Evening star., 1936-08-02
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all employable persons, or even the
average income of those who worked
at any time during the year. Rather,
they approximate the average earn
ings of employees engaged throughout
the year, he says.
The trend Of the index Of per cap
ita earnings of all employees and the
trend Of the Bureau of Labor statistics
cost Of living index were very similar,
Nathan finds In most years the in
deXes are within one point of each
other, and in no year were they very
far apart. The figures suggest that
the real purchasing power of those
who continued in full-time employ
ment throughout the depression did
not vary greatly" But he adds that
such broad generalizations must be
subjected to numerous qualifications.
Witt Bowden of the Bureau of Labor
Statistics finds that the most extensive
change observable in connection with
manufacturing industries as whole
after 1882 was "the fact that total pay
rolls Of wage earners increased by more
than one-half, 50 per cent. in 1885 as
compared with 1882" At the same
. time, production increased 43 per cent
the number Of wage earners increased
% per cent and per capita weekly
earnings l9 per cent.
/ Per capita weekly earnings in 1893;
of those who had jobs in the same
industries are estimated by Bowden
at "a per cent of the 1929 level. but
this figure rises to 103 per cent when
adjusted to changes in the cost-of-
living index
Nathan regards as particularly i'm
portant, in his consideration of bust.
ness income. the fact that income
paid out as wages. salaries, inter
est, dividends and profits is rapidly
approaching a parity with Income
produced" in the form of goods anc
services. In 1880 business drew on it!
reserves for wages, dividends and 81
forth to the extent of billion dollars
The figure had increased to more thar
8 billions in 1881 and to nearly
billions in 1882 But in 1888 there
was a decline to 80 billions. in 1894 6
further decline to It's billions and il
1885 to 628 millions. The figures
Nathan believes. reflect a basic i'm
provement and indicate an early re.
turn to the point where business vii
be able not only to pay dividends bu
have something left over. In 1925
business accumulated "a billions
above requirements.
Agriculture, meantime, has beer
getting a greater share of nationa
income as business conditions i'm
proved. Its share of the total II
1885 was 81 per cent. as compared
with SO per cent in 1929 and SO PEI
cent in 1882. The Department O.
Agriculture on July 90 announce
that the general level of farm price!
was higher than at any time since
September of 1880 and IS per cen
above the pre-war level. Prices o
many things the farmer buys alst
advanced, the department pointed
out, but nevertheless. the ratio o.
prices received to prices paid ros'
during this month lending July Is
from 80 to 93"
The extent to which national income
was being concentrated in the hands
of a relatively few persons, who savee
and invested, is discussed at length II
the recent Brookings Institute report
Economists found that 81 per cent o.
the families of the country in 1872!
had incomes of less than 81 900, onl!
per cent had more than $4,000, anc
2.3 per cent $4,000 or more. Th'