Evening star., 1934-03-04
Tables Give Statistics
OF the Nations Income
BY HARDEN COLFAX.

Just how q worldwide depression
affects the flow of purchasing power
is seen for the first time in a study,
presenting q new series OF basic esti-
mates of the national income. sub
mitted to the United States Senate.
This study, prepared by the Bureau
Of Foreign and Domestic Commerce
In cooperation with the National
Bureau Of Economic Research, will
soon be published In the form Of q
Senate document. Its findings have
been available to the Senate for some
time In consideration Of pending tax
legislation.
The full report presents more than
200 tables. They show that in 1929
the total income distributed to indi-
viduals throughout the United States
was just over 81 billions of dollars, as
compared with 744 billions in 1890,
63.3 billions in 1891 and 40 billions
in 1921 decline Of 40 per cent be-
tween 1929 and 1892.
The figures indicate . wide differ
ence in the trend Of income for vari-
Gus industries and Q striking di-
vergence In the extent to which in
come Of various forms declined. In
terest payments, for example, suffered
least IN the depression, while wages
suffered most severely. From these
figures the American Federation Of
Labor draws the conclusion that,
while the total income of workers in
1882 was only go per cent Of the
1929 level, workers lost more heavily
than owners Of property, because in
come from property declined only
some 80 per cent.
Studies Of the national income have
been made in the past, notably by
the National Bureau of Economic
Research and the National Industrial
Conference Board. They have, since
1928. shown only increases or de-
creases In percentages of the whole.
This new study, however, supplies an
exceedingly interesting breakdown as
to particular sources of income-and
how they have held up or fallen Off
which we have never had before.
Normally, in periods Of relative
stability, the output of economic
goods and services and the incomes
distributed to those contributing to
the productive processes, except for
some normal surplus accumulation
by corporations, are approximately
eQual-the flow both ways goes on
continuously and we thus know that
our economic system is functioning
without friction. But when there are
fluctuations in economic activity
these measurements do not 20 nearly
match.
Among the significant facts indi-
Gated by the estimates Is the extent to
which surpluses have been drawn
upon to keep salaries and wages and
interest and dividends at q higher
ratio to production than normally
would have been the case. BY 1882
the amount paid out in excess of in
come actually flowing from current
production had increased to more than
SIC, ,000, ,000, 900.
During the prosperity period. cul-
minating in 1s28-l929, more income
was being produced than was dis
trtbuted, while with the continuation
Of the depression, progressively more
was being distributed than was being
currently produced.
While employees generally suffered .
falling of Of 40 per cent in their in
comes, salaries dropped less rapidly
than wages, with the most severe cur
tailment occurring in 1892
Manufacturing was the largest in
dustrial class contributing to income,
accounting for ~ per cent Of the total
distributed In 1929. Then came trade,
finance and services. The decline in
income distributed was most severe
in the construction industry and the
volume Of this In 1882 was only 28
per cent Of the amount paid out In
1920. Correspondingly large declines
nnnaaGund IA 0khnr duYnlnlA nnods n.