The figures for Agriculture were taken directly from the Census of Agriculture, 1935, and include value of land, buildings, equipment, and livestock. The estimate for value of residential housing is very crude. It was derived essentially by multiplying the average value of owned and rented homes by the number of homes reported by the Bureau of Census for 1930, as indicated in table VI. Because the estimate amounts to such a large item and because it is so crude it is given below as a bracket. The value of personal property in 1935 was estimated by summating the value in the hands of consumers of semidurable goods and consumer durable goods including passenger automobiles. These estimates were based on annual data on commodity flow as given by Simon Kuznets, Commodity Flow and Capital Formation. Table VII shows the procedure used in computing the estimates. In table VIII there is presented the estimated total national wealth by segments. The estimates for the segments have been derived from the sources cited above. However, the estimates are crude approximations and should be considered as such. For instance, the combined Government and finance segments are estimated to amount to 65.5 billion dollars, but have a possible range of from 60 to 70 billion dollars. Simi- TABLE VII.-Method of estimating personal property in the United States, 1935 1 Simon Kuznets, Commodity Flow and Capital Formation, National Bureau of Economic Research, 1938, line la, p. 484. 4 Assuming a constant depreciation at the rate of 10 percent per annum. Kuznets, op. cit., line la, p. 484, divided by line la, p. 485; i. e., consumers' durable goods in current dollars divided by consumers' durable goods in 1929 dollars Kuznets, op. cit., p. 146 Line (7) mínus line (8). Percent of line (9) to line (7). 10 Assuming no change from 1933 11 Kuznets, op. cit., p. 478. Sales to ultimate consumers. 13 Assuming inventory change of -100 million dollars per annum. 13 Applying ratio (line 10) to line (11). 14 Applying the cumulative survival rates: 30 percent of value remains after 1 year, 50, 70, 90, 100 percent remaining after the second, third, fourth, and fifth years, respectively. 15 Kuznets, op. cit., line I-1, p. 478, divided by line I-1, p. 479, i. e., consumers' semidurable goods in current dollars divided by consumers' semidurable goods in 1929 dollars. 16 Line (13) divided by line (14). 17 Same as line (2). 18 Assuming a constant depreciation at the rate of 12.5 percent per annum. 19 Bureau of Labor Statistics index of automobile prices. 30 Line (17) divided by line (18). * The miscellaneous segment is estimated to be less than one-half billion dollars and is therefore not included. 1 The wealth of the finance segment was estimated to be about 16 billion dollars. NOTE. The wealth given above for service includes, in addition to value of property of public educational institutions, an estimated value of 8 billions of dollars of privately owned tax-exempt property such as churches, benevolent institutions, schools, libraries, and museums. The data presented in chart I of chapter III are based on table VIII. In each segment inventories were deducted from the total. To estimate the value of buildings and equipment, it was also necessary to deduct estimates of land values. The division of values between land and other fixed assets was based on data in the Federal Trade Commission's report on National Wealth and Income for 1922, for all segments except agriculture, which was estimated on a basis of the ratio of land value to total land and buildings reported in the Census of Agriculture, 1930. Table IX gives the total value of plant and equipment for four major seg ments. In addition to the value of buildings and equipment for 1935, this table also gives the data from which table III of chapter III was derived. These data in table III were derived by dividing the total value of plant and equipment by the 1919-1933 average annual value of construction and equipment for each segment as estimated by Simon Kuznets of the National Bureau of Economic Research. Finally, table I of chapter V was derived by dividing the value of land, buildings, and equipment obtained for the specified segments, by the method indicated above, by the equivalent full-time number of workers shown for the corresponding segments in table II of the report, Patterns of Resource Use. the same series used in chart I of chapter I except that in that chart national income was expressed in 1929 dollars. For the period 1863-1920, the index of physical production as given by Warren and Pearson was adjusted to the real national income produced series using the ratio of the two indexes in 1920. It is apparent from this long-time series on the volume of production that the annual rate of growth for the period 1863-1879 is greater than for the subsequent period (excluding the recent depression). The fitted trend for the years of the period 1879-1929, however, shows a fairly uniform annual rate of increase of approximately 3.5 percent. This trend line fits the data very well-the residual areas (bounded by the trend line and the straight lines connecting the actual values for successive years) being small and alternating above and below the trend line over relatively short periods. The trend values are calculated from the following equation obtained by the method of least squares applied to the linear logarithmic form and using the data for the years of the period 1879-1929: Table X shows the actual data on physical production and the corresponding trend values. 