Leontief QuantitativeInputOutput 1936

Quantitative Input and Output Relations in the Economic Systems of the United States
Author(s): Wassily W. Leontief

Source: The Review of Economics and Statistics , Aug., 1936, Vol. 18, No. 3 (Aug., 1936),
pp. 105-125
Published by: The MIT Press
Stable URL: https://www.jstor.org/stable/1927837
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The Review of Economic Statistics
VOLUME XVIII AUGUST, 1936 NUMBER 3
QUANTITATIVE INPUT AND OUTPUT RELATIONS

IN THE ECONOMIC SYSTEM OF THE UNITED STATES
INTRODUCTION The publication of this preliminary survey is

The statistical study presented in the follow- prompted by the conviction that the inevitable
ing pages may be best defined as an attempt to path of any empirical research is that of trial
construct, on the basis of available statistical and error.
materials, a Tableau Economique of the United Governmental publications constitute the
States for the year i9i9.1 main source of primary statistical information
One hundred and fifty years ago, when used in this study. Additional data were
Quesnay first published his famous schema, his gathered from trade publications, and in some
contemporaries and disciples acclaimed it as instances the results of special investigations
the greatest "invention" since Newton's laws. have been utilized. In many cases, use was made
The idea of general interdependence existing of the work of the National Bureau of Economic
among the various parts of the economic system Research on national income.
has become by now the very foundation of eco- At the time that this study was initiated
nomic analysis. And yet, when it comes to the (I932), the publication of the detailed results of
practical application of this theoretical tool, the I929 Census was still far from complete. As
modern economists must rely exactly as Quesnay a result, the Census of I9I9 had to be used. It is
did upon fictitious numerical examples. What because of this fact that the entire investigation
would be the present state of the theory and is based on I9I9 data.
policy of international trade if, ijstead of actual
balances of foreign trade, the economist had to
base his analysis upon assumed numerical set-
ups, supplemented by scattered items of actual
statistical information? This is the situation in
which the student of economics finds himself at
present when he faces a problem of national pro-
duction, consumption, and distribution. Despite
the remarkable increase in the volume of primary
statistical data, the proverbial boxes of theoret-
ical assumptions are in this respect as empty as
ever. Considerable progress has been achieved
in the field of national income statistics. The The general business conditions prevailing
economic balance of some of the most important during that year are described in W. L. Thorp's
branches of the national economy, particularly Business Annals in the following terms:
that of agriculture, has been studied with much Revival; prosperity.
Uncertainty gives way to extraordinary activity, late
success. Thus the ground has been prepared, spring; building revival; enormous output of new secu-
at least in part, for a more complete analysis of rities; speculation; steel, coal, and railroad shopmen's
the interrelations of the -whole economic system. strikes, autumn; commodity prices rise; active foreign
trade.
Nevertheless, the difficulty of the task still Money eases slightly but tightens late in year; stock
remaining can hardly be exaggerated. exchange booms, railroads reaching peak, May, and
1 The research project, a summary of the results of which industrials, November; falling bond prices; embargo on
are presented in this paper, has been financed by the Harvard gold export removed, June.
University Committee on Research in the Social Sciences. Large wheat, fair cotton and corn crops; -prices very
Mr. Maynard C. Heins worked on it as a full-time assistant high.2
for four years. Without his able collaboration, the statistical 2Business Annals (National Bureau of Economic Research,
task could hardly have been accomplished. New York, I926), p. I43.
[ I051

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io6 THE REVIEW OF ECONOMIC STATISTICS
The position of the year I9I9 within the frame- is fairly well indicated by the three basic eco-
work of cyclical fluctuations of adjoining decades nomic series presented on Chart i.
THE THEORETICAL SCHEME AND ITS STATISTICAL APPLICATION
FUNDAMENTAL CONCEPTS side; while the sales, even if made on credit, are
credited in the same way as are the cash sales.
I
An expenditure and revenue account of this
The theoretical basis of the subsequent statis- kind may show over a period of time a negative
tical analysis is rather simple. The economic balance (sales smaller than purchases) only to the
activity of the whole country is visualized as if extent that a given household or enterprise dis-
it were covered by one huge accounting system. burses its previously accumulated cash, bank
Not only all branches of industry, agriculture, balances, or other negotiable titles, or spends
and transportation, but also the individual funds obtained by additional borrowings. A
budgets of all private persons, are supposed to positive balance (sales greater than expendi-
be included within this system. Each business tures), on the other hand, can result from an
enterprise as well as each individual household accumulation of cash, repayment of debts, or
is treated as a separate accounting unit. A com- an increase in bank deposits or security holdings.
plete bookkeeping system consists of a large The structure of the expenditure and revenue
number of different types of accounts. For our account thus described is very similar to that
particular purpose, however, only one of them of the "balance of trade" of a country; it covers
is of importance: the expenditure and revenue explicitly all the commodity and service trans-
account. It registers on its credit side the out- actions, but not the so-called capital items.
flow of goods and services from the enterprise or
household (which corresponds to total receipts II
or sales) and on the debit side the acquisition of It follows from the obvious nature of economic
goods or services by the particular enterprise or transactions that each revenue item (as defined
household (i.e., corresponding to total outlays). above) of an enterprise or household must
In other words, such an account gives a descrip- reappear as an outlay item in the account of some
tion of the flow of commodities and services as other enterprise or household. This considera-
it enters the given enterprise (or household) tion makes it possible to present the whole
through one end and leaves it by the other. In system of interconnected accounts in a single
contrast to a balance sheet, this type of account two-way table (Table I).
is related not to a single "instant" but rather
TABLE I
to a period of time, say a year, a month, or a
week. It differs from the usual profit and loss DISTRIBUTION OF OUTPUT (REVrENUE)
Distribution D_sT__ BuTio_ OF OUTPUT _R_vE_____
account in so far as it indudes all sales and all of Outlays - _
(Input) A B C D E Total
purchases. In the case of purchases, it includes
not only those representing expenses in the _*. ~~~~~~~~~~~~~~~~~~~~e
accounting sense, but also "capital outlays," A Ab A, Ad Ae 2Ai a
etc. Our expenditure and revenue account covers e
in other words the entire "balance of trade" of B Ba Bc Bd Be 2B
a
the individual enterprise (or household). e
Profits paid out to the "owners," as well as C Ca Cb Cd Ce XC

a
expenditures connected with additional invest- _ . ~~~~~~~~~~~~~~~~~e
ment (in plant, etc.), are supposed to be debited, D Da Db Dc De 2
a
together with payments for all the current oper- e
ating expenses, purchases, replacements of ma- E Ea Eb EC Ed 2E,

a
chinery, etc. Purchases made on credit or paid E E E E E
for with borrowed money are also entered, Total ia 12i, X2ic id 2id S
A A A A A
along with all other expenditures, on the debit

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QUANTITATIVE -INPUT AND OUTPUT RELATIONS I07
The capital letters, A, B, C, D, and E, indicate holds must, for obvious reasons, equal the sum
business and household units. total of their revenues.
Each row contains the revenue (output) items The simple system of letters and subscripts
of one separate business (or household), sub- used in the present description leads to an
divided -according to the origin of revenue, or, abridged method of identifying each separate
what amounts to the same thing, the destina- box of the combination table; box AB is situated
tion of its products. The figures in row A, for on the intersection of row A and column B,
example, show that the product of firm A was CD defines the square belonging to row C and
distributed during some specified period of time column D, etc.
in the following way: the amount b was taken
by the firm B, the amount c by the firm C, and III
the amounts d and e were sold to the firms D Even if the construction of an exhaustive table
describing all the transactions taking place
and E, respectively. The last a item TAi rep- the independent economic units within
between
a national economy were actually possible, the
resents the sum total of these separate entries
very size of such a table would constitute a seri-
and shows the total revenue or production of
ous impediment to any profitable use of the
firm A. In a similar manner, the subsequent
information contained in it. Obviously, con-
rows show the production-revenue distribution
siderable simplification of the original scheme is
of firms B, C, D, and E.
essential. The first step toward such simplifica-
If read vertically, column by column, the
tion is the grouping of accounts. The majority
table shows the expenditure sides of the suc-
of theoretical and practical economic problems
cessive accounts. The last item 2ia of the for the solution of which the tableau economique
A
may be used are not formulated in terms of
first column shows, for example, the total individual business enterprises and households
expenditures of firm A; the entries above it in but relate rather to whole classes of such inde-
the same column indicate the distribution of pendent units.
these expenditures among all the different The grouping can be based on many different
sources of supply; Ba was obtained from B, principles. The business enterprises can be
Ca from C, etc. The succeeding columns reveal classified, for example, according to the type of
the cost distribution of the firms B, C, D, and E. their products and segregated into separate
If it contained empirical data, the table would industries, or - if location differences are to be
naturally have a number of empty squares. brought out - a regional grouping must be
Those lying along the main diagonal are neces- applied.
sarily left open because our accounting principle Whatever the principle of classification, the
does not allow for registration of any trans- actual technique of consolidating the accounts
action within the same firm. Actually, no firm is fundamentally always the same. If, for
or household exists which sells its products or example, the firms B and C of Table i had to be
supplies its services to all the other households combined into one "industry," a new accounting
or firms, and which makes its purchases also from unit, B+C, must be formed (Table 2).
every one of them. This means that not only The new B + C row is obtained by adding
the diagonal but also many other boxes of our (vertically) the corresponding items of the rows
revenue-expenditure table will remain blank. B and C of the original Table i. An addition
The grand total of all transactions S, placed (horizontally) of the corresponding items of the
in the lower right corner, may be obtained by columns B and C produces the new group column
adding up the revenues of all the different firms B+C.
at shown in the last column or the expenditures One difference between the old table and the
as listed in the last row. Although, as was new is that the latter contains a smaller number
pointed out before, the credit and the debit of separate accounts. The grand total S remains
side of the account for each particular enterprise the same as before. The consolidated account
or household will not necessarily balance, the B+C differs, however, from the original "pri-
total expenditures of all the firms and house- mary" account; the box which lies on the main

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io8 THE REVIEW OF ECONOMIC STATISTICS
diagonal is not necessarily an empty one. If the TABLE 3

firms B and C buy commodities or services
l DISTRIBUTION OF OuTPuT (REVENUE)
from each other, as well as from other concerns, Distribution
of Oujtlays
the new consolidated account will show pur-
(Input) A B-+-C D E Total
chases or sales from B+C to B+C. This kind
e
of registered internal turnover gives rise to a A A(b+c) Ad Ae lAi
distinction between gross accounts and net a
e
accounts. The former registers all the value
B+C (B +C)a (B+C)d(B+C) 2(B+C)i
transfers between the original, simple account- a
e
ing units, irrespective of any further grouping.
D Da D(b+C) De Mi
The latter suppresses all the transactions a
I ~~~~~~~~~~~~~~e
between the members of the consolidated
E Ea E(b+c) Ed 2E
accounting group; in other words, it reveals a
E E E E
only the external relations and treats the newly
Total 2ia 2i(b+c) 2id z;o S
formed groups as if they were the original firms A A A A
and households.
TABLE 2 is smaller than that of Table 2. The difference
is due to the exclusion of the internal trans-
DISTRIBUTION OF OUTPUT (REVENUE)
Distribution .. : actions (B,+Cb).
of Outlays
(Input) A B+C D E Total The process of consolidation, i.e., the reduction
in the number of independent accounts, may
e
proceed up to the point where the whole table is
A Ab +Ac Ad Ae 2Ai
a reduced to a single box [(A+B+C+D+E)
e
B+C Ba+Ca Bc+Cb Bd+CdBe+Ce 2(Bi+Ci)

(A+B+C+D+E)I. The net content of these
a completely unified accounts equals zero.
It hardly needs to be said that such integra-
D Da Db+Dc De 2;Di
a tion of accounts reduces the volume of informa-
tion conveyed. The statement that the total
E Ea Eb+Ec Ed 2aE
.. _ __ _. _ ___ _ _ _ _ -_____ ____ amount of transactions between firms B and C
E E E E
equals (Bc+Cb) (Table 2) is considerably less
Total A 2 (ib +ic) 2id 2ie S
informative than a separate listing of sales from
A- -A A A
B to C and from C to B.
Table 2 is constructed on the principle of gross As has already been mentioned, even the most
accounting. In order to convert it to a net detailed economic study would hardly require
transaction basis, the content (if any) of the an individual treatment of all the actually inde-
box [(B+C)(B+C)], that is the entry B,+Cb, pendent households and firms. On the other
has to be suppressed. The total revenue sum hand, many modern business enterprises com-
at the right end of row (B + C) and the total bine such a conglomeration of heterogeneous
outlays sum at the bottom of column (B+C) economic activities that a distribution of all
must be diminished by the same amount. their transactions among a number of smaller,
The result is shown in Table 3. The notation more homogeneous, quasi-independent account-
of Table 2 is now somewhat modified. The con- ing units appears to be highly desirable.
solidated items are defined. not as sums of the
originally independent accounting elements, but IV
simply as homogeneous transactions between Up to this point the discussion has been based
the new composite groups. For example, the on the assumption that the primary statistical
content of the box (B + C)A, which was described material, consisting of the expenditure and
in Table 2 as Ba+Ca, is now defined as (B+C)a revenue accounts of all the separate firms and
["the product of the firm (B+C) going to the households, is absolutely complete. In view of
firm A"]; similarly we write D(b+C) instead of the practical difficulties which make such a
Db+Dc. thorough coverage of all economic transactions
The grand total S of the consolidated Table 3 actually impossible, the question arises as to

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
QUANTITATIVE INPUT AND OUTPUT RELATIONS IO9
what effect the inevitable gaps in the primary Since, under static conditions, the correspond-
accounts will have on the form and content of ing row and column sums are necessarily equal,
the final table. we find that the sum of the values transferred
The absence of a single individual account from Business to Households is equal to the
would not in any way impair the completeness total value movement in the opposite direction.
of the picture. As every transaction is always The sum total of the Household expenditures
credited to one firm or household and debited (column H) represents the "National Income";
to another, the missing item can always be found it is equal to the total value of services credited
in the corresponding "opposite" account. In to Households (row H). The "value added" in
case of a larger gap, only partial reconstruction Business is equal in its magnitude to Hb (i.e.,
is possible. All transactions taking place among the services contributed to Business by House-
the firms whose accounts are missing in our holds), and this is equal, under static conditions,
records are definitely irreplaceable. Only those to the value of goods and services supplied from
revenue and outlay items which originate in Business to Households (Bh). The total product
sales to or purchases from the "reporting" firms of industry BA+Bb equals Hb+Bb.
can be picked out indirectly from the opposite Bb represents the payments from Business to
entries. This means that the final result of the Business. Its inclusion is often defined as
completed tabulation will be the same as that "double counting" and it is very often struck
which we should get if the accounts of the from the final accounts. BA(=Hb) is defined as
"unreported" firms were consolidated into a the "net product" of industry. The Household
single group and reduced to a net basis. For accounts can also be reduced to a net basis by
instance, taking our previous example, if the disregarding the services furnished and paid for
reports of firms B and C were missing, the from Household to Household (HA). On such
revenue and outlay table would be identical a net basis the National Income is BA, which
with Table 3, which presents the "net" accounts. equals the "value added" Hb.
Under dynamic conditions the relations are
V less symmetric. The value added Hb is not
The meaning and economic nature of a necessarily equal to the Household expenditures
national revenue and outlay table may be BA. In an expanding economy, the second item
further elucidated by relating it to some of the will often be somewhat smaller than the first
basic concepts of national income statistics such one. The difference, measuring the "active
as "value added,' "social product," etc. balance of trade" between Household and
This relation would be particularly simple in Business, would indicate the transfer of pur-
a static economy. By dividing all the accounts chasing power from Household to Business (see
into two large groups, one containing the House- p. I I 5). Such transfer will also be revealed in a
hold accounts, the other, all the rest, which corresponding surplus of total industrial expend-
might be called Business, and consolidating itures (input), column B, over the aggregate
each of the two groups into a single item (H and industrial sales (output), row B.
B, respectively, of Table 4), we can reduce the The foregoing analysis is based on the assump-
total number of boxes to four. tion that the saving and investment accounts
are strictly separable. In some instances - as
TABLE 4 in the case of farming - strict separation of
Household and Business units is not onlv prac-
DISTRIBUTION OF OUTPUT (REVENUE)
Distribution tically but also theoretically impossible. A
of Outlays
(Input) (Households) B Total combined unit of this kind can increase its
capital assets by the full amount of its revenue,
H Hh Hb H,H buying capital goods, for example, yet keeping
(Households)
its expenditure and revenue account as balanced
B Bhl Bb Bh+Bb as ever.
(Business)
The same is true of an industrial enterprise
Total Hh +Bh Hb+Bb S which is incurring "capital losses," or accumu-
lating "undistributed surplus." Its current

