"The direct Federal expenditures included are certain items for the Department of the Interior, Bureau of Reclamation, War Department and Veterans' Administration. These data represent 58 percent of total Federal expenditures, excluding debt retirement. ***"*

10. Whereas the percentage of Federal expenditures to percentage income in fiscal year 1949 was 64 percent for the 4 Northern States, the percentage was 153 percent, or almost 21⁄2 times as great, for the Southern States. A similar comparison for Federal loans closed yields even more favorable results for the South; in fact, the southern ratio is almost four times as great as the northern ratio for Federal loans closed relative to the proportion of incomes. For New York and Connecticut, with percentage of expenditures to percentage of income 54 and 53 percent, the percentage of Federal expenditures in these States relative to incomes, was only one-third as much as that of the 5 southern industrial States.

Bureau of the Budget staff memorandum, Nov. 10, 1955, Tabulation of Federal Expenditures, Receipts ***, p. 3.

Selected Federal expenditures, loans closed, and loans insured, fiscal 1939 [In thousands of dollars]

1 Includes expenditures for the Agricultural Adjustment Administration, the Farm Security Administration, the Soil Conservation Service, the land utilization program, agricultural experiment stations, agricultural extension work, colleges for agricultural and mechanical arts, forest funds, forest roads, the Public Roads Administration, the Civil Conservation Corps, Indian service work, the Bureau of Reclamation, the Public Buildings Administration, the Public Works Administration, the Work Projects Administration, the National Youth Administration, the Social Security Act, rivers, harbors and flood-control programs Mineral Lease Act payments, vocational education and rehabilitation, the U. S. Employment Service, State marine schools, Federal Water Power Act payments, State homes for disabled soldiers and sailors, the National Guard, the Veterans' Administration, and the value of surplus agricultural commodities distributed.

* Includes loans closed by the Reconstruction Finance Corporation, the Farm Credit Administration, the Commodity Credit Corporation, the Farm Security Administration, the farm tenant-purchase program, the Rural Electrification Administration, the Public Works Administration, the Disaster Loan Corporation, the Federal Reserve Board, the Home Owners' Loan Corporation, and the U. S. Housing Authority. Includes loans insured by the Federal Housing Administration under title I and title II.

Aside from rounding error, the detail should add to this total; it is for the continental United States, excluding United States Territories.

Sources: See text.

11. In the next table, we compare the totals for the United States, New England. the Southern States, and the East South Central States. The same general results are revealed. Thus, New England with 8.2 percent of the Nation's income received but 6.1 percent of the Federal expenditures; 3.3 percent of the loans closed; and 3.2 percent of the loans insured. But compare, for example, the East South Central States: they accounted for 4 percent of income, 7.1 percent of expenditures. 10 percent of loans closed, but only 3.7 percent of loans insured. (The small number of large cities in this region explains in part the low percentage for the last.)

12. Finally, note that the 10 richest States with 43.5 percent of the income. accounted for 28.6 percent of Federal expenditures; the 10 poorest States, with 9.6 percent of the income, accounted for 17.8 percent of the expenditures. These rich States are largely the industrial States of the Northeast and North Central; and they account for Federal receipts equal to one-third relative to income (and even less relative to taxes) as compared with the 10 poorest States.

Selected Federal expenditures, loans closed, and loans insured, fiscal 1939, New England, South Atlantic and East-South Central States

1 Includes expenditures for the Agricultural Adjustment Administration, the Farm Security Adminis tration, the Soil Conservation Service, the land utilization program, agricultural experiment stations, agricultural extension work, colleges for agricultural and mechanical arts, forest funds, forest roads, the Public Roads Administration, the Civil Conservation Corps, Indian service work, the Bureau of Reclamation, the Public Buildings Administration, the Public Works Administration, the Works Projects Administra tion, the National Youth Administration, the Social Security Act, rivers, harbors and flood-control programs Mineral Lease Act payments, vocational education and rehabilitation, the U. S. Employment Service, State marine schools, Federal Water Power Act payments, State homes for disabled soldiers and sailors, the National Guard, the Veterans' Administration, and the value of surplus agricultural commodities distributed.

2 Includes loans closed by the Reconstruction Finance Corporation, the Farm Credit Administration, the Commodity Credit Corporation, the Farm Security Administration, the farm tenant-purchase program, the Rural Electrification Administration, the Public Works Administration, the Disaster Loan Corpora tion, the Federal Reserve Board, the Home Owners' Loan Corporation, and the U. S. Housing Authority. 3 Includes loans insured by the Federal Housing Administration under title I and title II.

Aside from rounding error, the detail should add to this total; it is for the continental United States, excluding United States Territories.

Sources: See text.

1939: Federal expenditures, loans closed, and loans insured, 10 Northern and 10 Southern and Western States

13. In two final tables in this section, we compare tax burdens and Federal expenditures, loans closed, and loans insured. Again, the rich Northern States experience losses relative to Southern and Western competitors. Thus, here we compare 10 Northern and 10 Southern and Western States.

14. This table suggests that the 10 Southern and Western States profited from Federal disbursements almost 51⁄2 times as large relative to tax burdens as the 10 Northern States. The latter States received back amounts equal to about 60 percent of the taxes borne. In loans closed, the Southern and Western States received 10 times as much relative to taxes borne as the Northern States. But in loans insured the relative total was but 11⁄2 times that of the Northern States.

Federal tax payments and Federal expenditures, loans closed, and loans insured per $1,000 of taxes paid, fiscal 1939

1 Includes expenditures for the Agricultural Adjustment Administration, the Farm Security Administration, the Soil Conservation Service, the land utilization program, agricultural experiment stations, agricultural extension work, colleges for agricultural and mechanical arts, forest funds, forest roads, the Public Roads Administration, the Civil Conservation Corps, Indian service work, the Bureau of Reclamation, the Public Buildings Administration, the Public Works Administration, the Work Projects Administration, the National Youth Administration, the Social Security Act, rivers, harbors and flood-control programs, Mineral Lease Act payments, vocational education and rehabilitation, the U. S. Employment Service, State marine schools, Federal Water Power Act payments, State homes for disabled soldiers and sailors, the National Guard, the Veterans' Administration, and the value of surplus agricultural commodities distributed.

2 Includes loans closed by the Reconstruction Finance Corporation, the Farm Credit Administration, the Commodity Credit Corporation, the Farm Security Administration, the farm tenant-purchase program, the Rural Electrification Administration, the Public Works Administration, the Disaster Loan Corporation, the Federal Reserve Board, the Home Owners' Loan Corporation, and the U. S. Housing Authority. Includes loans insured by the Federal Housing Administration under title I and title II.

Aside from rounding error, the detail should add to this total; it is for the continental United States excluding United States Territories.

Sources: See text.

1939: Taxes borne and Federal disbursements

15. Finally, I come to a breakdown for 1939 of Federal tax incidence and value, per thousand dollars of taxes paid, of expenditures, loans closed, and loans insured for New England, for the South Atlantic, and for the East South