7. Income Produced by Segments of the American Economy, 1935 Chart IV of chapter V is based on estimates of national income published by the Department of Commerce. The segments include the following industries: Government and finance.-This segment includes Federal, State, and local governments, minus salaries of school teachers which are included under services to the consumer, and receipts of post office which are included under utilities; also included are banks, insurance companies, and real estate, minus brokerage and building and loan associations transferred to miscellaneous, and "net rentals received by individuals" transferred to services to consumers. Utilities. This segment includes the following industries which are defined in the publication of the Department of Commerce, National Income, 1929–35, namely, electric light and power, gas, transportation, communication and post office, which is excluded from government. Services to the consumer.-This segment is defined as in the publication of the Department of Commerce, referred to above. To the income produced is added "net rentals received by individuals" and salaries of school teachers-the latter was subtracted from income produced by government Agriculture. This segment is the same as that defined in the publication of the Department of Commerce, referred to above. Manufacturing. This segment is the same as the corresponding segment defined in the publication of the Department of Commerce, National Income, 1929-35. To the income produced by the segment was added the shipbuilding industry. Trade. Same as definition given in Department of Commerce publication. Minerals. This segment is the same as the definition of "Mining" given in the publication of the Department of Commerce. Miscellaneous.-Same as the definition given in the Department of Commerce publication. To the income produced by this segment was added income produced by brokerage houses and building and loan associations. Construction. This segment is the same as the corresponding segment defined in the publication of the Department of Commerce, except for the shipbuilding industry which was transferred to the manufacturing segment. 8. The Distribution of the Food Dollar, 1935 The estimated distribution of the food dollar is a crude approximation of the shares going to retailers, wholesalers, transportation agencies, processors, and farmers. The estimates were derived in the following manner: Farmer's share.-Cash income from farm marketing, not including cotton, was 5,638 million dollars in 1935. The value of exports of edible farm products was $56,572,000 in that year. This figure was reduced by 20 percent to allow for mark-up between farmer and exporter and the result subtracted from cash income. leaving a balance of 5,593 million dollars as the farmer's share of consumer food expenditures. Processors' share. The "value added by manufacture" for all food industries in 1935 was 2,789 million dollars. The total value of products of the food industries in 1935 was 9,510 million dollars. Exports of manufactured foods were valued at 150 million dollars or 1.8 percent of total value of manufactured foods. This ratio was applied to the value added to estimate that part represented by exports and the value added was reduced by this amount (50 million dollars) leaving a balance of 2,739 million dollars as the processors' share of food expenditures. Wholesalers' share. The expenses of all food wholesalers as reported in the Census of Business, 1935, were totaled. To this figure of 1,055 million dollars was added 177 million dollars representing profits of wholesalers. The Federal Trade Commission's report on Retail Price Maintenance shows profits of wholesale grocers to be 1.6 percent of net sales in 1926. This ratio was applied to the total sales of all food wholesalers as reported in the Census of Business, 1935, to obtain estimated profits of 177 million dollars. Retailer's share. -The expenses of food stores, eating and drinking places, and beer and liquor stores were added. Expenses in connection with food sales of other stores were estimated by use of the commodity sales of retailers published for 1929. General stores with food, drug stores, and food and general merchandise stores showed sales of food in 1929. The ratios of these sales were applied to the sales of these stores in 1935. Expenses were obtained by applying the expense ratio of each of these kinds of stores to their estimated food sales. Total receipts of all hotels were broken into sales of meals and beverages and other receipts by use of the ratio of meals and beverages to total receipts of those hotels reporting the break-down. The expense ratio of eating and drinking places were used to derive expenses of hotels for meal and beverage sales. To the total estimated expenses of all these groups was added a profit of 5 percent on net sales of food and meals. Transportation.