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
THE REVIEW OF ECONOMIC STATISTICS
expenditures may still be equal to its total tions. But it is exactly this mechanism which
to a large degree determines the size of the net
revenue (see below, p. II3). In order to discover
the deficit or surplus, it is necessary to examine income flow and its variations.
the status of its fixed assets account. But "cap- For the understanding of the economic struc-
ital accounting" in this sense leads to an entirely ture of a business enterprise and evaluation of
new range of economic problems, such as the prospects of its future development, even an
depreciation, evaluation of assets, etc. The approximate knowledge of the itemized expendi-
straightforward methods of registering the ture and revenue account is more important than
actual
value of all commodities and services as they the most accurate information concerning the
cross the border lines of separate accounting single figure given for its net revenue or deficit.
units cannot contribute anything to the solution The same is true regarding empirical analysis of
of these problems. the structure of the whole national economy.
It is true that, from the point of view of welfare
VI economics, the part of the annual flow of values
In the statistical literature dealing with which- is more or less arbitrarily defined as the
methods of calculating the National Income, National Income deserves particular attention.
much attention has been given to the concept To a more detached observer, however, it may
of "double counting." appear to be a mere by-product of the whole
It is hardly an exaggeration to say that the highly complex process of production and distri-
principle of double entry constitutes the very bution of economic values.'
foundation of a rational accounting system.
Double counting emerges from a process of con- STATISTICAL APPLICATION
solidation of accounts. If two interrelated
I
accounts are added together, the same item
may appear simultaneously on the credit and The dassification of accounts used in the
on the debit side of the new account. If the following statistical study is a compromise
purpose of such an addition happens to be the between a theoretical ideal and practical neces-
elimination of all traces of the mutual inter- sity.
relation of the two accounts, this item can be According to the abstract theoretical scheme,
suppressed on both sides. all production enterprises should be segregated
Whether or not some particular transaction into a number of homogeneous industrial groups,
appears on both sides of the same (consolidated) homogeneity being defined in terms of (a)
account depends upon the method of grouping identity of products and (b) qualitative and
the accounting units for the purpose of con- quantitative similarity of the cost structure of
solidation. If, instead of segregating the house- the firms within each group. Further, all the
hold accounts in one, and all the others in a households should be subdivided into separate
second, group, as has been done in Table 4, we classes according to the kind of services they
should separate all agricultural from all non- supply, i.e., the type of income received. Actually,
agricultural items, an entirely different picture neither of these desiderata can be achieved.
would emerge. A grouping of the latter kind To begin with, a definite departure from the
reveals, for example, the "balance of trade" basic "functional" classification and grouping
between industry and agriculture. Many value of industries has been made in dealing with
items which according to the first arrangement international transactions. The consolidation of
might have been excluded because of "double all foreign economic units into a single foreign-
counting" would have to be retained in the countries' (imports and exports) account is
second, while some of the original income items obviously based upon a geographic, i.e., loca-
of the first table would have to be eliminated tional principle.
after the subsequent regrouping. Even more important is the fact that the very
In its actual application, the elimination of 1 In this connection it may be interesting to note the
extreme variability of the theoretical concept of National
the doubly counted items means the suppression
Income. Ricardo, for example, definitely treated all wages
from our record of all those statistical data which
as a doubly counted item and identified the net income of
describe the mechanism of inter-industrial rela- society with the sum total of rents and profits.

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QUANTITATIVE INPUT AND OUTPUT RELATIONS III
nature of the actual process of production and lead to a comparison of each column with the
colnsumption precludes a clean-cut differentia- corresponding row.
tion of industries. In the case of agriculture,
even the fundamental distinction between enter- II
prise and household is impossible. On the other A typical industrial distribution is exemplified
hand, the primary statistical information for by row 32, Yarn and Cloth. The gross total of
industry as a whole is fragmentary and incom- 5,578 million dollars represents the value of the
plete. Practicallv none of it could be used output of this industrial group in I919, appraised
directly; a large part of the entries in our final "at factory." Exports amounted to 3I8 million
table (Table 5, inserted between pages I24-25) dollars; 4I millions were used in agricultural
represents more or less indirect estimates. Among production; 8 millions, in automobile manu-
the lines of economic activity completely ignored facturing; 3I millions, in other wood industries
in the present analysis, the most important are (furniture). 91I millions were traded among
the entire fields of (a) distribution, wholesale and the different stages of the yarn and cloth manu-
retail, (b) banking and finance, and (c) all non- facturing industry itself, while I,208 millions
rail transportation. Not less serious is the omis- were absorbed by the clothing industry, and 290
sion of (d) the income-expenditure accounts of all millions by other textile products. The leather-
public bodies, including the budgets of federal, shoe industry took in 6 millions; the other
state, and local governments. leather industries, i million; and i89 millions
It would be erroneous, however, to conclude went to the rubber industry. One million can
that these omissions, significant as they are, be traced to the heterogeneous group of indus-
destroy the fundamental coherence of the final tries under the single heading Industries N.E.S.
table. The relation of all the "unaccounted" (not elsewhere specified), and I,8I2 millions
economic units to the rest of the system is went to consumption.
implicitly reflected in the anonymous "Undis- Thus 4,8I6 millions of yarn and cloth products
tributed" account (Table 5). are allocated to definite accounts; subtracting
A detailed presentation of methods of com- this from the sum total of 5,578 millions, we
putation and a description of all statistical obtain a residual of 762 millions. This balancing
sources will be given in a later part of this paper. item is entered into the special "Undistributed"
The purpose of the present analysis is to show column. This column includes both those
what the meaning of the general table (Table products
5) the use of which is entirely unknown
would be if the numerical data contained in it and those whose classification (as derived from
were accepted at their face value. available statistical data) is not determinate
The major part of the 44 accounts of the enough to assign them to one of the other
main table consists of 4I production accounts: accounts. This means that the undistributed
of these, one represents agriculture; 34 represent column, on one hand, contains the net debits
industrial groups; 4, mining; one, transportation of the unreported accounts as defined above
(railroads); and one, electric utilities. Agri- (page ic9), and on the other hand, includes the
culture is represented by a combination of pro- aggregated errors in allocation of the respective
duction and household items. The household products among the 43 reported accounts. It is
expenditures and receipts are consolidated in quite likely that a certain portion of the undis-
the Total Services row and the Consumption tributed product may actually have been
column. Foreign commodity trade is entered absorbed by industries which, according to the
in the Export column and the Import row. present distribution, are not credited with any
A svstematic examination of the table can be takings of yarn and cloth products. The under-
undertakein from three different angles. If dis- estimation of some of the distributed amounts
tribution of products of different industries is represents another source of the undistributed
to be selected as the starting point, the analysis surplus.
must proceed row by row; on the other hand, if The 9,I02 millions of its own product absorbed
the cost aspect be put in the foreground, the by agriculture include both feed and other inter-
table should be studied column by column. mediate products as well as those consumption
Finally, the question of industrial balance will goods which were, according to available statis-

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
I12 THE REVIEW OF ECONOMIC STATISTICS
tical information, retained on the farm. There charged -in the distribution row of railway
is little doubt, however, that a considerable services-to exports. This item must not be
amount of agricultural products consumed by confused with that part of transportation serv-
the farmer is obtained through the medium of ices which is charged directly to the cost accounts
the usual distributary channels. This means of the particular industries and thereby increases
that some part of the 2,209 millions of agri- the "at factory" value of American export
cultural products assigned in our table to Con- goods.
sumption was, in fact, used on the farm. It will be seen that 4,i6I million dollars of
The distribution of transportation (steam the railroad "product" are allocated to definite
railroad) services raises a new problem: Into accounts. The undistributed I,464 millions con-
whose cost schedule should the transportation tain less than I,ooo millions of transportation
costs of commodities moved by rail be included? costs still unaccounted for; the rest represents
Even if it were practically possible to distinguish the so-called non-operating revenues.
between the cases in which the producer sells at In allocating imports, we meet in part the
factory, and those in which he delivers his goods same difficulty which was discussed in con-
free at the purchaser's door, such a twofold nection with the distribution of transportation
system of entry would hardly be advisable. One services. One portion of the wares obtained from
of the principal aims of the present statistical abroad consists of goods which, like rubber, silk,
analysis is to reveal the typical productive and or diamonds, cannot possibly come from domes-
distributive interrelations which determine the tic sources. The data revealing the consumption
structure of the national economy. This requires of these particular kinds of commodities by dif-
such a classification and grouping of the different ferent industries indicate at the same time the
elements of the system as will reveal the most distribution of the imports of these goods. This
stable aspect of these interrelations. Differen- simple solution cannot be applied, however, to
tiation between "f.o.b." and "c.i.f." trans- imports which are directly competing with
actions, as well as any other classification by domestic products of the same kind. In this
mode of payment, scarcely meets this criterion. case, the consumption data still leave open the
Thus a systematic presentation of all trans- question as to what part of the total amount
actions on a uniform (f.o.b. or c.i.f.) basis appears absorbed by any single industry was of foreign
to be theoretically preferable. In Table 5, the origin. In this, as in the instance of freight costs,
transportation costs of each class of goods are proportional distribution has been used through-
charged to the industry which produces them, out as the only practicable solution of the
i.e., the value of every product includes the sum problem. The ratio between total domestic
total of revenue obtained by the railroads for production and foreign imports of each par-
transportation of this particular kind of com- ticular kind of goods was applied as a fixed
modity. In distributing the products of an distribution key to all the different categories of
industry, however, the available statistical infor- users of this commodity. Import duties are
mation does not enable us to identify the value included in the value of commodities obtained
(quantity times price including transportation from abroad.
costs) of the finished commodity according to
location of the buyers. The freight costs allo- III
cated to the product of an industry are, there- The service row (43) is, for the sake of con-
fore, spread in our table in an equal ratio over venience, subdivided into two parts. Distri-
all units, which would be correct only under the bution of Labor Services (row 43a) is rather
obviously unrealistic assumption that the actual simple: each industry is debited with the total
freight charges constitute a fixed proportion of amount of wages and salaries disbursed. As the
the total price paid by each and every buyer. figures in this row include only payments to hired
Application of our method to imports makes labor, agriculture is credited only with the money
it necessary to augment the import values of wages of hired farm workers.
foreign commodities by a proportional amount The definition and evaluation of Capital and
of domestic transportation costs. An equivalent Entrepreneurial Services (row 43b) raise an
of the sum total of these transportation costs is extremely difficult theoretical and statistical

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
QUANTITATIVE INPUT AND OUTPUT RELATIONS II3
problem. Capital services are clearly discernible changed, it would make no difference so long
only in so far as an enterprise is working with as it were offset by corresponding write-up (or
borrowed funds and makes contractual interest reduction) of the loan value (if profits were
payments. But even in this case, ever-changing distributed and then immediately borrowed).
economic conditions regularly produce a situa- From a certain point of view, therefore, it may
tion in which the contractual rate differs con- be said that the surplus values entered in the
siderably from the current one. The remu- table are fictitious. Their meaning is entirely
neration of that part of the capital investment dependent upon the interpretation of the actual
which belongs to the owners of the enterprise valuation and accounting practices of the
is hardly distinguishable from entrepreneurial industry.'
returns, monopolistic revenue, windfall profits According to our definition, therefore, the
resulting from appreciation of commodity stocks value of capital services will be nil, if no interest
on hand, etc. So far as monopolistic and specu- or dividend payment is forthcoming during the
lative profits are concerned, it is highly doubtful period under consideration and no additional
whether they could and should be considered surplus has been accumulated during that time.
as remuneration for some specific kind of service. Every payment on interest and dividend account
The theoretical difficulty and practical impos- is debited as a capital service, even if accom-
sibility of distinguishing these different kinds panied by a deficit.
of remuneration made it necessary to lump all The fundamental set-up of our table necessi-
of them into one single group, loosely defined as tates a radical departure from the conventional
"Capital and Entrepreneurial Services." It cor- accounting practices so far as the treatment of
responds rather closely to the bookkeeping con- deficits is concerned. The existence of a deficit
cept of net revenue (minus taxes) augmented either (a) indicates the fact that the given enter-
by the sum total of all interest payments on prise purchased more goods and services (includ-
borrowed capital, and it includes the following ing dividend and interest payments) than it
three elements of a typical corporate revenue sold, or (b) shows that it failed to maintain its
and expenditure account: (a) interest paid, (b) fixed investment, inventories, etc.
dividends paid, and (c) undistributed profits. In the first case, the enterprise must have
According to this set-up, the undistributed spent some of its previously accumulated cash
surplus plays, so to speak, a double r6le in the balances or, if this proves to be impossible or
cost account of an enterprise. On the one hand, impracticable, the "loss" is "financed" out of
it represents the value of materials, additional "additional" investment. In either situation,
pay rolls, and other cost elements on which it we have a surplus of expenditures over sales
usually is spent in the process of new invest- which influences the "balance of trade" of this
ment; on the other hand, it measures (in addition enterprise in exactly the same way as a new
to the two other items mentioned above) the additional investment.
productive services of capital and entrepreneur- In the second case, the deficit is confined to
ship. This twofold function would be- more so-called book losses. It is indeed accompanied
apparent if each enterprise were to pay out the by revaluation of some assets but does not affect
total of its net revenue to the stockholders and in any direct way the equilibrium of external
other owners and subsequently would obtain payments and receipts. The "balance of pay-
from them, in form of a loan or in exchange for ments" as well as the "balance of trade" of an
a new stock issue, an equal sum of money to be enterprise remains entirely unaffected by internal
spent on new investment. The formal difference revaluations of this kind.
between this and the usual method of retaining 1 Without embarking upon a fundamental discussion of the
undistributed surplus lies only in the fact that evaluation problem, it is important to indicate that the
the former operation involves two additional explanation of actual economic forces should be clearly
distinguished from any attempt to improve existing financial
monetary transactions; the immediate material practices. Thus it would be as inadmissible to contest the
consequences are in both cases identical. The validity of corporate surplus data on the ground of inade-
identity of the material consequences in this quacy of existing accounting systems as it would be wrong,
for example, to dismiss our wage statistics with the remark
case holds even to the extent that, should the that the existing wage rate cannot provide an adequate
valuation of services obtained be arbitrarily standard of living for the working class.

