 1956, $344
million in 1957, $81 million in 1958, and $99 millon in 1959.
> Estimate.
Sources: Treasury Department and Bureau of the Budget.

COMMODITY MARKETS
Per capita consumption of wheat as food in the United States has declined for many years as personal incomes have risen and diets changed.
From 1910 to 1957, the total amount of wheat used as food actually fell
slightly, although population almost doubled. Exports in the period since
the war have depended heavily on grants for relief and on sales for foreign
currencies. For the crop years 1953 through 1957, 63 percent of all wheat
exported was shipped under special Government programs, chiefly Public
Law 480 and the Marshall Plan. In that period, domestic uses plus cash
exports (excluding those under special programs) averaged 737 million
bushels per year, 73 percent of average annual production (Table C-12).
At 1956-58 average yields, enough wheat to supply these markets can be
produced on about 60 percent of the present national acreage allotment. If
TABLE C-12.—Wheat: Production, utilization, and carryover, 2952-58
[Millions of bushels]
Utilization
Crop year l

Production

Domestic

Regular
exports

Special
exports

Change
in
carryover

Carryover, end
of year
Total

Under
price
support
program

1952
1953
1954

1,306
1,173
984

661
634
611

288
116
116

30
101
158

350
328
102

606
934
1,036

493
850
990

1955

935
1,004
951
1,462

601
587
588
608

105
174
152
140

241
375
249
290

-3
-124
-28
434

1,033
909
881
1,315

980
837
853
1,250

1956
1957
1958 *
1
2

Beginning July 1.
Preliminary.
Source: Department of Agriculture.




103

such yields occur, production from a larger acreage will either add to the
already large carryover or require shipment through surplus disposal programs, unless markets are expanded. A substantial addition to stocks
appears likely from the 1959 crop, according to present indications as
reported by the Department of Agriculture.
Utilization of feed grains is tied closely to the production of livestock
and livestock products which, unlike wheat, have been increasingly in demand as per capita incomes have risen. As a result, grains fed to livestock
have increased, although irregularly; exports also have risen, partly under
special financing. Yet production has exceeded utilization each year since
1952 (Table C-13). Price support holdings of feed grains, already nearly
$3 billion on June 30, 1958, may be expected to rise as a result of the large
1958 crop.
TABLE C-13.—Feed grains: Production, utilization, and carryover, 1952-58
[Millions of tons]

Crop year 1

1952
1953
1954

Production Utilization

Carryover, end of year
Under price
support
program

Total

120
117
124

._

1955
1956
1957 2
1958

Change in
carryover

-.

114
115
117

7
5
7

27
32
39

17
23
30

131
130
143
158

128
126
134
140

4
6
10
19

43
49
59
78

35
41
50
68

1 Beginning July 1 for oats and barley, and October 1 for corn and sorghum grain.
2 Preliminary.
Source: Department of Agriculture.

Cotton has faced strong competition from foreign cotton in the world
market, as well as from artificial cellulose and synthetic fibers in the domestic market. Domestic per capita consumption has fallen in the past
few years, and mill consumption has been reduced despite a growing population. Exports have been unstable, rising sharply after the war and
again in 1956 and 1957, largely because of foreign shortages and special
financing. Stocks in the past six years have fluctuated widely, but at
present they are only moderately excessive. Total utilization in the 1958
crop year (August 1958 to July 1959) is estimated at 12 million bales, only
slightly more than 1958 production, which was reduced sharply because
more than one-fourth of the cotton acreage allotment was placed in the
soil bank. It is possible that, under present programs, production in 1959
and 1960 may again exceed utilization and that stocks may increase.
Tobacco also poses a serious problem in view of drastically reduced acreage, rising yields, declining cash exports, and large carryover. Under the
present program, support prices are rising, thus increasing the tendency
toward higher yields per acre and jeopardizing foreign markets.




104

Prices of oilseeds, including soybeans, cottonseed, flaxseed, and peanuts,
also depend heavily on Government support; excessive Government-held
stocks of soybeans and cottonseed have been prevented so far only by heavy
exports under Public Law 480.
While domestic consumption of these major crops either has declined or
has increased slowly, and exports have depended heavily on Government
programs, production per acre has increased sharply because of improved
crop varieties, expanded use of fertilizer, increased irrigation, and better
cultivation. In 1957, crop production per acre was 12 percent above output in 1947-49; in 1958, it was 26 percent higher. Virtually all crops have
shared in these gains. Per acre yields of wheat, corn, and rice in 1956-58
were, respectively, 37, 33, and 50 percent more than in 1947-49. Cotton
yielded 47 percent more, tobacco 30 percent more, and soybeans 16 percent
more per acre in 1956-58 than in the earlier period. The output of most
crops would be raised significantly if farmers were to increase fertilizer applications in response to present favorable crop-fertilizer price ratios, or were
to adopt available machinery even more rapidly. Also, improvements in
livestock breeding and feeding have reduced the feed requirements per unit
of output for some types of livestock production.




105

IV. Financial Developments
Shifts in monetary and credit policy during 1958, and the changes in
the underlying economic conditions that called for them, were quickly and
strikingly reflected in financial markets. The principal developments affecting the demand for capital and credit, the supply of funds available for
various users, and changes in interest rates and stock prices are described
in the following sections.
DEMANDS IN FINANCIAL MARKETS
Corporations
The financing requirements of corporations in 1958 were lower than in
1957 as capital outlays and inventory expenditures declined much more
rapidly than the flow of internal funds from depreciation allowances and
retained earnings. Loans to businesses from commercial banks declined
$400 million, compared with a growth of $1.8 billion in 1957. Gross proceeds of corporate security offerings were $11.5 billion, about one-tenth
less than the record set in 1957. In the second half of the year, a rapid
improvement in retained earnings limited the need for an expansion of
borrowing as economic activity recovered. It was not until the fourth
quarter that business loan activity by commercial banks showed a significant
increase, and this was partially offset by a decline in corporate security
flotations.
Despite the attractiveness given to equity financing by rising stock prices,
only about one-tenth of corporate flotations last year took the form of common stock, compared with about one-fifth in recent years. Although bonds
convertible into common stock increased as a proportion of total offerings,
and rose somewhat in absolute dollar volume over 1957, this was more
than accounted for by one sizable offering in the first quarter.
Corporate liquidity improved over the year, though it remained close to
the low point in the period since the end of World War II. There was a
reversal of the decline that had taken place since 1955 in corporate holdings of United States Government securities and cash, and the proportion
of these liquid assets to current liabilities rose somewhat.
Consumers
In 1958, for the first time in the years since the war, consumer credit
outstanding remained practically unchanged (Table C-14). Automobile
paper outstanding declined by more than $1 billion, as the volume of new
automobile credit extended fell below repayments, which changed very




106

little. This decline was offset mainly by a continued growth in personal loan credit and in noninstalment credit.
Residential mortgage debt expanded more than in 1957, mainly in the
second half of the year. The increase reflected substantial commitments
made by financial institutions in late 1957 and the first half of 1958, when
easier credit conditions widened the differential between mortgage yields
and corporate bond yields and made mortgages a more attractive investment. Further effects of these commitments on mortgage debt will be
felt in 1959. The increase in nonfarm residential mortgage debt over the
entire year was $10.4 billion, compared with $8.6 billion in 1957; for the
second half of 1958, however, the increase has been estimated at $6.3
billion, compared with $4.2 billion in the second half of 1957.
TABLE C-14.—Changes in short- and intermediate-term consumer credit outstanding,
1955-58
[Millions of dollars]
Type of credit

1955

1957

38, 670

42 097

44 774

6,378

3,427

2,677

5,390

2,869

2,268

-400

3,663
883
73
771

987
876
206
800

950
182
196
940

-1300

988

Total consumer credit outstanding (end of period)

1956

558

409

19581

44,800

Net change in consumer credit outstanding:
All types of consumer credit
Instalment credit

.

_

_

- ..

Automobile paper
Other consumer goods paper
"Repair and modernization loans
Personal loans
,
,

. . .

, ,

NnninstalTnent credit

0

300
0
600
400

1
Preliminary estimates by Council of Economic Advisers.
NOTE.—Data are not adjusted for seasonal variation.
Source: Board of Governors of the Federal Reserve System (except as noted).

Consumers maintained a remarkably good record in meeting debt payments, despite the recession. Delinquencies in meeting automobile payments were low, although there was a sharp increase in repossessions of
automobiles.
State and Local Governments
In order to finance mounting construction expenditures, State and local
governments further expanded their security flotations, to the record figure
of $7.4 billion. In addition, the dollar volume of bonds authorized at elections was much larger in 1958 than in 1957; however, the authorizations
fell short of the record level reached in 1956. A large part of the 1958
increase in proceeds from State and local offerings went for roads and
bridges, as States obtained funds to match Federal aid for accelerating the
highway programs.




107

Federal Government
The Federal debt rose $8.0 billion during the past year, with $6.6 billion
of the increase occurring during the second half. In addition, the Treasury
refinanced a large volume of maturing securities, thus heightening the impact of the Federal Government on credit markets. Two very long-term
bonds were issued, lengthening the maturity structure of the debt. In February, about $1.7 billion of 3J/2 percent bonds falling due in 1990 were
issued as part of a large exchange offering. In June, $1.1 billion of 3}4
percent bonds due in 1985 were offered for cash. The latter issue came at
the same time that a large refinancing offer, mainly into a new 2 $4 percent
bond maturing in 1965, was made. The sharp decline that occurred shortly
thereafter in the prices of Government securities led the Treasury Department to repurchase $625 million of the 2% percent bonds in the open
market.
In the second half of the year, the Treasury restricted its financing operations to relatively short-term securities. A notable development, initiated
in December, was the issue of a series of 26-week Treasury bills to supplement the usual 13-week bills. With capital markets again favorable, the
Treasury issued a long-term security for cash in January 1959.
SUPPLY OF FUNDS
Federal Reserve Policy
The first public indication of a reversal of the Federal Reserve's policy
of monetary restraint came in mid-November 1957, with the reduction of
the discount rate from 3/2 percent to 3 percent. Although this action by
itself did little to make money and credit more easily available, it helped
to initiate a sharp decline in interest rates that continued into early 1958.
Three further decreases lowered the discount rate to 1% percent by May
1958.
To provide funds to commercial banks, the Federal Reserve authorities
reduced reserve requirements. Successive decreases, announced in February, March, and April, lowered reserve requirements against demand deposits from 20, 18, and 12 percent in the three classes of member banks,
to 18, 16 5/2, and 11 percent. This was equivalent to releasing about $1.5
billion in reserve funds that could serve as a basis for a multiple expansion
of money and credit. In addition, the Federal Reserve authorities provided bank reserves through open market purchases of United States Government securities. This need arose in part from an outflow during the
year of more than $2 billion of gold, which, if not offset, would have
reduced bank reserves by an equivalent amount.
On July 18, the Open Market Committee of the Federal Reserve System authorized open market purchases of Government securities other than
Treasury bills, as a result of the sharp decline in Government security
prices. For a short while, some long-term securities were purchased by the




108

Federal Reserve System, although most of the purchases under this authorization were confined to the new 1^4 percent one-year Treasury Certificates
that were being marketed in July. Open market operations during the
major part of the year continued to be restricted to 13-week Treasury bills.
The effect of the various Federal Reserve actions was to provide the basis
for a substantial expansion of bank deposits. From January through July,
the money supply (demand deposits and currency) increased $5.4 billion,
on a seasonally adjusted basis, more than offsetting a decline during the
preceding six months. Time deposits at commercial banks increased $5.7
billion. The rise in time deposits on an annual basis was the highest in any
year since the end of the war.
Monetary policy shifted as business conditions improved and concern
emerged over possible inflationary developments. In mid-August, the
Federal Reserve Board approved an increase in the discount rate from
124 percent to 2 percent. A reversal also occurred in the tenor of Federal
Reserve open market operations. Previously, such operations, by providing
large amounts of reserve funds to member banks, had almost eliminated
the need for member bank borrowing at Federal Reserve banks. In late
August and early September, as the reserve position of member banks came
under increasing pressure, borrowings from the Federal Reserve banks rose
rapidly. In October, Federal Reserve banks again raised the discount rate,
from 2 percent to 2|^ percent. Margin requirements against new stock
purchases, which had been reduced from 70 percent to 50 percent in January, were raised again to 70 percent in August and to 90 percent in October. The money supply rose $700 million from July through December,
a rate of increase that was considerably less than the rate in early 1958.
Time deposits, likewise, grew at a much slower rate.
Commercial Bank Credit
As a result of Federal Reserve actions in the first half of the year, loans
and investments of commercial banks (excluding interbank loans) expanded
by $8.9 billion, in contrast to a decline of $200 million during the same
period of 1957. For 1958 as a whole, the expansion of bank loans and
investments was more than $14 billion (Table C-15), the largest expansion
in any year since the war.
In the absence of a strong private demand for credit, most of the expansion in bank assets took the form of enlarged holdings of United States
Government securities. These rose by $7.9 billion (based on par value; see
Table C-16) and accounted for almost all the increase in the publicly
held Federal debt. However, this increase in commercial bank holdings,
made possible by additional reserve funds, was concentrated in the first half
of 1958, and was accomplished largely through a reduction in the holdings
of other investors; Government securities outstanding rose very little during
the first half of the year.




109

TABLE C-15.—Net changes in commercial bank holdings of loans and investments,
1955-58
[Billions of dollars]
Loan or investment

1955

Loans (excluding interbank) and investments

2

1956

1957

1958*
14.4

4.6

3.9

5.5
1.7
1.3
-.8
-.3
.5

1.8
.6
l.l
-.1
-.1
.3

-.4
2.4

-3.5

1.3

10.3

-7.4
.4

U. S. Government securities. ...
Other securities

3.5

—7.0

Investments

4.9

7.6

6.4
2.4
2.3
.6
-.7
.9

Business
Real estate
Consumer
Security
Agricultural
All other

4.2

11.6

Loans (excluding interbank) 2

-3.0
-.4

-.3
1.7

7.9
2.5

(3)

.3
.9
.7

1

Preliminary estimates by Council of Economic Advisers.
2 Total loans are net of, and individual loans are gross of, valuation reserves.
> Less than $50 million.
NOTE.—See Table D-41 for data including interbank loans.
Detail will not necessarily add to totals because of rounding.
Source: Board of Governors of Federal Reserve System (except as noted).

After midyear, when the public debt rose rapidly, commercial banks
added to their holdings of United States Government securities at a much
slower rate, absorbing about one-fourth of the increase in the publicly held
Federal debt. The additional Government securities were placed in nonbank
hands, in some cases with commercial banks serving in effect as underwriters. Thus, large-scale monetization of the public debt—i. e., additions
to bank holdings through reserve funds provided by monetary authorities—
that might have provided the basis for a renewal of inflationary pressures
was avoided.
TABLE G-16.—Net changes in ownership of the publicly held Federal debt during
19581
[Billions of dollars]

1958
investor group
First half Second half »
Debt held by the public: Total
Commercial banks 3
Federal Reserve Banks
Mutual savings banks
Insurance companies
Other corporations
State and local governments
Individuals
Miscellaneous investors

0.8

.
....

,-_,-_-,-..

.

,
-

- ..
- --...

5.8
1.2
-.2
-.3
-3.2
-.1
-1.1
—1.4

8.1
2.1
.9
-. 1
.5
4.0
.3
—.8
1.2

» Change based on par value. See Table D-49.
Based on preliminary estimates for December 31,1958 by Council of Economic Advisers.
3 The change in ownership of Federal debt by commercial banks given in this table differs from Table
C-15. This table is based on par values and includes holdings of banks in United States Territories and
possessions, whereas Table C-15 is based on book values and includes only banks within the continental
United States.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Treasury Department (except as noted).
2




110

The maturity structure of Government securities held by banks was
lengthened as a result principally of intermediate-term securities offered in
Treasury financing operations. Since such issues are not as liquid as shortterm Government securities, the liquidity of banks was not enhanced as
substantially as the increase in bank holdings of Government securities
might indicate. Moreover, after the middle of the year, market prices of
securities of intermediate- and long-term maturity declined as interest rates
rose, making banks more reluctant to sell them because of the capital losses
that would be entailed.
In view of the reduced demands for consumer and business loans, the
major portion of the remaining increase in bank assets consisted of larger
holdings of State and local securities and real estate loans. The increase
in the former was a substantial fraction of the total increase in State and
local securities. Bank loans to aid in financing real estate transactions,
including mortgages and interim credit, also expanded significantly, particularly in the second half of the year, and the rise in bank holdings of real
estate loans was about the same as the 1955 record increase.
Nonbank Financial Institutions
Individuals added large amounts on balance to their financial assets.
The rise in savings capital at savings and loan associations exceeded by
more than one-quarter the rise in 1957 (Table C-17). In mutual savings
TABLE C-17.—Flow of funds for selected nonbank financial institutions, 1955-58
[Millions of dollars]
First ten months

Item
1955

1956

1957

1958

Life insurance companies:
Net change in assets

4,948

4,615

4,435

4,744

3,688

3,757

3,463

4,464

1,473

1,396

1,222

1,886

Savings and loan associations:
Net change in savings capital
Mutual savings banks:
Net change in deposits

Sources: Institute of Life Insurance, Federal Savings and Loan Insurance Corporation, National Association of Mutual Savings Banks, and Federal Deposit Insurance Corporation.

banks, which are concentrated in the northeast section of the country, the
rate of growth in savings accounts increased by more than 50 percent. The
flow of savings into life insurance companies, as measured by the net increase in life insurance assets, was slightly greater than in 1957. Savings
and loan associations and mutual savings banks used the additional funds
available to increase substantially their accumulation of mortgages, and life
insurance companies increased their accumulation of State and local securities. Holdings of United States Government securities by life insurance
companies seem likely to show little change for the year as a whole. This




ii i

would make it the first year since 1946 that life insurance companies did
not reduce their holdings of such securities significantly.
Although the flow of funds from individuals directly into common
stocks may have declined somewhat, the flow of funds into mutual funds as
measured by the accumulation of mutual fund shares was at a record level.
As a result, mutual funds increased their accumulation of common stocks. In
addition, many pension funds were reported to be enlarging their equity
portfolios. Individuals, however, continue to hold the largest amount of
shares and, according to the public transactions study of the New York Stock
Exchange, they continue to account for most transactions on the Exchange.
INTEREST RATES AND STOCK PRICES
The decline in interest rates that began in the autumn of 1957 continued into 1958 as economic activity diminished and Federal Reserve
authorities made credit more readily available. The drop in long-term
interest rates was particularly sharp through early January 1958. By then,
the average yield on long-term United States Government bonds had fallen
about /a of 1 percent, and a further decrease occurred through April.
Short-term rates declined almost continuously through late May. The rate
on new 13-week Treasury bills, which had reached 3^4 percent in 1957,
fell to about ^ of 1 percent.
With economic recovery, interest rates rose even more abruptly than
they had declined. By early autumn, interest rates on long-term Government securities not only surpassed the rates in 1957 but were the highest
since, the early 1930's. Other long-term rates also increased, although
not quite as much. Short-term interest rates rose swiftly, with new Treasury bills yielding almost 3 percent six months after yields significantly below
1 percent had prevailed; however, short-term rates did not attain the high
rates of 1957. Thus, short- and long-term interest rates advanced from
the low levels of early 1958 in a remarkably brief time, in contrast to the
protracted period of low interest rates during the economic contraction
of 1953-54.
A combination of factors contributed to the sharpness of the rise in
rates. These included the suddenness with which the upturn in business
activity came about; the projected rise in the supply of Government securities, reflecting the Federal deficit; and widespread discussion of potential
inflationary pressures. Another factor was the large-scale selling of United
States Government securities by many of those who had bought earlier in the
year on the assumption of declining interest rates and rising bond prices.
Many Government bonds, notably the 1% percent bonds of 1965 issued
in June, had been bought on a thin margin basis. When bond prices began to decline, many of these holders had little choice but to sell their
securities. This helped bring about further price declines through the
summer months, making for sharply higher interest rates.




112

Stock market prices increased persistently throughout most of 1958. By
autumn, prices of common stocks exceeded their previous highs; and,
according to one measure, prices of industrial stocks at the end of the
year were, on the average, 22 times the earnings that had prevailed in
the year ended September 1958. This high capitalization of current earnings had occurred only seldom in the past, and then under unusual circumstances. The dividend yield of a composite of stocks declined during
1958 from about 4% percent to 3J4 percent, considerably below yields on
long-term bonds. After the middle of the year, low-price stocks became the
most actively traded, and they increased in price substantially more than
high-price stocks. The proportion of stock market transactions for shortterm and trading purposes was the largest since 1955, according to the public
transactions study of the New York Stock Exchange.
Stock market credit, as measured by net debit balances of New York
Stock Exchange firms and bank loans to others than brokers and dealers,
increased about $900 million from the end of 1957 to the end of 1958,
and about $400 million when measured from the peak figure in 1957.
Most of the rise occurred before August 1958, at which time margin requirements on new stock purchases were raised from 50 percent to 70 percent,
and other moves were taken to restrain general credit expansion.




V. Government Finances
Federal, State, and local government expenditures increased during the
calendar year 1958. State and local receipts also rose, but Federal Government receipts declined, reflecting the effect of economic recession on
corporate and individual incomes. For the fiscal year 1958, the Federal
budget showed a small deficit (the first in three years), and a much larger
one is estimated for the current fiscal year. State and local debt rose by
$4.7 billion during the year ended June 30, 1958; the Federal debt increased
by $5.8 billion in the same period and by an additional $6.6 billion during
the second half of the calendar year 1958. It is expected to increase by
another $2 billion by June 30, 1959.
FEDERAL FINANCES
Expenditures
Budget expenditures in the year ended June 30, 1958 amounted to $71.9
billion, $2.5 billion higher than in the preceding fiscal year. There were
increases in nearly all categories, with the largest increases in the major
national security and commerce and housing categories (Table C-18).
TABLE C-18.—Federal budget expenditures, 1957-60
[Fiscal years, billions of dollars]
Function
Total budget expenditures
Major national security
International affairs and finance
Commerce and housing
Agriculture and agricultural resourcesNatural resources
Labor and welfare
Veterans services and benefits
Interest
General government
Allowance for contingencies _ .

1957

,

1958

1959
1960
(estimated) (estimated)

69.4

,...-..

71.9

80.9

77.0

43 3
2.0
15
4.5
1.3
30
4.8
7.3
1.8

44 1
2.2
2.1
4.4
1.5
34
5.0
7.7
1.4

46.1
3.7
3.5
6.8
1.7
4.4
5.2
7.6
1.7
.2

45 8
2.1
2.2
6.0
1.7
4.1
5.1
8.1
1.7
.1

NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department and Bureau of the Budget.

A further rise in budget expenditures, to $80.9 billion, is indicated for the
current fiscal year (1959), as increases in nearly all major categories are
expected. For each of the four categories—agriculture and agricultural
resources, major national security, international affairs and finance, and
commerce and housing—an increase of more than $1 billion is estimated*
The largest single increase is expected for agriculture and agricultural




114

resources, primarily because record crops have caused increased payments to
farmers under open-end commitments for price support. To a smaller extent, the increase results from additional soil bank payments for corn and
cotton acreage. Estimates for expenditures on agriculture and agricultural
resources in the fiscal year 1959 have been revised upward repeatedly, from
$4.6 billion in the January 1958 budget to $6.4 billion in the midyear review
and to $6.8 billion as of January 1959. Agricultural expenditures therefore
become the third largest category in the Federal budget, exceeded only by
expenditures for national security and interest payments on the public debt.
The increase estimated for national security expenditures in the current
fiscal year is attributable primarily to higher spending on research and
development, procurement of missiles, larger operating expenditures, and
higher expenditures for military construction. Expenditures of the Atomic
Energy Commission are expected to increase by over $300 million. An
estimated increase of more than $1 billion for research and development
(including testing and evaluation) will raise estimated expenditures by the
Department of Defense in this category to a level 50 percent higher than in
the fiscal year 1958. Increased expenditures for new weapons and more
modern equipment, on the other hand, will be more than offset by a reduction in expenditures for conventional weapons and equipment, resulting in
an estimated reduction of $600 million in total expenditures for procurement.
The estimated increase in expenditures for international affairs and
finance is due primarily to the recommended expenditure for the additional
United States quota in the International Monetary Fund.
The higher expenditures for commerce and housing in fiscal 1959 reflect
primarily the purchases of mortgages for low- and medium-priced housing
by the Federal National Mortgage Association, extension of the direct home
loan program of the Veterans Administration, larger expenditures for the
modernization of airway navigation facilities, and greater assistance to small
business by the Small Business Administration. Despite the rise in postal
rates, a significant increase is expected in the net deficit of the Post Office
Department, owing to the pay increase for postal workers enacted in May
1958 and to higher payments to railroads on account of the increase in rates
granted them by the ICG in the spring of 1958.
The increase of almost $1 billion estimated for labor and welfare is chiefly
the result of the program enacted in June 1958, which provides for temporary advances to States for the extension of unemployment compensation
benefits, and of recent legislation increasing the Federal share of payments
to States for public assistance grants.
Revenues
Federal budget receipts in the fiscal year 1958 were almost $2 billion
less than in the preceding year, reflecting the impact of the recession. Receipts from taxes on individual incomes declined by about $900 million, and
those from taxes on corporate incomes by $1.1 billion. Revenues from




"5

excise taxes declined by about $400 million. However, other receipts, including customs and miscellaneous receipts, rose by more than $500 million.
A further decline in revenues is expected in the fiscal year 1959. Receipts
from the corporate income tax are expected to fall by $3 billion as a result
of the decline in corporate profits during the calendar year 1958, which was
particularly sharp in the first half of the year. On the other hand, receipts
from the personal income tax, which is collected mainly on a current basis,
are expected to increase, reflecting the economic recovery and the rise in
personal incomes beginning in the spring of 1958. Small declines are
estimated for excise and other receipts, except customs. The net effect of
all these changes will be a decrease of approximately $1 billion from the fiscal
year 1958 in Federal revenues. (For details on Federal budget receipts by
source, see Table D-51.)
Upon recommendation of the President, the Congress extended for one
year the current rates of the corporate income tax and certain Federal
excise taxes which were to be reduced last June. It also repealed the taxes
on transportation of property (including coal, and oil by pipeline), effective
August 1, 1958, at a revenue loss estimated at $350 million for the remainder of the fiscal year 1959 and somewhat over $500 million for a full
year. In addition, it enacted a number of technical tax revisions, including changes aimed at aiding small business; the revisions from which small
business is expected to benefit are estimated as involving a loss of $260
million in revenue in the fiscal year 1959.
Consolidated Cash Statement
The consolidated cash statement, which presents information on the
total flow of money between the public and the Federal Government,
shifted—like the conventional budget—from a surplus in the fiscal year
1957 to a deficit in fiscal 1958. However, both the change from the fiscal
year 1957 to the fiscal year 1958, and the deficit in the fiscal year 1958,
were smaller than those shown by the conventional budget. In every fiscal
year from 1953 through 1958 (as well as in most prior years), the Federal
budget on a consolidated cash basis has shown smaller deficits or larger
surpluses than the conventional budget (Table C-19).
Trust funds, whose receipts and disbursements are included in the consolidated cash statement but not in the conventional budget, have shown
a surplus in recent years, including the fiscal year 1958. In addition,
accrued interest on savings bonds has exceeded the cash interest paid on
redeemed bonds and has contributed to a reduction in Federal cash payments relative to budget expenditures.
Through the fiscal year 1957, the largest of the trust funds—the Federal
Old-Age and Survivors Insurance (OASI) Trust Fund—showed a consistent and substantial excess of receipts over payments, although the amount
of the excess has been declining in recent years. Most of the other trust
funds also showed a consistent excess of receipts over payments during this




116

TABLE C-19.—Relation between the Federal budget surplus or deficit, receipts from
and payments to the public, and change in the public debt, 1953—59
[Fiscal years, billions of dollars]
Item

1953

Less:

Net receipts, or expenditures (— ), from
trust account transactions _ _ . _ _ _ . .
Accrued interest and other noncash expenditures (net)
__
_ _

1955

—9.4

Budget surplus or deficit (— )
Plus:

1954

—3 1

—4 2

16

3.6

2.0

1.0

.5

.6

.6

1956

1959

1958

(estimated)

16

—2 8

— 12 9

2.2

1.4

.3

—1 3

.9

— 8

5

1 9

(i)

.1

.1

(i)

-6

9

—1 5

—13 2

Receipts from exercise of monetary authority .
Expenditures (net) of government-sponsored enterprises

.1

.1

-.1

-.4

.1

.3

Equals: Net receipts from, or payments (— ) to, the
Sublic (consolidated cash surplus or
eficit)

0)

1957

(i)

-5.3

-2

-2.7

4 5

Plus:

Receipts from seigniorage less changes in
cash balance held outside Treasury

.1

-.2

.3

.2

(i)

— 1

4

Less:

Increase or decrease (— ) in Treasurer's account balance

-2.3

2.1

-.6

.3

-1.0

4.2

-4 3

Equals: Net cash borrowing from the public or repayment ( — ) 2

2.9

2.5

1.8

-4.4

—31

5 8

85

.7

.5

.5

.5

.4

.3

.5

.1

.1

.2

rj

1.5

3.2

Plus:

Less:

Accrued interest on savings bonds and
Treasury bills
Issuance of public debt securities representing budget expenditures or refunds
of receipts
- _ _
Net investment in Federal securities by
government agencies
Net sale of obligations of government enterprises in the market

Equals: Net increase in public debt

(i)
3.3

2.1

(i)

(i)

7.0

5.2

.9
3.1

1.0

-1.6

21

2.3

1.2
.7

-.5

1.2

.4

1.0

-2.2

5.8

8.7

1
2

Less than $50 million.
Sign changed.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department and Bureau of the Budget.

period. An occasional excess of payments over receipts in one trust fund,
such as the Unemployment Trust Fund in the fiscal years 1954 and 1955,
was more than offset by an excess of receipts over payments in other funds.
A change began, however, in the fiscal year 1958, when payments from
the OASI Trust Fund exceeded receipts for the first time. Substantial
net payments were also shown by the Unemployment Trust Fund in that
year. These net payments were more than offset in total by the net receipts of the Federal Disability Insurance Trust Fund, the Federal Employees Retirement Fund, and the Highway Trust Fund. In the fiscal year
1959,, however, payments of the Highway Trust Fund, as well as the OASI
Trust Fund and the Unemployment Trust Fund, are expected to be substantially in excess of current receipts; therefore, the current operations of
the trust funds are expected to show, for the first time in recent years, a
substantial net excess of expenditures over receipts, and the anticipated
Federal deficit on a consolidated cash basis is expected to exceed the estimated deficit on a conventional basis (Table C-19).
It is estimated that in the fiscal year 1960 the situation will be reversed
again and that the Federal surplus on a consolidated cash basis will be
117

489916 O—59




9

larger than the budget surplus on the conventional basis. Current operations of the trust funds are then expected to show again a small net accumulation, partly because of higher contributions to the OASI Trust Fund,
effective January 1, 1959, smaller net payments by the Unemployment
Trust Fund, and increased revenues for the Highway Trust Fund from the
recommended increase in the Federal gasoline tax.
Public Debt
The public debt increased by $5.8 billion, to $276.3 billion, during the
fiscal year ended June 30, 1958. By the end of the calendar year 1958,
it had increased to $282.9 billion, an increase of $8 billion for the year.
A further increase of approximately $2 billion by June 30, 1959 is now
estimated. The increase in the public debt during the fiscal year 1958 was
substantially in excess of either the conventional budget deficit or the cash
deficit for the same period, but the opposite result is expected for the fiscal
year 1959 (Table C-19). The major reason for this difference is that the
Treasury's cash balance was abnormally high on June 30, 1958.
Changes in the public debt do not necessarily measure the impact of Government debt operations on the economy in terms of withdrawals of funds
from, or additions of funds to, the public. Net receipts by trust accounts,
which are invested in United States Government securities, provide the
Treasury with funds that can be used to redeem securities held by the public
or to reduce the amount of borrowing from the public if there is a budget
deficit. On the other hand, net payments by trust accounts reduce the cash
position of the Treasury, and may lead to an increase in the debt held by the
public as Federal security holdings by these accounts are reduced. The relationships between the budget surplus or deficit, net cash receipts or payments,
and changes in the public debt are shown in Table C-19 for the fiscal years
1953 to 1959, inclusive.
FEDERAL, STATE, AND LOCAL FINANCES
Data on the net results of the financial transactions of the Federal Government on a cash basis (Table C-20) show that the relationship between
Federal cash payments and receipts has fluctuated considerably in recent
years. A deficit of $5.3 billion in the fiscal year 1953 was practically eliminated in the following year. A deficit of $2.7 billion in 1955 was followed
by a substantial surplus in the fiscal year 1956 and a smaller surplus in the
fiscal year 1957. In the fiscal year 1958, there was a deficit of $1.5 billion.
By contrast, cash receipts and payments of State and local government
units show much smaller swings during this period, with both cash receipts
and payments increasing steadily. Since 1953, payments have consistently
exceeded receipts, with the largest deficit occurring in 1958. Except for
1953, therefore, the net effect of State and local cash transactions has been
to reduce the size of the cash surplus or to increase the size of the cash deficit
of all government units combined.




118

TABLE C-20.—Consolidated cash statements of Federal and State and local
governments, 1953—58
[Fiscal years, billions of dollars]
Receipts or payments

1953

Total government:
Cash receipts
Cash payments

1955

1956

1958

1957

93 9
99 1

Total cash surplus or deficit (—) _ .
Federal Government:
Cash receipts
Cash payments _.

1954

_

__
_

Federal cash surplus or deficit ( — )
State and local governments: !
Cash receipts
Cash payments _
State and local cash surplus or deficit (— )

95 6
96 1

93 5
97 5

105 8
101 7

113 1
111 6

114 4
117 7

-5.2

-.5

-4.0

4.1

1.5

-3.3

71 5
76.8

71.6
71.9

67 8
70 5

77 1
72 6

82 1
80.0

81.9
83.4

—5 3

— 2

—2 7

4 5

2 1

-1.5

22.4
22.3

24.0
24.2

25.7
27.0

28.7
29.1

31.0
31.6

32.5
34.3

1

— 2

—1 3

4

6

— 1.8

i Estimates by Council of Economic Advisers.
NOTE.—Federal grants-in-aid have been deducted from State and local government receipts and payments since they are included in Federal payments.
Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department and Bureau of the Budget (except as noted).

All major classes of State and local government expenditures increased
during the past year. Expenditures for education—more than one-third of
the total—continued to be by far the largest single outlay, followed by ex*
penditures for highways and public welfare. As in previous years, property
taxes and taxes on sales and gross receipts accounted for about three-fifths
of State and local revenues. Both these sources of receipts, and also revenue
from personal income taxes, have increased from year to year. Receipts
from taxes on corporate profits—not an important source of revenue for
State and local governments—declined in 1958.
RECEIPTS AND EXPENDITURES OF FEDERAL, STATE, AND LOCAL
GOVERNMENTS: NATIONAL INCOME ACCOUNTS
Quarterly changes in Government receipts and expenditures, at seasonally adjusted annual rates, are shown in Table C-21 in terms of the national income accounts. The presentation of Government receipts and
expenditures in these accounts shows the contribution of Government
operations to the gross national product and the income of the economy
more directly than the piesentation in either the conventional budget or
the consolidated cash statement. A major difference between the national
income concept and the consolidated Government cash statement is that
the former excludes capital transactions, such as sales of Government
property, mortgage purchases by the Federal National Mortgage Association, and Government purchases of other existing assets. Adjustments are also made for other reasons, such as differences in timing between the recording of certain transactions in the national income accounts
and the actual outlay or receipt of cash by the Government. For fiscal 1958,




the major part of the difference between receipts in the national income
accounts and in the consolidated cash statement was due to the difference
in timing between the accrual and payment of corporate profits taxes. (For
a reconciliation between Federal Government receipts and payments on a
cash basis and on a national income basis, see Table D-54.)
As indicated in Table C-21, the surplus of Federal Government operations on income and product account in the third quarter of the calendar
year 1957 was wiped out in the fourth quarter when receipts and expenditures were nearly in balance; and in each quarter of the calendar year 1958,
TABLE G—21.—Government receipts and expenditures as shown in the national
income accounts, 1957-58
[Calendar years, billions of dollars, seasonally adjusted annual rates]
IS 57

Receipt or expenditure

Third
quarter

Ifi 58

Fourth
quarter

First
quarter

Second
quarter

Third Fourth
quarter quarter l

Federal Government:
Receipts

83.3

80.6

76.1

76.1

80.2

83.4

Expenditures

79.9

80.8

82.8

86.0

88.7

90.6

49.7
17.1

49 1
18.6

49 7
19.5

50 7
21.5

52.2
22.1

53.8
21.7

4.3
8.8

4.4
8.8

4 4
9.1

4.8
9.1

5.4
9.0

6.0
9.1

3.4

-.2

-6.6

-9.9

-8.6

-7.2

42.8

Purchases of goods and services
Transfer payments
Qrants-in-aid to State and local governments
All other 2, ___
Excess of receipts or expenditures (— )
State and local governments:
Receipts., _ _

._

Purchases of goods and services _ _
All other 2
Excess of receipts or expenditures (— ).

._

38.3

38.5

38.9

39.8

41.2

38.9

._

Expenditures

40.6

41.6

42.1

42.8

44.0

36.1

38.6
3.1

39.1
3.0

39.9

2.7

37.8
2.9

3.0

41.0
3.0

-.6

-2.1

-2.7

-2.2

—1.6

—1.2

1
2

Preliminary estimate by Council of Economic Advisers.
See Table D-53, for items included.
NOTE.—Federal grants-in-aid to State and local governments are reflected in Federal expenditures and
State and local receipts and expenditures.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).

Federal Government operations showed a large deficit, the largest being
recorded in the second quarter. Both a substantial decline in receipts and
an increase in expenditures contributed to the shift from a surplus in the third
quarter of 1957 to a deficit in the first quarter of 1958. Federal receipts
reached a low point in the first and second quarters of 1958; by the fourth
quarter, they had recovered all the loss since the third quarter of 1957. Expenditures, however, continued to rise in each quarter of 1958; and by the
third quarter, they were more than 10 percent above expenditures a year
earlier. All major types of Federal expenditures increased, with the largest
rise occurring in transfer payments.




120

Purchases of goods and services by the Federal Government in the first
quarter of 1958 were about the same as in the last two quarters of 1957,
but in the following three quarters they increased at an accelerating rate.
Payments for national defense, by far the largest component, account for
some of the increase during this period. Greater outlays for the support of
agricultural prices, as well as increased payments to Government employees,
contributed to the increase in nondefense purchases of goods and services.
The steady rise in transfer payments through the third quarter of 1958
reflects primarily higher unemployment insurance payments as well as increased benefit payments under the old-age, survivors, and disability system.
Likewise, benefit payments from other social insurance funds, and compensation and pension payments to veterans, have been increasing.
Grants-in-aid to State and local governments have been rising, particularly in the last three quarters of 1958. The two major items accounting
for the rise are the increase in Federal public assistance grants to States
and grants-in-aid under the highway program.
State and local receipts and expenditures during this period show a
steady upward trend. However, while the increases in expenditures in
the fourth quarter of 1957 and the first quarter of 1958 were more rapid
than the increases in receipts, the gap between receipts and expenditures
narrowed in subsequent quarters. State and local purchases of goods and
services rose steadily during this period; the most significant expenditures
were for education and for the construction of highways and other facilities.




121

VI. United States Foreign Trade and Payments
Changes during the past two years in the economic situation in the United
States and abroad inevitably affected this country's foreign trade and payments. While imports were well maintained, exports declined sharply after
mid-195 7; as a result, the United States surplus on transactions in goods and
services in the first half of 1958 was much below the high level attained a year
earlier and about the same as in 1956 (Table C-22). At the same time, the
net outflow of capital remained considerably above the early 1956 rate.
These changes resulted in substantial additions to foreign gold and liquid
dollar assets. Thus a movement which had proceeded for several years
before the Suez crisis was resumed, but at a higher rate.
TABLE C—22.—United States balance of payments, selected periods, 1952—58 *
[Millions of dollars]

July 1952June 1956 1956,
1957,
(annual first half first half
average)

Receipt or payment

1958
First
half

Third
quarter

Seasonally adjusted annual rates
18, 955

Merchandise imports
Services and military expenditures _
Remittances and pensions
Government grants and related capital outflows (net)_.
United States private and other Government capital
outflows (net)
Excess of receipts or payments:
All transactions
Goods and services
._
Capital, grants, remittances and pensions
Errors and omissions (net receipts)

_ __ _

Increase in foreign gold and liquid dollar assets through
transactions with the United States
.__ .

27, 716

22, 946

23, 324

16, 246
6,160
564

20, 044
7,086
586

16, 154
6,764
28

16, 324
7,000

24, 408

27, 860

26, 334

26, 876

11,154
5,983
601
2,128

12, 530
7, 050
610
2,428

13, 198
7,336
686
2,978

12, 538
7,518
676
2,454

12,712
7,880
724
2,412

1,037

1,790

3,662

3,148

3,148

-1,438
2,826
-4, 264

-144
6,596
-6, 74C

-3, 388
2,862
-6, 250

-3. 552
2,732
-6, 284

303

United States payments -

22, 970

-1,948
1,523
-3, 471

Merchandise exports
_ _
Services and military transactions
Foreign long-term investments in United States

13, 401
5,259
295

20,903

U nited States receipts -

214

1,148

386

376

1,645

1,224

-1,004

3,002

3,176

1
The selection of periods is dictated by the behavior of certain major items in the balance of payments,
especially that of United States exports. Mid-1952 to mid-1956 provides a base period of more or less normal
development of trade and payments after the repercussions of the Korean conflict were over and before the
effects of the Suez crisis were felt; the first half of 1956 is given separately to show the levels prevailing at the
end of that period. The first half of 1957 shows United States exports and other transactions at their peak,
influenced by the general level of economic activity as well as by the Suez situation and other special forces.
The first half and third quarter of 1958 give the more current situation, affected by the recession and other
developments.
2
Transfers of military aid are excluded both from exports (under receipts) and from grants (under payments) .
Source: Department of Commerce.




122

REASONS FOR DECLINE IN UNITED STATES EXPORTS
From the first half of 1957 to the first half of 1958, the value of United
States merchandise exports fell more—in relative as well as absolute terms—
than those of all other countries combined (Table C-23; also Chart 11
TABLE C-23.—Exports of the United States and other .countries, 1956-58
Foreign countries l
United
States

Period

Total

Western
Other
Europe,
Canada, countries 2
and Japan

Billions of dollars, seasonally adjusted
annual rates

16.2
18.4

1957: First half
Second half
1958: First half. ..
Third quarter

__

43.2
44.8

30.2
30.2

79.6
79.6

47.9
48.2

31.7
31.4

16.1
16.3

__

73.4
75.0

20.0
18.6

1956: First half.
Second half. _ _ _ _ _

77.1
378.6

47.2
347.9

29.9
330.7

-1.5
-2.0

-5.7
-6.5

Percent
Change, first half 1957 to first half 1958:
Value
Unit value

-19.5
-.5

-3.1
-4.0

1
2
3

Excludes exports of U.S.S.R. and Soviet bloc countries.
Includes Ireland, Iceland, Finland, Spain, and Yugoslavia.
Preliminary.
Sources: Department of Commerce, International Monetary Fund, and United Nations.

in Chapter 2). The reduction in the value of exports of foreign countries
was due chiefly to a fall in export prices of the primary producing countries.
Exports of the industrially developed countries declined relatively little, and,
unlike those of the United States, remained significantly higher in the first
six months of 1958 than in the first half of 1956. Exports, adjusted for
seasonal variations, of these other industrial countries rose moderately again
in the third quarter of 1958; and exports of the United States were slightly
higher in that quarter than earlier in the year.
Examination of the export performance of the United States discloses
that by far the greater part of the recent decline, as well as much of the
sharp rise immediately preceding it, is attributable to developments in
a few products. Six major commodities or commodity groups, which
usually constitute only about 30 percent of total United States exports,
accounted for most of the rise from the first half of 1956 to the first
half of 1957 and for about three-fourths of the fall in the first half of 1958
(Table C-24).
Special circumstances dominated the movements of petroleum, cotton,
and wheat. Petroleum exports were temporarily swollen in the first half
of 1957 by the interruption of traffic through the Suez Canal. Cotton
exports, which had been abnormally low in the first half of 1956, pending




123

TABLE C-24.—Change in United States exports, 1956 to 1958
[Millions of dollars, annual rates]
Change
Exports,
first half
1956

Commodity group !

Total exports, excluding "special category"

First half
First half
1956 to first 1957 to first
half 1957
half 1958

16. 294

Other exports *
Meat and dairy products, lard, and other edible animal
products
Oils, greases, and other inedible animal products
Vegetable food prr ducts and beverages, excluding wheat. . .
Rubber and manufactures
Oilseeds and expressed oils.
..
Wood and paper
Lubricating oil and~ other petroleum products
Metal manufactures
...----.
.
.. ..
Machinery, all types
Chemicals and related products
Textile manufactures (semi- and finished manufactures)
Selected finished manufactures 3
All other products 4

-3, 920

2,357

-2,992

214
484
669
630

582
794
241
224

-617
-422
-335
-328

1,526
1,506

562
-46

-1,030
-260

11, 265

Crude petroleum and selected fuels 2 _
Raw cotton including linters
Wheat
Coal and related fuels
Iron and steel-mill products, nonferrous metals, scrap, and
ferroalloys
Automobiles and parts and accessories

3,690

5,029

Six main items in the decline '

1, 333

-928

383
313
1,235
262
256
444
308
462
3,612
1,244
632
673
1,441

29
21
-28
46
78
46
46
44
438
164
66
91
292

-140
-60
97
-26
-137
-44
-72
-20
-218
-60
-68
-41
-139

1
Exports grouped to show main products accounting for the decline from first half 1957 to first half 1958.
See Table D-73 for additipnal detail by area.
2
Includes gas oil, fuel oil, and motor fuel other than aviation gasoline.
3
Includes photographic and projection goods, scientific and professional instruments, musical instruments, miscellaneous office supplies, small arms and ammunition, books, maps, and other printed matter.
4
Includes, in addition to miscellaneous items, such exports as tobacco and tobacco products, articles for
charity, and total reexports of merchandise.
Sources: Department of Commerce and Council of Economic Advisers.

a revision of the United States export price, rose subsequently when foreign
stocks were being replenished, but later declined, although they still were
relatively high. Wheat shipments were exceptionally large for a time
because of the poor 1956 harvest in Europe and because of deliveries to
the Far East under special programs.
Two other export items—metals and coal—proved to be extremely
sensitive to changes in demand—first when foreign production capacity
was strained during the boom and later when excess capacity emerged.
The effect of this changed world market situation on United States steel
exports has been aggravated by intensified price competition from foreign
suppliers. United States coal remains strongly competitive at its landed
price abroad, but it is encountering serious obstacles in Europe. There,
stocks have piled up at pithead because of continued high coal production
in the face of decreased demand as a result of reduced activity in the European steel industry, cuts in users' stocks, gains in coal-burning efficiency,
and further displacement by fuel oil.
Exports of automobiles, parts, and accessories have shown a general and
pronounced decline, after having failed to share in the over-all rise in




124

United States exports in 1957. The decline in 1958—especially that in
exports of motor trucks which had previously increased—is attributable in
considerable part to cyclical influences. Exports of passenger cars and of
chassis, however, have fallen over the last several years so much that they
now represent only a quarter of the total value of exports of this group.
Meanwhile, exports of foreign cars have risen rapidly; in the first half of
1958, their value was equivalent to five times the American exports of passenger cars and chassis. The growth in demand abroad for the small foreign models reflects the spread of the market to lower income groups, the
increase in traffic congestion in many cities, steeply graduated taxes on
large cars and high gasoline taxes in many countries, continued restrictions
on car imports in the producing countries, and, in some other countries,
preferential import treatment for small cars.
In addition to the influence of the shifts in the major export items just
discussed, United States exports have been affected by changes in the economic situation in certain countries. The annual rate of sales to Canada
alone in the first half of 1958 was $750 million below the rate a year earlier.
Half of this decline was in exports of products other than the six discussed
above (Table D-73). The decline in sales of machinery to Canada is especially noteworthy since it is in contrast to such sales to most other countries
and reflects a slower rate of industrial investment in Canada.
Much of the $400 million decline in the annual rate of exports to Western Europe (Table D-73) of items other than the six separately discussed
is directly attributable to changes in general business conditions or in agricultural production, though the effects of these changes have been felt by other
suppliers as well.
In summary, the relatively sharp decline in United States exports after
the middle of 1957 is accounted for by a combination of factors: the disappearance of certain special circumstances which had, for a time, raised
shipments of petroleum, cotton, and wheat to exceptionally high levels; and
cyclical shifts which had also lifted certain exports, such as steel and other
metals, to unusually high levels but which now leave them temporarily
depressed. Both sets of influences have affected United States exports with
particular force because of their broad commodity composition, which differs
from that of any other industrial country, and to some extent also because
of their country distribution. These reasons for the wide swings in United
States exports, however, do not diminish the importance of efforts to
strengthen the position of the United States in a more highly competitive
world market.
FACTORS OF STRENGTH AND WEAKNESS IN UNITED STATES IMPORTS
The total value of United States imports, on the other hand, has been
relatively well maintained. This comparative strength is attributable to
several forces, including particularly the maintenance of consumer demand.




'25

TABLE C-25.—Change in United States imports, 1956 to 1958
[Millions of dollars, annual rates]
Change
Imports,
first half
1956

Commodity group l

....

half 1958

12, 473

Meats meat products and cattle
Other foods, except coffee
Petroleum and products
Automobiles

_ -

420

728

164
1,696
1,232
128

Items showing little change l

323

3, 220

Main items increasing l

24
-30
266
160

216
190
114
208

-298

3,611

Sawmill products
Chemicals and related products
_. Machinery, including agricultural and office
Textile manufactures 2
Selected finished manufactures 8
_-. \11 other products
Main items decreasing1.

First half

half 1957

Total imports for consumption

First half

1956 to first 1957 to first

..

. _..
_

...

