Rubber

January saw a slight rise in crude-rubber prices as the industry anticipated increased factory buying with the turn of the year. This failed to materialize, however. In February the price index fell 4.5 percent, and the downward trend continued through March. The dull market may be attributed to reduced consumption by tire manufacturers as supply caught up with demand and some of the larger companies curtailed production. Another factor which contributed to the market weakness was the easing of the political situation in the Netherlands East Indies, which assured to manufacturers additional supplies of crude rubber.

The index of prices of tires and tubes remained unchanged for the quarter, although there was a slight increase in the excise tax on the first of January. Reappearance of the cheaper "second line" tires formerly produced by the big manufacturers appeared likely as the quarter ended.

Expenditures of Moderate-Income Families: 1934-36 and 19451

IN THREE CITIES-Birmingham, Indianapolis, and Portland (Oreg.)-a striking increase took place between the mid-thirties and the mid-forties in the proportion of income that moderate-income families spent for food. On the other hand, the proportion of income used for transportation, including automobile operation and purchase, decreased between the two survey periods.2

In 1945, after payment of taxes, half of the

1 Prepared by Mary C. Ruark of the Bureau's Division of Prices and Cost of Living.

The studies of family expenditures, on which the present comparisons are based, were made by the Bureau of Labor Statistics in 1945 and in 1934-36. The 1945 survey covered prices paid by families in 1945, in Birmingham, Ala., Indianapolis, Ind., and Portland, Oreg.

The surveys of the 1930's covered several years. For Birmingham data, see BLS bulletin No. 640, Money Disbursements of Employed Wage Earners and Clerical Workers in Twelve Cities of the South, 1934-36; for Indianapolis data, see BLS bulletin No. 636, Money Disbursements of Wage Earners and Clerical Workers in Eight Cities in the East North Central Region, 1934-36; for Portland data, see BLS bulletin No. 649, Family Income and Expenditure in Four Urban Communities in the Pacific Northwest, 1935-36, Vol. II, Family Expenditure.

Portland, Indianapolis, and Birmingham families of two or more persons had net incomes of less than $3,200, $2,900, and $2,400, respectively.

In 1945, Portland families of 2 or more persons were able to break even with net incomes of $1,850. These families, averaging 2.5 persons in that year spent an average of 24 cents a person per meal for food, and $30 a month for housing—including fuel, light, and refrigeration. They paid $126 during the year in income and personal-property taxes.

Indianapolis families, averaging 3.2 persons, were able to break even at the $2,644 net-income level, and spent an average of 26 cents a person per meal. Housing averaged $37.66 a month, and income and personal-property taxes amounted to $299.

A similar analysis cannot be made for Birmingham families. Since in that city credit is rarely extended to the lowest-income families, they live within their incomes only by the strictest economy. Average food expenditures at the income levels under $1,000 and from $1,000 to $2,000 were 13 cents and 17 cents a person per meal. Many of the families in these income groups had members working as domestic servants, who no doubt supplemented their food purchases with food received at their places of employment. Other families raised additional food for their own use, and some families, comprised of aged couples, received gifts of food from their children or friends. Housing expenditure, including fuel, light, and refrigeration, averaged $13 a month for families having net incomes under $1,000 and $17 a month for families in the $1,000-$2,000 income class. Life insurance which for both of the lowest income levels in Birmingham ranked sixth in expenditure importance and took 4 percent of income, was apparently bought at the expense of other items.

In 1945, single persons living independently and having incomes (after payment of taxes) of $648 in Birmingham, $1,254 in Portland, and $2,284 in Indianapolis, were able, on the average, to cover current expenditures. Approximately a half of the single individuals in Birmingham, a fifth in Portland, and four-fifths in Indianapolis, had incomes below these amounts, and accumulated deficits during the year.

In each survey period, a group of families of approximately the same size with about the same

money income was identified, which made possible a comparison of changes in average expenditure

to to to and $2,000 $3,000 $4,000 over

to to to $2,000 $3,000 $4,000

and over

to to to $2,000 $3,000 $4,000

and

over

Excludes principal

1 Based on survey distribution. (In Indianapolis this distribution was adjusted to compensate for the relatively larger proportion of refusals among certain occupational groups and rent levels.)

* Personal taxes (income, poll, and personal property) have been deducted from income. Total money income may be obtained by combining the amounts shown on line 2 with those for personal taxes.

Inheritances and large gifts are not considered current income; inheritance and gift taxes are excluded from personal taxes.

Includes expenditures for alcoholic beverages.

Includes rents for tenant-occupied dwellings and for lodging away from

These figures represent the differences between income and expenditures plus insurance-premium payments. Included as savings are net war-bond purchases and amounts deducted for social security, retirement plans, etc., not available separately.

7 Family size is based on equivalent persons, with 52 weeks of family membership considered equivalent to 1 person; 26 weeks equivalent to 0.5 person, etc.

patterns of such families in each city. As might be expected, in all three cities, a much larger percentage of income in 1945 went for food, and a much small percentage for transportation, including automobile purchase and operation.3

In 1934 the Birmingham families, in the income group $2,100-$2,400, had an average annual income of $2,197, and family size averaged 2.98 persons. In 1945, families of wage earners and clerical workers in the income class $1,000-$3,000 had a comparable average annual income of $2,192, and averaged 2.97 persons (table 2). Indianapolis families of wage earners and clerical workers, with incomes of $2,100 and over, in 1935, had an average income of $2,452. In 1945, a comparable average income of $2,488 was found for families in the $2,000-$3,000 income group. The family-size averages for the Indianapolis groups in the respective periods were 3.53 and 3.15. In Portland, families of all occupational groups were included in the survey made in 1935-36, and Portland data for the two periods are therefore more nearly comparable. In both periods, size of Portland families with an average income of $3,500 averaged between 3 and 3.5 persons.

