INTERNATIONAL LABOUR OFFICE STUDIES AND REPORTS Series N (Statistics) No. 17 (Second Revised Edition) A CONTRIBUTION TO THE STUDY OF INTERNATIONAL COMPARISONS OF COSTS OF LIVING An Enquiry into the Cost of Living of Certain Groups of Workers in Detroit (U.S.A.) and Fourteen European Towns GENEVA 1932 Published in the United Kingdom For the INTERNATIONAL LABOUR OFFICE ( L E A G U E OF NATIONS) By P. S. KING & SON, Ltd. Orchard House, 14 Great Smith Street, Westminster, London, S.W. 1 P R I N T E D BY ATAR, GENEVA Note to the Second Edition This study was originally published, in an English version only in December 1931, under the title of An International Enquiry into Costs of Living : A Comparative Study of Workers' Living Costs in Detroit (U.S.A.) and Fourteen European Cities. In the second edition, which is now published in English, French and German, the opportunity has been taken to make certain changes, as follows: (1) The title of the report has been amended. The new title gives perhaps a better description of the study. (2) The "Summary of Results " given on page 29 of the first edition has been considerably modified and expanded. Tables are now given showing the results for each of the main groups of expenditure both in national currency and in a common currency. In these tables the. employers' contributions to social insurance have not been taken into account, as the primary object of the tables is to show relative costs of living in the different towns. Pull information on employers' social insurance contributions will be found in the individual town reports. In addition, the reservations and qualifications to which the figures given in these summary tables are subject have been emphasised and the conclusions which can and cannot be drawn from the figures are set out in greater detail. (3) As announced in the preface to the first edition, an article was to be prepared for the International Labour Review in which the information furnished and the results obtained for the different cities were analysed and discussed in greater detail. This article duly appeared in the International Labour Review for September 1932 and it is now reproduced as Annex IV to this study. (4) Certain minor alterations have been made in the town reports, chiefly as regards the method of presentation. It should be emphasised, however, that none of the basic data as given in the appendices to each town report, or any of the methods of calculation, have been modified. These remain the same as in the first edition. PREFACE The enquiry, which resulted in the following report, arose originally out of a request from the Ford Motor Co. Ltd. (London). In 1929, this Company approached the International Labour Office for information as to the relative costs of living in certain European cities in which the Company had established, or proposed to establish, factories. In deciding upon the scale of wages to be paid in these cities the Company wished to consider the possibility of taking into account, among other factors, that of the cost of living. They were therefore anxious to have some authoritative source of information which would indicate the extent to which the cost of living and taxation varied in these cities in relation to the city of Detroit (U.S.A.), the headquarters of the Ford interests. The International Labour Office replied by supplying the information it had collected and published at regular intervals in the International Labour Review into the relative costs of food, fuel, etc., in the chief countries, and pointed out that full information for the specific towns in question could only be obtained by means of special investigations on the spot by persons acquainted with local conditions; enquiries which the International Labour Office could hardly undertake for one individual firm. The Ford Company, however, indicated that they did not wish for a special enquiry on their behalf, but, as indicated above, merely had need of some authoritative source book which would give them the information they needed as to what extent relative cost of living varied in these cities. The request of the Ford Motor Co., however, attracted considerable attention in the United States of America and an offer was made by the Twentieth Century Fund Inc. (President, Mr. Edward A. Filene) of Boston (Mass.) to defray the cost of a special enquiry. This generous offer was gratefully VIII PREFACE accepted by the Governing Body of the International Labour Office towards the end of the year 1929 and the conditions under which the special enquiry should be undertaken by the Statistical Section of the International Labour Office were agreed upon at interviews between the Director of the International Labour Office and the President of the Twentieth Century Fund. It was agreed that competent statistical authorities and experts in each of the countries covered by the enquiry should be consulted in order that the data secured might be reliable and the methods adopted sound. The price data used have been supplied in each case by a competent statistical authority and the International Labour Office has confined itself to making the necessary computations based upon these data. This procedure, while, it is hoped, adding to the authority of the enquiry and the confidence with which the results may be accepted, somewhat prolonged its duration. On completion of the enquiry the final figures were communicated to the Ford Company in London, and the task of the Office was, strictly speaking, completed, but in view of the great interest both in this special enquiry and in the general question of relative costs and standards of living of workers in different countries, it has been decided to publish the results. The Office is aware that the information obtained is not of equal value and it will be evident to students of the report that the "margin of error" is greater for some cities than for others, and although, as explained in the following chapters, careful attempts have been made to reduce this margin as much as possible, it has not always been possible to obtain strictly comparable data. It is primarily as a study of methods that this report is published. As far as the Office is aware, no similar enquiry of this nature has been undertaken before and while it is limited to a particular category of employee and to certain cities in a limited number of European countries, it is thought that a full account of the methods adopted, the difficulties encountered, and the problems raised in the course of the enquiry will be of special interest to all students of social questions. The experience gained in the course of the enquiry has been extremely valuable and it is hoped that if an enquiry of a similar nature is repeated (whether by the International Labour Office or by others), this account of methods and results PREFACE IX will be of service. For this reason all the original data used in the calculations have been published for each city covered *. It is unfortunate that at the early stages of the enquiry the fall in the general level of prices became very marked. Dependent as the Office has been on the goodwill of the various statistical experts in the different countries it was not possible to ensure that the local investigations should commence and terminate at the same dates in each city; and the data received therefore necessarily relate to various dates in 1930 and 1931. The ideal method would have been a simultaneous enquiry in each city, but this was precluded by the limited resources and staff available. In order to eliminate as far as possible this element of incomparability the calculations have been brought to a uniform date, viz. January 1931, by utilising the known information as to changes in the cost of living within each country since the date of enquiry, but this factor brings about a certain degree of approximation, which cannot in the circumstances be avoided. The thanks of the International Labour Office are due to all those who have collaborated in this enquiry in each of the towns and in particular to the Twentieth Century Fund Inc., without whose generous financial support this enquiry could not have been undertaken, and to the United States Bureau of Labour Statistics for its generous collaboration. 1 Note to second edition. — An article has been published in the International Labour Review, September 1932, in which the information furnished and the results obtained for the different cities are analysed in greater detail and compared with other data on social conditions. The greater part of this article is reproduced as Annex IV to this edition. CONTENTS NOTE TO THE SECOND EDITION PREFACE CHAPTER Page v vu I: Scope of the Enquiry Introduction The American Standard of Living Towns Covered by the Enquiry Organisation of the Enquiry Conclusion CHAPTER II : Method of the Enquiry and Summary of Results . Part I. — General Part II. — Details of Methods Adopted Basic Information and Collection of European D a t a . . . . Food • Housing Fuel and Light Clothing Medical Expenses Miscellaneous Expenses Insurance Taxation Part III. — Summary of Results 1 1 2 3 4 5 7 7 10 11 12 17 19 21 22 23 25 27 28 REPORTS ON THE DIFFERENT CITIES: Berlin and Frankfort on the Main (Germany) Copenhagen (Denmark) Stockholm (Sweden) Helsinki-Helsingfors (Finland) Paris and Marseilles (France) Antwerp (Belgium) Rotterdam (Netherlands) Manchester (Great Britain) Cork (Irish Free State) Warsaw (Poland) Barcelona (Spain) Istanbul (Turkey) ANNEX I: Standard of Living of Employees of the Ford Motor Co., Detroit (reprinted from the Monthly Labour Review, June 1930, of the United States Bureau of Labour Statistics). . 39 52 60 75 82 95 108 115 127 135 142 148 155 CONTENTS XII Page II: Memorandum on the Detroit Standard of Living circulated to the National Collaborators 201 ANNEX III: How Ford's Lowest-Paid Workers Live (reprinted from the Social Service Review (U.S.A.), March 1931) . . . 208 ANNEX IV: Further Observations on the Methods and the Validity of the Results of the Present Enquiry (reprinted from the International Labour Review, September 1932) 216 ANNEX V: Conversion Tables (Currency, Weights and Measures) American and European, used in the Enquiry 247 ANNEX CHAPTER I SCOPE OF THE ENQUIRÏ INTRODUCTION Before describing the exact scope of the enquiry which the International Labour Office was asked to undertake, it is perhaps advisable, in order to remove certain misconceptions, to state at the outset what the enquiry is not. First, it is not an enquiry into wages. The actual wages paid in the different countries covered by the enquiry are of no relevance to the present investigation and no statistics of wages have been collected. Secondly, it is not an enquiry into real wages (i.e. the relative purchasing power of existing wages) in the different countries. An enquiry of this nature has been conducted by the Office for some years but the information has not been used for the purpose of this enquiry. Thirdly, it is not one of comparing the different existing standards of living or of consumption in the different countries. A large amount of information is already available as to the mode of life of workers in various European countries, based principally on family budget enquiries, and a comparison of these, though difficult, would throw valuable light on social conditions. Such comparisons, however, would throw no direct light on the present problem. In its simplest terms the enquiry may be said to be a "cost of living enquiry ", similar to, but not identical with, those carried out in different countries to show changes in the cost of living over a period. The Ford Motor Co. Ltd. (London) explained to the Office that it was considering the policy of relating the conditions of employment of their European employees to those in Detroit and, for this purpose, was anxious to have some authoritative source of information which would indicate how far the cost of the necessaries of life differed from their cost in Detroit. 2 INTERNATIONAL ENQUIRY I N T O COSTS O F LIVING It was desired to know, in other words, how much a European worker would need to expend if his general standard of living were to be approximately equivalent to that of his Detroit counterpart. If the habits and conditions of life of workers in the different European countries were closely similar to those in the United States of America, the question would have been simple. In fact, however, there are great differences. The workers employed in the European factories are not American workers but mostly citizens of the country concerned, with their national habits, customs and traditions. If the question had been how much it would cost an American worker to live in each of the European cities in the same manner as in Detroit, the question would again have been relatively simple. It has been necessary (and the necessity was recognised in the original request) to take into account the modes of life in each city. The question thus involves taking into consideration not only the American standard of living but also the national habits, traditions and customs of the different cities. In this form the question becomes a difficult one to which only an approximate answer can be given. The discussion of the methods adopted to answer it is reserved for the following chapter. THE AMERICAN STANDARD OF LIVING As the whole object of the enquiry was to take the standard of living in Detroit as basis with which all the European cities were to be compared, it was necessary at the outset to obtain an authoritative account of the existing standard of living of the Detroit worker. The International Labour Office immediately addressed itself to the United States Bureau of Labour Statistics, which has had an exceptional and unique experience in making cost of living and family budget enquiries. It most generously undertook to make a special investigation which would act as a basis for this enquiry. The scope of this investigation is discussed in the following chapter and the complete results are given as an annex to this report. It is sufficient here to state that it related solely to Detroit families of a certain size whose SCOPE OF THE ENQUIRY 3 head had been working approximately full time throughout the year 1929 on the lowest wage scale1. The results of this enquiry show that such a type of family on an average spent, during 1929, $ 1,720. This figure of expenditure was taken as the basicfigureon which computations were made for all the other cities. The automobile industry is, however, one in which employment is somewhat irregular: seasonal fluctuations, changes in fashion, introductions of new models, all conduce to a certain irregularity of employment. Unfortunately, statistics are not available as to the average annual expenditure of all Detroit workers on the lowest wage scale, whether employed on fulltime or not, and could only be obtained at enormous cost by personal enquiries or by separate tabulation of the weekly earnings of each individual worker or of a large representative sample. Such figures, to be representative, would have to cover a number of years, owing to the exceptional conditions of the last few years. The object of the enquiry was therefore limited to finding how much would be spent by employees in certain European cities in order that these employees might have a standard of living approximately equivalent to that of a Detroit employee whose expenditure in 1929 was about 1,720 dollars. The enquiry was thus a limited one and related solely to this hypothetical employee. The figures obtained cannot necessarily be applied to other categories of workpeople. TOWNS COVERED BY THE ENQUIRY The International Labour Office has made investigations for the following fourteen cities in which the Company had established, or were considering the establishment of, factories: Berlin and Frankfort on the Main (Germany); Copenhagen (Denmark); Stockholm (Sweden); Helsinki-Helsingfors (Finland) ; Paris and Marseilles (France); Antwerp (Belgium); 1 This rate was $6 a day from 1919 to December 1929, when, as an emergency measure, it was raised to $7 a day, but was reduced again to $6 a day in October 1931. It must be remembered that in 1926 a five-day week was instituted. 