No. 1166. ACTIVE CORPORATION EXPENDITURES FOR ADVERTISING, COMPARED WITH SALES AND RECEIPTS, BY INDUSTRY: 1956 AND 1957

[Money figures in millions of dollars. Compiled from corporation income tax returns, excluding returns of inactive corporations. See headnote and footnotes, table 488]

7,666 1.1

6.6

0.7

0.2

0.2

1.4

4.9

2.0

5.2

0.7

1.0

1.4

0.8

0.6

3.6

0.5

1.7

1.1

0.8

Except electrical. Includes lessors of real property other than buildings.

Section 32

Foreign Commerce and Aid

This section presents measures of the flow of goods, precious metals, services, and funds between the United States and other countries. These measures appear in summary in the balance of payments and in detail as dollar values of imports and exports of merchandise or commodities classified by countries of their origin or destination. Related aspects also shown are international investments, mutual security and other foreign aid programs, and import duties.

The Office of Business Economics compiles and publishes current figures on the U.S. balance of payments and international investment position in its monthly Survey of Current Business, and on total foreign aid by the Federal Government in its quarterly Foreign Grants and Credits by the United States Government. Figures for earlier periods are presented in Balance of Payments-Statistical Supplement, 1958. Statistics for the mutual security programs are compiled by the International Cooperation Administration and appear in its quarterly report Mutual Security Fund Allocations to International Cooperation Administration.

The principal sources of import and export data are publications of the Bureau of the Census. The Quarterly Summary of Foreign Commerce of the United States presents cumulative quarterly data in each issue (annual data in the issue for the last quarter of each year). For a complete list of this Bureau's monthly, quarterly, and annual reports in this field, consult its Catalog of United States Foreign Trade Publications. In addition, the Treasury Department's Annual Report of the Secretary is a helpful source for information concerning import duties.

International accounts and foreign aid.—The balance of payments table shows for given time periods the transfer of goods, services, grants, and financial assets and liabilities between the United States and the rest of the world or between the United States and a specific country or area.

The international investment position table presents for specific dates the value of U.S. investments abroad and of foreign investments in the United States. The movement of foreign and U.S. capital as presented in the balance of payments is not the only factor affecting the total value of foreign investments. Among the other factors are: Changes in the valuation of assets or liabilities, including securities; defaults; expropriations; write-offs; and reinvested earnings of subsidiaries operating abroad and of foreign subsidiaries operating in the United States.

Foreign aid consists of grants (military supplies and services, and other grants), and credits. Grants or unilateral transactions are transfers of goods, services, or cash (dollars or foreign currencies) for which payment is not expected or has not been specified. Credits are loans of dollars or foreign currencies, or transfers of goods or services, under agreements which give rise to specific obligations to repay or return the equivalent, over a period of years, usually with interest. In some instances, assistance has been given with the understanding that a decision as to repayment will be made at a later date; such assistance at that time is included in grants. At such time as an agreement is reached for repayment, a credit is established. Such credits cannot, as a rule, be deducted from specific grants recorded in previous periods; therefore, an adjustment for grants converted into credits is made at the time of the agreement. All known returns to the U.S. Government stemming from grants and credits (reverse grants, returns of grants, and payments of principal) are taken into account in net grants and net credits. Interest and commissions are excluded.

Figures as published in Foreign Grants and Credits by the United States Government are not identical to figures for Government unilateral transfers and capital published in the balance of payments, mainly because of differences in treatment of particular items by the two sets of accounts. Such items include: Contributions to the multilateral construction program of the North Atlantic Treaty Organization; disbursements and collections under guarantees extended by the Export-Import Bank; Government investments in certain productive enterprises abroad and Government capital contributions to international organizations; and pensions, claims payments, and similar transfers.

Sale of U.S. agricultural commodities for foreign currencies is a comparatively recent development. The funds thereby obtained by the United States are used to finance military or other grants and credits for the purchasing countries or other countries or to pay U.S. obligations abroad, to purchase strategic materials, etc. Since the foreign countries do not have to use their dollar or other exchange resources for the agricultural commodities from the United States, they therefore receive temporary assistance which can be measured by the extent that the U.S. Government increases its holdings of foreign currencies or receivables. These changes in holdings or receivables (short-term claims) comprise the greater part of the Government short-term capital movements in the balance of payments in recent years.

The basic instrument for extending military aid to friendly nations has been the Mutual Defense Assistance Program authorized by the Congress in 1949. Prior to 1952, economic and technical aid was authorized by the Congress in the Foreign Assistance Act of 1948 and the 1950 Act for International Development, and by other legislation which set up programs for specific countries (e.g., Korea, Nationalist Government of China, etc.). In 1952, these economic, technical, and military aid programs were combined under the Mutual Security Act. Figures on mutual security program activity included in Foreign Grants and Credits differ from similar data published by the International Cooperation Administration, due largely to differences in method of reporting and differences in treatment of particular items.

