Evening star., 1941-07-23
Record Per Capita
Income Of $500 Seen
InU. ). This Year
National Figure Of 86
Billions Forecast, ;
Billions Above 1929
BY OLIVER MCKEE.


IN terms Of average 1935-i939
dollars, the American people will
have a per capita income this year
of approximately $500, the largest
in our history. Federal experts
estimated today. Using the same
dollar yardstick, per capita income
in 1929 was $3.50, and in 1892, the
low point of the depression, 1t fell
to 1898.
National income this year is ex-
pected to reach q total of at least
$50 900 900 900, an increase of ap-
proximately $4,000, 600, 900 over 1910,
and $4,000, 900 900 greater than in
1929 Though the population of the
United States is nearly 10000 900
more than in 1929, the price level
in that year was higher than for
the period 193571939. Conversion of
1929 income into average dollars of
this base period gives a per capita
figure for that year about $50 less
than that indicated for 1941.
Three factors are mainly RESPONSE
bic for pushing national income to
a new high peak. The first-and
most important-is the Govern
ment's defense expenditures. Ac-
Cording to the Office of Production
Management, expenditures for all
defense purposes totaled approxi-
mately $7,O7O,00O,000 during the
fiscal year ending June 80. With the
speedup in industrial production,
monthly expenditures for defense
are expected to show a substantial
increase during the last half of the
calendar year.
Wages and Salaries Up.
Wage and salary increases have
been another important factor con-
tributing to the current expansion
in national income During the first
five months of 1941, approximately
s23,182, 100000 were paid out in
salaries and wages, as compared with
s19,686 100000 during the same
period last year, according to Com
merce Department estimates In the
first five months of 1929, employe
income was estimated at $21 ,349 ,000,-
600.
Higher farm earnings is another
major element in the national in
come picture. During April, the
Surplus Marketing Administration
began the purchase of pork, dairy
and poultry in the open market in
accordance with a plan to advance
prices and stimulate production of
these foods. Congress also passed
legislation recently increasing to IS
per cent of parity Commodity Credit
Corp. loans on cotton, wheat, corn,
rice and tobacco.
Higher loans on principal crops
and larger returns from livestock
are expected to boost farm income
this year by 81 ,000,0 100000. Farm in
come last year was estimated at So
100000 900.
IL Billions in 1929.
II present forecasts are correct,
farmers earnings will be the largest
since 1929, when their income
totaled $11 200 100000. In terms of
real income, the farmers return
may be even greater than in 1929,
since prices paid for commodities
used in agricultural production and
in consumption on farm homes
have declined about Is per cent since
that year.
The portion of national income
originating in the Government al
most doubled between 1929 and
1910. The proportion this year is
expected to be even larger than In
1910. In 1929, the Government &C
counted for only 7.6 per cent of the
Nations income. In 1910, its con-
tribution was 1875 per cent. The
growth has largely been due to the
increase in Federal disbursements.
The portion contributed by State
and local governments has shown
little change.
Between June l and December 81,
defense construction expenditures
will total s2,235 600, 900, according to
the July issue of the Commerce De-
partment's Survey Of Current Busi-
ness, published yesterday. THE
program of plant facilities is yet far
from completion" it said. Less
than one-third Of the expected az
gregate outlay has been made to
date. Upon the construction of
these new plants hinges much Of
our ability to secure the final prod
ucts needed for defense"