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
II4 TEIE REVIEW OF ECONOMIC STATISTICS
This leads to the conclusion that, unless they capital assets are explicitly not taken into
are financed by reduction of cash holdings or account.
additional investment, deficits in our set-up These considerations lead to a corresponding
should be disregarded; negative surpluses (defi- interpretation of the Total Expenditures row
cits) can be left entirely out of the picture (see (see page TI5).
below, page I25). The theoretical and statistical difficulties in
Official financial statistics for obvious reasons dealing with agricultural labor and capital serv-
do not follow this line of reasoning. The revenue ices are essentially the same as in the case of the
data computed for any industrial group on the corresponding industrial cost schedules. In addi-
basis of usual accounting practices show only tion, these difficulties are enhanced by the
the net difference between the aggregate positive impossibility of falling back on objective account-
net revenue of all enterprises showing net income ing figures. Any attempt to split the gross
and the net losses sustained by the remaining expenditures of agricultural accounting units
part of the industry. The income statistics into the standard components of wages, entre-
published by the Bureau of Internal Revenue, preneurial and capital income, and other pro-
however, give separately figures for incomes of duction costs is bound to lead back to arbitrary
"Corporations Reporting Net Income" as well principles of imputation.
as for the aggregate deficits of "Corporations The most radical method of solving the prob-
Reporting No Net Income." The former figure lem would be that of including the farm pur-
chases of consumers' goods among all the other
can be used in the calculation of the services of
capital as defined for our special purpose. outlays and placing in the service row onily the
In using official net income data, we still amounts of wages, interest, etc. actually paid
introduce a systematic underestimation of the out. This type of reasoning has been applied in
entrepreneurial and capital services. The sum the general table to the distribution of that part
total of dividend payments and other capital of agricultural production which was consumed
services actually exceeds by a certain amount directly on the farm (see page II6). Obvious
the aggregate net income of industry because statistical difficulties make the consistent use
a number of business concerns pay dividends in of this procedure impracticable. Furthermore,
excess of actual earnings. The exact extent of there exists a good theoretical reason for keep-
these overpayments for the year I9I9 cannot be so far as possible, the distribution of market-
ing,
able consumption goods separate from that of
ascertained readily; for the manufacturing and
mining industries alone, they appear not to have kinds of commodities.
other
exceeded ioo million dollars.' A simple non-controversial solution of our
The situation of an industry which is suffering difficulty is to relegate all agricultural outlays
other than those which are already allocated
losses is, in certain respects, identical with that
which arises in the case of additional investment among other industries to the Undistributed
(which might be financed by undistributed row. This device is essentially that used in
our table. The residual amount (with the excep-
profits, security sales, or out of already available
cash resources). From the point of view of the tion of taxes) is shifted, however, from the
present analysis, it is of no import that in one undistributed to the service row. This allocation
case the surplus of expenses over receipts is is justified by the fact that most of these mone-
accompanied by a decrease in the value of "cap- tary expenditures are analogous in their eco-
ital assets," while in the other this value is nomic nature to the industrial incomes entered
increasing. The whole approach is based on in the adjacent boxes of the service row. Strictly
registration of the current stream of goods speaking,
and the value of agricultural service-
services; the appreciation and depreciation of expenses obtained in this indirect way represents
an overestimate. They include a certain amount
1 The aggregate net income (minus income tax) of "Manu-
of trade services absorbed in connection with
facturing and Mining Corporations Reporting Net Income"
in I919 amounted to 4,217 million dollars, according to Statis- the purchase of agricultural cost-goods; if the
tics of Income (Bureau of Internal Revenue), while total exact figure for this item were known, it would
dividend payments and corporate savings as estimated by
go in the Undistributed row. On the other hand,
W. I. King (National Income and Its Purchasing Power, New
York, I930) amounted to 4,276 million dollars. in using this figure, one has to keep in mind that,

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
as indicated above, one part (approximately entrepreneurial services. The total outlays of an
I,900 or 2,000 million dollars) of the sum total enterprise can be defined accordingly as value
of the commodities charged from Agriculture to
of sales (product) plus additional capital invest-
Agriculture consists of consumption goods. ment and borrowing plus increment of positive
The 5,382 millions of capital and entrepre- surplus minus net changes in the cash balance
neurial services charged to consumption include (which might be positive as well as negative).
rental payments for hired houses and apart- The available statistical information does not
ments, as well as the contribution of these give any clue for an evaluation of the last item.
factors to the so-called service industries, liberal
There is good reason to believe, however, that
professions, etc. the financing of new investment through dis-
bursement of previously accumulated cash bal-
IV ances was in I919 a relatively minor item. Much
Each vertical column of Table 5 shows the more serious is the omission of short-term bank
structure of expenditures of the corresponding credits obtained by the various industries
industrial (or household) accounts. It gives a between the beginning and the end of the year
list of commodities and services which were I9I9. A very rough estimate shows that approx-
absorbed by each particular branch of economicimately one billion dollars was added in this
activity during the period under consideration. way to total industrial expenditures.' The
In an entirely static system, this distribution absolute lack of any statistical evidence con-
could be defined as the cost structure. Undercerning distribution of the sum total among the
the actual dynamic conditions prevailing, how-
separate industries precludes any attempt to use
ever, a large part of the total outlay represents this estimate in our study.
not only current production costs but also addi- The total outlay items at the bottom of
tional investment. No attempt is made in the columns I to 45 represent the total values of
present investigation to split the expenditures
product, including imputed transportation costs
of an enterprise into two parts corresponding to(see page II2), augmented by additional positive
these two types of outlay. surpluses and long-term capital investments, of
The primary statistical data do not contain the respective individual industries.
direct information concerning the total expend- The undistributed-outlays figure (row 44c) is a
itures of the different industries similar to thatbalancing item which fills the gap between the
which the census data on the total "value of total outlay for each industry and the sum total
product" give for total receipts. The magnitude of the individual outgo items distributed among
of the total outlays can be determined, however, the other rows. Taxes are segregated in a special
in an indirect way, through augmenting the total subdivision of the Undistributed account in order
value of product by the value of additional new to show to what extent the expenditure accounts
capital investment and the reduction of cash of industries and households were linked to the
holdings. The difficulties involved in the capitalrevenue accounts of the government. The total
accounting problem in so far as they reflect the of expenditures for consumption (column 43) is
difficulty of distinguishing current costs fromtaken from the most recent and careful estimate
new capital expenditures do not impair the made by Arthur R. Gainsborough.2
validity of the sum totals thus obtained - so The elementary structural characteristics of
long as we are interested in aggregate expendi-the economic system represented in Table 5 can
tures and not in their two separate parts (current be seen more clearly in Table 6 (insert), where all
and additional expenditures as defined above).
1 According to the Report of the Comptroller of the Currency
The evaluation practices in current use affect,
for the year I920 (Vol. i, page 3I), 23 per cent of the total
however, the magnitude of the total outlay in so loans and discounts made by national banks during this year
far as they determine that part of the value of -were absorbed by industrial enterprises, including railroads
capital and entrepreneurial services which is and public utilities. Applying this percentage to the average
annual increase in total loans and discounts by all reporting
reflected in the surplus accounts,. banks between June, I9I8, and June, I920, we find that the
The general principle for treatment of cor- proportional share of industry for the year I9I9 would be
approximately one billion dollars.
porate surpluses as service items has been laid
2As given in W. H. Lough, High Level Consumption (New
down in the preceding discussion of capital andYork, I935).

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
II6 THE REVIEW OF ECONOMIC STATISTICS
entries are expressed as percentages of the net taken with the definite aim of supplying an
sum totals of the corresponding rows and col- empirical background for the study of the inter-
umns. Each box contains two figures. The dependence between the different parts of our
figure that is not in parentheses shows the national
value economy on the basis of the theory of
of the particular item in its relation to the general
total economic equilibrium. These results are
net output of the industry or service group from incomplete; in many respects they are open to
which it originates; the other, in parentheses, criticism; and certainly, subsequent revisions will
gives the magnitude of the same item in relationmodify many important details of the picture.
to the total net outlay of the industrial or house-Work on a similar Tableau Economique for the
hold account by which it was absorbed. year I929 is already under way. But even the
It is interesting to note that the undistributedavailable material, however imperfect it may be,
items in the agricultural and industrial rows and seems to justify a laboratory test of the per-
columns (numbered i to 4I) are relatively much tinent theoretical formulations. Such an attempt
smaller than in the service row and in the con- will be presented in a later article.
sumption column. The explanation seems to lie The statistical data collected in our main
in the fact that a large part of total household table fill in the "empty boxes" of the theory of
expenditures are directed toward undistributed general equilibrium. Hypothetical production
non-material production branches, which in theirand consumption equations gain explicit mean-
turn absorb a great amount of services but a ing as soon as the symbolic algebraic signs are
relatively small quantity of material costs. replaced by observed numerical values. Once an
empirical foundation is thus established, the
V vague generalities of abstract theoretical state-
The statistical research - the results of which ments will acquire concrete empirical signifi-
are presented in this paper - has been under- cance.
STATISTICAL SOURCES AND METHODS OF CALCULATION
The fundamental theoretical framework of our analysis, Censusasof Manufactures and the Census of Mines and Quar-
well as the main outlines of its statistical application, is ries,
devel-both for the year I919 unless stated as being for some
oped in the first part of this article. The following pages other
con- year. The abbreviation "n. e. s." stands for "Not
tain a systematic explanation of the final numerical results Elsewhere Specified." For brevity, the term Transportation
which are embodied in the general table (Table 5). (Steam Railroads) is written Transportation (Railroads).
Lack of space precludes the possibility of a complete repro- f. All original calculations are made in thousands of dollars.
duction of all the preliminary calculations. No attempt The rounding
is off is carried out in such a way as to avoid
any discrepancy between the sum totals and their respective
made here to acquaint the reader with the details of individual
parts.
computations or to present the series of alternative estimates
which in many instances were used for checking purposes. g. The following comments are arranged by distribution
rows and within each row according to the order of the items,
Preliminary Comments reading from left to right, in the general table. The italicized
a. The values of the total output of all the separate main
indus- headings refer to the rows of the table, while reference
to the
tries from "Flour and grist mills" (row 2) to "Industries notitems within each row is introduced by the word "To."
elsewhere specified" (row 39), with the exception of "Electric
I. Agriculture
utilities" (row 25), are based on the Census of Manufactures
and the Census of Mines and Quarries, both for the yearAgriculture
I9I9. is basically defined as farming, and, in accord-
b. Whenever total production or total consumption ance with the Census, includes the entire field of crop produc-
data
tion, or
are used as a basis of distribution, adjustments for exports fruits and vegetables, livestock and livestock products,
imports are carried through. These adjustments are not and forest products produced on farms. The value of the
com-
mented upon separately in each particular instance. total output at farm is taken from the Census of Agriculture,
and increased by the amounts of transportation costs of agri-
c. References to "production" indicate that the particular
items are based on production statistics; references to cultural
"cost" products. (See row 41 of the general table and the
or "consumption data" show that cost statistics of thediscussion
indus- on page II2 above.)
try which uses the particular product have been utilized. To Agriculture: determined on the basis of the average per-
d. Whenever the output of an industry is distributed oncentage
the of products sold from the farm in the years I924-28
basis of production values, transportation costs (if any)(Farm
areValue, Gross Income and Cash Income from Farm Prod-
added separately on the basis of a fixed proportion ucts I924-1929, Part V [Bureau of Agricultural Economics
of the
total value of the output. In all of the cases where the United
dis- States Department of Agriculture, Washington, Oct.
I930]).
tribution is based on cost data of the industries which use the To Flour and Grist Mills: quantity milled (Mfr., at
particular product, no such adjustment is necessary. farm prices). To Canning and Preserving: estimated on basis
e. Abbreviations: Mfr. and Min. indicate, respectively,of Mfr.,
the I929. To Bread and Bakery Products: milk, eggs,

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
QUANTITATIVE INPUT AND OUTPUT RELATIONS II7
nuts, and fruits (estimated). To Sugar, Glucose and Starch: sausage, lard, lard compounds and other substitutes, meat
production and cost data, Census of Agriculture and Mfr. products not elsewhere specified.
To Liquors and Beverages: data taken from Senate Hearings To Agriculture: all fertilizers. To Bread and Bakery Prod-
(S. 436 and S. 2473, 72d Congress, ist session). To Tobacco ucts: lard and lard substitutes (estimated on basis of biennial
Manufactures: U. S. production. To Slaughter and Meat Censuses of Mfr., 1923-29). To Slaughter and Meat Packing:
Packing: data from Census of Agriculture, Mfr., and Depart- meat, sausage casings, etc., reported as products and materials
ment of Agriculture. (Mfr.). To Butter, Cheese, etc.: oleo oils and stock. To Yarn
To Butter, Cheese, etc.: data from Mfr. To Other Food and Cloth: wool. To Chemicals: stearin, soap stock, other
Products: dairy products, fruits, and nuts (estimated on the oils and greases, and fertilizer materials (last item estimated
basis of Mfr., I923-29). To Chemicals: cottonseed, flaxseed, roughly at 45 millions). To Leather: hides and skins, oils and
etc. (production [Census of Agriculture], sold at farm [See greases (last item estimated roughly at io millions). To Con-
Agriculture to Agriculture, above]). To Paper and Wood sumption: meats, oleomargarine, lard, and lard substitutes
Pulp: straw (costs, M1fr.). To Yarn and Cloth: quantities (consumption of lard is estimated on basis of family budget
consumed (Mfr.) at farm prices. To Leather, Tanning: esti- studies). To Undistributed: residual amount.
mated; difference between total consumption of hides and 9. Butter, Cheese, etc.
skins and supply from meat packing and imports. To Con-
Includes butter, butter reworking, cheese, condensed milk,
sumption: edible products not distributed to other industries
oleomargarine.
plus part of nursery and greenhouse products. To Undis-
To Bread and Bakery Products: butter and condensed and
tributed: includes increase in cotton, wheat, and corn stocks,
evaporated milk (estimated on basis of biennial Censuses of
undistributed part of forest products.
Mfr., I923-29). To Other Food Products: condensed and
2. Flour and Grist Mill Products powdered milk (estimated; one-half the cost of milk and milk
Includes flour and grist mill products (including output of products to confectionery and ice cream). To Consumption:
custom mills), rice cleaning and polishing, prepared feeds for remaining cream, cheese, butter and substitutes, condensed
animals. and evaporated milk, and buttermilk. To Undistributed:
To Agriculture: animal feeds (Mfr.). To Bread and Bakery casein and other products.
Products: flour consumption (estimated on basis of biennial io. Other Food Products
Censuses of Mfr., I923-29). To Consumption: residual of all Includes baking powder and yeast, chocolate and cocoa
edible products. To Undistributed: residual inedible products. products, coffee and spices (roasting and grinding), confection-
ery and ice cream, cordials and flavoring sirups, flavoring
3. Canning and Preserving
extracts, food preparations not elsewhere specified (peanut
Includes canning and preserving fish, fruits and vegetables, butter, all other preparations for human consumption), pea-
oysters, and pickles, preserves and sauces.
nut roasting and grading, vinegar and cider.
To Consumption: total output of all specified products To Bread and Bakery Products: baking powder and yeast,
(3 fr.). To Undistributed: "all other products." chocolate and malt extract (estimated on basis of biennial
4. Bread and Bakery Products Censuses of Mfr., 1923-29). To Other Food Products: choco-
late, cocoa and other materials (cost of materials; Mfr. and
Includes bread and bakery products, breadstuff prepara-
tions, and macaroni, vermicelli, etc. estimates). To .Consumption: remaining products assignable
to consumption. To Undistributed: undistributed chocolate,
To Consumption: total value of products.
cocoa, peanut grading, etc.
5. Sugar, Glucose and Starch iI. Iron Mining
Includes sugar (cane, beet), sugar refining, glucose and starch, Includes mining of iron ore.
and sweetening sirups.
To Blast Furnaces: blast furnace consumption, cost data,
To Agriculture: stock feed. To Canning and Preserving: (Mfr.). To Undistributed: remainder of products.
estimated on basis of Mfr., I929. To Bread and Bakery Prod-
I2. Blast Furnaces
ucts: estimated on basis of biennial Censuses of Mfr., I923-29.
To Sugar: raw sugar and cornstarch (AMfr.). To Liquors and Includes blast furnaces and ferroalloys.
Beverages: quantity of sugar used (Senate Hearings, S. 436 To Steel Works and Rolling Mills: consumption of domesti-
and S. 2473, 72d Congress, ist session). To Butter, Cheese, cally produced pig iron, ferroalloys, and blast furnace gases,
etc.: cost of materials (Mfr.). To Other Food Products: report computed on basis of Mfr. To Automobile Industry: esti-
of cost of materials (Mfr.). To Yarn and Cloth: consumptionmated. To Other Iron and Steel Industries: consumption by
of starch in cotton manufacture (Mfr.). Consumption in otherfoundries, etc., less amount taken by the automobile industry,
parts of yarn and cloth industry could not be determined. Tocomputed on basis of Mfr. To Construction: slag (sold). To
Consumption: residual of edible products. To Undistributed:Undistributed: residual.
beet pulp, oil cake, and "other products." 13. Steel Works and Rolling Mills
6. Liquors and Beverages Includes steel works and rolling mills.
To Agriculture: staples, barbed and woven wire, horseshoes
Includes liquors (distilled, malt and vinous), malt, and
(calculated on basis of Mfr.). To Iron Mining: This, as well
mineral and soda waters.
as a number of subsequent items, is calculated on the basis
To Liquors and Beverages: malt (estimate; total output of
of the statistics of distribution of rolled steel products com-
malt industry is 39 millions). To Consumption: remainder of
piled by the Iron Age for I922 and later years. These distri-
products.
butions show certain relatively constant proportions, on the
7. Tobacco Manufactures basis of which a corresponding table for I919 has been con-
structed. In the Iron Age distribution, all mining industries
Includes tobacco (chewing, smoking, and snuff), cigars, and
cigarettes. are treated as a single industry. The final distribution to
To Consumption: total production. individual mining industries is made on the basis of the total
cost of materials as given in the Census. To Blast Furnaces:
8. Slaughter and Meat Packing mill cinder, scale, slag, etc. (cost data, Mfr.). To Steel Works
Includes slaughtering and meat packing, poultry killing, and Rolling Mills: cost of materials (Mfr.). To Automobiles;