4 INTERNATIONAL ENQUIRY INTO COSTS OF LIVING Rotterdam (Netherlands) ; Manchester (Great Britain); Cork (Irish Free State); Warsaw (Poland); Barcelona (Spain); Istanbul (Turkey). Although it wouïd have been of great and general interest to extend the enquiry to other towns, it was decided in view of the experimental nature of the enquiry and of the limited time and resources available to restrict the enquiry to these towns only. ORGANISATION OF THE ENQUIRY The Office had agreed to consult in each country competent experts who were familiar with the conditions in their country. Hence during the year 1930 the International Labour Office got into touch with the competent statistical authorities in each of the countries covered and arranged for collaboration. Visits were paid to each of the cities; the scope of the enquiry and the nature of the information required was carefully explained and collaboration was arranged. For each of the localities mentioned above information was furnished, in most cases readily, and the International Labour Office expresses its gratitude to all who have collaborated in this enquiry. Further information on the machinery of the enquiry, the way in which the basic data were handled, the various problems of measuring " t h e equivalent standard of living" are dealt with in the following chapter.. The price data used in the computations have been therefore furnished as a result of special enquiries made by competent persons or authorities in the city or country concerned, but the computations have been made by the International Labour Office. These computations, however, have been submitted to the competent authorities (where such a course was requested) and their observations have been taken into account in framing the estimates for each town. Moreover, in 1931, a Conference was held in Geneva to which representatives from the collaborating countries were invited. Representatives of nearly all the cities were present and Mr. Ethelbert Stewart, Commissioner of Labour Statistics in the Bureau of Labour Statistics of the United States of America, came to Geneva especially for this meeting, in order to give the SCOPE OF THE ENQUIRY 5 meeting the benefit of his advice and experience concerning the standard of living of the Detroit employee as obtained from the enquiry undertaken by his Bureau. The preliminary results of the enquiry were submitted to the Conference and a valuable exchange of views took place which enabled the collaborators to compare their experiences and explain to each other the methods they had adopted. As a result, supplementary enquiries became necessary in respect of some cities, in order to make the data more comparable, and the International Labour Office was able to interpret the data received with more confidence. The revised calculations were then submitted to competent authorities in each country (in most cases the Statistical Offices of the Central Government) and their observations have been taken into account in preparing the final report. CONCLUSION Before describing in detail the methods adopted, it is necessary to state once again that this enquiry is a first attempt of its nature to answer an important but particularly difficult question. The ideal way of dealing with the problem would have been by means of an international commission of experts which would have visited each town in turn, would have thoroughly investigated the conditions of living, would have used the same "standards of appreciation" and would have been able, especially in such matters as housing, to compare the relative values of different classes of accommodation. Such a method is precluded by the time and expense involved. The Office attempted the next best method, visits were paid to each of the countries (sometimes several visits to the same country) ; the problem was explained in detail ; full information on the qualities and grades of the articles and services bought was circulated, in some cases (e.g. clothing, household linen, etc.) actual samples of the Detroit articles were circulated, and the data were closely scrutinised on receipt. In nearly every case, supplementary enquiries were necessary and the figures were revised in order to ensure greater comparability. A general meeting of collaborating experts was held in Geneva when all the preliminary results had been obtained and frequent other consultations took place from time to time between the Office and experts who happened to be present in Geneva. Even with 6 INTERNATIONAL ENQUIRY INTO COSTS OF LIVING all these precautions, the Office realises that the data obtained are not always strictly comparable; in certain cases, in fact, it was impossible for the collaborators to obtain information satisfactory to the Office. Finally, the figures given in the report only answer the question put to the International Labour Office. It is not the purpose of this report to discuss the various factors which are, or may be, considered in fixing the conditions of employment of workers in different countries. One of the factors, when the conditions of one country are taken as a standard, is that of cost of living, or the level of prices, in the area in which the wages are to be spent, and it is to this factor, and to this factor only, that enquiries have been directed. Also, it should be repeated, the figures given relate only to the estimated annual expenditure in different countries, based on the family budget of a particular category of Detroit worker. It should not be assumed that similar results would be obtained if other categories of Detroit workers, or the family budgets of another country, had been taken as base. CHAPTER II METHOD OF THE ENQUIRY AND SUMMARY OF RESULTS Part I. — General The object of this enquiry is to find how much a worker would have to spend in order that his standard of living might be equivalent to that of a certain category of American employee. It is therefore necessary at the outset to discuss what is meant by the term " equivalent standard of living " and then to discuss whether it can be measured and, if so, how. The term "standard of living" or, as it has sometimes been called, " standard of comfort " is intended to cover the sum of the economic satisfactions or utilities which an individual (or a family) derives from the consumption of the goods and services which he is able to obtain with his income available during a certain period of time. Hence, the essence of the enquiry is to measure the "satisfactions" which the Detroit worker derives from his expenditure and the equivalent satisfactions to be obtained in certain European countries. There is, however, no direct means of measuring "satisfactions" in the same absolute sense in which bread is measured in pounds. In the case of a single individual, the only objective way of dealing with satisfactions of different magnitudes is to judge from his choices; if he prefers a pound of beef to a pound of mutton (costing the same price) it may be inferred that he enjoys or expects to enjoy more satisfaction from eating the former than the latter. But such a comparative measurement is not possible when the satisfactions of different individuals are to be compared, which is the essential object of this enquiry. It is not here a question of determining what it would cost an American worker to live in different European cities on the American standard; the workers in question are the nationals of the countries concerned: Swedes, Germans, Poles, etc. 8 INTERNATIONAL ENQUIRY INTO COSTS OF LIVING It follows from the above definition of the standard of living as a sum of satisfactions that different individuals, living in different countries, under different climates and with different customs and traditions, will be able to obtain the same amount of satisfaction (i.e. the same standard of living) by distributing their expenditure differently over the various commodities and services. The problem is somewhat similar to, though not identical with, that of finding the cost of an equivalent standard of living in one country over a series of years: a problem which arose acutely in certain countries during the war 1 . If beef rises in price more than mutton, people tend to buy more mutton and less beef and by shifting their expenditure tend to reduce to a minimum the effect of increased prices. The worker's standard of living might thus be maintained, although the " cost of living " as usually understood might have risen. In fact there is a correlation between prices and consumption. There exists everywhere a tendency towards buying more of the things which are relatively cheap and less of the things which are relatively dear. In the language of economics, expenditure tends, where possible, to be distributed over different items so that the "marginal utilities" of each "final dose" of expenditure are equal. But this is not the only criterion by which individuals distribute their expenditure: tastes, habits and customs play a part and these may cause them to tend to buy a thing which may be relatively dear rather than one which seems less dear. Moreover, the degree to which individuals are influenced by tastes is the more pronounced the larger the income available. It is therefore clear that the question cannot be answered by merely finding the prices of the various articles and services as given in the American budget, and then assuming that the European worker, to obtain an equivalent standard of living, should buy each article or each service in the same quantities as did the American worker. This would give (even were it possible to carry out) the cost to an American worker who was transferred to Europe and insisted on living exactly as he did at home. Needless 1 See e.g. Report of committee appointed to enquire into "the actual increase, since June 1914, in the cost of living to the working classes." London, 1918. Cd. 8980. M E T H O D O F T H E E N Q U I R Y A N D SUMMAKY O F R E S U L T S & to say, such a figure would be of little interest, even to this American worker, for within a week he would have begun to adapt himself to local conditions. It is within the group of foodstuffs (and to some extent in part of the miscellaneous group) that the influence of national customs plays the largest part and where redistribution of expenditure over the different items is most easily possible. Expenditure on fuel and light is to a large extent determined by climatic and atmospheric influences: clothing is partly subject to the same influences. Housing is a rather special case where the individual's choice is limited. The special problems raised by each of these groups are dealt with below. There is, however, one possible objection which may be raised to a procedure by which the habits and customs of each country have been taken into account; namely, that these reflect the existing standard of living of the workers in the different European countries. Assuming, for the sake of argument, that the standard of living in a European country is admittedly low, compared with the American, then the method adopted by the Office, it may be urged, gives a biased result, since the "equivalent standard of living" has been computed by taking account of a standard already lower than the one used as base. The available information about food consumption, for example, may show a low standard of living, because wages are low: these, it may be urged, should not be taken into account in fixing the cost of an equivalent (and ex hypothesi higher) standard of living, since if the wages in this country were higher the consumption habits would aller accordingly. Similarly, the prices obtained for a low standard country might be biased in so far as they may re^te to lower qualities and grades than those current for the same article in the country with a higher standard. To this it may be replied that, as will be seen by reference to the following paragraphs in which the exact methods adopted in each of the main groups of expenditure are described, "local conditions " have been taken into account in such a way as to obviate the above objections. As already indicated, the problem is essentially one of finding, for a worker of the type analysed in the Detroit sample, the level of prices in each of the European towns compared with that in Detroit, for all the commodities and services on which the 10 INTERNATIONAL ENQUIRY INTO COSTS OF LIVING income of a manual worker of the type considered is usually spent. This has been done for each of the main groups of expenditure (food, rent, clothing, etc.) and the resulting percentage applied to the equivalent expenditure in Detroit so as to obtain the expenditure for each group in the European town. The addition of these group totals gives the equivalent European expenditure. It follows from the discussion in the preceding pages that the problem of finding an equivalent standard of living is full of difficulties and the figure arrived at for each town can only be approximate. In fact all measures of this nature are approximate. In the U.S.A. there exist at least half-a-dozen index numbers which purport to indicate changes in the general level of (wholesale) prices. All differ from each other. In the case of international comparisons the approximate nature of the answer is due primarily to the inherent difficulty of measuring satisfactions quantitatively, but were this solved, the price-data available even after the most careful enquiry and with the advice and help of the most competent statisticians are not always sufficiently comparable. The exact qualities and grades are not always given in sufficient detail in the Detroit study, and in some cases corresponding qualities and grades were nonexistent in the European town. Even in the same town, identical housing accommodation may exist side by side, in the same street, but at very different rents, owing to the operation of rent restriction legislation. Hence, the answer has had to be given for most towns in the form of a lower limit and an upper limit, between which, it is considered, the figure most probably lies. Considerable efforts have been made by means of supplementary enquiries to reduce the difference between these limits where it appeared extreme and in no case do they now differ by more than about 10 per cent., i.e. about 5 per cent, above and below the mean of the two. Part IL — Details of Methods Adopted The first part of this chapter is entirely general and theoretical. It is intended to show that only approximate answers can be given and that in obtaining such answers certain data, METHOD OF THE ENQUIRY AND SUMMARY OF RESULTS 11 viz. the standard of living of the Detroit family, the European prices and habits of consumption, are an essential factor, whereas others, mainly the existing standards of living in Europe, must be eliminated from the data. The following pages contain first a brief description of what may be called the mechanism of the enquiry, i.e. the way in which the necessary information was obtained and collected, either by the collaboration of the national statistical authorities of the countries concerned or by consultation of published official documents. The methods applied to these data are then discussed in detail. BASIC INFORMATION AND COLLECTION OF EUKOPEAN DATA On the receipt of the information on the standard of living of a particular category of American worker it was transmitted to the various national authorities which had promised their collaboration in this enquiry. In view of the great detail given in this enquiry it was neither feasible nor necessary to ask for information in similar detail for each of the European cities. The results of the American enquiry were therefore carefully examined and adapted for the benefit of the European collaborating authorities which had agreed to provide comparable price data. This method of compilation and tabulation had to be modified in certain minor respects, and all the quantities had to be reduced from American measures to metric units and in some cases to British measures. A summary was prepared to bring out the most salient features and a copy of this special memorandum is given in Annex II. For the most important articles of clothing, as given in this annex, sample articles were obtained in representative Detroit shops, corresponding as closely as possible in quality and price to those shown in the Detroit enquiry. These samples were circulated to each of the cities covered and the prices given in the Appendix tables to each town report were obtained on the basis of these American sample articles. The particular difficulties met with in the case of certain price-groups are explained and discussed in the following pages under the respective headings. Information other than prices, i.e. data on consumption weights for food, fuel and light in the European towns, was obtained generally from official published material, but in some 12 INTERNATIONAL ENQUIRY INTO COSTS OF LIVING cases it was specially supplied or supplied in greater detail by the national statistical authorities. The sources used are given in each of the various town reports. After careful consideration of the problem, it was found impossible, on the basis of the material available, to devise any single method applicable to the whole of the family budget and it was necessary to consider each of the main groups of expenditure separately. Different methods had therefore to be applied to each of these groups and though these were not always exactly uniform throughout, the results obtained are considered to be fairly comparable. FOOD The expenditure on food is the most important of the different groups of items in the American budget amounting to 32.3 per cent, of the whole. Even this proportion is low compared with European countries where recent family budget enquiries indicate a much higher proportion for food expenditure (see Annex III for further comments on this point). The first task was to obtain comparative price-data from the different European towns. The list of foodstuffs supplied for Detroit was examined and an abbreviated