Evening star., 1940-08-13
Advance Is Extended
By National Income
For Third Month
s5,7e3, 900, 900 Is Total
For June, Good Rise
From Previous Period
Special Dispatch TO The Star.


NEW YORK, Aug. l3.-The ma
tional income produced in the United
States extended its recovery in June
for the third consecutive month,
according to the Alexander Hamil-
ton Institute. It amounted to S.
1913 900 900 in June, as compared with
S5,7O3 100000 in May, and with the
1910 low of s5,49e 10000 in March.
Although the national income in
June was still below the 1910 peak
of 6,ll5,000,00 in January, it was
1870 per cent larger than in June
last year, when it amounted to S.
127,000.000.
Preliminary information indicates
that the national income showed a
further expansion in July. Indus
trial activity was apparently well
maintained while there is little
question that shipments of agri-
cultural products showed the usual
seasonal expansion. Although COM
modify prices failed to develop
strength in July, they held up rela-
lively well at the June level and
were consequently no particular OBJ
stacle to an expansion of the
national income The prospect is
that the national income will con-
tinue to expand during August, Sep
tember and October.
Rises for First Half
The national income during the
first six months rose from $30554,-
100000 to ,O78,OOO,OOO this year.
This was larger than in any similar
period since 1880 with the exception
of 1887. In the final half of 1887
the national income amounted TO
S35 .428 100000 and was. consequently,
not much larger than in the first
half of 1910 The present outlook
is that the national income in the
last half of this year will be larger
than in the first half.
Such expansion is the usual trend
except in years of severe defation-
ary movements, such as 1880, 1881
and 1882. No such deflationary
movement is in prospect for the
last half of this year In fact, if
the war continues, the tendency
should be toward imitation. Even
If the war should come to an end
in the near future, the prospective
heavy spending on ornaments by
the United States Government will
tend to have some inflationary
effct.
Largest Gain in Decade.
1t is questionable, however,
whether the national income in the
last half of this year will show as
great a gain over the first half as
it did in 1885, The national income
in the last half of 1889 was S8,27O.-
100000 larger than in the first half,
by far the largest gain in the past
decade. 1t is possible that the ma
tional income during the last half
of 1910 will not be much greater
than during the last half of 1899.
This will mean, however, a substan-
tial increase over the first half of
1910. since the national income in
the last half of 1889 amounted to
$38,824 100000, or S4,746, 900, 900 more
than in the first half of 1910
If the national income during the
last half of 1910 is as large as in
the last half of 1889 the annual in
come this year will amount to nearly
S73,000,0 100000, as against S69,378,-
100000 last year. The annual ma
tional income this year will thus be
larger than in any preceding year
since 1929, when it amounted to
S82 1886 100000. It will exceed the
income of s71,172 900 900 in 1887,
when the peak of the recovery from
the depression was reached.