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
THE REVIEW OF ECONOMIC STATISTICS
estimates based on the Iron Age distributionof(see miningSteel Works to the horsepower used. To Steel
in proportion
and Rolling Mills to Iron Mining). To Other Iron and Steel: Works and Rolling Mills: 30 per cent of metal working machin-
This item is the result of a detailed analysis of census data. ery (estimated on basis of Mfr., I925-29). To Automobiles:
It is the difference between the total outputs of products of electrical equipment, engines, vehicle hardware, machine
the types and qualities used by "Other Iron and Steel" and tools, stamped ware, etc. (machine tools purchased estimated
the amount of these materials distributed to other industries.on basis of statement in Iron Trade Review, Jan. 5, I920, p. 56.
To Non-Ferrous Metal Mining: estimated (see Steel Works Stamped ware estimated on basis of Mfr., I929. All other
and Rolling Mills to Iron Mining). To Petroleum and Natural items, Mfr.). To Other Iron and Steel: forgings, engines for
Gas: estimated (see Steel Works and Rolling Mills to Iron and shipbuilding, tin and terne plate and other products used in
Steel). To Coal: estimated (see Steel Works and Rolling Mills the same industry for further manufacture (Mfr.). To Non-
to Iron Mining). To Rubber: estimate of wire used in tire Ferrous Metal Mining: ore crushers and mining machinery
production. To Construction: estimated on basis of Mfr. To (for explanation of the latter item, see Other Iron and Steel
Transportation (Railroads): railway track materials and cars. to Iron Mining).
To Undistributed: residual item consisting partly of rolled To Non-Metal Minerals: clay and glass working machinery
products and partly of advanced products such as nails, bolts, (Mfr.). To Petroleum and Natural Gas: oil well mnachinery
wire manufactures, etc., made in rolling mills. and wrought pipe. To Refined Petroleum: metal containers
and wrought pipe (estimated on basis of Mfr. and Iron Age
14. Other Iron and Steel Industries
distribution; see Steel Works and Rolling Mills to Iron Min-
Includes aeroplanes, agricultural implements, ammunition,
ing). To Coal: machinery (estimate; see Other Iron and Steel
carriage and wagon materials, carriages and sleds, children's
to Iron Mining). To Chemicals: oil mill machinery (llVfr.).
carriages and wagons and repairs, cars and general shop con-
To Electric Utilities: machinery and apparatus (telephone and
struction including railway repair shops, cash registers and
telegraph apparatus and supplies and line materials). To
calculating machines, copper, tin and sheet iron work, cutlery
Lumber and Timber: estimated on basis of Mfr. To Paper
and edge tools, cream separators, electrical machinery, engines
and Wood Pulp: paper and pulp machinery (Mfr.). To Print-
(steam, gas and water), files, firearms, foundry and machine
ing and Publishing: machinery (Mfr.). To Yarn and Cloth:
shop products, furniture (metal), galvanizing and other coat-
textile machinery (Mfr.). To Other Textile Products: indus-
ing processes, gas and electric fixtures, gas machines and gas
trial sewing machines. To Leather: machinery (Mfr.). To
and water meters, hardware, hardware (saddlery), horseshoes,
Shoes: machinery (Mfr.). To Other Leather Products: hard-
iron and steel bolts and nuts, cast pipe, doors and shutters,
ware (Mfr.). To Rubber: machinery (Mfr.). To Construction:
forgings, nails and spikes, tempering and wvelding, wrought
electric machinery and fixtures, etc., electric wire (estimated
pipe, locomotives, machine tools, motorcycles, bicycles and
on basis of data of American Bureau of Metal Statistics on
parts, needles, pins, hooks and eyes, ordnance, steel pens,
copper consumption), gas and water meters, etc., building
plumbers' supplies, n. e. s., pumps (not power), pumps
hardware, cast pipe, iron and steel doors and shutters, nails
(power), safes and vaults, saws, scales and balances, screws
and spikes (estimated), wrought pipe (estimated), plumbing
(machine), screws (wood), sewing machines and attachments,
supplies, hot air furnaces, stamped and enameled ware (tubs
shipbuilding (steel), soda water apparatus, springs (steel),
and sinks), dredging, excavating, and road making machinery,
stamped and enameled ware, steam fittings, etc., steel barrels
concrete mixers, safes and vaults, steam fittings, structural
and drums, stoves and hot air furnaces, stoves (gas and oil),
iron work, vault lights and ventilators. Unless otherwise
structural ironwork, textile machinery and parts, tin and terne
stated, all data are obtained from Mfr. To Transportation
plate, tinware, n. e. s., tools, n. e. s., typewriters and parts,
(Railroads): products of railway repair shops (Mfr.), locomo-
vault lights and ventilators, windmills, window and door
tives, cars and machinery purchased (Statistics of Railways,
screens, wire, wirework, n. e. s.
I9I9). To Consumption: electric wire, machinery and appli-
The highly intricate structure of this important industrial
ances, stoves and ranges, cutlery and edge tools, hardware,
group defies any attempt to introduce a finer distinction among
enameled ware, sewing machines, etc. (Mfr.). To Undistrib-
its separate component parts. Even on the basis of the census
uted: This item contains among other products the total
classification accepted above, it overlaps in many instances
output of the steel shipbuilding industry, which in i9gi
the adjoining industries, particularly "Steel Works and Roll-
amounted to I,456 million dollars.
ing Mills," "Non-Ferrous Metal Smelting and Refining," and
"Brass, Bronze, and Copper Products." Such commodities as I5. A utomobiles
copper wire, for example, are produced in rolling mills and Includes automobile bodies and parts, automobiles, and
copper works as well as in special wire works. The distribu- automobile repairing.
tion of these goods among the different consumers is made in To Automobile Industry: products of bodies and parts
this, as in all other similar cases, on a strictly proportional
industry (Mfr.) and 50 per cent (estimated) of the "other
basis. For each particular kind of use, each source of supply products" of the automobile industry (Mfr.). To Consump-
is drawn upon in proportion to its total output.
tion: passenger cars, product of repair shops, and 50 per cent
To Agriculture: agricultural machinery, carriages, traction of " other products " of automobile industry (Mfr.). To Undis-
engines, and other products used by agriculture (production tributed: trucks and other special types of motor vehicles
data, Mfr.). To Flour and Grist Mills: machinery (production
(Mfr.).
data, Mfr.). To Cannings and Preserving: tin cans (estimated,
on basis of Census of Mfr., I929. Comparing this amount i6. Non-Ferrous Metal Mining
with the total number of containers used by the canning indus-Includes mining of copper, lead and zinc, gold and silver,
try in I929 - 3,036 million cans - we obtain an average and metals, n. e. s.
price of 2.96 cents per can, which might be somewhat high.) To Non-Ferrous Metal Mining: purchased ore, etc. (Min.).
To Bread and Bakery Products: machinery (production data, To Smelting and Refining: production of copper, lead, and
Mfr.). To Sugar, Glucose, and Starch: sugar machinery zinc ore (Min.). To Undistributed: principally products of
(production data, Mfr.). To Liquors and Beverages: bottling gold and silver mining.
machinery (production data, Mfr.). To Butter, Cheese, etc.:
dairy machinery and tin cans (Mfr.). To Other Food Products: I7. Non-Ferrous Metals: Smelting and Refining
confectioners' machinery (Mfr.). To Iron Mining: estimate; Includes smelting and refining of copper, lead, and zinc,
metals n. e. s., and smelting not from ore.
mining machinerv is distributed among the different branches

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
To Steel Works and Rolling Mills: consumption by steel line other than that going to refined petroleuin. To Undis-
works and rolling mills of copper (Mfr.), zinc (quantity as given
tributed: contains 22 million dollars of petroleum.
by the American Bureau of Metal Statistics, I919); valued at
2I. Refined Petroleum
point of production. To Automobiles: lead and zinc (American
Includes lubricating greases and refined petroleum. The
Bureau of Metal Statistics). To Other Iron and Steel: lead
distribution of refined petroleum constitutes a part of the gen-
and zinc (American Bureau of Metal Statistics). To Smelting
eral industrial fuel and power distribution, for the detailed
and Refining: rough estimate on basis of MIfr. To Brass,
description of which see the distribution of products of the coal
Bronze, etc.: estimated on basis of metal content of products
of the industry. To Printing and Publishing: zinc (American industry. The following explanation covers only the distribu-
tion of petroleum products not included in the general fuel and
Bureau of Metal Statistics). To Chemicals: lead and zinc,
power distribution.
including pigments from ore. To Paint Industry: estimated on
To Agriculture: axle grease (Mfr.). To Refined Petroleum:
the basis of American Bureau of Metal Statistics and M1ineral
contains I 52 million dollars of distillates purchased and rerun.
Industry. To Construction: lead (American Bureau of Metal
To Electric Utilities: fuel oil (Statistical Abstract of United
Statistics). To Consumption: lead and zinc (American Bureau
States). To Construction: road oils (Mfr.). To Transportation
of Metal Statistics). To Undistributed: includes addition to
(Railroads): fuel oil and lubricants (Statistics of Railways,
copper stocks valued at 59 million dollars.
I9I9). To Undistributed: includes fuel oil to shipping and
I8. Brass, Bronze and Copper Products, etc. additions to stocks.
Includes aluminum manufacture, Babbit metal and solder, 22. Coal
bells, brass, bronze, and copper products, gold and silver leaf
Includes coal, anthracite and bituminous. The total value
and foil, gold and silver not from ore, lead (pipe, bar and sheet),
of coal distributed (including transportation costs) exceeds by
silver smithing and silverware, tin and other foils, plated ware.
3.3. per cent (70 million dollars) the actual output of the coal
To Tobacco Manufactures: tin and other foils (rough esti-
mines in the year I9I9. Due to a prolonged strike, a consider-
mate on basis of production of tin and other foils). To Other
able part of the current consumption was drawn from stocks.
Food Industries: rough estimate on basis of production of
According to the fundamental set-up of our general table, all
tin and other foils. To Automobiles: brass, bronze and copper,
stock accounts belolng in the consolidated "Undistributed"
and aluminum (calculated on basis of American Bureau of
account. For want of better knowledge, it is assumed that the
Metal Statistics and Automobile Facts and Figures). To Other
distribution from stock is proportional to the distribution from
Iron and Steel Industries: calculated on basis of American
mines. Accordingly, the distribution of the product of the coal
Bureau of Metal Statistics and Mfr. To Electric Utilities:
industry as described below is subsequently stepped down by
copper wire and cable. To Consumption: hardware,, lamps,
3.3. per cent all along the line.
etc. (production data, Mfr.). To Undistributed: residual
The main part of the coal distribution is derived from the
(includes gold and silver not from ore). To Construction:
general fuel and power distribution which is outlined below.
copper wire.
I9. Non-Metal Minerals General Fuel and Power Distribution for

Manutfacture and Mining
Includes mining of stone, clay, gypsum, phosphate rock,
sulphur, and miscellaneous mineral mining, artificial stone, The physical quantities of coal (bituminous and anthracite),
asbestos (building material and other asbestos products), coke, fuel oil, gasoline, and gas used for fuel by the different
brick, tiler etc., cement, crucibles, emery and other abrasive industries, as reported in Mfr. and Min., were multiplied by the
wheels, glass, graphite (ground and refined), grindstones, average unit price of the respective products as given at the
hones and whetstones, marble and stone work, millstones, point of production. The values thus obtained are increased in
the case of coal, coke, and oil through addition of average rail
minerals and earths (ground and prepared), paving materials,
pottery, sand, lime, brick, wall plaster and composition transportation costs (see page II2 above). For obvious reasons,
flooring. no transportation costs have been added to the value of coal
To Agriculture: limestone, lime, etc. (Min.). To Canning used in coal mines and bituminous coal used by cokeries. Fuel
and Preserving: glass containers (estimated on basis of Mfr.).oil and gasoline absorbed by the oil refining industry and coke
To Sugar: lime and limestone (Mineral Resources of the U. S.).used in cokeries are also valued at average producers' prices
To Liquors and Beverages: glass containers (estimated on without addition of transportation costs.
basis of Mifr.). To Blast Furnaces: limestone flux (Mineral The subtraction of these hypothetical fuel costs from the
Resources of the U. S.). To Steel Works and Rolling Mills: total fuel and power costs as given in the Census yields a
fluor spar (Mineral Resources of the U. S.). To Automobiles: residual for purchased power which is taken to consist entirely
plate glass (estimated consumption on basis of Mfr., I923). of purchased electric power.
To Other Iron and Steel: glass and brick. To Smelting and The use of average prices and transportation charges neces-
Refining: brick, tile, etc. sarily impairs the reliability of these preliminary estimates.
Particular bias is to be expected with respect to those indus-
20. Petroleum and Natural Gas
tries in which the fuel costs constitute a large proportion of
Includes petroleum and natural gas industry. The distribu- total expenses or in which the quantity of fuel used is deter-
tion of natural gas constitutes a part of the general industrial mined by special technical requirements. On the basis of these
fuel and power distribution, for the detailed description of qualifications, the preliminary estimates were revised for the
which see the distribution of products of the coal industry. The following twelve industries: Iron Mining, Blast Furnaces, Steel
following explanation covers only the crude petroleum and Works and Rolling Mills, Non-Ferrous Metal Mining, Smelt-
natural gas not included in the general fuel and power dis- ing and Refining, Non-Metal Minerals, Petroleum and Natural
tribution. Gas, Refined Petroleum, Coal, Coke, Manufactured Gas, and
To Petroleum and Natural Gas: contains 29 million dollars Sugar. The revision consists in recalculation of the purchased
of natural gas purchased for resale (Mi.). To Refined Petro- power costs on the basis of an average outlay of $I7.50 per
leum: contains 657 million dollars of petroleum and 6o millions horsepower of prime movers operated on purchased power in
of natural gas for refining (Mfr.). To Manufactured Gas: con-each particular industry. For all branches of the mining indus-
tains 2 million dollars of natural gas purchased for resale. Totry, the actual cost of purchased power is given in the Census of
Consumption: includes I9 million dollars of natural-gas gaso- Mining. Subsequently the costs of other fuels were adjusted