list was circulated to all collaborators as shown in Annex II. This list set out first the principal articles and in a second list the less important articles. It was not considered necessary to obtain prices for all the minor articles on which often less than a dollar was spent during the year, and supplies of which, in some cases, are not generally available in Europe. In order to obtain comparable prices, the description of the grade and quality of the article was given where possible. In addition, the Bureau of Home Economics of the United States Department of Agriculture generously furnished, at the request of the International Labour Office, an analysis of each of the foodstuffs, showing its caloric value and its content in protein, calcium, phosphorus and iron (reproduced in Annex I). This supplementary information proved of great value in certain cases for obtaining comparable price data; it also was used in one or two cases (see pp. 16 and 17) for making alternative estimates. METHOD OF THE ENQUIRY AND SUMMARY OF RESULTS 13 In some cases, a range of prices was received for a particular foodstuff based on quotations from different shops, or based on various qualities and grades. In such cases, considerable care was exercised in selecting a truly representative price comparable with the Detroit data, and in a few instances the Detroit quotations for similar articles had to be grouped or combined so as to yield a figure comparable with that of the European town. It may be added that in all cases prices are based on quotations from a large number of shops (in some cases several hundreds) in the locality. The next task was to find the relative level of food prices in general in each European town compared with that in Detroit, and for this purpose the relative importance of each foodstuff had to be taken into account. The price data were selected for those articles for which information was available as to consumption in the European town (consumption data for each article in Detroit are available in the budget enquiry). For the purpose of computing this price level a double calculation was made. The prices in the American and in the European town were weighted first by the consumption as shown in the Detroit budget and, secondly, by the consumption as shown in the European town. The latter was available from official family budget studies, private enquiries, or special information supplied by the competent national statistical authorities. Thus, in both calculations, the unit prices for each foodstuff (and consequently the relative price of each foodstuff) in the American and the European town were identical. The only difference lies in the weight attached to the different foodstuffs. In order to explain the method more fully, an example of the table compiled for Copenhagen is given on page 14. Similar tables were compiled for each of the towns, but it has not been considered necessary to reproduce them in this study. Columns (1) and (2) give the quantities consumed of each article in Detroit and Copenhagen respectively, and columns (3) and (4) the average prices of each article in the same towns. Four products are then obtained, shown in columns (5) to (8). The ratio of prices in Copenhagen to that in Detroit is then found by dividing the total of column (6) by the total of column (5), and another ratio is found by dividing the total of column (8) by column (7). These ratios are 78.4 and 69.5 per cent, respectively. The average (geometric) of these two figures is 73.8. This percentage is then APPLICATION OF T H E M E T H O D TO T H E C O M P A R I S O N OF T H E COST O F F O O Quantities consumed per family of 3.27 units Foodstuffs (Detroit designation) Beef, fresh, roast Veal Pork, salt (bacon and ham) . . . Cooked meat (other t h a n ham'» . Fish, salt Milk, fresh Butter B u t t e r substitutes Cheese Lard Eggs , Tea Coffee Detroit Copenhagen Detroit (1) Kg. 17.4 22.5 7.4 30.2 24.7 7.6 7.9 1.8 507.0 30.0 11.6 7.3 22.1 55.0 87.0 236.1 50.9 88.6 268.3 2.3 14.8 (2) Kg. } 37.01 29.17 15.92 18.47 12.49 1 20.24 1.44 389.49 30.28 51.31 19.88 10.37 29.66 51.27 67.00 230.86 114.48 275.60 1.24 15.76 ..(3) Ore 321.7 273.1 276.5 221.3 246.7 258.4 236.1 228.6 51.8 413.8 186.7 278.9 134.9 247.6 39.5 67.5 75.0 53.6 20.5 603.0 322.5 Column Column Column Ratio II: Column Ratio I Copenhagen Co } ..(4) Ore 181 194 194 200 248 115 88 32 294 146 248 156 176 34 77 19 42 13 900 428 1 Totals Mince-meat. Prices per unit 6 0.784 5 8 = 0.695 7 Average (geometric) or 73.8 per cent, of D METHOD OF THE ENQUIRY AND SUMMARY OF RESULTS 15 applied to the Detroit food expenditure (expressed in Danish crowns at the current rate of exchange1) giving a total of 1,532 kroner. Practically expressed, these figures mean that an American worker moving to Copenhagen and living in the same way as in America would find his food expenditure reduced in the ratio of 100 (Detroit) to 78.4 (Copenhagen) and that a Danish worker moving to Detroit and living in the same way as in Denmark would find his expenditure increased in the ratio 100 (Detroit) to 69.5 (Copenhagen). The best or "ideal " measure in the words of Prof. Fisher is the geometric average of these two figures, which has been adopted2. It will readily be seen that the closer the standards of consumption in the two cities compared (one American and one European) the closer will be these two figures, and the more confidently can their average be accepted. Where consumption habits are fairly similar to American (e. g. Great Britain and the Irish Free State) the two terms aie fairly close, and the figure may be accepted as a reasonable measure; but where they differ widely (e. g. Poland and Finland) the two terms differ considerably, and the average of the two, though still the best approximation, cannot be received with the same confidence. This is merely an illustration of the fact that the more widely different the standards of consumption of two countries are, the more difficult and vague are international comparisons. It may be added that though the method adopted does not require the computation of price-ratios for each individual foodstuff, this was in fact done in many cases, in order to see if a comparable quality or grade had really been taken; 1 The currency equivalents and other conversions (weights and measures) are given in Annex V. 2 It is not necessary here to give a full account of the principles of this method. Its theoretical justification and practical advantages have been expounded in great detail by Prof. Irving Fisher in his treatise The Making of Index Numbers (Boston, Mass.). The formula based on this method is indeed called by him " the ideal formula " for measuring comparative price levels, since it possesses certain qualities which he considers an index number should possess. This book gives references to all the eminent economists and statisticians who have recommended or applied this index number. Since the publication of the last edition of this volume the principles on which this formula is based have been approved by Dr. Haberler in Der Sinn der Indexzahlen (Vienna), and by Mr. Keynes in A Treatise on Money (London). While there is no " absolute truth" in the matter of price comparisons whether in time, or in space, the formula adopted appears to satisfy certain minimum conditions without, however, reaching a result which no formula can yield. 16 INTERNATIONAL ENQUIRY INTO COSTS OF LIVING if thought necessary, supplementary enquiries were made to see if it were possible to obtain more representative figures. The question as to whether the use of the existing standards of consumption has biased the results by reflecting the particular standard yielded by present incomes has been thoroughly examined. In the first place, various budgets were taken, when such existed, for a European town. Such are available e. g. in the case of Germany, and it was found (see report for Berlin) that the use of weights based on workers' budgets and weights based on high paid officials' budgets gave similar results. It is hoped to examine this interesting problem in detail in a subsequent report. One point which caused some difficulty should be mentioned here. The Detroit prices per unit are generally averages obtained by dividing the expenditure on a particular foodstuff by the quantity bought, while the European prices are actual average quotations based on shopkeepers' or market prices. The Office realises that this may introduce an element of approximation in the result, but it is believed that the averages shown for each town are as accurate as the data warrant and may be looked upon as fairly reliable. The national collaborators have generally approved the methods adopted by the Office as the best possible solution. In two cases, however, supplementary suggestions have been made. The German statistical authorities have developed a method which is presented in table II of the Appendix to the town reports for Frankfurt and Berlin, and which yields a slightly different result from that obtained by the Office's method. The essential feature of this method is to take the same 29 articles which appear in the list of common consumption used for the Office calculation and to find the cost of the American quantities in the two German towns, allowing, however, at various points for differences in the habits of consumption. It will be seen from the table mentioned that the substitution of certain German articles for certain American foodstuffs was considered as necessary mostly in such cases where prices in Germany seemed to be somewhat out of harmony with the American prices. No definite criterion for such substitutions could, however, be established in such a way as to be applicable generally to all the cities considered in this enquiry. Though METHOD OF THE ENQUIRY AND SUMMARY OF RESULTS 17 the Office has much appreciated the suggestion of the German authorities, it feels that the application of this method to other countries would give too much room to arbitrary decisions and the results for the various European towns might consequently have been less comparable. The other proposal was made by the Swedish Social Board and a memorandum explaining this method is attached to the report for Stockholm as Appendix B. It will be seen that the result obtained by the Swedish statistical authorities is somewhat different from that of the Office method. The main feature of this method consists in dividing the total expenditure on food into two parts, the first containing some articles of common consumption, and the second the remainder of the food-budget. It will be seen, however, that this method also leaves much room for arbitrary decisions as regards the division of the food budget into two parts and the method seems to lose in accuracy the more the percentages representing the expenditure of the two parts of the budget are diflerent in the two countries under consideration. While it has not been possible to apply either of these methods throughout, the results obtained by these methods have been adopted for these two towns as representing the "lower limit" of equivalent food expenditure. HOUSING This section of the budget has presented some special difficulties. It is indeed very difficult to decide in a general way which one of two similar dwellings situated in different localities is preferable to the other, and hence it is even more difficult to decide what criterion should be chosen to establish the equivalence of dwellings in different countries. In addition to this general difficulty, there are particular circumstances, such as rent restriction legislation, which is still in force in some countries, which result in the fact that rents for dwellings practically equivalent, if not identical, may be quite diflerent according as they happen to be subject or not to legal restriction. The Detroit budget enquiry contains a very full description of the dwellings (houses, flats and apartments) occupied by the Detroit workers, from which it appears that the housing accommodation of these workers has a strong tendency towards a given type (see for details Annex I). This "predominant t y p e " may be described as a detached house occupied exclusively 2 ' 18 INTERNATIONAL ENQUIRY INTO COSTS OF LIVING by the family, and equipped with electricity, gas, central heating and a bathroom. In most of the European towns included in this enquiry houses of such a type rarely exist. Moreover, no indications were available as to the average size of the rooms occupied by the Detroit workers and hence the number of rooms is not in itself a completely satisfactory measure. In certain European towns, the average size of room is said to be considerably larger than in the United States. Particular difficulty was also experienced with regard to bathrooms, since in many European towns it is not usual to find bathrooms installed in working class dwellings. Similar difficulties were met with regarding the other details of the American dwelling. In these circumstances, the Office originally asked its collaborators to supply a figure for each town representing a rent for a dwelling which they considered as equivalent to the American type of house, as described in the questionnaire sent out to the various statistical authorities (see Annex II). Upon receipt of the replies it was found, however, that the interpretation given to the equivalence of housing had been very different in the various towns, and the question was therefore laid before the Conference of Statisticians held at Geneva in May 1931 (see above, p. 4). After a thorough discussion of the question, it was decided that as far as possible two figures for rent should be supplied. The first, called the "lowerlimit", was to refer to a dwelling, as it is actually occupied by the working classes in the respective towns. This house or flal was to have four to five rooms, and if working men generally do not occupy dwellings of this size the rent was to refer to a house situated in a working class district, and of the same quality (according to local standards) as the smaller dwellings usually occupied by qualified working men. The second figure, called the "upper limit", was to refer to an apartment or house which should be identical as far as possible in every detail with the American type of dwelling. It will be seen that these two figures imply a different interpretation of what may be considered to be an equivalent dwelling. In the case of the "lower limit" the theory underlying the choice is that the number of rooms occupied by a family of given size musi be considered as an expression of its standard of living, whereas the details of the equipment depend mainly on habits and tastes. In this interpretation, the presence or METHOD OF THE ENQUIRY AND SUMMARY OF RESULTS 19 absence of a bathroom, for instance, is regarded as being a matter of custom. An interesting confirmation of this assumption is to be found (e. g.) in the report prepared by the Belgian Ministry of Labour on the actual housing accommodation of Antwerp workers (see Appendix B to the town report of Antwerp below, pp. 105-107), where it is stated that Belgian workers would not be prepared to spend any extra money for the advantage of possessing a bathroom in their homes. This situation applies probably to many other cities, and workers, if they were allowed some extra income for the purpose of having dwellings equipped with bathrooms, would not occupy such dwellings, but would prefer to spend these sums in a different way. The theory underlying the "upper limit" is evidently quite different. Equivalence is interpreted as identity in this case, and the assumption is that a bathroom will always yield the same amount of satisfaction, whether it is a usual part of the equipment of the working class house or not. The consequence is that the rents obtained for the "upper limit " generally do not refer to dwellings as usually occupied by working men in the respective towns, but that the buildings are mostly inhabited by families of a somewhat higher social class. It has not been possible in all cases to obtain these alternative figures. For some towns, the figures used in the calculations approximate to the "upper limit " whilst for other towns they represent only the "lower limit ". As a further example the valuable memorandum on housing conditions in Stockholm (see report for Stockholm, Appendix C) may be cited from which the Swedish Social Board concludes that the "lower limit " would be higher than the "upper limit " since dwellings situated in the working class district of Stockholm containing apartmenls of four to five rooms simply do not exist and that for this reason recourse would have to be had to houses of a much superior type. It is realised that this introduces a certain degree of incomparability into the results obtained for this section of the budget, but the Office has endeavoured to make clear in each case as far as possible, where only one rent figure is given, whether it represents rather the upper or the lower limit. F U E L AND LIGHT The expenditure on this group of items in different European countries furnishes a good example of the predominance