Coffee
Nonferrous metals, iron ore, ferroalloys and steel-mill
products
_ .
Diamonds, rough, cut, and bort.
..- _.. __
Natural crude rubber
Wool and other textile fibers 4
Newsprint and paper base stocks
. -

47

-52

300
290
374
608
184
1, 855

-68
-6
70
4
34
13

-14
-2
18
-2
-6
-46

5, 642

-144

-974

1,500

-84

186

2,028

204
-52
-108
-68
-36

-482
-34
-100
-102
-70

244
450
416
1,004

1
2
3

Imports grouped according to direction of change from first half of 1957 to first half 1958.
Semimanufactures other than man-made filaments included.
Leather goods, photographic goods, scientific and professional instruments, toys and athletic goods,
advanced metal manufactures.
4
Cotton, silk, man-made filaments, and hard fibers.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.

As shown in Table C-25, the value of a substantial number of imported
commodities has either increased or changed very little. Imports of automobiles,, especially, continued to rise during the recession; imports of meat
and other foodstuffs, except coffee, were substantially greater in the first
half of 1958 than a year earlier, though largely because of temporary conditions affecting domestic supplies of some of these products; and petroleum
imports were also higher, but the increase was less than in the first half of
1957, when the rise from a year earlier was due to higher prices as well as
greater volume.
The value of imports of coffee in the first half of 1958 was sharply below
the value in the same period of 1956 and of 1957. The pressure of coffee
supplies on the market resulted in some weakening of prices and therefore
in increased caution in dealers' inventory policies; as a result, the volume as
well as the price of coffee imports declined.
The other main commodity imports shown in Table C-25 as decreasing
are all in the nature of industrial materials. This group as a whole declined
by an annual rate close to $800 million, or almost 20 percent, from the first
half of 1957 to the first half of 1958. Reductions in volume and in price
were of about equal importance.




126

These changes in United States imports affected different supplying
countries and areas according to the composition of their exports. Exports
from the Middle East to the United States increased because of petroleum;
those from Mexico and Cuba expanded chiefly because of meat and other
foodstuffs. On the other hand,, exports to the United States from the
coffee-supplying countries in Latin America were depressed, and also
those from Canada and Latin American countries for which nonferrous
metals and other industrial materials are important. Influenced by good
markets for cocoa and for African types of coffee, United States imports
from Africa were well maintained. Imports from Europe fluctuated very
little, as increases in automobiles offset decreases in steel and other metals.
Imports from Japan rose, but those from other areas in the Far East fell
because of smaller United States purchases of rubber and tin.
INCREASE IN UNITED STATES INVESTMENT ABROAD
Like receipts from exports, the net outflow of funds in the form of
capital investment and grants from the United States had risen to a peak
in the first half of 1957. The subsequent decline, however, was smaller
than the decrease in exports, and the net outflow of funds in the first six
months of 1958 still exceeded that in the corresponding period in 1956 or
earlier (Table C-22). The large outflow in 1957 included substantial payments for oil concessions (Table D-72) and related investment activities
in Venezuela. The net outflow of capital exclusive of these payments continued to increase during each of the last several years. Preliminary estimates indicate that the net outflow in the third quarter of 1958, adjusted
to correct for the usual summer lull, was about the same as in the first half
of the year, though with offsetting changes in the component items.
The largest increase over the first half of 1956—at least up to mid1958—was in new foreign security offerings; United States private direct investment abroad, after a considerable expansion in 1957, fell back to its earlier
level. (For details by type and area of investment, see Tables D-71 and
D-72.) Private short-term credits abroad and Government lending have
also risen, while the inflow of foreign redemption payments to American
bondholders and of foreign long-term investment in this country has
declined.
There may also have been some unrecorded capital outflow, following
the large shifts of funds to the United States during the Suez crisis and
the subsequent currency speculation in Europe. By their nature, such
shifts frequently do not appear in the recorded data on capital flows, and
the only evidence of these movements lies in the behavior of the residual
items (errors and omissions) in the United States global balance of payments (Tables C-22 and D-71). This item normally shows unidentified
receipts of several hundred million dollars annually, because of overestimates of certain payments or underestimates of certain receipts for
which precise records are not available. With due allowance for this dc-




127

ficiency in the estimates, the inflow of unrecorded capital during the 12
months from October 1956 through September 1957 seems to have reached
something like $1 billion. Any subsequent outflow of these funds has
been small, at most, or outweighed by other unrecorded receipts.
The high level of foreign security flotations in the United States during
the first half of 1958 is accounted for largely by bond offerings by the International bank for Reconstruction and Development to finance its growing lending operations abroad, and by Canadian issues. The spread
between interest rates in the United States and Canada in the early part of
the year gave a particular inducement to the flotation of Canadian issues
in the United States market. There has also been, especially in the latter
part of 1958, a noteworthy rise in securities offered by overseas countries.
Foreign bonds payable in United States dollars have again become an
attractive investment medium for security buyers, both in this country and
abroad.
The large outflow of public and private capital from the United States
since the end of the war has helped to achieve a rapid growth in the world
economy. It has also made possible a high volume of United States exports,
directly by providing funds which were spent on United States goods and
indirectly by leading to the strengthening of foreign reserves and helping to
remove obstacles to international trade and payments. When, as recently,
foreign purchases of American goods slacken for any reason, a continuing
strong flow of dollars for imports and for foreign investment and grants
results, for the time being in a faster increase in the gold and dollar holdings of other countries. At the same time, however, these movements
strengthen the basis for economic expansion and generate conditions favorable to the growth of United States exports. Such considerations are
pertinent to an appreciation of the foreign trade and payments position of
the United States in 1958.
RISE IN GOLD AND DOLLAR HOLDINGS OF INDUSTRIAL COUNTRIES
Since the autumn of 1957, foreign countries and international institutions
have increased considerably their holdings of gold and liquid dollar assets
through transactions with the United States. During the year ended September 1958, their gains from this source totaled $0.8 billion in dollar funds
and $1.8 billion in gold. Inclusive of gold acquired from new foreign production or other sources outside the United States, the 12-month gain in
gold and dollar balances owned abroad amounted to $3.4 billion.
This gain, however, accrued almost exclusively to the industrially developed countries; the holdings of other countries decreased considerably. The
12-month changes in foreign gold and dollar holdings (in millions of dollars) were distributed as follows: United Kingdom, +1,380; Netherlands,
+ 421; Belgium, +326; Italy, +416; Federal Republic of Germany. +263;
Switzerland, +165; other Western Europe, +545; Canada, +149; Japan,
+ 312; Venezuela, —382; other Latin America, —226; all other countries,




128

— 311; international institutions, + 351 (see Table D-75 for further details).
The increases were primarily in reserves of countries which ordinarily hold
official reserves chiefly in gold, though some of them also added to their
dollar holdings on official or private account. Conversely, the decreases
were largely in countries (for example, most Latin American countries),
which usually keep most or much of their official reserves in dollars, in
addition to private funds held in this currency; however, some of them had
to reduce their gold holdings also.
INCREASE IN THE USE OF DOLLARS FOR MULTILATERAL SETTLEMENTS
The large increases in the gold and dollar holdings of the industrially advanced countries—Western Europe, Canada, and Japan—resulted in considerable part from the strains in the foreign trade and payments of the less
developed countries and of certain others which are also exporters of primary
products. Domestic inflation, overimporting, and widespread declines in
the prices of export commodities and in export earnings in recent years
have caused sharp increases in the trade and payments deficits of the primary producing countries with third areas, chiefly Western Europe. (For
changes in trade flows, see Chart 11 and Table D-74.) As a regular
feature of the multilateral trade system, part of these deficits is usually
settled in dollars. Indirect evidence indicates that the amount of dollars
so employed recently has been much greater than in the years prior to 1957;
in this comparison, 1957 is disregarded because of the exceptionally large
deficits on trade or capital account of certain Western European countries
and Japan.
The data in Table C-26 (though subject to a considerable margin of
error) suggest that the net annual rate of gold and dollars used for multilateral settlements by the countries exporting primary goods was at least $1
billion or more higher in the first half of 1958 than in the first half of 1956,
and higher still in comparison with the 1952—56 average. The fact that
the net receipts of gold and dollars of Western Europe, Canada, and Japan
via multilateral settlements have risen by a still greater amount in the period
since 1956 reflects the increased activity of the International Monetary
Fund—which has helped to relieve strains in international payments—and
the increase in loans by the International Bank for Reconstruction and
Development.
The increase in multilateral settlements, far more than any change in
the net receipts of the industrial countries from the United States, accounts
for the recent large increases in the gold and dollar accumulations of this
group of countries.
By far the greater part of dollar settlements of the primary producing
countries with the industrial group has been covered by their net receipts
from the United States, as shown in Table C-26. These receipts, together
with the growing financial support given by the United States through
international institutions, have effectively assisted in rebuilding and




129

TABLE C-26.—Use of gold and dollars for international settlements, selected periods,
1952-58
[Millions of dollars]
July 1952June 1956
(annual
average)

Area and item

1957,
first
half

1956,
first
half

1958,
first
half

Annual rates
Western Europe:
Increase in gold and dollar holdings
Less:
Net receipts from known transactions with the
United States !
Goods and services
Capital 2 and grants

Canada:
Increase in gold and dollar holdings
LessNew gold production
Net receipts from known transactions with the
United States »
Goods and services _ _ _
Capital 2 and grants

3,540

-235

1,410

80
990

-1,480
1,245

285
1,125

190

860

2,130

55
150

270
155

430
155

440
160

_

Equals' Other gold and dollar receipts, net
Japan:
Increase in gold and dollar holdings
Less:
Net receipts from known transactions with the
United States J
_ .

Other countries:
Increase in gold and dollar holdings 3
Less*
New gold production 3
Net receipts from known transactions with the
United States!

-575

-990

-635

-75

-970
395

-1,725
735

-1,920
1,285

-1,250
1,175

480

_

Equals* Other gold and dollar receipts, net ...

625

1,070

450

Equals* Other gold and dollar receipts, net

1,260

140
1,110

_

1,700
1,250

1,105

910

355

80

290

-785

435

325

350

-325

250

-245

-60

-460

185

200
665

330
725

890
740

-765
785

Addendum:
Deficiency in sum of net gold and dollar receipts as given
above
Unidentified transfers, net, to the United States 4
Other unidentified uses [or receipts (— )] of gold and
dollars, n e t .
.
_ _ _ _ _ _

1,400

1,500

-2,650
4,050

-1,900
3,400

-1,795

-1,250

-3,050

165

115

-900

450

75

40

320

660

90

Equals* Other gold and dollar receipts, net

1,400
-1,290
2,690

-1,335

Equals' Other gold and dollar receipts, net
International institutions:
Increase in gold and dollar holdings
Less:
Net receipts from known transactions with the
United States '

870

-885
1,755

Goods and services
Capital 2 and grants •>

75

-1, 220

-210

560

485

1,160

590

290

315

1,250

485

270

170

-90

105

1
See Table D-72. The balance for Japan, however, is a rough estimate by the Council of Economic
Advisers, and the figures for "other countries" have been adjusted accordingly to exclude Japan.
2
Includes movements of long- and short-term U. S. capital and of foreign long-term investments in the
United States (other than United States Government securities).
3
Excludes gold holdings and gold production of the U.S.S.R. and other countries of the Soviet bloc
4
Errors and omissions item in Table D-71, expressed as an annual rate rounded to the nearest $5 million
NOTE.—The area or country figures on "other gold and dollar receipts" (derived as a residual in the
manner indicated above) include not only inter-area settlements but also unrecorded transfers to the United
States. The latter are known only on a net global basis Cas the errors and omissions item in the United
States over-all balance of payments). They explain, as shown in the addendum to the table above, most
of the discrepancy between the sums of the plus and minus figures for "other gold and dollar receipts."
The remainder of the discrepancy would, in principle, represent the net effect of such operations as (a) use
of gold in the arts and industry or for hoarding and (6) receipts of gold from dishoarding or from Soviet
sales.

Source: Council of Economic Advisers.




130

strengthening the framework of multilateral trade and payments and have
contributed much to the progress in overcoming restrictive forces in the
world economy.
For the remainder of their multilateral gold and dollar settlements, the
primary producing countries have drawn on their accumulated gold and
dollar holdings. In addition, they reduced their balances in other currencies; sterling balances alone were drawn down in the first half of 1958
at an annual rate of some $300 million, compared with no reduction two
years earlier.
Preliminary estimates indicate that in the third quarter of 1958 the
primary producing countries continued to make large settlements in gold
and dollars, covered partly by their net receipts from the United States
and partly by further drawings on their reserves. Canada also showed
net payments for the quarter, though perhaps for seasonal reasons. Western Europe's net gold and dollar receipts from third countries continued
at about the same rate as earlier in the year; these receipts, together with
a large surplus in transactions with the United States, caused Western
Europe's gold and dollar holdings to rise further.
UNITED STATES EXPORT PERFORMANCE AND
THE ADJUSTMENT PROBLEM
The increase in the foreign investment and other payments of the United
States in recent years has not been matched by an equally large growth in its
exports of goods and services. The annual rate of outflow through private
and public investments and grants, net of foreign long-term investment in
this country, was some $2.8 billion higher in the first three quarters of 1958
than in 1952-56 (Table C-22). Imports of goods and services together
with military expenditures abroad rose over the same period by $3.1 billion.
Thus, the total increase in these transactions was $5.9 billion.
Exports of goods and services have risen about $4.4 billion above the
1952-56 average, or at an annual rate of 6 percent. Most of this increase
had occurred by 1956, and was surpassed temporarily in 1957 because of
exceptional demand forces at that time. The level actually attained in
1958 can be regarded as a significant increase in relation to earlier years,
since foreign economic conditions last year were not favorable to the normal
development of United States exports. Some major shifts in international
trade were unavoidable, not only because of the cessation of certain conditions (such as those related to the Suez crisis) that had prevailed in the
early part of 1957, but also because various maladjustments had arisen during the previous period of rapid growth (see Chapter 2 ) . Contrasting developments during the two latest recessions illustrate the significance of sustained world economic growth for United States exports. While United
States imports slackened in the 1953-54 recession and remained weak for
some time, exports, after only a momentary pause, followed the upward
course of economic activity abroad (Charts 10 and 11) and contributed to
recovery in the United States.







Appendix D
STATISTICAL TABLES

133
4890160—59




-10




CONTENTS
National income or expenditure:
D-l. Gross national product or expenditure, 1929-58
D-2. Gross national product or expenditure, in 1958 prices, 1929-58
D-3. Gross private and government product, in current and 1958 prices,
1929-58
D-4. Gross national product or expenditure, in 1954 prices, 1929-58
D-5. Implicit price deflators for gross national product, 1929-58
D-6. Gross national product: Receipts and expenditures by major economic
groups, 1929-58
D—7. Personal consumption expenditures, 1929-58
D-8. Gross private domestic investment, 1929-58
D-9. National income by type of income, 1929-58
D-10. Relation of gross national product and national income, 1929-58. . . .
D—11. Relation of national income and personal income, 1929-58
D-l2. Sources of personal income, 1929-58
D-l 3. Disposition of personal income, 1929-58
D-l 4. Total and per capita disposable personal income and personal consumption expenditures, in current and 1958 prices, 1929-58
D-l 5. Financial saving by individuals, 1939-58
D-l 6. Sources and uses of gross saving, 1929-58
Employment and wages:
D-l 7. Noninstitutional population and the labor force, 1929-58
D-l8. Employment and unemployment, by age and sex, 1942-58
D-l 9. Employed persons not at work, by reason for not working, and special
groups of unemployed persons, 1946-58
D—20. Unemployed persons, by duration of unemployment, 1946-58
D—21. Unemployment insurance programs, selected data, 1939 and 1946-58.
D-22. Number of wage and salary workers in nonagricultural establishments,
1929-58
'
D-23. Average weekly hours of work in selected industries, 1929-58
D—24. Average gross hourly earnings in selected industries, 1929-58
D—25. Average gross weekly earnings in selected industries, 1929-58
D-26. Average weekly hours and hourly earnings, gross and excluding overtime, in manufacturing industries, 1939-58
D—27. Average weekly earnings, gross and net spendable, in manufacturing
industries, in current and 1958 prices, 1939-58
D-28. Labor turnover rates in manufacturing industries, 1930-58
Production and business activity:
D-29. Industrial production indexes, 1929-58
D—30. Business expenditures for new plant and equipment, 1939 and 1945-59 .
D-31. New construction activity, 1929-58
D-32. New public construction activity, 1929-58
D—33. Housing starts and applications for financing, 1929-58
D—34. Sales and inventories in manufacturing and trade, 1939-58
D—35. Manufacturers' sales, inventories, and orders, 1939-58




135

Page
139
140
142
143
144
146
148
149
150
151
152
153
154
155
156
157
158
160
161
162
163
164
166
167
168
169
170
171
172
174
175
176
177
178
179

Prices:
Page
D-36. Wholesale price indexes, 1929-58
180
D-37. Wholesale price indexes, by stage of processing, 1947-58
182
D-38. Consumer price indexes, 1929-58
184
D-39. Consumer price indexes, by selected major groups, 1935-58
185
Money supply, credit, and finance:
D-40. Deposits and currency, 1929-58
186
D-41. Loans and investments of all commercial banks, 1929-58
187
D-42. Federal Reserve Bank credit and member bank reserves, 1929-58. . . .
188
D-43. Bond yields and interest rates, 1929-58
189
D-44. Short- and intermediate-term consumer credit outstanding, 1929-58. . 191
D-45. Instalment credit extended and repaid, 1946-58
192
D-46. Mortgage debt outstanding, by type of property and of financing,
1939-58
193
D-47. Net public and private debt, 1929-58
194
Government finance:
D-48. U. S. Government debt, by kind of obligation, 1929-58
195
D-49. Estimated ownership of Federal obligations, 1939-58
196
D-50. Federal budget receipts and expenditures and the public debt,
1929-60
197
D-51. Federal budget receipts by source and expenditures by function, fiscal
years 1946-60
198
D-52. Government cash receipts from and payments to the public, 1946-60. .
199
D-53. Government receipts and expenditures as shown in the national income
accounts, 1955-58
200
D-54. Reconciliation of Federal Government receipts and expenditures in
the conventional budget and the consolidated cash statement with
receipts and expenditures in the national income accounts, fiscal
years 1956-58
201
D-55. State and local government revenues and expenditures, selected fiscal
years, 1927-57
202
Corporate profits and finance:
D-56. Profits before and after taxes, all private corporations, 1929-58
203
D-57. Relation of profits before and after taxes to stockholders' equity and
to sales, private manufacturing corporations, by asset size class,
1956-58
204
D-58. Relation of profits after taxes to stockholders' equity and to sales,
private manufacturing corporations, by industry group, 1956-58. .
205
D-59. Sources and uses of corporate funds, 1947-58
207
D-60. Current assets and liabilities of U. S. corporations, 1954-58
208
D-61. State and municipal and corporate securities offered, 1934-58
209
D-62. Common stock prices and earnings and stock market credit, 1939-58.
210
D-63. Business population and business failures, 1929-58
211
Agriculture:
D-64. Income of the farm population, 1929-58
212
D-65. Farm population, employment, and productivity, 1929-58
213
D-66. Farm production indexes, 1929-58
214
D-67. Indexes of prices received and prices paid by farmers, and parity
ratio, 1929-58
215
D-68. Comparative balance sheet of agriculture, 1940-59
216
D-69. Level-of-living indicators for farm-operator families, selected years,
1920-56
216
D-70. Selected indicators of farming conditions, 1929-58
217




136

International transactions:
D-71. United States balance of payments, 1952-58
D-72. United States balance of payments with individual areas, 1952-58. . . .
D—73. United States exports by selected commodities and markets, 1956-58 .
D-74. World exports, 1956-58
D-75. Estimated gold reserves and dollar holdings of foreign countries and
international institutions, 1952 and 1956-58
D—76. Price changes in international trade, 1955-58




137

Page
218
219
222
223
224
225




NATIONAL INCOME OR EXPENDITURE
TABLE D-l.—Gross national product or expenditure, 1929-58
[Billions of dollars]
Gross private domestic investment 2

Period

PerTotal sonal
gross conna- sumptional tion
prodexuct penditures i

§
1

1
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 6
1958
1956:
First quarter
Second quarter __
Third quarter
Fourth quarter _ _
1957:
First quarter
Second quarter __
Third quarter
Fourth quarter __
1958:
First quarter
Second quarter
Third quarter
Fourth quarter 6 _

Government purchases of
goods and services

£

Is
2~ •°'S
fi-3

Federal

X!

II j!>-§ ** 1
3 O<
^ o>

"3

Net exports of
goods and
services 3

1

CJ w

£

s

£

I

en

I
w

•§
o
a
s

3

h-H

e

'cs

1

11
'£ Oi

ccid

feS ^3
£3 c

CD
ft

6

1. 3
1. 4
1. 5
1. 5

03

9t3
<D

J 1
|

00

104.4
91.1
76.3
58.5
56.0
65.0
72.5
82.7
90.8
85.2
91.1
100.6
125.8
159.1
192.5
211.4
213.6
210.7
234.3
259.4
258.1
284.6
329.0
347.0
365.4
363.1
397.5
419.2
440.3
436.7

79.0
71.0
61.3
49.3
46.4
51.9
56.3
62.6
67.3
64.6
67.6
71.9
81.9
89.7
100.5
109.8
121.7
147.1
165.4
178.3
181.2
195.0
209.8
219.8
232.6
238.0
256. 9
269.4
284.4
290.6

16.2
10.3
5.5
.9
1.4
2.9
6.3
8.4
11.7
6.7
9.3
13.2
18.1
9.9
5.6
7.1
10.4
28.1
31.5
43.1
33.0
50.0
56.3
49.9
50.3
48.9
63.8
68.2
65.3
53.5

8.7
6.2
4.0
1.9
1.4
1.7
2.3
3.3
4.4
4.0
4.8
5.5
6.6
3.7
2.3
2.7
3.8
11.0
15.3
19.5
18.8
24.2
24.8
25.5
27.6
29.7
34.9
35.7
36.5
36.5

5.8 1.7 0.8
4.5 -.4
.7
.2
2.8 1 3
.2
1.6 -2.6
.2
1.6 -1.6
1 l
.4
2.3
3.1
.9 -.1
4.2 1.0 -.1
.1
5.1 2.2
3.6 -.9 1.1
.4
.9
4.2
5.5 2.2 1.5
6.9 4.5 1.1
4.3 1.8 -.2
4.0 -.8 -2.2
5.4 -1.0 -2.1
7.7 -1.1 -1.4
10.7 6.4 4.9
16.7 -.5 9.0
18.9 4.7 3.5
3.8
17.2 -3.1
18.9 6.8
.6
21.3 10.2 2.4
21.3 3.1 1.3
A
.4
22.3
20.8 -1.6
i.'o
23.1 5.8 1.1
27.0 5.4 2.8
27.9 1.0 4.9
22.6 -5.6
1.3

7.0
5.4
3. 6
2.5
2.4
3.0
3.3
3.5
4.6
4.3
4.4
5.4
6.0
4.9
4.5
5.4
7.4
12.8
17.9
14.5
14.0
13.1
17.9
17.4
16.6
17.5
19.4
23.0
26.0
(7)

6.3
4.8
3.4
2.3
2.3
2.5
3.3
3.6
4.5
3.2
3.5
3.8
4.8
5.1
6.8
7.5
8.8
7.9
8.9
11.0
10.2
12.5
15.5
16.1
17.0
16.5
18.3
20.2
21.0
(7)

8.5
9.2
9.2
8.1
8.0
9.8
10.0
11.8
11.7
12.8
13.3
14.1
24.8
59.7
88.6
96.5
82.9
30.5
28.4
34.5
40.2
39.0
60.5
76.0
82.8
75.3
75.6
78.8
85.7
91.2

1.3
1.4
1.5
1.5
2.0
3.0
2.9
4.8
4.6
5.3
5.2
6.2
16.9
52.0
81.2
89.0
74.8
20.6
15.6
19.3
22.2
19.3
38.8
52.9
58.0
47.5
45.3
45.7
49.4
51.6

2. 0
3. 0
2. 9
4. 8
4. 6
5. 3
1.3 3.9
2.2 4.0
13.8 3.2
49.6 2.7
80.4 1.5
88.6 1.6
75.9 1.0
18.8 4.5
11.4 5.4
11.6 8.2
13.6 8.9
14.3 5.2
33.9 5.2
46.4 6.7
49.3 9.0
41.2 6.7
39.1 6.6
40.3 5.7
44.3 5.5
44.3 7.6

410.8
414.9
420. 5
430. 5

265.2
267.2
269.7
275.4

68.0
67.7
68.1
68.8

35.2
35.8
35.8
36.2

25.9
26.6
27.3
28.2

6.9
5.4
4.9
4.4

.8
2.8
3.2
4.4

20.9
22.5
23.6
24.8

20.1
19.8
20.4
20.4

76.8
77.2
79.5
81.8

44.8
44.5
46.1
47.5

39.1
39.1
41.0
42.1

6.1
5.7
5.4
5.7

.3 32.0
.4 32.7
. i 33.4
34.4

436. 3
441.2
445. 6
438.9

279.8
282.5
288.3
287.2

65.9
67.0
66.7
61.5

36.1
36.1
36.6
37.1

28.7 1.1
28.1 2.9
28.0 2.2
26.7 -2.3

5.6
6.0
4.8
3.3

26.4
26.6
26.0
24.9

20.8
20.6
21.2
21.6

85.0
85.7
85.8
86.9

49.1
49.7
49.7
49.1

43.7
44.9
44.9
43.9

5.8
5.1
5.2
5.7

!s
i

425.8
429.0
439.0
453.0

286.2
288.3
291.5
296.5

49.6
*49.2
853.7
861.5

1.7 21.9 20.2 88.3
1.7 22.4 20.8 89.7
1.7 22.8 21.2 92.0
(7)
( 7 ) 94.8

49.7
50.7
52.2
53.8

43.7
44.1
44.5
45.0

6.3
6.9
8.0
9.2

36.3 8 22.9 Q C
34.9 22. 3
36.3 »22.3 -5.0
38.6 823.0 (8)

-s!o

(5)
(5)
(5)
(5)
(5)
(5)
(5)
(5)
(5)
(5)
(5)
(5)
(5)

0.2
.6
1.2
2.2
2.7
1.1
.5
.2
.1
.3
.3
.3
.3
.4
.3
.4
g

7.2
7.8
7.7
6.6
6.0
6.8
7.1
7.0
7.2
7.5
8.2
7.9
7.8
7.7
7.4
7.5
8.1
9.9
12.7
15.2
17.9
19.7
21.7
23.2
24.9
27.7
30.3
33.1
36.3
39.6

i 35.9
36.0
36.1
37.8
38.6
39.1
39.9
41.0

1
2
3

See Table D-7 for major components.
See Table D-8 for more detail and explanation of components.
For 1929-45, net exports of goods and services and net foreign investment have been equated, since foreign
net transfers by government were negligible during that period.
4
This category corresponds closely to the major national security classification in the Budget of the United
States Government for the Fiscal Year ending June 30,1960.
5
Less than $50 million.
6
Preliminary; fourth quarter by Council of Economic Advisers.
7 Not available.
8
Data for the last 3 quarters of 1958 have not been revised to reflect lower expenditures reported in the last
two surveys of business expenditures for new plant and equipment. See Table D-30.
NOTE.—Series revised beginning 1946. For details, see U. S. Income and Output, A Supplement to the
Survey of Current Business, 1959.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




TABLE D-2.—Gross national product or expenditure•, in 7958 prices, 7929-58 1—Continued
[Billions of dollars, 1958 prices]
Personal consumption
expenditures

Period

Total
gross
national
product
Total

Gross private domestic investment

New construction
Produc- Change
Dura- Noners'
in busiResible durable Services Total
durable ness
dential Other equip- invengoods goods
Total (nonment
tories
farm)

1929

201.0

138.0

15.7

69.4

52.9

40.6

24.1

9.6

14.5

13.2

3.3

1930
1931
1932
1933
1934

182.0
168.3
143.1
139.5
152.9

129.7
125.7
114.3
111.6
117.4

12.5
10.8
8.2
7.9
9.1

66.1
65.7
60.5
58.7
62.6

51.1
49.2
45.6
45.0
45.7

27.8
17.3
4.9
5.1
9.1

17.9
12.6
7.0
5.3
5.9

5.6
4.7
2.3
1.7
2.1

12.3
7.9
4.7
3.6
3.8

10.5
7.0
4.2
4.4
6.0

—.6
-2.3
-6.2
-4.6
-2.8

1935
1936
1937
1938
1939

168.3
191.7
202. 5
192.8
208.8

124.7
137.5
142.3
139.9
147.8

11.3
13.9
14.6
11.8
14.0

66.1
73.7
76.2
77.5
81.6

47.3
49.9
51.6
50.6
52.1

18.3
24.6
31.0
18.0
25.1

7.8
10.8
13.0
11.6
14.0

3.4
5.1
5.5
5.6
7.5

4.3
5.8
7.5
6.0
6.4

8.0
10.9
12.4
8.6
10.0

2.6
2.9
5.6
-2.2
1.1

1940
1941
1942
1943
1944

227.0
264.1
299.4
335.7
360.0

155. 7
166.0
162. 4
166.6
172.6

16.2
18.6
11.5
9.9
9.1

85.4
91.1
92.9
95.8
100.0

54.1
56.3
58.0
60.9
63.5

33.4
42.3
21.7
12.9
14.5

15.6
17.5
9.0
5.1
5.6

8.1
8.7
4.0
1.9
1.6

7.5
8.8
5.0
3.2
4.0

13.0
15.3
8.8
8.2
10.9

4.8
9.5
3.9
-.4
-2.0

354.1
312. 2
311.8
323.7
324.0

184.6
207.0
210.5
214.5
220.0

10.3
20.5
24.6
26.0
27.8

107.9
114.5
112.0
111.8
113.1

66.4
72.0
73.9
76.8
79.1

20.1
49.0
48.8
57.2
45.4

7.7
20.0
22.9
26.0
25.6

2.0
8.1
10.7
12.7
12.5

5.7
11.9
12.2
13.3
13.2

15.1
19.1
25.8
27.0
23.5

-2.8
9.9
.1
4.2
-3.7

1950
1951
1952
1953
1954

351.6
379.6
393. 3
411.1
403.2

233.4
235.3
241.4
253.1
256.3

33.9
30.8
30.1
34.9
34.2

116.2
118.3
122.3
125.9
127.0

83.3
86.2
89.0
92.3
95.1

64.4
66.9
58.6
59.1
56.7

31.3
29.9
29.8
31.7
34.1

17.2
14.3
14.2
15.1
17.1

14.1
15.7
15.6
16.6
17.0

25.3
26.1
25.9
26.7
24.7

7.8
10.9
2.9

-2.'f)

1955
1956
1957
1958 7

435.4
446.1
451.1
436.7

275.6
284.0
291.1
290.6

41.8
40.0
40.3
36.8

133.4
138.5
141.2
142.0

100.4
105.4
109.6
111.8

72.1
73.1
67.0
53.5

38.8
37.7
37.2
36.5

20.1
18.1
17.2
17.8

18.7
19.5
20.0
18.7

26.7
29.4
28.6
22.6

6.5
6.0
1.2
-5.6

1945
1946
1947
1948
1949

--.

Seasonally adjusted annual rates
1956:
First quarter
Second quarter..
Third quarter...
Fourth quarter ...

443.4
444. 1
445. 1
451.5

282.8
283.0
282.9
287.1

41.0
39.6
38.8
40.5

138. 3
138.7
138. 0
139. 2

103. 5
104.7
106.1
107.4

74.7
72.7
72.5
72.4

38.1
37.6
37.5
37.6

18.7
18.1
17.9
18.0

19.4
19.4
19.7
19.6

29.0
29.2
29.6
29.8

7 6
6.0
5.4
5.0

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

452. 4
453.7
453.3
444.4

289.1
290.1
293.9
291.3

40.9
39.8
40.7
39.8

140.0
140.8
143. 0
140.9

108.3
109. 5
110.2
110.6

68.9
68.9
67.7
62.3

37.6
36.7
37.0
37.4

17.4
16.6
16.9
17.6

20.1
20.1
20.0
19.8

29.8
28.9
28.5
27.0

1.5
3.3
2.2
-2.1

1958:
First quarter
Second quarter. _
Third quarter...
Fourth quarter 7.

427.7
429.0
438. 6
451.5

287.4
288.2
291.5
295.5

36.6
35. 8
36.1
38.6

139. 9
140.9
143.1
144.2

110.8 49.8
111.5 M9.2
112.2 ^53.7
112.8 '61.4

36.4
34.8
36.4
38.5

17.1
16. 3
18.0
20.0

19.2
18.5
18.4
18.5

23.0
'22.3
*22.3
s 23. 0

-9.5
-8.0
-5.0
(e)

See footnotes at end of table, p. 141.




140

TABLE D-2.—Gross national product or expenditure, in 1958 prices, 1929-58 l—Continued
[Billions of dollars, 1958 prices]
Government purchases of goods and services
Net
exports
of goods
and
services 2

Period

Federal
Total

1929

.

1930
1931.
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958

.9

. -

.
- --_ -

- .
.

7

.

.. .

21.5

State and
local

National
defense 3 4

Other

3.5

(5)

(6)

18.0

5
( 5)
(5)
(5)
( 5)

()
(5)
(5)
(5)
(5)
3.1
5.6
29.4
94.8
143.4
160.4
136.2
26.0
14.9
15.5
17.9
18.6
40.1
54.8
58.6
48.2

5
( 5)
( s)
()
(')
(5)
(5)
(5)
(5)
(5)
9.8
9.9
6.8
5.1
2.7
2.8
1.9
7.3
7.9
11.5
11.9
6.9
6.2
8.0
10.8
7.9

19.7
20.7
19.2
16.9
18.3
18.9
19.2
18.9
20.1
22.1
20.8
19.6
17.8
16.2
15.9
16.2
18.2
20.6
22.2
25.3
27.2
27.8
28.3
29.5
32.0

43.9
43.4
44.8
44.0

7.4
6.2
5.6
7.6

34.3
35.7
37.3
39.6

Total 3

.8
.2
.1
-.4
-.2
-1.5
-1.7
-1.1
1.4
.8
1.7
(6)
-2.4
-6.1
-6.2
-4.9
4.7
9.1
2.8
3.5
1.1
3.2
2.3
.1
2.0

23.7
25.0
23.8
23.1
26.5
26.8
31.3
30.3
33.6
35.1
36.3
55.8
117.8
162.3
179.2
154.4
51.5
43.4
49.2
55.2
52.6
74.1
91.1
98.8
88.1

4.0
4.4
4.6
6.2
8.2
7.9
12.1
11.4
13.5
13.0
15.5
36.2
99.9
146.1
163.3
138.1
33.3
22.8
27.0
29.8
25.5
46.3
62.8
69.3
56.1

2.1
3.7
5.3
1.3

85.6
85.3
87.7
91.2

51.3
49.6
50.4
51.6

Seasonally adjusted annual rates
1.5
3.7
4.2
,5.4

84.3
84.5
85.5
86.6

49.1
49.0
49.9
50.3

42.4
42.7
44.0
44.3

6.7
6.3
5.9
6.0

35.2
35.5
35.6
36.2

1957: First quarter
Second quarter
Third quarter
Fourth quarter

6.0
6.6
M
3.4

88.3
88.1
86.6
87.4

51.2
51.2
49.9
49.3

45.2
45.9
44.7
43.6

6.0
5.3
5.3
5.7

37.1
36.9
36.7
38.1

1958: First quarter Second quarter
Third quarter _ 7 . . . .
Fourth quarter

1.7
1.7
1.7
.2

88.8
89.9
91.7
94.5

49.9
50.9
51.9
53.5

43.6
44.0
44.0
44.5

6.3
6.9
7.9
9.1

38.9
39.0
39.8
40.9

1956: First quarter
Second quarter
Third quarter
Fourth quarter

... _ _

1
These estimates represent an approximate conversion of the Department of Commerce series in 1954
prices. (See Tables D-4 and D 5.) This was done by major components, using the implicit price indexes
converted to a 1958 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 scries on change in business inventories.
For explanation of conversion of estimates in current prices to those in 1954 prices, see U. S. Income and
Output, A Supplement to the Surrey of Current Business, 1959. (The basic income and product series have
been revised beginning 1946.)
2 For 1929-45, net exports of goods and services and net foreign investment have been equated, since foreign
net transfers by government were negligible during that period.
3
Net of Government sales, which are not shown separately in this table. See Table D-1 for Government
sales in current prices.
* See Table D-1, footnote 4.
5
Not available separately.
6
Less than $50 million.
7
Preliminary.
* See footnote 8, Table D-1.

NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Department of Commerce and Council of Economic Advisers.




141

TABLE D—3.—Gross private and government product, in current and 1958 prices, 7929-58
[Billions of dollars]
Current prices
Total
gross
national
product

Period

1929..

1958 prices *

Gross private product l
Total

Farm 2

Nonfarm

Gross
government
product a

Total
gross
national
product

Gross private product 1
Total

Farm 2

Nonfarm

Gross
government
product'

104.4

100.1

9.8

90.3

4.3

201.0

188.3

16.6

171.6

12.7

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

182.0
168.3
143.1
139.5
152.9

168.7
154.7
129.9
125.2
136.4

15.2
17.8
16.7
16.5
13.7

153.5
137.0
113.2
108.7
122.8

13.4
13.6
13.3
14.2
16.4

1935
1936 _
1937
1938
1939..

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

168.3
191.7
202.5
192.8
208.8

150.8
171.1
183.1
171.8
187.6

16.7
14.2
17.8
18.0
17.9

134.1
156.8
165.3
153.9
169.7

17.6
20.6
19.4
21.0
21.2

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

227.0
264.1
299.4
335.7
360.0

205.2
236.9
259.9
273.7
288.3

17.6
19.0
20.6
18.9
19.4

187.5
218.0
239.2
254.8
268.9

21.8
27.2
39.6
62.0
71.7

213.6
210.7
234.3
. _ 259.4
258.1

178.4
189.9
217.6
242.0
238.7

16.2
19.3
20.7
23.8
19.3

162.2
170.7
196.9
218.2
219.4

35.2
20.7
16.7
17.4
19.4

354.1
312.2
311.8
323.7
324.0

283.8
275.3
283.8
295.6
294.5

18.3
18.6
17.0
19.5
18.5

265.5
256.8
266.7
276.1
276.0

70.3
36.8
28.1
28.1
29.5

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

284.6
329.0
347.0
365.4
363.1

263.8
301.7
316.0
333.6
330.8

20.5
23.6
22.8
20.9
20.3

243.2
278.2
293.2
312.7
310.5

20.8
27.3
31.0
31.8
32.3

351.6
379.6
393.3
411.1
403.2

321.0
341.7
352.4
370.6
363.3

19.5
18.2
19.0
19.6
20.5

301. 5
323.5
333.4
351.0
342.8

30.5
37.9
40.9
40.5
39.8

1955
1956
1957 5
1958 _-_

397.5
419.2
440.3
436.7

363.5
382.9
401.7
395.6

19.6
19.4
19.3
22.1

343.9
363.5
382.4
373.5

34.0
36.3
38.6
41.1

435.4
446.1
451.1
436.7

395.6
405.7
410.1
395.6

21.6
21.7
21.0
22.1

374.0
383.9
389.1
373.5

39.8
40.4
40.9
41.1

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, October 1958, for description of series and estimates in current and constant prices and implicit deflators for 1910-57.
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 D-2, footnote 1.
8
Preliminary.
NOTE.—Series revised beginning 1946. For details, see U. S. Income and Output, A Supplement to the
Survey of Current Pusiness, 1959.
Detail will not necessarily add to totals because of rounding.
Sources: Department of Commerce and Council of Economic Advisers.




142

TABLE D-4.—Gross national product or expenditure, in 7954 prices, 7929-58l
[Billions of dollars, 1954 prices]
Personal consumption Gross private domestic
expenditures
investment
Total
gross
national
product

Period

.2
•8

15

3
1
Q

Is

ll

1
1

I!

si
1 II 1
3
1* I

be

o
02

0

£

Net
exports
of
soods
and
services 2

Government
purchases of
goods and
services
Gross
private
prod1 uct 4

3 3

I

O

OH

1
2
02

1929

181.8 128.1 14.9

65.3

48.0 35.0 20.9

11.1

3.0

1930
1931
1932
1933
1934

164.5
153.0
130.1
126.6
138.5

120.3 11.8
116.6 10.3
106.0 7.8
103.5 7.5
108.9 8.6

62.1
61.8
56.9
55.2
58.8

46.4 23.6 15.4
44.6 15.0 10.9
41.4 3.9 6.0
40.8 4.0 4.6
41.5 7.4 5.1

8.8
5.9
3.5
3.7
5.0

-.7
-1.8
-5.6
-4.2
-2.8

152.9
173.3
183.5
175.1
189.3

115.8
127.7
132.1
129.9
137.3

10.7
13.1
13.8
11.2
13.3

62.1
69.2
71.6
72.8
76.7

42.9
45.3
46.8
45.9
47.2

16.1 6.7
21.0 9.4
27.0 11.3
15.5 10.1
21.6 12.2

6.7 2.6 -1.9
9.2 2.4 -2.2
10.5 5.2 -1.6
7.3 -1.8
.8
8.5 1.0
.3

205. 8
238.1
266.9
296.7
317.9

144.6 15.3
154.3 17.6
150.8 10.9
154.6 9.4
160.2 8.6

80.2
85.6
87.3
90.0
94.0

49.1
51.1
52.6
55.2
57.6

29.0 13.6
36.7 15.3
18.8 7.8
10.7 4.4
12.3 4.8

10.9 4.5
1.1
12.9 8.6 -.6
7.4 3.6 -2.9
6.9 -.6 -6.6
9.2 -1.7 -6.7

314.0
282.5
282.3
293.1
292.7

171.4
192.3
195.6
199.3
204.3

9.8
19.4
23.3
24.6
26.3

101.4
107.6
105.3
105.1
106.3

60.2
65.3
67.0
69.6
71.7

17.0
42.4
41.5
49.8
38.5

6.6
17.3
19.9
22.7
22.3

12.7 -2.4 -5.6 131.2 117.1 14.0 257. 0
16.1 9.0
3.8 43.9 28.2 15.8 252.7
21.7 -.1 8.0 37.2 19.4 17.8 259.6
22.8 4.4
2.0 42.1 22.9 19.2 270.3
19.8 -3.6
2.6 47.2 25.3 21.9 268.7

318. 1
341.8
353. 5
369.0
363.1

216.8
218.5
224.2
235.1
238. 0

32.1
29.2
28.5
33.1
32.4

109.2
111.2
115.0
118.3
119.3

75.5
78.2
80.8
83.7
86.3

55.9
57.7
50.4
50.6
48.9

27.4
26.0
26.0
27.6
29.7

21.3 7.2
22.0 9.7
21.8 2.6
22.5
.5
20.8 -1.6

.2
2.2
1.2
-.9
1.0

45.1
63.3
77.7
84.3
75.3

21.6
39.3
53.3
58.8
47.5

23.5
24.1
24.5
25.5
27.7

293. 3
311.1
320.4
336.2
330.8

392.7
402.2
407.0
394.3

256.0
263.7
270.3
269.7

39.6
37.9
38.1
34.8

125.4 91.0
130.2 95.6
132.7 99.4
133.5 101.4

62.5
63.1
57.8
46.5

33.9
32.8
32.3
31.8

22.5 6.1
24.8 5.6
24.1 1.4
19.1 -4.4

.9
2.4
3.9
.1

73.2
72.9
75.0
78.0

43.5
42.0
42.7
43.7

29.7
30.9
32.3
34.3

360.4
369.4
373.8
361.0

399.6
400.4
401.4
407.1

262.7
262.9
262.7
266.6

38.8
37.5
36.8
38.4

130.0
130.3
129.7
130. 8

64.5
62.8
62.8
62.5

33.2
32.7
32.7
32.7

24.4
24.6
24.9
25.1

6.9
5.5
5.2
4.6

0.3
2.5
2.9
4.0

72.1
72.3
73.1
74.0

41.6
41.6
42.3
42.7

30.4
30.7
30.8
31.3

407.9
409.3
409.1
401.2

268.5
269.3
272.9
270.4

38.7
37.7
38.5
37.6

131. 6 98.2 59.3
132.3 99.3 59.5
134.4 100.0 58.4
132.4 100.3 54.0

32.7
31.9
32.1
32.5

25.2 1.5
24.3 3.3
24.0 2.3
22.7 -1.3

4.6
5.1
3.7
2.0

75.5
75.4
74.1
74.8

43.4
43.4
42.3
41.8

32.1
31.9
31.8
33.0

386. 2
387.3
396.1
407.8

266.7
267.4
270.5
274.3

34.6
33.9
34.2
36.5

131. 5
132.4
134.5
135.5

31.6 19.4 -7.8
30.3 718.8 -6.5
31.7 718.8 -3.9
33.6 719.3
.7

.4
.3
.5
-.9

75.9
76.9
78.4
80.8

42.3
43.2
44.0
45.4

33.6
33.8
34.4
35.4

..

1935
1936
1937
1938
1939
1940
1941
1942
1943
1944

..

1945
1946
1947
1948
1949
1950

1951 . . .
1952
1953 ..
1954

_ „

1955
1956
1957
1958 5

0.2 18.5
.2
-.3
-.3
-.8
-.6

2.9 15.6

171.5

3.4
3.7
3.9
5.3
6.9

17.1
17.9
16.6
14.6
15.8

153.7
142.0
119.4
115.0
125.1

23.0 6.7 16.3
26.9 10.3 16.6
26.0 9.6 16.4
28.8 11.4 17.4
30.1 11.0 19.1

138.7
156.6
167.8
158.1
172.1

20.5
21.6
20.5
19.9
22.8

31.1 13.1
47.7 30.7
100.1 84.7
137.9 123.9
152.2 138.4

18.0
16.9
15.4
14.0
13.8

188.1
216.0
234.8
246.4
259.8

Seasonally adjusted annual rates
1956:
First quarter
Second quarter _ _
Third quarter
Fourth quarter. .
1957:
First quarter
Second quarter, _
Third quarter....
Fourth quarter. .
1958:
First quarter
Second quarter _ _
Third quarter....
Fourth quarter 5.

93.9
95.0
C6.3
97.4

100.5 43.2
101.1 742.6
101.8 746.6
102.3 753.6

1

i For explanation of conversion of estimates in current prices to those in 1954 prices, see U. S. Income and
Output, A Supplement to the Survey of Current Busmess, 1959. (The basic income and product series have
been revised beginning 1946.) See Table D-5 for implicit price deflators.
3
For 1929-45, net exports of goods and services and net foreign investment have been equated, sine*1, foreign
net transfers by government were negligible during that period.
3
Net of Government sales.
4
Gross national product less compensation of general government employees.
5
Preliminary estimates by Council of Economic Advisers.
6
Not available.
7 See footnote 8, Table D-l.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




H3

TABLE D-5.—Implicit price deflators for gross national product, 1929-58
[Index numbers, 1954 = 100]
Personal consumption
expenditures
Gross
national
product i

Period

Gross private domestic
investment !
New construction

Total

DuraNonble
durable Services
goods goods
Total

Residential
nonfarm

Producers'
durable
Other equipment

57.4

61.6

62.0

57.7

66.8

41.7

41.8

41.6

52.5

55.4
49.9
44.9
44.2
46.9

59.0
52.6
46.5
44.8
47.6

60.5
53.5
47.0
46.1
48.8

54.8
46.9
40.0
40.3
45.3

64.2
60.3
55.3
50.7
50.7

40.0
36.5
31.1
31.2
33.3

40.8
37.1
30.1
29.8
33.1

39.7
36.2
31.7
31.9
33.4

50.5
47.9
45.5
43.1
45.9

47.4
47.7
49.5
48.7
48.1

48.6
49.1
50.9
49.8
49.2

47.9
47.9
50.3
50.8
50.2

47.2
47 A
49.1
46.7
45.8

50.9
51.9
53.8
54.5
54.5

34.1
34.8
39.0
39.1
39.0

32.6
34.3
37.8
39.2
39.5

35.4
35.2
39.9
39.1
38.4

45.6
45.4
48.7
50.2
49.4

1940
1941
1942
1943
1944

48.9
52.9
59.6
64.9
66.5

49.7
53.1
59.5
65.0
68.6

50.7
54.8
64.2
70.3
78.7

46.4
50.5
58.8
65.8
69.5

54.8
56.8
59.8
62.8
65.5

40.1
43.4
47.6
53.0
56.3

40.9
44.6
47.7
51.4
56.2

39.1
42.2
47.6
54.0
56.3

50.6
54.0
58.5
58.4
59.3

1945.
1946
1947
1948
1949

68.0
74.6
83.0
88 5
88.2

71.0
76.5
84.6
89.5
88.7

82.8
82.0
88.4
92.4
93.5

72.2
78.8
88.7
94.0
90.9

67.1
71.1
76.8
81.7
83.6

57.8
63.7
76.6
85.9
84.3

60.0
65.3
78.4
88.6
85.9

56.9
62.6
74.8
83.1
82.6

60.0
66.7
76.8
83.1
87.0

1950
1951
1952
1953
1954

89.5
96.2
98.1
99.0
100.0

89.9
96.0
98 0
99.0
100.0

94.6
101.1
102.2
99.4
100.0

91.4
99.0
100.1
99.7
100.0

85.9
89.8
93.6
97.7
100.0

88.3
95.3
98.4
100.1
100.0

90.9
97.5
100.3
101.3
100.0

85.1
93.1
96.5
98.9
100.0

89.0
96.8
97.5
99.0
100.0

101.2
104.2
108.2
110.7

100.4
102.2
105.2
107.7

100.1
101.3
104.7
105.6

99.5
100.9
104.0
106.4

101.7
104.2
107.1
110. 2

103.1
109.0
112.9
114.8

103.0
108.1
110.1
111.0

103.2
109.8
115.5
118.8

102.6
109.0
115.8
118.6

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

102.8
103.6
104.8
105. 7

101.0
101.7
102.7
103.3

99.7
100.6
101.9
103.0

99.7
100.4
101.5
102.0

103.2
103. 8
104.6
105.2

106.1
109.4
109.8
110.6

106.0
108.2
109.0
109.2

106.3
110.5
110.5
112.0

106.0
108.1
109.6
112.2

1957: First quarter
Second quarter
Third quarter
Fourth quarter

107.0
107.8
108.9
109.4

104.2
104.9
105.7
106.2

103.8
104.7
105.0
105.3

103.0
103.6
104.5
104.8

106.1
106.6
107.4
108.4

110.6
113.2
113.9
114.2

109.1
110.0
110.9
110.7

111.9
115.9
116.5
117.5

114.2
115.3
116.3
117.4

1958: First quarter
Second quarter
Third quarter
Fourth quarter

110.3
110.8
110.8
111.1

107.3
107.8
107.8
108.1

104.8
105.2
105.6
106.8

106.3
106.8
106.2
106.3

109.5
110.1
110.5
111.0

114.7
115.1
114.5
115.0

111.1
110.4
110.8
111.5

118.2
119.5
118.4
118.9

118.0
118.8
118.9
118.9

1929 . .
1930
1931
1932
1933
1934-.
1935.
1936
1937
1938
1939

.
- -

-.