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
correspondingly. Thus, for example, patent the price

medicines of coal
and compounds, used
perfumery andin
cosmetics,
coal mining is reduced below the salt, average, while
soaps, sulphuric, itsmixed
nitric, and unitacids,cost toand
turpentine
gas manufacturers is considerably increased. Fuel oil costs to rosin, varnishes, wood distillation.
the sugar industry are reduced because of special locational To Agriculture: fertilizers (Mfr.), cottonseed oil and cake
advantages. (Mfr.), sprays (estimate given in W. I. King, The National
The final distribution of gas requires additional calculations Income auzd Its Purchasing Power [National Bureau of Eco-
because this product is supplied from three different sources; nomic Researcht New York, 1930]). To Slaughter and Meat
one part comes from the petroleum and natural gas industry, Packing: cottonseed oil (seventy per cent of the total output as
another originates in gas manufacture, and the rest is a by- estimated by Philip G. Wright, The Tariff on Animal and
product of the coke industry. The distribution among these Vegetable Oils [New York, I928]). To Iron Mining: explosives
three sources is proportional throughout. (estimate based on Production of Explosives in the United
The following comments cover only that part of the coal States [Bureau of Mines, Technical Paper 259, May, I920]).
distribution which is not derived from the general fuel and To Blast Furnaces: charcoal from wood distillation (produc-
power distribution. tion, Mfr.). To Automobiles: estimate based on Automobile
To Electric Utilities: estimate based on quantities consumed Facts and Figures. To Non-Ferrous Metal Mining: explosives
(Statistical Abstract of the United States). To Transportation (see Chemicals to Iron Mining). To Non-Metal Minerals:
(Railroads): estimated on the basis of Statistics of Railways, explosives (see Chemicals to Iron Mining). To Petroleum
i919. To Consumption: estimate of National Coal Commission Refining: sulphuric acid, etc. (cost data, Mfr.). To Coal:
(What the Coal Commission Found). To Undistributed: con- explosives (see Chemicals to Iron Mining). To Chemicals:
tains 27 million dollars consumed by shipping (Statistical chemicals, oils, and tallow (cost data, Mfr.). To Printing and
Abstract of United States). Publishing: ink (production, Mfr.). To Yarn and Cloth: dyes
and bleaches (estimated on basis of Mfr.). To Paper and Wood
23. Coke Pulp: bleaching powder (cost data, Mfr.). To Leather, Tan-
Includes coke and manufactured fuel. The main part of the ning: tanning materials (cost and production data, Mfr.). To
coke distribution is derived from the general fuel and power Rubber: bone, carbon, and lampblack (estimated on basis of
distribution (see coal distribution). The following remarks Mineral Industry, I920). To Construction: paints (rough
cover only that part of the coke and coke gas distribution which estimate on basis of Census of Construction, I929). To Con-
is not derived from the general fuel and power distribution. sumption: patent medicines, drugs, soap, cosmetics, paint, etc.
To Electric Utilities: proportional distribution of gas on the (Soap and paint estimated on basis of Census, I929; other items
basis of Statistical Abstract of United States. To Consumption: taken from Mfr.). To Undistributed: contains chemicals,
rough estimate. To Undistributed: residual. paints, soap, etc. There is good reason to believe that a con-
siderable part of undistributed chemical products consists of
24. Manufactured Gas consumption goods.
Includes manufactured gas industry. The main part of the
manufactured gas distribution is derived from the general fuel 27. Lumber and Timber Products
and power distribution (see coal distribution). The following Includes lumber and timber products, lumber, planing
comments cover only that part of manufactured gas which is mill products, boxes (wood), and custom saw mills. This dis-
not included in the general fuel and power distribution. tribution is not intended to include lumber and timber products
To Electric Utilities: proportional distribution on the basisproduced on farms for farmers' own use. Available statistical
of consumption data (Statistical Abstract of United States). To information does not provide, however, a sufficient basis for a
Consumption: undistributed gas, coke, and appliances (Mfr.). clear-cut distinction among the different sources of the lumber
To Undistributed: undistributed by-products. supply.
To Agriculture: fence posts (total output, Statistical Abstract
25. Electric Utilities
of United States). To Iron Mining: estimated on basis of I923
Includes electric railroads, electric light and power, telephonedistribution as given by the Department of Agriculture (Sta-
and telegraph. The main part of the electric power distribu- tistical Bulletin 2I). To Automobiles: estimated on basis of
tion is derived from the general fuel and power distribution. Automobile Facts and Figures for I923. To Other Iron and Steel
(See coal distribution.) The following comments cover only Industries: includes wood used in car construction, agricultural
those items which are not derived from the general fuel and implements, and carriages and wagons, estimated on basis of
power distribution. Wood Using Industries of New York (Technical Publication No.
To Electric Utilities: power sold by central electric stations I4 of New York State College of Forestry, I92I). To Non-
to electric railways and to other central electric stations, power Ferrous Metal Mining: estimated on basis of I923 distribution
sold by electric railroads to central electric stations, etc. To as given by the Department of Agriculture (Stat. Bull. 2I).
Consumption: (a) passenger and baggage revenue of electric To Refined Petroleum: containers (cost data, Mfr.). To Coal
railroads (estimated on basis of the Census of Electric Rail- Mining: estimated on basis of I923 distribution as given by
roads, I9I7 and I922); (b) domestic and farm consumption of Department of Agriculture (Stat. Bull. 2I). To Lumber and
electric power (estimated on basis of Census of Electric Indus- Timber Products: saw logs consumed by lumber industry,
tries: Central Electric Stations, I9I7, I922, I927, and I932). It lumber consumed by planing mills and box factories (estimated
is assumed that two-thirds of "small power and light" sales on basis of Mfr.). To Other Wood Products: used in wooden,
consisted of power and that one-third was used for commercialshipbuilding, fumiture, cooperage, wood (turned and carved),
lighting; (c) thirty per cent of total telegraph and telephone etc. (estimated on basis of Census of Mfr. and Wood Using
revenue (rough estimate). To Undistributed: residual. Industries of New York. For reference, see above). To Chem-
icals: material for production of tanning extracts and dyestuffs
26. Chemicals
and wood distillation (Mfr.). To Shoe Industry: materials for
Includes blackings, stains, and dressings, bluing, candles, wooden heels (Mfr.). To Construction: lumber and millwork
chemicals, cleaning and polishing preparations, coal tar prod- (estimated on basis of Census of Construction, I929). To
ucts, drug grinding, druggists' preparations, natural dyestuffs Transportation (Railroads): ties (Statistics of Railways). To
and extracts, essential oils, explosives, fireworks, fertilizers, Industries not elsewhere specified: estimated on basis of Wood
glue, n.e.s., adhesives, cottonseed oil and cake, oil, n.e.s., paints,Using Industries of New York (for reference, see above).

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
QUANTITATIVE INPUT AND OUTPUT RELATIONS 12I
28. Other Wood Products and marketing channel separately. To Other Textile Products:
Includes baskets, rattan and willow ware, billiard tables and bag materials, etc. (estimated on basis of cost of materials and
bowling alleys, brooms, brushes, coffins and burial cases, char- output data, Mfr.). To Shoes: lining materials (production,
coal, cooperage (slack and tight), cork cutting, furniture (wood, Mfr.). To Other Leather Products: saddle felts (production,
rattan, and willow), store and office fixtures, show cases, lasts,Mfr.). To Rubber Industry: tire duck (production, Mfr.) and
looking glass and picture frames, matches, musical instruments, cloth for rubberizing (estimate on basis of yardage). To Con-
pianos, organs and materials, refrigerators, sewing machine sumption: difference between the total product of the industry
cases, shipbuilding (wooden), wood (turned and carved), wood- and the amounts distributed among all other uses, including
enware products not elsewhere specified, wood preserving. undistributed (see below). To Undistributed: consists of
To Tobacco: cigar boxes (Mfr.). To Other Iron and Steel products for further manufacture which could not be assigned
Industries: sewing machine cases (Mfr.). To Other Wood to particular industries, products of unknown use, unspecified
Products: musical instruments, parts (Mfr.). To Shoes: lasts products and contract work (production, Mfr.).
(Mfr.). To Consumption: wooden furniture, musical instru-
33. Clothing
ments, coffins and burial cases, wooden goods n.e.s., etc.
Includes men's clothing, buttonholes, men's collars and cuffs,
(Mfr.). To Undistributed: includes I65 million dollars of
men's furnishings, suspenders, garters, etc., shirts, women's
wooden shipbuilding products.
clothing, corsets, gloves and mittens, cloth, hats and caps
29. Paper and Wood Pulp (other than felt, straw, or wool), millinery and lace goods.
Includes paper and wood pulp, pulp from fiber, not wood, To Clothing: sixty per cent (rough estimate) of products of
and pulp goods. contract clothing manufacture, buttonholes, fur trimmings
To Paper and Wood Pulp: pulp (Mfr.). To Other Paper from fur goods industry (estimated on basis of Mfr., I929).
Products: paper for boxes, bags, etc. (rough estimates on basis To Consumption: difference between total output of clothing
of cost of materials, Mfr.). To Printing and Publishing: print- industry and the amounts distributed to other uses. To
ing paper and board (production, Mfr.). To Construction: Undistributed: "Other Products" estimated on basis of Mfr.,
building and roofing paper (production, Mfr.). To Consump- I929.
tion: wallpapers, writing paper, tissue paper, etc. (production,

34. Other Textile Products
Mfr.). To Undistributed: wrapping paper, paper board, etc.
Includes asbestos textile mill products, awnings, tents and
30. Other Paper Products sails, bags other than paper, belting and hose (not rubber),
Includes bags (paper), boxes (paper and other n. e. s.) carpets (rag), cloth sponging and refinishing, clothing (horse),
carbon paper, cardboard, cardcutting and designing, envelopes, flags and banners, furs (dressed), hairwork, hammocks, hat and
paper goods, n. e. s., paper novelties, paper patterns, wall cap materials, house furnishings, n. e. s., mattresses and bed-
paper not made in paper mills. spreads, nets and seines, oakum, regalia, etc., upholstery
To Consumption: wall paper not made in paper mills, play- materials, n. e. s., waste (cotton and other).
ing cards, and paper novelties (production, Mfr.). To Undis- To Agriculture: clothing (horse, Mfr.). To Other Wood
tributed: bags, boxes, etc. Products: imitation leather and coiled hair (Mfr.). To Yarn
and Cloth: cloth sponging and finishing (production, Mfr.).
31. Printing and Publishing To Clothing: hat and cap materials and dressed furs (Mfr.).
Includes printing and publishing (book and job), music, To Consumption: house furnishings, mattresses, etc. (Mfr.).
newspapers and periodicals, book binding and blank book To Undistributed: bags, awnings, tents and sails, asbestos
making, engraving (steel and copperplate), lithographing, products, etc. (Mfr.).
photo-engraving, engraving materials, printing materials,
stereotyping and electrotyping, typefounding, and wood
35. Leather, Tanning
engraving. Includes leather tanning and finishing. The value of the
To Printing and Publishing: printing for others, photo- total product of the industry includes 77 million dollars of
engraving, bookbinding, etc. (Mfr.). To Transportation hides and skins tanned on contract, which is not included in the
(Railroads): job printing, blank books, etc. (estimated on basis value of the product of the industry as given in the Census.
of cost data, Statistics of Railways). To Consumption: news- To Automobiles: estimated on basis of Automobile Facts and
paper and periodical sales and subscriptions, books and Figures. To Other Wood Products: upholstery leather other
pamphlets, sheet music (Mfr.). To Undistributed: contains than that assigned to automobile industry. To Chemicals:
job printing, newspaper and periodical advertising, lithograph- glue stock and fertilizer materials (Mfr.). To Printing and
ing, etc. Publishing: bookbinders leather (Mfr.). To Yarn and Cloth:
wool and hair (Mfr.). To Clothing: textile leather and hat
32. Yarn and Cloth
sweats (Mfr.). To Leather, Tanning: rough leather (cost data,
Includes cotton goods, cotton small wares, cotton lace Mfr.). To Shoes: sole, upper, patent, and welting leather, less
woolen goods, worsted goods, carpets and rugs, wool felt hats, 55 million dollars assigned to consumption. To Other Leather
felt goods, knit goods, silk manufactures, cordage and twine, Industries: estimated on basis of cost of materials as given in
jute, linen, wool shoddy, wool pulling, wool scouring, fur felt Mfr. To Consumption: rough estimate of leather used in shoe
hats, dyeing and finishing textiles, flax and hemp (dressed), repairing. To Undistributed: residual.
haircloth, oilcloth and linoleum, straw hats.
To Agriculture: twine (Mfr.). To Automobiles: upholstery 36. Shoes
material (estimated on basis of Automobile Facts and Figures).
Includes boots and shoes, boot and shoe cut stock, boot and
To Other Wood Products: upholstery goods (production, AMfr.).
shoe findings.
To Yarn and Cloth: yarn, etc. (cost data, Mfr.). To Clothing: To Boots and Shoes: cut stock and findings (Mfr.). To Con-
distribution based on a special study made by the Bureau of sumption: boots and shoes (Mfr.).
Business Research, Harvard Graduate School of Business
Administration (Distribution of Textiles, Bulletin No. 56). As 37. Leather, Other Products
this study covers only a part of the industry, the application of Includes belting leather, gloves and mittens (leather),
its findings to the total output required a series of additional saddlery and harness, pocketbook leather, trunks and valises,
calculations. The estimates were made for each type of fabric leather goods, n.e.s.

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
tribute gloves
To Consumption: trunks and valises, the 625 million
and dollars of industrialetc.
mittens, construction
(estimate)
(production, Mfr.). To Undistributed: among the various
includes 40 industries.
million dol-
lars of leather belting.
4I. Transportation (Steam Railroads)
38. Rubber Manufactures
Includes Class I, II, and III railroads, switching and ter-
Includes belting and hose (rubber), boots and shoes (rubber),
minal companies.
rubber tires and tubes, and rubber goods, n. e. s.
The total value of product is equal to the total operating and
To Automobiles: tires (estimated; four tires and tubes per
non-operating revenue of all railways, diminished by 809 mil-
automobile produced in I919) and rubberized cloth (estimated
lion dollars, a sum which represents the total of financial trans-
on basis of Mfr.). To Rubber Manufacture: reclaimed rubber
actions between separate railroads and consists of rent pay-
(production, Mfr.). To Consumption: tires (total production
ments to other roads, interest and dividend payments to other
of pneumatic tires less amount assigned to automobile indus-
roads, and the net income of "federal" roads.
try), boots and shoes, druggists' and stationers' supplies, etc.
The interpretation of railroad finances for the year I919 is
(production, Mfr.). To Undistributed: includes solid tires (less
considerably complicated by the repercussions of governmental
amount assigned to automobile industry), hard rubber prod-
control. The non-operating revenue of "corporate" railroads
ucts, hose, etc.
includes approximately 9oo million dollars paid by the Federal
39. Industries Not Elsewhere Specified. Treasury in compensation for "leased lines." On the other
hand, in operating these "federal" roads, the government
Includes buttons, dairymen's and poultrymen's, etc. supplies,
electroplating, enameling, engraving and die sinking, feathers earned some net income. In the official accounting sheets, this
amount appears twice, once in the income schedule of the
and plumes, fire extinguishers (chemical), foundry supplies,
glass cutting and staining, hand stamps, instruments (profes- "corporate" roads as a part of payment received for "leased
lines," and again in the revenue account of the "federal" roads.
sional and scientific), japanning, jewelry and instrument cases,
In order to avoid this double counting, the latter item had to be
labels and tags, lamps and reflectors, models and patterns,
subtracted from the aggregate railroad revenue.
musical instruments and materials, n. e. s., photographic
apparatus, photographic materials, roofing materials, sand and The general scheme of distribution of transportation services
emery paper and cloth, stencils and brands, surgical appliances, is described in the first part of this article (see page II2).
typewriter supplies, upholstery materials, n. e. s., wheelbar- To all branches of industry and agriculture: distribution of
rows, artificial flowers, artificial limbs, artists' materials, freight services is based on the "Revenue Freight Tonnage by
china decorating, clocks, combs and hairpins not made of Classes of Commodities" as published in Statistics of Railways
rubber, dental goods, fancy goods, n.e.s., ice manufactured, for I919. The freight revenue on each of the different types of
ivory, shell, and bone work, jewelry, lapidary work, mirrors, commodities "per ton" is estimated on the basis of the " Esti-
optical goods, pencils (lead), pens (fountain and stylographic), mate of the Freight Revenue of Class I Roads by Classes of
pens (gold), phonographs, pipes (tobacco), signs and advertis- Commodities on Basis of I922 Tonnage and I923 Rates,"
ing novelties, sporting and athletic goods, stationery, n.e.s., Interstate Commerce Commission, Bureau of Statistics, I923.
The average per ton revenue on each particular type of com-
statuary and art goods, theater scenery, toys and games,
umbrellas and canes, watch and clock materials, watch cases modity as given in this study is corrected for the main freight
rate changes which took place between I9I9 and I922.
and watches, whips, window shades and fixtures, washing
machines and wringers, all other industries. To Consumption: total revenue earned in connection with
passenger traffic, which includes, in addition to the revenue on
To Agriculture: dairymen's, poultrymen's, etc. supplies (pro-
passenger account, receipts from transportation of excess bag-
duction, Ml?fr.). To Other Iron and Steel: foundry supplies
(production, Mfr.). To Other Wood Products: upholstery gage, the revenue from hotel accommodations owned by the
railroads, etc. To Exports: estimated costs of domestic trans-
materials, n. e. s. (production, Mfr.). To Yarn and Cloth:
portation of imported commodities (see page II2). To Undis-
buttons for knit goods (cost data, Mfr.). To Clothing: buttons
(rough estimate). To Construction: roofing materials (produc- tributed: this residual item includes the net governmental
tion, Mfr.). To Consumption: includes products of all indus- payment for lease of lines to the amount of approximately
400 million dollars.
tries from artificial limbs to all other industries as listed above.
To Undistributed: residual.
42. Imports
40. Construction
Includes commodity imports into the United States entered
Includes construction of multiple dwellings, public works and for domestic consumption (as listed in Foreign Commerce and
public utilities, business buildings, industrial buildings, resi- Navigation of the United States, I919). Imports of gold and
dential projects by operators, individual-built homes, etc., silver are excluded. The general principles of the import dis-
educational buildings, social and recreational buildings, tribution are presented in the first part of this article (see
religious and memorial buildings, hospitals and institutions, page II2).
public and government buildings, military and naval struc- The declared values of each particular kind of imports are
tures. augmented by the amount of duty collected and by the
The total value of products, as given in the table, is an proportional amount of domestic rail-transportation costs
authoritative estimate made on the basis of contracts awardedpaid within the country (see Transportation to Exports).
in 25 states as reported by the F. W. Dodge Corporation ("Who The statistical scheme used in distribution of imports is
Builds the Homes in Which You Live," Literary Digest, I926, analogous to the set-up of the general table: it may best be
p. 6). represented by a two-way tabulation, in which the rows show
To Consumption: multiple dwellings, residential projects and the distribution of all the individual kinds of imports while the
individual-built homes, stables, etc. (estimate; Dodge data for columns indicate the quantities of the different foreign goods
25 states are increased by 2I.7 per cent, which is the ratio absorbed by the respective industries. The detailed figures are
between the total construction in the United States as givengiven below in non-tabular form. Main headings refer to type
above and the Dodge figures of construction in 25 states). Toof imports; subheadings indicate the industries in which the
Undistributed: residual. No attempt has been made to dis- imports were absorbed.