One of the most striking changes in the manner in which family income was used is the increase in the proportion spent for food by families of approximately the same size and having about the same income in 1945 and the mid-thirties. These increases amounted to 23 percent in Birmingham, 43 percent in Portland, and 51 percent in Indianapolis. When allowance is made for changes in the level of food prices as shown in the consumers' price index, the indication is that the increases are largely accounted for by the rise in prices, and that in general families with fixed incomes maintained the quality of their diets by reducing expenditures for other goods and services, by drawing on their savings, or by going into debt. Another striking change was the decrease of the percentage of income used for transportation, including automobile operation and purchase.

In the 1945 surveys, money income was defined as income after the deduction of Federal and State income taxes, personal property and poll taxes. In 1934-36, in Birmingham and Indianapolis, for families of the size and with the amount of income under consideration, income and personal taxes were of so little importance that they were not tabulated as a separate item, and have not been deducted from income. For Portland, taxes in the earlier period were tabulated separately and have been deducted from income, for this comparison.

In Birmingham and Indianapolis the 1934-36 survey covered only families of wage earners and clerical workers. For purposes of this discussion therefore, 1945 data for only families in these occupational groups have been used.

1 The data used for the earlier period in Birmingham were obtained in 1933-34, those for Indianapolis and Portland, in 1935-36.

Only white families of wage earners and clerical workers are included in the averages for Birmingham and Indianapolis.

In Portland, the observed average income was $3,507 in 1945 and $3,253 in 1935-36. The expenditures for the $3,500 average income were estimated by simple interpolation between income classes $2,000 to $3,000 and $3,000 to $4,000 in 1945, and $3,000 to $3,499 and $3,500 to $3,999 in 1935-36.

placed on gasoline consumption, during the war period.

Probably as a result of a shortage of domestic workers in 1945, a decrease occurred in the proportion of income that went to household operation in Birmingham and Portland. In the earlier period, expenditures for domestic service accounted for more than a fourth of all expenditure for operating the home. The reduction in expenditures for household help in 1945 more than compensated for price increases in the other items of household operation. In Indianapolis, where expenditure for domestic help was relatively small in both periods there was an increase from 1935 to 1945 in the amount of income spent for household operation.

During 1945, Indianapolis families used more than three-fifths of their income for the necessities of living—that is, for housing (including fuel, light, and refrigeration), household operation, and food. The expenditures for these items in 1945 were 39 percent greater than in 1935. Consequently, savings and money allocated to clothing, furnishings, and equipment, which are among the most elastic items of family outlay, were reduced by 64 percent between these two periods.

In Birmingham and Portland, where the percent of income for food expenditures did not increase to the same extent as in Indianapolis, and where there was a reduction in the proportion of income spent for transportation, housing, fuel, light, refrigeration, and household operation, between 1934-36 and 1945, expenditures for clothing and housefurnishings showed an increase between the two periods.

With the exception of medical care, the movement of other items followed the same general pattern in all three cities. In both Birmingham and Indianapolis, expenditures for medical care, expressed as a percent of income, increased from 1934-35 to 1945. In Portland, where the group of families under consideration had a higher average income, there was a decrease in such expenditures between the two periods.

Since this comparison includes one group of families only in each of the three cities, the implications are necessarily limited. As additional cities are surveyed and data for larger groups of families become available, it will be possible to determine more clearly what differences occurred in family spending during the 10-year interval.

Cotton Garment Industries:
Wage Structure, September 1947 1

STRAIGHT-TIME HOURLY EARNINGS of the 153,000 plant workers estimated to be employed in the manufacture of cotton garments averaged 79 cents in September 1947. This represents an average increase of approximately 25 percent over April 1945, when a similar study was made. Average earnings by industry, ranked in terms of employment, were: Men's and boys' dress shirts and nightwear, 83 cents; work pants, 70 cents; overalls and industrial garments, 79 cents; work shirts, 71 cents; and washable service apparel, 96 cents (table 1). Approximately 9 of every 10 plant workers were women. Except for washable service apparel, which employed relatively few workers, the average earnings of women were only 2 to 3 cents below the industry wage levels, whereas earnings of the men exceeded these levels by 14 to 16 cents.

Nationally, hourly earnings of at least 65 cents but less than $1 were received by approximately half of the plant workers. Among the four largest industry groups, from 47 to 57 percent of the women were within this earnings spread; the corresponding proportions of men were from 44 to 59 percent. The significant differences between women's and men's earnings, however, occurred outside the 65-cent to $1 range. Among women in dress shirt establishments and in those making work pants, 23 and 48 percent, respectively, earned less than 65 cents, as compared with only 13 and 23 percent of the men. The proportion of women earning $1 or more ranged from only 4 percent in work shirt to 20 percent in dress shirt establishments, compared with 26 and 39 percent for the men. These differences reflect the greater representation of women in semiskilled and unskilled jobs.2

1 Prepared by Louis Badenhoop of the Bureau's Division of Wage Analysis Field work for the survey was under the direction of the Bureau's regions. wage analysts. A mimeographed report with more detailed data will be available in the near future.

The present study covered establishments with 8 or more workers primarily manufacturing men's and boys' dress shirts and nightwear, work shirts, werk pants, overalls and industrial garments, and washable service appar (Industry groups 2321, 2324, and part of 2329 as defined in the 1941 edition of the Standard Industrial Classification Manual issued by the Bureau of the Budget). Altogether 541 establishments, representing nearly one-half of the employment in these industries, were included in the sample.

A great majority of the women workers in cotton garments indutries operate various types of sewing machines and perform a wide variety of sewing