1955
1956
1957
19582

.

2

.-

See footnotes at end of table, p. 145.




144

TABLE D-5.—Implicit price deflators for gross national product, 1929-58—Continued
[Index numbers, 1954=100]
Exports and imports of
goods and services 1

Government purchases of goods
and services

Period
Exports

Imports

Total

Federal

State and
local

1929

63.1

57.3

45.8

44.5

46.1

1930
1931
1932
1933.
1934

55.0
43.2
36.2
35.2
43.0

48.9
39.7
32.3
29.3
33.8

44.9
42.7
39.4
40.3
42.9

41.8
41.7
38.2
38.3
43.2

45.5
43.0
39.7
41.1
42.8

44.7
46.0
48.9
46.5
46.9

36.0
36.9
41.1
38.0
38.6

43.4
44.0
45.1
44.5
44.2

43.7
46.9
47.3
46.1
46.8

43.3
42.2
43.8
43.4
42.7

1940
1941.
1942
1943
1944..

51.2
56.1
64.9
68.1
73.3

40.9
43.0
48.9
51.3
53.3

45.2
51.9
59.6
64.3
63.4

47.0
55.1
61.4
65.6
64.3

43.9
46.2
49.8
52.7
54.6

1945.
1946
1947
1948
1949

75.3
80.8
93.4
98.6
92.7

57.4
65.5
79.7
86.3
82.0

63.2
69.4
76.4
82.0
85.1

63.9
73.0
80.8
84.4
88.0

57.4
63.0
71.5
79.3
81.7

90.3
103.3
103.0
101.0
100.0

87.8
102.8
102.8
98.2
100.0

86.5
95.5
97.8
98.3
100.0

89.6
98.7
99.2
98.6
100.0

83.7
90.2
94.8
97.5
100.0

100.7
103.4
106.7
105.0

99.9
101. 9
102.8
99.0

103.3
108. 1
114.2
116.9

104.1
108. 8
115.6
117.9

102.2
107.2
112.4
115.6

106.4
106.6
108.7
110.4

107.7
107.0
109.1
111.2

104.7
106.2
108.2
109.4

112.2
113.4
115.4
115.8

113.1
114.4
117.4
117.4

110.9
111.9
112.8
113.8

116.2
116.7
117.3
117. 3

117.5
117.4
118.5
118.5

114.8
115.7
115.9
115.9

1935
1936
1937
1938
1939

.

_

..

1950
1951
1952
1953
1954
1955
1956
1957
1958 2

-

1956: First quarter
Second quarter
Third quarter
Fourth quarter

..

... ._

._

_

(>)
1

1957' First quarter
Second quarter
Third quarter
Fourth quarter
1958* First quarter
Second quarter
Third quarter
Fourth quarter

. . -

0)
0)
0)
(0

...
_.
2

-..

C)
0)
(0
0)
0)
C1)
0)

0)
C1)
0)
0)
(0
0)
C1)
0)
0)
C11)
C)
0)

1
Separate deflators are not available for total gross private domestic investment, change in business
inventories, and net exports of goods and services, and for exports and imports quarterly.
For explanation of conversion of estimates in current prices to those in 1954 prices, see U. S. Income and
Output, A Supplement to the Survey of Current Business, 1959. (The basic income and product series have
been revised beginning 1946.)
2
Preliminary estimates by Council of Economic Advisers.
Source: Department of Commerce (except as noted).




TABLE D-6.—Gross national product: Receipts and expenditures by major economic groups,

1929-58
[Billions of dollars]
Business

Persons
PerDisPersonal
sonal
posconable sump- saving
peror dissonal tion ex- saving
income pendi(-)
tures

Period

International

Gross Excess
Gross private of re- Foreign
Net
Excess of
net
receipts trans- exports transfers
dotained mestic or in- fers by of goods or net
earnvestand
exports
ings i invest- ment govern- services 2
(-)
ment 2
ment
(-)

1929

83.1

79.0

4.2

11.5

16.2

-4.7

(2)

0.8

1930
1931
1932
1933
1934

74.4
63.8
48.7
45.7
52.0

71.0
61.3
49.3
46.4
51.9

3.4
2.5
-.6
-.6
.1

8.8
5.2
2.7
2.6
4.9

10.3
5.5
.9
1.4
2.9

-1.5
-.3
1.8
1.2
2.0

(2)
(2)
(2)
2
(2)
()

.7
.2
-.2
.2
.4

-0.8
7
-'.2
-.2
-.2
-.4

1935
1936
1937
1938
1939

58.3
66.2
71.0
65.7
70.4

56.3
62.6
67.3
64.6
67.6

2.0
3.6
3.7
1.1
2.9

6.3
6.5
7.8
7.8
8.3

6.3
8.4
11.7
6.7
9.3

.1
-1.9
-4.0
1.2
-1.0

(2)
(2)
(2)
(2)
(2)

-.1
-.1
.1
1.1
.9

.1
.1
-.1
-1.1
-.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

10.4
11.5
14.1
16.3
17.2

13.2
18.1
9.9
5.6
7.1

-2.8
-6.6
4.3
10.7
10.1

(2)
(2)
(2)
(2)

1.5
1.1
-.2
-2.2
-2.1

-1.5
-1.1
.2
2.2
2.1

1945
1946
1947
1948
1949

150.4
160.6
170.1
189.3
189.7

121.7
147.1
165.4
178.3
181.2

28.7
13.5
4.7
11.0
8.5

15.6
13.1
18.9
26.6
27.6

10.4
28.1
31.5
43.1
33.0

5.2
-15.1
-12.6
-16.5
-5.4

(2)

0.3
.1
1.6
3.2

-1.4
4.9
9.0
3.5
3.8

1.4
-4.6
-8.9
-1.9
-.5

1950
1951
1952
1953
1954

207.7
227.5
238.7
252.5
256.9

195. 0
209.8
219.8
232.6
238.0

12.6
17.7
18.9
19.8
18.9

27.7
31.5
33.2
34.3
35.5

50.0
56.3
49.9
50.3
48.9

-22.3
-24.8
-16.6
-16.0
-13.4

2.8
2.1
1.5
1.6
1.4

.6
2.4
1.3
-.4
1.0

2.2
-.2
.2
2.0
.4

274.4
290.5
305.1
310.5

256.9
269.4
284.4
290.6

17.5
21.1
20.7
19.9

42.1
43.2
45.6
45.0

63.8
68.2
65.3
53.5

-21.8
-25.0
-19.7
-8.5

1.5
1.4
1.5
1.2

1.1
2.8
4.9
1.3

.4
-1.4
-3.5
-.1

1940
1941
1942
1943
1944

1955
1956
1957
1958 *

.
.

- -

.
.

(2)

Seasonally adjusted annual rates
1956* First quarter.
Second quarter
Third quarter
Fourth quarter

283.1
288.8
292.1
297.2

265.2
267.2
269.7
275.4

17.9
21.6
22.4
21.7

42.6
41.8
43.7
44.9

68.0
67.7
68.1
68.8

-25.4
-25.9
-24.4
-23.9

1.3
1.5
1.2
1.6

0.8
2.8
3.2
4.4

0.5
-1.3
-2.0
-2.8

1957' First quarter
Second quarter
Third quarter
Fourth quarter

300.0
305.7
308.7
306.8

279.8
282.5
288.3
287.2

20.3
23.2
20.4
19.6

44.8
45.2
46.4
45.4

65.9
67.0
66.7
61.5

-21.1
-21.8
-20.3
-16.1

1.4
1.8
1.2
1.4

5.6
6.0
4.8
3.3

-4.2
-4.2
-3.6
-1.9

1958* First quarter.
Second quarter
Third quarter 4
Fourth quarter _ _ _

305.0
307.5
314.0
315.4

286.2
288.3
291.5
296. 5 .

18.8
19.2
22.5
19.0

42.4
43.9
44.5
49.2

49.6
M9.2
553.7
561.5

-7.2
-5.3
-9.2
-12.3

1.2
1.2
1.2
1.2

1.7
1.7
1.7
.2

-.5
-.5
-.5
1.0

See footnotes at end of table.




146

TABLE D-6.—Gross national product: Receipts and expenditures by major economic groups,

1929-58—Continued
[Billions of dollars]
(jovernmen t

Period

Less:
Tax and Transfers,
nontax
interest,
receipts or and subaccruals
sidies 3

Net
receipts

Surplus or Statistical
GROSS
Purchases deficit (-) discrep- NATIONAL
of goods on income
ancy
PRODUCT
and
and
services
product
account

1929-

11.3

1.7

9.5

8.5

1.0

0.3

104.4

19301931 1932.
1933_
1934_

10.8
9.5
8.9
9.3
10.5

1.8
3.1
2.5
2.6
3.1

8.9
6.4
6.4
6.7
7.4

9.2
9.2
8.1
8.0
9.8

-.3
-2.8
-1.7
-1.4
-2.4

-1.0
.8
.8
.9
.7

91.1

76.3
58. 5
56.0
65.0

19351936193719381939.

11.4
12.9
15.4
15.0
15.4

3.4
4.1
3.1
3.8
4.2

8.0
8.9
12.3
11.2
11.2

10.0
11.8
11.7
12.8
13.3

-2.0
-3.0
.6
-1.6
-2.1

-.2
1.1
-.2
.5
1.2

72.5
82.7
90.8
85.2
91.1

19401941194219431944-

17.7
25.0
32.6
49.2
51.2

4.4
4.0
4.3
4.8
6.5

13.3
21.0
28.3
44.4
44.6

14.1
24.8
59.7
88.6
96.5

-.7
-3.8
-31.4
-44.2
-51.9

.8
.4
-.8
-1.7
2.8

100.6
125.8
159.1
192.5
211.4

1945..
1946194719481949-

53.2
51.1
57.1
59.2
56.4

10.1
16.5
15.4
16.5
19.4

43.1
34.6
41.6
42.8
37.0

82.9
30.5
28.4
34.5
40.2

-39.7
4.1
13.3
8.2
-3.1

4.5
2.1
3.5
-.8
.5

213.6
210.7
234.3
259.4
258.1

1950..
1951195219531954-

69.3
85.5
90.6
94.9
90.0

22.1
18.9
18.4
19.2
21.5

47.2
66.6
72.2
75.7
68.5

39.0
60.5
76.0
82.8
75.3

8.2
6.1
-3.9
-7.1
-6.7

-.7
1.2
1.4
1.3
.9

284.6
329.0
347.0
365.4
363.1

1955--.
1956--.
1957--1958 <__

101.4
110.4
116.2
114.5

23.0
25.3
28.8
33. 3

78.4
85.1
87.4
81.2

75.6
78.8
85.7
91.2

2.9
6.3
1.7
-10.0

1.0
-.9
.7
-1.2

397.5
419.2
440.3
436.7

Seasonal!}7 adjusted a nnual rates
1956: First quarter
Second quarter _
Third quarter _ Fourth quarter,.

108.4
109.3
110.4
113.7

24.3
25.3
25.4
26.3

84.1
84.1
85.0
87.4

76.8
77.2
79.5
81.8

7.2
6.9
5.4
5.5

-0.2
-1.3
-1.5
-.5

410.8
414.9
420.5
430.5

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

116.4
116.3
117.3
114.7

27.3
29.3
28.7
30.2

89.1
87.0
88.6
84.5

85.0
85.7
85.8
86.9

4. 1
1.3
2.8
-2.3

.9
1.5
.7
.7

436. 3
441.2
445.6
438.9

1958: First quarter
Second quarter _ _
Third quarter. _Fourth quarter 4 -

110.6
111.1
116.0
120.2

31.6
33.5
34.1
33.8

79.0
77.6
81.9
86.4

88.3
89.7
92.1
94.8

-9.4
-12.2
-10.2
-8.4

-1.7
-1.1
-2.7
.9

425.8
429.0
439.0
453.0

1
Undistributed corporate profits, corporate inventory valuation adjustment, capital consumption
allowances, and excess of wage accruals over disbursements.
2
For 1929-45, foreign net transfers by government were negligible; therefore, for that period, net exports
of 3goods and services and net foreign investment have been equated.
Government transfer payments to persons, foreign net transfers by government, net interest paid by
government, and subsidies less current surplus of government enterprises.
* Preliminary; fourth quarter by Council of Economic Advisers,
s See footnote 8, Table D-l.
NOTE.—Series revised beginning 1946. For details, see 17. S. Income and Output, a Supplement to the
Survey of Current Business, 1959.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




147

TABLE D-7.—Personal consumption expenditures. 1929—58
[Billions of dollars]
Durable goods

Period

Total
personal
consumption Toextal
penditures

%
S

a
^
a
03
1

s
<<

li
•si
c3 3

*"i

be be

To- |l
tal ,2 o>

s?

%*

32

¥

Nondurable goods

<D_0

1
0

|
1

£

Services
|

x:
r

C

3
bC

"c3

'o
o>

.s

|

"o
0

o

1

Total

T3

be

£
a

0

0

O
T3
3
J3
O

§
1

I

1
& 0

1929

79.0

9.2 3.2 4.8 1.2 37.7 19.5 9.4 1.8 7.0 32.1 11.4 4.0 2.6 14.0

1930
1931
1932
1933
1934

71.0
61.3
49.3
46.4
51.9

7.2
5.5
3.6
3.5
4.2

2.2
1.6
.9
1.1
1.4

3.9 1.1 34.0 18.0 8.0 1.7
3.1 .9 28.9 14.7 6.9 1.5
2.1 .6 22.8 11.4 5.1 1.5
1.9 .5 22.3 10.9 4.6 1.5
2.2 .6 26.7 12.2 5.7 1.6

1935
1936
1937
1938
1939

56.3
62.6
67.3
64.6
67.6

5. 1
6.3
6.9
5.7
6.7

1 Q
2.3
2.4
1.6
2.2

?6
7 29.3 13 6
3.2 .8 32.8 15.2
3.6 1.0 35.2 16.4
3.1 .9 34.0 15.6
3.5 1.0 35.1 15.7

60
6.6
6.8
6.8
7.1

7.8 2.7 3.9 1.1 37.2 16.7
9.7 3.4 4.9 1.4 43.2 19.4
7.0 .7 4.7 1.6 51.3 23.7
6.6 .8 3.9 1.9 59.3 27.8
6.8 .8 3.8 2.2 65.4 30.6

7.4
8.8
11.0
13.4
14.6

1940
1941
1942
1943
1944

71.9
81.9
89.7
100.5
109.8

.

6.3
5.7
4.8
5.3
7.2

29.8
26.9
22.9
20.7
21.0

11.0
10.3
9.0
7.9
7.6

3.9 2.2 12.7
3.5 .9 11.2
3.0 .6 9.3
2.8 .5 8.5
3.0 .6 8.8

1 7 7 9
1.9 9.1
2.1 9.8
2.1 9.5
2.2 10.1

21.9
23.5
25.1
25.0
25.8

76
7.9
8.4
8.8
9.0

7 9 4
3?
3.4 .9 10.3
3.7 2.0 11.1
3.6 1.9 10.7
3.8 2.0 11.0

10.8
12.3
14.5
16.7
18.7

26.9
29.0
31.5
34.7
37.7

9.3
10.0
10.8
11.3
11.9

4.0
4.3
4.8
5.2
5.9

2.1 11.4
2.4 12.3
2.7 13.1
3.4 14.7
3.7 16.3

1.8 20.8
3.0 22.9
3.6 25.2
4.4 26.0
5.0 25.9

40.4
46.4
51.4
56.9
60.0

12.4
13.8
15.6
17.6
19.3

6.4
6.7
7.4
7.9
8.4

4.0 17.5
5.1 20.8
5.5 23.0
6.0 25.4
6.1 26.2

5.4 27.4
6 0 ?9 5
6.7 30.7
7.5 31.8
8.0 31.7

64.9 21.2 9.3
70.2 23.2 10.1
75.6 25.4 10.8
81.8 27.5 11.7
86.3 29.1 12.1

6.3 28.1
6.9 29.9
7.4 32.0
8.0 34.6
7.9 37.1

124.8 59.2 23.4 8.8 33.4
131.4 62.2 24.5 9.6 35.1
138.0 66.4 24.6 10.2 36.7
142.0 69.1 24.4 10.4 38.0

92.5 30.7 13.5
99.6 32.8 14.8
106.5 35.4 15.8
111.8 37.1 16.8

8.3 39.9
8.6 43.5
9.0 46.4
9.2 48.7

73.2 34.1 16.5
84.8 40.7 18.2
93.4 45.8 18.8
98.7 48.2 20.1
9G.6 46.4 19.3

121.7
147.1
165.4
178.3
181.2

8.1
15.9
20.6
22.7
24.6

1.0
3.9
6.3
7.4
9.8

4.6
8.7
11.0
11.9
11.5

2.5
3.3
3.4
3.4
3.3

1950
1951
1952
1953
1954

195.0
209 8
219.8
232.6
238.0

30.4
29.5
29.1
32.9
32.4

13.0
11 6
11.0
14.0
13.4

14.0
14 ?
14.1
14.7
14.8

3.4 99.8 47.4
3 7 110. 1 53 4
3.9 115. 1 55.8
4.1 118.0 56.6
4.3 119.3 57.7

1955
1956
1957 1958 4

256.9
269.4
284.4
290.6

39.6
38.4
39.9
36.8

18.3 16.6
15.6 17.4
17.1 17.3
14.0 17.1

1945
1946
1947
1948
1949

...

4.8
5.3
5.5
5.6

19.6
?1 1
21.9
21.9
21.9

2.3
2.6
2.1
1.3
1.4

Seasonally adjusted annual rates
1956' First quarter
Second quarter . .
Third quarter
Fourth quarter

265.2
267.2
269.7
275 4

38.7
37.8
37.5
39 5

16.0 17.4
15.1 17.5
15.0 17.1
16 5 17 7

5.3 129.6 61.3 24.1
5.3 130.9 61.9 24.3
5.3 131.6 62.3 24.6
5 4 133.4 63 5 ?4 8

9.2 35.0 96.9 31.8 14.4
9.5 35.2 98.6 32.3 14.7
9.6 35.1 100.6 33.1 14.9
9 P 35 ? 102.5 33 8 15 1

8.5 42.1
8.6 43.0
8.5 44.1
8.7 44.9

1957: First quarter
Second quarter
Third quarter
Fourth quarter

279.8
282 5
288.3
287.2

40.2
39 5
40.4
39.6

17.3 17.5
16 7 17 3
17.3 17.5
17.1 17.0

5.4 135.5 64.6 24.8 10.2 35.9 104.1 34.4 15.3
5 4 137.1 66 1 ?4 3 10 ? 36 5 105.9 35 1 15 6
5.6 140.5 67.8 25.1 10.3 37.3 107.4 35.7 15.8
5.5 138.8 67.2 24.4 10.2 37.1 108.7 36.3 16.2

8.9 45.5
9 0 46.2
9.2 46.7
9.0 47.2

1958: First quarter
Second quarter -. ..
Third quarter 4
Fourth quarter

286.2
288.3
291.5
296.5

36.3
35.6
36.1
39.0

13.6
13.5
13.2
15.8

5.6
5.5
5.6
5.6

17.1
16.6
17.3
17.6

139.8 68.3 23.9
141.4 69.3 24.0
142.9 69.2 24.8
144.0 69.8 24.9

1
Quarterly data are estimates by Council of Economic Advisers.
2
Includes standard clothing issued to military personnel.
3

10.3 37.3 110.1 36.6 16.4
10.3 37.8 111.3 36.9 16.7
10.5 38.4 112.5 37.2 17.0
10.7 38.6 113.5 37.5 17.2

9.1 48.0
9.1 48.6
9.2 49.1
9.3 49.5

Includes imputed rental value of owner-occupied dwellings.
* Preliminary; fourth quarter by Council of Economic Advisers.
NOTE.—Series revised beginning 1946. For details, see 17. <S. Income and Output, A Supplement to the
Survey of Current Business, 1959.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




148

TABLE D-8.—Gross private domestic investment, 1929-58
[Billions of dollars]
Total Nonfarm producers'
Farm equipment
gross plant and equipment and construction
private
domestic
ConConinvest- Total i Equip- struc- Total 4 Equip- strucment 2 tions
ment tion
ment

Period

Residential
construction
(nonfarm)

Net change in
Other business inventories
private
construc- Total Non-6 Farm
farm
tion *

1929

16.2

9.5

5.2

4.2

0.9

0.6

0.3

3.6

0.5

1.7

1.8

-0.2

1930
1931
1932
1933
1934

10.3
5.5
.9
1.4
2.9

7.4
4.5
2.5
2.3
3.0

4 0
2.6
1.4
1.5
2. 1

34
1.9
1.0
.8
.9

7
.4
.2
.2
.3

5
.3
.1
.1
.3

2
.1
7
()
0

21
1.6
.6
.5
.6

5

— 4
-1.3
-2.6
.1 -1.6
.1 — 1 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

3.8
5.1
6.6
4.7
5.3

2.7
3.6
4.5
3.1
3.7

1.1
1.4
2.1
1.6
1.6

.5
.7
.8
.7
.7

.4
.5
.6
.5
.5

.1
.2
.2
.2
.2

1.0
1.6
1.9
2.0
2.7

.1
.1
.2
.2
.2

.9
1.0
2.2
-.9
.4

.4
2.1
1.7
-1.0
.3

.5
-1.1
.5
.1
.1

1940 . .
1941___ .
1942
1943
1944

13.2
18.1
9.9
5.6
7.1

7.0
8.7
5.3
4.6
6.3

4.9
6.1
3.7
3.5
4.7

2.0
2.6
1.6
1.1
1.5

.8
1.1
.9
.8
1.0

.6
.8
.7
.6
.7

.2
.3
.3
.3
.3

3.0
3.5
1.7
.9
.8

.2
.2
.1
(7)

2.2
4.5
1.8
-.8
-1.0

1.9
4.0
.7
-.6
-.6

.3
.5
1.2
-.2
-.4

10.4
28.1
31.5
43.1
33.0

9.3
14.8
20.7
23.3
21.0

6.9
9.8
14.9
16.4
14.4

2.3
5.0
5.8
6.9
6.6

1.0
1.8
3.2
4.1
4.4

.7
.9
1.8
2.6
2.9

.3
.9
1.4
1.5
1.5

1.1
4.8
7.5
10.1
9.6

.1 -1.1
6.4
.4
.5 -.5
.9
4.7
1.1 -3.1

-.6
6.4
1.3
3.0
-2.2

-.5
(7)
-1.8
1.7
-.9

__

50.0
56.3
49.9
50.3
48.9

23.4
27.4
28.1
30.2
29.5

16.2
18.4
18.6
19.5
18.5

7.2
9.1
9.5
10.7
11.0

4.4
4.8
4.6
4.5
4.0

2.7
2.9
2.7
2.8
2.3

1.6
1.8
1.9
1.7
1.6

14.1
12.5
12.8
13.8
15.4

6.8
1.3
1.4 10.2
1.3 3.1
.4
1.4
1.7 -1.6

6.0
9.1
2.1
1.1
-2.1

.8
1.2
.9
-.6
.5

._

63.8
68.2
65.3
53. 5

33.4
39.4
41.1
35.0

20.6
24.8
25.5
20.4

12.8
14.6
15.6
14.6

4.1
3.8
4.0
3.9

2.5
2.2
2.4
2.3

1.6
1.6
1.6
1.6

18.7
17.7
17.0
17.8

5.8
1.8
5.4
1.9
2.2
1.0
2.5 -5.6

5.5
5.9
.2
-5.8

.3
-.5
.8
2

..

1945-. .
1946
1947
1948 . _ _ .
1949
1950... ._
1951
1952 .
1953
1954
1955
1956
1957 .
1958 s

-

_

_.

Seasonally adjusted annual rates
1956:
First quarter _ .
Second quarter..
Third quarter. ...
Fourth quarter.

68.0
67.7
68.1
68 8

37.9
39.2
39.8
40.7

23.9
24.5
25.0
25.9

14.0
14.7
14.8
14.9

3.6
3.6
3.9
3.9

2.0
2.1
2.3
2 4

1.6
1.6
1.6
1.6

17.8
17.7
17.6
17.7

1.8
1.9
1.9
2.0

6.9
5.4
4.9
4.4

7.4
6.2
5.3
4.6

-.5

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

65.9
67.0
66.7
61.5

41.5
41.3
41.4
40.1

26.3
25.5
25.6
24.4

15.2
15.8
15.8
15.7

4.0
4.1
3.9
3.8

2.5
2.5
2.4
2.2

1.6
1.6
1.6
1.6

17.2
16.5
16.9
17.6

2.1
1.1
2.2
2.9
2.2
2.2
2.3 -2.3

.6
2.0
1.3
-3.1

.5
.9
.9
.8

49.6 9 36.0
34. 7
49. 2
934.4
53. 7 9
34. 8
61. 5

20.8
20.1
20.1
20.4

15.2
14.6
14.3
14.4

3.6
3.9
3.8
4.2

2.0
2.3
2.2
2.6

1.6
1.6
1.6
1.6

17.1
16.2
17.9
20.1

2.4 -9.5
2.4 -8.0
2.5 -5.0
2.5 (7)

-9.3
-7.8
-5.4
-.7

-.2
-.2
.4
.7

1958:
First quarter.
Second quarter. .
Third quarter ...
Fourth quarter s.

9
9
9

O

-!4
-.2

1
Items for nonfarm producers' plant and equipment are not comparable with those shown in Table D-30
principally because the latter exclude equipment and construction outlays charged to current expense and
also investment by nonprofit organizations and professional persons.
2
Total producers' durable equipment less farm machinery and equipment, and farmers' purchases of
tractors and business motor vehicles.
3
Industrial buildings, public utilities, gas- and oil-well drilling, warehouses, office and loft buildings,
stores, restaurants, garages, miscellaneous nonresidential construction, and all other private construction.
4
Farm construction (residential and nonresidential) plus farm machinery and equipment, and fanners'
purchases of tractors and business motor vehicles. (See footnote 2.)
5
Includes religious, educational, social and recreational, and hospital and institutional.
6
After inventory valuation adjustment.
7
Less than $50 million.
8
Preliminary; fourth quarter by Council of Economic Advisers.
9
See footnote 8, Table D-l.
NOTE.—Series revised beginning 1946. For details, see U. S. Income and Output, A Supplement to the
Survey of Current Business, 1959.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).

489916 0—59




11

TABLE D-9.—National income by type of income, 1929—58
[Billions of dollars]

Total
national
income 1

Period

Compensation
of employees 2

Business and professional income
and inventory
valuation
adjustment

Income
of
In- In- farm
come ven- proof
tory prieuninTotal corpo- valu- tors 3
ation

rated adenter- justprises ment

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 6
1958

... .

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

87.8
75.7
59.7
42.5
40.2
49.0
57.1
64.9
73.6
. 67.6
72.8
81.6
104.7
137.7
170.3
182. 6
181.2
180.9
198.2
223.5
217.7
241.9
279.3
292.2
305. 6
301.8
_ . _ .. 330.2
349.4
364.0
359.6

51.1
46.8
39.7
31.1
29.5
34. 3
37.3
42.9
47.9
45.0
48.1
52.1
64.8
85.3
109.6
121.3
123.2
117.7
128.8
141.0
140.8
154.2
180.3
195.0
208.8
207.6
223.9
241.8
254. 6
253.8

8.8
7.4
5.6
3.4
3.2
4.6
5.4
6.5
7.1
6 8
7.3
8.4
10.9
13.9
16.8
18.0
19.0
21.3
19.9
22.4
22.7
23.5
26.0
26.9
27.4
27.8
30.4
30.8
31.4
31.0

0.1
8.6
.8
6.7
.6
5.0
3.1
.3
3.7 -.5
4.6 -.1
5.4
(5)
6.6 -.1
7.1
f»)
.2
6.6
7.5 -.2
8.5
(•)
11.5 -.6
14.3 -.4
17.0 -.2
18.1 -.1
19.1 -.1
23.0 -1.7
21.4 -1.5
22.8 -.4
22.2
.5
24.6 -1.1
26.3 -.3
26.7
.2
27.6 -.2
5
27.8
()
2
30.6
31.3 -.5
31.7 -.3
31.0
(5)

6.0
4.1
3.2
1.9
2.4
2.4
5.0
4.0
5.6
4.3
4.3
4.6
6.5
10.0
11.4
11.5
11.8
15.3
15.5
17.8
12.9
14.0
16.3
15.3
13.3
12.7
11.8
11.6
11.6
13.2

Corporate profits
and inventory
valuation
adjustment
Rental income
of
persons

Net

inInven- terest
Cortory
porate
Total profits valuation
before adtaxes 4 justment

5.4 10.1
6.6
4.8
3.8
1.6
2.7 -2.0
2.0 -2.0
1.7
1.1
2.9
1.7
5.0
1.8
6.2
2.1
2.6
4.3
5.7
2.7
9.1
2.9
3.5 14.5
4.5 19.7
5.1 23.8
5.4 23.0
5.6 18.4
6.2 17.3
6.5 23.6
7.3 30.8
8.3 28.2
9.0 35.7
9.4 41.0
10.2 37.7
10.5 37.3
10.9 33.7
10.7 43.1
10.9 42.9
11.8 41.9
12.2 736.2

9.6
3.3
0

-3.0
.2
1.7
3.1
5.7
6.2
3.3
6.4
9.3
17.0
20.9
24.6
23.3
19.0
22.6
29.5
33.0
26.4
40.6
42.2
36.7
38.3
34.1
44.9
45.5
43.4
736.4

0.5
3.3
2.4
1.0
-2.1
-.6
-.2
-.7
(5)

1.0
-.7
-.2
-2.5
-1.2
-.8
-.3
-.6
-5.3
-5.9
-2.2
1.9
-5.0
-1.2
1.0
-1.0
-.3
-1.7
-2.6
-1.5
7 -.2

6.4
6.0
5.8
5.4
5.0
4.9
4.8
4.7
4.7
4.6
4.6
4.5
4.5
4.3
3.7
3.3
3.2
3.1
3.8
4.2
4.8
5.5
6.3
7.1
8.2
9.1
10.4
11.3
12.6
13.2

Seasonally adjusted annual rates
1956- First quarter
Second quarter. . ..
Third quarter
Fourth quarter
1957: First quarter .
Second quarter
Third quarter
Fourth quarter
1958: First quarter
Second quarter
Third quarter 6
Fourth quarter .

342.2
346.2
350.8
357.9
361.5
364.1
368.7
361.5
350.6
352.4
363.1
372.1

235.3
240.6
243.0
248.1
251.6
254.9
257.3
254 8
250.9
250.7
255.3
258.4

30.7
30.9
30.8
30.9
31.1
31.4
31.7
31.3
30.6
30.7
31.1
31.8

31.1 -0.4
31.6 -.7
31.0 -.2
31.5 -.6
31.4 -.3
31.7 -.3
31.8 -.1
31.8 -.5
30.7
30.7
«2
30.9
31.9 -.2

1

11.3
11.3
11.9
12.0
11.5
11.6
11.8
11.5
12.6
13.4
13.3
13.3

10.7 43.3
10.7 41.6
10.9 42.8
11.2 44.0
11.4 43.7
11.7 42.0
12.0 43.1
12.2 38.8
12.1 31.3
12.1 32.5
12.2 38.0
12.3 743.0

46.2
44.8
44.3
46.7
46.1
43.5
44.2
39.9
31.7
32.0
37.9
744.0

-2.8
-3.2
-1.5
-2.7
-2.4
-1.5
-1.1
-1.1
-.3
.5
.2
7-1.0

10.9
11.1
11.4
11.7
12.1
12.5
12.8
12.9
13.0
13.1
13.2
13.3

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 D-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. Data for 1929-45 differ from those shown in
Table D-64 because of revisions by the Department of Agriculture not yet incorporated into the national
income accounts.
4
See Table D-56 for corporate tax liability (Federal and State income and excess profits taxes) and
corporate profits after taxes.
5
Less than $50 million.
6
Preliminary; fourth quarter by Council of Economic Advisers.
7
Provisional.
NOTE.—Series revised beginning 1946. For details, see U. S. Income and Output, A Supplement to the
Survey of Current Business, 1959.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




150

TABLE D-10.—Relation of gross national product and national income, 1929-58
[Billions of dollars]
Less: Capital consumption allowances

Period

Plus:
Less:
Subsidies
Equals
less
Gross
Net current Indirect business
nanaBusitax
tional
ness j
tional surplus
prodDepreof govtransernuct Total ciation I Other product
fer
State paycharges
ment
enter- Total Fed- and ments
eral local
prises

Equals:
NaStatisti- tional
cal income
discrepancy

1929

104.4

8.6

7.7

0.9

95.8

-0.1

7.0

1.2

5.8

1930
1931
1932
1933
1934

91.1
76.3
58.5
56.0
65. 0

8.5
8.2
7.6
7.2
7.1

7.7
7.6
7.0
6.7
6.6

.8
.6
.6
.5
.5

82.6
68 1
50.9
48 8
57.9

-.1
2
(2)
()
(2)
.3

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

1935
1936..
1937
1938
1939

72.5
82.7
90.8
85.2
91.1

7.2
7.5
7.7
7.8
7.8

6.7
6.7
6.9
6.9
7.1

.6
.8
.8
.8
.7

65.3
75.2
83.0
77.4
83.3

.4

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

1940
1941
1942
1943
1944

100.6
125. 8
159. 1
192. 5
211.4

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

.4
.1
.2
.2

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

1945
1946
1947.
1948
1949

213 6
210.7
234.3
259.4
258. 1

12 5
10.7
13.0
15.5
17.3

11.2
9.0
11.1
13.1
15.1

1.3
1.7
2.0
2.4
2.2

201.0
200.0
221.3
244.0
240.8

.8
-.2

15.5
17.3
18.6
20.4
21.6

7. 1
7.9
7.9
8.1
8.2

8.4
9.4
10.8
12.3
13.5

'.7
.8

4.5
2.1
3.5
-.8
f,

181.2
180. 9
198.2
223. 5
217.7

284.6
329.0
347.0
365. 4
363.1

19.1
22.0
24.0
26.5
28.8

16.5
18.8
20.9
23. 1
25.2

2.6
3.2
3.1
3.5
3.6

265.5
307.0
323.0
338. 9
334.3

.2
.2
-.2
-.4
-.2

23.7
25.6
28.1
30.2
30.2

9.0
9.5
10.5
11.2
10.1

14.7
16. 1
17.6
19.0
20.1

.8
1.0
1.2
1.4
1.3

~L2
1.4
1.3
.9

241. 9
279.3
292. 2
305. 6
301.8

397. 5
419.2
440. 3
436. 7

32.0
34.7
37.7
39.6

27.9
30.8
33.7
35.9

4.0
3.9
4.0
3.7

365. 5
384. 5
402. 6
397.1

32.9
1.0 35. 6
1.3| 37.6
1.5 38.6

11.0
11.6
12.2
11.9

21.8
24.0
25.4
26.7

1.0
1.5
1.5 — .9
.7
1.6
1.6 -1.2

330. 2
349.4
364. 0
359.6

1950
1951
1952
1953
1954

.-

1955
1956
1957
19583

(2)
.1

.2
.5

7

-:'
-.2

(2)

0.3

87.8

hi,
•'

75 7
59 7
42.5
40.2
49.0

2
LI
—.£
L2

57.1
64.9
73.6
67.6
72.8

.4
.8
.4
.5
.5 -.8
.5 -1.7
.5 2.8

81.6
104.7
137.7
170.3
182.6

0. f

'.(

.5
.6

Seasonally adjusted annual rates
1956:
First quarter
Second quarter ..
Third quarter
Fourth quarter ..

410.8 33.7
414.9 34.3
420. 5, 35.0
430.5 35.7

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

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

377.1
380.6
385.5
394.8

.9
1.0
1.1
1.2

34.5
35.3
35.8
37.0

11.1
11.4
11.6
12.4

23.4
23.9
24. 3

24. 6J

1.5 -.2
1.5 -1.3
1.5 -1.5
1.5 -.5

342.2
346.2
350.8
357.9

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

436.3
441.2
445.6
438.9

36.6
37.5
38.1
38.5

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

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

399.7
403.7
407.5
400.4

1.4
1.4
1.3J
1.2

37.1
37.8
37.9
37.7

12. 1
12.5
12.3
12.0

25.0
25.3
25.6
25.7

1.6
1.6
1.6
1.6

.9
1.5
.7
.7

361.5
364.1
368.7
361.5

1958:
First quarter
Second quarter..
Third quarter 3 '
Fourth quarter _

425.8
429.0
439.0
453.0

38.9
39.3
39.7
40.4

f4)
4
(4 )
(4 )
()

4
(4)
()
(4)
(>)

386. 9'
389.7
399.3
412.6

1.61
l.s!
1.5
1.5

38.0
38.3
38.6
39.5

12.0
11.8
11.7
11.9

25.9
26.5
26.9
27.6

1.6 -1.7
1.6 -1.1
1.6 -2.7
.9
1.6

350.6
352.4
363.1
372.1

1
2
3
4

Accidental damage to fixed capital and capital outlays charged to current account.
Less than $50 million.
Preliminary; fourth quarter by Council of Economic Advisers.
Not available.
NOTE.—Series revised beginning 1946. For details, see U. S. Income and Output, A Supplement to the
Survey of Current Business, 1959.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




TABLE D—11.—Relation of national income and personal income, 1929—58
[Billions of dollars]
Plus:

Less:
CorpoExcess
rate
of
profits ContriNational and in- butions wage
acincome
venfor
tory
social cruals
over
valu- insurdisation
ance
burseadjustments
ment

Period

Government
transfer
payments
to
persons

Net
interest
paid
by
government

Equals:

Dividends

Business
transfer
payments

Personal
income

_

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
1.1
1.2
1.2

5.5
4.1
2.6
2.1
2.6

.5
.6
.7
.7
.6

76.9
65.7
50.1
47.2
53.6

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
2.4
2.5

1.1
1.1
1.2
1.2
1.2

2.9
4.5
4.7
3.2
3.8

.6
.6
.6
.4
.5

60.2
68.5
73.9
68.6
72.9

1940
1941
1942
1943
1944

81.6
104.7
137.7
170.3
182.6

9.1
14.5
19.7
23.8
23.0

2.3
2.8
3.5
4.5
5.2

2.7
2.6
2.6
2.5
3.1

1.3
1.3
1.5
2.1
2.8

4.0
4.5
4.3
4.5
4.7

.4
.5
.5
.5
.5

78.7
96.3
123. 5
151.4
165.7

1945
1946
1947
1948
1949

181.2
180.9
198.2
223.5
217.7

18.4
17.3
23.6
30.8
28.2

6.1
6.0
5.7
5.2
5.7

5.6
10.9
11.1
10.5
11.6

3.7
4.5
4.4
4.5
4.7

4.7
5.8
6.5
7.2
7.5

.5
.6
.7
.7
.8

171.2
179.3
191.6
210.4
208.3

1950
1951
1952
1953
1954

241.9
279.3
292.2
305.6
301.8

35.7
41.0
37.7
37.3
33.7

6.9
8.2
8.6
8.7
9.7

14.3
11.6
12.0
12.9
15.0

4.8
5.0
5.0
5.2
5.4

9.2
9.0
9.0
9.2
9.8

.8
1.0
1.2
1.4
1.3

228.5
256.7
273.1
288.3
289.8

43.1
42.9
41.9
36. 2

11.0
12.3
14.2
14.4

16.0
17.1
19.9
24.4

5.4
5.7
6.2
6.2

11.2
12.0
12.4
12.3

1.5
1.5
1.6
1.6

310.2
330.5
347.9
353.4

1929

1955
1956
1957
1958 i

.

.

--

330.2
349.4
364.0
359.6

2

0.2
2

.1
-.1

Seasonally adjusted annual rates
1956: First quarter
Second quarter
Third quarter
Fourth quarter

342.2
346.2
350.8
357.9

43.3
41.6
42.8
44.0

11.9
12.1
12.5
12.7

16.6
17.0
17.3
17.6

5.5
5.7
5.8
5.9

11.7
12.0
12.2
11.8

1.5
1.5
1.5
.5

322.3
328.7
332.3
338.1

1957: First quarter
Second quarter
Third quarter
Fourth quarter

361.5
364.1
368.7
361.5

43.7
42.0
43.1
38.8

14.0
14.1
14.3
14.2

18.4
19.9
20.0
21.3

6.1
6.2
6.2
6.2

12.5
12.6
12.7
12.0

.6
.6
.6
1.6

342.3
348.4
351.8
349.7

1958: First quarter
Second quarter
Third quarter 1
Fourth quarter ...

350.6
352.4
363.1
372.1

31.3
32.5
38.0
2
43.0

14.2
14.2
14.7
14.6

22.5
24.6
25.2
24.9

6.3
6.2
6.2
6.2

12.5
12.4
12.5
11.8

1.6
1.6
1.6
1.6

347.3
349.8
357.5
359.1

1
2

.8
.8
-1.5

Preliminary; fourth quarter by Council of Economic Advisers.
Provisional.

NOTE.—Series revised beginning 1946. For details, see U. S. Income and Output, A Supplement to the
Survey of Current Business, 1959.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




152

TABLE D-12.—Sources of personal income, 1920—58
[Billions of dollars]
Lahor
Proprietors'
Less:
income 2
income
Per(wage and
sonal
NonPerRental
salary
Trans- contri- agriculTotal
income Divi- sonal fer pay- butions
personal disbursetural
Busiof
dends interest ments
income ments
for
persona]
income
and other Farms ness and persons
social income 4
profeslabor
insursional
income) l
ance

Period

1929

85.8

51.0

6.0

8.8

5.4

5.8

7.4

1.5

0.1

77.7

1930
1931
1932
1933
1934

76.9
65.7
50.1
47.2
53.6

46.7
39.6
30.9
29.4
34.1

4.1
3.2
1.9
2.4
2.4

7.4
5.6
3.4
3.2
4.6

4.8
3.8
2.7
2.0
1.7

5.5
4.1
2.6
2.1
2.6

6.9
6.9
6.6
6.2
6.1

1.5
2.7
2.2
2.1
2.2

.1
.2
.2
.2
.2

70.8
60.9
46.9
43.6
49.8

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

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

171.2
179.3
191.6
210.4
208.3

119.4
113.8
125. 2
137.9
137.4

11.8
15.3
15.5
17.8
12.9

19.0
21.3
19.9
22.4
22.7

5.6
6.2
6.5
7.3
8.3

4.7
5.8
6.5
7.2
7.5

6.9
7.6
8.2
8.7
9.4

6.2
11.4
11.8
11.3
12.4

2.3
2.0
2.1
2.2
2.2

156. 8
161.2
172.8
189.2
192.1

228. 5
256.7
273.1
288. 3
289.8

150. 2
175. 5
190.2
204. 1
202.5

14.0
16.3
15.3
13.3
12.7

23.5
26.0
26.9
27.4
27.8

9.0
9.4
10.2
10.5
10.9

9.2
9.0
9.0
9.2
9.8

10.3
11.2
12.1
13.4
14.6

15.1
12.6
13.2
14.3
16.2

2.9
3.4
3.8
3.9
4.6

211.3
237.0
254.3
271. 5
273.8

310. 2
330. 5
347.9
353. 4

218.0
235.2
247.1
246.2

11.8
11.6
11.6
13.2

30.4
30.8
31.4
31.0

10.7
10.9
11.8
12.2

11.2
12.0
12.4
12.3

15.8
17.0
18.8
19.4

17.5
18.6
21.5
25.9

5.2
5.7
6.6
6. 7

295. 0
315. 4
332.7
336. (>

-.. .

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

..
..

.. .

1950
1951..
1952
1953
1954

. .
.

1955
1956
1957_
19585

_..

Seasonally adjusted annual rates
1956:
First quarter. .
Second quarter.
Third quarter _ _
Fourth quarter.

322.3
328.7
332.3
338.1

229. 0
234.1
236.2
241.2

11.3
11.3
11.9
12.0

30.7
30.9
30.8
30.9

10.7
10.7
10.9
11.2

11.7
12.0
12.2
11.8

16.5 !
16.9
17.2
17.6 |

18.1
18.5
18.8
19.1

5.6
5.7
5.7
5.9

307. 6
313.9
316.9
322. 5

First quarter _ _ _
Second quarter.
Third quarter..
Fourth quarter.

342.3
348.4
351.8
349.7

244.2
247.3
249.6
247.2

11.5
11.6
11.8
11.5

31.1
31.4
31.7
31.3

11.4
11.7
12.0
12.2

12.5
12.6
12.7
12.0

18.2 :
18.7
19.0 i
19. 1 |

20.0
21.5
21.6
22. 9

6.6
6.6
6.7
6.6

327.2
333. 2
336.3
334. 6

First quarter. _.
Second quarter.
Third quarter...
Fourth quarter 5.

347.3
349.8
357. 5
359. 1

242.6
242.4
249.0
250. 6

12.6
13.4
13.3
13.3

30.6
30.7
31.1
31.8

12.1
12.1
12.2
12.3

12.5
12.4
12.5
11.8

19.3
19.3 i
19. 4
19.5 I

24.2
26.2
26. 8
26.5

6.7 i
6.7 i
6.9
6.8
i

331.0
332. 8
340. 7
342. 3

1957:

1958:

1
The total of wage and salary disbursements and other labor income differs from compensation of employees in Table D-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
to 3net additions to inventories during the period.
Data for 1929-45 differ from those in Table D-64 because of revisions by the Department of Agriculture
not yet incorporated into the national income accounts.
4
X on agricultural income is personal income exclusive of net income of unincorporated farm enterprises,
farm wages, agricultural net interest, and net dividends paid by agricultural corporations.
s
Preliminary; fourth quarter by Council of Economic Advisers.
XOTE.—Series revised beginning 1946. For details, see U. S. Income and Output, A Supplement lo the
Survey of Current Business, 1959.
Detail will not necessarily add to totals because of rounding.

Source: Department of Commerce (except as noted).




'53

TABLE D-13.—Disposition of personal income, 1929-58

Personal
income

Period

Less:
Personal
taxes i

Less:
Equals: Personal
DisposEquals:
conable
Personal
personal sumption saving
income expenditures

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

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

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
179.3
191.6
210.4
208.3

20.9
18.7
21.5
21.1
18.7

150.4
160.6
170.1
189.3
189.7

121.7
147.1
165. 4
178. 3
181.2

28.7
13.5
4.7
11.0
8.5

19.1
8.4
2.8
5.8
4.5

1950
1951 .1952
1953 ..
1954

228.5
256. 7
273.1
288.3
289.8

20.8
29.2
34.4
35.8
32.9

207.7
227.5
238.7
252.5
256.9

195. 0
209.8
219.8
232.6
238.0

12.6
17.7
18.9
19.8
18.9

6.1
7.8
7.9
7.9
7.3

310.2
330. 5
347.9
353. 4

35.7
40.1
42.7
43.0

274.4
290.5
305.1
310.5

256. 9
269.4
284.4
290.6

17.5
21.1
20.7
19.9

6.4
7.2
6.8
6.4

.__

1935
1936
1937
1938.
1939
1940
1941
1942
1943
1944

-

- -..

- .
...
--

..

1955
1956
1957 .1958 a .

Seasonally adjusted annual rates
1956: First quarter .
Second quarter
Third quarter
Fourth quarter

322.3
328. 7
332. 3
338.1

39.2
39.9
40.2
40.9

283.1
288.8
292. 1
297. 2

265.2
267. 2
269. 7
275.4

17.9
21.6
22. 4
21.7

6.3
7.5
7. 7
7.3

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

342.3
348.4
351.8
349.7

42.3
42.7
43.1
43.0

300.0
305. 7
308. 7
306. 8

279.8
282. 5
288.3
287. 2

20.3
23.2
20.4
19.6

6.8
7.6
6.6
6.4

347.3
349.8
357.5
359. 1

42.3
42.3
43.5
43.7

305. 0
307.5
314.0
315.4

286. 2
288.3
291. 5
296.5

18.8
19.2
22.5
19.0

6.2
6.2
7.2
6.0

1958: First quarter
Second quarter. _ ._
Third quarter 3
Fourth quarter .

-

. ..

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.—Series revised beginning 1946. For details, see U. S. Income and Output, A Supplement to the
Survey of Current Business, 1959.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




154

TABLE D-14.— Total and per capita disposable personal income and personal consumption

expenditures, in current and 1958 prices, 1929-58
Total disposable Per capita dispersonal income posable personal
(billions of
income (dollars)
dollars)

Period

Total personal
consumption
expenditures
(billions of
dollars)

Per capita personal consumption expenditures (dollars)

Population
(thousands)2

Current
1958 Current
1958 Current
1958 Current
1958
prices prices 1 prices prices 1 prices prices 1 prices prices *
1929

..

