Chart 18.-Manufactures-durable and nondurable. Aggregate physical production in comparable units, adjusted for seasonal variation NOTE.-Compiled by the Federal Reserve Board from figures included in its index of production of manufactures. "Durable" includes pig iron, steel, autos, lumber, vessels, locomotives, nonferrous metals, cement, polished plate glass, and coke. "Nondurable" includes textiles, leather products, foods, tobacco products, paper and printing, petroleum refining, and automobile tires and tubes.

MINERAL PRODUCTION

Output of mineral products increased in 1934 and additional benefits accrued to the industries by reason of the increased prices at which the commodities sold during the year. A substantial increase in both the quantity and value of bituminous coal production occurred. Next to petroleum, this is the most important mining industry, accounting for about one-fifth of the total value of mineral output in 1933. Crude petroleum production increased only 1 percent, although the increase in indicated consumption amounted to 6 percent. Iron ore production increased 42 percent in comparison with 1933, but the amount shipped from the mines increased only 6 percent.

Chart 19.-Percentage change in production of selected industries and all industries combined, 1934 compared with the 1927-29 average (Federal Reserve Board indexes).

Production of the major nonferrous metals was higher in 1934 than in 1933. The output of recoverable copper by mines in the United States was 26 percent higher than in 1933. Smelter production from domestic ores continued at a low level, being only 6 percent more than in 1933. Refinery production from domestic ores was slightly lower in 1934, but production from foreign ores increased by two-thirds and was almost equal to the output from domestic sources. Domestic stocks of copper were substantially reduced during the year.

Mine output of zinc was 14 percent above 1933 and the largest output since 1930. Lead ore sold or treated was 5 percent above 1933.

NATIONAL INDUSTRIAL RECOVERY ACT

At the close of 1933 slightly less than 200 codes of fair competition had been approved by the President, but during 1934 over 500 codes were drafted and approved. According to estimates of the National

Recovery Administration, 90 percent of the job of codification had been completed by the end of the year and over 22 million of the 48 million gainful workers enumerated in the United States Census of Occupations in 1930 were engaged in industries operating under codes. Approximately 40 percent of the gainful workers in codified industries are in the fields of manufacturing and mining. Over four-fifths of all codes are for industries in these two fields of activity. The National Recovery Administration, through the codes of fair competition, has contributed to the abolition of child labor, reduction of hours of work, establishment of minimum wage rates, and elimination of many unfair trade practices. In addition, organization within the ranks of both employers and employees was greatly strengthened. Section 7A with its "right to bargain collectively" gave impetus to a marked increase in unionization during the past year and a half. The creation of code authorities to apply the "self-government in industry" principles of the N. R. A. resulted in more and stronger employer organizations.

More than 60 percent of employees in codified industries are limited to a maximum of 40 hours per week and almost 95 percent are limited to a maximum of 48 hours per week. Minimum hourly wages of 40 cents, apply to approximately half of these employees and approximately 90 percent are in industries with minimum wage rates of 32 cents per hour or more. Most of the codes provide that executives, supervisors, etc., are exempt from the maximum hour and minimum wage provisions. Many codes provide for sex, geographical, and population differentials in the wage and hour provisions.

The N. R. A. was adopted for a period of 2 years and expires June 16, 1935. Toward the close of 1934 considerable attention was being given to a consideration of the features that should be retained in whatever legislation might be adopted extending the life of the N. R. A.

ELECTRIC LIGHT AND POWER

The year 1934 was a period of steady improvement in the electric light and power industry, from the standpoint of the demand for energy. The ability of the industry to develop an expanding market in the nonindustrial field, during a period when the demand from industrial sources was curtailed, indicates the existence of a widespread demand for energy at the prevailing level of prices. This industry, which represents an investment of over $12,000,000,000, has, as a matter of fact, shown a remarkable degree of stability during a period of unparalleled decline in economic activity. Notwithstanding a drop in industrial production of 46 percent from 1929 to 1932 and a sharp curtailment in all major sources of income, the production of electric power dropped less than 15 percent. Since the latter year the electric power industry has shown a steadier rate of improvement than has industry as a whole. In 1934, production had recovered to 94 percent of the 1929 record output. Sales of electricity to domestic consumers alone in 1934 were 31 percent in excess of those for 1929.

OUTPUT OF ELECTRIC CURRENT BY PUBLIC PLANTS

Electric current generated for public use during 1934 aggregated 91,150,000,000 kilowatt-hours, compared with 85,402,000,000 kilowatt-hours in 1933, a gain of 6.7 percent. Of the 1934 output, 63 percent was produced by fuel-burning plants and 37 percent by hydroelectric plants. Although current generated by the use of water power attained a record total of 34,727,000,000 kilowatt-hours in 1933 and declined only slightly during the following year, the relative position of water-power output has not varied greatly throughout the period of electrical development, ranging from about one-third to two-fifths of the total energy output. Electricity generated by fuel-burning plants reached a high of 62,915,000,000 kilowatt-hours in 1930, declined during the following 2 years to 49,055,000,000 kilowatt-hours in 1932, advanced in 1933 and again in 1934 to a total of 57,092,000,000 kilowatt-hours in the latter year.

Chart 20 depicts the trend in output of electricity by both water power and fuel power, as well as the continued advance in efficiency of fuel utilization.

The above data are based on the operation of all power plants producing 10,000 kilowatt-hours or more per month, engaged in generating electricity for public use, including commercial and municipal central stations, electric railways, steam railroads generating electricity for traction, public works, and certain other plants.

CENTRAL STATION OPERATIONS

Power sales in 1934 by commercial and municipal central stations, as compiled by the Edison Electric Institute, totaled 70,782,000,000 kilowatt-hours, an increase of 7.6 percent over the amount distributed

during the preceding year. With the exception of September, the period of the textile strike, sales in each month of the year registered gains over those of the corresponding month in 1933. Residential current constituted 18 percent of the total sales in 1934, while commercial current represented 71 percent. The corresponding proportions in 1929 were 13 percent for residential use and 76 percent for commercial use.

The record sales to domestic consumers in 1934 reflected the increased usage of electric refrigerators and other household appliances, as well as expansion in the number of customers. The average annual consumption of electricity per domestic consumer was 631 kilowatthours in 1934, compared with 604 in 1933 and 378 kilowatt-hours 10

Chart 20.-Production of electricity and consumption of fuel in public utility plants (United States Geological

Survey).

years ago. Kilowatt sales at wholesale, representing mainly industrial use, were the highest since 1931 but were almost 17 percent below the 1929 sales.

Concurrent with the expansion in energy consumption has been the lowering of average unit rates for electrical service; in 1934 the average cost to all classes of consumers was the lowest since 1929. There are, however, wide divergencies among charges in different localities. Rates to householders continued the downward trend, which tendency, with few exceptions, has been apparent throughout. the history of the electrical industry. The average cost of energy utilized by domestic customers in 1934 was 5.30 cents per kilowatthour. This represented a decrease of 3.5 percent from 1933 and of 5 percent from 1932. The average bill of domestic consumers was $33.44 in 1934, compared with $33.16 in 1933.

The Federal Power Commission has recently published a preliminary report covering its survey of domestic rates in cities of 50,000