Evening star., 1941-08-17
Defense Income Rise
Well Scattered Over
Nation, Experts Say
Increases Show Ronee
From J to Is Per Cent,
Economists Declare
BY OLIVER MCKEE.


Though 85 per cent of the total
value of the primary contracts so
far awarded in the defense program
have gone to firms located in five of
the nine major geographical regions
of the United States, the income
producing effects of the armament
boom have been widely distributed
throughout the country. according
to an analysis by Government econ
.onlists. it was revealed yesterday.
!. During the first five months Of
i941, the percentage increase in in
come payments In the four regions
which have received only IS per
cent of the defense contracts. has
not been a great deal less than the
Income gain Of the regions which
have been awarded the bulk of the
war contracts, the survey disclosed.
The five regions that have re-
ceived most of the primary defense
orders between June. 1910, and June,
1941. and their percentage Of the
national total, are as follows: New
England, 13; Middle Atlantic, 27.3;
East North Central, 1873; Pacific,
14.9. and South Atlantic. ia. AS
compared with the corresponding
period last year. these regions have
reported income gains for the first
five months of 194l of between IL
and Is per cent.
Incomes in Other Areas.
The remaining IS per cent Of de-
fense contracts have gone to the
other four regions in the following
proportion: West North Central,
4.9; East South Central, "a; West
South Central, So, and Mountain,
1.3. Income gains of these regions
range between and 10 per cent.
Government economists cite these
comparative figures as evidence that
current income expansion, due large
ly to the Governments defense
expenditures, Is fairly uniform
throughout all sections of the coun-
try, despite the fact that the geo.
graphical distribution of defense or
ders has followed closely the pat
tern of the existing concentration
Of industrial facilities.
INCW CAlS1d110 d11o ltlC dSA1lN
Coast States seem to provide the
only important exceptions, due
mainly to the establishment of new
shipbuilding and aircraft manufac-
turing facilities in these areas. With
an advance of 16 and IS per cent.
respectively, these two regions led
the country in income payment
gains during the first five months
OF l941.
90 Per Cent Of 1929 Total
For the country as q whole, 1910
income payments were 81 per cent
of those recorded in the boom year
1929. The South Atlantic States
from Delaware to Florida-have
made a bigger proportionate gain
since 1929 than any other geographic
cal region, according to statistics
assembled by Federal experts. With
a population approximately 13 per
cent greater than in 1929, income
paid out in the South Atlantic States
last year was about II per cent above
the 1929 total. This increase Is
largely to be explained by the devel-
opnent Of new and the expansion
of old industries in this area.
At the opposite extreme, three
highly industrialized States-New
York, New Jersey and Pennsylvania,
had an income last year only "a
per cent of that reported in 1929.
Other regions reported a shift in
income between these two extremes.
Among the factors entering the
equation are the differences In the
rate of population growth, the
differences in the rate of industriali-
zation, and the extent of economic
recovery in 1910.
The District last year had a per
capita income Of $1,022, a slight
increase over 1899, according to
estimates of Government experts. In
1888 the District per capita income
was $787. Because of the large
number of Maryland and Virginia
residents who work in the District,
and are paid here, computation OF
per capita income Is difiicult, and
requires certain adjustments.
Per capita income Of the South
Atlantic States In 1910 is estimated
at $437, as compared with 3573 for
the country as q whole. Maryland
had per capita Of $703, an increase
OF approximately 500 in two years.
Virginia reported a per capita in
come of s455, q gain Of approxi-
mately S67 since 1888.