. Income in the United States, its amount and distribution, 1909-1919. uel or power, current supplies ofvarious sorts, interest on bank loans, dividend orinterest payments to corporations, freight charges,and taxes are generally deducted because in mostcases they can be credited to other heads. Fur-ther deductions are made for depreciation andobsolescence, in order that the income may bereckoned net. What is left constitutes the valueproduct of the industry in hand. This value prod-uct is paid out to employees as wages, salaries,pensions, or compensation for injuries; to land-lords as rent; to
. Income in the United States, its amount and distribution, 1909-1919. uel or power, current supplies ofvarious sorts, interest on bank loans, dividend orinterest payments to corporations, freight charges,and taxes are generally deducted because in mostcases they can be credited to other heads. Fur-ther deductions are made for depreciation andobsolescence, in order that the income may bereckoned net. What is left constitutes the valueproduct of the industry in hand. This value prod-uct is paid out to employees as wages, salaries,pensions, or compensation for injuries; to land-lords as rent; to individual creditors as interest SIZE OF THE NATIONAL INCOME 21 on bonds or mortgage loans; to owners as profitsor dividends; and any remainder is kept in thebusiness as additional working capital. The sec-ond way of estimating value product (a method Chart 4, CONTEIBUTIONS TO THE NATIONAL INCOME MADEBY THE VAEIOUS INDUSTRIES. 1909-1918. Based upon Table 2. AGRICULTURE MINING MAm/FACTVRJNG ?WCLVDING HAND TMDE5 TRJKSPOKTATrON BANKING GOVERNMENT mCLASSir/ED ,50URCU. tgog 19iO t911 19IZ I9ld 19I4- I9J5 19J6 i917 t9l8 necessarily used in most cases because of the na-ture of the data available) is based on this divisionof the proceeds. Where one can get satisfactorydata for estimating total payments to employees,landlords, bond or mortgage holders, stockholders 22 INCOME IN THE UNITED STATES or partners, and surpluses, one can add up theseitems and take the total as an approximate figurefor the value product. In using the results which Mr. King has beenable to reach in one or the other of these ways,one must discriminate between the items whichhave a moderate and those which have a widemargin of error. The probable degree of errorin each item is discussed in Volume II. The lower half of Table 2 indicates that amongthe great branches of production, manufacturingholds first place—certainly if the value productof the hand trades, which include constructionwork, is combined with that
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