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
QUANTITATIVE INPUT AND OUTPUT RELATIONS I23
IMPORTS Other iron and steel industries ............. 28,702

(Unit: thousand dollars) Smelting and refining ..................... 29,33I
Agricultural Brass, bronze, etc........... 9,277
To: Agriculture.......... 38,700 Undistributed..... I2
Flour and grist mills I7,I56 Brass, bronze,etc. I37,I5654
Bread and bakery products. 8,865 Brass, bronze, etc . 39,654
Liquors and beverages.238 To: Other iron and steel industries ............. 3,923
Tobacco.75,14,*,e 6 Brass, bronze, etc...... 5,8ii
Slaughter and meat packing ............... 56,772 Clothing.e txteproducts... I283
Other food products ... . 335,677 Other textile products .. 283
Yarn and cloth.......... 7I4,502 Chemicals.47I
Chemicals ................................ 64,868 O ther industries n. e. s.. 3,770
Consumption .1386,6 Consumption ............................ I,669
Conumpio. .......... .................
Undistributed.8,363......... I38i6
n r343 Undistributed ........................... 4,6I3
Flour and grist mill products I,458,448 Non-metal minerals 22,823
To: Bread and bakery products..... . 738 To: Brass, bronze, etc.. 37
Consumption ... . 9,905 Non-metal minerals. 9,674
10,643 Chemicals.. . 983
Canning and preserving IO43 Construction I,
To: Consumption . 27,509 Consumption...... 83o28
Bread and bakery products Other industries n. e. s 28,526
To: Consumption.6,842 Undistributed.. I3,88I
Sugar, etc. I8i
To: Sugar, etc. (refining). 393,71 Petroleum and natural gas 138,119
Undistributed ............................ 4,420 To: Petroleum refining ........................ 26,443
Liquors and beverages 397,59I Petroleum refining
To: Condubeverages 37598 To: Consumption.. . 4,997
To: Consumption .................................... 798 Undistributed ................nitiue........... 974
Tobacco mfrs.
To: Consumption ... . II,339 Coal 5,97I
Slaughtering and meat packing To: Consumption.. . 5,473
To: Slaughtering and meat packing . 5,629 Coke
Chemicals .. . I1820 To: Consumption.141
Leather, tanning ... . 306,509 Lumber and timber
Consumption .1.............................. I6,020- To: Agriculture. . I37
Undistributed.. 8,o50 Lumber and timber...... 32,768
Butter, cheese, etc. 338,028 Other wood products ........ 5,772
To: Consumption ............................ II,OI3 Paper and pulp ........................... IO,459
Undistributed...0................ 210 Construction ............................ . i,883
r fd p t I 3 Transportation.....,.... 355
Other food products 13,023 E lectric utilities .......................... I82
To: Consumption . ........ 2,807 Consumption. 536
Iron mining Undistributed. I3,222
To: Blast furnaces. .2 ,386 Other wood products 75,314
Blast furnaces To: Other wood products. 236
To: Steel works and rolling mills . .............. 5,443 Consumption589
Other iron and steel industries ............. I,652 CoUndistributed. 4,40I
Steel works and rolling mills 7,095 IO 6
r * *1* ' *11 0 ~~~~~~~~~Paper and wood pulp I'456
To: Steel works and rolling mills . . 3,849 Pae and woo.. .p.l. . p o4
Other iron and steel industries.8o8 To: Tobacco mfr .1 624
Transportation ......... ....... ... .. 652 Paper and wood pulp .. . 37,049
Printing and publis hingh 43,732
Automobiles 5,309 Consumption .... . I43
To: Consumption .......................... I23 Undistributed. 2,677
Other iron and steel industries 89,725
To: Agriculture. .4,08 Other paper products 8,2
Other iron and steel industries .. 589 To Consumpted..... Io.04
Textiles, yarn and cloth. ., I36 Undistributed.18I4
Construction .... ........ I34 .......I,9I8
Consumption. . . 773 Printing and publishing ,
onistbumt. . ..
Undistributed .. 9,314
To: Consumption. 4,894
Undistributed.... 237
Non-ferrous metal mining Yar029 l5I3I
To: Blast furnaces ........................... I9,200 Yarn ad oth
Smelting and refining . 2I,868 To: Agriculture.2696
Flour and grist mills.590
Smelting and refining 41,068 Other wood products. 427
To: Blast fumaces. T44 Yarn and cloth.28,30
Steel works and rolling mills ............... 22,88 Clothing. 32,457

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
124 TH E REVIEW OF ECONOMIC STATISTICS
Other textile products oduoo...... 5Consumption. . 1.9 . . i 2919

Consumption.... 25,02 Undistributed
Und istributed....... + 53,393 Special imports. 32377
192,795 ~other. .1. 6,092
Clothing T92,795 Household effects. 8,449
To: Consumpton.21,020 . S. mfrs. returned.. . 44,777
Other textile products 255,0I0
To: Yar and cloth.497 Tota Imports.. 3,90,368
Clothing... I2,452
Consumption ....... * * 2,843 43a. Wages and Salaries
Undistributed................*.*....,,.,, 26,680 To Agriculture: total of money w
42,472 (Census of Agriculture). To Manufacturing and
Chemicals tries (all industries from Flour and Grist Mills to Industries
To: Agriculture.33,345 Not Elsewhere Specified, with the exception of Electric Util-
Tex3:tiles .................................... 5,466 ities): calculated on the basis of Mfr. and M
Chemicals .................... 4I,7oo Utilities: calculated on the basis of the Census of Electric
Construlction ..1................................. I,236 Utilities. To Construction: rough estimate.' The percentage
Consumption ..9................................ g330 relation of wages and salaries and cost of materials to the value
Undistributed.. 4,254 of prouct of the indust in the year T929 was calculated on
105 33I the basis of the Census of Construction. These ratios were
Vegetable oils corrected for the change in wage level and variation in the cost
To: Canning and preservving. 8,000 of materials between T9I9 and I929 and then applied to the
Slaughtering and meat packing ............. 4T,18i total value of output in T919. To Transportation (Railroads):
Other food products. ............ . ....' I total wages and salaries (Statistics of Railways, i919) dimin-
Steel works and rolling mMs ........ . 98 ished by the amount of wages and salaries paid out by steam
Other iron and steel..1. . I27 railroad repair shops. (The latter are included in the Other
Yar and cloth..Io,6o6 Iron and Steel Industries.) To Consumption: estimate; the
Chntemicals .,..............,.,,.....,,, 42,107 total of direct services (intangibles) absorbed by households
Consumption... TO1,4 amounted, according to W. H. Lough (High Level Consumption
Undistributed..1.5.. I5+700 [New York, 19351), to 6,546 million dollars. It is assumed that
127,834 the material costs connected with the direct services are
Ckemials ncudingvegetable oils................ 233,T65 negligible and that consequently the total amount is dis-
tributed among wages, salaries, and capital and entrepre-
Leather, taonnng neurial services. The ratio between the two shares is obtained
To: Other wood products. .on basis of the income distribution within the "Unclassified
Tanning ...... * * 5,75' Industries" as given by W. I. King (The National Income and
Shoes...... **.** ...3,966 Its Purchasing Power, I930). To Undistributed: inc
Other leather products .................... , II376 wages and salaries paid out in banking, mercantile indus
Undistributed.. 123 Pullman and expressindustry, shipping, undistributed unc
Shoes 2I,2T7 fied (W. I. King: The National Income . . .). The last amount
To: Conumtion226 represents the difference between the total wages and salaries
paid out in unclassified industries and the amount of w
Other lether products salaries assigned to Consumption (see Wages and Salaries to
To: Agriculture..230 Consumption).
Consumption ........... * * * 6*26i
Undistributed ..287 43b. Capital Entrepreneurial Services (for definition lnd
6,778 general discussion, see page 113.)
Rubbr C To Agriculture: see page II4. To Manufacturing Industries
To: Consumption ........... * **********+****v***** ........368 and Mining: calculated on the basis o
Undistributed ........ * . * * * * . # ,, .... 636 . tax data in Statistics of Income, I919 (pub
I,004 of Internal Revenue). For each industry, the amount of the
To: Rubberf6 22T626 net corporate income, earned by "corporations reporting net
To: Rubber industries ... * . * * * 221,626 income" less tax, is augmented by the estimated amount of
Industries n. e. s. interest paid. In the official income statistics for i919 the
To: Industries n. e. s.70 industrial classification used in the distribution of interest
Consumption.40....... . . . 40368 charges is somewhat less detailed than that which is given in
Undistributed.. 8,4IT our table. The necessary subdivision is obtained through a
48,849 very rough estimnate: the interest charges within e
Miscellaneous group are distributed in proportion to the value of product.
To: Tobacco mfrs.3,865 The results obtained thus for corporate enterises only are
Other food products . 6,2I7 stepped up so as to cover each industry as a whole (see "Gross
Steel works and rolling mills. 3,34 Total Outlays" for manufacturing, below).
Brass, bronze, et.3,267 To Electric Utilities: comprises net incomq earned by "cor-
Other wood products.0...... ,o36 porations reporting net income" less tax (Statistics of Income,
Paper and pulp . . 7,I85 Bureau of Internal Revenue), plus interest paid (W. I. King,
Other texties.74,235 The National Income.. .). To Construction: see " To Electric
Chemicals. 22,688 Utilities." To Railroads: see " To Electric Utilities." To
Leather, tanning.10,225 Consumption: comprises rents for hired dwelings (estimated
Industries n. e. 5. 3337 by W. H. Louagh in High Level Consumption) and capital and

177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
Table 5. - quantitative Input and OutPut RelgtiOns in tht EcOftOmic Systern of tht United
(Uni t - mi I I ion dol lars)
DISTRIBUTION OF OUTPUT OF ELASSES LISTED AT LEFT 6F TABLE

-0
E .4
vo
c VD
= -v E vo
0
DISTRIBUTION OF OUTLAYS > m 7j 75

>
w E t CL m C: M. .0
(INPUT) OF CLASSES
1-0 - ,r- E '2;
E 'co-E41
00
LISTED AT TOP OF
vo
TABLE
w
10
C
c 0w
Iz -0
E
w -6 2L 00
la
U. c
VD
=3 E4J w 1
.2 :3 c
im la S C, E L_ 0 w 0 m m
co I.- cn < z (n m z CL at U 01. 0 CL
3 4 5 6 7 8 9 I 0 1 1 1 2 1 3 1 4 1 5 1 6 17- le 19 20 2 12 2 23 2 4 125 126 27 28 29 30 1 3 1

1 Agriculture 9102 1771 208 2 1163. 57 202 30331 797 53. 308 4
2 Flour and grist mill products 686 354
3 Canning and preserving -1

4 Bread and bakery products
5 Sugar, glucose, and starch 27 24 50 11 8 30 116

6 Liquors and beverages 35
7 Tobacco manufacture3
92
8 Slaughfering and meat354
packi ng 17
191 1 1 79
1 1
9 Butter, cheese, etc. 1 27 361
10 Other food industries 22 671
If Iron mining I 269 51 1

12 Blast furnaces I I 6691 161 51
13 Steel works and rolling mills 1 461 1 12 64821 1154 86 31 13176 89
14 Other iron aM steel wW electric mfr 5221 18 91 10 III 51 10 4 171 503 381 It 7 46 30 30 341 11 481 224 4
15 Automobiles 997 1 - I I
16 Non -ferrous metal m'ining 7 267
17 Smelting and refining 24 36 1 406 216 1 41
18 Brass, bronze, copper, etc., mfrs. I 1 5 131 251 1 46 2
19 Non-metal minerals 7 19 11211 22 41 221 14 13 20, 31 13 54 9
20 Petroleum and natural gas 101 1 4 3 71 41 722 2 6
21 Refined petroleum 2, 3 2 2 6 2 5 1 1 22 32 5 5 7 3 171 10 177 1 50 21 6 3 1
22 Coal 6 2 6 14i 10 1 151 5 7 9 10 95 85 7 10 16 5 761 20 361 189 49 1 21 45 81 734, 21
23 Coke 2 1 230 7 20 1 7 1 4 2 3 13 4 1
24 Manufactured gas 18 a 1 51 12 3 7 17 4 It
25 Electric utili ties 7 21 10 31 1 5 5 51 2 1 12 44 11, 10 21 7 14 1 1 13 I I 101 - 8 2 5 15 21

26 Chemicals 356 1 1 159 41 3 10 9 1 1 13 23 1941 6
27 Lumber and iimber products 258 31 96 44 12 35 36 9 48 485 453
28 Other wood products 1 13 14 37

29 Paper and wocid pulp 77 210 2
30 Other paper products
31 Printing and publishing I

32 Yarn and cloth I 41, 8 31
33 Clothing
34 Other text'tle prodUcts 6 30
35 Leather tanning 19 8 17
36 Leather shoes
37 Other leather products 1 751 1

38 Rubber manufactures 1 153
39 Industries n.e.s. 21 1 1 10 14i

40 Construction
41 Transportation (steam railroads) 74 4i 82 26 11 77 80i 24 97 165 19 17 187, 1131 713 50 9337

42 1 mports 85 21 8 8 468 91 106 353 231 351 36 115 18 I 1 261 181133 12 56
(a Wages and salaries 1099 97 91 12271 73 101 1531 286 60 190 83

