Evening star., 1948-10-11
Consumers Spending
Approaching Normal,
U. 5. Report Asserts

Consumers are returning 10
"more normal" spending habits, ac-
cording to a Bureau of Agricultural
Economies report today. Agricul-
tural Department experts also look
for fairly normal economic activity
rext year, with possible increases
In Government spending, some
drops in private business outlays
and slightly lower farm prices.
At the same time the Securities
and Exchange Commission reported
that in-the-pocket currency and
bank deposits of individuals during
the second quarter of this year
were $500, 10000 over the first three
months.
Individuals had a bankroll of
5000, 0,000, 900 in savings readily con-
vertible into cash, SEC noted. This
was less than half the savings dur
ing the corresponding period last
year. but the overall total was
about the same. after including
savings in the form of home and
durable goods purchases, SEC ex-
planned. Savings through insurance
and pensions were $1,000 900, the
biggest single increase for the
April-June period.
Private Debts Increase.
The SEC survey showed Ameri-
cans went more into debt during the
second quarter of this year. Mort
gage Indebtedness increased by
81 1,100,00c, 900 and consumer indebt-
edness by s7OO, ,O00,OOO SEC pointed
out. however, this survey was made
before the new credit restrictions
went into effect.
Predicting that the current ten
dency toward more normal" spend
ing by consumers will continue in
l949. the Bureau of Agricultural
Economies stated:
Deferred demands for shoes, tex
tiles and some durable goods has
been largely met However, short
ages III several major products, par
ticularly automobiles and houses,
still exist"
Heavy Demand Forecast.
A high level of demand will con-
tinue at least during part of next
year because of aid to foreign coun-
tries and Government expenditures
for defense. the bureau forecast.
Farmers net income probably
will be off for the second straight
year" the bureau reported. The
outlook for a decline in the net in
come stems from the fact farmers
gross income is leveling off while
many production expenses are con-
tinuing upwards"
The bureau estimated a drop of
not more than 10 per cent in farm
marketing receipts next year under
the probable current year total of
$50, 900 000.0 .000
In other Government agency re-
ports, the Commerce Department
stated lumber prices have been
dropping to some extent in the
lower grades. but remain generally
unchanged for the upper grades.
oOUcIdlllIdi pllCc UcCiillcS illlSIlL
force many smaller lumber mills to
shut down, the department declared.
Lumber Exports Drop.
Lumber exports to other countries
have decreased in recent months.
mainly because of high prices and
inability of prospective foreign buy
ers to pay in American dollars, the
department explained.
Farm survey data published by
the Federal Reserve Board con-
tanned the following figures:
Farm mortgages total about
$4,000 100000 this year, compared
with $500. .O0O, 900 in 1910. Agricul-
tural income, on the basis of bank
reports, exceeded S21 600, ,O00.000 last
year. an increase of more than
$4,000, ,00G 900 over the previous year.
The net income last year was
81, ,058, ,000, 900, compared with $15.-
1873 900 900 in 1916.
Farm land is valued at s63 ,000,-
900 900, and the value of buildings
and equipment is s122 2.000, 600, 900, n
total increase of more than S19,000,-
600 900 over last year. More than
two-thirds of the farms brought in
1ocs than 90 5(lfl last wear