of 20 INTERNATIONAL ENQUIRY INTO COSTS OF LIVING circumstances other than the standard of living. Though the quantities of fuel and light consumed by typical families vary with income in every given country, the indications are that this is due rather to the size of the dwelling and of the family than directly to the increase of income. It thus appears that climate is the most important factor to be taken into account in deciding what expenditure must be regarded as equivalent in the various European towns. The statistics of mean temperatures for Detroit seem to indicate that its climate is colder than the European cities, and very much colder than cities such as Barcelona and Marseilles. Hence the calculations have not been based exclusively on the quantities of fuel (coal, coke, wood, etc.), gas or electricity as consumed in Detroit; and in the majority of cases the actual consumption usual in the European towns has been used. Unfortunately, however, comparable information. was not always available on this consumption. In some cases, information on quantities has either been found in published official sources, or received from the national statistical authorities, but in others different methods had to be applied. Thus, in the case of Ireland, where the percentage spent on fuel and light as shown by family budget enquiries seems to be fairly independent of income, this percentage was adopted to represent an equivalent expenditure for this group; in Germany the results of special investigations have shown that the expenditure of fuel and light per room was practically constant, and the equivalent expenditure for 4.5 rooms was therefore adopted; for Helsinki, allowance had to be made for the predominant use of wood instead of coal. Wherever possible, the results obtained were checked by reference to the usual annual charge for heating in apartments equipped with central heating system, and the results have been generally approved by the competent statistical authorities as representing a reasonable expenditure for the category of worker under consideration. It is clear, however, from the data given, that there have been, in certain cases, some differences of method. For. example, the relatively high figures shown for Manchester as compared with other European towns, are evidently due, in the main, to the larger quantities taken for the purpose of the calculations relating to Manchester, rather than to differences in prices. The methods adopted in each case are fully explained in the separate reports. METHOD OF THE ENQUIRY AND SUMMARY OF RESULTS 21 CLOTHING The price-data for this group were based on actual samples of clothing as worn by the Detroit families in 1929 and 1930. These samples were circulated to each city and quotations were obtained from representative shops in the locality. In some cases, however, no article similar to the sample could be found in the European shops, and hence no quotation for that particular item could be obtained; in others, recourse had to be had to prices relating to articles of clothing corresponding in use to the American samples; in all cases, considerable difficulty was met, especially for women's and children's clothes, in obtaining prices based on the quality of the sample, without giving too much weight to the cut, which was frequently different from that of usual European clothes. Furthermore, in many European countries children's clothes are usually made at home, and hence the prices obtained for ready-made children's wear were often too high and quite out of harmony with the prices of adults' apparel. To allow for the second difficulty, two methods have been applied to the European clothing prices for each town. The first method consisted in finding the cost of the American quantities (given in the section "Clothing" in Annex II) of all articles for which prices were available, separately for men, for women and for children. From the totals thus obtained, the price ratios for these three groups are calculated, and these ratios then applied to the corresponding Detroit totals. The procedure is illustrated in the following example for Copenhagen : m Men's clothing Women's clothing Children's clothing Cost oí representative clothing articles for which prices are available (using Detroit Price ratios quantities) (Detroit •= 100) at Detroit at Copenhagen Kr. Kr. 175.2 158.9 213.1 178.3 148.9 240.9 101.7 93.7 113.0 Total clothing expenditure Detroit Copenhagen Kr. Kr. Men's clothing Women's clothing Children's clothing Total expenditure of family . . - 237.2 220.8 327.8 785.8 241.3 207.0 370.5 818.8 22 INTERNATIONAL ENQUIRY INTO COSTS OF LIVING The second method consisted in combining the two ratios found above for men's and women's clothing only and applying this ratio to the total family expenditure. This gives a ratio of 97.9 per cent, and an expenditure of 770 kroner. The only difference between these two methods is the omission of children's clothes from the second ratio. The choice between the two results was left to the national statistical authorities which decided according to the habits in regard to children's clothing in the respective towns. It is realised that, whereas the prices strictly represent the American standard of living, the use of the American quantities in the computations does not allow for differences in national customs, nor for differences in the climate as between American and the European towns. But, in order to apply to clothing a method similar to that used for food, it would have been necessary to have data on the average quantities of clothes bought in each European town, and special Detroit price quotations based on samples of the usual European clothes. The differences in the kind and quality of specified articles of clothing appear to be subject to such variation that a special set of samples for each European town should have been sent to Detroit in order to obtain results for clothing of a similar degree of reliability as those reached for food. This alternative had therefore to be disregarded. MEDICAL EXPENSES The Detroit budget enquiry shows that, of a yearly family expenditure of $64.73, $38.17 were spent for the services of physicians and surgeons, and $10.74 for dentists' services. No detailed information on the kind of these services was available and it was assumed for the purposes of the enquiry that the first of these two items was equivalent to the cost of 9 % visits to the physician or surgeon at $2 each, and of 6x/ä "housecalls " of the physician at $3 each; and that the second sum was equivalent to the cost of about 10 visits to the dentist for an extraction or an ordinary filling (each costing $1). The usual method was applied to this group of expenses, viz. the cost of these representative medical services in each European town was found and the ratio in which they stand to their cost in Detroit was computed. This ratio is then METHOD OF THE ENQUIRY AND SUMMARY OF RESULTS 23 applied to the total expenditure shown for the Detroit family* This assumes that the average state of health, or frequency of sickness, was the same in all the towns included. There is room for doubting the justification of this assumption: in fact the workers included in the Detroit enquiry were in fairly full employment throughout the year 1929, which precluded long periods of absence on account of sickness for the head of the family. But there was no means of estimating how much of the medical expenses was incurred in respect of the different members of the family, and the Office method seemed to be the only possible one in the circumstances. Compulsory insurance against sickness, for the whole family or for the head of the family, is in force in many of the European countries. The method of dealing with the payments made under these schemes is dealt with below in the section on insurance. MISCELLANEOUS EXPENSES This group of expenditure proved perhaps the most difficult to treat of all the groups. It consists of all the items not covered by the previous groups (with the exception of insurance dealt with in the following section) and includes, in addition to certain necessary items such as daily transport, household utensils, and cleaning supplies, all the various items, such as educational expenses, holiday expenses, amusements, newspapers, subscriptions, etc., which, though not strictly necessary to maintain a healthy and efficient life for the worker and his children, are generally regarded as highly desirable. It is in this group that individual idiosyncrasies, personal preferences, and differing desires have their freest play. In this group also appear all the expenditures left over, so to speak, after the usual necessaries and comforts have been provided for. For this reason, the proportion spent on this group in family budget studies has been sometimes regarded as an indication of the standard of living; workers with a low standard having little available for the items in this group after their necessary expenses have been met. The proportion shown in the Detroit sample as spent on these remaining items is about 20 per cent. There are many reasons for the difficulties in dealing with the items in this group. In the first place the averages are based 24 INTERNATIONAL ENQUIRY INTO COSTS OF LIVING on 100 families only. In a group of expenses, where wishes and whims, fancies and frivolities, frailties and follies, play such a large part, the average amount spent on, or the average quantities bought of, a particular article or service is liable to be subject to much greater fluctuations of sampling than in the case of foodstuffs, fuel and light items, etc., where the expenditure on the different items tends to vary much less widely about the average. Again, the quantities are not always given in the Detroit study; indeed, many of the expenditure items (such as holidays) cannot be expressed in the form of quantity bought and prices per unit. The Office considered two methods for dealing with this group. The first method was to allow for the whole of this group by a percentage addition to the total obtained for all the preceding sections, thus allowing the European worker the same percentage expenditure as the Detroit worker to do with as he liked, so to speak. This would mean, in fact, that the "priceratio " for this group was assumed to be the same as that found for the total of the preceding groups — an assumption not necessarily justified. The second was to apply the usual price ratio method. This involved obtaining prices for as many comparable articles and services as possible and was open to the objection that, as indicated above, unit prices were not available in the American budget in many cases. It was finally decided to select all those items for which a definite unit price seemed possible to obtain (e.g. week-day paper, Sunday paper, tobacco and cigarettes, postage, telephone calls, cinema visits, hair cuts, daily transport, laundry charges, certain linen and household furnishings, etc.) and to obtain a price ratio between Detroit and the European town by the use of Detroit quantities. Although this method gives a figure subject to a much larger margin of error than that for the groups already dealt with, the Office considers that the results obtained have been fairly satisfactory and it gives results fairly comparable with those of the firs; method. The percentage available for the European worker for expenditure on this miscellaneous group was found by the second method not to vary very much from the Detroit percentage. In practically every case it varies between 18 and 24 per cent. ; these variations do not seem unreasonable in view of the approximate nature of the calcula- METHOD OF THE ENQUIRY AND SUMMARY OF RESULTS 25 tion and the difficulty of comparing items, many of which are of such a dissimilar nature. Certain modifications in the total arrived at for this group have had to be made on account of certain social insurance schemes. This is dealt with in the following section. INSURANCE A peculiar feature of the Detroit budgets is that though the worker suffered no, or practically no, unemployment during the year, he made no savings, apart from insurance premiums; in fact, on the average, the 100 families showed a small deficit for the year. The average premium of about 60 dollars formed about 3.4 per cent, of his total expenditure and represented a premium of about 3 per cent, on a sum assured of 2,076 dollars. The first step in the procedure adopted by the Office was to compute a premium for a corresponding sum in each European city. As the sum of 2,076 dollars represents about 1.2 times the worker's annual expenditure, the premium might have been computed (at the same ratio of 3 per cent.) on 1.2 times the total expenditure found for each of the European cities. In fact, the "purchasing power equivalent" of 2,076 dollars was found in each European town on the basis of the price ratio found for all the other groups, and the premium rate was applied to this amount. This method naturally gives an identical result. Having reached this stage in the calculation, a very important problem arose, viz. that of social insurance. Apart from the life insurance mentioned above, the average Detroit worker, as shown by the 100 families investigated, made no provision for loss of earnings during possible sickness, invalidity, unemployment; nor did any statutory provision exist by which the employee, the employer, or the community should provide for the risk of loss of earnings in these respects, and for the old age of himself and his wife, and the possible widowhood of his wife or orphanhood of his children. Apart from accident compensation, no compulsory social insurance of any kind exists for the Detroit employee. In nearly every European town provisions to meet some or all of these contingencies exist, paid for partly by the employer, or partly by the employer 26 INTERNATIONAL ENQUIRY INTO COSTS OF LIVING and the State. In one or two of the towns covered, such provision is on a generous scale. Since no compulsory payments for social insurance are made by the Detroit worker, there was no single item against which could be set off the payments made in respect of the European worker. The usual price ratio method was not applicable, and in fact would not have been applicable had social insurance payments figured in the Detroit expenditure, since it is impossible to obtain unit-prices for comparable services. A complete and exhaustive treatment of this subject would have involved an actuarial evaluation of the annual value to the worker of the benefits he derives, or may derive in the event of certain contingencies, from social insurance schemes; with separate evaluations of the benefits derived from the contributions of the employer and from those of the community 1 . Such a course was not possible in the time and with the resources available for this enquiry and would not have been justified in view of their relatively small amount in most of the European towns in relation to the total estimated expenditure — a total which in itself is often approximate and a range between a lower and an upper limit. For example, where it was possible to estimate the total expenditure only with a range of +_ 5 per cent, of the total, it seems unnecessary to perform elaborate calculations to compute the benefit to the workers of social insurance contributions which rarely represent more than one or two per cent of the total. The American worker being under no legal obligation to make provision for those contingencies covered in Europe by social insurances, it is reasonable to assume that he should be enabled to make these provisions voluntarily out of his wage, and that the compulsory contributions made in respect of the worker in Europe by his employer and by the State or community might be regarded as a "free policy" presented to the worker, and therefore be deducted from the totals found by the methods outlined in the preceding sections; health insurance payments from the group medical expenses, old-age and invalidity pension payments from the life insurance group and 1 A special committee on social charges appointed by the International Labour Office reported after careful examination and consultation with national experts that "on the basis of the information at present available from the different countries, it was impossible to make any international comparisons of social charges." METHOD OF THE ENQUIRY AND SUMMARY OF RESULTS 27 unemployment insurance payments from the miscellaneous group. The resulting total gives the expenditure of the worker himself: the employers' contributions only are then added, giving a second total, viz. the total expenditure corresponding to that of the Detroit employer. They are thus shown as part of the cost of labour to the employer, but not as a cost of living to the workman. TAXATION The amount of 1,720 dollars was below the exemption limit for direct taxation on married workers in the United States, whereas in all the European cities, with two exceptions, the total expenditure computed was above the exemption limit. The amount of direct taxation (almost entirely income tax) legally due has been computed in all cases, from the scales in force as supplied by the competent authorities and based on the total obtained for all other expenditure, except payments for insurance, which are generally allowed as an abatement for income tax purposes. Account was also taken of the allowances for married men and children. The sum thus calculated was added to the total expenditure on the assumption that taxation is an unavoidable expenditure imposed on the workers. This course has been generally approved by the collaborating statistical authorities. The effects of new or increased taxation are frequently minimised by the restriction of expenditure on other items, but as the problem in this case was to find an equivalent of the American standard of living, it was felt that an extra sum should be provided to enable the European worker to meet this burden from which the Detroit employee in question was exempt. This assumes that the European worker does not obtain in exchange for this expenditure more than the Detroit employee gets for nothing. Though there is a certain degree of interdependence between taxation and State contributions to social insurance, it was not found possible to allow for this fact. The level of taxation also depends partly on the amount and distribution of the national income; and if the computed figures of expenditure in the different towns were reflected in the general level of incomes, the level of taxation might be modified. 