83.1

139.9

682

1,148

79.0

132.9

648

1,091

121, 875

1930
1931
1932
1933
1934

74.4
63.8
48.7
45.7
52.0

128.5
121.1
102.9
102.1
112.0

604
514
389
364
411

1,043
975
822
812
886

7-1.0
61.3
49.3
46.4
51.9

122.6
116.4
104.2
103.6
111.8

576
494
395
369
410

995
937
835
824
884

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

1935
1936
1937 .
1938
1939

58.3
66.2
71.0
65.7
70.4

122.5
137.7
142.6
134.3
146.5

458
517
551
505
538

962
1,075
1,106
1, 033
1,119

56.3
62.6
67.3
64.6
67.6

118.3
130.2
135.1
132.2
140.5

442
488
522
497
516

929
1,015
1,048
1,016
1,073

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

1940
1941
1942
1943
1944

76.1
93.0
117.5
133.5
146.8

156.9
182.3
208.0
222.6
241.0

576
697
871
977
1,060

1,188
1,367
1,542
1,628
1,741

71.9
81.9
89.7
100.5
109.8

148.2
160.5
158.8
167.6
180.4

544
614
665
735
794

1,122
1,204
1,177
1,225
1,304

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

1945
1946
1947
1948
1949

150.4
160.6
170.1
189.3
189.7

241.3
237.5
219.8
227.3
229.9

1, 075
1,136
1,180
1,291
1,271

1,726
1,680
1,525
1,550
1,541

121.7
147.1
165.4
178.3
181.2

195.3
217.6
213.7
214.1
219.6

870
,040
,148
,216
,214

1,396
1, 538
1,483
1,460
1,472

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

1950
1951
1962
1953
1954

207.7
227.5
238. 7
252.5
256. 9

249.3
252.8
259.5
272.4
276.2

1,369
1,474
1,520
1,582
1, 582

1,643
1, 638
1,652
1,707
1,701

195.0
209.8
219.8
232. 6
238.0

234. 1
233.1
238.9
251. 0
255.9

,286
,359
,400
,457
,466

1,544
1,510
1,522
1,572
1,576

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

274.4
290.5
305.1
310 5

295.7
308.3
313.3
310.5

1,661
1,727
1,782
1,784

1,790
1, 833
1,830
1,784

256.9
269.4
284.4
290.6

276.9
286.0
292.0
290.6

.555
,602
,661
,670

1,676
1,701
1, 705
1,670

165, 270
168, 176
171, 196
174, 064

_

1955
1956
1957 3
1958

Seasonally adjusted annual rates
1956: First quarter
Second quarter
Third quarter
Fourth quarter. __

283.1
288.8
292.1
297.2

304.7
308. 5
308.1
311.2

1,694
1,721
1, 733
1,754

1,823
1,839
1,828
1,837

265.2
267.2
269.7
275.4

285.5
285.5
284. 5
288.4

1,587
1,592
1,600
1,626

1,708
1,701
1,688
1,703

167, 158
167, 828
168,600
169, 424

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

300.0
305. 7
308.7
306.8

312.2
315.2
314.7
311.8

1,763
1,789
1,799
1,780

1,835
1,844
1,834
1,809

279.8
282.5
288.3
287.2

291.2
291.2
293.9
291.9

1,644
1,654
1,680
1,666

1,711
1, 705
1,713
1,693

170, 151
170, 839
171, 612
172,393

1958: First quarter
Second quarter. ._
Third quarter 3
Fourth quarter ..

305.0
307.5
314.0
315. 4

306.8
306.9
313.1
314. 5

1,762
1,770
1,800
1,800

1,773
1,766
1,795
1,795

286.2
288.3
291. 5
296.5

287.9
287.7
290.6
295.6

1,654
1,660
1,671
1,692

1,664
1,657
1.666
1,687

173, 054
173, 705
174, 460
175, 253

1
Dollar estimates in current prices divided by the consumer price index on a 1958 base (using 11-month
average). Personal consumption expenditures in this table therefore differ from the data in Table D-2.
2
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 1958 prices and for per capita income and
expenditures in current prices are computed from data in millions of dollars.
Series revised beginning 1946. For details, see U. S. Income and Output, A Supplement to the Survey of
Current Business, 1959.

Sources: Department of Commerce, Department of Labor, and Council of Economic Advisers.




'55

l

TABLE D-15.—Financial saving by individuals., 1939-58
[Billions of dollars]

Currency
Total and
bank
deposits2

Period

Securities
Savings
and
loan
U.S. Other Corassocia- Total sav- gov- porate
ings ern- and
tion
honds ment 3 other
shares

0.05

1.85
2.14
2.49
2.85
3.21

.05
.08
.12
.20
.60

.85 1.01 -.20
1.30
.69 -.11
1.86
.82
.27
2.55
.10 -2.96
.58
3.92 -.38 -1.03
.14 1.38
4.96 -.05

6.85 4.23 -1.16
.96 -2.40 (9)
2.01 -.28
.69
1.60
.40 1.12
1.46
.73
.20

3.46
3.42
3.64
3.75
3.71

.93
.30
.30
.40
.60

5.14
3.55
3.49
3.57
2.34

.22
3.60
4.62
4.72
4.12

.48 1.48
2.32 -2.34
2.81 -.76
.43
2.41
2.64
.32

.71
1.67
2.07
1.32
.57

3.92
4.06
4.88
5.04
5.38

.90
1.36
1.51
1.84
1.93

1.09
4.24
4.40
3.24
2.63

7.29
6.59
6.52
7.30
9.01

3.64
.22
.99 -.30
4.36
.60
3.65
.40
.86
.96

3.29
2.98
3. 93

2.73
2.27
3.99

5.49
5.64
5.13

2.08
2.41
2.68

3.09 11.93
3.49 10.38
3.09 8.25

.60
6.09
3.14 -.75
-.07
2.58

1.08
1.52
.67
1.57

2.89
.16 2.35
.88 -.08
.39
.83 -.08
.30
.56 -.10 -.06

.37
.56
.62
.72

1.28
1.34
1.56
1.46

.60
.60
.60
.60

.77
1.58
.94
.21

2.48 -.53 -.52
2.75 1.43 -.08
2.76
.68 -.44
.28
2.39 1.56

.15
.72
2.20
2.58

.99
1.62
.49
1.71

2.43
1.02
2.16
.41

1.87
.12
1.87
.08

1.15
1.37
.77
.70

1.22
1.15
1.52
1.25

.67
.67
.67
.67

.73
1.44
.76
.15

1.93 -.93 -.34
.05
2.19 1.50
.75 -.02
2.20
.24
1.92 1.25

40
1.14
5.14

.96 -.01 -.28
1.32
1.82 -.77 -.19 -.73
.67 -1.42 -.16 -1.80

1.25
.15
.54

1.23
1.15
1.34

.65 -.25
.65
.72
.65
.19

.01
1.51 -1.77
2.15
.31 1. 05
2.79
.09 -1.53

3.04

4.23
10.51
29.28
38.69
41.39

2.93
4.84
10.95
16.20
17.57

1945
1946
1947
1948
1949

37. 33 19.01
14.04 10.61
6.45
2.07
2.69 -1.78
2.09 -1.38

1950
1951
1952
1953
1954

.93
10.87
12. 95
10.73
9.19

3.74
6.00
7.14
4.93
5.41

1.54
2.07
3.05
3.64
4.45

.25 -.07
.90
.43 -.47 -.77
3.44
.09 1.28
3.39
.20 1.88
.22
.60 -.95

6.93
13.62
16.62

3.81
4.87
5.65

4.79
4.83
4.80

6.28
.26
5.16 -.09
6.02 -1.91

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

5.04
2.25
3.21
3.12

-.14
.44
1.62
2.94

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

5.52
2.87
4.86
3.36

1958:
First quarter
4.55
Second quarter. . 1.20
Third quarter. . - 5.22

.

insurance
and Mort- Con- Securpen- gage sumer ities 9
sion debts debt 7 loans
reserves5

1.72

4.24

1955
1956
1957

vate ininsur- sured
ance penre- sion
serves4 funds

Less: Increase in
debt

-.44
-.50
.01
-.26
-.68

1939
1940
1941
1942
1943
1944

_

Govern-

Pri- Non- ment

0.04 -0.83
.20
.36
.25
.55
.81

0.66 -0.87 -0.62

-.43
.86 -.84
2.64 2.75
.38
10.33 7.98 2.34
14.14 11.14 3.25
15.71 11.80 4.59

1.06 9.93
1.18 -1.43
1.20 2.42
1.19 3.12
1.51 2.39

-.58
-.46
-.49
-.38

1.30

0.50

0.81 -0. 23

1
Individuals' saving, in addition to personal holdings, covers saving of unincorporated business, trust
funds, and nonprofit institutions in the forms specified.
2
Includes currency, demand deposits, time and savings deposits, shares and deposits in credit unions,
and the postal savings system.
3
Includes armed forces leave bonds and other U. S. Government bonds (except savings bonds) and all
securities issued by State and local governments.
4
Includes insured pension reserves.
5
Includes Social Security funds, State and local retirement systems, etc.
6
Mortgage debt to institutions on one- to four-family nonfarm dwellings.
7
Consumer debt owed to corporations, largely attributable to purchases of automobiles and other dur
able consumer goods, although including some debt arising from purchases of consumption goods. Policy
loans on Government and private life insurance have been deducted from those items of saving.
* Change in bank loans made for the purpose of purchasing or carrying securities.
9
Less than $5 million.

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 and farm and unincorporated business investment
in inventories and plant and equipment, net of depreciation and increase in debt. Government insurance
is excluded from the Commerce saving series. For a reconciliation of the two series, see Securities and Exchange Commission Statistical Bulletin, October 1958.
Revisions for 1957-58 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.




156

TABLE D-16.—Sources and uses of gross saving, 1929—58
[Billions of dollars]
Gross private saving and government surplus or
deficit on income and product transactions
Private saving

Period
Total

Total

Personal
saving

Government surplus
or deficit (-)

Gross
busi- Total
ness
saving

Federal

State
and
local

Gross investment
Statistical
Gross
disprivate Net for- crepeign in- ancy
Total domes- vesttic invest- ment 1
ment

1929

16.7

15.7

4.2

11.5

1.0

1.2

-0.1

17.0

16.2

0.8

0.3

1930
1931
1932
1933
1934

11.9
4.9
.3
.6
2.6

12.2
7.7
2.0
1.9
5.0

3.4
2.5
-.6
-.6
.1

8.8
5.2
2.7
2.6
4.9

-.3
-2.8
-1.7
-1.4
-2.4

.3
-2.1
-1.5
-1.3
-2.9

-.5
-.7
_ 2
(2)
.5

11.0
5.7
1.1
1.5
3.3

10.3
5.5
.9
1.4
2.9

!2
.2
.2
.4

-1.0
.8
.8
.9
.7

1935
1936
1937
1938
1939

6.4
7.2
12.1
7.3
9.0

8.4
10.1
11.5
8.9
11.2

2.0
3.6
3.7
1.1
2.9

6.3
6.5
7.8
7.8
8.3

-2.0
-3.0
.6
-1.6
-2.1

-2.6
-3.5
-.2
-2.0
-2.2

.6
.5
.7
.4
.1

6.2
8.3
11.8
7.8
10.2

6.3
8.4
11.7
6.7
9.3

-.1
-.1
.1
1.1
.9

-.2
1.1
-.2
.5
1.2

1940
1941
1942
1943
1944

13.9
18.8
10.5
5.1
2.3

14.6
22.6
41.9
49.3
54.2

4.2
11.1
27.8
33.0
36.9

10.4
-.7 -1.4
11.5 -3.8 -5.1
14. 1 -31.4 -33.2
16.3 -44.2 -46.7
17.2 -51.9 -54.6

.7
1.3
1.8
2.5
2.7

14.7
19.2
9.7
3.4
5.0

13.2
18.1
9.9
5.6
7.1

1.5
1.1
-.2
-2.2
-2.1

.8
.4
-.8
— 1. 7
2.8

1945
1946
1947 1948
1949

4.5
30.6
36.8
45.9
33.0

44.3
26.5
23.6
37.6
36.1

28.7
13.5
4.7
11.0
8.5

15.6 -39.7 -42.3
4.1
2.2
13.1
13.3
18.9
12.2
26.6
8.2
8.0
27.6 -3.1 -2.5

2.6
1.9
1.1
.3
-.6

9.0
32.7
40.4
45.0
33.5

10.4
28.1
31.5
43. 1
33.0

-1.4
4.6
8.9
1.9
.5

4.5
2.1
3.5
-.8
.5

1950. _ - 1951
1952
1953
1954

48.5
55.3
48.3
47.0
47.6

40.3
49.2
52.2
54.1
54.4

12.6
17.7
18.9
19.8
18.9

27.7
31.5
33.2
34.3
35.5

8.2
6.1
-3.9
-7.1
-6.7

9.2
6.4
-3.9
-7.4
-5.8

-1.0
-.3
.1
.3
-.9

47.8
56.6
49.7
48.3
48.5

50.0
56.3
49.9
50.3
48.9

-2.2
.2
-.2
-2.0
-.4

1.2
1.4
1.3
.9

1955
1956.
1957
19583

62.4
70.5
68.0
54.9

59.6
64.2
66.3
64.9

17.5
21.1
20.7
19.9

2.9
42.1
6.3
43.2
45.6
1.7
45.0 -10.0

3.8
6.8
2.9
-8.1

-1.0
-.6
-1.2
-1.9

63.4
69.6
68.8
53.6

63.8
68.2
65.3
53.5

-.4
1.4
3.5
.1

1.0
-.9
.7
-1.2

.

Seasonally adjusted annual rates
1956:
First quarter
Second quarter __
Third quarter
Fourth quarter..

67.7
70.3
71.6
72.0

60.5
63.4
66.2
66.5

17.9
21.6
22.4
21.7

42.6
41.8
43.7
44.9

7.2
6.9
5.4
5.5

7.7
7.3
5.8
6.5

-.5
-.4
-.4
-1.0

67.5
69.0
70.0
71.6

68.0
67.7
68.1
68.8

— .5
1.3
2.0
2.8

-.2
-1.3
-1.5
-.5

1957:
First quarter
Second quarter __
Third quarter
Fourth quarter _ _

69.2
69.7
69.6
62.6

65.1
68.4
66.8
64.9

20.3
23.2
20.4
19.6

44.8
45.2
46.4
45.4

4.1
1.3
2.8
-2.3

5.5
2.6
3.4
-.2

-1.4
-1.3
-.6
-2.1

70.1
71.2
70.3
63.4

65.9
67.0
66.7
61.5

4.2
4.2
3.6
1.9

.9
1.5

1958:
First quarter
Second quarter _ _
Third quarter ...
Fourth quarter '

51.8
50.9
57.1
59.8

61.2
63.1
67.0
68.2

18.8
19.2
22.5
19.0

42.4 -9.4
43.9 -12.2
44.5 -10.2
49.2 -8.4

-6.6
-9.9
-8.6
-7.2

-2.7
-2.2
-1.6
-1.2

50.1
49.7
54.2
60. 5

49.6
49.2
53.7
61.5

.5
.5
.5
-1.0

.7

-i!i

-2.7
.9

1
Net exports of goods and services less foreign net transfers by Government. For 1929-45, net foreign
investment and net exports of goods and services have been equated, since foreign net transfers by government were negligible during that period.
2
Less than $50 million.
3
Preliminary; fourth quarter by Council of Economic Advisers.
NOTE.—Series revised beginning 1946. For details, see U. S. Income and Output, A Supplement to the
Survey of Current Business, 1959.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




157

EMPLOYMENT AND WAGES
TABLE D-17.—Noninstitutional population and the labor force, 1929-58
Civilian labor force
Total
Nonin- labor
stitu- force Armed
tional (includ- forces i
ing
popuTotal
lation i armed
forces) i

Period

Total
labor
force as Unemploypercent ment as perUnem- of non- cent of civilian labor
Non- ploy-2 institutional
force
agri- ment
popucullation
tural

Employment 2

Total

Agricultural

Percent

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

1930
1931 ...
1932
1933
1934
1935
1936
1937
1938
1939

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

1,550

(3)

3.2

()
(»)
(3)
(3)
(3)

50, 080
50, 680
51, 250
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

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

35, 140 4,340
32, 110 8,020
28, 770 12,060
28, 670 12, 830
30, 990 11, 340

(3)
(3)
3
(3)
(3)
()

8.7
15.9
23.6
24.9
21.7

(3)
(3)
(3)
(3)
(3)

_

49, 440

3

-.

C3)

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

270
300
320
340
370

52, 870
53, 440
54,000
54, 610
55, 230

42, 260 10, 110
44, 410 10,000
46,300 9,820
44, 220 9,690
45, 750 9,610

32, 150 10, 610
34, 410 9,030
36, 480 7,700
34, 530 10, 390
36, 140 9,480

(3)
3
(3)
(3)
(3)
()

20.1
16.9
14.3
19.0
17.2

55, 640
55, 910
56, 410
55, 540
54, 630

1940
1941
1942
1943
1944 .

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

56, 180
540
57, 530 1,620
60, 380 3,970
64, 560 9,020
66, 040 11,410

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

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

37, 980
41, 250
44, 500
45, 390
45, 010

8,120
5,560
2,660
1,070
670

56.0
56.7
58.8
62.3
63.1

14.6
9.9
4.7
1.9
1.2

1945 1946
1947
1948
1949

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

65, 290 11, 430 53, 860 52, 820
60, 970 3, 450 57, 520 55, 250
61, 758 1,590 60, 168 58, 027
62, 898 1,456 61, 442 59, 378
63, 721 1,616 62, 105 58, 710

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

44, 240
46, 930
49, 761
51, 405
50,684

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

61.9
57.2
57.4
57.9
58.0

1.9
3.9
3.6
3.4
5.5

1950
1951
1952
1953
1954 _

110, 929
112, 075
113, 270
115, 094
116,219

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

1,650
3,097
3,594
3,547
3,350

7,507
7,054
6,805
6,562
6,504

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

1955
1956
1957

117, 388
118, 734
120, 445

68, 896
70, 387
70, 761

3,048 65, 847 63, 193
2,857 67, 530 64, 979
2,797 67, 964 65, 272

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
108, 632
109, 773

61, 758
62, 898
63, 721

1,590 60, 168 57, 812
1,456 61, 442 59, 117
1,616 62, 105 58, 423

8,256 49, 557
7,960 51, 156
8,017 50, 406

2,356
2,325
3,682

57.4
57.9
58.0

3.9
3.8
5.9

110, 929
112,075
113, 270
115,094
116, 219

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

1,650
3, 097
3,594
3,547
3, 350

63, 099
6J2, 884
62, 966
63, 815
64, 468

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

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

52, 251
53, 736
54, 243
55, 390
54, 395

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

58.4
58.9
58.8
58.5
58.4

5.3
3.3
3.1
2.9
5.6

117,388
118, 734
120, 445
121,950

68, 896
70, 387
70, 744
71, 284

3,048
2,857
2,797
2,637

65, 848
67, 530
67, 946
68, 647

62, 944
64, 708
65,011
63, 966

6,718
6,572
6.222
5,844

56, 225
58, 135
58, 789
58, 122

2,904
2,822
2,936
4,681

58.7
59.3
58.7
58.5

4.4
4.2
4.3
6.8

New definitions: 2
1947 . . _
1948
1949. . _ .

1950
1951
1952
1953
1954

..

1955
1956
1957
1958

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

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

See footnotes at end of table.




158

TABLE D-17.—Noninstitutional population and the labor jorce^ 1929-58—Continued
Civilian labor force

Period

Noninstitutional
population i

Total
labor
2
force as
Employment
percent
of nonUnem- instituployAgri- Non- ment 2 tional
agriTotal culpopucultural tural
lation

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

Thousands of persons 14 years of age and over

Unemployment as percent of civilian labor
force
Unad- Seasonjusted ally adjusted

Percent

New definitions 2
1956: January
February, ._
March
AprilMay
June

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
4.3
4.9

4-0
4.1
4.3
4.1
4.4
4-4

July
118, 762
August
118,891
September. . 119,047
October
119, 198
November. .119,344
December... 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

4.5
3.7
3.4
3.1
3.9
4.1

4.4

119,614
119, 745
119,899
120, 057
120, 199
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
3,121
2,882
2,690
2,715
3,337

57.4
57.7
58.0
58.1
58.8
60.4

4.9
4.7
4.3
4.0
4.0
4.8

4.2
4-1
3.9
4.0
4.1
4-2

July...
120, 579
August
120, 713
September .. 120, 842
October
120, 983
November. . 121, 109
December ... 121, 221

73, 051
71,833
71,044
71,299
70, 790
70, 458

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

70, 228
68, 994
68, 225
68,513
68,061
67, 770

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

7,772
6,823
6,518
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
3,188
3,374

60.6
59.5
58.8
58.9
58.5
58.1

4.3
3.8
3.7
3.7
4.7
5.0

4.2
4.3
4.5
4.7
4.9
5.0

1957: January
February. _ _
March
AprilMay
June

i'o
11
4-1

1958: January
February. _ .
March
April..
May
June

121, 325
121, 432
121, 555
121, 656
121, 776
121,900

69, 379
69, 804
70, 158
70,681
71,603
73, 049

2,647
2,644
2,648
2,654
2,638
2,631

66, 732
67,160
67, 510
68, 027
68, 965
70, 418

62, 238
61, 988
62,311
62,907
64, 061
64, 981

4,998
4,830
5,072
5,558
6,272
6,900

57, 240
57, 158
57, 239
57, 349
57, 789
58, 081

4,494
5,173
5,198
5, 120
4,904
5,437

57.2
57.5
57.7
58.1
58.8
59.9

6.7
7.7
7.7
7.5
7.1
7.7

5.8
ft. 7
7.0
7.5
7.2
6.8

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

121, 993
122, 092
122, 219
122, 361
122, 486
122, 609

73, 104
72, 703
71, 375
71, 743
71, 112
70, 701

2,631
2,636
2,635
2,632
2,627
2, 620

70, 473
70, 067
68, 740
69, 111
68, 485
68, 081

65, 179
65, 367
64,629
65, 306
64, 653
63, 973

6,718
6,621
6,191
6,404
5,695
4,871

58, 461
58, 746
58, 438
58, 902
58, 958
59, 102

5,294
4,^99
4,111
3,805
3,833
4,108

59.9
59.5
58.4
58. 6
58.1
57.7

7.5
6.7
6.0
5.5
5.6
6.0

7.5
7.6
7.2
7.1
5.9
6.1

1
Data for 1940-52 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 they are based on a 230-area sample; for 1946-53 on a 68-area sample; for 1940-45 on a smaller
sample; and for 1929-39 on sources other than direct enumeration.
Effective January 19--7. 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 foltowing 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
imsinesses or start new farms within 30 days 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.)
Beginnim: July 1955, monthly data are for the calendar week containing the 12th of the month; previously, for week containing the 8th. Annual data are averages of monthly figures.
For the years 1940-52, estimating procedures made use of 1940 Census data; for subsequent years, 1950
Census data were used. For the effects of this 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.




159

TABLE D-18.—Employment and unemployment, by age and sex, 1942—58
[Thousands of persons 14 years of age and over]
Employed

Period

Unemployed

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

Old definitions ;i

1942
1943
1944

56, 410 53,750 5,770 20,790 9,400 14,160 3,630
55, 540 54, 470 6,350 17, 550 11, 050 15,160 4,360
54, 630 53,960 6,050 16, 380 11, 280 15, 480 4,770

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

5,480 15, 830 11, 140 15,520
4,550 21, 170 9,870 15,280
4,717 23,409 9,828 15, 474
4,841 23, 842 10, 098 15, 677
4,512 23, 483 10,087 15, 491

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

4,564 23, 833 10, 376 15, 666
4,614 23, 594 10, 833 16, 144
4, 530 23, 372 10, 917 16, 345
4,514 23, 715 10, 953 16, 725
4,285 23, 178 10, 730 16,649

1955
1956

2,660
1,070
670

510
290
200

670
180
140

520
260
170

770
240
110

190
100
50

4,850
4,380
4,600
4,924
5,138

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

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

270
280
303
353
559

200
410
396
414
719

50
90
99
127
194

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

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

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

552
419
344
300
617

697
402
345
363
684

232
190
127
116
256

65, 847 63,193 4,446 23, 768 11,000 16, 878 7,101
67, 530 64, 979 4,764 24, 051 11, 271 17,294 7,598

2,654
2,551

471
510

854
784

502
491

606
530

222
239

67, 946 65,011 4,719 23, 992 11, 247 17, 247 7,803
68,647 63, 966 4,512 23, 374 11, 028 17, 036 8,015

2,936
4,681

574
936
758 1,715

566
850

605
966

254
392

New definitions:1

1957
1958

1957: January
65, 821
February... 66, 311
March
66, 746
April
66, 951
Mav . ... 67, 893
June .
69, 842

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

3,871 23, 598 10, 797 16, 846
3,973 23, 583 11,066 16, 955
4,087 23, 807 11,077 17, 109
4,204 23, 911 11, 091 17, 212
4,475 24, 084 11, 276 17, 407
5,667 24, 346 11, 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, 225
October
68,513
November- 68, 061
December.. 67, 770

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

6,332 24, 490 11,201 17, 385
5,953 24,450 11,067 17, 304
4,680 24, 199 11,416 17, 430
4,678 24, 101 11, 766 17, 431
4,338 23, 832 11,550 17, 274
4,384 23, 513 11, 465 17, 125

7,814
7,613
7,945
8,030
7,878
7,909

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

582
554
555
523
638
541

499
479
505
528
667
768

251
244
251
248
313
258

1958: January
66,732
February. __ 67, 160
March
67, 510
April
68, 027
May68,965
June
. 70, 418

62, 238
61, 988
62, 311
62, 907
64,061
64, 981

3,805 23, 022 10, 890 16, 837
3,844 22, 738 10, 779 16, 784
3,878 22, 818 10, 877 16, 746
4,016 23, 018 10, 942 16, 888
4,361 23,266 11,131 17, 137
5,308 23, 513 10, 983 17, 146

7,682
7,844
7,994
8,039
8,167
8,031

4,494
578
5,173 640
5,198 603
5,120 673
4,904
776
5,437 1,360

779 920
932 1,103
894 1,171
937 1,114
915 992
906
916

377
400
382
436
410
420

July
70, 473
August
70, 067
September.. 68,740
October
69, 111
November.. 68, 485
December. .68,081

65, 179
65, 367
64, 629
65,306
64, 654
63, 974

5,756 23, 567 10,887 17, 119
5,797 23,769 10, 891 17, 058
4,416 23, 730 11, 125 17, 236
4,468 23, 823 11, 450 17, 351
4,238 23, 763 11,286 17, 172
4,252 23,467 11,096 16, 964

7,851
7,852
8,122
8,214
8,195
8,194

5,294 1,200 1,848
754 1,633
4,699
4,111 695 1,365
3,805 601 1,265
3,833 625 1,258
587 1,529
4,109

886
907
838
752
745
707

428
436
387
381
330
316

847
828
553 779
436
802
401 809
547 1,023
512 1,294

1,839
2,095
2,147
1,959
1,812
1,836

1
See Note, Table D-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 D-17 for information on area sample used and reporting periods.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce.




160

930
968
825
807
874
968

TABLE D—19.—Employed persons not at work, by reason for not working, and special groups
of unemployed persons, 1946-58 *
[Thousands of persons 14 years of age and over]
Special groups of unemployed persons 3

Employed persons not at work,
by reason for not working
Period
Total
1946..
1947
1948
1949

Bad
weather

2,103
2,260
2,490
2,243

(6)
211
197
110

2,440
2,459
2, 555
2,529
2,688

1955
1956
1957
1958

1957' January
February
March .
April
May
June
..-

1950
1951
1952
1953
1954

Industrial
dispute
(6)

Vacation

Illness

All
other
reasons 2

Tempo- New wage
rary
and salary
jobs
layoff «

1958' January
February
March
April
May
June
July..
August
September
October
November
December

.

819
847
844
719

(8)
273
308
291

97
123
141
185

58
92
121
101

151
111
68
96
73

85
57
164
73
53

,137
,073
,130
,171
,361

718
782
775
827
776

349
436
418
362
425

92
117
142
167
221

116
103
117
101
127

103
109
139
182

61
76
45
59

,268
,346
1,447
1,479

835
901
962
882

416
456
425
474

133
124
150
166

117
147
110
120

1,994
2,C11
1,905
1,822
2,056
3,358

354
?26
167
139
149
61

12
26
40
40
46
66

313
342
342
429
707
1,959

876
999
975
896
810
783

442
418
382
317
344
489

202
149
102
143
142
137

103
93
83
68
147
251

7,014
6.048
2,777
2,571
2,492
2,161

July.
August
September
October
November
December

662
834
,044
,044

2,683
2,888
3, 017
3,076

.. .

95
97
79

17
25
47
53
175
257

113
81
41
34
16
27

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

793
885
857
1,342
1,339
989

514
535
402
348
438
467

189
129
148
181
121
160

136
105
99
54
84
96

2,297
2,821
2,149
2,316
1,902
3, 305

342
708
271
135
40
65

22
27
54
41
50
45

330
353
324
742
584
1,867

1,145
1,202
1,026
938
836
751

458
531
474
460
391
577

187
227
201
207
160
156

61
68
64
88
188
328

7,315
5,893
2,731
2,224
1,971
1,991

145
27
29
20
44
353

31
58
58
206
33

5,781
4,517
1,512
788
602
353

745
736
737
821
850
801

612
555
395
389
442
399

176
154
112
129
153
129

130
175
135
70
56
77

85

1
Data prior to 1957 are Census Bureau estimates adjusted by 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 but 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, the
"new job or business" group included these persons as well as persons waiting to open new businesses or
start new farms within 30 day? (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").
6
Not available.
NOTE.—See Note, Table D-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).




161

TABLE D-20.—Unemployed persons, by duration oj unemployment, 1946-58
Duration of unemployment
Period

Total unemployed

4 weeks
and under

5-14
weeks

15-26
weeks

Over 26
weeks

Average
duration
of unemployment
(weeks)

Thousands of persons 14 years of age and over
Old definitions: *
1946
1947
1948
1949

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

(2)
1,041
1,087
1,517

1950
1951
1952
1953
1954

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

1,307
1,003
925
910
1,303

1955
1956

2,654
2,551

(2)

(2)

(3)

234
193
427

141
164
116
256

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

1, 138
1,214

815
804

367
301

336
232

13.2
11.3

2, 936
4,682

1,485
1,833

890
1,397

321
785

239
667

10.4
13.8

1957: First quarter
Second quarter
Third quarter.
Fourth quarter

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

1,382
1,559
1,469
1,530

1,108
738
781
935

371
359
245
309

223
258
228
248

10.6
10.7
9.8
10.3

1958: First quarter
Second quarter
Third quarter
Fourth quarter

4, 955
5,154
4,701
3,915

1,902
2,024
1,785
1,619

1,900
1,377
1,322
986

799
1,126
683
533

354
626
911
776

11.1
13. 5
15.3
15.9

704
669
1,195

9.8
8.6
10.0

New definitions: >
1957
1958

..

1
2

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




l62

TABLE D-21.—Unemployment insurance programs, selected data, 1939 and 1946-58

Initial claims 1

Period

State,
veteran,
State
and
Federal
proemployee grams 3
pro- 2
grams

Insured unemployment 4

State
All proprograms 5 grams 3 6

State
Benefits paid
insured under State prounemgrams 3
ployExhaus- ment
tions,
as perState
cent of
proTotal
covered (millions Average
grams 3 ; employweekly
of dol
check
ment
lars)s (dollars) s
(per- 4
3
cent)

Weekly average (thousands)
1939.

188

188

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

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

211
215
222
310

236
208
215
217
303

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

1,497
965
1,019
988
1,857

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

236
234
276
11 379

228
229
271
372

1,388
1,312
1, 560
11 2, 727

,269
,225
,466
,537

3.4
3.1
3.5
6.1

1,379.2
1,409.3
1, 766. 4
3,475. 0

25.08
27.06
28.21
30. 55

347
256
219
254
221
226

340
251
214
250
218
220

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

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

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
27.44

280
196
250
263
325
466

276
191
246
259
320
460

1,368
1,228
1,240
1,314
1,623
2,256

,285
,151
,167
,237
,513
2,112

3.1
2.8
2.8
3.0
3.6
5.1

130.1
121.3
113.3
131.8
136.6
207.1

27.59
27.87
28.64
29.20
29.44
29.75

505
461
435
457
355

497
454
427
451
349
360

3,065
3,375
3,505
3,527
3,186
2,847

2,877
3,163
3,276
3,302
2,984
2,667

6.9
7.6
7.9
7.9
7.1
6.3

313. 0
320.2
370.2
403.8
363.6
325.0

30.09
30.48
30.53
30.88
30.80
30.80

367
302
273
276
" 328
"415

361
298
269
274
315
405

2,717
2,374
2,062
1,863
11 1,957
11 2,300

2,511
2,203
1,906
1,722
1,781
2,106

6.0
5.2
4.5
4.1
4.3
5.0

305. 6
255. 4
231.1
210.3
174.5
206.0

30.62
30. 50
30.66
30.45
30.33
30. 50

f

1950.
1951
1952
1953
1954

1955
1956
1957
19581°

1957: January
February
March
April
May
June
July
August
September
October
November
December
1958: January
February
March
April
May
June.
July
August
September
October
November 10
December

1,086

1 Most of these are instances of new unemployment.
2
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.
6
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.
1° Preliminary.
11
Includes activities under the unemployment compensation program for ex-servicemen, which became
effective October 27, 1958.
Source: Department of Labor.




163

TABLE D-22.—Number of wage and salary workers in nonagricultural establishments, 1929-58 1
[Thousands of employees]
Manufacturing

Total

Durable
goods

Nondurable
goods

Mining

GovTransernCon- portament
tract tion
2
FiServ- (Fedconand Trade nance ice 2 eral,
struc- public
State,
tion utiliand
ties
local)

10, 534

(»)

(3)

1,078

1,497

3,907

6,401

1,431

3,127

3,066

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

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

3
(3)
( 3)
(3)
(3)

()

(3)
3
(3)
(3)
()
(3)

1,000
864
722
735
874

1,372
1,214
970
809
862

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

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

1,398
1,333
1,270
1,225
1,247

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

3,149
3, 264
3,225
3,167
3,298

26, 792
28, S02
30, 718
28, 902
30,311

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

(3)
(3)
(3)
(3)
4,683

(••)
(3)
(3)
(3)
5,394

888
937
1,006
882
845

91?
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

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
1, 435
1,409

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

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

1945
1946
1947
1948
1949

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

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

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

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

826
852
943
982
918

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
4,9?5
4,972

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

1950
1951
1952
1953
1954

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

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

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

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

889
916
885
852
777

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

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

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

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

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

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

1955
1956
1957
1958 4

50, 056
51,766
52, 162
50, 531

16, 563
16, 903
16, 782
15, 462

9,549
9,835
9,821
8,739

7,014
7,068
6,961
6,723

777
807
809
721

2,759
2,929
2,808
2,649

4,062
4,161
4,151
3,905

10, 846
11,221
11,302
11, 136

2,219
2,308
2,348
2,375

5,916
6,160
6,336
6,394

6,914
7,277
7,626
7,889

Total
wage
and
salary
workers

Period

31, 041

1929
1930
1931
1932
1933
1934
1935
1936
3937
1938
1939

..

Seasonally adjusted
1956: January
February. ..
March
April
May
June

51,301
51, 391
51, 303
51, 631
51, 767
51, 963

16, 951
16, 898
16, 812
16, 931
16, 922
16, 894

9,863
9,802
9,736
9,839
9,814
9,800

7,088
7, 096
7,076
7,092
7,108
7,094

792
794
801
814
809
822

2,768
2,802
2,834
2, 891
2,964
3, 079

4,154
4,141
4,131
4,144
4,163
4,182

11,197
11,231
11, 163
11,242
11,215
11,251

2,271
2,284
2,288
2,289
2,300
2,307

6, 108
6, 138
6, 127
6,147
6,130
6, 160

7, 060
7, 103
7,147
7, 173
7,264
7,268

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

51, 345
52, 029
51,953
52, 137
52, 156
52, 251

16, 471
16,900
16, 873
17,043
17, 057
17, 093

9, 438
9, 835
9,834
9,978
10, 033
10, 050

7,033
7,065
7,039
7,065
7,024
7,043

759
819
824
820
814
811

2,984
3,007
2,980
2,951
2,926
2,917

4,134
4,163
4,170
4,183
4,165
4,175

11,227
11,269
11,206
11,242
11,238
11,246

2,306
2,329
2,328
2, 330
2,330
2, 325

6, 182
6,164
6,171
6,165
6,201
6, 225

7,282
7,378
7,401
7, 403
7, 425
7, 459

1957: January
February. -March
April
May
.
June.

52, 194
52, 254
52, 207
52, 243
52, 340
52, 415

17, 030
16, 978
16, 949
16, 947
16, 930
16, 909

10, 017
9,991
9,952
9,940
9,928
9,921

7, 013
6,987
6,997
7,007
7,002
6,988

808
807
803
812
814
823

2,798
2,831
2, 859
2,855
2,891
2,899

4,181
4,161
4,164
4, 157
4,158
4,159

11,275
11,306
11,258
11,265
11,298
11,327

2,321
2,330
2,329
2,326
2,335
2,342

6,268
6, 306
6,279
6,284
6,306
6, 347

7,513
7,535
7, 566
7, 597
7,608
7,609

July..
August
September..
October
November
December .

52, 464
52, 457
52, 224
52, 015
51,758
51,516

16,876
16, 826
16, 678
16, 604
16, 455
16, 252

9,893
9,863
9,726
9,681
9, 562
9,393

6,983
6,963
6,952
6,923
6,893
6,859

828
820
814
802
789
784

2,847
2,805
2,782
2,763
2,710
2,679

4,163
4,179
4,170
4,141
4,104
4,070

11,368
11, 402
11,349
11,315
11,290
11,237

2,349
2,359
2, 366
2,373
2,372
2, 365

6, 395
6,372
6,380
6, 343
6,367
6, 382

7,638
7, 694
7, 685
7, 674
7,671
7,747

Sec footnotes at end of table.




164

TABLE D-22.—Number of wage and salary workers in nonagr{cultural establishments, 1929-58*—

Continued
[Thousands of employees]
Manufacturing
Period

Total
wage
and
salary
workers

Total

Durable
goods

Nondurable
goods

Mining

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

Service 2

Government
(Federal,
State,
and
local)

Seasonally adjusted
1958: January
February. .March
April
May
__
June

51, 223
50,575
50, 219
50, 054
50, 147
50, 315

15, 965
15, 648
15, 389
15, 243
15, 202
15, 275

9,155
8,895
8,717
8,566
8,498
8,556

6,810
6,753
6,672
6,677
6, 704
6,719

766
747
733
723
718
713

2,652
2,455
2,573
2,624
2,698
2,698

4,045
3,990
3,930
3,890
3,877
3,888

11,305
11, 235
11,116
11,050
11,087
11, 105

2,368
2,367
2,360
2, 356
2,370
2,367

6,368
6,367
6,330
6,352
6,360
6,392

7,754
7,766
7,788
7,816
7,835
7,877

July
August .
September-October 4
November December 4 .

50, 411
50, 570
50, 780
50, 582
50, 825
50. 736

15,312
15, 330
15,529
15, 358
15, 664
15, 667

8,596
8,605
8,801
8,625
8,914
8,940

6,716
6,725
6,728
6,733
6,750
6,727

709
701
707
708
708
708

2,693
2,711
2,698
2,698
2,692
2,550

3,877
3,867
3,858
3,887
3,876
3,864

11,121
11,175
11,151
11, 154
11,110
11, 100

2,363
2,377
2,392
2,392
2,389
2,384

6,433
6, 420
6,440
6,399
6,424
6,446

7,903
7,989
8,005
7,986
7. 962
8,017

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 D-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.

489916 0—59




165

TABLE D-23.—Average weekly hours of work in selected industries, 1929-58
Retail

Manufacturing
Period
Total

1929
1930
1931. .
1932
1933.
1934
1935
19361937
1938
1939
1940
1941-..
1942
1943.
1944
1945
1946
1947
1948
1949
1950
1951.
1952
1953
1954
1955
1956
1957 . .
1958«
1957: January
February. ....
March
.
April
May
JuneJuly
August
September
October
November
December
1958: January
February
March
April
Mav .. -. .
June
July
August
September
October
November 6 _ .
December 6 -._

44.2
42.1
40.5
38.3
38.1
34.6
36.6
39.2
38.6
35.6
37.7
38.1
40.6
42.9
44.9
45.2
43.4
40.4
40.4
40.1
39.2
40.5
40.7
40.7
40.5
39.7
40.7
40.4
39.8
39.2
40.2
40.2
40.1
39.8
39.7
40.0
39.8
40.0
39.9
39.5
39.3
39.4
38.7
38.4
38.6
38.3
38.7
39.2
39.2
39.6
39.9
39.8
39.9
40.2

Durable
goods

Nondurable
goods

3

3

()
(3)
(3)
32.6
34.8
33.9
37.3
41.0
40.0
35.0
38.0
39.3
42.1
45.1
46.6
46.6
44.1
40.2
40.6
40.5
39.5
41.2
41.6
41.5
41.3
40.2
41.4
41.1
40.3
39.5
40.9
40.9
40.8
40.5
40.3
40.5
40.0
40.3
40.2
39.8
39.7
39.7
38.9
38.6
39.0
38.8
39.1
39.6
39.4
39.8
40.2
40.1
40.3
40.7

()
(3)
(3)
41.9
40.0
35.1
36.1
37.7
37.4
36.1
37.4
37.0
38.9
40.3
42.5
43.1
42.3
40.5
40.1
39.6
38.8
39.7
39.5
39.6
39.5
39.0
39.8
39.5
39.1
38.8
39.1
39.2
39.1
38.8
38.9
39.2
39.4
39.5
39.6
39.0
38.8
39.0
38.3
38.1
38.1
37.7
38.1
38.7
39.0
39.4
39.5
39.4
39.4
39.6

trade
Bitumi- Build- Class I
(except
ing
nous
Tele-2 Whole- eating
conrail- phone
sale
coal
and
trade
mining struc- roads i
drinktion
ing

Laundries

places)

38.4
33.5
28.3
27.2
29.5
27.0
26.4
28.8
27.9
23.5
27.1
28.1
31.1
32.9
36.6
43.4
42.3
41.6
40.7
38.0
32.6
35.0
35.2
34.1
34.4
32.6
37.6
37.8
36.6
33.6
37.5
38.4
37.4
37.0
35.8
37.6
36.3
36.5
36.9
36.4
33.5
35.5
34.0
33.1
31.7
30.0
31. 1
35.2
32.4
35.3
35.4
35.8
35.6
(3)

3

()
(3)
(3)
(3)
(3)
28.9
30.1
32.8
33.4
32.1
32.6
33.1
34.8
36.4
38.4
39.6
39.0
38.1
37.6
437.3
36.7
36.3
37.2
38.1
37.0
36.2
36.2
36.4
36.1
35.7
34.0
36.3
36.0
36.2
36.4
36.9
36.8
37.2
36.8
36.5
34.4
34.9
35.2
33.0
35.2
35.5
36.3
36.2
36.3
36.7
36.5
36.8
35.4
(3)

3

()

()

(3)
(3)
(3)
(3)
fl)

(3)
(3)
(3)
(3)
(3)

(33)
(3)
(3)
(43.7
)
44.3
45.8
47.0
48.7
48.9
48.5
46.0
46.4
46.2
43.7
40.8
41.0
40.6
40.6
40.8
41.9
41.7
41.7
41.6
42.5
42.2
40.9
42.0
42.4
41.0
42.6
42.3
41.1
42.2
40.9
40.8
41.6
41.5
40.1
41.4
41.2
41.3
42.5
41.2
42.2
42.6
(3)
(3)

3

(3)
(3)

38.8
38.9
39.1
39.5
40.1
40.5
41.9
42.3
541.7
39.4
37.4
39.2
38.5
38.9
39.1
38.5
38.7
38.9
39.6
39.5
39.0
38.4
38.7
39.0
38.7
38.7
39.0
39.2
39.5
38.9
38.8
39.2
40.0
38.6
38.0
38.2
37.8
37.7
37.8
38.2
38.5
38.6
39.0
39.0
39.6
(3)

3

()
(3)
(3)
(3)
(3)
(3)
41.3
42.6
42.8
* 42. 2
41.7
41.2
41.0
41.3
42.2
42.9
42.7
41.5
41.0
40.9
40.7
40.7
40.7
40.6
40.5
40.4
40.6
40.4
40.2
40.1
40.2
40.2
40.1
40.0
40.1
40.3
40.4
40.4
40.4
40.2
40.0
40.4
40.1
39.8
39.9
39.6
40.0
40.1
40.3
40.2
40.3
40.3
40.1
(3)

(3)
(3)
(3)
(3)
3
( 3)
()
(3)
(3)
(3)
(3)
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
38.0
38.2
38.1
38.0
37.9
38.0
38.2
38.6
38.6
38.1
37.6
37.5
38.3
37.8
37.8
37.8
37.8
37.8
38.2
38.7
38.7
38.0
37.9
37.8
(3)

(3)
(3)
3
( 3)
(3)
()
39.4
41.0
42.7
42.6
41.6
41.8
41.8
42.1
42.2
42.9
42.9
42.8
42.9
42.6
41.9
41.5
41.2
41.1
41.1
40.5
40.1
40.3
40.3
39.7
39.3
39.8
39.8
39.9
40.0
40.3
40.4
39.8
39.4
39.6
39.4
39.0
39.5
39.0
38.6
39.0
39.2
39.6
39.8
39.7
39.3
39.3
39.4
38.9
(3)

1
Averages are based upon monthly data (exclusive of switching and terminal companies) summarized
in the M-300 report by the ICC and relate to all employees who received pay during the month, except
executives, officials, and staff assistants (ICC Group I). Beginning September 1949, data reflect a 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
4 Not available.
Data beginning with January of year noted are not comparable with those for earlier periods.
5
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 1958 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.




166

TABLE D- 24.—Average gross hourly earnings in selected industries, 1929-58
Manufacturing
Period
Total

BituNonDura- dura- minous
coal
ble
ble
goods goods mining

Retail
Buildtrade
ing Class I Tele- Whole- (except Launconrail- phone 2 sale
eating
dries
trade
and
struc- roads i
drinking
tion
places)

$0. 566
(4)
( 4 ) $0. 681
(4)
(4)
(4)
4
4
4
.552
.684
(4 )
(4)
(4)
(4 )
(<)
.515
.647
(4)
( 4)
(4)
()
(4)
4
.446 $0. 497 $0. 420
.520
(4 )
( 4)
(4)
.442
.472
.427
.501
()
( 4)
(4)
.532
.556
.515
.673 $0. 795
()
()
4
.550
.745
.815
.577
.530
(4 )
(4)
.556
.529
.794
.824
.586
( 4)
(4)
.624
$0. 774
.674
.856
.903
.577
(4)
.816
.627
.584
.878
.686
.908
()
.822
.633
.582
.886
.932 $0. 730
.698
.661
.724
.602
.733
.827
.883
.958
.729
.808
.743
.820
.993
.010
.640
.843
.853
.723 1. 059
.148
.837
.947
.961 1.059
.870
.852
.803 1.139
.252
1.019 1.117
.911
.319
.948
.861 1.186
.023 1.111
.904
.379
.955 6.962
.240
.086
.156 1.015
.478 1.087 1.124
.401
.237
.292 1.171
.636 1.681 1.186 1.197
.350
.410 1.278
.898 51.848 1.301 1.248
.401
.941 1.935 1.427 1.345
.469 1.325
.465
.537 1.378 2.010 2.031 1.572 1. 398
2.21
1.49
.59
1.48
2.19
1.73
.67
1.59
.67
1.54
2.31
1.83
.77
2.29
2.48
1. 68
.77
.87
2.48
1.88
1.61
1.76
.81
.92
1.66
2.48
2.60
1.93
1.82
.88
2.66
2.56
1.96
2.01
1.71
1.86
.98
2.81
2.80
2.12
2.10
1.80
2.07
2.96
1.95
2.20
3.02
2.26
1.88
3.02
3.09
2.05
2.13
1.94
2.28
2.43
2.91
.91
2.05
2.18
1.86
2.95
2.19
.92
2.05
2.92
2.24
1.86
2.17
2.93
.92
2.05
2.90
2.20
2.18
1.87
2.93
2.06
3.02
2.91
2.21
2.18
.93
1.87
May
2.06
3.01
2.93
.94
2.18
1.88
2.23
June
2.94
2.07
1.89
2.27
.95
2.19
3.05
July
.94
2.07
2.20
1.89
3.09
2.95
2.24
August
.94
2.21
3.04
2.26
2.07
1.88
2.97
September
2.08
2.22
3.02
2.28
1.90
3.06
.95
October
3.02
2.09
3.04
2.25
.97
2.23
1.90
November
2.11
2.24
3.03
.98
1.91
3.05
2.40
December
2.10
2.24
1.92
3.04
3.05
2.40
2.01
1958: January
2.11
3.04
2.24
1.92
3.07
2.38
2.01
February
2.44
1.92
3.04
3.08
2.10
2.24
2.01
March
2.11
2.02
3.04
3.06
2.25
1.93
2.40
April
2.11
3.02
1.94
3.06
2.39
2.25
2.03
May
2.12
3.06
2. C4
1.94
2.43
2.26
3.00
June
2.12
1.94
3.02
2.45
2.05
3.06
2.27
July
3.02
2.06
2.13
1.94
3.09
2.43
2.28
August
3.09
2.45
2.07
2.13
2.29
1.93
3.00
September
2.14
1.95
3.13
2.45
2.08
3.01
2.30
October
3.13
2.14
2.43
2.09
2.29
1.95
3.01
4
November 7 _ _ _ 2.17
1.96
3.13
2.08
2.33
3.03
(4)
December * _ _ _ 2.19
2.35
1.97
(4)
(4)
()
(4)

1929. _ .
1930
1931 .
1932. . .
1933
1934...
1935
1936
1937
1938. . .
1939
1940
1941 .
1942
1943
1944
1945
1946
1947-..
1948
1949 ..
1950. - .
1951
1952 ..
1953
1954
1955.-.
1956
1957
1958 7 .
1957: January
February
March
April

(4)
4
(4 )
f)
(4)
(4)
(4)
$0. 648
.667
.698
5
. 700
.715
.739
.793
.860
.933
.985
1.029
1.150
.268
.359
.414
.483
.58
.67
1.77
1.83
1.90
2.01
2.10
2.17
2.06
2.06
2.07
2.07
2.09
2.11
2.11
2.11
2.13
2.13
2.14
2.14
2.13
2. 15
2.15
2.15
2.16
2.18
2.19
2. 18
2.20
2.18
2.19
(4)

(4)
4
(4 )
(4)
(4)
( 4)
()
(4)
(4)
(4)
(4)
$0. 542
.553
.580
.626
.679
.731
.783
.893
1.009
1.088
1. 137
1.176
1.26
1.32
1.40
1.45
1.50
1.57
1.64
1.70
1.61
1.61
1.61
1.62
1.64
1.66
1.67
1.66
1.67
1.67
1.66
1.63
1.68
1.68
1.67
1.68
1.69
1.70
1.71
1.71
1.71
1.71
1.71
(4)

Agriculture 3

$0. 241
(4)
4
.226
(4 )
. 172
(4)
.129
(4)
.115
()
$0. 378
.129
.376
.142
.378
.152
.172
.395
.414
.166
.422
.166
.429
.169
.444
.206
.482
.268
.538
.353
.605
.423
.472
.648
.704
.515
.547
.767
.817
.580
.559
.843
.861
.561
.92
.625
.94
.661
.672
.98
.661
1.00
.675
1.01
.705
1.05
1.09
.728
.757
1.13
.785
1.07
1.07
1.07
.643
1.08
1.09
1.09
.717
1.09
1.10
1.11
.757
1.11
1.11
1.11
.804
1.12
1.12
1.12
.657
1.13
1.13
1.14
.728
1.14
1.14
1.14
1.14 ""."795
1.14
(4)

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 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.
Weighted average of all farm wage rates on a per hour basis.
Not available.
Data beginning with January of year noted are not comparable with those for earlier periods.
Nine-month average, April through December, because of new series started in April 1945.
Preliminary.
NOTE.—Data are for production workers in manufacturing and mining, construction workers in building
construction, and for all nonsupervisory employees in other industries (except as noted). Data are for payroll periods ending nearest the 15th of the month.
The annual figures for 1958 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.