434 Capital and entrepreneurial serVices 19818 78 371 127 55 1 1 I
611 88 61 40 141 8 361 383 866 207 67 42 34i 158 179 140 126 22 18 281 243 184 103
Total services 10917 175 128 288 200, 156 241 347 100 331 91 12
Undistributed,
Taxes 133 20 151 20 24 112 249 191 10 49 31 21 88 427 148 tg 7 20 32 39 78 49 9 19 143 '104 50 32 35 15
44 Other 403 176 458 326 200 267 530 150 419 136 173 402 4445 673 156 126 351 546 903 405 268 63 102, 716i 15471 6631 220 344 93
Total 133 423 191 4781 350 312 516 549 160 4681 167 194 490 4872 82t 175 133 371 578 942 483 317 .72 1 2.11 859 1651 7131 252 376 108
45 Gross total outlays 23047 2506 656 1390 1241 624 1070 4650 1166 1461 3 2 910 3108 12482 3488 504 1095 826 1593 1467 1908 2358 388 349 2534 3404 2540 1352 851 47 1
46 Net total 0UfIay3 113945 2506 656 1390 1230 589 1070 4296 1166 1394 372 910 2621 497 689 826 1573 1426 385 332 24,331 3210,2055 1315 1
177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
itative Input and Output Relations in tht Economic Systern of the United StMes, 1919
(Uni t - mi I I ion dol lars)
DISTRIBUTION OF OUTPUT OF CLASSES LISTED AT LEFT OF TABLE
vo
VD
7j 7EjM.
Z cL E W 0 W CL
E E
0o 0 0 P4 E -co C6 M -0
E
E 0
2L 0 5
E E
%
0 M %
< z (n m z 0- U 0 0 0- 0 cr_
1 2 1 31 4 1 5 1 6 1 7 1 8 I 92 02 1 2 2 2 3 2 4 2 5 26 2 72 8 2 9 30 3 132 3 3 3 4 3 5 1 3 ra 37 38 39 40 41 42 43 44 45 46
3 3081 4 1117 301 1210012209 97 22147 130451
318 968 136 2462 24622
151 462 15 628 3
23 1325, 13481
6 6 159 749 23 12011 11905
28 552 1615 5801 6
4 7 966 1013-1013 7
791 1 20 1 247 1 1035 2626 87 4576
6 146 874 65 1148 11489
7 1 56 1 189 661 1400 1333 1 0

269 5 4 2 12991299 1 1
J669 161 5 13i 885 857 12
12 64821 1154 86 31, 131 76 89 2 130 98 327 3741 29261 2444 13
0 4 17 503 38 1 1 1 7 46 30 30 341 1 11 48 224 47 108 7- 21 5 14 14 17 810,1431 896 634 5456 11610 litO 14
997 - 1 52 1773 383 3305 2308 15
7267 1 74 349 342 16
2 361 1 406 2161 1 41 7 130 5 1731 1039 633 17

3 251 46 2 11 521 113 30 783 783 18
-- 22 4 22 14 3 20 3 13 54 9 1 622 15 661 189 336 1441 1421 19
101 I 4 3 1 741, 722, 1 2 6 1 1 1 2 15 90 29 932 891 20
1 22 32 5 51 7 3 17 10 177 1 50 21 6 3 1 1 5 1 5 51 73 363 649 2811 1772 1595 2i
7 9 10 95 85 7 10 16 5 76 20 36 189 49 121 45 8 734 2133 2 1 61 2 81 20 1 441 120t 595 96 2223 2187 22
230 7. 20. 1 7 11 4 1 2i 3 13 4 1 1 1 5 5 61 3691 366 23
18 a I 5 12 3 7 17 4 1 1 1 2 227 12 330 313 24
5 2 1 12 44 II 10 2 7 14 1 1 13 1 1 101 8 2 5 15 2 10- 38 6 2 4 5 5 14! 979 778 2133 20321 25

4 3 1 101 9 1 13 23 194 6 25 5 47 2 30 388 725 1249 3302 3108 26
3, 96 44 12 35 36 9i 48 485 453 13 14 252 95 86 469 2408 1923 27
14 37 12 611 7571 391 1285 124812
77 210 233 Is 58 99 117 812 735 29
15 38 397 450 450 30
184 30 191 404 lfiB 1755 1571 I3 1

3 1 9111208 2901 6 1 189 1 31811812 762 5578 4667 32
145 42 3109 75 3371 3226 33
30 1 41 47 1 1 4 4172 282 585 5381 34

8 1 7 3 6 4 14 482 106 1 2191 55 731 1006 992 3 5
233 82 1064 1379 1146 36
I 0130 8 8303 303 37
153 53 191 651 261. 1138 1119 38

I 0 1 4 3 20 8 6 97 1134 391 1776 1776 39
1034 2
801 24 97 165 1 9 1 7 187 131 713 50 9337 5, 14111246 14641 5625 5620 4 1
53 23 35 36 1151 1 8 I 1 26 181 3 3 1 25 6 144 792 1291 55 371 4 1 1222 43 1 8 1 572 257 4205 4205 42
90 8 3 92 738140961 677 148, 72 171 488 169, 118, 975 50 781 782, 497 713 402 171 106 589 fO95 7311 86 1081 292 681 279 5141 762
41 8i 3 383 866 207 67 42 34 158 179 140 126 22 18 2811 243 184 103 14 45 133 585, 271 47 85 100 37 107 4071 95 815
131 911 128 1121 4962 884 215 114 205 646 348 258 1101 72 96 1063 740 897 505 245 151 722 168 1002 133 193 392 105 386 92t 857 3043 8846
49 31 21 881 427 148 tgl 720 32 39 78 49 9 19 1 143 104 50 32 35 15 32 249 34 15 26 25 6 38 55 78 244 1355 4174 a
tlg 136 173 402 4445 673 156 126 351 546 903 405 268 63 1021 716 15471 663 220 344 93 545 792 1027 68 101 235 73
68 1671 194 490 487 82t 175 133 3711 578 94 483, 317 .72 121 859 1651 713 252 376 108 577 1041, 1061 8 127 26q 79, 434
61 372 910 3i 108 1248 3481 504, 1095 826 1593 1467 1908 2358 388, 349 2534 3404 2540 1352i 85 473 1850 5825 35 613 104 1423 317 1285
194 372 910 26261119+4911 4971 689 826 1573 1426 1731 2322 385 3321 243 11210 12055 1311 473! 1666 4914344 566 317 126
177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
Tab I e6 Quantitative Input and Output Relations in the Economic System of the United States, I 9 1 9 Percents,,
(unit : one per comt)
DISTRIBUTION 'OF bUTPUT OF CLASSES LISTED AT LEFT OF TABLE

X
r
CL ve 0 .6
00 4- 'a C: xw
DISTRIBUTION0OF OUTLAYS
CL ;:
2L - r veo0 C
A E c-
(I NPUT) 0
OF C I
CLASSES 1U
4-
c V 0
E Z
X
t. CL
.9 E0 , 00
c 79
'C' - ,
LISTED AT TOP OF TABLE W E 0 cl. 0
00 ca
-0 10 Ij E 4 gx
Z ,C: e
E
40 0 *O 0 :3 c
E E
4-
41 0 4- E
4i w E
co I I
_jai
T,
0 I :2,'n
C'D Z
z CL E
cc .j CL,
Q 0 0. 0
3 4 1 5 6 7 9 lo 11 12 13 14 15 16117_ IS 19 20 21 122 23 1 2 _25___._26._....27 28129 X_ 31

I 13.6 1.6 .2 1.2 .4 1 1.5 23.3
Agriculture 2.4 6.1 .4 +.6
-1
(70-7),(3 _10L 1.7) (70.9 (9-7)1(18.8)
(68AII 0.8) 1(.5)
t9.6) (2M
2 Flour
- _L4J9 and
25.5) grist mill products 27.9
3 Camming and preserving
4 Bread and bakery products
5 Sugar. glucose,
10.1) (3:6) - and starch
0) (2.6) W) 23 2.0 4 2 (1.5 2.5 9.7 .5
6 Liquors and beveraies
I Tobacco manufactures
5 2.2 .5
8 Slaughteeing and meet packing (6.6) (1,5 (2S (.4)
2.4 3.1
9 Butter, cheese, etc, (2.6)
I 0 Other food industries 1 7
9ok- LT
I I Iron mining (.2) L
12 Blast furnaces 78.1 18-81 .6
(1.3)1 (.2)
13 Steel works and roliing rnills 1.9 .5 .2 47.2 3.5____I .5 1 3.1 3.6
(.3). (3.2), (.Z1_ _M (3-5) (6-2)- (5 3) _ LjA_
14 Other iron and steel
'7 and electric7)
3.9) mf (1.0
4.7 2 a (.6)
(4.5 (:I 1 .2 3.4 .1 .1 .C
.4 3 (2-3).
(1:3 3.t 1 .4 .2 .4 1.0
.(3.7) (1:9 4)(.4) A.2 (1: 3) 15-3)4.0) .3) M ll. 1) (2. 8) L2. 2)
1 5 AufomoViles
1 6 N o n - fe r rou smetal mining 78.1

138S)
17 Smelting and refining 3.8C
U) 5 6.4
.2 - -4-37
(1.3)
1 8 Brass, bronze, copper, etc, mfrs. .6 1.7 32.1 5.9 .3
G 5) (.9) (2-1) 0.8) - (. 1).
.5 1.3 1 1.5 1.5 3 1.5 1.0 2
1 9 Non-mefal
0 03) 6) (2.4)Winersis
(Ii (.2), (A (.4)(:2 .9 3
2) (.5) 8(1.2)
0:7) .6
20 Pefroteum and natural gas 1.1 .4 3 8 S1.0 .2
I (,4) _LL) - ('.4) i.) - ol. h (.6) (.2)
21 Refi,ned petroleum .1 .2 .1 .4 .1 .3 i i I A 2.0 .3 .3 A .2 1.1 .6 .1 3.1 1.3 .4 .2 .1 .3 .1
(.0 (. a) (:,,).6(.5) (.3), (.01 (.0 GO ---- __LM _L32 AM (A) (1.01 (3) (.13) (15.0 c G 1) (.6) 0)._a
.5 * .7 -2 - 3 5 .3 3.9 .3 - 5 . 7 .2 3.5 .9 8.6 2.2 5.5 2.1 A .3 1.6 .1 1.6
22 Coa I (.3) (.4) .1) (1.7) 1) (.3)1 (A) _L_(.5) .6) (.7) -L& Al (.4)
__ -AL21 M_-A & OAA (5.0)
_ (1.4) -G45) L4. A (.2). (.8)
2 3 Coke 5 . 3 62.8 1.9 5.5 3 1.9
(J) I 0) 25.3) (j (.2) * I--- -IL-9) _-Q) Q) C 1), (3.
.3 1.1 .5 3.6 1.1 .3
.3 .3 5. I 82.6
.6 )-S.3 -
1.3 1.0
3.52.2 .3
24 Manufactured gas 1) 0 (A 0) (.1 (.2) (.4) (21 63) (.1
3 1 .5 2 - 2 2 .6 2.2 .5 .5 1. 3 .7 .6 A (:I -1 -7 -1 5 1.9
2 5 Electric utilities G) Q) Q) (:5') G 1) GI) (.4)W G 1) 5). 64) (.4) (2.0 (3) G 8) L9) Gl) GQ 0) (.4) (.21 1) (A). 0.91 (A) Ga
2 6 Chemicals 11.5
1(2.6) (3.7) (1.1) 5.1 . I
(.3) 1) - G
flA 1- 3 BN
I G .3 .4
0.0).7 .2
0N, (1-1
13.4 .2 5.0 2.3 .6 1.8 1.9 .5 2.5 23.6
2 7 Lumber and ftmber products (1.9) La). (.8) 0.8) (2.4), (2-0) (1-61, (.4) (1.5) (34A
28 Other wood products
(1.21
1.0 1.2
2 9 Paper and wood pulp (44A) (14.0)
30 Other paper products
3 1 Printing and publishing

32 Yarn
-9and cloth
(.3) .2 .7
33 Clof hi ng
34 Other textile products 5.6(2.4

1.9 .8 1.7 3 .6
3 5 Leather tanning (.21 (2Z (2) L I'
36 Leafher shoes
37 Other leaf her products

(.54 24-81
38 Rubber manufactures
1 1 'I .1 13.7
*(6.0
1 2 .6 .2
39 Industries n.e.s. (J) 1
4 0 Construction
13.2 ''A.5 .5 T 1.4 f2IS .4 1.7 1.9 .3 .3 3.3 2.3 12.7 .9 .2 &O
41 Transportation Weam railroads)
(3.3) (2.11 _C2.0
(1-8) . ) -A-4) _SIL
Alm im A 1. 9) (7.6)(30-7) (13.01 G 3) (11 fiA
4 2 Imports .5 .2 .2 I 1. 1 2.2 2.5 5.4 .5 .8 .9 2.7 .4 '3 .6 4.3 .8 .3 1.3 1.0 I&E
(A _LM _J_6)!LU - JU (2 5.1 JZ4 -A.1 __Jtj M-7) -C U. _J._71 (13A (lei (1.6 _17 (2.61 (16.1
Wages and salaries
43 Capital and entrepreneurial services
Total service3 19.7 .3 .2 .5 .4 .3 .4 .6 ,2 .6 .2 .2 2.0 8.9 1.6 .4 .2 A 1 2 -.6 -.5 2.0 1 .2 1 IJ 1.6 .9 A
la
(78.Z (7.0) & U. 2n. lu 2u a= _11D _M 17) 14 _9A= W 24A AM W4 A2.7) 2M 4 3.7) L4 3.g IM A (34-
Undistributed:
a Taxes
44b Other
Total .4 1.2 .5 1.3 1.0 .9 1.4 1.5 A .5 1.4 13.4 2-3 .5 .4 1.0 1.6 2.6 1.3 .9 .2 .3 2.4 4.6 2D .7 1
0-0), 06.9 (29.0 (34A (28A (53.0048.9 (I 2- 0 3.1 (332) A (21.2D 08JU40.7) (32.905j (19-1
45 GfOS3 total outlays P65-3000-1 00-0000-0300.9)(105-9) Oq U. 100.0 104.00001 oooim 18.4io 40.01101.4 540 I-S,
46 Net total outlays 6004kio oao (Io 00400 0 (1001a 00.0 00 ooio 00 (10 0 0 0 004100O
I I 1 2 3 _LL r 0 It I LLIELI 4 15 1 16 18 1 19 1 20 21 1 1 _
t The f Fgure3 in this table are based upon the data in Table 5. Figures not in parentheses are percentages of the
177.94.61.76
iotal outlays) of Table 5. Asterisks on Thu,
indicate 08 Jun 2023 22:03:51
percentages of less+00:00
than %(100 tf one per cent.
d Output Relations in the Economic System of the United States, I 9 1 9 Percentage Distributiont
(Unit one per comt)
DISTRIBUTION OF OUTPUT OF CLASSES LISTED AT LEFT OF TABLE
%
'C:
r C 0
E
C
E
CL
.0 78 CL
r
r= E 39
C ft C 12 'a 1.
10 10 -
e E
10 3t I" C
E C M E
E = . Ot
E Is
E
E2
co 0 co LO 0 :2 tn co Z CL cr _j 0. 0 CL,I I3 , I _i, C) cr C Q
9 10 IL, 12 13 1 4 1 5 16_ 17 IS 19 20 21 22 23 1 24 25 26 27 28 _a 30 311 32 13- 34 35 36 37 38 40 I41 142 43 144 45 46
6.1 .4 2.4 8.6. .2
LUA (9 6) (5) L2
16.1 16.9 1 7.5 169.8 100.0 I
2A. (2-9) 1(26A (5.11 (2.9
12.9
.0 (2. .0 I o 39.
24.0 73.6 2A 100.0
(Ij (iji _*
1.7 (10
(.3X 98.3 100.0 100.
2.5 9.7 .5 13A 62.9 1.9
,2.6) (&3) (101 (1.11 (.01 lo(Lg 100.0 5
4.8 95
4.6
W(2.2 95
.4 .5 5.9 24.5 622 2.1
L5) (24.01 (13-1) (6-0 (3 10M 100.0 8
3.1 I 2.7 76.1 5.1110
(2.6) __C __ 11 (2a La o-o 100.09
4.2
(2.71 ___u
L291_C2
got 1. 7.0 100.0 100.0 I I
78.1
ZLSL18.8 .6 1.5 .9
(.2) loao 100.0
C21 -*1 1 2
.5 .2 4 3.5 1.3 .5 3.1 3.6 .1 5.3 4.0 13.4 15. 1 3
(3.2) 0) (9.6) (3-5) (6-2) (5 3) (3.8) Q) (4-1) 0. _L4-1) OA 119.7 1004
1) (.6) 2).2
(A3.4 .1
2). (3:4
(I. ' .03) 3.1 I. .1 .4 2(25.1
1.41 104,5
lili tl iooZ
49,_ 1 4
.4 1 1 2 73 12.1 (11
(2.8) - _4)1
7). 0:3
_(2.-I (14.0)
_L.-31 (02)
2) (2)
13' _A4) Q)
-,(4' 6.6(24
-QZ 76.8 1116
(1.91" 61 14 3
38S)
78.1 .3 2 102.0 too.0 16
3.8 5.7 2 6.5 1.1 2(15 .8 2731
(.9) (.3) * 6.4 U (1.6) -* (.41 164.1 100.0 17
1.7 32.1 5.9 .3 .1 6.6 14.4 38.3 18
(M 0 -8) C ly ci m irs 10 100.0
1. 1-5 .2 (:2 .9 3.8 .6 3.3
(22).(
d I 6).
.2) (:0(.0
2) (19.6
(.5). (A (.g
(1.7) 101.4
(1.2), 100.01
CO) (A 1 9
1.1 41 3 .8 -Suo- .2 .7 .2 1) 6100.0 20
(.4) (.2) ('.4) (.4) OL. 7 (.6)1 (.2) (J) 1:2 104.
.1 IA 2.0 .3 .3 A .2 1.1 .6 .1 3.1 1.3 .4 .2 .1 .3 .1 .3 .1 .3 .3 4.6 22.84 111.1 100.0 21
.L. A _LM _L32 _L2) _= W 0. 1) (M. .3) a q-1 (.9) ( 2) -L. a" (.6) _(.0 __ (. 1) -, - (1.2) (4.01 (1,,5,
.2 .3 .4 .5 4.3 3.9 .3 .5 .7 .2 3.5 .9 &6 5.5 2.1 A .3 1.6 .1 .1 1.6 .1 .1 .3 .1 .4 .9 20.2 5.5 27.2 44
U.4 G5112-AA_(LA_UM_L7j (311D.-A J.6) (4.8). 0.211 Ai& OA-A (5.0) (1.4), (.4) (.914.4) (.4) Q) (.8) (.01 GQ (1-0) (W (1.5) (1.41( 101.6 100.0 22
62.8 1.9 5.5 .3 1.9 .3 1.1 .5 3.6 1.1 .3 .3 .3 IA 1.41
25.3). Q) (.2). 1)(.3) C 1) 00.8 10 0,0 23
.3 5.8 2.6 .3 1.6 1.8 1.0 2.2 1.3 3.5 .3 .6 72.5
(A 0) GV (.2) (.4) (.2) Q) MI G 1) 105.4.100.0 24
.2 .2 .6C
2.2 4)
.5 .5 - 1.3 .7 G
___.6 - Al
A 2 .1 '5 (A)
1.9 .3 .1 .2 .2 * .2 .7 4&2 38.3 05.0 100.0 25
(.4) .0 Q) 8) 1) __LN
_ .4)
0. (.4) (2 L9) GI)
_L_ 1.0GM 0) (.21 (W (4) Q) M (J)
12,52 4a2(2 (2 1
.1 .3 .3 .4 .7 .2 .8 LO 1.5 A106.2 IOQO 26
1 (I .0 G 3111 (. 1), I f1A (. 8) (1.0) U.51 (1.2) (4.6) (.21 (.91 __(4
2 5.0 2.3 .6 1.8 1.9 .5 2.5 23.6 1 .7 .7 13.1 49 4.5 24.4 027
_(.8) .8) (2.4) (2-0) (1-61, (.4) (1.5)1 104A I 0. 1) W (1.6 (1.1 (0, 125.2 10 0.
1.2 1.0 4-9 60.6 31Z
0.
2A 7.j 115 15.9 29
(44A) (I 66) (.'M (.2 C3 110-51100.0
3.3 88.2 30
100.0 100.0
19 1.2 25.7 712
. . ........... T_
(.2 CM (2.9,' 111.7 100.0
.2 .7 25.9 6.2 4.0 6z 3u 16.3 119.5 1000 32
Q) J_ 1(2.8) 105.0 (51.3 (.11 04.911 (J). (4J (4.9 (26,
I 1.3 104.5
5.6 -0 31.8100.0
32A
C2A GI! U (.4, (A 108.7 100.0 34
33
1.9 I 1.7 '3 A 48.6