28 INTERNATIONAL ENQUIRY INTO COSTS OF LIVING Pari III. — Summary of Results The amounts found for each group of expenditure are brought together at the end of each report. Where the total for any group is expressed in the form of a range, all the lower limits and all the upper limits are added together. The resulting totals have a greater range than is justified by the data, since, by a well-known theorem of probability, the total (or average) of a series of items is subject to a less range than the sum of the successive ranges, but it was thought advisable for the purposes of this volume to add up all the minima and all the maxima. It is hoped, however, in a subsequent publication, to subject these data to a more detailed analysis, in which the degree of precision of the separate sub-groups and of the general total and the proportionate distribution of expenditure to the different groups will be studied 1 . This enquiry was initiated at a time when prices were falling in nearly every European country and in the United States. Had the enquiry been undertaken simultaneously in each city this problem would not have been serious. It was not found possible for the national collaborators to commence and conclude their investigations within the same period and the time taken for the circulation of the boxes of clothing samples throughout the different European countries was necessarily protracted. In each case, however, the Office has indicated in the first summary table the date to which the calculations relate. An attempt was then made to bring all the totals to a uniform data by utilising the available information as to the changes in the cost of living for each of the different groups of expenditure. For this purpose January 1931 was selected. In many cases, however, such information as to changes in prices is available only for the country as a whole, and for groups of items differing somewhat from those used in the calculations. They do not therefore necessarily represent the changes between the date of the enquiry and January 1931 for the particular category of worker and the particular European city, but it was felt that figures so computed would be of greater comparative value than the original totals relating to varying dates. A second estimate has therefore been added 1 See Annex IV. METHOD OF THE ENQUIRY AND SUMMARY OF RESULTS 29 giving the approximate totals for the month of January 1931, together with the index numbers used. A similar computation was made for the Detroit expenditure using the figures given in the Monthly Labour Review for February 1931, showing the changes in the cost of living at Detroit at December 1928, June 1929, December 1929 and December 1930. The result of applying the changes shown by these figures to the figures of the Detroit budget (for each of the six groups of expenditure) is to indicate that the level of prices was in January 1931 about 9.8 per cent, lower than for the average of 1929. This would give an equivalent expenditure of about $1,550 for Detroit. Finally, in order to bring out one of the aspects of the present enquiry, viz. an international comparison of the cost of living, the computed totals for each town for January 1931 (table I, p. 30) have been converted into dollars at the rate of exchange ruling in January 1931 and expressed as a percentage of the corresponding American figure (table II, p. 31). All the figures in these tables are subject to the reserves set out in the Report and summarised on the pages following these tables. The tables give a summary of the general results of the present enquiry. It will be seen from table II that the results show certain differences in the relative price-level in the various towns, differences due to the fact that the data furnished by the different statistical offices are sometimes not comparable, or to differences in the method of calculation, or to real differences in the situation in different towns. Without attempting to explain every case in which such differences are noticeable, the following observations give some examples of the reasons which may have contributed to produce them. As regards food, the method has been uniform throughout with two exceptions: the "lower limits " for the two German towns and for Stockholm have been obtained by special methods proposed by the German and Swedish statistical authorities (see pp. 16-17). It is possible that the quality of the articles generally taken into account by the national collaborators has not always been exactly the same. Moreover, the examination of the data has shown that differences are due to organisation and methods of sale in the retail markets and to the habits of consumption of the different towns, which justify the differences in prices. However, it may be admitted that the results of the TABLE I.—AMOUNTS THAT WOULD HAVE TO BE SPENT BY WORKERS IN CERTA IN ORDER TO OBTAIN A STANDARD OF LIVING APPROXIMATELY EQUIVALENT TO TH IN DETROIT WHOSE EXPENDITURE IN 1 9 2 9 WAS ABOUT $ 1 , 7 2 0 (EQUIVALENT (Absolute figures in national currency) Othe Town and currency Food (1) (2) Housing Fuel and light Clothing (3) (4) (5) 100 Detroit1 . $ 468 350 195 180 Berlin . . RM. 1,625-1,690 1,020-1,380 660 Frankfort RM. 1,805-1,900 1,020-1,380 180 660 Copenhagen K r . 240-265 800-1,200 1,420 720 Stockholm K r . 1,340-1,620 1,500 195 795 Helsinki . Mk. 13,500 2,410 11,850 Paris. . . F r . 4,400-7,000 1,755 6,890 11,860 Marseilles. F r . 3,800-6,000 1,305 5,325 Antwerp . a F r . 10,885 4,380-6,500 1,075 5,325 R o t t e r d a m 3 Fl. 390-500 111 12,785 Manchester £ 31.2-33.8 18.25-21.05 6,125 977 292 Cork . . £ 35.0 20.75 Warsaw . Zl. 79.9-85.6 1,585 27.3 605 91.65 Barcelona *Ptas. 960 39.4 500 Istanbul . £ T . 2,255 300 1,350 125 2,515 1,225 638 470 Total lor food, housing, fuel and light, and clothing (6) Medical expenses (7) 61 1,113 3,485-3,910 1RS 3,665-4,120 185 3,180-3,605 105 3,830-4,110 145 1,810 34,650 670 1 23,340-25,940 670 1 21,315-23,515 750 1 24,365-26,485 58 1,770-1,880 4.93 156.65-167.75 8.2 186.8 275 5,795 215 5,200 43 1,533 1 Including workers' social insurance contributions, but excluding those of employers and of the ' The figures for Manchester given in columns 7, 8 and 9 were not available in detail when5 the Fren of the figures now given has therefore been published in the French text. * September 1930. Including TABLE II. — INDEX NUMBERS OF AMOUNTS THAT WOULD HAVE TO BE SPENT B IN JANUARY 1931 IN ORDER TO OBTAIN A STANDARD OF LIVING APPROXIMATEL WORKING-CLASS FAMILY IN DETROIT WHOSE EXPENDITURE IN 1 9 2 9 WAS ABOU IN JANUARY 1931) l (Base: Detroit = 100) Town and currency Food (1) (2) (3) Detroit . . $ Berlin . . RM. Frankfort. RM. Copenhagen K r . Stockholm K r . Helsinki .. Mk. Paris. . . Fr. Marseilles. Fr. Antwerp . Fr. Rotterdam Fl. Manchester £ Cork . . £ "Warsaw . Zl. Barcelona. P t a s . Istanbul . £ T . 100 83-86 92-97 81 77-93 64 99 91 76 84 83-89 95 54 58 64 100 69-94 69-94 61-92 115 97 49-78 43-67 35-52 45-57 43-47 49 51 29 40 ) See notes to table I, Housing Fuel and light (4) 100 43 64-71 43 52 61 69 51 30 45 89-102 101 68 54 59 Clothing T o t a l tor food, housing, fuel a n d light, and clothing O Medical expenses (5) (6) (7) 100 81 81 99 109 89 107 107 87 60 68 98 77 67 113 100 75-84 78-88 77-87 92-99 79 82-91 75-83 61-66 64-68 69-73 82 58 50 65 100 72 72 46 64 75 43 43 34 38 39 66 51 39 33 32 INTERNATIONAL ENQUIRY INTO COSTS OF LIVING comparisons for the costs of food are relatively satisfactory compared with those for other groups in the budget. The special difficulties raised by comparisons of rent have been noted on pages 17-19. It should be emphasised, however, t h a t where one figure only is given in column 3 (table I) it is sometimes the "lower limit " (Barcelona and Istanbul) and sometimes the " upper limit " (Stockholm, Cork, Warsaw). Also, the two figures given for Manchester do not refer to the two limits described on pages 18-19, but to the range within which the rent representing the "upper limit " must lie (see p. 116, note). It must be also emphasised that the national collaborators have not always followed exactly the same principles in selecting their data. Thus, the "lower limit " given for Berlin and Frankfort refers to a dwelling situated in a simple middleclass residential district while other "lower limits " refer to districts inhabited predominantly by the working-class (see p. 41). Finally, it is obvious that the cost of housing tends to be relatively higher in those towns where the size of the dwelling taken as a basis for the enquiry exceeds the usual size of workmen's dwellings, than in the towns where this is not the case. As regards the cost of fuel and light, the methods of compilation have not always been uniform. While in the majority of cases various data concerning local consumption have been used for the calculations, other methods have been adopted, in particular for Manchester (see pp. 20 and 116-117), which explains to a large extent why the indexes are somewhat high for this town. For computing the cost of clothing, the use of samples of articles of clothing has certainly contributed to reduce the possibility of differences in the basic data. But in view of the fact that there is a considerable difference in the style of European and American clothing, which necessitated in some cases rather arbitrary comparisons, it is possible that the data do not always apply to the same qualities. Moreover, the differences between the indexes in the different towns may also be due to customs duties on textile goods and articles of clothing, to the intensity of competition, and to the more or less favourable situation of certain towns in relation to the great centres of textile production. In certain cases medical expenses are represented solely by workmen's contributions to social insurance; in some cases, they METHOD OF THE ENQUIRY AND SUMMARY OF RESULTS 33 are based on the price of medical services and in others, both are taken into account, according as the system of compulsory insurance against sickness covers the expenses of the family wholly or partially, or does not exist at all. The amount of the expenditure for life insurance includes workmen's contributions to the old-age and invalidity insurance schemes which exist in certain countries (see pp. 25-27). The computation of the group "miscellaneous expenses" proved very difficult owing to the great difference in the composition of this group, not only between one country and one town and another but also between different families in the same locality. It was therefore necessary to take into account a rather limited number of prices for computing this group. As a result, only a part of the expenses in this group (varying irom one-quarter to one-third) has been computed by the aid of these unit-prices, whilst the remainder of the miscellaneous group was estimated by using the price-ratio obtained for the articles considered. It must be noted, however, that the sums given in the table include the workmen's contributions to unemployment insurance (see p. 26). It is necessary to emphasise, however, the reservations and limitations to which the figures are subject and to point out the conclusions that should not be drawn and the comparisons that should not be made. First, the results are obviously not of the same degree of precision for all the towns. Where conditions in general or particular characteristics differ very considerably from those in Detroit the results are less reliable than in those towns where conditions are more similar. There is no doubt that if more complete information had been available for certain cities as to national habits and customs (as shown by family budget enquiries), more satisfactory results might have been obtained; but even if recent family budget enquiries had been available (and the International Labour Office had no power to hold or to arrange for the holding of such enquiries), the inherent difficulty of comparing countries with fundamental differences in living conditions would not have been overcome. Again, the enquiry took place at perhaps the most unfortunate moment in recent years. When the Office undertook to carry out this enquiry in 1929, it could not foresee the marked fall in prices which took place in 1930 and 1931, and 3 34 INTERNATIONAL ENQUIRY INTO COSTS OF LIVING had prices been mo:;e stable throughout this period the results would no doubt have been more valuable. It was materially impossible to arrange that the enquiry should relate to an identical date in each town. The Office endeavoured to allow for these differences in date by bringing all the original calculations up to a uniform date, namely, January 1931, but these corrections were necessarily approximate (see pp. 28-29). Since that date prices have continued to fall in most of the towns and at uneven rates (in some cases by over 10 per cent., in others by only 1 or 2 per cent.). In addition, the abandoning of the gold standard since the completion of the enquiry by several of the countries covered upsets all comparisons in terms of a common currency. It is therefore obvious that the results published in the study and relating to January 1931 are no longer applicable. Moreover, the figures are based on a particular category of worker living in a particular town in 1929 and having a specific and definite income. In consequence, the ratios between the incomes calculated for each town on the one hand and for Detroit on the other represent the index numbers of the cost of living for this single income level only; different data and a different procedure would have to have been used in order to obtain index numbers having a wider scope, and in that case different results would probably have been reached. Further, the results would have been different if a European budget had been taken as basis. The figures therefore represent nothing but comparisons between each of the European towns and Detroit, with the latter taken as base. Further, the figures of total expenditure in national currencies shown in the various town reports and in table 1 are not to be considered as corresponding to any actual level of wages in the different European towns. In fact, the computation of these European expenditure figures is only an intermediate step in the Office's method, leading up to the chief object of the enquiry, which was to find international cost-of-living ratios at a certain income level. That this level happens to lie above the usual level of expenditure of industrial workers in most European towns arises merely from the particular request which suggested the enquiry. It follows that the results cannot be used for the comparison of real wages in general. Investigations of this kind if carried out in times of stable METHOD OF THE ENQUIRY AND SUMMARY OF RESULTS 35 prices could be of interest and value to a firm or organisation wishing to correlate the wages of its employees in different countries; but the general level of wages does not depend only, or even primarily, on the relative cost of living, and even if it did there is no reason why figures based on a particular Detroit level should be considered normal. Many other factors, such as the productivity of the worker, the degree of mechanisation, the organisation of the labour market, the efficiency of management, the supply of capital, the richness of natural resources, the level of the national wealth and national income, etc., also exert an influence on the level of wages in any given country, town, or enterprise. Nowhere in the report on the enquiry is it suggested that these figures, even with all the qualifications and reservations to be attached to their use, are any indication of the general level of wages for this category of worker. They show merely the estimated cost of maintaining in January 1931 a standard of living approximately equivalent to that enjoyed by a certain category of Detroit worker with a family of a certain size and composition, which spent on an average a certain number of dollars during 1929. Nothing more is claimed in the report than to give an approximate answer to this question. REPORTS ON THE DIFFERENT CITIES BERLIN AND FRANKFORT ON THE MAIN (Germany) The data were supplied by the Statistisches Reichsamt and valuable suggestions were made during their elaboration by this Office. FOOD The prices supplied relate to November 1930. Two sets of consumption weights for 29 articles, accounting for 70.9 per cent, of the total expenditure on food in Detroit, and for 74.1 or 68.5 per cent, of the total food expenditure of workers or officials in Germany respectively, were obtained from the recent enquiry into workers' and officials' food budgets in Germany (1927-1928) i. The figures for prices and weights are given in the Appendix, table I. It was found that the result of the comparison is practically the same, whether the average workers' (earning RM. 3,325.12 a year) or the officials' (earning RM. 9,767.51 a year) food consumption is taken as a system of weights. The cost ratios obtained are as follows: Ratio of cost of food in Berlin and Frankfort to Detroit, based on 29 foodstuffs (Detroit=100) : I. Using Detroit weights: (a) Berlin 82.3 per cent. (b) Frankfort 93.5 „ „ II. Using German weights (workers' average income class): (a) Berlin 67.6 „ (b) Frankfort 75.1 „ III. Using German weights (officials' in come class) : (a) Berlin 69.8 „ (b) Frankfort 77.1 „ IV. Geometric average of I and II: (a) Berlin 74.6 ,. (b) Frankfort 83.8 „ V. Geometric average of I and III: (a) Berlin 75.8 „ (b) Frankfort 84.9 „ The results of using workers' or officials' consumption weights being very similar, the geometric averages IV (a) 1 See Wirtschaft und Statistik, Dec. 1929, p. 979, and April 1930, p. 313 respectively. Some additional information was obtained from the Statistisches Reichsamt. 