167

TABLE D-25.—Average gross weekly earnings in selected industries, 1929-58
Retail
trade
Bitumi- Build- Class I
Whole- (except
ing
eating
Tele- 2 sale
nous
railconand
Duracoal
Nontrade drinkstruc- roads i phone
ble
durable mining
tion
ing
goods goods
places)

Manufacturing
Period
Total

1929
$25. 03
1930
23.25
1931
20.87
1932
17.05
16.73
1933
1934
18.40
1935
20.13
1936
21.78
24.05
1937
22.30
1938
1939
23.86
1940
25.20
1941
29. 58
1942
36.65
1943
43.14
1944
46.08
1945
44.39
1946
43.82
1947
49.97
54. 14
1948
1949
54.92
1950
59. 33
1951
.
64.71
1952
67.97
1953. 71.69
1954
71.86
1955
76.5?
1956
79.99
1957
82.39
1958 •
83.50
1957: January
82.41
February
82.41
March
82.21
April...
81.99
May
81.78
June
82.80
July
82.39
August
82.80
September
82.99
October
82.56
November
82.92
December
82.74
1958: January
81.66
February
80.64
March
81.45
April
80.81
May
.. 82.04
June
83.10
July...
83.50
August
84.35
September
85.39
October 6
85.17
November 6 ... 86.58
December _ _ . 88.04

$27. 22
24.77
21.28
16.21
16.43
18.87
21.52
24.04
26.91
24.01
26. 50
28.44
34.04
42.73
49.30
52.07
49.05
46.49
52.46
57.11
58.03
63.32
69.47
73.46
77.23
77.18
83.21
86.31
88.66
90.06
89.16
88.75
88.94
88.29
87.85
88.70
88.00
89.06
89. 24
88.75
88.93
88.93
87.14
86.46
87.75
87.30
88.37
89.89
89.83
91.14
92.46
91.83
93.90
95.65

$22. 93
21.84
20.50
17.57
16.89
18.05
19.11
19.94
21.53
21.05
21.78
22.27
24.92
29.13
34.12
37.12
38.29
41.14
46.96
50.61
51.41
54.71
58.46
60.98
63.60
64.74
68.06
71.10
73.51
75.27
72.73
72.91
73.12
72.56
73.13
74.09
74.47
74.26
75.24
74.10
74.11
74.88
73.54
73.15
73.53
73.14
73.91
75. 08
75.66
76.04
77.03
76.83
77.22
78.01

$25. 72
(3)
22.21
(3)
17.69
(3)
13.91
(3)
14.47
(3)
18.10 $22. 97
24.51
19.58
27.01
22.71
30.14
23.84
29.19
20.80
30.39
23.88
31.70
24.71
35. 14
30.86
41.80
35.02
41.62
48.13
52.18
51.27
53.73
52.25
56.24
58.03
63.30
66.59
72.12 < 68. 85
70.95
63.28
73.73
70. 35
77.79
81.47
88.01
78.09
91.76
85.31
94.12
80.85
96.29
96.26
106. 22 101. 92
110. 53 106. 86
101.47 110.31
98.94
110. 63
112.51 106. 00
109. 58 104. 40
111.74 105. 34
107. 76 106. 65
114.68 108. 49
112.17 108. 56
110.96 110. 48
112.91 111.14
110.66 110.23
102. 18 104. 23
107. 92 106. 45
103. 36 108. 06
100. 62 101.64
96.37 107. 71
90.60 108. 63
93.30 111.08
106. 30 110. 77
97.85 112. 17
105.90 113.40
106. 55 114. 25
107. 76 115.18
107. 87 110.80
(3)
(3)

(3)
(»)
(3)
(3)
(3)
3
3
(8)
(3)
(3)
$27. 72
(3)
(3)
26.11
(3)
()
26.37
(3)
()
3
3
26.76
(3)
(3)
28.41
()
(3)
$30. 03
29.87
(3)
31.74 * 29. 54
()
29.82
$31. 90
32.14
32.47
30.45
32.67
32.51
34.03
32.88
39.34
35. 52
34.14
41.49
39. 37
36.45
42.26
46.36
38.54
43.94
46.32 s 40. 12
47.73
44.29
50.00
51.99
44. 77
55.03
60.11
48.92
55.58
57. 55
62.36
51.78
60.36
64.14
54. 38
64.31
58.26
70.93
67.80
74.30
61.22
65. 02
71.69
76. 33
78.74
68.46
73.93
77.14
82.12
72.07
73.47
81.20
88.40
94.24
84.42
76.05
101. 09
78.72
87.02
82.81
93.08
73.92
82.81
94.53
74.88
83.01
89.98
74.30
92.82
74.69
82.80
83.81
94.55
75.66
93.07
76.44
85.03
85.24
95.42
76.63
85.24
75.47
95.60
93.71
86.05
75.66
94.95
77.22
85.63
98.16
85.60
79.20
97.92
86.46
77.59
85.41
76.38
99.01
101. 26
85.57
76.78
96.24
85.79
76.36
85.14
98.95
76.53
100.12
77.11
86.40
87.42
78.31
101. 19
103. 28
79.31
88.26
87.64
100. 94
79.90
81.12
103. 39
88.66
103. 52
81.51
87. 85
87.82
82.37
(3)
(3)
(3)
(3)
(3)

(3)
3
(3)
(3)
(3)
()
(3)
3
(3)
(3)
(3)
()
$23. 14
23.50
24.42
25.73
27.36
29. 53
31.55
36.35
40.66
43.85
45.93
47.63
50.65
52.67
54.88
56.70
58.50
60.60
62.48
64.60
61.50
61.34
61.18
61.40
62.32
63.41
64.46
64.08
63.63
62.79
62.25
62.43
63.50
63.50
63.13
63.50
63.88
64.94
66.18
66.18
64.98
64.81
64.64
(3)

Laundries

(3)
(3)
3
(3)
(3)
()
$14. 89
15.42
16.14
16.83
17.22
17.64
17.93
18.69
20.34
23.08
25.95
27.73
30.20
32.71
34.23
34.98
35.47
37.81
38.63
39.69
40.10
40.70
42.32
43.27
44.41
42.59
42.59
42.69
43.20
43.93
44.04
43.38
43.34
43.96
43.73
43.29
43.85
43.68
43.23
43.68
44.30
44. 75
45.37
45.26
44.80
44.80
44.92
44.35
(»)

1
Averages are based upon monthly data (exclusive of switching and terminal companies) summarized in
the M-300 report by the ICC and relate to all employees who received pay during the month, except executives, officials, and staff assistants (ICC group I). Beginning September 1949, data reflect a wage rate
increase and reduction in the basic workweek from 48 to 40 hours.
2
Prior to April 1945, data relate to all employees except executives; from April 1945 to May 1949, mainly to
employees subject to the Fair Labor Standards Act; and beginning June 1949, to nonsupervisory employees
only.
3
Not available.
4
Data beginning with January of year noted are not comparable with those for earlier periods.
5
Nine-month average, April throughi December, because of new series started in April 1945.
Dec "
*
"
'
"
9
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 1958 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.




168

TABLE D-26.—Average weekly hours and hourly earnings, gross and excluding overtime, in
manufacturing industries, 1939-58
All manufacturing
industries

Period

Average
weekly
hours

Gross

37.7

1940
1941
1942...
1943
1944

0)
0)
0)
0)
0)
43.4 0)
40.4 0)

0)

38.1
40.6
42.9
44.9
45.2

1945
1946
1947
1948
1949

40.4
40.1
39.2

1950
1951
1952..
1953
1954

Average
hourly
earnings

Average
weekly
hours

Average
hourly
earnings

Nondurable goods manufacturing industries
Average
weekly
hours

Average
hourly
earnings

ExExExExExExcludcludcludcludcludcluding Gross ing Gross ing Gross ing Gross ing Gross ing
overoveroveroveroverovertime
time
time
time
time
time

1939

_

Durable goods manufacturing industries

$0. 633

0)

.661 0)
.729 $0. 702
.853 .805
.961 .894
1.019
.947

39.3
42.1
45.1
46.6
46.6

0)
0)
0)
0)
0)
0)

38.0

0)

37.4

0)

.724 0)
.808 $0. 770
.947 .881
1.059 .976
1.117 1.029

37.0
38.9
40.3
42.5
43.1

0)
0)
0)
0)
0)

$0. 698

$0. 582

0)

.602 0)
.640 $0. 625
.723 .698
.803 .763
.861 .814

0)

0)
0)

.023
.086
.237
.350
.401

2.963
1.051
1.198
1.310
1.367

44.1
40.2
40.6
40.5
39.5

0)
0)
0)
0)
0)

1.111 21.042
1.156 1.122
1.292 1.250
1.410 1.366
1.469 1.434

42.3
40.5
40.1
39.6
38.8

0)
0)
0)
0)
0)

.904
1.015
1.171
1.278
1.325

2.858
.981
1.133
1.241
1.292

40.5
40.7
40.7
40.5
39.7

0)
0)
0)
0)
0)

.465
.59
.67
.77
.81

.415
.53
.61
.71
.76

41.2
41.6
41.5
41.3
40.2

0)
0)
0)
0)
(0

1. 537
1.67
1.77
1.87
1.92

1.480
1.60
1.70
1.80
1.86

39.7
39.5
39.6
39.5
39.0

(0
(0
0)
0)
0)

1.378
1.48
1.54
1.61
1.66

.337
.43
.49
.56
.61

1955
1956
1957
19583

40.7
40.4
39.8
39.2

0)
37.6
37.4
37.2

1.88
1.98
2.07
2.13

.82
.91
2.01
2.07

41.4
41.1
40.3
39.5

0)
38.1
37.9
37.6

2.01
2.10
2.20
2.28

1.93
2.03
2.14
2.22

39.8
39.5
39.1
38.8

0)
37.0
36.7
36.6

1.71
1.80
1.88
1.94

.66
.75
.83
.89

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
2.06
2.06
2.07

1.98
1.99
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
38.1
38.1

2.18
2.17
2.18
2.18
2.18
2.19

2.10
2.11
2.11
2.12
2.12
2.13

39.1
39.2
39.1
38.8
38.9
39.2

36.8
36.9
36.8
36.6
36.7
36.8

1.86
1.86
1.87
1.87
1.88
1.89

.81
.81
.81
.82
.83
.83

39.8
40.0
39.9
39.5
39.3
39.4

37.4
37.6
37.4
37.2
37.0
37.4

2.07
2.07
2.08
2.09
2.11
2.10

2.01
2.01
2.02
2.03
2.05
2.05

40.0
40.3
40.2
39.8
39.7
39.7

37.7
38.0
37.7
37.5
37.5
37.8

2.20
2.21
2.22
2.23
2.24
2.24

2.14
2.14
2.16
2.17
2.18
2.19

39.4
39.5
39.6
39.0
38.8
39.0

36.9
37.0
37.0
36.6
36.4
36.8

1.89
1.88
1.90
1.90
1.91
1.92

.83
.82
.83
.84
.86
.86

June

38.7
38.4
38.6
38.3
38.7
39.2

37.0
36.8
37.0
36.8
37. Oj
37.3

2.11
2.10
2.11
2.11
2.12
2.12

2.06
2.06
2.07
2.07
2.07
2.07

38.9
38.6
39.0
38.8
39.1
39.6

37.3
37.1
37.5
37.4
37.6
37.9

2.24
2.24
2.25
2.25
2.26
2.27

2.20
2.20
2.21
2.21
2.21
2.22

38.3
38.1
38.1
37.7
38.1
38.7

36.4
36.2
36.2
36.0
36.2
36.6

1.92
1.92
1.93
1.94
1.94
1.94

.88
.87
.88
.89
.89
.89

July
August .
September
October
November 3
December 3

39.2
39.6
39 9
39.8
39.9
40.2

37.3
37.3
37.5
37.4

2.13
2.13
2.14
2.14
3 7 . 4 ; 2.17
37.5J 2.19

2.08
2.07
2.08
2.08
2.11

39.4
39.8
40.2
40.1
40.3
40.7

37.6
37.7
37.9
37.7
37.8
38.0

2.28
2.29
2.30
2.29
2.33
2.35

2.23
2.23
2.24
2.23
2.26

39.0
39.4
39.5
39.4
39.4
39.6

36.8
37.0
36.9
36.9
36.9
37.0

1.94
1.93
1.95
1.95
1.96
1.97

.89
.88
.89
.89
.90
0)

July
August
September
October.. _

November
December

1958: January
February
March. .
April

May

0)

0)

1 Not available.
Eleven-month average; August 1945 excluded because of VJ Day holiday period.
Preliminary.
NOTE.—Data relate to production workers and are for payroll periods ending nearest the 15th of the
month.
The annual figures for 1958 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.
2
3




169

TABLE D-27.—Average weekly earnings, gross and net spendable, in manufacturing industries,
in current and 7958 prices, 1939-58
Average net spendable weekly earnings 2
Average gross weekly
earnings
Period
Current
prices
1939-.

1958
prices 1

Worker with no
dependents
Current
prices

1958
prices 1

Worker with three
dependents
Current
prices

1958
prices 1

$23. 86

$49.60

$23.58

$49. 02

$23.62

$49.11

1940
1941
1942
1943
1944

25.20
29.58
36.65
43.14
46.08

51.96
58.00
64.87
71.90
75.67

24.69
28.05
31.77
36.01
38.29

50.91
55.00
56.23
60.02
62.87

24.95
29.28
36.28
41.39
44.06

51.44
57.41
64.21
68.98
72.35

1945
1946
1947
1948
1949 .

44.39
43.82
49.97
54.14
54.92

71.25
64.82
64.56
64.99
66.57

36.97
37.72
42.76
47.43
48.09

59.34
55.80
55.25
56.94
58.29

42.74
43.20
48.24
53.17
53.83

68.60
63.91
62.33
63.83
65.25

1950
1951. _ 1952
1953
1954

59.33
64.71
67.97
71.69
71.86

71.22
71.90
73.88
77 34
77.27

51.09
54.04
55.66
58.54
59.55

61.33
60.04
60.50
63.15
64.03

57.21
61.28
63.62
66.58
66.78

68.68
68.09
69.15
71.82
71.81

76.52
79.99
82 39
83.50

82.46
84.92
84.59
83.50

63.15
65.86
67.57
68.46

68.05
69.92
69.37
68.46

70.45
73.22
74.97
75.88

75.92
77.73
76.97
75.88

June

82.41
82.41
82.21
81.99
81.78
82.80

86.02
85.67
85.28
84.79
84.40
85.01

67.58
67.58
67.42
67.25
67.08
67.90

70.54
70.25
69.94
69.54
69.23
69.71

74.99
74.99
74.82
74.64
74.47
75.31

78.28
77.95
77.61
77.19
76. 85
77.32

July
August
September.
October
November
December .

82.39
82.80
82.99
82.56
82.92
82.74

84.16
84.40
84.60
84.16
84.18
84.00

67.57
67.90
68.05
67.70
67.99
67.85

69.02
69.22
69.37
69.01
69.03
68.88

74.97
75.31
75.46
75.11
75.40
75.26

76.58
76.77
76.92
76.56
76.55
76.41

81.66
80.64
81.45
80.81
82.04
83.10

82.40
81.21
81.53
80.73
81.88
82.93

66.98
66.17
66.81
66.30
67.29
68.14

67.59
66.64
66.88
66.23
67.16
68.00

74.37
73.54
74.20
73.67
74.68
75.55

75.05
74.06
74.27
73.60
74.53
75.40

83.50
84.35
85.39
85. 17
86.58
88.04

83.17
84.18
85. 22
85.00
86.24
(4)

68.46
69.14
69.97
69.80
70.93
72.10

68.19
69.00
69.83
69.66
70.65
(4)

75.88
76.58
77.43
77.25
78.41
79.60

75.58
76.43
77.28
77. 10
78.10
(4)

1955..1956
1957
1958

.

3

1957: January
February
March.. ... _ _ _ _ _
April
May

1958: January
February
March
April. .
May
June. .
July
August
September
October
November 3
December 3

.__
.
___

1
Estimates in current prices divided by the consumer price index on a 1958 base (using 11-month average).
- Average gross weekly earnings less social security and income taxes.
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 1958 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.




170

TABLE D-28.—Labor turnover rates in manufacturing industries, 7930-58
[Rates per 100 employees]
Separation rates
Period
Total

1930
1931
1932
1933
1934

5.0
4.0
4.4
3.8
4.1

1935
1936.
1937
1938
1939

3.6
3.4
4.4
4.1
3.1

1940
1941...
1942
1943
1944...

Quit i

Layoff

Discharge,
military,
and miscellaneous i

Accession
rates

3.0
2.9
3.5
2.7
3.0

.2
.2
.2
.2

3.1
3.1
3.3
5.4
4.7

.9
1.1
1.3
.6

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

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

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

4.4
4.4
4.4
3.9
3.0

1955
1956
1957
19582

3.3
3.5
3.6
3.6

1.6
1.6
1.4

1.2
1.5
1.7
2.4

3.7
3.4
2.9
3.1

1957: January
February
March
April
May
June

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

3.2
2.8
2.8
2.8
3.0
3.9

3.1
4.0
4.4
4.0
4.0
3.8

1.4
1.9
2.2
1.3

1.3
1.6
1.8
2.3
2.7
2.7

3.2
3.2
3.3
2.9
2.2
1.7

3.8
2.9
3.2
3.0
2.4
1.8

2.5
2.2
2.4
2.5
3.0
3.8

2.0
1.9
1.6
1.7
1.6

3.3
3.9
4.0
3.4
2.7

July
August
September...
October
November. _.
December
1958: January
February
March
April
May
June
July
August
September...
October
Novembers..

5.0
3.9
4.2
4.1
3.6
2.9
3.2
3.5
3.5
3.2
2.7

1.2
1.5
1.1

1 Prior to 1940, military and miscellaneous separations are included with quits.
2 January-November average.
3 Preliminary.
NOTE.—Detail will not necessarily add to total because of rounding.
Source: Department of Labor.




171

PRODUCTION AND BUSINESS ACTIVITY
TABLE D-29.—Industrial production indexes, 1929-58
[1947-49=100]
Industrial production
Manufactures
Durable
Period

1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958 i

Total

59
49
40
31
37
40
47
56
61
48
58
67
87
106
127
125
107
90
100
104
97
112
120
124
134
125
139
143
143
134

Pri- Fabricated
Total
Total mary metal
met- prodals
ucts

58
48
39
30
36
39
46
55
60
46
57
66
88
110
133
130
110
90
100
103
97
113
121
125
136
127
140
144
145
136

60
45
31
19
24
30
38
49
55
35
49
63
91
126
162
159
123
86
101
104
95
116
128
136
153
137
155
159
160
142

103
107
90
115
126
116
132
108
140
138
131
104

103
104
93
115
122
121
136
123
134
135
139
128

Nonelectrical
machinery

104
106
90
105
126
136
143
125
135
153
150
128

FurClay, niture
Elec- Trans- Instru- glass, and
ments
trical porta- and re- and misceltion lated lum- lanemachin- equip- prod- ber
ous
ery
ment ucts prod- manucts ufactures

101
101
98
131
138
167
194
177
194
207
204
179

96
102
102
120
135
154
189
175
203
199
213
188

100
105
95
114
128
142
155
140
149
166
172
164

100
105
95
115
121
118
125
123
138
140
133
129

100
104
95
117
116
118
131
121
132
135
132
127

Seasonally adjusted
1957: January
February ..
March
April
May
„.
June

145
146
145
144
144
145

147
147
147
145
145
147

163
164
163
160
160
163

143
143
137
134
132
132

137
138
138
138
138
139

154
155
155
152
152
153

206
206
204
196
199
207

218
222
219
216
216
220

173
174
173
172
173
173

133
134
134
134
136
140

131
129
132
132
132
133

July
August
September
October
November
December

145
145
144
142
139
135

147
147
146
143
141
137

162
163
160
156
154
146

134
136
131
128
121
107

141
140
139
137
141
135

152
151
150
148
143
137

215
215
209
197
203
194

216
216
212
208
203
194

173
174
173
170
170
168

133
136
134
131
128
124

133
135
135
132
129
125

1958' January
February ..
March
April
May
June. ... _ .

133
130
128
126
128
132

135
131
129
128
130
134

142
137
135
131
134
139

100
95
91
86
91
103

129
124
122
118
120
125

130
127
126
122
122
125

192
177
170
166
167
171

191
185
183
178
182
185

166
163
160
159
158
160

125
120
120
120
124
129

123
120
121
121
122
126

July
August
September
October
November
December '

134
136
137
138
141
142

136
138
139
140
144
144

141
144
145
146
152
152

102
109
113
122
123
123

129
132
135
133
136
137

125
126
129
130
133
133

181
188
186
180
182
189

185
186
178
183
205
203

162
162
166
169
172
175

134
135
136
133
138
137

129
130
132
134
134
132

See footnotes at end of table, p. 173.




172

TABLE D-29.—Industrial production indexes, 1929-58—Continued
[1947-49=100]
._

Industrial production

j Output of consumer durables

Manufactures
Nondurable
Period

ChemTex- Rub- Paper ical Foods, Minber
tiles
and bever- erals
and
and
Total and leather print- petro- ages,
leum and toapparel prod- ing
prod- bacco
ucts
ucts

1929

56

68

1930
1931
1932
1933
1934

51
48
42
48
49

59
51
42
48
51

1935
1936
1937
1938
1939

55
61
64
57
66

55
63
71
62
68

1940
1941
1942
1943
1944

69
84
93
103
99

Major Other
conTotal Autos house- sumer
hold duragoods bles

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

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
1957
1958 '

126
129
130
130

109
108
105
104

122
117
118
113

137
145
148
148

159
167
172
170

109
112
112
115

122
129
128
117

147
131
130
113

190
138
146
101

144
144
132
(2)

106
111
111
110

1957: January
February
March
April
May.
Tune

130
131
131
130
131
131

105
105
106
106
106
106

118
121
124
118
118
119

148
147
147
146
148
148

173
172
171
171
173
172

111
113
114
111
112
113

131
132
132
131
130
127

132
135
132
123
126
134

154
156
149
136
144
157

130
135
132
123
127
134

113
114
114
110
109
110

131
132
131
130
128
127

107
106
106
104
101
97

119
122
120
117
116
108

146
149
149
149
149
146

174
175
174
173
171
169

113
112
113
111
110
113

128 1
129
129
127
123
123

132
135
134
129
128
119

147
154
150
143
142
127

138
139
137
134
134
124

111
112
114
112
110
107

127
125
124
125
126
129

97
97
95
98
99
102

108
105
106
102
104
111

146
144
142
143
143
146

168
164
163
164
165
168

114
114
113
113
114
116

121
118
112
109
109
112

113
110
104
97
105
111

117
107
92
81
96
99

118
117
114
107
113
123

105
107
108
106
105
111

132
133
133
134
135
136

107
108
109
110
112
112

114
116
119
119
125
125

148
150
150
153
152
153

171
174
174
175
176
178

116
116
116
116
116
116

116
120
123
122
123
123

114
115
103
108
134
137

99
95
56
67
.139
143

133
137
138
141
150
(2)

111
112
113
114
114
116

1950
1951
1952
1953
1954

_. . .
.

Seasonally adjusted

July.
August -_.September
October
.
November
December
1958: January . .
.
February
March
April._
May _ .
June
July
August
September
October
November _.
December '
1

Preliminary.
2 Xot available.
NOTE.—Detail not available prior to 1947.
Source: Board of Governors of the Federal Reserve System.




173

TABLE D—30.—Business expenditures for new plant and equipment, 1939 and 1945-59
[Billions of dollars]
Manufactur ing
Total i

Period

Total

Transportation

Dura- Non- Mining
ble durable
goods goods

Railroad

Other

Public
utilities

Commercial
and
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
36.96
30.53

11.44
14.95
15.96
11.50

5.44
7.62
8.02
5.54

6.00
7.33
7.94
5.96

.96
1.24
1.24
.92

.92
1.23
1.40
.76

1.60
1.71
1.77
1.50

4.31
4.90
6.20
6.10

9.47
11.05
10.40
9.74

1950
1951
1952
1953
1954
1955
1956 3
1957 3 4
1958 3

.

-

Seasonally adjusted annual rates
1956' First quarter
Second quarter
Third quarter
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

1957- First quarter
Second quarter
Third quarter
Fourth quarter

36.89
37.03
37.75
36.23

16.12
16.25
16.37
15.27

8.09
8.31
8.23
7.57

8.03
7.948.14
7.70

1.35
1.28
1.24
1.15

1.42
1.35
1.54
1.26

1.52
1.82
1.81
1.91

5.72
5.93
6.64
6.43

10.76
10.40
10.15
10.21

32.41
30.32
29.61
29.93

13.20
11.53
10.86
10.79

6.58
5.57
5.16
5.11

6.62
5.96
5.70
5.68

1.00
.92
.88
.91

1.02
.77
.63
.59

1.69
1.40
1.29
1.64

5.87
5.97
6.10
6.32

9.63
9.73
9.85
9.68

30. 51

11.06

5.35

5.71

.84

.54

1.72

6.41

9.94

1958' First quarter
.Second quarter
Third quarter 4
Fourth quarter
1959: First quarter *

..

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 adjusted figures. See footnote 4.
4
Estimates for fourth quarter 1958 and first quarter 1959 based on anticipated capital expenditures reported by business between late October and early December 1958. The quarterly anticipations include
adjustments, when necessary, for systematic tendencies in anticipatory data.
NOTE.—These figures do not agree precisely with the plant and equipment expenditures included in the
gross national product estimates of the Department of Commerce. The main difference lies in the inclusion
in the gross national product of investment by farmers, professionals, and institutions, and of certain outlays charged to current account.
This series is not available for years prior to 1939 and for 1940 to 1944.
Detail will not necessarily add to totals because of rounding.
Sources: Securities and Exchange Commission and Department of Commerce.




174

TABLE D-31.—New construction activity, 1929-58
[Value put in place, millions of dollars]
Private construction
Total
new
construction

Period

Resi- Nonresid ential building and other construction
dential
Total i building
Com(nonPublic Otber 3
Total mercial 2 Indusfarm)
trial
utility

Public
construction

1929 .

10. 793

8,307

3, 625

4,682

1,135

949

1.578

1,020

2,486

1930
1931
1932
1933_ .
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

893
454
223
130
173

532
2?1
74
176
191

1,527
946
467
261
326

856
582
282
194
194

2,858
2,659
1,862
1,648
2,211

1935
1936
1937 _. _
1938
1939

4,232
6,497
6, 999
6, 980
8,198

1,999
2,981
3,903
3,560
4,389

1,010
1,565
1,875
1,990
2,680

989
1,416
2,028
1,570
1,709

211
290
387
285
292

158
266
492
232
254

363
518
705
605
683

257
342
444
448
480

2.233
3, 516
3,096
3,420
3,809

8,682
11,957
14, 075
8, 301
5,259

5,054
6,206
3,415
1,979
2,186

2,985
3,510
1,715
885
815

2,069
2.696
1I700
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

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
1,253
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

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

1,288
1,371
1,137
1,791
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

44, 581
46,292
48, 115
48, 980

32, 620
33, 287
33, 988
33, 947

18, 705
17, 677
17, 019
17, 884

13, 915
15, 610
16, 969
16, 063

3,218
3,631
3, 564
3,561

2,399
3,084
3,557
2,443

4,543
5,113
5,624
5, 554

3,755
3, 782
4,224
4,505

11,961
13,005
14, 127
15, 033

1940
1941
1942
1943
1944 ..

_

1945
1946
1947
1948
1949
1950
1951
1952
1953
1954

--- -

_

--_ __

1955
1956
1957
1958 4

Seasonally adjusted annual rates
1957- January
February
March
April
May
June.
Julv
August
September.. _
October
November. __
December
1958: January ..
February
March.
April _
May
June
July
August
September _ _
October
Xovember_ _
December 4 _

48, 204
47, 436
47, 832
47, 700
47, 688
47, 688

33,360
33, 444
33, 720
33, 588
33, 744
33, 732

17, 280
17, 088
17, 088
16, 656
16, 320
16, 476

16, 080
16, 356
16, 632
16, 932
17,424
17, 256

3,504
3, 396
3, 492
3, 528
3, 636
3, 624

3,456
3, 588
3, 672
3,744
3, 780
3, 732

5,112
5,280
5, 316
5, 436
5,772
5, 640

4,008
4,092
4,152
4,224
4, 236
4,260

14, 844
13, 992
14,112
14,112
13, 944
13, 956

46, 860
48, 048
48, 576
49, 584
49, 224
50, 100

33, 588
34, 092
34, 284
34, 776
34. 824
34, 584

16, 596
16, 944
17,184
17, 532
17, 664
17, 532

16,992
17, 148
17, 100
17, 244
17, 160
17, 052

3,504
3,552
3, 576
3. 672
3, 660
3, 648

3, 600
3, 612
3, 480
3, 396
3, 372
3,264

5, 772
5, 688
5,748
5,880
5,820
5, 796

4, 116
4,296
4,296
4,296
4, 308
4,344

13, 272
13, 956
14, 292
14, 808
14, 400
15, 516

48, 816
48, 048
47, 592
46, 572
46, 548
47, 148

33,960
33, 552
33, 084
32, 388
32, 352
32, 700

17, 340
17, 220
16, 764
16, 212
16, 176
16, 632

16,620
16, 332
16, 320
16, 176
16, 176
16, 068

3, 456
3, 372
3, 456
3, 528
3, 624
3,732

3, 228
3, 024
2, 880
2, 664
2,520
2, 340

5, 628
5, 592
5, 652
5, 616
5, 592
5, 508

4,308
4, 344
4,332
4, 368
4, 440
4,488

14, 856
14, 496
14, 508
14, 184
14, 196
14, 448

47, 772
48, 492
49, 428
51, 348
52, 536
53, 676

33,120
33, 588
34, 164
35, 328
36, 180
36, 588

17, 208
17,952
18, 480
19, 476
20,184
20, 580

15,912
15, 636
15, 684
15,852
15, 996
16, 008

3, 696
3,528
3, 492
3. 552
3, 624
3, 660

2,244
2,148
2,064
2, 064
2, 100
2,076

5, 436
5,436
5,520
5, 568
5,568
5, 604

4, 536
4,524
4,608
4, 668
4, 704
4, 668

14, 652
14, 904
15, 264
16, 020
16,356
17,088

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 D-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.




175

TABLE D-32.—New public construction activity, 1929-58
[Value put in place, millions of dollars]
Total new public construction *

Major types of new public construction

Fed eral

Period

All
State
and
public
sources Direct Federal local
aid

Highway

Sewer
Conand
Hoswater servapital
tion
Educa- and
and
tional institu- miscel- and
detional laneous veloppublic ment
service

Military
facilities

All
other
public 2

1929

2,486

155

80

2,251

1,266

389

101

404

115

19

192

1930
1931
1932
1933
1934

2,858
2,659
1,862
1,648
2,211

209
271
333
516
626

104
235
111
286
721

2,545
2,153
1,418
846
864

1,516
1,355
958
847
1,000

364
285
130
52
148

118
110
83
49
51

500
479
291
160
228

137
156
150
359
518

29
40
34
36
47

194
234
216
145
219

1935
1936
1937
1938
1939

2,233
3,516
3,096
3,420
3,809

814
797
776
717
759

567
1,566
1,117
1,320
1,377

852
1,153
1,203
1,383
1,673

845
1,362
1,226
1,421
1,381

153
366
253
311
468

38
74
73
97
127

246
509
445
492
507

700
658
605
551
570

37
29
37
62
125

214
518
457
486
631

1940
1941
1942
1943
1944

3,628
5,751
10, 660
6,322
3,073

1,182
3,751
9,313
5,609
2,505

946
697
475
268
126

1,500
1,303
872
445
442

1,302
1,066
734
446
362

156
158
128
63
41

54
42
35
44
58

469
393
254
156
125

528
500
357
285
163

385
1,620
5,016
2,550
837

734
1,972
4,136
2,778
1,487

1945
1946
1947
1948
1949

2,398
2.362
3,434
4,827
6,404

1,737
870
840
1,177
1,488

99
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
934

85
85
85
223
477

152
278
492
699
803

130
260
424
670
852

690
188
204
158
137

884
555
491
685
1,070

1950
1951
1952
1953
1954

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
19583

11, 961
13, 005
14, 127
15, 033

2,800
2,772
3,018
3,152

758
878
1,363
2,168

8,403
9,355
9,746
9,713

4,050
4,655
4,971
5,350

2,442
2, 556
2, 825
2,877

322
298
350
401

1,318
1,659
1,737
1,838

701
826
971
1,004

1,313
1, 395
1,322
1,235

1,815
1,616
1,951
2,328

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.




176

TABLE D-33.—Housing starts and applications for financing, 1929-58
[Thousands of units]
Proposed home
construction 2

New nonfarm housing starts
Privately financed

Period
Total

Publicly
financed

Government programs
Total
Total i

19293

1930
1931
1932
1933
1934. -

.

..

...

509.0

__

VA

509 0

330.0
254.0
134 0
93.0
126. 0

FHAi

Private,
seasonFHA
ally ad- applica- VA appraisal
justed
tions requests
annual
rates

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

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
988.8

5
(5)
( 5)
(5)
( 5)
()

41.2
69.0
229.0
294.1
363.8

1950
1951
1952
1953
1954
1955
1956
1957 7
1958
1957' January
February
March.
April
May
.Tune
July
August
September _. .
October
November
December
1958: January-- _. . February
March
April
May
June
July
August. .
September
October
November
December < _

1, 396. 0
1, 091. 3
1, 127. 0
1, 103. 8
1,220.4
1, 328. 9
1,118.1
1,041.9
1, 197. 7
64.2
65.8
87.0
93.7
103. 0
99.9
97.8
100. 0
91.9
97.0
78.2
63.4
67.9
66. 1
81.4
99.1
108. 5
112.9
112.8
124.0
121.0
' 111.0
" 102. 0
91.0

43.8
71.2
58.5
35.5
18.7
19.4
24 2
49.' 1
67.1
4. 1
2.7
7.7
2.3
6.1
5.4
3.9
3.2
1.7
8.6
2.5
.9
5.0
5.1
4.1
4.9
7.2
11.6
4.2
9.4
10.1
•2.0
'2.0
1.5

1940
1941
1942
1943
1944

.

_. _ _

1, 352. 2
1, 020. 1
1,068.5
1, 068. 3
1, 201. 7
1, 309. 5
1, 093. 9
992.8
1,130.6
60.1
63.1
79.3
91.4
96.9
94.5
93.9
96.8
90.2
88.4
75.7
62.5
62.9
61.0
77.3
94.2
! 101.3
101. 3
108.6
114.6
110.9
7
109. 0
7
100. 0
89.5

686.7
412.2
421.2
408.5
583.3
669.6
460.0
296.7
397.6
19.7
19.2
22.7
25.6
27.0
28.3
28.0
29.3
28.2
28.4
21.4
18.9
17.4
14.1
19.6
27.4
32.0
36. 5
40.3
43.6
46.3
49.4
36.8
34.2

56.6
121.7
286.4
293.2
327.0

(5)
(5)
(5)
(5)
(5)

486.7 6 200. 0
263.5
148.6
279.9
141.3
156.5
252. 0
276. 3
307.0
276. 7
392.9
189.3
270.7
168.4
128.3
295.4
102.2
7.7
12.0
9.3
9.9
11.3
11.4
12.1
13.5
14.9
12.0
15.3
13.0
15.7
12.3
17.7
11.6
16.4
11.8
18.7
9.7
6.4
15.0
14.2
4.6
13.3
4. 1
11.3
2.8
16.5
3. 1
22.7
4.8
26.0
6.0
8.5
28.0
10.6
29.7
30.5
13.1
31.9
14.3
34.7
14.7
25.8
11.0
9.2
25.0

962
935
933
962
994
995
1,015
1,056
1,012
1,020
1,009
1,000
1,020
915
918
983
1,039
1,057
1,174
1,228
1,255
7
1,260
' 1,330
1,430

(5)
(5)
(5)
(5)
(5)

397.7
192.8
267.9
253.7
338.6
306.2
197.7
198.8
341.7
10.5
12.1
16.2
16.8
16.9
16.6
18.4
22.3
20.4
20.2
14.7
13.6
17.3
20.6
25.0
31.6
34.6
33.4
31.8
33.6
36.8
31.8
22.3
23.0

(5)
164.4
226.3
251.4
535.4
620.8
401. 5
159.4
234.2
18.9
20.2
19.5
19.4
16.6
13.7
14.0
14.5
8.9
6.4
3.7
3.5
5.2
5.3
8.4
24. g
29.5
28.4
28. t
28.,
26.'
19.1

is.:
14. i

1
Excludes armed forces housing in 1956 (2,567 units); 1957 (18,573 units); and 1958 (23,744 units).
2
Units in mortgage applications for new home construction.
3 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.
4
FHA program approved in June 1934; all 1934 activity included in 1935.
5
Not available.
6
Partly estimated.
7 Preliminary.
Sources: Department of Labor, Federal Housing Administration (FHA), and Veterans Administration (VA).




TABLE D-34.—Sales and inventories in manufacturing and trade., 1939-58
[Amounts in billions of dollars]
Total manufacturing and trade 1

M anuf actur ing

Wholesale trade

J

Retail trade '

Period
2 InvenSales2 Inven- Ratio* Sales 2 Inven- Ratio* Sales 2 Inven- Ratio* Sales tories 3 Ratio 4
tories 3
tories 3
tories 3

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

1.72
1.58
.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
1.43
1.31

1945
1946
1947
1948
1949

23.9
27.2
33.2
- - 36.1
34.5

30.9
42.9
50.5
55.4
51.8

.30
.33
.43
.48
.56

12.9
12.6
15.9
17.6
16.4

18.4
24.5
28.9
31.7
28.9

1.48
1.66
1.71
1.72
1.86

4.5
6.0
7.3
7.5
7.2

4.6
6.6
7.6
7.9
7.6

.91
.90
1.01
1.01
1.07

6.5
8.5
10.0
10.9
10.9

7.9
11.9
14.1
15.8
15.3

1.21
1.13
1.27
1.40
1.43

1950
1951
1952
1953
1954

39.7
44.7
45.9
48.4
47.4

62.8
73.8
75.4
78.6
75.5

.39
.58
.61
.61
.62

19.3
22.3
22.8
24.5
23.5

34.3
42.8
43.8
45.4
43.0

1.57
1.77
1.90
1.84
1.86

8.4
9.4
9.6
9.8
9.7

9.1
9.7
10.0
10.5
10.4

.96
1.05
1.01
1.06
1.07

12.0
13.0
13.5
14.1
14.1

19.3
21.2
21.6
22.7
22.1

1.40
1.65
1.55
1.59
1.59

1955
1956
1957 5 6
1958

52.3
54.8
56.3
53.8

81.7
89.1
90.7
85.1

.49
.56
1.61
1.61

26.3
27.7
28.4
26.2

46.4
52.3
53.5
49.3

1.68
1.79
1.89
1.93

10.6
11.3
11.3
11.0

11.4
13.0
12.7
12.1

1.02
1.08
1.13
1.11

15.3
15.8
16.7
16.6

23.9
23.9
24.5
23.7

1.50
1.50
1.44
1.46

Seasonally adjusted
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

1.54
1.56
1.60
1.59
1.59
1.61

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
November..
December. _.

57.4
57.0
56.3
55.7
54.7
54.5

91.0
91.3
91.3
91.1
91.0
90.7

1.58
1.60
1.62
1.64
1.66
1.67

29.0
28.6
28.2
28.1
27.2
26.7

54.1
54.2
54.2
54.1
53.9
53.5

1.86
1.89
1.92
1.93
1.98
2.01

11.4
11.4
11.2
11.0
10.9
10.9

12.7
12.8
12.8
12.8
12.8
12.7

1.12
1.12
1. 15
1.17
1.17
1.17

17.0
17.0
16.9
16.7
16.6
16.8

24.1
24.3
24.4
24.2
24.3
24.5

1.42
1.42
1.44
1.45
1.47
1.45

1958: January
February. _.
March
April
May
June

53.8
52.1
51.3
52.1
52.4
53.2

90.0
89.3
88.5
87.6
86.9
86.4

1.68
1.72
1.73
1.69
1.66
1.63

26.4
25.5
24.9
24.9
25.2
25.7

52.9
52.4
52.0
51.5
50.9
50.2

2.02
2.06
2.09
2.07
2.03
1.96

10.7
10.5
10.3
10.7
10.7
10.9

12.6
12.5
12.4
12.2
12.1
12.1

1.18
1.20
1.21
1.15
1.14
1.11

16.7
16.1
16.1
16.5
16.6
16.6

24.5
24.3
24.1
23.9
23.9
24.1

1.46
1.51
1.51
1.46
1.44
1.45

54.0
54.4
54.8
55.6
56.2

85.9
85.4
85.0
84.9
85.1

1.60
1.58
1.56
1.53
1.51

26.3
26.4
26.8
27.2
27.6

49.8
49.4
49.3
49.3
49.3

1.90
1.88
1.84
1.82
1.79

11.0
11.1
11.4
11.5
11.6

12.1
12.1
12.1
12.1
12.1

1.10
1.09
1.06
1.05
1.04

16.7
16.9
16.6
16.9
17.0
17.5

24.0
23.9
23.7
23.5
23.7

1.44
1.42
1.44
1.39
1.39

July
August
September. .
October 6
November
December 6.

1 '
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 cf estimation adopted by the Bureau of the Census.
2
Monthly average shown for year and total for month.
3
Seasonally adjusted, end of period.
nd of
4
Inventory/sales ratio. For annual periods, ratio of weighted average inventories to average monthly
sales; for monthly data, ratio of aveiage end of current and previous months' inventories to sales for month.
5
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.




178

TABLE D-35.—Manufacturers' sales, inventories, and orders, 1939-58
[Billions of dollars]
Inventories 2

Sales i

Period

New orders

l

UnDurable-goods
Nondurable-goods
filled
industries
industries
Dura- NonDura- Non- orders
ble durable
ble durable (unadgoods goods
Total goods goods
justPur.Purindus- indus- chased Gbods Fin- chased Goods Finindus- indus- ed) 3
in
ished
tries
tries mateished matein
tries
tries
rials process goods rials process goods

1939

1.9

3.2

1.8

1.5

2.1

2.4

0.8

2.9

5.4

2.2

3.2

7.0

1940
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

.9
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
1958 ^ s

13.1
13.8
14.2
12.4

13.3
13.9
14.2
13.8

7.4
8.7
8.3
7.7

11.1
12.8
12.7
11.3

8.2
9.2
10.1
8.9

8.1
8.5
8.8
8.6

2.8
3.0
3.1
2.9

8.8
10.1
10.5
9.9

27.2
28.3
27.3
26.0

13.9
14.4
13.1
12.1

13.3
13.9
14.2
13.9

56.9
64.2
50.7
46.4

Seasonally adjusted

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

Julv
August
September. _
October
November, _
December- _

14.6
14.3
14. 1
13.9
13.5
13.1

14.5
14.3
14.1
14.1
13.7
13.6

8.4
8.4
8.5
8.6
8.6
8.3

13.5
13.6
13.4
13.2
13.1
12.7

9.8
9.8
9.8
9.9
9.8
10.1

9.0
9.0
8.9
8.9
8.9
8.8

2.9
3.0
2.9
3.0
3.0
3.1

10.5
10.5
10.5
10.4
10.4
10.5

27.3
27.3
26.6
26.2
26.0
25.1

13.0
13.2
12.5
12.2
12.4
11.4

14.3
14.2
14.0
14.1
13.7
13.7

59.3
57.8
56. 0
53.2
52.0
50.7

12.6
12.0
11.7
11.5
11.6
12.1

13.7
13.5
13.3
13.4
13.6
13.7

8.3
8.3
8.1
8.0
7.8
7.6

12.4
12.1
11.9
11.8
11.6
11.4

9.9
9.9
9.8
9.7
9.6
9.5

8.8
8.8
8.8
8.8
8.8
8.8

3.0
3.0
2.9
2.9
2.9
2.9

10.5
10.4
10.4
10.4
10.2
10.0

24.4
24.1
24.8
24.5
25.0
25.8

10.7
10.7
11.5
10.8
11.4
12.2

13.7
13.4
13.3
13.7
13.6
13.5

49.1
47.8
47.5
46.5
46.1
46.4

12.3
12.4
12.7
12.9
13.4

14.0
14.0
14.1
14.2
14.2

7.5
7.4
7.5
7.7
7.7

11.3
11.3
11.3
11.3
11.3

9.5
9.3
9.2
9.0
8.9

8.8
8.7
8.6
8.7
8.6

2.9
3.0
2.9
2.9
2.9

9.8
9.7
9.7
9.8
9.9

26.4
26.1
27.0
27.9
27.9

12.5
12.2
12.9
13.5
13.7

13.9
13.9
14.2
14.4
14.2

46.7
46.7
46.2
46.1
46.4

1958:
January
February
March _
April
May
June
July
August
September..
October
November 5_
1
2
3
4
5

Monthly average shown for year and total for month.
Book value, seasonally adjusted, end of period.
End of period.
Based on data through November.
Preliminary.

NOTE.—Seo Table D-34 for total sales and inventories of manufacturers.
Source: Department of Commerce.




179

PRICES
TABLE D-36.—Wholesale price indexes, 1929-58
[1947-49=100] i
All commodities other than farm products
and foods
All
commodities

Period

Processed
foods

Total

Textile
products
and
apparel

Chemi- Rubber
cals
and
and
rubber
allied
prodproducts
ucts

Lumber
and
wood
products

61.9

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

- - -

-

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

.

1958: January
February
March
April
May
June
July
August _
September
October
November3
December

.

(2)

83.5

31.9

49.3
36.2
26.9
28.7
36.5

53.3
44.8
36.5
36.3
42.6

60.9
53.6
50.2
50.9
56.0

57.1
47.1
39.0
46.0
51.8

(2)
2
(2)
()
51.2
53.7

73.0
62.0
53.8
56.8
65.8

29.4
23.8
20.3
24.2
28.5

52.0
52.5
56.1
51.1
50.1

44.0
45.2
48.3
38.3
36.5

52.1
50.1
52.4
45.6
43.3

55.7
56.9
61.0
58.4
58.1

50.4
50.8
54.2
47.4
49.5

56.0
56.4
59.0
55.9
55.8

66.4
71.7
84.4
82.7
86.3

27.4
28.7
33.7
30.8
31.6

37.8
46.0
59.2
68.5
68.9

43.6
50.5
59.1
61.6
60.4

59.4
63.7
68.3
69.3
70.4

52.4
60.3
68.9
69.2
69.9

56.6
61.6
69.3
69.5
70.2

80.2
86.5
100.6
103.3
102.0

35.2
41.8
45.4
48.0
51.9

71.6
83.2
100.0
107.3
92.8

60.8
77.6
98.2
106.1
95.7

71.3
78.3
95.3
103.4
101.3

71.1
82.6
100.1
104.4
95.5

70.6
76.3
101.4
103.8
94.8

98.9
99.4
99.0
102.1
98.9

52.5
60.3
93.7
107.2
99.2

97.5
113.4
107.0
97.0
95.6

99.8
111.4
108.8
104.6
105.3

105. 0
115.9
113.2
114.0
114.5

99.2
110.6
99.8
97.3
95.2

96.3
110.0
104.5
105. 7
107.0

120.5
148.0
134.0
125. 0
126.9

113.9
123.9
120.3
120.2
118.0

89.6
88.4
90.9
94.9

101.7
101.7
105.6
110.9

117.0
122.2
125.6
126.0

95.3
95.3
95.4
93.5

106.6
107.2
109.5
110.4

143.8
145.8
145.2
145.0

123. 6
125.4
119.0
117.7

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
118.5

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
126.1

95.4
95.4
95.4
95.1
95.0
94.9

109.5
109.8
110.2
110.4
110.3
110.6

144.9
146.9
146.5
146.2
144.7
145.7

119.3
118.6
117.8
117.3
116.9
116.3

118.9
119.0
119.7
119.3
119.5
119.2

. _ _ _ _ - _ - . _

64.2

110.7
114.3
117.6
119.2

_ . _ _ _ . - _ - . _

65.5

68.8
78.7
96.4
104.4
99.2

-

58.5

51.1
56.8
64.2
67.0
67.6

-

58.6

56.1
47.4
42.1
42.8
48.7

103.1
114.8
111.6
110.1
110.3

1929

1955
1956
1957 3
1958

Farm
products

93.7
96.1
100.5
97.7
98.5
95.6

109.5
109.9
110.7
111.5
112.9
113. 5

126.1
125.7
125.7
125.5
125.3
125.3

94.6
94.1
94.0
93.7
93.5
93.3

110.8
110.6
110.7
111.0
110.8
110.7

145. 1
144.6
144.6
144.5
143.8
144.2

116.3
115.8
115. 5
115.7
115.9
116.4

119.2
119.1
119.1
119.0
119.2
119.2

95.0
93.2
93.1
92.3
92.1
90.7

112.7
111.3
111.1
110.0
109.5
108.8

125.6
126.1
126.2
126.4
126.8
127.2

93.3
93.3
93.3
93.2
93.1
93.2

110.4
110.0
109.9
110.2
110.2
110.0

144.7
144.4
145.2
146.1
146.6
146.7

116.8
118.6
120.4
120.8
120.0
119.6

See footnotes at end of table, p. 181.