Foreign trade.-Export data are compiled by the Bureau of the Census from Shippers' Export Declarations which exporters are required to file with Collectors of Customs for each shipment leaving the United States. Export data include shipments made after World War II under the Department of the Army Civilian Supply Program only for 1948 and subsequent years. In addition, export data include United States exports under the Lend-Lease, United Nations Relief and Rehabilitation Administration, Economic Cooperation Administration, Mutual Defense Assistance, and other mutual security programs. Shipments to United States Armed Forces for their own use are not included in export statistics for any period.

Export value figures are based on the selling price (or on the cost, if not sold) of the commodity shipped and include inland freight, insurance, and other charges to place of export. Transportation and other costs beyond the United States port of exportation are excluded. The country of destination is defined as the country of ultimate destination or country where the merchandise is to be consumed, further processed, or manufactured. In the event the exporter does not have definite information as to the country of ultimate destination for a shipment, it is credited (for statistical purposes) to the country to which it is consigned.

Certain export commodity classifications were grouped for security reasons into special categories beginning with May 1949, with periodic amendments to include additional commodities. With the adoption of new security regulations, effective July 1950, the publication of the country of destination and Customs District detail for the special category commodities and groups was discontinued. Data for special category commodities are included, however, in all total export statistics.

Shipments individually valued at less than $100 are not classified by commodity, but are reported in a single separate category. Effective with the statistics for July

1953 and continuing through December 1955, data for export shipments individually valued from $100 to $499 (about 4 to 6 percent of the total export value) were estimated on the basis of a 10-percent sample. From January through June 1956, the 10-percent sample was applied to shipments individually valued from $100 to $999 but, effective July 1956, the level was reduced to the previous level of $499. Unless otherwise noted, the margin of error in individual export totals due to sampling is probably less than 5 percent.

Import data are compiled by the Bureau of the Census from import entries (various Customs forms) which importers are required to file with Collectors of Customs for each shipment arriving. Import values are, in general, based on market or selling price and are f.o.b. the exporting country. Values do not include import duties. The country of origin is defined as the country in which the merchandise was grown, mined, or manufactured. If the importer cannot obtain information as to the country of origin, it is credited (for statistical purposes) to the country of shipment.

Imports are classified either as general imports or imports for consumption. General imports represent total arrivals of imported goods (except for in-transit shipments), that is, merchandise released from Customs custody immediately upon arrival plus merchandise entered into a bonded storage warehouse, bonded manufacturing warehouse, and bonded refining warehouse immediately upon arrival. Imports for consumption comprise merchandise entered into U.S. consumption channels, that is, merchandise released from Customs custody immediately upon arrival, merchandise entered into a bonded manufacturing warehouse (other than smelting or refining warehouse), merchandise withdrawn from a bonded storage warehouse for release into domestic consumption channels, and imported ores and crude metals which have been processed in a bonded smelting warehouse, withdrawn for consumption or for reexport. Beginning 1954, estimates of imports valued at $250 or less (about 1 percent of total import value) are based on a 5-percent sample; and beginning 1958, estimates of imports valued under $100 reported on formal consumption entries and imports reported on informal entries (limited to $250) are based on a 1-percent sample. These estimated import values are included in the over-all totals and are distributed in the proper country totals but are excluded from detailed commodity statistics. For 1954-1957, the estimated values are also distributed in the appropriate commodity group, economic class, and district totals; beginning 1958, the estimates are summarized and arbitrarily included in the totals for the "miscellaneous" commodity group and the "finished manufactures" economic class. As a result of the change in the sampling procedure in 1958, the 1958 and 1959 import values for customs districts, commodity groups (except miscellaneous), and economic classes (except finished manufactures) are probably understated by no more than 5 percent; figures for "miscellaneous" commodity group are probably overstated by no more than from 10 to 15 percent, and for "finished manufactures" by no more than about 1 percent.

Details concerning the sampling procedures appear in the Quarterly Summary of Foreign Commerce and Navigation of the United States, Report FT 110, United States Imports of Merchandise for Consumption, and Report FT 410, United States Exports of Domestic and Foreign Merchandise.

Except as noted, the values stated are in United States dollars without reference to changes in the gold content of the dollar.

Area coverage. The geographic area covered by these statistics, except as noted, is the United States customs area, which includes Alaska, Hawaii, and Puerto Rico, and for 1935 through 1939, the Virgin Islands. For a general statement concerning the treatment of data for Alaska and Hawaii, see also preface. "Conterminous area" refers to the United States excluding Alaska, Hawaii, and outlying areas.

Historical statistics.-Tabular headnotes (as "See also Historical Statistics, Colonial Times to 1957, series U 168-192") provide cross-references, where applicable, to Historical Statistics of the United States, Colonial Times to 1957. See preface.

1945

1946

1947

1948

1949

1950

1951

1952

FIG. XLIV. U. S. GOVERNMENT FOREIGN GRANTS AND CREDITS, BY
PROGRAM: 1945 To 1959

[See table 1171]

BILLIONS OF DOLLARS

OTHER GRANTS AND CREDITS, NET

MILITARY GRANTS, NET
SHORT-TERM ASSISTANCE, NET

Note. For definition of short-term assistance, see footnote 2, table 1171.

JULY-DECEMBER

Source: Department of Commerce. Chart prepared by Bureau of the Census; data from Office of Business Economics.