40 REPORTS ON THE DIFFERENT CITIES and IV (b) were adopted. They yield expenditures of RM. 1,742 for Berlin and RM. 1,957 for Frankfort. While admitting the idea that differences in the habits of consumption must be taken into account in computing the relative cost of food in Germany and Detroit, the German statistical authorities have expressed some doubts as to the adequacy of the formula used by the International Labour Office. They have therefore suggested a method of their own. It consists mainly in finding the cost in Germany of the American quantities of the 29 articles used by the International Labour Office (accounting for 70.9 per cent, of the total food expenditure in Detroit). In some cases, however, articles of current German consumption have been substituted for American articles ordinarily not consumed in Germany, the quantity of the German article thus introduced being so calculated as to represent the same caloric value as its American "equivalent ". The details of the calculation are shown in the Appendix, table II. It yields cost ratios of 71.6 and 79.6 per cent, and expenditures of RM. 1,673 and 1,860 for Berlin and Frankfort respectively. Interesting though this method is, it cannot, however, be applied to other countries unless certain guiding principles be adopted and the special collaboration of the statistical authorities be secured. For it assumes a profound knowledge of local conditions and also leaves considerable room for arbitrary decisions. The result of the German method has been adopted as the lower, and the result of the International Labour Office method as the upper limit for this item of expenditure. In addition to this, the German statistical authorities have presented a valuable comparison of the caloric value of the Detroit and the German workers' food consumption. Its result is to show that, from this point of view, and if the different size of the families is taken into account, the German budget is practically equivalent to the American (applying the German or the American scale). The calculations are reproduced in the Appendix, table III. HOUSING A special enquiry into rents conducted by officials of the Statistisches Reichsamt has shown that an apartment of 4 % rooms is not usually occupied by working men either in Berlin or Frankfort, and it was therefore difficult to obtain B E R L I N AND F R A N K F O R T ON T H E MAIN ( G E R M A N Y ) 41 figures on rents paid for such apartments. Rent for a "simple" apartment with 4 % rooms has with the collaboration of experts been determined as being RM. 1,020 and for an apartment with the same number of rooms but more similar to Detroit conditions as RM. 1,380. Both figures relate to Berlin as well as Frankfort. They are taken as the upper and lower limit for the expenditure on housing and represent the rent of middleclass families occupying dwellings of this type in modest and somewhat superior districts. If dwellings in exclusively workingclass districts had been taken into account, the rents would have been RM. 830 in old houses and RM. 1,170 in new houses, the weighted average being RM. 875. These figures would reduce the lower limit for the total budget for the two towns by about 3 per cent. Details are shown in the Appendix, table IV. F U E L AND LIGHT Two methods were proposed for these items. The first consists in finding the cost at November 1930 prices of the quantities of fuel and light consumed by working men in Germany. These quantities were collected in the 1927-1928 enquiry into workers' and officials' budgets, and their weights and prices were supplied by the Statistisches Reichsamt as follows : Price Expenditure Berlin RM. Coal Lignite briquettes (Braunkohlenbriketts) . . . . Coke (Gaskoks) Gas Gas meter rent Electricity Electricity meter rent . . kg. 1,950 — „ 2,600 „ 1,950 m3 260 — kwh. 65 — 3.56 Frankfort RM. 5.50 -_ 0.18 — 0.20 — _ 0.19 •— 0.45 •— Berlin RM. — Frankfort RM. 107.25 92.56 — _ _ _ 46.80 49.40 4.80 •— 13.00 29.25 19.20 — 176.36 185.90 The second method makes use of the expenditure incurred by German working men in 1927-1928, taking into account changes in the cost of fuel and light since that date. From material supplied by the Statistisches Reichsamt the following table has been computed: W O R K I N G M E N ' S E X P E N D I T U R E FOR F U E L AND LIGHT P E R ROOM IN GERMANY Under 2,5003,0003,6004,300Average 2,500 R M . 3,000 R M . 3,600 RM. 4,300 R M . a n d more N u m b e r of cases . . 86 255 293 178 84 896 E x p e n d i t u r e for fuel a n d light (RM.) . . 97.69 111.10 120.13 135.98 142.08 120.61 N u m b e r of rooms . . 2.9 3.1 3.2 3.5 3.7 3.2 E x p e n d i t u r e for fuel a n d light per room (RM.) 33.69 35.84 37.54 38.85 38.40 37.69 42 REPORTS ON THE DIFFERENT CITIES The expenditure per room in the highest income class in 1927-1928 is RM. 38.40, which gives a total of RM. 172.80 for a 4 % room apartment at the same date. The average index number for fuel and light, published by the Statistisches Reichsamt for the twelve months from March 1927 to February 1928, is 144.025. For November 1930 it is 152.4. By multiplying the amount of RM. 172.80 by 1.058, being the ratio of the above two index-numbers, the sum of RM. 182.82 is found, representing the expenditure îor this item in November 1930. The German statistical authorities suggested that the second method would lead to a better approximation and the figure of RM. 183 was chosen as the best amount for both cities. CLOTHING The prices of the articles of clothing based on the American sample collection relaite to November 1930 and were collected under the responsibility of officials of the Statistisches Reichsamt. They are given in the Appendix, table V. The two methods proposed for the evaluation of this item yield the following results: Method I Method II RM. 725 , 699 The German authorities have suggested the adoption of the second method with an expenditure figure of RM. 699 since the prices obtained for children's clothing were not considered very reliable. MEDICAL EXPENSES In Germany insurance against sickness is compulsory for all workers, and the German authorities have indicated the sum of RM. 145.60 as the amount of compulsory contributions of the worker to this kind of insurance. Since, however, not all medical expenses are included in this figure, the same authorities have suggested an additional sum of RM. 40, giving a total of RM. 185.60. If the worker when sick is also temporarily incapacitated, he is entitled under the insurance scheme to certain payments from the fourth day of sickness in compensation for loss of earnings. These amount to RM. 35 a week for the highest wage class, payable normally during 26 weeks, but if the worker has been insured for more than si-*. consecutive months they are payable up to maximum of 39 weeks. BERLIN AND FRANKFORT ON THE MAIN (GERMANY) 43 MISCELLANEOUS EXPENSES The prices for these items were supplied by the Statistisches Reichsamt and are given in the Appendix, table VI. The comparison with the corresponding prices in Detroit gives a ratio of 85.8 per cent, for Berlin and 84.5 per cent, for Frankfort. The total expenditure is consequently RM. 1,215 for the former city and RM. 1,197 for the latter. It has been decided to deal with compulsory contributions to unemployment insurance under this heading. For the class of workers here considered they amount to about RM. 237 \ half of which being workers' and the other half being employers' contributions. Accordingly, this amount has been deducted, and the sums of RM. 977 and RM. 959 have been inserted in the summary for Berlin and Frankfort respectively. The worker's own contribution has been added separately in the section dealing with social insurance, whereas the employer's contribution, which is not paid at all to the worker, appears below under the heading "Employers' Social Insurance Contributions ". L I F E INSURANCE AND SOCIAL INSURANCE The method of calculating the purchasing power equivalent to 2,076 dollars is the same as for other cities, giving RM. 6,460 or 5,930 for Berlin and RM. 6,700 or 6,140 for Frankfort. The total premiums for the above figures are RM. 194 or 178 for Berlin and RM. 201 or 184 for Frankfort. These sums have been reduced by RM. 52, representing the employers' contribution to invalidity and old-age insurance 2 and by the worker's own contribution of RM. 52 which is shown separately. The contribution to unemployment insurance is also shown in this section (see above " Miscellaneous Expenses "). TAXATION The procedure adopted in order to calculate the yearly amount of national taxation payable for a given income in Berlin and Frankfort is the following: 1 There are no statutory State contributions to the unemployment insurance fund in Germany. It may he mentioned, however, that the Reich contributed about RM. 36 per insured person in the course of 1930 to the insurance fund. 2 The State contribution to this insurance, during 1930, amounted to about RM. 12 per insured person. The amounts paid by the Reich, including unemployment insurance (see footnote 1) therefore reached about RM. 48 per insured person or about 1 per cent, of the total budgets calculated for Berlin and Frankfort. 44 REPORTS ON THE DIFFERENT CITIES RM. Yearly gross income RM. 4,935, i.e. monthly 411.25 rounded off Amount free of taxation Amount on which taxation is payable Taxation rate (10-3% per cent.) = 6.5 per cent, on RM. 310 Deduct a maximum of Monthly amount of taxation Annual amount of taxation 410.00 100.00 310.00 20.15 3.00 17.15 205.80 The same procedure was adopted for the calculation of the various yearly amounts of national taxation corresponding to the different incomes considered, both for November Ì930 and January 1931. For local taxes, the sum of RM. 9 has been given as the amount payable in Berlin for an income not exceeding RM. 8,000. The same figure was adopted for Frankfort and has been approved by the German authorities. EMPLOYERS' SOCIAL INSURANCE CONTRIBUTIONS: SICKNESS, INVALIDITY AND UNEMPLOYMENT In Germany social insurance contributions by employers are compulsory. The amount payable by employers in the case here considered includes the following items, both for Berlin and Frankfort: RM. Sickness insurance (RM. 1.40 a week) Invalidity and old-age insurance (RM. 1.00 a week) Unemployment insurance (RM. 2.28 a week) . . . 72.80 52.00 118.56 Total 243.36 SUMMARY November 1930 Rerlin Frankfort Lowerlimit Upperlimit Lowerlimit Upperlimit RM. RM. RM. RM. Food 1,673 Housing 1,020 Fuel and light 183 Clothing 699 Medical expenses (including workers' contributions to sickness insurance) . . . . 186 Miscellaneous expenses (excluding workers' contributions to unemployment insurance) 977 4,738 1,742 1,380 183 699 1,860 1,020 183 699 1,957 1,380 183 699 186 186 186 959 4,907 959 5,364 977 . 5,167 BERLIN AND FRANKFORT ON THE MAIN (GERMANY) 45 Berlin Frankfort Lower limit Upper limit Lower limit Upper limit RM. RM. RM. RM. Brought forward . . . 4,738 5,167 4,907 5,364 Life insurance 74 90 80 97 Invalidity and old-age insurance (employee's contribution) 52 52 52 52 Unemployment insurance (employee's contribution) 119 119 119 119 Taxation : National 206 233 217 248 Local 9 9 9 9_ 5,198 5,670 5,384 5,889 Employer's contributions to: Sickness insurance . . . 73 73 73 73 Invalidity and old-age insurance 52 52 52 52 Unemployment insurance 119 119 119 119 Total 5,442 5,914 5,628 6,133 The above data relate to November 1930. In order to bring them to January 1931, the index numbers for this date, published by the Statistisches Reichsamt, have been applied. The results are to be found below in the summary for January 1931. The indices used are as follows : GERMAN COST-OF-LIVING INDEX-NUMBERS (1913-1914 = 100) November 1930 January 1931 Ratio Food Housing Fuel and light Clothing Miscellaneous expenses . . 1 137.5 — 152.4 154.6 — 133.5 0.971 — No change 150.4 0.987 146.4 0.947 — 1.032l Special estimate by the Statistisches Reichsamt. January 1931 (rounded off to the nearest RM. S) _ Berlin Frankfort Lowerliinit Upperlimit Lowerlimit Upperlimit RM. RM. RM. RM. Food 1,625 Housing 1,020 Fuel and light 180 Clothing 660 Medical expenses (including workers' contributions to sickness insurance) . . . . 185 Miscellaneous expenses (excluding workers' contributions to unemployment insurance) 1,010 4,680 Life insurance 75 Invalidity and old-age insurance 50 Unemployment insurance . . 120 Taxation : National 200 Local 10 5,135 Employer's contributions to: Sickness insurance . . . 75 Invalidity and old-age insurance 50 Unemployment insurance 120 Total 5,380 1,690 1,380 180 660 1,805 1,020 180 660 1,900 1,380 180 660 185 185 185 1,010 5,105 90 990 4,840 80 990 5,295 95 50 120 50 120 50 120 230 10 5,605 215 10 5,315 240 10 5,810 75 75 75 50 120 5,850 50 120 5,560 50 120 6,055 46 REPORTS ON THE DIFFERENT CITIES APPENDIX [Unless otherwise stated, the data reproduced in the tables have been collected and supplied by the Statistisches Reichsamt.] TABLE I. 1. 2. 34. Beef Veal P o r k , fresh (Hank) . Pork, salt, bacon (bacon, fat, G e r m a n ) . 5. P o r k , salt, h a m a n d shoulder(cooked h a m ) 6. P o r k , salt, other ("Kassler, K a m m u n d 7. Poultry.hens . . . . 8 (a) Sausage (average ot mettwurst, Jagdwurst, fleischwurst a n d leberwurst) (i>) Cooked m e a t other than ham . . . . 9. Fish, fresh (cod) . . 10. Fish, salt, red herring 11. Milk, fresh (unskimm- 23. Coffee J 28. Macaroni, spaghetti, noodles ( m a d e with 29. Rice (medium quality) Berlin Frankfort RM. 2.80 2.61 1.93 RM. 2.88 2.42 2.45 2.35 4.40 2.60 2.38 Berlin (3) Quantity consumed inGermany b y a worker's family in 19271928 Frankfort RM. 2.80 * 2.61 1.93 RM. 2.88 * 2.42 2.45 3.18 2.35 3.18 9.6 5.60 4.40 5.60 2.1» 2.60 2.70 2.60 2.38 2.60 2.70 4.5" 2.4* Kg. 19.8 4.6 24.6 \ 1 42.5 B 3.54» 3.07 3.30 I 1.60 1.36 1.60 1.40 3.60 1.60 1.36 3.80 1.60 1.40 J 0.28 0.29 0.28 0.29 3.20 2.20 2.00 3.50 2.40 2.00 3.20 2.20 2.00 350 2.40 2.00 17.9 15.3 33.6' 1.50 2.275 0.58 0.81 0.36 2.00 1.65 2.625 0.61 1.11 0.44 2.00 1.50 2.275 0.58 0.81 0.36 2.00 1.65 2.625 0.61 1.11 0.44 2.00 11.6' 27.0' 48.6 " 64.0 " 293.9 1! 19.0 " 0.57 0.06 6,00 0.72 " 0.68 0.07 ' 6.00 0.82 " { 0.57 0.06 6.00 0.90 0.60 0.68 0.07 6.00 1.00 0.70 53.6 507.8 4.0 11.9" 0.70 3.20 0.72 3.20 0.70 3.20 0.72 3.20 10.6 1.5 1.00 0.67 1.00 0.70 1.00 0.67 1.00 0.70 7.5 6.2 j 1 wheat . . . . wheat (rolls) . r y e and mixed a n d cookies . (granulated, 26. Coffee substitutes (2) Price per kg. in November 1930 JJ 3.32" 14. B u t t e r s u b s t i t u t e s . . 15. L a r d and lard subEggs Flour, Bread, Bread, Cakes Sugar (1) Price per k g . as used in t h e calculations ' i 12. B u t t e r (average of farm a n d dairy b u t - 16. 17. 18. 19. 20. 