180

TABLE D-36.—Wholesale price indexes, 1929-58—Continued
[1947-49=100] i
All commodities other than farm products and foods (continued)
Hides,
skins,
leather,
and
leather
products

59.3

70.2

(2)

54.4
46.8
39.7
44.0
47.1

66.5
57.2
59.5
56.1
62.0

(2)
2
(2)
(2)

48.7
51.9
56.9
50.5
52.0

Period

Fuel,
power,
and
lighting
materials

Pulp,
paper,
and
allied
products

Metals Machinand

metal
products

ery and

motive
products

Furniture
and
other
household
durables

Non- Tobacco
metal- manu- Miscellic
factures laneous
minerand
prodals
bottled
ucts
(struc- bevertural)
ages

67.0

(2)

69.3

72.6

86.6

(2)

( 2)

()

68.2
62.8
55.4
55.5
60.2

72.4
67.6
63.4
66.9
71.6

87.1
84.6
81.4
72.8
76.0

(2)

(2)

60.3
54.1
49.9
50.9
56.2

2

62.2
64.5
65.7
64.7
61.8

8
%)
(

56.2
57.3
65.6
63.1
62.6

(2)
(2)
(2)
(2)

71.6
71.7
73.4
71.1
69.5

75.9
75.8
76.5
76.4
76.4

(2)
(2)
(2)

65.3

59.8
60.6
67.2
65.6
65.4

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

66.8
71.2
76.8
76.4
78.4

69.7
71.3
74.1
74.5
75.9

77.3
78.1
79.1
83.0
83.4

64.2
74.6
101.0
102.1
96.9

71.1
76.2
90.9
107.1
101.9

(2)
(2)
(2)
2
(2)
()
(2)

&.

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

104.6
120.3
97.2
98.5
94.2

103.0
106.7
106.6
109.5
108.1

100.9
119.6
116.5
116.1
116.3

110.3
122.8
123.0
126.9
128.0

108.6
119.0
121.5
123.0
124.6

105.3
114.1
112.0
114.2
115.4

106.9
113.6
113.6
118.2
120.9

103.5
109.4
111.8
115.4
120.6

96.6
104.9
108.3
97.8
102.5

-

93.8
99.3
99.4
100.6

107.9
111.2
117.2
112.7

119.3
127.2
129.6
131.0

136.6
148.4
151.2
150.4

128.4
137.8
146.1
149.8

115.9
119.1
122.2
123.2

124.2
129.6
134.6
136.0

121.6
122.3
126.1
128.2

92.0
91.0
89.6
94.2

_

98.4
98.0
98.4
98.6
98.9
99.8

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

100.6
100.3
100.0
100.1
100.0
99.5

116.4
116.3
116.1
115.8
115.7
116.2

129.5
129.9
130.1
130.9
130.9
131.0

152.4
153.2
152. 2
150.8
150.4
150.5

145.8
146.2
146.9
147.7
149.2
149.4

122. 2
122.4
122.3
122.6
122.7
123.5

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

99.5
99.6
99.5
99.7
99.9
100.3

116.1
113.6
112.4
111.0
110.3
110.7

130.8
130.8
130.5
130.5
130.5
130.5

150.0
150.1
149.8
148.6
148.6
148.8

149.4
149.3
149.2
149.4
149.4
149.5

123.8
123.6
123.5
123.4
123.2
123.0

136.4
136.5
135.3
135.4
135.4
135.2

128.1
128.1
128.0
128.0
128.0
128.0

88.3
89.3
94.3
97.8
96.2
93.7

100.3
100.5
100.2
101.4
102.3
103.6

111.9
113.7
114.1
113.0
112.6
112.9

131.0
131.0
131.7
131.9
131.9
131.4

148.8
150.8
151.3
152.2
153.0
153.0

149.5
149. 5
149.4
149.9
151.2
151.5

123.2
123.0
123.0
123.0
122.7
122.8

135.3
135.2
136.7
136.7
136.7
136.9

128.0
128.0
128.0
128.8
128.7
128.7

97.2
95.6
92.5
91.2
93.2
100.9

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

19583
1957: January
February
March.
April
May
June

1958: January
February
March . .
April
May
June
July
August
September- .
October
NovemberDecember 3 __

2

( )
(2)
(2)
(2)

8
()
2

(2)

8
8)
(
2

(2)
(2)
(2)
(2)

100.8
103.1
96.1

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 Not available.
3 Preliminary.
Source: Department of Labor.

181
489916 O—59




13

TABLE D—37.—Wholesale price indexes, by stage of processing, 1947—58
[1947-49=100]
Intermediate materials, supplies, and components l
Crude materials

Period

All
commodities

Materials and components for
manufacturing

Food- Nonstuffs food
maTotal and terials, Fuel
feed- except
stuffs fuel

Total

Materials
for
Total food
manufacturing

Materials
for
nondurable
manufacturing

Materials
and
Macomterials Compopo- nents
for
du- nents
for
for
rable
conmanu- manu- strucfactur- factur- tion
ing
ing

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
99.6

102.8
106.0
91.2

99.2
105.0
95.8

91.2
103.0
105.8

94.4
101.9
103.8

93.3
103.2
103.5

1950
1951
1952
1953
1954

103.1
114.8
111.6
110.1
110.3

101.8
116.9
107.4
99.2
98.3

97.0
112.3
105.7
94.6
94.7

111.0
128.1
110.9
106.2
104.2

104.6
106. 5
107.2
111.0
106.0

104.3
116.9
113.5
114.1
114.8

104.5
118.4
113.4
115.2
115.4

94.9
105.7
101.5
101.8
100.9

100.5
116.5
104.8
104.0
102.3

111.9
124.3
124.6
130.1
133.1

107.6
122.2
122.5
124.7
125.3

108.9
119.1
118.3
120.2
120.9

1955
1956
1957
1958 *

110.7
114.3
117.6
119.2

94.5
95.0
97.2
99.4

85.7
84.0
87.7
92.8

110.1
114.2
112.5
108.4

105.8
113.3
119.7
121.2

117.0
122.1
125.1
125.3

118.2
123.7
126.9
127.2

97.7
98.0
99.9
102.2

102.7
104.3
105. 7
104.7

139.7
148.5
153.2
154.3

130.9
142.9
148.3
149.5

125.6
132.0
132.9
132.9

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

118.2
118.4
118.0
117.8
118.1
118.5

99.7
99.6
97.0
95.3
95.3
96.4

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
122.4

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
149.3

133.3
133.4
133.1
133.0
133.0
132.9

1958:
January
February. ..
March
April
May
June

118.9
119.0
119.7
119.3
119.5
119.2

97.5
99.5
101.5
100.3
101.7
100.7

90.3
93.2
96.7
95.4
97.7
95.7

107.6
107.9
107.1
106.3
106.0
107.0

123.0
123.5
123.4
117.9
117.9
118.2

125.4
125.0
125.0
125.1
124.9
124.7

127.5
127.3
127.1
126.9
126.8
126.9

102.4
102.5
102.4
103.2
103.5
103.4

105.7
105.4
105.2
105.0
104.6
104.5

153.8
153.6
153.5
152.9
152.9
152.9

149.3
149.1
148.8
148.5
149.0
149.4

133.0
132.6
131.9
131.8
132.0
132.1

July
August
September..
October
November. .
December 4 _

119.2
119.1
119.1
119.0
119.2
119.2

100.0
99.1
98.4
98.0
98.4
97.1

94.3
92.1
90.7
89.3
89.9
88.4

107.7
109.3
109.6
111.1
111.2
110.1

118.8
120.6
121.8
123.1
123.0
123.5

125.0
125.3
125.4
125.4
125. 7
126.3

126.7
127.2
127.3
127.6
127.8
127.8

102.6
101.8
101.5
101.4
101.2
100.4

104.3
104.2
104.1
104.2
104.3
104.5

152.9
155.0
155.4
156.2
156.6
156.5

149.5
149.5
149.8
150.2
150.7
150.7

132.1
132.7
133.7
134.2
134.1
134.1

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

See footnotes at end of table, p. 183.




182

TABLE D—37.—Wholesale price indexes, by stage of processing, 1947—58—Continued
[1947-49=100]
Special groups of industrial
products

Finished goods

Consumer finished goods
Period

Producer

Total
Total

Other
Du- finished
nonFoods durable rable goods
goods goods

InterConsumer
mediate
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
98.6

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 .
1957
1958*

110.9
114.0
118.1
120.8

106.4
108.0
111.1
113.5

101.1
101.0
104.5
110.5

107.8
109.9
112.4
111.7

115.9
119.7
123.3
125.0

128.5
138.1
146.7
1.50.3

113.4
120.0
118.3
113.7

120.1
126.0
129.3
129.1

110.2
112.8
115.7
115.8

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

118.5
118. 6
118.8
119.0
119.6
119.9

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
112.6

122.9
123.1
123.0
123.5
124.7
124.9

146.4
147.2
147.8
148.4
149.8
150.1

121.3
121.2
118.3
114.4
112.1
112.5

129.5
129.8
129.8
129.8
129.8
129.8

115.4
115. 5
115.6
115.7
116.1
116.3

-

120.6
120.6
121.4
120.9
121.0
120.7

113.3
113.3
114.4
113.7
113.9
113. 6

109.2
110.1
113.1
111. 9
112.5
111.6

112.5
111.8
111.5
111.1
110.9
111.0

125.1
124.9
124.9
124.8
124.7
124.7

150.1
150.1
150.0
150.1
150.0
150.0

112.2
112.9
112.0
110.2
109.7
111.2

129.7
129.2
128.8
128.6
128.5
128.5

116.3
115.8
115.6
115.3
115.2
115.2

July
August
September
October
_. _ _
November 4
December

120.8
120.6
120.9
120.6
120.6
120.5

113.7
113.3
113.7
113.3
113.0
112.8

111.5
110.0
110.8
109.6
108.5
107.7

111.4
112.0
112.2
112.2
112.0
112.1

124.7
124.7
124.6
125.0
126.0
126.2

150.0
150.0
150.1
150.3
151. 6
151.9

112.4
114.7
115.9
117.8
118.5
116.5

128.5
129.1
129.4
129.6
129.7
129.8

115.5
115.8
116.0
116.1
116.3
116.5

1957: January
February
March _
April
May
June

.__

July
AugustSeptember
October
_ _
November
December 1958: January - .
February
March
April
May
June

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.
4
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.




183

TABLE D-38.—Consumer price indexes, 1929-58
For city wage-earner and clerical-worker families
[1947-49=100]
Housing
All
items

Period

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)

71.4
65.0
58.4
55.3
57.2

62.4
51.4
42.8
41.6
46.4

0)
0)
0)
(0
(0

114.2
108.2
97.1
83.6
78.4

58.9
53.6
47.5
45.9
50.2

0)
0)
0)
0)
0)

0)
(')
0)
0)
(0

0)
0)
(0
0)
0)
(0

0)

1930
1931
1932
1933
1934

0)
(0
0)
0)
0)

0)
0)
0)
0)
0)

58.7
59.3
61.4
60.3
59.4

49.7
.50.1
52.1
48.4
47.1

71.8
72.8
75.4
76.6
76.1

78.2
80.1
83.8
86.5
86.6

50.6
51.0
53.7
53.4
52.5

69.6
70.2
71.3
71.9
70.2

71.4
71.6
72.3
72.5
72.6

54.6
55.3
58.5
59.8
59.6

58.1
59.1
60.8
62.9
63.0

67.2
67.0
68.8
69.4
70.6

59.9
62.9
69.7
74.0
75.2

47.8
52.2
61.3
68.3
67.4

76.4
78.3
81.8
82.8
84.7

86.9
88.4
90.4
90.3
90.6

53.2
55.6
64.9
67.8
72.6

69.8
72.2
78.5
78.2
78.2

72.7
73.1
75.1
78.7
81.2

59.5
61.0
66.9
73.8
79.0

64.1
66.4
69.5
75.3
83.4

72.8
74.2
76.3
80.2
82.4

76.9
83.4
95.5
102.8
101.8

68.9
79.0
95.9
104.1
100.0

86.1
88.3
95.0
101.7
103.3

90.9
91.4
94.4
100.7
105.0

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
1957 2
1958

114.5
116.2
120.2
123.4

110.9
111.7
115.4
120.4

120.0
121.7
125.6
127.7

130.3
132.7
135.2
137.7

103.7
105.5
106.9
106.9

126.4
128.7
136.0
140.1

128.0
132.6
138.0
144.1

115.3
120.0
124.4
128.6

106.6
108.1
112.2
116.7

120.2
122.0
125.5
127.2

118.2
... 118.7
118.9
119.3
119.6
120.2

112.8
113.6
113. 2
113.8
114.6
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

120.8
121.0
121.1
121.1
121.6
121.0

117.4
117.9
117.0
116.4
116.0
116.1

125.5
125.7
126.3
126.6
126.8
127.0

135.2
135.4
135.7
136.0
136.3
136.7

106.5
106.6
107.3
107.7
107.9
107.6

135.8
135.9
135.9
135.8
140.0
138.9

138.4
138.6
139.0
139.7
140.3
140.8

124.7
124.9
125.1
126.2
126.7
127.0

112.4
112.6
113.3
113.4
114.4
114.6

126.6
126.7
126.7
126.8
126.8
126.8

122.3
122.5
123.3
123.5
123.6
123.7

118.2
118.7
120.8
121.6
121.6
121.6

127.1
127.3
127.5
127.7
127.8
127.8

136.8
137.0
137.1
137.3
137.5
137.7

106.9
106.8
106.8
106.7
106.7
106.7

138.7
138. 6
138.7
138.3
138.7
138.9

141.7
141.9
142.3
142.7
143.7
143.9

127.8
128.0
128.3
128.5
128.5
128.6

116.6
116.6
117.0
117.0
116.6
116.7

127.0
127.0
127.2
127.2
127.2
127.2

123.9
123.7
123.7
123.7
123.9

121.7
120.7
120.3
119.7
119.4

127.7
127.9
127.9
127.9
128.0

137.8
138.1
138.2
138.3
138.4

106.7
106.6
107.1
107.3
107.7

140.3
141.0
141.3
142.7
144.5

144.6
145.0
146.1
146.7
147.0

128.9
128.9
128.7
128.8
129.1

116.6
116.7
116.6
116.6
117.0

127.2
127.1
127.1
127.2
127.3

1935
1936
1937
1938
1939

_
.-

1940.
1941
1942
1943
1944

1945
1946
1947
1948
1949. _

1957' January
February
March
April
May
June

_

.

July
August
September..
October .
November
December
1958: January _
February
March
April
May
June
July
August.. _-_
September
October
November.

-__ _

1 Not available.
January-November average.
Source: Department of Labor.

2




184

TABLE D-39.—Consumer price indexes, by selected major groups, 1935-58
For city wage-earner and clerical-worker families
[1947-49=100]
Commodities
All
items

Period

1935
1936
1937
1938
1939

All
All
items items
less
less
food shelter

All
commodi- Food
ties

Services

Commodities less food
All

NonDura- durables
bles

All
services

Rent

All
services
less
rent

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
86.6

72.6
72.2
72.9
73.5
73.5

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
1948
1949

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

90.991.4
94.4
100.7
105.0

87.0
90.2
94.7
100.1
105.2

1950
1951
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

108.8
113.1
117.9
124.1
128.5

108.1
114.6
120.1
124.6
127.7

114.5
116.2
120.2
123.4

116.7
118.8
122.8
125. 4

112.4
114.0
117.8
121.2

109.0
110.1
113.6
116.3

110.9
111.7
115.4
120.4

107.5
108.9
112.3
113.3

105.1
105.1
108.8
110.3

110.6
113.0
116.1
116.9

129.8
132.6
137.7
142.3

130.3
132.7
135.2
137.7

130.1
133.0
138.6
143.7

118.2
118.7
U8.9
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

120.8
121.0
121.1
121.1
121.6
121.6

122.8
123.0
123.4
123.7
124.6
124.5

118.5
118.7
118.7
118.6
119.2
119.2

114.4
114.6
114.5
114.3
114.7
114.7

117.4
117.9
117.0
116.4
116.0
116.1

112.2
112.1
112.6
112.8
113.8
113.6

108.2
108.4
108.6
108.6
110.9
110.3

116.3
116.0
116.7
117.0
117.4
117.3

137.9
138.3
138.8
139.2
139.8
140.0

135.2
135.4
135.7
136.0
136.3
136.7

138.9
139.3
139.8
140.3
140.9
141.1

122.3
122. 5
123.3
123.5
123.6
123.7

124.7
124.8
125. 0
125. 0
125.1
125. 2

120.0
120.2
121.0
121.2
121.3
121.4

115.4
115. 5
116.4
116.6
116.6
116. 6

118.2
118.7
120.8
121.6
121.6
121.6

113.5
113.2
113. 1
112. 8
112.9
112.9

110.5
110.3
109.6
109.6
109.7
109.6

117.0
116.7
116.9
116.6
116. 5
116.7

140.5
141.0
141.7
142.1
142.3
142.3

136.8
137.0
137.1
137.3
137.5
137.7

141.7
142.3
143.1
143.5
143.8
143.8

123.9
123.7
123.7
123.7
123.9

125. 4
125.6
125.8
126.0
126.5

121.6
121.4
121. 5
121.5
121.7

116.8
116.4
116.4
116.4
116.6

121.7
120.7
120.3
119.7
119.4

113.1
113. 2
113.5
113.9
114.5

109.8
109.9
110.3
111.2
112.8

116.9
116.9
117.2
117.2
117.1

142.6
143.0
143.0
143.1
143.4

137.8
138.1
138.2
138.3
138.4

144.1
144.4
144.4
144.5
144.8

-

1940
1941
1942
1943
1944

. _.
._

1955
1956
1957
19581

._

1957: January.
February
March__. _ _ _
April
May
June
July
,
August
_September
October
__ _
November
December
1958' January
February
March
April
May
June
July
August
September
October.. _ _ _ _
November
1

January-November average.
Source: Department of Labor.




185

MONEY SUPPLY, CREDIT, AND FINANCE
TABLE D-40.—Deposits and currency, 1929-58
[Billions of dollars]
Total excluding U. S. Government

End of period

1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958 s
1957: January
February
March.
April
May
June. . . -_ _
July
August.. _ _ _ September
October
November
December
1958: January
February.March
April
May.
_ __June
Julys
August 5 - _
September «
October 5
November 5
December «

Demand deposits and
deposits 2
Total U.S.
currency,
Demand deposits and
seasonally adjusted
deposits Govcurrency
and
erncurment Total Time
Demand CurDemand Curderency
deposits 3 Total deposits rency Total deposits rency
posits i
ad- 4 outside
ad- outside
justed banks
justed 4 banks

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
232.3
245.9
222.4
221.1
221.5
224.3
224.2
224.9
225.2
225.0
225.4
226.9
227.0
232.3
227.7
228.0
230.9
234.4
234.2
239.5
237.2
238.7
238.1
240.5
243.4
245.9

0.2
.3
.5
.5
1.0
1.8
1.5
1.2
1.0
1.8
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
4.7
4.9
2.5
3.1
4.3
4.7
5.8
5.2
4.2
4.9
4.5
3.9
3.8
4.7
2.9
4.2
6.4
6.0
6.1
10.0
4.8
6.2
5.0
4.2
6.3
4.9

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
227.7
241.0
219.9
218.0
217.2
219.6
218.4
219.7
221.0
220.0
220.9
223.0
223.3
227.7
224.8
223.9
224.5
228.4
228.1
229.5
232.4
232.5
233.1
236.2
237.0
241.0

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
97.8
82.9
83.6
84.6
84.9
85.7
86.4
86.7
87.1
87.7
88.1
87.6
89.1
89.8
90.9
92.5
93.6
94.6
95.5
96.5
97.0
97.2
97.4
96.7
97.8

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. 6
143.1
136.9
134.4
132.6
134.7
132.7
133.3
134.3
132.9
133.3
134.9
135.7
138.6
135.0
133.0
132.0
134.8
133.5
134.0
135.9
135.5
135.9
138.8
140.3
143.1

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
110.3
114.5
109.5
107.0
105.2
107.3
104.8
105.6
106.6
105.1
105. 5
107.2
107.2
110.3
107.6
105.6
104.6
107.2
105.8
106.2
108.1
107.5
108.1
110.8
111.6
114.5

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
28.3
28.6
27.4
27.4
27.4
27.4
27.9
27.8
27.8
27.8
27.8
27.8
28.5
28.3
27.3
27.4
27.4
27.6
27.8
27.8
27.9
28.0
27.9
28.0
28.8
28.6

134.1
134.5
134.7
135.0
134.6
135.2
136.0
134.7
133.9
134.2
134.0
133.2
132.2
133.1
134.0
135.0
135.5
135.4
137.6
137.3
136.7
137.9
138.5
138.3

106.5
106.9
107.0
107.3
106.6
107.3
108.0
106.8
106.2
106.6
105.9
105.1
104.7
105.5
106.4
107.2
107. 6
107.4
109.5
109.2
108.9
110.0
110.3
110.3

27.6
27.6
27.7
27.7
28.0
27.9
28.0
27.9
27.7
27.7
28.1
28.1
27.5
27.6
27.6
27.8
27.9
28.0
28.1
28.1
27.8
27.9
28.2
28.0

1
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.
2 Includes holdings of State and local governments.
3
Includes deposits in commercial banks, mutual savings banks, and Postal Savings System, but excludes interbank deposits.
4
Includes demand deposits, other than interbank and U. S. Government, less cash items in process of
collection.
« Preliminary; December estimates by Council of Economic Advisers.
NOTE.—Monthly data are for the last Wednesday of the month, except the unadjusted data for December
1957 and June and December 1958, which are for call dates. All end-of-year figures are for call dates.
Detail will not necessarily add to total because of rounding.
Source: Board of Governors of the Federal Reserve System (except as noted).




186

TABLE D—41.—Loans and investments of all commercial banks, 1929—58
[Billions of dollars]

End of period

1

1929— June 5
- 1930— June 5
. .. .
5
1931— June 5 -1932—June
1933—June 5
1934—June 5
1935
- 1936
. 1937
1938
1939
1940
1941
1942
1943
1944
. - - 1945
- - -- -1946
1947
.- 1948
.
1949
1950
1951
-. .1952
1953
1954
-- -1955
_- _
1956
1957 7
1958
1957: January
. _ _ _ _.
February
March
April.
_ -.- .
Mav
June
July
August
-- _ - - September
October
November.
- _ December
1958: January
February _ _ _ _ _
March _ _ _
__ __
April
May_.
June__ _ _
July 7 7
August
September 7
_
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
170. 1
184.5
162.8
162. 5
162.9
165.1
165.1
165.6
165. 4
165.9
166.3
167.9
167.3
170.1
167.7
168.6
171.4
175.6
175.4
179.9
177.6
180.0
179.5
181.4
183.6
184.5

Loans
• Total 2
35.7
34.5
29.2
21.8
16.3
15.7
15.2
16.4
17.2
16.4
17.2
18.8
21.7
19.2
19.1
21.6
26.1
31.1
38.1
42.5
43.0
52.2
57.7
64.2
67.6
70.6
82.6
90.3
93.9
97.9
88.9
89.3
90.6
91.0
91.2
93.3
92.3
92.8
93.4
93.0
/92.9
93.9
92.0
92.1
93.0
93.5
92.9
95.6
93.6
93.8
94.2
94.9
96.0
97.9

Investments

Business
loans 3
(6)
(6)
(6)
8
(6)
(6)
()
(6)
6
( 6)
()

5.7
6.4
7.3
9.3
7.9
7.9
8.0
9.6
14.2
18.2
18.9
17.1
21.9
25.9
27.9
27.2
26.9
33.2
38.7
40.5
40.1
37.6
37.8
39.0
39.0
38.9
40.5
39.6
39.9
40.3
39.7
39.6
40.5
38.8
38.6
39.2
38.4
38.1
38.9
37.9
38.3
38.7
38.8
39.2
40.1

Total
13.7
14.4
15.7
14.3
14.0
17.0
20.9
23.1
21.2
22.3
23.4
25.1
29.0
48.2
66.0
83.9
97.9
82.9
78.2
71.8
77.2
74.4
74.9
77.5
78.1
85.3
78.3
74.8
76.2
86.5
73.9
73.2
72.2
74.1
73.9
72.3
73.0
73.1
72.9
74.9
74.3
76.2
75.6
76.5
78.4
82.1
82.5
84.3
84.0
86.2
85.3
86.5
87.6
86.5

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
58.2
66.1
57.7
56.8
55.7
57.5
57.1
55.5
56.3
56.2
55. 9
57.3
56.9
58.2
57.7
58.3
59.6
62.8
63.1
64.2
64.1
66.1
64.7
66.0
67.3
66.1

8.7
9.4
9.7
8.1
6.5
6.7
7.1
7.9
7.0
7.2
7.1
7.4
7.2
6.8
6.1
6.3
7.3
8.1
9.0
9.2
10.2
12.4
13.3
14.1
14.7
16.3
16.7
16.3
17.9
20.4
16.2
16.3
16.5
16.7
16.8
16.8
16.8
16.9
17.1
17.6
17.4
17.9
17.9
18.2
18.9
19.3
19.4
20.1
19.9
20.2
20.6
20.5
20.3
20.4

1 End-of-year, December 1957, June and December 1958 figures are for call dates. Other data (including
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.
4
Figures in this table are based on book values and relate only to banks within the continental United
States. Therefore, they dp not agree with figures in Table D-49, which are on the basis of par values and
include holdings of banks in United States Territories and possessions.
3
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).




187

TABLE D-42.—Federal Reserve Bank credit and member bank reserves, 1929—58
[Averages of daily figures, millions of dollars]
Member bank reserves

Reserve Bank credit outstanding
Period
Total

U.S.
Member
bank
Government se- borrowcurities
ings

All
other,
mainly
float

Total

Required

Excess

Member
bank
free
reserves
(excess reserves less
borrowings)

-900

1929

1,459

208

943

308

2,358

2,315

43

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
11,815
i 2, 112

55
89
256
1528
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
1957
1958

25, 472
25, 702
25, 373
25, 982

23, 891
23, 709
23, 345
24, 654

607
831
837
294

974
1,162
1,191
1,032

18, 843
18, 965
19, 021
18, 647

18, 257
18, 403
18,504
2 18, 056

586
562
517
2592

-21
-269
-320
2298

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

117
-126
-316
-505
-444
-508

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, 843

534
534
522
467
512
577

-383
-471
-467
-344
-293
-133

25, 229
24, 568
24, 559
24, 682
24, 939
25, 851

23, 608
23, 378
23, 486
23, 649
23, 939
24, 749

451
242
138
130
119
142

1,170
948
935
903
881
960

19, 296
19,000
18, 730
18, 394
18, 223
18,600

18, 723
18, 434
18, 097
17, 772
17, 557
17, 974

573
567
633
623
666
626

122
324
495
493
547
484

26, 310
26, 554
26, 548
26, 789
27,211
28, 412

25, 218
25, 410
25, 051
25, 296
25, 650
26, 312

109
252
476
425
486
557

983
892
1,021
1,068
1,074
1,536

18,609
18, 580
18, 425
18, 476
18, 540
18, 899

17, 953
17, 946
17, 854
17, 955
18, 034
2 18, 372

656
635
571
521
506
2
527

546
383
95
96
20
2-30

.

-

1957' January
February
March
April
May
June
July
August
September
October
November
December
1958* January
February -March
April
May
June
July
August
September
October .
November
December

1 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.

2




188

TABLE D-43.—Bond yields and interest rates, 1929-58
[Percent per annum]
U. S. Government
securities
Period

3-month 9-12
Treas- month Taxable Aaa
3
ury
2 bonds
bills i issues

Baa

Common
stock
yields,
200
stocks
Moody's)

Highgrade
municipal
bonds
(Standard &
Poor's)

Average
rate on Prime Fedshorteral
comterm
Remerbank
serve
cial
loans paper , Bank
to busidis4—6
nesscount
selected months rate
cities

(4)

1935
1936
1937
1938
1939

-

1940
1941
1942
1943
1944

- -

..-

1945
1946
1947
1948
1949

- - - -

1950
1951
1952
1953
1954

- - - - .--

..

1956' January
February
March
April
May
June.. _
July
August
September
October
November
December

5.90

3.41

4.27

(6)

5.85

5.16

(5)
(5)
(5)
5
( 5)

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

6
(6)
()

()

4.55
4.58
5.01
4.49
4.00

8
()

3.59
2.64
2.73
1.73
1.02

3.04
2.11
2.82
2.56
1.54

.137
.143
.447
.053
.023

(5)
(5)
(5)
(5)
5

3.60
3.24
3.26
3.19
3.01

5.75
4.77
5.03
5.80
4.96

4.06
3.50
4.77
4.38
4.15

3.40
3.07
3.10
2.91
2.76

(6)
(•)
(6)
(6)
2.1

.75
.75
.94
.81
.59

1.50
1.50
1.33
1.00
1.00

.014
.103
.326
.373
.375

1930
1931
1932
1933
1934

4.73

()
1.402
.879
.515
.256

.

(5)

4

1929

1955
1956
1957
1958

Corporate
bonds
(Moody's)

(5)
(5)
(5)
.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

71.00
71.00
71.00

.375
.375
.594
1.040
1.102

.81
.82
.88
1.14
1.14

2.37
2.19
2.25
2.44
2.31

2.62
2.53
2.61
2.82
2.66

3.29
3.05
3.24
3.47
3.42

4.19
3.97
5.13
5.78
6.63

1.67
1.64
2.01
2.40
2.21

2.2
2.1
2.1
2.5
2.7

.75
.81
1.03
1.44
1.49

71.00
71.00

1.218
1.552
1.766
1. 931
.953

1.26
1.73
1.81
2.07
.92

2.32
2.57
2.68
2.94
2.55

2.62
2.86
2.96
3.20
2.90

3.24
3.41
3.52
3.74
3.51

6.27
6.12
5.50
5.49
4.78

1.98
2.00
2.19
2.72
2.37

2.7
3.1
3.5
3.7
3.6

1.45
2.16
2.33
2.52
1.58

1.59
1.75
1.75
1.99
1.60

1.753
2.658
3.267
1.839

1.89
2.83
3.53
2.09

2.84
3.08
3.47
3.43

3.06
3.36
3.89
3.79

3.53
3.88
4.71
4.73

4.06
4.07
4.33
4.05

2.53
2 93
3^60
3.56

3.7
4.2
4.6
4.3

2.18
3.31
3.81
2.46

1.89
2.77
3.12
2.16

2.456
2.372
2.310
2.613
2.650
2.527

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

3.00
3.00
3.00
3.14
3.27
3.38

2.50
2.50
2.50
2.65
2.75
2.75

2.334
2.606
2.850
2.961
3.000
3.230

2.62
3.01
3.17
3.07
3.15
3.33

3.00 3.28
3.17 3.43
3.21 ' 3.56
3.20 3.59
3.30 3.69
3.40 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

3.27
3.28
3.50
3.63
3.63
3.63

2.75
2.81
3.00
3.00
3.00
3.00

()

See footnotes at end of table, p. 190.




189

6

4.14

4.38

1.00
1.00

1.00
1.34
1.50

TABLE D-43.—Bond yields and interest rates, 1929-58—Continued
[Percent per annum]
Corporate
bonds
(Moody's) Common
stock
yields,
200
3-month 9-12
stocks
Treas- month Taxable Aaa Baa (Moody's)
3
2 bonds
ury
bills i issues
U. S. Government
securities

Period

1957: January
February
March
April
May
June
_

3.34
3.22
3.26
3.32
3.40
3.58

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

3.71
3.93
4.02
3.94
3.52
3.09

3.60 3.99 4.73
3.63 4.10 4.82
3.66 4.12 4.93
3.73 4.10 4.99
3.57 4.08 5.09
3.30 3.81 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

2.598
1.562
1.354
1.126
1.046
.881

- -

3.17
3.23
3.35
3.41
3.37
3.55

3.165
3.404
3.578
3.591
3.337
3.102

1958: January
February
March
April
May
June
July
August
September
October
November
December

Average
rate on
shortterm
bank
loans
to businessselected
cities

3.210
3.165
3.140
3.113
3.042
3.316

July
August
September
October _
November
December

3.77
3.67
3.66
3.67
3.74
3.91

Highgrade
municipal
bonds
(Standard &
Poor's)

2.56
1.93
1.77
1.35
1.21
.98

3.24
3.28
3.25
3.12
3.14
3.20

3.60
3.59
3.63
3.60
3.57
3.57

4.83
4.66
4.68
4.67
4.62
4.55

4.56
4.62
4.50
4.35
4.27
4.15

3.32
3.37
3.45
3.31
3.25
3.26

4.49

.962
1.686
2.484
2.793
2.756
2.814

1.34
2.14
2.84
2.83
2.92
3.24

3.36
3.60
3.75
3.76
3.70
3.80

3.67 4.53
3.85 4.67
4.09 4.87
4.11 4.92
4.09 4.87
4.08 4.85

3.97
3.91
3.72
3.64
3.54
3.34

3.45
3.74
3.96
3.94
3.84
3.84

4.21

4.40

4.85

4.17

4.50

Prime
commercial
paper,
4-6
months

Federal
Reserve
Bank
discount
rate

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

3.49
2.63
2.33
1.90
1.71
1.54

2.94
2.75
2.35
2.03
1.75
1.75

1.50
1.96
2.93
3.23
3.08
3.33

1.75
1.75
1.91
2.00
2.40
2.50

1
Rate on new issues within period. Issues were tax exempt prior to March 1, 1941, and fully taxable
thereafter. For the period 1934-37, series includes issues with maturities of more than 3 months.
2
Includes certificates of indebtedness and selected note and bond issues (fully taxable).
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.
4
5 Treasury bills were first issued in December 1929 and were issued irregularly in 1930.
Not available before August 1942.
6
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.




190

TABLE D-44.—Short- and intermediate-term consumer credit outstanding, 1929—58
[Millions of dollars]
Instalment credit
End of period

Total

Noninstalment credit

Other Repair
conPerand
sumer modern- sonal
goodsl zation loans
ioans 2
paper

Tqtal

Automobile
paper l

3,151

(4)

(4)

(4)

(4)

3,293

1,602

1,691

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)
(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

38, 670
... 42, 097
44, 774
44,800

28, 958
31, 827
34, 095
33,700

13, 472
14, 459
15, 409
14,100

7,634
8,510
8,692
9,000

1,689
1,895
2,091
2,100

6,163
6,963
7,903
8,500

9,712
10, 270
10, 679
11, 100

4,579
4,735
4,829
5,000

5,133
5,535
5, 850
6,100

41, 288
40, 877
40, 854
41, 352
42,080
_ _ _ _ _ _ 42, 496

31, 581
31, 494
31, 527
31, 782
32, 165
32, 602

14, 404
14,419
14, 509
14, 664
14, 849
15,086

8,320
8,168
8,049
8,017
8,092
8,164

1,880
1,875
1,880
1,894
1,928
1,956

6,977
7,032
7,089
7,207
7,296
7,396

9,707
9,383
9,327
9,570
9,915
9,894

4,171
3,714
3,560
3,772
3,943
3,987

5,536
5,669
5,767
5,798
5,972
5,907

42, 633
_ _ _ _ 43, 033
43, 159
43, 162
43, 438
44, 774

32, 962
33, 283
33, 393
33, 484
33, 566
34, 095

15, 277
15, 431
15, 488
15, 505
15, 459
15, 409

8,196
8,221
8,220
8,229
8,289
8,692

1,981
2,024
2,049
2,078
2,095
2,091

7,508
7,607
7,636
7,672
7,723
7,903

9,671
9,750
9,766
9,678
9,872
10, 679

3,927
3,968
3,966
4,044
4,147
4,829

5,744
5,782
5,800
5,634
5,725
5,850

_ -

43, 904
43, 017
42, 500
42, 617
42, 985
43, 079

33, 713
33, 278
32,940
32, 888
32, 910
33, 008

15, 235
15, 030
14, 793
14, 691
14, 613
14,590

8,495
8,277
8,179
8,124
8,158
8,190

2,069
2,041
2,019
2,017
2,038
2,048

7,914
7,930
7,949
8,056
8,101
8,180

10, 191
9,739
9,560
9,729
10, 075
10, 071

4,290
3,754
3,579
3,772
4,010
4,012

5,901
5,985
5,981
5,957
6,065
6,059

. ___

42, 923
43, 128
43, 144
43,164
43, 464
44, 800

33, 074
33,165
33, 079
33, 052
33, 126
33,700

14, 567
14, 514
14, 332
14, 164
14, 066
14,100

8,197
8,254
8,312
8,411
8, 528
9,000

2,061
2,091
2,107
2,128
2,146
2,100

8,249
8,306
8,328
8,349
8,386
8,500

9,849
9,963
10, 065
10, 112
10, 338
11,100

3,927
3,956
4,033
4,191
4,297
5,000

5,922
6,007
6,032
5,921
6,041
6,100

1929

6,444

1930
1931
1932
1933
1934

.

1955
1956
1957 5
1958

.

_ _

_ .

-

..

1957: January
February
March
April

May

June _ - _

_

.-

July
August
September
October
November
December

__

1958' January
February.
March
April _ - -_

_ .

May
June

_

July
August
September
OctoberNovember 5
December

()

()

Total

Charge
Other 3
accounts

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.
4
Not available.
5
Preliminary estimates by Council of Economic Advisers.

Source: Board of Governors of the Federal Reserve System (except as noted).




TABLE D—45-—Instalment credit extended and repaid, 1946-58
[Millions of dollars]
Total

Repair and
Other consumer modernization
goods paper
loans

Automobile
paper

Period

Personal
loans

Extended

1946
1947
1948
1949 .
1950
1951
1952
1953
1954
1955
1956
1957
1958 i

Repaid

Extended

Repaid

Extended

Repaid

Extended

Repaid

Extended

Repaid

8,495
12, 713
15,585
18, 108
21,558
23, 576
29, 514
31, 558
31, 051
39, 039
40,063
42, 426
40,400

6,785
10, 190
13, 284
15, 514
18, 445
22, 985
25, 405
27, 956
30, 488
33, 649
37, 194
40, 158
40,800

1,969
3,692
5,217
6,967
8, 530
8,956
11, 764
12, 981
11, 807
16, 745
15, 563
16, 545
14, 100

1,443
2,749
4,123
5,430
7,011
9,058
10,003
10, 879
11,833
13, 082
14, 576
15, 595
15,400

3,077
4,498
5,383
5,865
7,150
7,485
9,186
9,227
9,117
10,634
11, 590
11, 626
11,800

2,603
3,645
4,625
5,060
6,057
7,404
7,892
8,622
9,145
9,751
10, 714
11,444
11, 500

423
704
714
734
835
841
1,217
1,344
1,261
1,388
1.568
1,662
1,600

200
391
579
689
717
772
917
1,119
1,255
1,315
1,362
1,466
1,600

3,026
3,819
4,271
4,542
5,043
6,294
7,347
8,006
8,866
10, 272
11, 342
12, 593
12, 900

2,539
3,405
3,957
4,335
4,660
5,751
6,593
7,336
8,255
9,501
10,542
11,653
12,300

104
109
121
132
160
144
156
164
152
155
138
127
107
95
111
131
144
146
146
151
158
159
141
150

119
114
116
118
126
116
131
121
127
126
121
131
129
123
133
133
123
136
133
121
142
138
123
150

932
898
1,009
1,103
1,070
1,047
1,131
1,063
956
1,021
1,045
1,318
1,011
919
1,050
1,117
1,028
1,101
1,100
1,065
1,041
1,068
1,052
1,350

918
843
952
985
981
947
1,019
964
927
985
994
1,138
1,000
903
1,031
1,010
983
1,022
,031
,008
,019
,047
,015
,200

134
138
133
133
147
138
142
150
140
139
134
134
137
122
122
132
134
135
135
142
142
143
142
150

117
121
115
117
125
122
129
121
128
122
118
131
126
130
130
135
124
138
132
124
139
134
124
150

998
1,011
997
1,034
1,046
1,054
1,085
1,069
1,051
1,057
1,077
1,114
1,080
1,032
1,017
1,063
1,023
1,062
1,075
1,112
1,095
1,104
1,133
1,100

925
921
938
966
970
978
978
972
988
977
1,014
1,026
1,003
987
996
1,010
989
1,014
1,009
1,055
1,041
1,039
1,079
1,050

Unadjusted
1957; January
February
March
April
May
June.
July
August
September. __
October
November
December
1958: January
February
March
April
May
June
July
August -_.
September. _ .
October . .
November
December i _ _ _

3,105
2,972
3,351
3,590
3,760
3,661
3,845
3,693
3,386
3,547
3,428
4,088
3,088
2,742
3,156
3,335
3,371
3,477
3, 483
3,385
3,297
3,475
3,338
4,200

3,351
3,059
3,318
3,335
3,377
3,224
3,485
3,372
3,276
3,456
3,346
3,559
3,470
3,177
3,494
3,387
3,349
3,379
3,417
3,294
3,383
3,502
3,264
3,600

1,253
,207
,373
,457
,503
,482
,550
,454
,350
,393
,231
,292
,176
,014
,094
,211
,199
,257
,281
,193
,105
,173
,091
,300

1,308
1,192
1,283
1,302
1,318
1,245
1,359
1,300
,293
,376
,277
,342
,350
,219
,331
,313
,277
,280
,304
,246
,287
,341
,189
,250

816
758
848
898
1,027
988
1,008
1,012
928
978
1,014
1,351
794
714
901
876
1,000
973
956
976
993
1,075
1,054
1,400

1,006
910
967
930
952
916
976
987
929
969
954
948
991
932
999
931
966
941
949
919
935
976
937
1,000

Seasonally adjusted
1957: January. __
February
March
April.
May
June
July
August.. _
September
October
November
December
1958: JanuaryFebruary
March
April
May
June.
July
August
September,...
October
November
December L _ .

3,498
3,503
3,428
3,461
3, 551
3,534
3,608
3, 580
3,542
3,533
3,553
3,635
3,481
3,221
3,184
3,262
3,243
3,259
3,330
3,415
3,324
3,450
3,591
3,600

3,298
3,259
3,262
3,284
3,317
3,345
3,381
3,356
3,398
3,369
3,393
3,496
3,415
3,389
3,384
3,393
3,339
3,393
3,367
3,404
3,377
3,419
3,449
3,400

1,414
1,398
1,366
1,362
1,352
1,347
1,371
1,343
1,377
1,424
1,384
1,407
1,331
1,171
1,067
1,151
1,100
1,101
1,159
1,148
1,088
1,205
1,282
1,300

1,314
1,283
1,270
1,291
1,303
1,292
1,306
1,281
1,303
1,312
1,281
1,359
1,357
1,312
1,294
1,328
1,285
1,279
1,278
1,277
1,247
1,282
1,244
1,200

1

952
956
932
932
1,006
995
1,010
1,018
974
913
958
980
933
896
978
916
986
961
961
1,013
999
998
1,034
1,050

942
934
939
910
919
953
968
982
979
958
980
980
929
960
964
920
941
962
948
948
950
964
1,002
1,000

Preliminary; December by Council of Economic Advisers.
Source: Board of Governors of the Federal Reserve System (except as noted).




192

TABLE D-46.—Mortgage debt outstanding, by type of property and of financing, 1939-58
[Billions of dollars]
Nonfarm properties
1- to 4-family houses
End of period

All
properties

Government underwritten

Total
Total

Total

FHA
insured

VA
guaranteed

Multifamily Farm
and
propcomerties
Con- mercial
venproptional * erties 1 2

1939

35.5

28.9

16.3

1.8

1.8

14.5

12.5

6.6

1940
1941
1942
1943
1944

36.5
37.6
36.7
35.3
34.7

30.0
31.2
30.8
29.9
29.7

17.4
18.4
18.2
17.8
17.9

2.3
3.0
3.7
4.1
4.2

2.3
3.0
3.7
4.1
4.2

15.1
15.4
14.5
13.7
13.7

12.6
12.9
12.5
12.1
11.8

6.5
6.4
6.0
5.4
4.9

1945
1946
1947
1948
1949

35.5
41.8
48.9
56.2
62.7

30.8
36.9
43.9
50.9
57.1

18.6
23.0
28.2
33.3
37.6

4.3
6.1
9.3
12.5
15.0

4.1
3.7
3.8
5.3
6.9

0.2
2.4
5.5
7.2
8.1

14.3
16.9
18.9
20.8
22.6

12.2
13.8
15.7
17.6
19.5

4.8
4.9
5.1
5.3
5.6

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
1958

130.0
144.5
156.6
171.2

120.9
134.6
146.1
160.0

88.2
99.0
107.6
118.0

38.9
43.9
47.2
50.2

14.3
15.5
16.5
19.7

24.6
28.4
30.7
30.5

49.3
55.1
60.4
67.8

32.7
35.6
38.5
42.0

9.1
9.9
10.5
11.2

1956- First quarter
Second quarter _
Third quarter
Fourth quarter

133.5
137.5
141.3
144.5

124.1
127.9
131.5
134.6

90. 7
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

50.5
52.4
54.1
55.1

33.4
34.2
34.9
35.6

9.4
9.6
9.8
9.9

1957: First quarter
Second quarter
Third quarterFourth quarter

147.3
150.4
153.7
156.6

137.2
140.1
143.3
146.1

101.1
103.4
105.7
107.6

45.1
45.9
46.5
47.2

15.7
15.9
16.1
16.5

29.4
30.0
30.4
30.7

55.9
57.5
59.2
60.4

36.2
36.7
37.5
38.5

10.1
10.3
10.4
10.5

1958- First quarter 3 3
Second quarter
Third quarter 3
Fourth quarter 3

159.1
162.6
166.7
171.2

148.5
151.7
155,7
160.0

109.3
111.7
114.8
118.0

47.7
48.3
49.2
50.2

17.1
17.7
18.6
19.7

30.6
30.6
30.6
30.5

61.6
63.4
65.6
67.8

39.1
40.0
40.9
42.0

10. 6
10.9
11.1
11.2

_

_

1 Derived figures.
Includes negligible amount of farm loans held by savings and loan associations.
Preliminary; fourth quarter by Council of Economic Advisers.
Source: Board of Governors of the Federal Reserve System, estimated and compiled from data supplied
by various Government and private organizations (except as noted).
2
3




193

TABLE D-47 .—Net public and private debt, 1929-58 *
[Billions of dollars]
Private

End of
period 2

Individual and noncorporate
Corporate
Fed- State
and
Nonfarm
eral
Total Gov- local
governern- 2 Total
ment ment
ComTotal Long- Short- Total Farm 3
merterm term
Mort- cial
ConTotal gage
and sumer
financial*

1929

190.9

16.5

13.2 161.2

88.9

47.3

41.6

72.3

12.2

60.1

31.2

22.4

6.4

1930
1931
1932
1933
1934

191.0
181.9
174.6
168.5
171.4

16.5
18.5
21.3
24.3
30.4

14.1
15.5
16.6
16.7
15.9

160.4
147.9
136.7
127.5
125.1

89.3
83.5
80.0
76.9
75.5

51.1
50.3
49.2
47.9
44.6

38.2
33.2
30.8
29.1
30.9

71.1
64.4
56.7
50.6
49.6

11.8
11.1
10.1
9.1
8.9

59.4
53.3
46.6
41.5
40.7

32.0
30.9
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
1937
1938
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
8.8

40.4
41.7
42.3
40.9
42.0

24.7
24.4
24.3
24.5
25.0

10.8
11.2
11.3
10.1
9.8

4.9
6.1
6.7
6.3
7.2

1940
1941
1942
1943
1944

189.9
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
39.8

31.9
39.8
49.0
54.5
54.3

53.0
55.6
49.9
48.8
50.7

9.1
9.2
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
586.4
611.8

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
329.7
348.2

142.1
162.5
171.0
179.5
182.8

60.1
66.6
73.3
78.3
82.9

81.9
95.9
97.7
101.2
100.0

108.8
119.7
135.5
150.2
165.4

12.2
13.6
15.1
16.9
17.6

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
18.4
20.8

21.4
22.6
27.4
31.2
32.3

1955
1956
1957 s
1958

672.2
699.8
725.8
757.9

231.5
225.4
224.4
232.5

38.4
42.7
46.7
50.9

402.3
431.7
454.7
474.5

212.1
224.2
232.8
236.0

90.0
97.4
106.0
113.5

122.2
126.7
126.8
122.5

190.2
207.5
221.9
238.5

18.8
19.5
20.3
22.0

171.4
188.0
201.7
216.5

108.8
121.2
131.7
144.3

24.0
24.6
25.2
27.5

38.7
42.1
44.8
44.7

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, se£ 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.
« Preliminary estimates by Council of Economic Advisers.
NOTE.—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).




194

GOVERNMENT FINANCE
TABLE D-48.—U. S. Government debt, by kind of obligation, 1929-58
[Billions of dollars]
Interest -bearing public debt
Gross
public
debt and
guaranteed
issues !

End of period

1929
1930
1931
1932
1933
1934
1935
1936
._
1937
1938
1939
1940
1941
.1942
1943
1944
1945
1946
1947
1948
--1949
1950
1951
1952
.
1953
1954
1955
1956
1957
1958
1957: January _ _
February
March
April
May
June.
July
August..
September
October
November
December _
1958: January
February..
March
April
May
-_
June
July
August
September
October
November
December

__

_ .

_. .

.