OIA 103 22.1 5.5 74 01.4
100.0
(.2) jx. (40.5 (3 __L, __U35
J_
7.2 92.8 36
(1.0) (2.41 120.3 100.0
3.3 42.9 29.0
61 GS, (-Z 100.0 100.0 3
.1 13.7
(6.0
4.7
5& 2 100.0
101.7
38
.6 .2 1.1 5.5 63.9 22D i00.0 100.0
O-Z
39
(2611
32.9 67.1
(2.4 (5.5 10 0.0 100.0 40
2.91 .2 6.0 2.
.4 .4 IT .3 .3 3.3 2.3 12.7 .9 00.1 100.0 4 1
I. -9 _= -sin . (I (3.8) am D-19 A6A - (2.9. 1
11125.3i
5.4 .5 .8 .9 2.7 .6 4.3 .8(I.
.3 1.3 1.0 18.8 _D6
3.1 13 8.6 .1 .3 51 -liD A IOQ t 00.0 42
(2.5m S 0.5) 0-7) (2.01 GV (lei (1.6 (1.1 (72 (2. 61 _ ji (3 A _L91. MO (. 3) W) 0 7S j(1-3
43ib
.2 .6 .2 .2 2.0 8.9 i.6 .4 .2 A 1.2 -.6 -.5 2.0 .1 .2 1.9 IJ 1.6 A . 3 1.3 360 1.8 .2 .3 .7 2 .7 1.7 1.5 5.5 116.0 100.0'
L.18.16) -DA& AZ-7-)(16.5)
(4 14"A)
AU(32M 4 3.7)
5.5) (4 A3.g
0 1.(38A (31.61
1) _4 A)f3i.91(43.3
AM W4(34A 23.2 -0.03.0
--(18.7) (3 OM (47.6) (271). (51.4) CM
Al .5 1 13.4 2-3 .5 41 1.0 -1.6 -2.6 1.3 .9 -.3 4.61 2D .7 1.0 .3 2.9 '2-9 .2 A .7 .2 k.2 215 .9 1.9 I 36.8
(I i.-A6316 M.7)
08.7) (32.9)
5.2 Q' .2 (5,
1.4104.1 q2A.3) (2 U (2 4A (21.1.Q0.8)(14.7)
(46.5)(22.8)(341 4. 3) (4 7. i (I(12
(11.71 GQ (30.6) 100.0 100.0
100.0io4.sjoo,Wooj*js.4)10 O.OW[OiA 58.jo I-S, 002.q 110-2)001.000.6*05. 04 00623.6002.*09.glpOOXWIII.CPKIIB.5,'PO4408-
(10 0 00 0 (10 0 0 0 00-C 000.C 000.iI00400.co oo.*Oocoo.004 00-4100-40oiloo"4100. ooilooAl - I__
(10 0 00. 0 014400.0 46
10 17 18 P-0 1 21 1 22 1 23 1 24 25 1 26 1 27 1 28 1 29 1 30 1 31 1 32 1 33 1 34 1 35 1 36 [_E_4 38 39 0 41 42_ 1_ 4A 1 4A 14$
-es not in parentheses are percentages of the not iotals of the rows (net total output) of Table 5; figures in parentheses are percentages of the ne't totals of the columns (ne't
isn 4/100 cf one per cent. 177.94.61.76 on Thu, 08 Jun 2023 22:03:51 +00:00
QUANTITATIVE INPUT AND OUTPUT RELATIONS 125
entrepreneurial income derived from personal services (see To Manufacturing Industries and Mining (from Flour and
Wages and Salaries to Consumption). To Undistributed: cal- Grist Mills to Industries Not Elsewhere Specified with excep-
culated on basis of the estimates given in WV. I. King's The tion of Electric Utilities): the aggregate additional corporate
Natio;nal Inlcomwc .... Includes (a) profit, dividends, and inter- investment is obtained by combining the data on corporate
est derived from banking, mercantile industry, Pullman and savings as estimated by W. I. King (The National Income . . .)
express services, transportation by water, and income derived with the statistics of new capital issues (stock and bond, exclud-
from governmental properties; (b) total annual addition to the ing refunding) compiled by the Commercial and Financial
undistributed surplus in all industries, less that part of it which Chronicle. The distribution of this total among the separate
is attributed by W. I. King to factories, mines, quarries and oil industries is based upon the analysis of the financial statistics
wells, railroads, and electric utilities; (c-) profit, dividends, and of approximately 2,000 corporations covered in the Source
interest derived from "Unclassified Industries," as defined by Book for the Stutdy of Industrial Profits, compiled by Ralph C.
WV. I. King in The National Incomte .. ., less capital and entre- Epstein and published by the Department of Commerce.
preneurial services (excluding rents) charged to consumption The increment in the total capital investment between I9I9
(see above); (d) aggregate corporate deficit in all industries, and I920 has been calculated for each particular industrial
minus deficits of industries covered in the distribution columns group as represented among these 2,000 corporations. In order
I to 4I. to make the industrial groups of the sample representative, the
relative size of each of them was brought into accord with the
44a. Taxes relative size of the respective total industries. This was accom-
Taxes Paid by Agriculture: estimate made by W. I. King plished in two steps: first, the capital increase within each
(The National Incomne...). Taxes paid by manufacturing sample industrial group was related to the value of product
industries and mining (from Flour and Grist Mills to Industries (sales) as given for the identical sample; i.e., the capital increase
Not Elsewhere Specified, excluding Electric 'Utilities); federal, per dollar of output (sales) was calculated. Next, the ratios
state, county, and local, including excises, as reported in Ml1fr. thus obtained were weighted by the total corporate product of
and Min. Taxes paid by the Electric Utilities: comprise cor- each particular industry as given in the Census, and each of
porate income, war profit, excess profit, and other domestic these weighted ratios was expressed as a proportion of the sum
taxes as listed in Statistics of Income (Bureau of Internal of such weighted ratios. Finally, after these two steps were
Revenue). Taxes paid by Construction: include the same taken, the estimate of the relative corporate capital increase
items as taxes paid by Electric Utilities. Taxes paid by con- within the different industrial groups was applied to the sum
sumers: comprise income taxes, direct personal property taxes, total of new investment.
poll taxes, licenses, and fees for personal activities. Estimate The capital increase as calculated for each industry must be
taken from W. H. Lough, High Level Consutmption. further augmented by the total of the deficits for the corre-
sponding industry (as given inStatistics of Income,published by
44b. Other Undistributed the Bureau of Internal Revenue). According to conventional
accounting principles, these are charged against the net income
Each item represents the difference between the Total
of profitable corporations but in our set-up (see page I 4) the
Expenditures and the total of all other items included in each
offsetting influence of deficits has to be eliminated, which
column.
means that they have to be "added back."
The last stage in these calculations consists in stepping up
45. Gross Total Oultlays
the results which apply only to the corporate part of the indus-
The definition of the concept of Gross Total Outlays, as well try so as to include all producers covered in the Census. The
as the general outlines of its statistical derivation, is given on ratio between the total output of each separate industry and
page II 5 above. The following comments are limited to descrip- that part of it which was produced by corporations is used as
tion of actual statistical calculations. a multiplier in each case.
To Agriculture: this item is obtained by adding the value of The "Gross Total Outlays" were obtained by adding the
the total product (22,147 million dollars) as given in row I to new capital investment in each industry as derived above to
the estimated net increase in agricultural indebtedness between the value of its total product.
the beginning and the end of the year I9I9. To Electric Utilities: the total is obtained by adding to the
According to data presented in the Federal Reserve Bulletin total value of product new stock and bond issues (estimate
(April, I136) the increase in agricultural mortgage indebted- taken from W. I. King, The National Income . . .) and addi-
ness amounted in I9I9 to four or five hundred million dollars. tional corporate surplus, roughly estimated at I5 million dol-
Agricultural loans by commercial banks expanded between lars. To Construction: no attempt is made to estimate addi-
July 3I, i918, and December 31, I920, from 3,5I7 million dol- tional stock and bond issues or additions to undistributed
lars to 5,3I7 million dollars, which gives an average annual surplus. Thus this item represents the total output of the
increase of 720 million dollars. Augmenting this sum by the industry increased by the total deficits of corporate construc-
400 million dollars of new mortgage credits we have I,120 mil- tion enterprises (Statistics of Income, Bureau of Internal
lion dollars as the total of additional agricultural credits. To Revenue). To Railroads: total of new issues, additions to
obtain a net figure, it will be necessary to subtract from this undistributed surplus (W. I. King, The National Income ... ),
amount that part of the mortgage credit which originated in augmented by total corporate deficit (Statistics of Income,
financing sales of agricultural land by non-farmers. Further- Bureau of Internal Revenue), added to the total value of
more, the increase in bank savings and other non-agricultural product. To Exports: total exports of domestic products aug-
financial investments by the farm population has also to be mented by domestic transportation costs charged to imported
taken into consideration. Neither of these items can be deter- goods (see Transportation to Exports). To Consumption:
mined with any degree of accuracy. Thus the gross total of total consumption expenditures, i.e., total consumers' spend-
1,120 million dollars is simply reduced to 900 million dollars,
ings and withholdings (received income), less savings as esti-
220 million dollars being allowed for the two items mentioned mated in High Level Consumption by Lough. To Undistributed:
above. total of undistributed products and services listed in column 44.
WASSILY W. LEONTIEF
HARVARD UNIVERSITY

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Leontief QuantitativeInputOutput 1936

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Quantitative Input and Output Relations in the Economic Systems of the United States

Author(s): Wassily W. Leontief

Stable URL: https://www.jstor.org/stable/1927837

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QUANTITATIVE INPUT AND OUTPUT RELATIONS

INTRODUCTION The publication of this preliminary survey is

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THE THEORETICAL SCHEME AND ITS STATISTICAL APPLICATION

Profits paid out to the "owners," as well as C Ca Cb Cd Ce XC

ating expenses, purchases, replacements of ma- E Ea Eb EC Ed 2E,

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diagonal is not necessarily an empty one. If the TABLE 3

B+C Ba+Ca Bc+Cb Bd+CdBe+Ce 2(Bi+Ci)

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STATISTICAL SOURCES AND METHODS OF CALCULATION

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I9. Non-Metal Minerals General Fuel and Power Distribution for

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correspondingly. Thus, for example, patent the price

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tion: wallpapers, writing paper, tissue paper, etc. (production,

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IMPORTS Other iron and steel industries ............. 28,702

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Other textile products oduoo...... 5Consumption. . 1.9 . . i 2919

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DISTRIBUTION OF OUTPUT OF ELASSES LISTED AT LEFT 6F TABLE

DISTRIBUTION OF OUTLAYS > m 7j 75

3 4 5 6 7 8 9 I 0 1 1 1 2 1 3 1 4 1 5 1 6 17- le 19 20 2 12 2 23 2 4 125 126 27 28 29 30 1 3 1

3 Canning and preserving -1

5 Sugar, glucose, and starch 27 24 50 11 8 30 116

If Iron mining I 269 51 1

25 Electric utili ties 7 21 10 31 1 5 5 51 2 1 12 44 11, 10 21 7 14 1 1 13 I I 101 - 8 2 5 15 21

28 Other wood products 1 13 14 37

31 Printing and publishing I

34 Other text'tle prodUcts 6 30

37 Other leather products 1 751 1

39 Industries n.e.s. 21 1 1 10 14i

41 Transportation (steam railroads) 74 4i 82 26 11 77 80i 24 97 165 19 17 187, 1131 713 50 9337

(a Wages and salaries 1099 97 91 12271 73 101 1531 286 60 190 83

DISTRIBUTION OF OUTPUT OF CLASSES LISTED AT LEFT OF TABLE

151 462 15 628 3

7 1 56 1 189 661 1400 1333 1 0

7267 1 74 349 342 16

2 361 1 406 2161 1 41 7 130 5 1731 1039 633 17

5 2 1 12 44 II 10 2 7 14 1 1 13 1 1 101 8 2 5 15 2 10- 38 6 2 4 5 5 14! 979 778 2133 20321 25

15 38 397 450 450 30

184 30 191 404 lfiB 1755 1571 I3 1