21 FOOD 10.0 11.2' 481.2 1 J 1 1 The prices in this column are arithmetical averages of the corresponding prices in column (2). »"Stew" ('/,) and sausage (•/•) on the suggestion of the German statistical authorities. ' Ham. » Poultry. » Sausage and other " charcuterie ". « Fish, other. ' Margarine. • Lard and other melted fats. • 472 pieces at 17.5 eggs per kg. » Bread flour. " Wheaten bread and 15 rolls. " Different kinds of bread (rye and mixed flour). •» Pastry. " Southern fruits. Other meat. u Weighted average. SOURCE: Prices supplied by the German statistical authorities. Quantities taken from the enquiry into family budgets of 1927-1928 (Wirtschaft und Statistik, 1929, No. 24). TABLE II. A L T E R N A T I V E COMPARISON O F FOOD COSTS AT B E R L I N A N D F R B Y T H E GERMAN STATISTICAL A U T H O R I T Workers in D e t r o i t Designation Quantity Expenditure Kg. 17.4 RM. 62.88 Designation Beef, fresh, stew with bones ! Average of Mettwurst, Fleischw 22.5 l b . Beef, fresh, roast 69.06 a n d Leberwurst * 19.5 41.34 l c . Beef, fresh, stew Beef, fresh, stew with bones . . 23.13 7.4 2. Veal Veal 75.09 30.2 3. Pork, fresh 43.01 13.8 Pork, flank, fresh 4. P o r k , salt, bacon 24.09 10.2 Bacon, £at, smoked, G e r m a n . . 1.12 5. Pork, salt, h a m a n d shoulder . 0.6 H a m , cooked 38.63 11*0 6. Pork, salt, other Kassler ( K a m m u n d Schuft) * . 7. Poultry, hens Minced m e a t 8.5 21.96 8a. Sausage Average of Mettwurst, Fleischwurs 7.6 22.04 8b. Cooked meat (other t h a n h a m ) Leberwurst 7.9 20.99 9. Fish, fresh Pork, salt, cooked 1.8 4.55 10. Fish, salt Cod, w i t h o u t h e a d 491.7 294.01 11. Milk, fresh R e d h e r r i n g (smoked) 30.0 139.69 12. B u t t e r Milk, u n s k i m m e d (from s h o p ) . . 5.0 16.81 13. Cheese, ordinary B u t t e r , average of dairy a n d farm b 11.6 24.28 14. B u t t e r substitutes Tilsitt cheese, fat 23.5 36.37 15a. Lard Margarine ( B l a u b a n d t r a d e - m a r k ) 55.0 153.48 15b. Lard substitutes Lard, foreign 86.9 39.12 16. Eggs Palmin 236.0 179.40 17. Flour, wheat Eggs3 50.9 42.74 18. Bread, wheat Flour, w h e a t 14.8 28.68 19. Bread, rye Rolls, w h e a t * 88.6 53.17 20. Cakes and cookies Bread, o t h e r t h a n wheat * . . . 268.2 61.69 21. Sugar Cake 14.8 53.83 22. Potatoes Sugar, fine (household) 30.6 22.01 23. Coffee Potatoes 46.2 40.16 24. B a n a n a s Coffee» 0.2 1.14 25. Oranges Bananas 2.1 6.26 26. Coffee substitutes Oranges 1,655.16 6.7 9.13 27. Cocoa Malt coffee * 5.6 5.30 2 8 . Macaroni Cocoa 29. *Rice h water) of . . A. m The caloric value of t h e German articles is as far as possibleNoodles t h e s a m(made e as t hwei tquantities Rice, medium quality Total for articles 1-29. . (German table). 1 T o t a l for articles 1-29 . . . German articles of c o m m o n consumption have been substituted for t h e American foodstuffs. ' Average weight of one e g g = 52 gr. * In accordance w i t h German h a b i t s of consumption t h e quantities of w h e a t a n d rye b r e a d h a * In accordance with G e r m a n h a b i t s of consumption t h e American q u a n t i t y of coffee h a s b The q u a n t i t y of malt coffee has been increased taking into account its smaller yield, compared t o t h e y T o t a l expenditure in D e t r o i t = R M . 2,335.70, i.e. it is 41.1 per cent, higher t h a n t h e expe expenditure for food in Berlin a n d F r a n k f o r t is therefore: for Berlin: R M . 1,185.95 + 41.1 per cent. = RM, 1,673.38; for Frankfort: RM. 1,318.27 + la. 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"¿5 ea « S KT ¿s CU « < Li V O) C1 CJ o O fflfflO I > C H CM ¿s U O AH CS • c i J3 IM sil ill:,.-: 1ÌI CJ •* S s e-Sí SI'!. ; e« CJ 2 o j r t • Pia sa if 3 S s CJ çsr; u a d r f U n H g u ci WfcfflCaUtfi^CìiCQOPHCQCuUE-iOf-ia« + 0.8 +28.7 —19.5 11.6 2.0 3.4 4,141 3,886 7,609 4,176 5,000 3,842 —28.3 11.8 26,326 18,880 3,746 3,581 360 2,500 1,130 990 1,840 890 1,600 1,150 1,160 3,650 3,590 + 21.0 2.6 0.3 5,179 79,790 23,993 6,264 77,745 24,053 3,573 3,508 3,449 441 542 2,834 3,131 3,640 3,540 3,410 250 480 2,530 3.120 1.9 0.9 1.1 —43.3 —11.4 —10.7 — 0.4 5.4 21.3 6.7 8.8 5.6 5.7 194.9 23.0 9.5 1.8 31,442 19,645 19,659 85,951 12,466 26,923 5,636 32,032 19,824 19,437 45,075 11,040 24,035 5,616 2,289 540 2,420 1,605 + 5.7 + 197.2 9,843 11,124 10,406 33,063 4,975 6,044 3,177 4,170 5,000 3,000 —16.2 —17.3 — 5.6 10,448 29,011 8,757 24,000 10,500 227 3,130 470 3,320 900 420 Buttermilk Cream . . Mutton. . 357 1,943 2,238 Liver a n d other m e a t . — — 2,231 — 959 — (Soup) bones . . . . Semolina a n d similarproducts Macaroni, spaghetti, noodles Other cereals and starch products Rice Beans, n a v y Vegetables, n o t canned Berries, fresh Dried fruits Nuts Jellies, preserves, m a r m a l a d e a n d fruit b u t t e r Other fruits (canned) . . . Coffee substitutes . . . . ' . Cocoa Sweets a n d chocolate . . . Molasses, syrup, a n d honey . Canned soup Soft drinks, fruit juices, etc, Other foodstuffs Total I I . . . All foodstuffs . • — — .761 —. + + + 4.3 20.6 0.2 2.1 4.8 3.5 6.7 -44.8 1.2 43.6 11,120 1,521 913 125,776 20,971 504 125,776 530,996 552,402 3,871,874 3,724.305 * According t o family b u d g e t enquiry of 1927-1928. ' Kassler. » e.g. smoked a n d salted m e a t , canned m e a t . ' H e n (for soup). J a g d w u r s t , Fleischwurst a n d Leberwurst. • Smoked a n d salt m e a t . ' R e d herring. (canned) " Cut beans (canned). " e.g. liver sausage, lung a n d h e a r t . Sk Cre Mu Ho Mi Ga Ot Fr Bo Sem Ma Oth Ric Be Ve Ber Dr Nu Jel Oth Ma Coc Ch Syr Ho Sal Sou Bee Spi Wi Sof Oth Ave ° C 50 REPORTS ON THE DIFFERENT CITIES TABLE IV. — HOUSING 1 Rents in January 1931 in RM. (1) Rent in a modest middle-class quarter for 4.5 rooms (including kitchen), with heating by stoves, running water, without bathroom, w.c. inside, in Berlin and Frankfort: In an old house In a new house RM. 80.— RM. 110.— Average of old and new houses 2 : RM. 85.—. (2) Rent in a better quarter for 4.5 rooms (including kitchen), with central heating, running hot water, bathroom, w.c. inside, in Berlin and Frankfort: In an old house In a new house RM. 110.— RM. 140.— Average of old and new houses 3 : RM. 115.—. 1 In Germany two classes of rents must be distinguished, namely: (a) Rent for apartments in old houses, i.e. which were ready before 1 July 1918 — this rent is subject to State regulation; (6) Rent for apartments in. new houses, i.e. finished after the above date and free from State control — this rent accordingly adjusts itself to the cost of production. Old dwellings, which the great majority of workers' families occupy, are subject to a special fiscal charge, the Hauszinss teuer, which is included in the rent, and paid to the State by the landlord. This tax varies with the pre-war mortgage on the property and may amount to as much as 48 per cent, of the pre-war rent. * Apartments in new houses form according to a preliminary estimation about oneseventh of the total number for Berlin and Frankfort respectively. TABLE V. — CLOTHING / . Men's clothing 1. Hat 2. Cap 3. Woollen suit 4. Overcoat 5. Cotton, trousers 6. Cotton shirt 7. Vest, cotton 8. Pants, cotton 9. Socks 10. Shoes 11. Cotton gloves 12. Tie 13. Belt 14. Overall II. Women's clothing 1. Hat 2. Dress, rayon 3. House dress 4. Dress, cotton 5. Woollen coat 6. Petticoat, cotton 7. Bloomers, step-ins, drawers 8. Shirt, cotton 9. Stockings, rayon 10. Shoes 11. Gloves, cotton x Average Prices in November 1930 (Berlin and Frankfort ) KM. 5.00 2.25 71.50 70.50 5.10 6.00 2.50 2.75 1.30 16.50 1.60 1.45 2.25 7.50 6.80 28.25 3.35 5.75 58.00 3.40 2.65 1.60 1.95 15.75 1.50 * As stated in the introduction, the prices given are average prices for Berlin and Frankfort. For some articles the prices were not supplied for the samples, but for corresponding articles more common in Germany, the former being little used here. The price for a man's belt, for example, is given for a more narrow belt than the Detroit sample. BERLIN AND FRANKFORT ON THE MAIN (GERMANY) 71/. Children's clothing (a) Boys 1. Cap 2. Woollen suit 3. Cotton trousers 4. Overcoat 5. Sweater or lumberjack 6. Cotton shirt 7. Cotton union suit 8. Cotton socks 9. Boots (b) Girls 1. Hat 2. Cotton dress 3. Dress, rayon 4. Woollen coat 5. Sweater or lumberjack 6. Petticoat or slip, cotton 7. Union suit, cotton 8. Bloomers, step-ins, drawers 9. CottonTABLE stockings VI. MISCELLANEOUS 10. Shoes RM. 1.50 33.00 2.50 23.00 10.00 3.25 3.50 1.10 8.50 3.25 5.75 15.00 30.00 7.25 1.50 4.25 1.25 1.50 EXPENSES 7.00 Prices in November 1930 Berlin RM. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 1 51 Blanket 12.50 Sheet 1 4.50 Pillow-case 1.20 Cotton towel 0.80 Cotton or linen tablecloth 4.50 Transport: tramway 0.25 bus 0.25 Barber expenses: 1 hair cut (man) 0.80 1 hair cut (child) 0.60 1 shave 0.25 Moving pictures (matinee) 0.60 Newspapers, monthly 2.60 Tobacco: cigarettes, each 0.045 tobacco, 50 gr 0.50 Postage (1 inland letter) 0.15 Telephone (1 call from public station) . . . 0.10 Frankfort RM. 12.75 4.50 1.20 0.90 4.90 0.25 0.25 0.65 0.50 0.20 0.65 2.25 0.045 0.50 0.15 0.10 Instead of prices for the sample articles prices for corresponding articles commonly consumed in Germany have been supplied, because the quality (width) corresponding to the former is not used in Germany. COPENHAGEN (Denmark) The basic data were supplied by the Danish Central Statistical Department. FOOD The prices of foodstuffs relate to July-August 1930. The figures on Danish consumption were supplied by the Danish Statistical Department from the family budget enquiry of 1922 l. Twenty-one articles were taken which were common to each budget and which covered 56.9 per cent, of the Danish and 62.6 per cent, of the American workers' expenditure on food. The data (prices and weights) used are shown in the Appendix, table I. The result of the calculations is as follows: Ratio of cost of food in Copenhagen to Detroit, based on 21 foodstuffs (Detroit = 100): (1) Using Detroit weights 78.4 per cent. (2) „ Danish „ 69.5 (3) Average of (1) and (2) 73.8 Applying the last ratio to the Detroit food expenditure gives as result 1,532 kroner. This figure has been approved by the Chief of the Danish Statistical Department. HOUSING The information supplied by the Danish Statistical Department indicates that the yearly cost of a dwelling similar to the one generally lived in by the Detroit worker amounts to about 1,200 kroner. On the other hand, an apartment of 4% rooms as usually occupied by a Danish skilled worker's family is given as 800 kroner. On the advice of the Danish Statistical Department the figures of 800 and 1,200 kroner are taken as the lower and upper limits respectively. 1 Husholdningsregnskaber for 1922, Danmarks Statistik, 4th Series, 69th volume. COPENHAGEN 53 (DENMARK) FUEL AND LIGHT The prices of the various articles are given in the Appendix, table II. The quantities consumed for the usual Danish apartment of 4 1 / 2 rooms are given by the Danish Statistical Department as follows: Coke Wood Gas Electricity Kerosene 40 hectolitres 400 kg. 250 m s 150 kwh. • 59.4 litres While for a type more approaching to the Detroit one, the figures supplied are as follows: Coke Wood Gas Electricity Kerosene 65 hectolitres 150 kg. 200 m3 150 kwh. 59.4 litres The total costs of fuel and lighting on the basis of these two lists are, after allowing for an annual fixed electricity charge of 6 kroner a year, and an addition of 1.56 per cent, for expenditure on matches, 245 and 271 kroner respectively. CLOTHING The prices of the various items of clothing are given in the Appendix, table III. The cost of these items was worked out by the usual two methods and gave the following results : Method I Method II 819 kroner 770 The figure of 770 (Method II) was recommended by the Danish Statistical Authorities. It was pointed out that the latest figures of Danish consumption indicate that from 11 to 13 per cent, of the worker's income is spent on clothing. MEDICAL EXPENSES In Denmark, practically all workers are members of State recognised sick funds to which the annual contribution is 63 kroner a year. The fund covers members of the family and children up to 15 years. There are therefore no further medical 54 REPORTS ON THE DIFFERENT CITIES expenses in the Danish workers' budget except for medicines (one quarter payable by the worker) and for dental care. Assuming 10 visits to the dentist at 4 kroner a visit gives 40 kroner, which added to the 63 kroner above makes 103 kroner. This is the figure suggested by the Danish statistical authorities. MISCELLANEOUS EXPENSES The prices of the different items are given in the Appendix, table IV. Their cost in Copenhagen is 363.04 kroner. Applying the same ratio to the remaining expenses in this group gives a total of 1,103 kroner. In Denmark, trade union subscriptions are practically compulsory on workers and amount to 130 kroner a year. Of this sum, 70 kroner are ordinary subscriptions, " a n indispensable expense for a Danish worker in order to get regular work ", and 60 kroner represent the employee's contribution to unemployment insurance, the State contributing in addition about 30 kroner. Accordingly, the amount of 70 kroner is included, whereas the total contributions to unemployment insurance (those of the worker and of the State, since the employer is exempted) to the amount of 90 kroner are deducted from the above total for "Miscellaneous expenses", giving for these a remainder of 1,013 kroner. The worker's own payments (60 kroner) are then added separately, whereas the State contributions do not re-appear, thus representing a reduction of the cost of living to the worker, and a reduction of the cost of labour to the employer. L I F E INSURANCE The premium for life insurance is calculated on the Danish "purchasing power equivalent" of the American amount of 2,076 dollars. This is estimated at 5,670 kroner for the lower and 6,200 kroner for the upper estimate. The corresponding premiums are about 170 and 186 kroner. There exists in Denmark a non-contributory old-age pension available to needy persons 65 years of age and over. This organisation certainly reduces the feeling of insecurity which induced American workers to take considerable life insurance policies. But the absence of compulsory contributions makes it impossible to take this fact numerically into account. 55 COPENHAGEN (DENMARK) TAXATION Direct taxation plays an important part in the expenditure of a Danish worker. At the present time the taxation rates are as follows for a Danish worker with wife and 2 1 / 2 children: Income of 4,000 kroner = 174 kroner „ 5,000 „ = 284 „ „ 6,000 „ = 412 Special calculations have been made by the Danish statistical authorities of the amounts of taxation due on the incomes here considered. EMPLOYER'S CONTRIBUTIONS TO SOCIAL INSURANCE SCHEMES The total for this item amounts to 25 kroner per annum, whereof 17 kroner for accident insurance. Accordingly, a sum of 8 kroner has been inserted. SUMMARY July-August 1930 Lower estimate Kr. Food Housing Fuel and light Clothing Medical expenses Miscellaneous expenses (including trade union subscription) . . . . Life insurance Worker's unemployment contribution Taxation Upper estimate Kr. 1,532 800 245 770 103 1,532 1,200 271 770 103 1,083 4,533 170 1,083 4,959 186 60 223 4,986 60 266 5,471 insurance Employer's contributions to social insurance (other than accident) . . 8 8 Total . . . 4,994 5,479 In order to bring the data for the different towns all to a uniform date, viz. January 1931, the following cost of living index numbers have been applied: Expenditure in kroner July 1930 Jan. 1931 Food 1,140 1,056 Fuel and light 145 141 Clothing 403 375 Other expenses 685 682 SOURCE: Statistiske Efterretninger, 1931, No. 5. Coefficient of reduction 92.6 97.2 93.1 99.6 56 REPORTS ON THE DIFFERENT CITIES January 1931 (rounded off to the nearest 5 kroner) Lower estimate Kr. Food Housing Fuel and light Clothing Medical expenses Miscellaneous expenses (including trade union subscription) . . . . Upper estimate Kr. 1,420 800 240 720 105 1,420 1,200 265 720 105 1,080 4,365 170 1,080 4,790 185 60 200 4,795 60 250 5,285 Employer's contributions to social insurance 10 10 Total . . . 4,805 5,265 Life insurance "Worker's unemploj'ment contribution Taxation insurance 57 COPENHAGEN (DENMARK) APPENDIX [Unless otherwise stated, the data reproduced In the tables have been collected and supplied by the Danish Central Statistical Department.] TABLE I. FOOD Annual quantity Price per kg. Price per kg. consumed at as used in the at Copenhagen Copenhagen (July-August calculations by a family 1930) ot 3.27 units (2) (1) of consumption in 1922 ore Kg. (3) ore 1. 2. 3. 4. 5. 6. 181 181 37.01 ! Beef, fresh, steak . . . . 181 181 Beef, fresh, roast . . . . 194 194 29.17 Veal 194 194 15.922 Pork, fresh 200 200 18.47 Pork, salt (bacon & ham) 248 248 12.493 Cooked meat (other than 20.24* 115 115 ham) 1.44» 88 88 389.49 7. Fish, fresh 32 32 30.28 8. Fish, salt 294 294 51.316 9. Milk, fresh 146 146 19.88 10. Butter 10.37 248 248 29.66 11. Butter substitutes . . . 156 156 51.27 176 176 12. Cheese 67.00 34 34 13. Lard 230.86 77 77 114.48 14. Eggs 275.60 19 19 15. Flour, wheaten . . . . 1.24 42 42 16. Bread, -wheaten 15.76 13 13 17. Bread, rye 900 900 18. Sugar 428 428 * Beef, fresh. ' Sum of " pork " and " pork, loin ". ' Mince-meat. * Sum of cod: 5 Potatoes, Irish • Margarine. . . . . and19. plaice. Dried codfish. 20. Tea SOURCE : Prices supplied by the Danish statistical authorities. 