16.3
16.0
17.8
20.8
24.0
31.5
35.1
39.1
41.9
44.4
47.6
50.9
64.3
112.5
170.1
232.1
278.7
259.5
257.0
252.9
257.2
256.7
259.5
267.4
275.2
278.8
280.8
276.7
275.0
7 283. 0
276.3
276.4
275.1
274.1
275.3
270.6
272.6
274.0
274.5
274 2
274.9
275.0
274.7
274.8
272.7
275.2
275.7
276.4
275.6
278.6
276.8
280.3
283.2
7 283. 0

Marketable public
issues

Nonmarketable public issues

Shortterm
issues 2

United
States
savings
bonds

Treasury
bonds

3.3
2.9
2.8
5.9
7.5
11.1
14.2
12.5
12.5
9.8
7.7
7.5
8.0
27.0
47.1
69.9
78.2
57.1
47.7
45.9
50.2
58.3
65.6
68.7
77.3
76.0
81.3
79.5
82.1
92.2
79.6
80.0
79.1
79.1
79.5
74.9
77.9
79.4
81.0
80.8
81.9
82.1
82.5
78.1
75.2
78.3
78.3
75.7
75.8
81.6
81.9
86.4
89.6
92.2

11.3
11.3
13.5
13.4
14.7
15.4
14.3
19.5
20.5
24.0
26.9
28.0
33.4
49.3
67.9
91.6
120.4
119.3
117.9
111.4
104.8
94.0
76.9
79.8
77.2
81.8
81.9
80.8
82.1
83.4
80.8
80.8
80.8
80.8
80.8
80.8
80.8
80.8
80.8
81.4
81.4
82.1
82.1
86.3
87.7
87.7
87.6
90.9
90.5
87.6
85.7
85.7
85.7
83.4

0.2
.5
1.0
1.4
2.2
3.2
6.1
15.0
27.4
40.4
48.2
49.8
52.1
55.1
56.7
58.0
57.6
57.9
57.7
57.7
57.9
56.3
52.5
51.2
56.0
55.8
55.6
55.4
55.2
54.6
54.3
54.0
53.8
53.5
53.2
52.5
52.3
52.3
52.3
52.2
52.1
52.0
51.9
51.9
51.8
51.7
51.7
51.2

Treasury
tax and
savings
notes

2.5
6.4
8.6
9.8
8.2
5.7
5.4
4.6
7.6
8.6
7.5
5.8
6.0
4.5
(5)
6
(6)
()
(6)
(6)
(6)
6
(6)
(6)
( 6)
()
(6)
6
(6 )
(6)
(6)
( 6)
()
6
(6 )
(6)
()
(•)
(6)
(«)
(6)
(6)
(6)
(«)
(6)
(6)

Investment
bonds 3

1.0
1.0
1.0
1.0
13.0
13.4
12.9
12.7
12.3
11.6
10.3
9.0
11.6
11.5
11.4
11.3
11.2
11.1
11.0
10.9
10.7
10.5
10.3
10.3
10.2
10.1
9.8
9.7
9.7
9.6
9.5
9.3
9.2
9.1
9.1
9.0

Special
issues 4

0.6
.8
.4
.4
.4
.6
.7
.6
2.2
3.2
4.2
5.4
7.0
9.0
12.7
16.3
20.0
24.6
29.0
31.7
33.9
33.7
35.9
39.2
41.2
42.6
43.9
45.6
45.8
44.8
45.3
45.5
45.6
45.2
46.1
46.8
46.3
46.7
46.2
46.1
46.0
45.8
45.5
46.0
45.8
45.4
46.1
46.2
45.9
46.3
46.0
45.4
45.1
44.8

1
Total includes non-interest-bearing debt, fully guaranteed securities (except those held by the Treasury), Postal Savings bonds, prewar bonds, adjusted service bonds, depositary bonds, and armed forces
leave bonds, not shown separately. Not all of total shown is subject to statutory debt limitation.
2
Bills, certificates of indebtedness, and notes.
3
Series A bonds and, beginning in April 1951, Series B convertible bonds.
4
Issued to U. S. Government investment accounts. These accounts also held $9.7 billion of public
marketable and nonmarketable issues on December 31, 1958.
5 Less than $50 million.
6
The last series of treasury savings notes matured in April 1956.
7 Of this amount, $282.6 billion was subject to the statutory debt limitation of $288 billion.

Source: Treasury Department.




195

TABLE D--49 .—Estimated ownership of Federal obligations, 1939-58
[Par values 1, billions of dollars]
Gross public debt and guaranteed issues 2

End of period

1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
19588
1957: January
February
March
April
May
June.
July
August
September
October
November
December
1958: January
February
March
April
May
June
__
July
August
September
October
November 8...
December s _ _ _

Held by others
Held
by U.S.
GovMutual
ernsavings
State
Total ment
Misceland
Federal Com- banks Other
invest- Total Reserve mercial and in- corpor- local Individ- laneous
4
3
uals 6 invesment
Banks banks surance ations governtors 7
accomments s
counts
panies
47.6
50.9
64.3
112.5
170.1
232.1
278.7
259. 5
257.0
252.9
257.2
256.7
259.5
267.4
275.2
278.8
280.8
276.7
275.0
283.0
276.3
276.4
275.1
274.1
275.3
270.6
272.6
274.0
274.5
274.2
274.9
275.0
274.7
274.8
272.7
275. 2
275.7
276.4
275.6
278.6
276.8
280.3
283.2
283.0

6.5
7.6
9.5
12.2
16.9
21.7
27.0
30.9
34.4
37.3
39.4
39.2
42.3
45.9
48.3
49.6
51.7
54.0
55.2
54.5
53.9
54.1
54.2
53.7
54.9
55.6
55.2
55.8
55.4
55.4
55.3
55.2
55.1
55.4
55.4
55.2
55.8
55.9
55.6
56.0
55.6
55.1
54.8
54.5

41.1
43.3
54.7
100.2
153.2
210.5
251.6
228.6
222.6
215.5
217.8
217. 5
217.2
221.6
226.9
229.2
229.1
222.7
219.8
228.5
222.4
222.3
221.0
220.4
220.5
215.1
217.4
218.2
219.1
218.7
219.6
219.8
219.6
219.4
217.4
220.0
220.0
220.5
220.0
222.6
221.2
225.3
228.4
228.5

2.5
2.2
2.3
6.2
11.5
18.8
24.3
23.3
22.6
23.3
18.9
20.8
23.8
24.7
25.9
24.9
24.8
24.9
24.2
26.4
23.4
22.9
23.1
23.2
23.1
23.0
23.4
23.5
23.3
23.3
23.7
24.2
23.3
23.2
23.6
23.7
24.2
25.4
24.5
25.3
25.0
25.4
26.2
26.4

1
2

15.9
17.3
21.4
41.1
59.9
77.7
90.8
74.5
68.7
62.5
66.8
61.8
61.6
63.4
63.7
69.2
62.0
59.3
59.1
67.0
58.3
57.7
58.1
58.0
57.7
55.8
56.8
56.6
58.3
58.1
58.2
59.1
58.6
59.4
59.4
63.2
63.6
64.9
65.0
66.4
65.5
66.7
67.7
67.0

9.4
10.1
11.9
15.8
21.2
28.0
34.7
36.7
35.9
32.7
31.5
29.6
26.3
25.5
25.0
23.8
22.8
20.9
IP. 6
19.5
20.9
20.8
20.6
20.5
20.4
20.2
20.2
20.1
20.1
20.0
19.7
19.6
19.6
19.5
19.4
19.3
19.1
19.1
19.2
19.4
19.4
19.4
19.5
19.5

2.2
2.0
4.0
10.1
16.4
21.4
22.2
15.3
14.1
14.8
16.8
19.7
20.7
19.9
21.5
19.2
23.0
18.2
16.5
17.3
19.9
20.6
17.7
17.6
18.2
15.4
16.0
16.5
15.7
15.9
16.5
16.5
17.3
17.2
15.4
14.6
14.7
13.3
13.9
14.6
14.3
15.9
16.9
17.3

0.4
.5
.7
1.0
2.1
4.3
6.5
6.3
7.3
7.9
8.1
8.8
9.6
11.1
12.7
14.4
15.1
16.1
17.0
17.2
16.2
16.3
16.6
16.8
16.8
16.9
16.9
17.1
17.2
17.2
17.3
17.0
17.3
17.3
17.3
17.1
17.0
16.9
17.0
17.0
17.0
17.2
17.2
17.2

10.1
10.6
13.6
23.7
37.6
53.3
64.1
64.2
65.7
65.5
66.3
66.3
64.6
65.1
64.9
63.6
65.8
67.3
66.8
64.9
67.3
67.6
68.4
68.2
67.9
67.8
67.9
68.4
68.5
67.8
67.6
66.8
67.1
66.8
66.9
66.4
66.1
65.7
65.3
65.0
64.8
64.9
64.9
64.9

0.7
.7
.9
2.3
4.4
7.0
9.1
8.1
8.4
8.9
9.4
10.5
10.6
11.7
13.2
13.9
15.6
16.1
16.5
16.4
16.4
16.4
16.4
16.1
16.4
16.0
16.2
15.9
15.9
16.3
16.5
16.5
16.2
15.9
15.4
15.7
15.4
15.2
15.0
14.9
15.3
15.8
16.0
16.4

United States savings bonds, series A-F and J, are included at current redemption value.
Excludes guaranteed securities held by the Treasury. Not all of total shown is subject to statutory
debt limitation.
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 D-41, which are based on book values and relate only to banks
within the continental United States.
4
Exclusive of banks and insurance companies.
s Includes trust, sinking, and investment funds of State and local governments and their agencies, and
of 6Territories 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).




196

TABLE D-50.—Federal budget receipts and expenditures and the public debt, 1929-60
[Millions of dollars]
Net budget Budget ex- Surplus or Public debt
receipts 1 penditures deficit (-) at end 2of
year

Period

Fiscal year:
1929

_

3 861

3 127

4,058
3 116
1 924
2 021
3 064

3 320
3 577
4 659
4 623
6 694

738
462
—2 735
—2 602
—3 630

16 185
16 801
19 487
22* 539
27 053

3 730
4 069
4 979
5,615
4 996

6 521
8 493
7 756
6 792
8 858

2 791
—4 425
—2 777
—1 177
—3 862

28
33
36
37
40

701
779
425
165
440

5 144
7 103
12 555
21, 987
43,635

9 062
13 262
34 046
79 407
95, 059

—3 918
—6 159
—21 490
— 57 420
—51 423

42
48
72
136
201

968
961
422
696
003

44, 475
39, 771
39 786
41 488
37, 696

98 416
60,448
39 032
33 069
39 507

—53 941
—20 676
754
8 419
— 1 811

258
269
258
252
252

682
422
286
292
770

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
69 117
68,000

64, 570
66 540
69, 433
71 936
80,871

—4, 180
1 626
1,596
—2 819
-12,871

274 374
272 751
270 527
276 343
285,000

I9603--

77, 100

77, 030

70

285,000

Calendar year:
1946
_
1947
1948
1949

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

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

63, 358
70 994
72, 284
4
68, 700

66, 129
67 216
71, 692
4
75, 800

—2 771
3 779
592
4 _7; 100

280 769
276 628
274, 898
282, 922

1930
1931
1932
1933
1934

._

1935
1936
1937
1938
1939

_
-

-

1940
1941
1942
1943
1944

-_
_ .

1945
1946
1947
1948
1949

. -

. _

1950.
1951
1952.
1953
1954

_-.

_
.

1955
1956
1957
1958
19593

1950
1951
]952
1953
1954

.
-

.

1955
1956
1957 -.
1958

-.

734

16 931

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 Estimate.
« Estimated by Council of Economic Advisers from data available as of January 15, 1959. May therefore
differ from figures in Treasury Department monthly statement of receipts and expenditures to be released
about January 20, 1959.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department and Bureau of the Budget (except as noted).

197
489916 O—59




TABLE D-51.—Federal budget receipts by source and expenditures by function, fiscal years 7946-60
[Millions of dollars]
Budget expenditures by function

Budget receipts by source

Fiscal
year

All
Indi- Corpovidual ration
Total income income Excise other
taxes
retaxes
taxes
ceipts i

Veter- Agrimil
culans'
Major serv- ture
All
naand Inter- other
Total tional
ices
agriest expendand
itures 2
security bene- cultural refits sources

Budget
surplus
or deficit (-)

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
47,568
61, 391
64,825
64,655

15, 745
21,643
27, 913
30, 108
29,542

10, 448
14, 106
21,225
21, 238
21, 101

7,549
8,648
8,851
9,868
9,945

2,752
3,171
3,402
3,610
4,067

39, 617
44, 058
65, 408
74, 274
67, 772

13,009
22.444
43, 976
50,363
46,904

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
9,590
10,094
7,584

1955
1956
1957
1958
19593...

60,390 28, 747
68, 165 32,188
71, 029 35, 620
69, 117 34, 724
68,000 36,900

17, 861
20,880
21, 167
20,074
17,000

9,131
9,929
9, 055
8,612
8,467

4,650
5,169
5,187
5,708
5,633

64,570
66,540
69,433
71, 936
80, 871

40, 626
40,641
43, 270
44, 142
46, 120

4,457
4,756
4,793
5,026
5,198

4,389
4,868
4,526
4,389
6,775

6,438
6,846
7,308
7,689
7,601

8,661 —4,180
9,428
1,626
9,536
1,596
10, 689 -2, 819
15, 177 -12,871

21, 448

8,945

6,007

77,030

45, 805

5,088

5,996

8,096

12, 046

19603,. . 77, 100

40,700

-3, 122
3,510
-4,017
-9, 449
-3, 117

70

1
Includes employment taxes, estate and gift taxes, customs revenues, and miscellaneous receipts.
2 Includes expenditures for international affairs and finance (including 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 contingencies (for
estimates).
3 Estimate.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department and Bureau of the Budget.




198

TABLE D-52.—Government cash receipts from and payments to the public, 7946-60
LBillions of dollars]
Total

State and local 2

Cash
receipts

Calendar year:
1946
1947
1948
1949
1950
1951
1952.. .
1953
1954

.

.

Fiscal year:
1953
1954
1955
1956
1957
1958 8
1959

Cash
payments

Excess
of receipts
or of
payments
(-)

Cash
receipts

Cash
payments

Excess
of receipts
or of
paymerits
(-)

Cash
receipts

Cash
payments

52.9
57.4
60.0
57.9

Period

1955
1956
1957
1958 <

Federal 1

50.9
50.7
51.8
59.8

2.0
6.7
8.2
-1.8

41.4
44.3
44.9
41.3

41.4
38.6
36.9
42.6

(3)
5.7
8.0
-1.3

11.4
13.1
15.1
16.6

9.5
12.1
14.9
17.1

1.9
1.0
.2
-.5

60.4
79.1
93.1
93.4
93.3

61.1
78.3
94.7
99.3
95.2

-.6
.9
-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

18.0
19.9
21.7
23.2
24.7

19.1
20.2
21.6
23.0
25.6

-1.1
-.4
.1
.3
-.9

98.4
110.2
116.3
115.1

100.2
105. 2
116.3
124.2

-1.8
4.9
(3)
-9.1

71.4
80.3
84.5
81.7

72.2
74.8
83.3
88.8

-.7
5.5
1.2
-7.1

26.9
29.8
31.8
33.4

28.0
30.4
33.0
35.4

-1.1
-.6
-1.1
-2.0

93.9
95.6

99.1
96.1

-5.2
-.5

71.5
71.6

76.8
71.9

-5.3
-.2

22.4
24.0

22.3
24.2

.1
-.2

93.5
105.8
113.1
114.4

97.5
101.7
111.6
117.7

-4.0
4.1
1.5
-3.3

67.8
77.1
82.1
81.9
81.7

70.5
72.6
80.0
83.4
94.9

-2.7
4.5
2.1
-1.5
-13.2

25.7
28.7
31.0
32.5

27.0
29.1
31.6
34.3

-1.3
-.4
-.6
-1.8

93.5

92.9

.6

I960 8
1

Excess
of receipts
or of
payments
(-)

For derivation of Federal cash receipts and payments, see Budget of the United States Government for the
Fiscal Year ending June SO, 1960, and Table D-54.
2 Estimated by Council of Economic Advisers from receipts and expenditures in the national income
accounts. Cash receipts consist of personal tax and nontax receipts, indirect business tax and nontax
accruals, and corporate tax accruals adjusted to a collection basis. Cash payments are total expenditures
less Federal grants-in-aid and less contributions for social insurance. (Federal grants-in-aid are therefore
excluded from State and local receipts and payments and included only in Federal payments.) See
Table D-53.
a Less than $50 million.
4
Preliminary.
« Estimate.
NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department, Bureau of the Budget, Department of Commerce, and Council of Economic Advisers.




199

TABLE D-53.—Government receipts and expenditures as shown in the national income accounts,
1955-58*
[Calendar years, billions of dollars]
1956

1955

Receipt or expenditure

19583

1957

First SecFirst SecFirst SecFirst SecYear half 2 ond Year half 2 ond Year half 2 ond Year half 2 ond
half 2
half 3
half a
half*

Total government
Receipts
- Expenditures
Excess of receipts or of
expenditures (— )

101.5
98.6

98 3 104.4 110.3 108.8 112.0 116.2 116.4 116.0 114.5 110 8 118 1
97.6 99.4 104.1 101.8 106.4 114.5 113.7 115.8 124.5 121.6 127.4

2.9

.7

5.0

6.3

7.0

5.6

1.7

2.7

72 8

70 5

75.0

78.7

77.7

79.8

82.5

83.0

82.0

79.0

76 1

81 8

31 5

31 0

32 1

35 2

34 8

35 6

37 4

37 2

37 6

37.1

36 6

37 7

20.9

19.6

22.2

21.4

21.4

21.4

20.7

21.3

20.0

17.7

15.5

19.8

11.0

10.9

11.2

11.6

11.2

12.0

12.2

12.3

12.2

11.9

12.0

11.8

9.3

90

9.6

10.5

10 2

10 8

12.2

12.2

12.3

12.3

12.1

12 4

68 9

68 3

69 4

71 9

70 2

73 6

79 6

78 9

80.4

87 0

84 4

89 8

45.3
14.0
12.5
15

44.9
14.1
12 4
17

45.7 45.7
13.9 14.9
12.6 13.5
13 14

44.6
14.6
13.2
14

46.8 49.4
15.2 17.3
13.8 15.9
14 15

49.4
16.9
15.3
16

49.4
17.8
16.6
1.3

51.6
21.2
20.0
1.2

50.2
20.5
19.3
12

53.0
22.0
20.8
12

30
4.9

3.0
4.9

32
5.0

3.3
5.2

3.1
5.1

3.4
5.4

4.1
5.6

3.8
5.6

4.4
5.7

5.1
5.7

4.6
5.7

5.7
5.6

1.6

1.5

1.8

2.8

2.7

2.8

3.1

3.2

3.1

3.4

3.4

3.4

3.8

2.2

5.6

6.8

7.5

6.2

2.9

4.0

1.6 -8.1 -8.2 -8.0

.2 -10.0 -10.8 -9 4

Federal Government
Receipts
Personal tax and nontax receipts
Corporate profits tax
accruals
...
Indirect business tax
and nontax accruals.
Contributions for social insurance
E xpenditures
Purchases of goods and
services
Transfer payments
To persons
.- --Foreign (net)
Qrants-in-aid to State
and local governments
Net interest paid
Subsidies less current
surplus of Government enterprises
Excess of receipts or of
expenditures (— )
State and local governments:
Receipts
.. 31.7 30.8 32.6 34.9 34.2 35.6 37.8 37.2 38.4 40.6 39.4
Personal tax and non5.4
tax receipts
4.2
4.2
5.2
5.4
5.8
4.8
5.0
4.3
4.8
5.8
Corporate profits tax
9
.7
accruals
.9
10
10 10 10 10 10 10 10
Indirect business tax
21.2 22.5 24.0 23.6 24.4 25.4 25.2 25.6 26.7 26.2
and nontax accruals- 21.8
Contributions for so2.1
2.1
2.0
cial insurance 1.8
1.8
2.0
1.9
1.7
1.8
1.6
1.7
Federal grants-in-aid.. 3.0 3.0 3.2 3.3 3.1 3.4 4.1 3.8 4.4 5.1 4.6
32 7 32.3 33 2 35 5 34 7 36 2 39 0 38 6 39.8 42.6 41.8
Expenditures
Purchases of goods and
services
30.3 29.8 30.8 33.1 32.4 33.9 36.3 36.0 37.0 39.6 38.8
Transfer payments
4.0
4.3
3.6
3.6
4.0
3.8
4.3
3.6
3.6
3.5
3.5
.4
.6
.6
.6
Net interest paid
.5
.5
.5
.5
.5
.5
.5
Less: Current surplus
of Government en1.8
terprises _. .- .1.8
1.8
1.8
1.9
1.8
1.6
1.7
1.7
1.6
1.6

Excess of receipts or of
expenditures (— )
-1.0

-1.4

-.5

-.6

-.4

-.7 -1.2 -1.4 -1.4 -1.9

-2.4

42.0
5.9
10

27.2
2.2
5.7

43.4
40.4
4.4
.6
2.0

-1.4

1
These accounts, like the cash budget, include the transactions of the trust accounts. Unlike both the
conventional budget and the cash statement, they exclude certain capital and lending transactions. In
general, they do net 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
Preliminary; fourth quarter estimates by Council of Economic Advisers.
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).




20O

TABLE D-54.—Reconciliation of Federal Government receipts and expenditures in the
conventional budget and the consolidated cash statement with receipts and expenditures in the
national income accounts, fiscal years 1956-58
[Billions of dollars]
I^iscal yean

Receipts or expenditures

1956

1957

1958

RECEIPTS

Budget receipts
Less* Intragovernmental transactions _ _
._
Receipts from exercise of monetary authority. - _
Plus* Trust fund receipts
Equals: Federal receipts from the public (consolidated cash receipts) _ .
Less: Adjustment for agency coverage:
District of Columbia revenues
_.
Plus: Adjustments for netting and consolidation:
Federal Government contributions to:
Employee retirement funds
Veterans' life insurance funds
Federal Government employee contributions to employee
retirement funds _- .
. . _ ._ _
Interest dividends, and other earnings
Adjustments for timing:
Excess of taxes included in national income accounts over
cash collections:
Personal
Corporate profits
-..
.
Other
Miscellaneous
Less: Adjustments for capital transactions:
Realization upon loans and investments
Proceeds from sale of government property
Recoveries and refunds
Equals: Receipts —national income accounts. .._ _
_. .

68 2
27

2

71 0
32
0
14 4
82 1
2

2
1

o

o

.6
— 4

7
5

7
g

2
.7
— 4

_ 3
1
2
2

_ i
—2 3
1
_ 2

3
5
.6
76.4

3
4
4
81.7

3
3
5
78 3

66.5
2 7
9
9.4
.3
72.6

69 4
32
— 8
13 0
.0
80.0

71 9
35
5
16 1
-.6
83.4

.2

.2

.2

2
.1

5

o

o

.6
— .8

.7
— 6

.7
-6

.4

6

.3

4
.3
-1.3

— .2
-.8
— 1.0

.1
.6
-1.0

.1
1.1
.0
.8
-.2
69.7

1.0
.4
.0
.5
.7
76.5

.1
1.1
.1
-.2
.4
82.5

o

11 7
77. 1

o

5

69 1
35
1
16 3
81 9
2
7

EXPENDITURES

Budget expenditures
- --- _ _ _
Less* Intragovernmental transactions
Accrued interest and other noncash expenditures (net)
Plus* Trust fund expenditures
Government-sponsored enterprise expenditures (net)
-- -.
Equals: Federal payments to the public (consolidated cash expenditures) . _
Less: Adjustment for agency coverage:
District of Columbia expenditures
._. _ ..
Plus: Adjustments for netting and consolidation:
Federal Government contributions to:
Employee retirement funds
Veterans' life insurance funds
Federal Government employee contributions to employee
retirement funds
Interest received and proceeds of government sales
Adjustments for timing:
Accrued interest on savings bonds and Treasury bills
Commodity Credit Corporation guaranteed non-recourse
loans (net change)
Increase in clearing account
._ _ ._ .
M i«?cellaneous
Less: Adjustments for capital transactions:
Loans and other adjustments:
Federal National Mortgage Association secondary market
operations
Other
-- - Purchase of land and existing assets
Trust and deposit fund expenditures
Redemption of International Monetary Fund notes _ _ _
Equals* Expenditures — national income accounts

NOTE.—Detail will not necessarily add to totals because of rounding.
Sources: Treasury Department, Bureau of the Budget, and Department of Commerce.




2OI

7

TABLE D—55.—^-State and local government revenues and expenditures, selected fiscal years, 1927—57
[Millions of dollars]
Revenues by source 2

Fiscal year J

Expenditures by function 2

ReveSales
nue
and Indi- Corpo- from
All
Prop- gross vidual ration Fed- other
net
Total erty
re- income income eral reve3
taxes ceipts taxes
taxes Gov- nue
taxes
ernment

Public All
EduTotal cation High- wel- other
ways
fare

4

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
SCO

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, 417
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, 307
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
6,252
6,897

22, 787 7,177
26, 098 8,318
27, 910 9,390
30, 701 10, 557

3,803
4,650
4,987
5,527

2,940 8,867
2,788 10, 340
2,914 10, 619
3,060 11,556

1955
1956 .
19575

31, 073 10, 735
34, 667 11, 749
38, 310 13, 097

7,643
8,691
9,461

1,237
1,538
1,767

744
890
984

3,131
3,335
3,838

7,584 33, 724 11,907
8,465 36, 711 13, 220
9,163 40, 438 14,501

6,452
6,953
7,762

3,168 12, 196
3,139 13, 397
3,411 14,763

1
2

Fiscal years not the same for all governments.
Excludes revenues or expenditures of publicly owned utilities and liquor stores, and of insurance-trust
activities. Intergovernmental receipts and payments between governments in these categories are also
excluded.
s 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.
5
Preliminary.
NOTE.—Data are not available for intervening years.
See Table D^47 for net debt of State and local governments.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (Bureau of the Census).




202

CORPORATE PROFITS AND FINANCE
TABLE D-56.—Profits before and after taxes', all private corporations. 1929-58
[Billions of dollars]
Corporate profits after taxes

Corporate
profits
before
taxes

Corporate
tax
liability 1

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

3.1
5.7
6.2
3.3
6.4

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

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

19.0
22.6
29.5
33.0
26.4

10.7
9.1
11.3
12.5
10.4

8.3
13.4
18.2
20.5
16.0

4.7
5.8
6.5
7.2
7.5

3.6
7.7
11.7
13.3
8.5

1950
1951
1952
1953
1954

40.6
42.2
36.7
38.3
34.1

17.9
22.4
19.5
20.2
17.2

22.8
19.7
17.2
18.1
16.8

9.2
9.0
9.0
9.2
9.8

13.6
10.7
8.3
8.9
7.0

1955
1956
1957

44.9
45.5
43.4
<36.4

21.8
22.4
21.6
18.5

23.0
23.1
21.8
17.8

11.2
12.0
12.4
12.3

11.8
11.0
9.4
5.6

Period

.

1935
1936
1937
1938
1939

.

1940
1941
1942
1943
1944

.
.

1945
1946
1947
1948
1949 .

19583

_ ..

.-

.

Total

Dividend
payments

Undistributed
profits

(2)

-.7
-.2
-.9
1.2

Seasonally adjusted annual rates
1956: First quarter
Second quarter
_ .
Third quarter
Fourth quarter, _ _ .
1957: First quarter
Second quarter
Third quarter
Fourth quarter...

.

.

.

_ __

1958: First quarter.
Second quarter
Third quarter
Fourth quarter 3 _ ...

...
...

46.2
44.8
44.3
46.7

22.8
22.1
21.8
23.0

23.4
22.7
22.4
23.7

11.7
12.0
12.2
11.8

11.7
10.7
10.2
11.9

46.1
43.5
44.2
39.9

__ __ .

23.0
21.7
22.0
19.9

23.1
21.8
22.1
20.0

12.5
12.6
12.7
12.0

10.6
9.2
9.4
8.0

31.7
32.0
37.9
M4.0

16.1
16.3
19.3
22.4

15.5
15.7
18.6
21.6

12.5
12.4
12.5
11.8

3.0
3.3
6.1
9.8

1

Federal and State corporate income and excess profits taxes.
2 $48 million.
3
Preliminary; fourth quarter by Council of Economic Advisers.
4
Provisional.
NOTE.—No allowance has been made for inventory valuation adjustment. See Table D-9 for profits
before taxes and inventory valuation adjustment.
Series revised beginning 1946. For details, see U. S. Income and Output, A Supplement to the Survey of
Current Business, 1959.
Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce (except as noted).




203

TABLE D-57.—Relation of profits before and after taxes to stockholders' equity and to sales,
private manufacturing corporations, by asset size class, 1956-58
[Thousands of dollars}
Period

All asset
sizes

Under 250

250-999

1,000-4,999

5,000-99,999

100,000 and
over

Ratio of pro fits (annual rate) to stockholders' equity— percent
Before After Before After Before After Before After Before After Before After
taxes taxes taxes taxes taxes taxes taxes taxes taxes taxes taxes taxes
1956:
First quarter
Second quarter, _ _
Third quarter
Fourth quarter...

23.8
24.2
20.2
22.3

12.5
13.0
11.0
12.6

17.3
24.0
25.2
13.0

10.3
15.6
15.3
5.8

18.9
22.1
23.0
12.8

9.5
11.5
11.7
5.8

21.4
21.5
21.4
18.9

10.6
10.4
10.7
9.1

22.8
24.1
22.4
22.4

11.2
12.0
11.1
11.4

25.4
24.9
18.6
24.0

13.7
13.9
10.8
14.5

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

22.5
21.6
19.1
16.8

11.9
11.6
10.5
9.8

15.6
19.4
18.2
5.5

8.4
11.1
11.0
.7

15.7
19.2
20.4
7.4

7.5
10.0
10.1
2.4

18.8
19.7
18.7
12.2

8.9
9.6
9.1
5.4

20.8
21.4
20.0
16.6

10.1
10.6
10.0
8.6

24.5
22.2
18.8
18.7

13.6
12.4
10.9
11.8

1958:
First quarter
Second quarter. _.
Third quarter

12.9
13.9
15.9

6.8
7.8
9.0

1.5 -3.0
9.2 4.7
16.7 10.3

7.6
12.4
16.3

2.1
5.7
8.9

8.9
13.0
16.8

2.9
5.9
8.0

12.9
14.3
17.0

6.1
7.1
8.5

14.3
14.1
15.3

8.4
8.6
9.3

Profits per dollar of sales— cents
Before After Before After Before After Before After Before After Before After
taxes taxes taxes taxes taxes taxes taxes taxes taxes taxes taxes taxes
1956:
First quarter
10.2
Second quarter
10.3
Third quarter
9.0
Fourth quarter. . . 9.3

5.3
5.5
4.9
5.2

3.3
4.6
4.9
2.4

1.9
3.0
3.0
1.1

4.6
5.2
5.3
2.9

2.3
2.7
2.7
1.3

6.9
6.9
6.9
5.9

3.4
3.3
3.5
2.9

9.8
10.1
9.7
9.4

4.8
5.0
4.8
4.8

13.1
12.8
10.5
11.9

7.0
7.1
6.1
7.2

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

9.7
9.4
8.5
7.6

5.1
5.0
4.7
4.4

3.1
3.7
3.5
1.0

1.7
2.1
2.1
.1

3.7
4.5
4.7
1.8

1.8
2.3
2.3
.6

6.3
6.3
6.0
3.9

3.0
3.1
2.9
1.7

9.0
9.1
8.8
7.4

4.4
4.5
4.4
3.9

12.4
11.6
10.3
10.2

6.9
6.5
6.0
6.5

1958:
First quarter
_
Second quarter, _.
Third quarter

6.4
6.8
7.7

3.4
3.8
4.4

.3
1.9
3.3

-.6
.9
2.0

1.9
2.9
3.8

.5
1.4
2.1

3.1
4.4
5.4

1.0
2.0
2.6

6.4
6.9
8.0

3.0
3.4
4.0

8.7
8.6
9.4

5.1
5.2
5.7

NOTE.—Data on a comparable basis are not available for earlier periods. For details concerning compilation of the series, see Quarterly Financial Reports for U. S. Manufacturing Corporations, Federal Trade
Commission and Securities and Exchange Commission.
Sources: Federal Trade Commission and Securities and Exchange Commission.




204

TABLE D-58.—Relation of profits after taxes to stockholders' equity and to sales, private manufacturing corporations, by industry group, 1956-58
Durable goods industries

Period

All
private
manufacturing
corporations

Lumber
and Furwood niture
prod- and
ucts fix(except tures
furniture)

PriStone, mary
clay, iron
and
and
glass steel
prod- inucts dustries

Primary
nonferrous
metal
industries

MaFab- chinricated ery
(exmetal cept
prod- elecucts trical)

MisEleccellatrical MoIn- neous
ma- tor Other stru- manchin- vehi- trans- ments ufacery, cles porta- and turreequip- and tion
ing
ment, equip- equip- lated (inand ment ment prod- cludsupucts ing
plies
ordnance)

Ratio of profits after Federal taxes (annual rate) to stockholders' equity — percent
1956:
First quarter
Second quarter..
Third quarter.-Fourth quarter..

12.5
13.0
11.0
12.6

9.1
11.0
9.0
5.6

10.7
11.4
13.0
11.2

12.6
17.2
15.9
13.6

14.7
15.1
6.0
15.1

19.9
18.0
13.9
14.1

10.9
11.5
11.0
9.4

11.9
14.2
12.0
12.3

10.3
12.1
11.6
11.4

16.7
13.1
6.9
15.7

14.3
16.7
13.6
16.1

8.7
11.9
12.5
16.3

9.7
10.4
13.3
13.0

1957:
First quarter
11.9
Second quarter.. 11.6
Third quarter. .. 10.5
Fourth quarter _. 9.8

2.0
6.2
6.5
4.1

7.3
9.2
9.7
7.8

10.0
13.7
13.8
11.9

13.8
13.0
9.9
8.9

12.4
9.7
8.1
7.1

9.5
10.9
11.0
5.8

12.3
13.0
10.1
7.5

13 9
12^9
11.5
11.9

18.8
15.3
9.2
13.6

14.8
16.4
13.9
13.8

10.6
12.4
11.6
13.2

6.9
7.5
10.4
5.8

.2
3.1
11.0

2.0
3.4
8.7

4.0
11.1
14.9

5.3
6.5
6.5

5.7
4.6
5.6

4.9
7.3
8.8

5.7
7.7
7.2

8.5
9.2
10.3

8.3
5.9
1.6

11.0
9.9
10.1

6.9
9.3
12.1

1.0
6.9
14.7

1958:
First quarter
Second quarter _Third quarter. ._

6.8
7.8
9.0

Profits after taxes per dollar of sales — cents
1956:
First quarter
Second quarter ..
Third quarter. _.
Fourth quarter..

5.3
5.5
4.9
5.2

4.4
4.7
3.8
2.5

3.1
3.3
4.0
3.1

7.3
9.1
8.6
7.8

7.3
7.2
4.1
7.5

10.2
9.8
8.1
8.7

4.2
4.2
4.0
3.5

5.2
5.8
5.3
5.2

3.6
4.0
3.9
3.5

6.0
5.0
3.3
5.8

3.6
3.8
3.2
3.2

4.5
5.8
6.1
6.6

3.2
3.4
4.1
3.8

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

5.1
5.0
4.7
4.4

1.0
2.9
3.1
2.1

2.3
2.8
3.1
2.4

6.6
8.1
7.8
7.4

7.1
7.0
6.1
5.8

8.1
6.6
6.0
5.5

3.7
4.1
4.2
2.3

5.3
5.5
4.7
3.7

4.5
4.3
4.0
4.0

6.3
5.7
4.0
5.4

3.2
3.3
3.1
2.9

5.3
5.8
5.7
6.0

2.4
2.4
3.2
1.9

1958:
3.4
First quarter
Second quarter. . 3.8
Third quarter. .. 4.4

.1
1.6
5.0

.7
1.2
2.8

3.1
7.3
8.9

4.2
5.0
5.0

4.8
3.9
4.4

2.2
3.1
3.5

3.1
3.9
3.9

3.2
3.5
3.9

3.7
2.9
1.0

2.6
2.3
2.5

3.7
4.8
6.2

.(>
2.3
4.7

See footnotes at end of table, p. 206.




205

TABLE D-58.—Relation of profits after taxes to stockholders' equity and to sales, private manufacturing corporations, by industry group, 1956—58—Continued
Nondurable goods industries

Period

Food
TexToand
tile
kin- bacco mill
mandred ufacprod- tures products
ucts

ProdPrintucts of
ing
petroand Chemleum
Apparel Paper pub- icals Petro- and Rub- Leather
and
and
and allied lishand leum coal
ber
ing
related prod- (ex- allied refin(ex- prod- leather
prodprod- ucts cept prod- ing
cept
ucts
ucts
ucts
petronews- ucts
leum
parefinpers)
ing)

Ratio of profits after Federal taxes (annual rate) to stockholders' equity — percent
1956:
First quarter
Second quarter
Third quarter
Fourth quarter

82
9.9
10.4
8.7

10 0
12.0
12 7
12.1

6.4
4.8
5.5
6.4

6.8
4.5
10.9
10.0

12.1
12.2
11.0
11.3

16.3
15.0
11.0
10.0

15.0
14.7
13. 1
13.9

13.1
14.0
13.2
15.3

7.7
11.1
12.0
8.4

11.9
13.1
11.0
12.8

96
6.6
63
6.4

1957:
First quarter
Second quarter
Third quarter
Fourth quarter

7.4
8.4
10.4
8.3

10.3
11.9
13.9
13.8

4.4
4.4
4.8
3.4

6.7
5.9
9.7
3.0

10.2
9.0
8.7
7.8

12.3
14.8
11.9
8.0

13.7
13.9
13.1
12.3

14.4
11.8
11.1
12.5

4.3
8.2
10.8
7.6

11.5
11.6
10.9
10.6

6.6
6.5
6.9
8.0

1958:
First quarter
Second quarter
Third quarter

6.9
8.6
9.9

11.8
13.3
14.5

.9
2.7
5.2

3.4
1.3
9.5

6.8
7.6
7.4

8.3
9.3
11.5

9.9
11.3
12.0

8.9
8.2
10.4

-.8
6.2
9.8

6.7
8.1
11.3

4.1
3.2
8.4

Profits after taxes per dollar of sales — cents
1956:
First quarter
Second quarter
Third quarter
Fourth quarter

2.2
2.6
2.7
2.2

4.5
5.0
5.3
5.1

2.8
2.2
2.6
2.8

1.4
1.0
2.1
1.9

6.4
6.4
5.9
5.9

5.4
5.0
3.7
3.0

8.5
8.1
7.6
7.9

10.6
12.0
11.4
12.3

3.8
4.7
5.3
3.8

4.3
4.6
4.1
4.7

2.8
1.9
1.8
1.8

1957:
First quarter
Second quarter
Third quarter
Fourth quarter

2.0
2.2
2.6
2.1

4.7
4.9
5.5
5.4

2.0
2.0
2.2
1.5

1.4
1.2
1.8
.6

5.7
4.9
4.9
4.5

4.0
4.8
3-. 8
2.5

7.8
7.9
7.6
7.3

11.0
10.2
9.8
11.3

2.1
3.6
4.4
3.4

4.4
4.3
4.0
4.1

1.8
1.9
2.0
2.4

1958:
First quarter
Second quarter
Third quarter

1.8
2.2
2.5

5.1
5.2
5.5

.4
1.3
2.4

.7
.3
1.7

4.1
4.5
4.3

2.8
3.3
4.0

6.4
6.7
7.0

8.2
8.2
9.9

-.5
2.9
3.9

3.0
3.4
4.5

1.3
1.0
2.4

NOTE.—Data on a comparable basis are not available for earlier periods. For explanatory notes concerning
compilation of the series, see Quarterly Financial Reports for U. S. Manufacturing Corporations by Federal
Trade Commission and Securities and Exchange Commission.
Sources: Federal Trade Commission and Securities and Exchange Commission.




206

TABLE D-59.—Sources and uses of corporate Junds, 1947-58l
[Billions of dollars]
Source or use of funds
Total uses
Plant and equipment outlays
Inventories (change in book
value).. .-.
Change in customer net receivables 3
Cash and U. S. Government
securities
Other assets
._
Total sources
Internal sources
Retained profits and depletion allowances
Depreciation and amortization allowances
External sources
Change in Federal income
tax liability
Other liabilities
Change in bank loans and
mortgage loans
Net new issues
Discrepancy (uses less sources)
1
2
3
4
8

1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 19582
28.2 27.0 16.8 36.5 36.8 27.3 28.2 24.0 45.1 39.9 39.3

33.5

17.0 18.8 16.3 16.9 21.6 22.4 23.9 22.4 24.2 29.9 32.7

26.5

7.1

4.2 -3.6

9.8

9.8

1.3

3.1

2.8

.9

5.0

2.0

3.1

1.0

1.0
.2

3.2

4.5
.3

2.8
.6

.1

1.8 -1.6

6.7

8.4

1.7 -4.5

6.4

5.0

4.4

6.5

5.0 —4.3 — 1.8
.9 2.3
2.8

2.5
2.5

27.9 27.8 15.8 35.4 36.9 28.1 30.0 22.4 44.8 41.5 41.2

33.5

16.6 18.8 14.9 20.8 19.0 17.8 19.7 19.8 26.6 27.9 28.5

27.5

7.4

(4)

11.4 12.6

5.2

6.2

11.3

9.0

(4)

7.8

(4)

7.9

(4)

.8

8.8

56.0

9.0 10.4 11.8 13.5 15.7 17.7 19.7

21.5

2.6 18.2 13.6 12 7

6.0

7.8 13.0 10.0
7. 1

.4

2.4
1.8

.9 14.6 17.9 10.3 10.3

6.3 10.9 10.2

2.1
1.5

.9 —2.2
.4
.5

7.3
1.0

4.3 -3.1
1.9 2.4

.6 -3.1
.4
2.2

3.8 — 1.4 -1.9 -3.0
2.1 2.0 1.9 (4)

3.3
4.4

1.8 —2.3
5.9 4.9

2.6
3.7

5.4
6.3

.4 -.6
7.1 5.9

5.4
6.9

.3 -.8

1.0

3.1
7.9

1.1 — .1 -.8 -1.8

1.6

5.2 1.8 -1.0
7.8 10.9 10.0

.3 -1.6 -1.9

(4)

Excludes banks and insurance companies.
Preliminary estimates.
Receivables are net of payables, which are therefore not shown separately.
Less than $50 million.
Preliminary estimate by Council of Economic Advisers.

NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Commerce based on Securities and Exchange Commission and other financial
data (except as noted).




2O7

TABLE D-60.—Current assets and liabilities of U. S. corporations, 1954-58l
[Billions of dollars, end of period]
19 57

Asset or liability

1958

1954

1955

1956

194.6

224.5

235.9

235.2

234.9

239.5

239.9

232.8

231.0

236.0

33.4

34.6

35.1

32.3

33.0

33.7

35.0

32.6

34.5

35.5

19 2

23.0

18.2

17.7

15.4

15.7

16.5

15.4

13.3

14.3

2.4

2.3

2.6

2.5

2.5

2.4

2.8

2.7

2.6

2.7

71.2
65 3
3.1

87.1
72 8
4.7

94.5
80.4
5.1

94.9
5.5

96.1
82.4
5.4

98.7
83.2
5.7

97.5
82.2
5.9

94.6
81.4
6.2

96.0
78.3
6.3

99.9
77.3
6.3

99.7

121. 5

126.8

124.2

122.8

126.6

126.5

118.0

114.5

117.2

Advances and prepayments, U. S. Govern2.4
ment 2 ._ _
Other notes and accounts
payable
59.3
Federal income tax liabilities
15.5
Other current liabilities. . 22.5

2.3

2.4

2.5

2.6

2.6

2.3

2.1

1.9

1.8

73.5

78.0

77.0

77.3

78.3

77.6

73.2

72.1

73.1

19.3
26.5

17.9
28.6

15.4
29.4

13.1
29.7

14.8
31.0

16.0
30.6

12.8
29.9

10.1
30.4

11.7
30.6

103.0

109.1

111.0

112. 1

112.9

113.5

114.8

116.6

118.8

Total current assets
Cash on hand and in
banks.
U. S. G o v e r n m e n t
securities
Receivables from U. S.
Government 2
Other notes and accounts
receivable.
Inventories
Other current assets 3
Total current liabilities

Net working capital

94.9

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

1

All corporations in the United States, excluding banks, savings and loan associations, and insurance
companies. Data for 1954-55 are based on Statistics of Income, covering virtually all corporations in the
United States. Statistics of Income data may not be strictly comparable from year to year because of changes
in the tax laws, basis for filing returns, and processing of data for compilation purposes. Data for 1956-58
are estimates based on data compiled from many different sources, including data on corporations registered
with the Securities and Exchange 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.




208

TABLE D—61.—State and municipal and corporate securities offered, 1934-58l
[Millions of dollars]
Corporate securities offered for cash 2
State
and
Proposed uses of net proceeds 4
Gross proceeds 3
municipal securities
New money
offered
for cash
Retire- Other
Com- Pre- Bonds
(prin- Total mon ferred and Total
Plant Work- ment purcipal
of sestock stock notes
and
ing
amounts)
Total equip- capi- curities poses
tal
ment

Period

1934. .

939

397

19

6

372

384

57

32

26

231

95

1,232
1,121
908
1,108
1,128

2,332
4,572
2,310
2,155
2,164

22
272
?85
25
87

86
271
406
86
98

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
3,368
1,100
1,206
1,695

193
204
148
222
95

1940
1941
1942
1943
1944

1,238
956
524
435
661

2,677
2,667
1,062
1,170
3, 202

108

183
167
112
124
369

2,386
2.390
917
990
2,670

2,615
2,623
1,043
1,147
3,142

569
868
474
3C8
657

424
661
287
141
252

145
?07
187
167
405

1,854
1,583
396
739
2,389

192
172
173
100
96

1945
1946
1947
1948
1949 _

795
1,157
2,324
2,690
2,907

6,011
6,900
6,577
7,078
6,052

397
758
891 1,127
779
762
614
492
736
425

4, 855
4,882
5,036
5,973
4,890

5,902
6,757
6,466
6,959
5,959

1,080
3,279
4, 591
5,929
4,606

638
2,115
3,409
4,221
3,724

442
1,164
1,182
1,708
882

4,555
2,868
1,352
307
401

267
610
524
722
952

3,532
3,189
4.401
5,558
6,969

6,361
7,741
9,534
8,898
9,516

811
1,212
1,369
1,326
1,213

631
838
564
489
816

4,9?0
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, 11C

1,041
1,421
1,868
2,313
1,670

1,271
486
664
260
1,875

984
589
537
535
709

1955
1956
1957
1958«

5, 977
5,446
6,958
7,400

10, 240
10, 939
12, 884
11,518

2,185
2,301
2,516
1,335

635
636
411
544

7,420
8,002
9,957
9,640

10, 049
10, 749
12, 661
11, 331

7.957
9,663
11, 784
9,926

5, 333
6,709
9,040
7,841

2,624
2,954
2,744
2,084

1,227
364
214
553

864
721
663
852

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

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
725
732
626

106
130
86
42

155
215
187
164

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

1,758
1,689
1,549
1,962

3, 558
3,258
2,997
3,071

753
765
404
593

98
139
72
102

2,706
2,354
2,521
2,376

3,493
3,194
2,950
3,023

3,180
2,948
2,809
2,847

2,591
2,238
1,955
2, 255

589
710
853
592

49
46
51
69

264
201
91
107

1958: First quarter...
Second quarter.
Third quarter. .
Fourth quarter B_

2,206
2,228
1,668
1,283

3,314
2,908
2,944
2,352

287
212
344
493

182
135
104
122

2,845
2,562
2,496
1,737

3,269
2,860
2,896
2,305

3,069
2,278
2,582
1,997

2,560
1,896
1,936
1,449

509
382
645
548

135
238
112
68

66
344
203
240

1935
1936
1937
1938
1939

1950
1951
1952
1953
1954

.

- -

no

34
56
163

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.




209

TABLE D-62.—Common stock prices and earnings and stock market credit, 1939-58
Stock market credit
Common
stock
prices
index,
1939=100
(SEC) i

Period

Common
stock
price/
earnings
ratioindustrials
(Standard
& Poor's) 2

Customer credit (excluding U. S.
Government securities)

Total

Net debit
balances 3

Bank loans
to brokers
and
Bank loans dealers 5
to 4
"others"

Millions of dollars

15.06

(6)

(6)

(6)

715

10.22
7.92
12.18
14.40
16.07

6

.-

94.2
85.7
74.9
99.2
108.1

6
(6)
()
(6)
(6)
6

(6)
(•)
6
(6 )
()

353

584
535
850
1,328
2,137

.

131.2
149.4
130.9
132.7
127.7

19.74
13.90
8.94
6.45
6.88

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

154.1
184.9
195.0
193.3
229.8

7.03
9.54
10.91
9.56
12.90

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
1958

304.6
345.0
331.4
340.9

12.83
14.19
12.24
(«)

4,030
3,984
3,576
(«)

2,791
2,823
2,482
(«)

1,239
1,161
1,094
1,270

2,852
2,214
2,190
2,504

1957: January
February
..
March
April
May
June
-- -

338.2
325. 1
328.5
338.6
352.2
354. 6

13.10

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

4,004
3,929
3,882
3,643
3,577
3,576

2,885
2,833
2,789
2,568
2,517
2,482

1,119
1,096
1,093
1,075
1,060
1,094

1,660
1,810
1,748
1,642
1,610
2,190

3,554
3,679
3,863
3,980
4,069
4,218

2,487
2,580
2,665
2,735
2, 856
2,921

1,067
1,099
1,198
1,245
1,213
1,297

1, 645
1,882
2,070
2,749
2, 204
3,170

4,252
4,199
4,308
4,369
4,423
(«)

3, 021
3,013
3,109
3,188
3,245
O

1,231
1,186
1,199
1,181
1,178
1,270

2, 308
1, 665
1,671
1,641
1, 915
2,504

1939

100.0

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

-.

July
August
September _ _ _ _
October
November
December
1958: January February
March
April
May
Tune
July
August
September
October
November
December

-__

.

---

361.8
343.2
327.9
306.4
301.8
298.5

14.36

12.76
12.24

304.7
304.0
310.8
311 9
322.9
330.6

13.70

339. 2
351.7
360.5
376.4
387.8
392.8

18.20

15.92

(«)

1
2

()

()
(•)
(«)
6
(6)
()

Based on 265 stocks.
Based on 50 stocks for 1939-56 and 425 stocks beginning 1957. Ratio is obtained by dividing aggregate
market value at end of period by aggregate earnings for 12 months ending with period shown.
3
As reported by member firms of the New York Stock Exchange carrying margin accounts. Includes
net debit balances of all customers (other than general partners in the reporting firm and member firms of
national exchanges) whose combined accounts net to a debit. Balances secured by U. S. Government
obligations are excluded. Data are for end of period.
4
Loans by weekly reporting member banks to others than brokers and dealers for purchasing or carrying
securities except TJ. S. Government obligations. However, some U. S. Government securities are
included after 1952. Series revised beginning July 1946 and March 1953. Data are for last Wednesday of
period.
5
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.
6
Not available.
Sources: Securities and Exchange Commission, Board of Governors of the Federal Reserve System.
Standard & Poor's Corporation, and New York Stock Exchange.