-The Interstate Commerce Commission reported freight revenue on individual commodities transported by rail in 1936. Revenue on food products amounted to 646 million dollars in 1936. These products were divided into agricultural, animal, and manufactured products. Each of these groups was reduced by the ratio which was shown for the total of those groups in 1935 to the total in 1936 giving an estimated figure of 582 million dollars for freight revenue on food products in 1935. The Bureau of Agricultural Economics, Department of Agriculture, estimated that the truck revenues from food products approximated 25 percent of the rail revenue or 145 million dollars. Thus, transportation's share of food expenditures amounted to 728 million dollars in 1935. Summary.-Total expenditures of food would approximate the amounts received by farmers, the expenses and profits of manufacturers, wholesalers, and retailers of food, and costs of transportation. The estimated total of 13,629 million dollars in 1935 is distributed as follows: 1920.. 2,739 20. 1 1921. 1,232 9.0 1922 3, 337 24.5 1923. 728 5.3 1924. 1925. 13, 629 100.0 1926 1927 1928 Year The total food expenditures estimated in the National Resources Committee report, Consumer Expenditures in the United States, amounted to 14,753 million dollars. Since this figure is based on a sample, which is weighted heavily with low-income families, an upward bias probably exists in food expenditures. On the other hand, sales of food by retailers, and sales of food products to consumers by 1 Obtained by dividing indexes of total agricultural employment by agricultural production. The indexes of employment are given in the report of the Works Progress Administration, National Research Project, Trends in Employment in Agriculture, 1909-1936. Indexes of production were obtained from Trends in Size and Production of the Aggregate Farm Enterprise, Works Progress Administration National Research Project, Report No. 8. 11. National Income Paid Out, 1919–37 Charts I, II, III, and IV, presented in chapter VI, are based on data supplied by the National Income. Section of the Bureau of Foreign and Domestic Commerce, Department of Commerce, and the National Bureau of Economic Research. The data on which charts I, III, and IV are based are presented in table XIII. The classification of industrial segments used in chart II is according to the definitions given in the National Resources Committee report, Patterns of Resource Use. The basic data, however, were compiled and published by the Department of Commerce in National Income, 1929-35. Since the classifications given in the publication of the Department of Commerce differ from those given in the Patterns of Resource Use, certain adjustments were made. These adjustments were limited by the break-downs of the basic data and not all of the adjustments performed on the material on income produced could be made to these data. The data in chart II of chapter VI are, therefore, not quite comparable with those in chart IV of chapter V. In order to make the classifications comparable to those in the chart on income produced, the following changes are indicated by the segment definitions: Post office and public education should be removed from the Government segment and added to the totals for railroads and utilities, and services to the consumer, respectively. Brokerage houses, building and loan companies, and realty companies should be subtracted from finance and added to miscellaneous and services to the consumer, respectively. Shipbuilding should be shifted from construction to manufacturing. These changes in classification were made, with the following exceptions. The detailed break-down, by industrial group, for dividends, interest, rent, royalties, was not available. Therefore, this type of income paid out was not quite accurately distributed. Post office and public education could not be separated from the rest of the Government segment and added to utilities and services to the consumer, respectively. Rent and interest on bonds for these items are probably large; hence this type of income paid out by the Government segment is overstated and utilities and services to the consumer understated. Similarly, shipbuilding could not be separated from construction and added to manufacturing, and brokerage could not be shifted from finance to miscellaneous. The other two types of income paid out, i. e., to employees and entrepreneurs, are comparable to the totals for income produced. More detailed breakdowns were available than in the case of dividends and interest, and the corresponding changes in classification were made. A small subclassification under finance, realty companies, was not separable from finance for any type of income paid out, but the resulting error is probably insignificant. As in the case of income produced all net rents and royalties were put into services to the consumer. Social security contributions by employees were included in miscellaneous salaries and wages. Work relief was included in salaries and wages paid by government. 12. Derivation of Indexes of Consumer Expenditures and Consumer Income, 1929–1938 In chapter VI a chart is presented on which appears an index of consumer expenditures and an index of consumer income for the years of the period 1929 to 1937. The index of consumer income was derived from data published by the Department of Commerce and consists of income paid out, plus noncorporate business savings. The index of consumer expenditures, on the other hand, was derived from data obtained from numerous sources. Unfortunately, the data from which an index of consumer expenditures could be derived are |