Evening star., 1937-06-18
NATIONAL INCOME
CHANGES WATCHED
M anufa cturing Shows
Smaller Part Of Total.
Federal Share Increases.
BY ]. G. DONLEY.

Special Dispatch to The Star.
NEW YORK, June 1S-It Is In
teresting to speculate on the posi-
bilities Of the Presidents vaguely out
lined plan for financial rehabilitation
Of what he calls the illy-clad, poorly
housed and improperly-fed one-third
Of the Nations population.
Nothing has been said as yet about
ways and means Of increasing the
incomes Of those in the lower brack-
cts. But 1t Is readily apparent
that two main courses are open. A
greater measure OF well-being may be
expected to filter down to the lower
income groups If we continue to step
up our production, while at the same
time raising wages without too much
increase in the price level. That
way to higher standard of living all
around is based on the fundamental
that in order to distribute more we
must first produce more wealth in the
form OF goods and services.
The other fork Of the road looks
much more attractive. According
to the guide-posts, 1t will bring us
to leveling up Of the purchasing
power OF the lower income groups
by edistributing what we are now
producing in the way OF goods and
incomes. 1t sets out to reach more
equable division Of national wealth
produced, or national income paid
out. by taking of here and adding on
there.
Big Changes Seen.
It Is interesting to observe some
striking changes already accomplished
in the distribution Of national income
paid out. but which have escaped
much attention. Probably few people
sense the relative Importance of gov
eminent as a distributor of income
But the fact is that in the division Of
income, government took second place
in 1885, and the only industrial Sec
ton which outranked government in
that year was manufacturing.
Back in 1929 Government was in
fifth place in the division of incomes,
manufacturing coming first, followed
by trade, service and transportation,
In that order. In 1880 Government
moved up ahead Of transportation,
standing not far behind service. In 1881
Government moved into third place,
beating service out of that position,
and it held third lace in the next
three years, until in 1885 it stepped
ahead of trade. its total payments
rising to 8,646,OO0,O0O.
Comments on Shift.
Commenting on the changing pic
ture OF income distribution, the In
dex. a publication of the New York
Trust Co., recently said:
THE expanding functions of Gov-
ernment have added to Government
pay rolls, and other income producing
groups will very definitely have to
carry burden greater than here
tofore in supporting these employees
Furthermore, this burden may be in
tensified If levies on capital-of which
the estate taxes and the tax on sur
plus are examples-reach poin,
where income is diminished by rea.
son OF insufficient total productive
wealth"
Government payments were the
only division OF income which were
higher in 1885 than in 1929. And de-
spite recovery, manufacturing ac-
counted for smaller proportion OF
the total national income paid out
in 1885 than it did in 1929-2l.3 per
cent-as against 229 per cent. Trades
proportion dropped from 1873 per cent
to 1873 per cent; that of finance from
los per cent to 81 per cent, and con-
struction's from Al per cent to 81
per cent.
tCopyright, 1877