2IO

TABLE D-63.—Business population and business failures, 1929-58
Operating businesses and
business turnover (thousands of firms) i

Period

Business failures 3 <

New
business
DisincorOper- New con- Busi- poratinating busi- ued ness tions
busi- ness- busi- trans- (numnesses 2 es s ness- fers s ber) 3
ess

1929
3, 029. 0
1930
2, 993. 7
1931
2, 916. 4
1932
2, 828. 1
1933.
2, 782. 1
1934
2, 884. 0
1935
2,991.9
1936
3, 069. 8
1937
3, 136. 3
1938
3, 073. 7
1939
3, 222. 2
1940 . . _
3. 318. 9
1941
3. 276. 0
194? .
3, 295. 3
1943.... ._
3, 030. 0
1944
2, 839. 1
1945
2, 995. 4
1946
3, 242. 5
1947- . .
3, 651. 2
1948
3, 872. 9
1949
3, 984. 2
1950 _
4, 008. 7
1951
4, 067. 3
1952
4, 121. 3
1953.
4, 178. 8
1954
. 4, 185. 3
1955
.
4, 189. 0
1956
4, 245. 2
1957
4, 289. 0
1958
4, 322. 7
1957:
January
4, 289. 0
February...
March
April..
May
June
July
4. 323. 2
August .
September. October
November..
December__
1958:
January
4, 322. 7
February
March
April
May.. _
June
July
August
September..
October
November
December

(6)
(6)
(6)
(6)
(6)
(6)
(6)
(6)
6
(6 )
(6)
()
275.2
290.0
121.2
146.0
330.9
422.7
617.4
460.8
393.3
331.1
348.2
363.2
363.9
340.5
334.2
380.4
380.8
365.6

(6)
(6)
(6)
(6)
(6)
(6)
(6)
(•)
6
(6 )
(6)
()
318.1
270.7
386.5
337.0
174.6
175.6
208.7
239.2
282.0
306.5
289.6
309.3
306.3
334.0
330.6
324.1
337.0
332.0

(6)
(6)
6
(6 )
(6)
(6 )
(•)
(6)
CO
(6)
(6)
()
(6)
6
(6)
(•)
(6)
(6)
(6)
(6)
(6)
<•)
6
()
6
6
(8)
(6)
6
(6)
6
()
6
359.4
6
473.2
626.9 132, 916
571.9 112, 638
501.3 96, 101
434.7 85, 491
419.4 92, 925
378.3 83, 649
374.9 92, 819
356.2 102, 545
319.7 117, 164
327.0 139, 651
327.3 140, 775
341.0 136, 697
150, 268

()
()
(•))
(
()
()
()

Amount of current
liabilities (millions of
dollars)

Number of failures
Business
failure
rate »

Liability size
class
Total

Liability size
class

Total
Under $100,000
Under $100,000
and
and
$100,000 over
$100,000 over

103.9 22, 909 22, 165
121.6 20, 355 25,408
133.4 28. 285 27, 230
154.1 31,822 30, 197
100.3 7 19, 859 718,880
61.1 12, 091 11, 421
61.7 12, 244 11. 691
47.8
9,607
9,285
45.9
9,490
9,203
61.1 12, 836 12,553
69.6 14, 768 14,541
63.0 713,619 7 13, 400
54.5 11,848 11, 685
44.6
9,405
9,282
16.4
3,221
3,155
6.5
1,222
1,176
4.2
809
759
5.2
1,129
1,002
3,474
14.3
3,103
20.4
5, 250
4,853
34.4
9,246
8,708
34.3
9,162
8,746
30.7
8,058
7,626
28.7
7,611
7,081
33.2
8,862
8,075
42.0 11,086 10, 226
41.6 10, 969 10, 113
48.0 12, 686 11,615
51.7 13, 739 12,547
55.9 14, 964 13, 499

744 483.3
261.5
947 668.3
303.5
1,055 736.3
354. 2
1,625 928.3
432.6
7979 7457.5 7 215. 5
670 334.0
138.5
553 310. 6
135. 5
322 203.2
102.8
287 183.3
101.9
283 246.5
140.1
227 182.5
132.9
7219 7 166. 7 7119.9
163 136.1
100.7
123 100.8
80.3
66 45.3
30.2
46 31.7
14.5
50 30.2
11.4
127 67.3
15.7
371 204.6
63.7
397 234.6
93.9
538 308.1
161.4
416 248.3
151.2
432 259.5
131.6
530 283.3
131.9
787 394.2
167.5
860 462.6
211.4
856 449.4
206.4
1,071 562.7
239.8
1,192 615.3
267.1
1,465 728.3
297. 6

221.8
364.8
382.2
495.7
7
242. C
195.4
175.1
100.4
81.4
106.4
49.7
746.8
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
430.7

13,387
10, 791
211.0 176.9 193.2 12,049
12, 312
12, 220
11,269
11, 686
11, 361
10, 526
154.6 155.1 147.8 11,251
9,270
10, 575

48.0
51.1
64.9
48.2
50.1
50.0
47.8
63.4
58.7
51.5
56.0
61.9

1,148
1,146
1,336
1,175
1,200
1,084
1,059
1,145
1,071
1,122
1,173
1,080

1,022
1,042
1,225
1,071
1,069
988
974
1,070
984
1,032
1,075
995

126
104
111
104
131
96
85
75
87
90
98
85

54.1
65.4
55.8
57.1
52.6
51.5
44.3
43.5
45.4
47.4
52.9
45.3

21.0
23.1
25.2
23.1
21.5
20.7
19.7
23.4
20.9
22.3
23.6
22.6

33.0
42.3
30.6
34.0
31.0
30.8
24.6
20.2
24.5
25.1
29.3
22.7

13, 080
10, 466
11, 670
' 11,329
11, 943
11, 991
12, 454
12, 234
12, 932
13, 633
12, 090
16, 446

53.2
64.1
60.0
59.7
55.3
67.3
58.2
64.0
53.4
57.4
55.9
51.3

1,279
1,238
1,495
1,458
1,341
1,260
1,253
1,127
1,039
1.271
1.121
1,082

1.142
1,113
1, 342
1,275
1,235
1,130
1,139
1,018
932
1,178
1,007
988

137
125
153
183
106
130
114
109
107
93
114
94

64.4
65.3
71.6
84.0
56.2
61.4
65.4
50.8
48.1
47.3
56.7
57.1

23.8
24.4
31.6
27.8
28.5
25.2
25.4
22.5
21.4
24.1
21.5
21.5

40.6
40.9
40.0
56.2
27.8
36.2
39.9
28.3
26.7
23.2
35.2
35.6

1
Excludes firms in the fields of agriculture and professional services. Includes self-employed person
only if he has either an established place of business or at least one paid employee.
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.
4
Commercial and industrial failures only. Excludes failures of banks and railroads and, beginning 1933.
of real estate, insurance, holding, and financial companies, steamship lines, travel agencies, etc.
s Failure rate per 10,000 listed enterprises. Monthly data are seasonally adjusted.
6
Not available.
7
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 & Bradstrcet, Inc.




21 I

AGRICULTURE
TABLE D-64.—Income of the farm population, 1929-58
Income from agricultural sources
Farm operators' income
Net farm
income 2

Realszed gross farm income

Wages
of
Farm Real- Total farm
Cash reproceipts from
(inized
resimarketings Gov- duc(ex- clud- dent
ing
ern- tion clud- net workTotal i
exing
ment penses net change ers
Livepaystock
change in
and Crops ments
in in- inprodven- venucts
tories) tories) s

Period

Income
from
all
sources
(including
net
change
in
inventories)

Per
capita
income
from
all
sources
(dollars)

(4)
(4)
(4)
(4)
(4)
1.9

(4)
(4)
(4)
(4)
(4)
5.3

(4)
(4)
(4)
4
(4)
()
165

2.0
2.3
2.5
2.3
2.5
2.7
3.1
3.8
4.2
4.4
4.2
4.3
4.9
5.1
5.2
5.3
5.6
6.1
6.0
5.8
6.3
6.7
6.3
6.4

7.9
7.3
9.3
7.4
7.7
8.0
10.6
14.9
17.4
17.8
18.2
21.4
22.4
24.9
19.9
21.0
23.7
23.4
21.1
20.2
19.8
20.1
19.7
21.4

244
228
296
239
249
262
349
509
654
696
720
806
825
962
767
838
983
962
931
925
894
903
967
1,027

8
()

Total Income
(infrom
clud- noning
agrinet
culchange tural
in
sources
inven-

tories)

Billions of dollars
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

13.9

--

.

1958*

6.2
11.4
5.2
8.4 3.8
6.4 2.8
7.1 2.8
8.5 3.3
9.7 4.1
10.7 4.7
11.3 4.9
10.1 4.5
10.6 4.5
11.0 4.9
13.8 6.5
18.8 9.0
23.4 11.5
24.4 11.4
25.8 12.0
29.7 13.8
34.4 16.5
34.9 17.1
31.8 15.4
32.5 16.1
37.3 19.6
37.0 18.3
35.3 16.9
33.9 16.3
33.3 15.9
34.6 16.3
34.3 17.4
37.6 18.8

5.1
3.9
2.5
2.0
2.5
3.0
3.0
3.6
3.9
3.2
3.3
3.5
4.6
6.5
8.1
9.2
9.7
11.0
13.1
13.1
12.4
12.4
13.3
14.4
14.2
13.7
13.7
14.2
12.4
14.1

0
0
0
0
0.1
.4
.6
.3
.3
.4
.8
.7
.5
.6
.6
.8
.7
.8
.3
.3
.2
.3
.3
.3
.2
.3
.2
.6
1.0
1.1

7.6
6.9
5.5
4.4
4.3
4.7
5.1
5.6
6.1
5.8
6.2
6.7
7.7
9.9
11.5
12.2
12.9
14.5
17.0
18.9
18.0
19.3
22.2
22.6
21.4
21.7
21.9
22.5
23.5
24.6

6.3
4.5
2.9
1.9
2.8
3.9
4.6
5.1
5.2
4.3
4.4
4.3
6.2
8.8
11.9
12.2
12.8
15.2
17.3
16.1
13.8
13.2
15.2
14.4
13.9
12.2
11.5
12.1
10.8
13.0

6.1
4.3
3.3
2.0
2.6
2.9
5.3
4.3
6.0
4.4
4.5
4.6
6.6
9.9
11.8
11.8
12.4
15.3
15.5
17.8
12.9
14.0
16.3
15.3
13.3
12.7
11.8
11.6
11.6
13.2

0.9
.8
.6
.5
.4
.5
.6
.6
.7
.7
.7
.7
.9
1.2
1.4
1.5
.6
.8
.9
.0
.8
.7
.8
.9
.8
.8
.7
.8
1.8
1.8

7.0
5.1
4.0
2.5
3.0
3.4
5.9
5.0
6.8
5.1
5.2
5.3
7.5
11.1
13.2
13.4
14.0
17.0
17.5
19.8
14.7
15.7
18.1
17.3
15.1
14.4
13.5
13.4
13.4
15.0

Seasonally adjusted annual rates

1957:
First quarter—
Second quarterThird quarter.
Fourth quarter.

34.4
34.3
34.3
34.3

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

(4)
(«)
(4)
(4)

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

23.4
23.6
23.4
23.6

11.0
10.7
10.9
10.7

11.5
11.6
11.8
11.5

8
8

1958:
First quarter 5_
Second quarter'
Third quarter '_
Fourth quarter'

37.0
38.0
37.7
37.8

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

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

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

24.2
24.4
24.8
25.2

12.8
13.6
12.9
12.6

12.6
13.4
13.3
13.3

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

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

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

4
(4)
(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 1946 differ from farm proprietors' income shown in Tables D-9 and D-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.




212

TABLE D-65.—Farm population, employment, and productivity, 1929-58
Farm population
(April 1) i

Period

Farm employment
Average
(thousands) 4
Net migross
gration
hourly Manto and
earn- hours
ings of
of
As per from
farm
Num- cent of farms
hired
ber
farm
work
(thou-3 Total Family Hired
workers workers work(thou- total sands)
ers 5
sands) population 2

Farm
output
per
manhour

Crop production

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
24.8
25.1
25.8
25.5

-61
156
607
-463
-527

12, 497
12, 745
12, 816
12, 739
12, 627

9,307
9,642
9,922
9,874
9,765

3,190
3,103
2,894
2,865
2,862

.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
24.2
23.8
23.5

-799
-834
-661
-545
-703

12, 733
12, 331
11,978
11, 622
11,338

9,855
9,350
9,054
8,815
8,611

2,878
2,981
2,924
2,807
2,727

.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
1944

30, 547
30, 273
29, 234
26,681
25, 495

23.1
-633
22.7 -1,424
21.7 -2, 975
19.5 -1, 563
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
121
120

70
74
79
78
81

69
73
79
77
81

88
89
99
91
96

1945
1946
1947
1948
1949

25, 295
26, 483
27, 124
25,903
25,954

864
18.1
151
18.7
18.8 -1,686
17.7
-371
17.4 -1,314

10,000
10, 295
10, 382
10, 363
9,964

7,881
8,106
8,115
8,026
7,712

2,119
2,189
2,267
2,337
2,252

.472
.515
.547
.580
.559

112
108
103
100
97

86
91
92
104
104

86
92
91
105
104

95
101
95
106
99

1950
1951
1952
1953
1954

25, 058
24,160
24, 283
22, 679
21,890

16.5 -1,302
-271
15.7
15.5 -1,996
14.2 -1,171
13.5
-91

9,926
9,546
9,149
8,864
8,639

7,597
7,310
7,005
6,775
6,579

2,329
2,236
2,144
2,089
2,060

.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 1958 6

22, 158
22, 257
20, 396
20, 827

13.4
-256
13.2 -2, 236
11.9
93
12.0
(7)

8,364
7,820
7,577
7,525

6,347
5,899
5,682
5,570

2,017
1,921
1,895
1,955

.675
.705
.728
.757

85
83
79
80

132
136
143
154

135
141
154
169

106
109
112
126

1943.--

1
Farm population as denned by Department of Agriculture and Department of Commerce, i. e., civilian population living on farms, both urban and rural, regardless of occupation.
2
Total population as of July 1 including armed forces overseas.
3 Net change for year beginning in April, estimated by Department of Agriculture. For 1940 and subsequent years, includes inductions and enlistments into the armed forces, and persons returning from the
armed forces. For all years, includes persons who have not moved but who are in and out of the farm population because agricultural operations have begun or have ceased on the place where they are living.
4
Includes persons doing farm work on all farms. These data, published by the Department of Agriculture, Agricultural Marketing Service, differ from those on agricultural employment by the Department
of Commerce, Bureau of the Census (see Table D-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 by the Department of Agriculture.
3
Weighted average of all farm wage rates on a per-hour basis.
6
Preliminary.
7 Not available.
Sources: Department of Agriculture and Department of Commerce.

213

489916 O— 59




15

TABLE D-66.—Farm production indexes, 1929-58
[1947-49=100]
Livestock and products
Period

Crops

Farm
outPoulFeed
put i Total 2 Meat Dairy tr
ani- prod- and Total 3 grains
mals ucts eggs

?;

Hay
To- Oil
and Food Vege- Fruits Cot- bac- bearand
for- grains tables nuts ton co ing
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
13..
96..
1937
1938
13..
99..

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
14...
99..

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
61
83
104
113

98
114
105
98
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
106
102
104
104

70
106
106
115
96

101
115
112
103
110

116
106
104
102
116

1955
1956
1957 4
1958 _-

112
113
113
123

120
122
121
124

127
123
120
123

108
110
111
111

123
136
137
144

105
106
106
118

112
112
122
134

116
110
126
125

80
84
79
117

96
101
97
101

104
110
108
110

103
93
77
81

109
107
83
87

128
152
148
181

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.
< Preliminary.
Source: Department of Agriculture.




214

TABLE D-67.—Indexes of prices received and prices paid by farmers, and parity ratio, 1Q29—58
[1910-14=100]

Prices paid by
farmers

Prices received by farmers

bo

£

.s

fl
"S

I

|
1
"o
0
0

1

Poultry and eggs

C8
SH

Dairy products

3

|
a
I
bo

Meat animals

All
farm
products 1

Livestock and products
All livestock and
products l

Period

All crops '

Crops

All
terns,
interest,
taxes, Famand r y
wage living
rates terns
(parity
index)

Parity

Pro- raduc- tio 2
tion
terns

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

106 104 140
74 64 98
48 49 84
57 68 107
95 101 156

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

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

88
92
93
78
77

100
124
159
3193
3197
3207
3236
276
287
250
258
302
288
258
249
236
235
242
255

90
108
145
187
199
202
228
263
255
224
233
265
268
242
242
236
240
233
232

84
97
120
148
166
172
201
271
250
218
224
243
244
231
232
229
224
225
206

85
92
115
152
172
167
202
256
258
177
193
226
234
208
206
187
185
170
156

83
111
156
167
172
179
238
274
272
246
282
336
310
268
274
272
268
264
253

134
157
247
319
348
360
376
374
380
398
402
436
432
429
439
437
453
465
481

103
138
183
202
222
228
260
363
351
242
276
339
296
274
279
250
250
252
228

109
108 120
138
143 140
186
171
163
198 203 3 198
196
190 3222
211 3207 3229
242 3248 3268
288 329 273
315 361
301
272 311
252
280 340 249
409 286
336
306 353 302
272 296 274
255 292 252
236 249 253
230 238 260
249 279 264
275 334 259

98
122
152
191
177
198
201
223
242
221
186
228
206
221
176
188
177
162
169

124
133
152
171
182
190
208
240
260
251
256
282
287
279
281
281
285
295
305

121
130
149
166
175
182
202
237
251
243
246
268
271
270
274
273
278
286
292

123
130
148
164
173
176
191
224
250
238
246
273
274
253
252
249
249
258
270

81
93
105
113
108
109
113
115
110
100
101
107
100
92
89
84
82
82
84

237
235
238
241
May..
242
June
243
246
July
August
247
September . 245
241
October
November . 242
243
December- -

237
234
237
241
241
240
237
232
227
225
223
219

237
235
235
233
225
218
218
217
217
219
221
221

187
181
181
180
179
173
170
169
163
156
150
151

256
255
252
258
266
270
273
278
279
273
263
239

457
458
459
459
457
457
460
469
484
483
473
466

266
260
265
264
263
260
250
252
244
231
235
237

238
236
238
242
242
245
254
261
260
255
258
263

253
252
263
275
280
288
297
302i
291
275
2771
293

271
266
260
253
248
246
253
260
272
278
28C 1
275 j

155
156
149
148
143
145
155
168
175
181
188
185

292
293
294
296
296
296
1
295
295
295
296
298
299

283
284
284
28
286
28
28
28
286 1
289
289

255
256
258
259
259
25"
25
25
258
258
26C
26

81
80
81
81
82
82
83
84
83
81
81
81

224
229
245
252
246
232
228
225
232
227
225 1
22C |

217
219
224
223
221
197
19f
19C
195
19£
20f
19*

146
148
152
162
163
167
165
163
161
153
145
154

232
211
220
236
246
246
26C
281
292
281
274
256

474
475
475
475
475
474
473
483
482
501
485
505

233
22S 1
234
237
238
23S
227
232
22C
214 1
2U >!
2U >|

267
273
280
275
28C
275
277
275
28C
275
274
27C

308
324
336
339
355
348
347
338 1
33S
33C
326
323

174
26? 1
165
266
261
187
24£
172
244
168
241
163
246
166
166
255
264 ! 174
164
271 1
2725
164
27() 157

289
290
293
293
294
293
293
291
290
291
293
291

26
26
26
27
27
27C
27C
26?
272
271
272
273

82
83
87
86
86
84
83
83
85
82
81
80

_

1935
1936
1937
1938.
1939
1940
1941
1942
1943
1944.
1945
1946
1947 _
1948
._.
1949
1950
1951 .
1952
1953
1954
1955
1956
1957 .
1958.
_.
1957:
January
February ..
.
March
April

1958:
January
February. .March
April
May
June
July
August
September .
October
November _
December..

2
8

67
58
64
75

!

247
252
263
264
264
255 !
254
251
258
252
251
246

1
2
3

301
302
304 !
306 1
306 !
305
305
304
305
307
308
308

Includes items not shown separately.
Percentage ratio of index of prices received by farmers for all farm products to parity index.
Includes wartime subsidy payments.
Source: Department of Agriculture.




215

TABLE D-68.—Comparative balance sheet of agriculture, 1940—59
[Billions of dollars]
Assets

Claims

Other physical assets
Beginning
of period

Financial assets

HouseMahold
chinReal
furTotal estate
ery
Live- and Crops ! nishstock motor
ings
and
vehiequipcles
ment 2

Real Other
DeposInvestits
U.S. ment Total estate debt
debt
and savings in cocur- bonds operarency
tives

Proprietors'
equities

1940
1941
1942
1943
1944

53.0
55.1
62.5
73.3
83.8

33.6
34.4
37.5
41.6
48.2

5.1
5.3
7.1
9.6
9.7

3.1
3.3
4.0
4.9
5.3

2.7
3.0
3.8
5.1
6.1

4.3
4.3
4.5
4.6
4.6

3.2
3.5
4.2
5.4
6.6

0.2
.4
.5
1.1
2.2

0.8
.9
.9
1.0
1.1

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

1945
1946
1947
1948
1949

93.1
102.0
113.9
125.2
132.1

53.9
61.0
68.5
73.7
76.6

9.0
9.7
11.9
13.3
14.4

6.3
5.2
5.1
7.0
9.4

6.7
6.3
7.1
9.0
8.6

4.7
4.8
5.4
6.2
7.0

7.9
9.4
10.2
9.9
9.6

3.4
4.2
4.2
4.4
4.6

1.2
1.4
1.5
1.7
1.9

93.1
102.0
113.9
125.2
132.1

4.9
4.8
4.9
5.1
5.3

3.4
3.2
3.6
4.2
6.1

84.8
94.0
105.4
115.9
120.7

1950
1951
1952
1953....
1954

130.8
149.6
165.6
162.9
159.7

75.3
86.8
96.0
96.6
94.7

12.9
17.1
19.5
1^.8
11.7

11.3
13.0
15.2
15.6
16.3

7.6
7.9
8.8
9.0
9.2

7.8
8.7
9.5
10.2
10.8

9.1
9.1
9.4
9.4
9.4

4.7
4.7
4.7
4.6
4.7

2.1
2.3
2.5
2.7
2.9

130.8
149.6
165.6
162.9
159.7

5.6
6.1
6.7
7.3
7.8

6.9
7.0
7.9
8.8
9.3

118.3
136.5
151.0
146.8
142.6

.._ 164.7
168.3
176.4
186 7
200.0

98.8
102.7
109.5
116.3
123.2

11.2
10.7
11.1
14.2

16.2
16.7
17.2
17.6

9.6
8.3
8.3
7.6

11.4
11.9
12.4
12.8

9.4
9.5
9.3
9.4

5.0
5.2
5.1
5.1

3.1
3.3
3.5
3.7

164.7
168.3
176.4
186.7
200.0

8.3
9.1
9.9
10.5
11.2

9.5
9.8
9.6
9.7
11.4

146.9
149.4
156.9
166.5
177.4

1955
1956
1957
1958 3
1959

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, 1958, totaled $700 million.
2
Estimated valuation for 1940, plus purchases minus depreciation since then.
3
Preliminary.
4
Not available.
NOTE.—Detail will not necessarily add to totals because of rounding.
Source: Department of Agriculture.

TABLE D-69.—Level-oj-living indicators Jos farm-operator families, selected years, 1920—56
Level-of-living indexes l
(U. S. average in 1945=100)
Period

1920
1930
1940
1945
1950
1954
1956

Percentage of all families reporting:
./

United North- North South West Elec- Tele- Auto- Running
tricStates
east Central
ity 2 phones mobiles water
3

4

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 D-70.
3
Gas or electric lights.
4
Based on Special Cooperative Survey of Farmers' Expenditures.
Source: Department of Agriculture.




2l6

TABLE D—70.—Selected indicators of farming conditions, 1929-58

Period

Total investfarm
Average ment inand
plant
Number value of
equipment
of farms production (millions of
(thou- assets per
dollars)
sands)
farm
(dollars) 1
Gross Net 2

Real estate
Foredebt as
closure
percent of rate per
value of
1,000
real estate farms «
(percent)3

Percent of
farms
Operators' Farm in- allwith
net income come per
central
per farm
worker
station
(dollars) « (dollars) « electrical
service 7

6,512

(8)

966

50

20.3

15.7

962

593

(8)

1930
1931
1932
1933
1934

6,546
6,608
6,687
6,741
6,776

(8)
(8)
8

717
408
194
189
376

-238
-448
-540
-455
-274

20.1
21.5
24.5
27.5
23.9

18.7
28.4
38.8
28.0
21.0

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

s
(8)
()

(8)

560
756
903
685
774

-104
28
107
-148
-7

22.8
21.7
20.3
19.8
19.9

20.3
18.1
14.3
13.4
12.5

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

10.4
6.1
4.3
3.0
1.9

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
5.926
5,871
5,803
5,722

11,346
12, 435
14, 154
15,906
17, 144

1,533
2,035
3,245
4,316
4,492

193
811
1,641
2,257
2,064

9.2
7.8
7.2
6.9
6.9

1.5
1.1
.0
.2
.4

2,154
2,569
2,947
2,767
2,410

1,515
1,726
1,937
1,842
1.671

45.7
54.3
61.0
68.6
78.2

1950
1951
L
1952
1953... -.
1954

5.648
5,535
5,421
5,308
5,201

16, 979
20,434
23, 206
22, 946
22, 592

4,594
4,825
4,696
4,785
4,230

1,858
1,599
1,297
1,265
614

7.4
7.0
7.0
7.5
8.2

.5
.6
.3
.7
2.0

2,334
2,739
2,659
2,619
2,346

1,598
1,881
1,882
1,883
1,727

77.2
84.2
88.1
90.8
92.3

1955
1956
1957 9
1958

5,087
4,969
4,856
4,754

23, 806
25, 096
27, 203
29,600

4,229
3,857
4,064
4,307

507
116
149
301

8.4
8.8
9.1
9.0

2.3
2.0
1.7

2,255
2,437
2,232
2,735

1,698
1,906
1,762
2,126

93.4
94.2
94.8
95.4

1929

()

8

8

(«)

1 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. Data are for January 1.
2 Gross investment less depreciation and other capital consumption.
3
Data are for January 1.
* Data are for year beginning March 15.
s Including Government payments and excluding the net change in inventories.
e 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).
8
Not available.
9 Preliminary.
Source: Department of Agriculture.




217

INTERNATIONAL TRANSACTIONS
TABLE D-71.—United States balance of payments, J952-58l
[Millions of dollars]
July
1952Junc
1956
(annual
average)

Type of transaction

Private net' Total
Direct investments, net
New issues
Redemptions
_ _ _ __
Other long-term, net
Short-term net
Government net' Total
-

United States receipts: Total
Exports of goods and services: Total

Second
half

First Third
half quarter

12 522

13 226

14 194

12 994

13 379

6 58 r>

9,898

9,912

10, 316

10, 391

10, 061

5, 258

11 104
1,149
1,029

6 426
707
535

6 365

725
740

6 640
711
565

6 651
717
807

6 313
728
621

3 116
408
586

686
2 657

358
1 572

426
1 338

363
1 725

480
1 395

382
1 733

248
757

385
87

232
68

232
86

213
99

239
102

219
65

111
32

2,397

1 183

1,149

1,226

1,081

1 143

548

875
308

820
329

883
343

730
351

805
338

367
181

1 441

2,165

2,652

1 522

2 175

779

1 100

1 880

2 203

1 008

1 714

441

776
255
-143
58
213

630
205
—94
206
153

1,209

252
-75
113
381

1,395
399
-70
216
263

677
198
— 79

167
45

578
721
—40
207
248

164
46
— 10
148
93

217

United States capital, net: Total

First
half

1 159

Government grants
Remittances and other transfers

Second
half

1,376

net, excluding
_-

First
half

1,795
602

Merchandise, adjusted, excluding
military
Transportation
Travel
- Miscellaneous services, excluding
military
Military expenditures
Income on investments:
Private
Government

341

285

449

514

401

338

522
—474
169

294

240

729

— 185

—294

339

258
—360
551

—299

84

494
—338
305

334
— 110
114

18,980

11, 581

12, 479

13, 935

12 902

11 508

5 533

18 685

11 299

12 219

13 642

12 834

11 494

5 533

8 366

8 955

10 239
989
364
607
84

9 088

8 239
'792
364
605
159

3 795
416
256
322
49

1 000
'l45

1 160

1 085
175
99

1 228

188
106

1 027
195
113

541
99
55

68

14

Merchandise, adjusted, excluding
military
_
- _ . . _ _ - _ - _ 13, 437
Transportation
1 303
606
Travel
Miscellaneous services
966
Military transactions
167
Income on investments:
Direct investments
1 705
Other private
238
263
Government
Foreign long-term investments in the
United States, net 2

232

769
316
514
91

98

295

282

— 1 950

—941

Increase in liquid dollar holdings by
foreign countries and international
institutions

1 242

899

United States gold sales or purchases (— )

416

Net United States payments ( — )

Errors and omissions

292

1
2

-115

157

850
389
545
65

159
96

260
-747

293

—259

403
-191

308

-673

535

Excludes transfers of goods and services under military grant programs.
Excludes investment in U. S. Government securities.
Source: Department of Commerce.




1958

17, 157

Imports of goods and services: Total

Long-term capital, outflow
Repayments
Short-term, net
_

19 57

20 930

United States payments' Total

Unilateral transfers,
military Total

19 56

2l8

624

858
421
661
284

—92 —1 871

-35
-125

252

— 1 052

183

394

1 445

483

243

175

TABLE D-72.—United States balance of payments with individual areas, 1952-58l
[Millions of dollars]
July
1952June
1956
(annual
average)

Area and type of transaction

19f >6

19,57

19v58

First
half

Second
half

First
half

Second
half

First
half

6 630

4 005

4 120

4 399

3 896

4 052

2 160

2 290
1 429

1 430
'976

1 518
700

1 539
1 049

1 552
747

1 512
1 004

803
396

487
258
308

289
167
267

154
175
168

233
246
317

159
207
170

211
325
213

1,587
264
911

933
148
343

1 002
152
181

937
146
372

1 063
166
316

971
150
233

301

261

174

302

89

179

84

149

175

567

356

52

182

146

84
-28
93

110
52
13

346
63
158

157
90
109

97
—34
— 11

83
110
— 11

34
45
67

5 376

3 459

3 974

4 516

3 875

3 348

1 561

3 687

2 481

2 864

3 282

2 656

2 349

1 078

203
244

61
159

64
186

57
171

67
216

62
215

32
94

1 033

598

647

754

878

209

170

213

252

58

718
4

356
1

Net United States receipts or
payments ( — )
- —1 254

—536

—146

117

—21

— 704

—599

3, 693

2,189

2,554

2,438

2,356

2,273

1 255

2 522
206
524
12
2
431

1 392
121
220
6
—5
455

1 521
138
377
6

1 519
'l52
386
7
1
291

1 279
186
227
6
_1
576

704
90
265
4

512

1 421
'l36
228
7
1
645

382
25
24

269
191
—5

275
204
33

416
273
-44

168
91
32

145
339
92

114
71
7

Western Europe:
United States payments: Total
Imports of nonmilitary goods
Military expenditures

_

France
Germany
_
United Kingdom
Other services
Remittances and other transfers, net.
Government grants and capital, net..
Greece, Spain, Turkey,
Yugoslavia - - .

and

Private capital, net outflow
Direct investments
Other long-term Short-term

--

United States receipts- Total
Exports of nonmilitary goods
Income on investments abroad:
Government
-_ Private
Other services and military transactions
Foreign long-term investments in the
United States net 3

Canada:
United States payments: Total
Imports of nonmilitary goods
Military expenditures.
Other services
Remittances and other transfers, net.
Government capital net
Private capital, net outflow
Direct investments
Other long-term _ .._ _ ._
Short-term
United States receipts: Total
Exports of nonmilitary goods
Income on investments:
Government
_ -_
Private
Other services and military transactions.
..
.-_
-.
Foreign long-term investments in the
United States, net 3
Net United States receipts or
payments (— )

(%}
(2)

75
636
92
87

192

4,268

2,683

2,685

2,755

2,515

2,310

1,183

3,218

2 068

2,046

2, 142

1,872

1.763

850

384

212

275

256

284

229

133

619

315

359

347

368

325

207

47

88

5

10

-9

-7

-7

575

494

131

317

159

37

-72

See footnotes at end of table, p. 221.




Third
quarter

219

TABLE D-72.—United States balance of payments with individual areas., 1952-58 l—Continued
[Millions of dollars]
July
1952June
1956
annual
average)

Area and type of transaction

19,56

19^>7

19,58

First
half

Second
half

First
half

Second
half

First
half

4 844

2 801

3 030

3 434

3 240

2 966

1 422

3, 572

1,982

37
179
253

20
91
233

1,793
14
523
20
87
593

2,007
18
473
27
94
815

1,922
17
513
24
163
601

1,917
26
470
22
163
368

850
13
271
10
246
32

141

471

704

400

301

—4

71
29

17
75

223
38
84

267
34
77

90
111
90

-14
81

19
17

4 722

2 698

2 917

3 229

3 365

2 947

1 451

3,272

1,864

1,966

2,238

2,390

2,098

989

29
662

17
416

17
468

20
502

20
473

22
395

10
216

739

392

442

455

477

434

242

20

9

24

14

5

—2

-6

-122

—103

-113

—205

125

-19

29

5,598

3,461

3,428

3,710

3,340

3,705

1,668

2,780

1,622

1,533
295

1,673
273

1,658
328

1,605
302

759
177

Military expenditures..
Japan

997
613

462

246

486
238

522
224

479
221

517
205

Other services.
... . . _ . . . .
Remittances and other transfers, net..
Government grants and capital, net, .

289
849

406

276
134
748

269
151
751

294
163
821

324
154
720

325
160
845

170
75
364

435

40
65
64

376
60
49
81

349
66
69
75

475
—5
71
59

304
53
115
47

401
— 15
113
79

143
4
48
34

277

219

238

237

5

253

42

156
55
66

110
39
70

117
15
106

118
—1
120

12
58
-65

49
118
86

20
20
2

4,526

2,684

2,854

3,381

3,097

2,851

1,311

3,240

1,938

2,069

2,564

2,157

2,016

872

663

378

521

721

510

443

184

31
640

20
351

15
382

22
322

19
436

29
371

13
189

605

363

379

463

476

421

227

10

12

9

10

9

14

10

-1,072

-777

-574

-329

-243

Latin America:
United States payments' Total
Imports of nonmilitary goods _
Military expenditures
Other services
Remittances and other transfers, net-Government grants and capital, net—
Private capital outflow, net
Direct investments
Oil concession payments to
Venezuela -_
Other long-term
Short-term
United States receipts' Total
Exports of nonmilitary goods
-..
Income on investments:
Government
- Private
Other services and military transactions
- -- .
Foreign long-term investments in the
United States, net 3
Net United States
payments ( — )

receipts

or

Other countries'.
United States payments: Total
Imports of nonmilitary goods
Japan

Private capital, net outflow . . . .
Direct investments
Other long-term
Short-term
United States receipts: Total
Exports of nonmilitary goods
Japan
Income on investments:
Government
Private _
. _ - - . .
Other services and military transactions
Foreign long-term investments in the
United States, net 3
receipts
_

153

341

Cambodia, Laos, Vietnam, Korea, and China (Taiwan)
Japan
India
Pakistan .

Net United States
pavments ( — )

25
778

or

See footnotes at end of table, p. 221.




220

13
462

263

-854

Third
quarter

258

(2)

-357

TABIE D-72.—United States balance of payments with individual areas, 1952-58 1—Continued
[Millions of dollars]
July
1952June
1956
(annual
average)

Area and type of transaction

International Institutions:
United States payments: Total

Second
half

First
half

First
half

Third
quarter

Imports of nonmilitary goods
Militarv expenditures
_ . .. .
Other services
Remittances and other transfers, net.
Government grants and capital, net .
United Kingdom
Private capital, net outflow
Direct investments
United Kingdom
O ther long-term
Short-term

.

._ _ ,
_ ._

United States receipts: Total
Exports of nonmilitarv goods
Income on investments:
Government.. . ...
...
Private
Other services and military transactions
Foreign long-term investments in the
United States, net 3
r e c e i p t s or
... ... _ _

213

162

383

80

86
-30
38

44
150
19

44
59

59

26
335
22

8
29
43

47

49

54

50

52

27

20

15

10

13

13

13

6

14
46

7
22

g
22

9
25

7
25

12
22

g
11

9

3

9

7

5

5

2

-75

-19

—45

— 159

— 112

-331

-53

2,121

2,196

2.412

2,326

2,292

1,100

1,719
399
767
95
332

1,006
329
451
49
177

994
239
456
48
116

1 094

1 068

1,050
326
482
56
237

488
123
269
27
109

11

119

Addendum: Total sterling area:
United States payments: Total .

94

39
18
9

143

Net U n i t e d S t a t e s receipts or
payments (— )
.____. _.

66

74
48
42

3,431

Exports of nonmilitary goods
Income on investments:
Government
_._
.__
Private
Other services
- Foreign long-term investments in
the United States, net 3

109

86
22
8
25

93
48
44
-28

3,019
1 856

406
453

264
496

56
169

57
430

—54

—1

245

10

—1

343

234

11

141

84

240
213
82
21

126
89
40
68

76
68
-16
-49

88
40
38
15

26
-3
29
29

1,749

1,961

2,176

2,054

1,815

851

1,108

1 240

1 445

1 341

1,148

525

104
381

13
228

13
280

14
225

17
302

24

277

4
127

584

310

338

380

383

355

197

94

90

90

112

11

11

—2

-477

-249

-412

1

-372

-235

-236

Excludes transfers of goods and services under military grant programs.
2 Not available.
3 Excludes investment in U. S. Government securities.
Source: Department of Commerce.




Second
half

89

United States receipts: Total

Net U n i t e d States
payments (— )
..

First
half

19 58

19 57

164

Government grants and capital, net..
Private capital, net outflow
Other payments

.

19 56

221

-272

TABLE D—73.—United States exports by selected commodities and markets, 1956-58
[Millions of dollars, annual rates]

Total, all
countries

Commodity and period

Main countries accounting for decline
from first half 1957 to first half 1958
Total

Total exports, excluding "special category": 2
1956: First half
1957- First half
1958: First half

Western
Europe ]

Canada

All other
countries

Japan

16,294
19,984
16,064

9,383
11, 666
8,592

4,589
6,040
4,278

4,036
4,184
3,428

758
1,442
886

6,911
8,318
7,472

5,029
7,386
4,394

3,229
4,971
2,648

1,612
2,838
1,468

1,191
1,185
807

426
948
373

1,800
2,415
1,746

214
796
179

108
609
106

29
481
37

61
73
37

18
55
32

106
187
73

484
1,278
856

396
1,070
678

198
750
470

12
52
46

186
268
162

88
208
178

669
910
575

327
420
236

281
347
149

46
73
87

342
490
339

630
854
526

594
798
498

376
556
354

190
194
108

28
48
36

36
56
28

Iron and steel-mill products, scrap,
nonferrous metals and ferroalloys:
1956: First half
1957- First half
1958: First half

1,526
2,088
1,058

1,128
1,528
694

576
608
378

408
428
264

144
492
52

398
560
364

Automobiles, parts, and accessories:
1956: First half
1957: First half
1958: First half
_.

1,506
1,460
1,200

676
546
436

152
96
80

520
438
352

4
12
4

830
914
764

11, 265
12, 598
11, 670

6,154
6,695
5,944

2,977
3,202
2,810

2,845
2,999
2,621

332
494
513

5,111
5,903
5,726

Machinery, all types:
1956: First half
1957- First half
1958: First half

3,612
4,050
3,832

1,892
2,072
1,808

608
664
602

1,210
1,278
1,018

74
130
188

1,720
1,978
2,024

Chemicals and
1956: First
1957: First
1958- First

1,244
1,408
1,348

620
710
688

292
354
366

252
254
246

76
102
76

624
698
660

632
698
630

254
294
248

106
134
98

148
156
150

5,777
6,442
5,860

3,388
3,619
3,200

1,971
2,050
1,744

1,235
1,311
1,207

Six main groups in the decline:
1956: First half
1957: First half
1958: First half
Crude petroleum and related fuels:
1956: First half
_._
1957- First half
1958: First half
Cotton, raw, including linters:
1956: First half .. ._
1957- First half
1958: First half
Wheat:
1956: First half
1957- First half
1958: First half .
Coal and
1956:
19571958:

related fuels:
First half
First half
First half

Other exports:
1956: First half
1957- First half
1958: First half _ _

_

....

related products: «_
half _- _ . .
half
half

Textile manufactures: 4
1956: First half _
1957: First half. _ _
1958' First half
All other exports:
1956- First half
1957: First half..
1958: First half

(3)
(3)

(3)

4

378
404
382

182
258
249

2,389
2,823
2,660

(3)

i Excludes Greece and Turkey.
2
"Special category" includes those commodities for which detailed statistics are withheld for security
reasons. The data for the first half of 1956 include estimates for commodities declassified in a revision of
"special category" coverage in 1957.
3 Less than $500,000.
4
Includes semimanufactures as well as finished products except those for Japan which include finished
manufactures only.
Source: Department of Commerce.




222

TABLE D-74—World exports, 1956-58
[Millions of dollars, annual rates]
^\^^

Exports to

Exports from ^\^
World:
1956: First half
Change, first half:
1956-1957
1957-1958.
United States:
1956- First half
Change, first half:
1956-1957
1957-1958
United Kingdom, Iceland,
and Ireland:
1956: First half
Change, first half:
1956-1957
1957-1958
Continental Western
Europe:
1956: First half
Change, first half:
1956-1957
1957-1958
Canada:
1956- First half
Change, first half:
1956-1957
1957-1958
Japan:
1956- First half
Change, first half:
1956-1957
1957-1958
Outer sterling area:
1956- First half
Change, first half:
1956-1957
1957-1958
Latin America:
1956: First half
Change, first half:
1956-1957
1957-1958
All other countries:
1956: First half.
Change, first half:
1956-1957
1957-1958

United
KingUnited dom,
World i States Iceland,
and Ireland

ContiOuter
nental
Western Canada Japan sterling
area
Europe
i

2 91, 349

12, 378

10, 047

27, 755

2 10, 113

118
-261

395
-507

4,007
-2, 583

2-6,363
2

2

3 842

16, 728
2

3

3 479

3338 3 1 116
3 —393 3—1 321

3, 742

—3,844

Latin
America

All
other
countries

2,472

11, 584

7, 161

13 159

1 207
-780 -1,101

1 120
-321

1 314
-371

1 442
—387

1 242

3 754

3 2 113

784
— 260

3
341
3 —427

5,392
208

3

4 167
144

—769

3

755

3

3680
3322
—555 3 —169

9,690

694

571

2,388

523

61

3 856

397

1 146

566

-462

62
39

21
51

315
-352

18
1

50

111

— 55

-125

47
— 10

-82
—1

25, 906

1,876

2,351

12,690

241

128

1.800

1,465

5,058

3,569
-484

190
-29

-23
13

2,013
-557

29
-11

129
—77

220
76

288
66

676
114

4,633

2,781

756

411

112

259

163

150

239
23

146
-98

-33
45

104
60

24
-35

— 18

74
-45

— 59
13

2,320

501

86

132

65

606

174

551

335
127

26
75

-24
9

76
-15

—5
4

76
-55

—40
54

122
61

12, 266

1,166

3,728

2,548

212

656

2,217

114

1 347

533

—51
-238

— 57
-62

9
-32

276

171

-928

—6
3

95
(4)

— 14
—65

8, 568

4, 045

668

1,671

95

224

104

597

1,089

240

-819

-254
-225

206
-134

203
-268

21
7

32
-33

18
-5

136
-76

-68
-100

11,238

1,315

1,045

4,436

89

536

1,500

497

1,705

889

-46
-26

-39
140

237
-68

Q

16

34

-22

220

-70
-100

24

-324

83

-207

81

526
18

1
Totals for each exporting area include amounts for which destinations are not specified in sources, and
therefore exceed sums of destination details.
2
Excludes U. S. military aid exports.
3
Excludes U. S. "special category" shipments for which destination details are withheld on security
grounds. Figures for 1956 and for 1956-57 changes are based upon the "special category" coverage in effect
until mid-1957, while 1957-58 changes are computed from revised data reflecting the more limited "special
category" coverage subsequently in effect.
4 Less than $500,000.
NOTE.—Data exclude exports of U. S. S. R. and Soviet bloc countries to each other.
Detail will not necessarily add to totals because of rounding.
Sources: United Nations and Department of Commerce.




223

TABLE D—75.—Estimated gold reserves and dollar holdings of foreign countries and international
institutions, 1952 and 1956-58
[Millions of dollars; end of period]
Area and country

19 56

1952

19 57

1958

Sept.

Dec.

Sept.

Dec.

Mar.

June

Sept.

24, 451

32, 933

32, 621

32, 299

32, 712

33, 397

34, 704

35,708

8,651

14,429

14, 433

14, 756

15, 074

15, 251

15, 786

16, 892

149

358

377

432

460

465

473

561

1,027
1,141
691
665

1,277
1,638
3,112
1,288

1,239
1,512
3,343
1,270

1,173
1,013
4,077
1,460

1,190
955
4,113
1,533

1,266
921
3,983
1,530

1,400
916
4,052
1,682

1,477
1,030
4,340
1 876

824

1,136

1,080

983

1,058

1,274

1,302

1,402

606
3,548

837
4,783

882
4,730

969
4,649

980
4,785

983
4,829

940
5,021

1,042
5 164

,

3,473

4,160

4,157

3,847

4,243

4,851

5,135

5,206

United Kingdom. _
Other.

2,514
959

3,086
1,074

3,015
1,142

2,687
1,160

3,080
1,163

3,701
1,150

4,030
1,105

4,067
1,139

Total
Continental Western Europe
Austria
Belgium-Luxembourg (and
Belgian Congo)
France (and dependencies) - .
Germany
.-. ._ Italy
Netherlands (and Netherlands West Indies and
Surinam)
Scandinavian countries
(Sweden, Norway, Denmark, and Finland)
Other
Sterling area

Canada .-

2,627

2,899

2,996

3,229

3,195

3,163

3,432

3,378

Latin America

3,432

4,158

4,313

4,752

4,544

4,415

4,383

4,144

428
392
121
194
543
380
107
521
746

399
583
152
180
574
565
117
811
111

370
550
138
210
514
604
119
1,061
747

313
458
118
244
583
556
96
1,617
767

263
457
116
215
525
569
88
1,556
755

270
441
118
200
517
539
82
1,430
818

266
451
127
192
503
488
93
1,462
801

244
459
125
207
495
523
92
1,235
764

2,376

2,810

2,812

2,399

2,340

2,404

2,475

2,499

931
1,445

1, 190
1,620

1, 149
1,663

700
1,699

716
1,624

835
1,569

933
1,542

1 012
1,487

Argentina
Brazil
Chile
Colombia . ._ _ ...
Cuba
Mexico
Peru . ._•
Venezuela
Other
Asia
Japan
Other
All other countries..International institutions

345

368

375

415

397

394

351

337

3,547

4,109

3,535

2,901

2,919

2,919

3,142

3,252

NOTE.—Includes gold reserves and dollar holdings of all foreign countries with the exception of gold
reserves of U. S. S. R. and other Eastern European countries, 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 EPU account) and of the Tripartite Commission for Restitution of Monetary Gold are included under "other" Continental Western
Europe.
Source: Board of Governors of the Federal Reserve System.




224

TABLE D-76.—Price changes in international trade, 1955—58
[1953=100]!
1956
Trade sector

19 57

1958

1955
First
quarter

Third
quarter

100
89
104
100

104
88
111
104

104
88
108
105

108
92
111
110

107
89
107
112

107
89
103
114

106
91
101
112

106
89
100
112

102
101
104
98

104
97
109
100

104
100
107
100

106
101
112
101

105
99
108
102

102
99
103
101

100
97
101
101

99
96
100
100

99
100

102
99

102
98

105
101

105
100

104
95

103
94

Manufactured goods 5
Nonferrous base metals 5

99
119

102
134

103
117

106
110

107
96

108
85

107
86

107
90

Primary commodities 6
Foodstuffs 6
Other agricultural commodities 6- _
Wool e
Minerals 6
Metal ores 6
Crude petroleum 6

100
96

99
94

101
98

106
100

97
93

96
94

96
95

100
88

105
99

102
97

100
80

111
105
112

109
99
112

First Third
quar- quarter
ter

First Second Third
quar- quar- quarter
ter
ter

United States foreign trade: 2
Exports: Total
Foodstuffs
Industrial materials
Finished manufactures _ _
Imports for consumption: Total
Foodstuffs _
Industrial materials
Finished manufactures

_ _ _. _
__

World trade: 3
Industrial countries' Exports
Other countries: Exports _

(4)
(4)

Commodity classes:

102
84

102
103
104

107
111
104

108
108
104

119
112
107

102
96

94
77

91
69

109
99
112

90
65

108
99
112

1
Data shown for United States foreign trade and for country groups and for manufactured goods in the
world trade section of the table are unit value indexes. All others are price indexes.
For description of world trade indexes by commodity classes, see "Methods in Compiling the United
Nations Price Indexes for Basic Commodities in International Trade," Statistical Paper, Series M, No.
29, United Nations, New York.
2
The series shown for foodstuffs is the weighted average of the two commodity classes, crude foodstuffs
and manufactured foodstuffs. The series shown for industrial materials is the weighted average of the
two commodity classes, crude materials and semimanufactures.
3 Excludes trade of U. S. S. R. and Soviet bloc countries.
4
Not available,
s Exports.
e Exports and imports.

Sources: Department of Commerce and United Nations.




225
U. S. GOVERNMENT PRINTING OFFICE: 1959

O—489916


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102