21. Coffee Quantities taken from "Husholdningsregnskaber for 1922 ", Danmarks Statistik, Staiistiske Meddelelser, 4. Raekke, 69. Bind, 5. Haefte, p. 42,. where the data are given per consumption-unit. TABLE 11. Coke Wood Gas Electricity Kerosene w. = 50 kg. FUEL AND LIGHT Prices in Units July-August 1930 hi. » kg. m. kwh It. ore 241 11 14 30 25 58 REPORTS ON THE DIFFERENT CITIES TABLE I I I . CLOTHING Prices in July-August 1930 J. Men's Clothing 1. Felt h a t 2. Cap 3. Woollen suit 4. Overcoat 5. Cotton trousers 6. Cotton shirt 7. Union suit, cotton 8. Cotton socks 9. Boots and shoes 10. Cotton gloves 11. Tie 12. Belt 13. Overall / / . Women's clothing III. '. . 1. H a t 2. Dress, cotton 3. Dress, rayon 4. House dress or bungalow apron 5. Woollen coat 6. Petticoat or slip, cotton 7. Bloomers, step-ins or drawers, rayon . . . . 8. Shirt or vest, cotton 9. Stockings, rayon 10. Shoes . . . " 11. Gloves, cotton Children's clothing (a) Bogs 1. Cap 2. Woollen suit 3. Cotton trousers 4. Overcoat 5. Sweater or lumberjack 6. Cotton shirt 7. Union suit, cotton 8. Cotton socks 9. Boots (b) Girls 1. H a t 2. Dress, cotton 3. Dress, rayon 4. Woollen coat 5. Sweater or lumberjack 6. Petticoat or slip, cotton 7. Union suit, cotton 8. Bloomers or drawers, cotton 9. Cotton stockings 10. Shoes 10.50 4.50 100.00 80.00 7.50 4.00 4.50 1.35 18.00 1.00 2.50 2.50 5.00 7.00 4.50 30.00 3.00 85.00 2.50 3.50 1.50 4.00 16.00 1.75 2.50 55.00 3.50 35.00 12.00 2.50 3.25 1.75 12.00 4.00 3.00 16.00 35.00 7.00 1.75 3.35 1.25 1.50 11.00 59 COPENHAGEN (DENMARK) TABLE IV. — MISCELLANEOUS EXPENSES Prices in July-August 1930 Kr. 1. 2. 3. 4. 5. 6. 7. 8. Blanket Sheet Pillow-case Cotton towel Table oilcloth Cotton and linen tablecloth Daily transport (1 ride) Barber's expenses: 1 hair cut (man) 1 hair cut (child) 1 shave 9. Moving pictures (1 ticket) 10. Newspapers: 1 daily paper 1 Sunday paper 11. Tobacco: 20 cigarettes 2 ounces 12. Laundry work sent out: 1 man's shirt 1 sheet 13. Postage (1 inland letter) 14. Telephone (1 call from public station) 5.85 3.35 1.45 0.85 1.85 4.85 0.17 1.00 0.50 0.30 1.05 0.10 0.30 0.70 0.60 . . . 0.50 0.29 0.10 0.10 STOCKHOLM (Sweden) The enquiries were made by the Swedish Social Board which has had the opportunity to take part in, and to give its advice as to, the calculations made by the International Labour Office. FOOD The retail prices of foodstuffs relate to October 1930. On the basis of these prices the cost of this section of the budget was calculated by using the results of the Detroit enquiry, and of a family budget enquiry conducted in Stockholm by the Swedish Social Board in 1922-1923 1 . It was found possible to select 31 articles for which consumption weights were available for the two localities; these articles accounted for 70.5 per cent. of the total expenditure on food in Detroit in 1929, and similarly for 77.9 per cent, at Stockholm in 1922-1923. The Stockholm weights and prices are indicated in Appendix A, table I. On the basis of these data the following ratios were computed. Ratio of cost of food in Stockholm to Detroit, based on 31 foodstuffs (Detroit = 100): (1) Using Detroit weights (2) Using Stockholm weights (a) Income class less than 1,300 kr. . (Z>) „ „ 1,300-1,950 kr. . . . (c) „ „ over 1,950 kr. . . . 89.8 per cent. 74.5 73.9 75.2 „ „ In the opinion of the Swedish Social Board the second income class is the more appropriate, which gives an average between ratio (1) and ratio (2) (b) of 81.45 percent. This figure yields a cost of 1,689 kronor. In addition to this the Social Board presented a special memorandum on the calculation of the expenditure on food, yielding a ratio of 68.2 per cent..and a sum of 1,394 kronor. This memorandum " is reproduced below as Appendix B. As is explained on p. 17 of this report, this method could not be applied to all countries included in the enquiry. Its 1 " Levnadkostnaderna i Städer och Industriorter omkring âr 1923 ", Sveriges Offlciella Statistik, Socialstatistik, Stockholm 1929, p. 193, col. 2: some further details were taken from ; " Statistisk Undersökning angaende Levnadkostnaderna i Stockholm 1922-1923." Stockholms Stads Statistik, Specialundersökningar Nr. 13. Stockholm, 1927, p. 7. 61 STOCKHOLM (SWEDEN) result has, however, been adopted as the lower, and the result of the International Labour Office method as the upper, limit for this item of expenditure. HOUSING A valuable memorandum on rents in Stockholm was furnished by the Swedish investigators which is reproduced below as Appendix C. In view of the fact that Swedish workers do not in fact live in a dwelling of 4-5 rooms, it was not possible to give the alternative figures indicated in Chapter II. After discussion it was decided to take a figure of 1,500 kronor, as this would cover the rent of a house of 4-5 rooms in the suburbs of Stockholm, as well as the rent for a 3-room apartment of two rooms and kitchen in a modern building equipped with the latest "comfort ", situated in the city. FUEL AND LIGHT The prices of the different items are given in Appendix A, table II. The quantities consumed in Stockholm per "normal family " of 3.3 units are as follows: Article Wood Coal Coke Gas Electricity Kerosene Unit m3 hi. hi. m3 kwh. It. Quantity 5.3 0.7 2.3 211.5 74.6 22.4 The application of these quantities gives a figure of 114.52 kronor. As the Stockholm quantities, however, relate to a dwelling of 0.83 rooms per unit 1 , whereas the Detroit dwelling contains 1.41 rooms per unit, this figure must be increased in the ratio ^5 L70, which gives 195 kronor. The Swedish Social Board considers that this sum would cover the cost of fuel and light for a dwelling of 4% rooms without central heating and hot water supply. If it is assumed that an apartment of two rooms and kitchen in a modern building and equipped with central heating and hot water supply is occupied by the worker (see above under "Housing "), the following calculation would be appropriate : 1 " Statistisk Undersökning angaende Levnadkostnaderna i Stockholm 1922-1923. " Stockholms Stads Statistik, Specialundersökningar Nr. 13. Stockholm, 1927, p. 7. 62 REPORTS ON THE DIFFERENT CITIES Charge for central heating and hot water (50 kronor per room) Electricity (Stockholm budget quantity) Gas (Stockholm budget quantity) Total Kr. 150.00 18.65 21.15 189.80 Since the two calculations yield practically the same result, the figure of 195 kronor has been adopted. CLOTHING The prices of the various items of clothing are given in Appendix A, table III. The cost of these items was computed by the usual two methods, and gave the following' results: Method I Method II 916 kronor 802 „ As in the case of Copenhagen, the Swedish authorities consider that Method II gives the more satisfactory results, and it has therefore been adopted. The Swedish authorities point out that ready-made clothing for children is comparatively rare, owing to the large extent to which children's clothes are made in the home. MEDICAL EXPENSES The data supplied are given in Appendix A, table IV. In spite of the existence of voluntary sickness funds, the Swedish Social Board proposes to adopt the ordinary calculation based on doctor's fees in Stockholm, allowing however for the facilities available to small income earners at Stockholm by a reduction of 15 per cent. The details of the computation are as follows: Kr. Cost of 9V-2 visits to the doctor at 5 kronor each ,, „ 6V3 „ of „ „ ,, 10 ,, ,, Reduction of 15 per cent . . . . Cost of 10 visits to the dentist at 5 kronor each . Total MISCELLANEOUS 47.50 63.33 110.83 16.62 94.21 50.00 144.21 EXPENSES The data supplied are given in Appendix A, table V. Calculating the cost of comparable items in Detroit and Stockholm gives a percentage of 94.8. Applying this to the appropriate total of the Detroit budget a figure of 1,192 kronor is obtained. STOCKHOLM 63 (SWEDEN) L I F E INSURANCE The same method is adopted as for other towns. The equivalent purchasing power in Stockholm of 2,076 dollars is estimated at 6,500 and 7,000 kronor for the lower and upper estimates respectively. The premiums on these figures are about 195 and 210 kronor respectively. A. compulsory workers' pensions fund exists in Sweden, with contributions by the workers and a State contribution. It is not possible, however, to compute the State contribution pei insured worker. The contributions payable by a married man earning between 5,000 and 6,999 kronor per year, viz. 26 kronor, have been deducted from the above premiums, and are shown under a separate heading. TAXATION The taxation, State and local, in Stockholm for a family of husband, wife and two children under fifteen years is given by the Swedish Statistical authorities as 255 kronor on an income of 5,000 kronor, and 352 kronor on an income of 6,000. Figures of 320 and 352 kronor are inserted, based on incomes of roughly 5,700 and 6,000 kronor respectively. EMPLOYERS' SOCIAL INSURANCE CONTRIBUTIONS Under existing legislation employers are compelled to contribute only to accident insurance. In addition to this they are, however, bound by collective agreements or special obligations to pay contributions for other social purposes. In mechanical engineering at Stockholm, these supplementary charges amount to 0.43 kronor per week per employee, or about 22 kronor per year. SUMMARY October 1930 Food Housing Fuel and light Clothing Medical expenses Miscellaneous expenses Lower estimate Kr. 1,394 1,500 195 802 144 1,192 5,227 per estimate Kr. 1,689 1,500 195 802 144 1,192 5,522 64 REPORTS ON THE DIFFERENT CITIES Brought forward Life insurance Workers' contributions to pensions fund Taxation Employers' social insurance contributions Total 5,227 169 5,522 184 26 320 5,742 26 352 6,084 22 22 5,764 6,106 In order to bring the calculations for the different towns to a uniform date (January 1931), it is proposed to modify the above figures in accordance with the changes in the cost of living. According to the official statistics for Sweden the following changes took place. Cost oí living index of the Social Board (July 1914 = 100) October 1930 July 1931 Food 137 132 Housing 205 205 Fuel and light 156 155 Clothing 178 177 Taxation 176 176 Miscellaneous expenses . 176 177 The results are as follows : January 1931 (rounded off to the nearest S kronor) Food Housing Fuel and light Clothing Medical expenses Miscellaneous expenses 0.96 1.00 0.99 0.99 1.00 1.01 Lower estimate Kr. Upper estimate Kr. 1,340 1,500 195 795 145 1,205 5,180 170 1,620 1,500 195 795 145 1,205 5,460 . Life insurance Workers' contributions to pensions fund Taxation Employers' social insurance contributions Total Coefficient of reduction 185 .25 350 25 320 5,695 6,020 20 20 5,715 6,040 APPENDIX A [Unless otherwise stated, the data reproduced in the tables have been collected and supplied by the Swedish Social Board.] TABLE I. — FOOD Yearlyq u a n t i t y consumed in Price per kg. Price per kg. 1922-1923 b y a as used in t h1e a t Stockholm family of 3.3 units in Stockcalculations in October 1930 holm with a n a n n u a l income per unit of 1,300-1,950 k r . (2) (3) (1) Kr. Kr. 1. Beef, fresh (a) Beef, fresh, steak . . (b) Beef, fresh, roast . . (c) Beef, fresh, stew . . 2. Veal 4. Pork, salt (i>) Ham and shoulder . (c) Pork, salt, other . . 5. Sausage 7. Fish, salt 8. Milk, fresh (a) Ordinary American (b) Other 10. Butter 11. Butter substitutes . . . 12. Lard and lard substitutes 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. (b) Lard substitutes . . Eggs Flour, wheaten . . . . Bread, wheaten . . . . Bread, rye Cakes and cookies . . . Sugar Potatoes (Irish) . . . . Tea Coffee Cream and condensed milk Mutton (a) Chops (b) Roast 2.66 —. — — 2.45 2.55 2.76 .—. — — 1.60 1.44 0.70 0.24 1.94 — — 2.82 1.39 1.32 .— .— 1.94 0.39 0.96 0.67 2.62 0.39 0.13 9.26 3.36 1.196 2.52 —. -—. . 24. Beef, salt and preserved (a) Beef, salt, corned , . (b) Beef, salt, dried. . . 25. Buttermilk 26. Flour other than wheaten 27. Breakfast foods . . . . (a) Wheat (b) Oats 28. 29. 30. 31. Molasses, syrup . . . . Dried beans (navy) . . Cocoa Other meat not canned . — • 2.48 —. —. 0.09 0.35 1.82 — — — 1.89 0.80 2.08 1.45 — 4.37 2.07 1.53 2.45 2.55 —. 4.07 2.34 1.86 1.60 1.44 0.70 0.24 — 2.23 1.64 2.82 1.39 — 1.16 1.47 1.94 0.39 0.96 0.67 2.62 0.39 0.13 9.26 3.36 1.19» — 3.22 2.65 1.71 — 2.04 2.92 0.09 0.35 — 2.52 0.40 2.54 1.89 0.80 2.08 1.45 30.7 —. — — • 17.8 25.7 15.2 —. — — 31.7' 50.2 2 35.6 3 940.1 8 14.9 —. —. 39.6 9 18.8 7.6 10 — — 39.7 155.5 28.0 100.0« 6.6 108.9 389.4 0.26 20.1 35.6« 6.9" — — — 5.0" — —18.3 45.1" 31.4" — —. —. 4.3 8.3 !" 2.0 18.5 16 1 The prices of this column are simple arithmetic averages of the corresponding data in column (2). ' Sum of "herrings and small herrings of the Baltic Sea " and "other fresh fish ". s Sum of "salt herrings "e and "other salt fish ". * Sum of "dry ", "fresh and sour " and "sweet " rye bread. Price oí cream. ' Quantity of cream. ' Sausage and galantine. • Natural milk. * Margarine. " Fats. " Mutton and lamb. » Salt and smoked meat. » Sum of rye flour, sifted rye flour and other flour. » Gruels. " Dried peas and brown beans. " "Other meat ". 5 66 REPORTS ON THE DIFFERENT CITIES SOURCE : Quantities taken from page 7 of "Statistisk Undersökning angaende Levnakosnaderna i Stockholm 1922-1923 ", Stockholms Stads Statistik, Specialundersökningar No. 13. Prices supplied by the Swedish statistical authorities with the following special remarks: 1 (a). Beef, fresh, steak. Beefsteak without bones has been noted but not fillet of beef properly so-called (compare the French translation "filet de bceuf")> which in Stockholm fetches a considerably higher price. 9 (a) and (b). Cheese. The price given under (a) is that for Swedish cheese made from unskimmed milk, and under (b) commoner Swedish cheese. 15. Bread, wheaten. Wheaten bread (household bread) is baked in Sweden either with water or milk. The price represents an average between the two kinds of bread. 16. Bread, rye. The price represents the most usual kind of rye bread in Stockholm, i.e. "sweet bread ", baked from rye flour and wheat meal and somewhat sweetened and spiced. 24 (b). Beef, salt, dried. This is not met with in Stockholm. In place of it the price for dried mutton has been given. 26. Flour, other than wheat. The price given is for sifted rye flour, which is employed to a comparatively large extent (33 kgs.) for breadmaking at home. TABLE II. — FUEL AND LIGHT Prices in October 1930 Kr. 1. 2. 3. 4. 5. 6. 7. Anthracite coal Bituminous coal Coke Wood Gas Electricity Kerosene hi. 7.00 ,, 3.02 „ 2.63 m 3 11.25 m3 0.10 kwh. 0.25 It. 0.29 TABLE III. — CLOTHING Prices in October 1930 1. Men's clothing 1. Felt hat 2. Cap 3. Woollen suit 4. Overcoat 5. Cotton trousers 6. Cotton shirt 7. Union suit, cotton 8. Cotton socks 9. Boots and shoes 10. Cotton gloves 11. Tie 12. Belt 13. Overall K"-7.50 3.50 65.00 65.00 4.50 5.25 5.25 0.95 18.50 1.75 2.00 2.50 11.00 STOCKHOLM (SWEDEN) 67 Prices in October 1930 Kr. II. Women's clothing 1. Hat 11.00 2. Dress, rayon 35.00 3. Dress, cotton 5.50 4. House dress or bungalow apron 7.50 5. Woollen coat . 55.00 6. Petticoat or slip, cotton 3.50 7. Bloomers, step-ins or drawers, rayon . . . . 4.50 8. Shirt or vest, cotton 2.65 9. Stockings, rayon 4.60 10. Shoes 18.50 11. Gloves, cotton 1.75 III. Children's clothing (a) Boys 1. Cap 3.25 2. Woollen suit 45.00 3. Cotton trousers 4.50 4. Overcoat 37.50 5. Sweater or lumberjack 12.00 6. Cotton shirt 3.00 7. Union suit, cotton 4.65 8. Cotton socks 2.00 9. Boots 15.00 (b) Girls 1. Hat 2.00 2. Dress, cotton 4.50 3. Dress, rayon 35.00 4. Woollen coat 32.50 5. Sweater or lumberjack 9.00 6. Petticoat or slip, cotton 2.50 7. Union suit, cotton 4.65 8. Bloomers, drawers, cotton 2.00 9. Cotton stockings 1.85 10. Shoes 15.00 SOURCE : Data supplied by the Swedish statistical authorities, with the following remarks: On a comparison between the specimens of American articles of clothing which were supplied for this enquiry and the qualities most commonly used by the social group in question in Stockholm, the remark might be made that as regards men's clothing the American suit (13) was of comparatively low quality, while the wives' and children's clothes in some cases were of markedly higher quality than is usual here. Thus, silk and artificial silk are used here only exceptionally, except for stockings, and the prices for clothes wholly or partly of silk are in Stockholm, owing among other things to high duties, considerably higher than in Detroit. In some cases commoner qualities of artificial silk are used than that in the samples. As regards the particular articles, the following remarks may be made : I. Men's clothing, 8: cotton socks. The price given corresponds to the sample. Here, however, woollen socks are used to a greater extent at a considerably higher price and of a more lasting quality. 68 REPORTS ON THE DIFFERENT CITIES I. Men's clothing, 10 : cotton gloves. The type of gloves shown in the sample is hardly to be met with in Stockholm. The price is, therefore, practically an estimate. Dubbed leather gloves are often used as outdoor working gloves, otherwise thinner gloves of cotton or skin are used. II. Women's clothing, 9: stockings, silk or rayon. The quality shown by the sample is considered here as quite high. The usual quality here costs about 3.75 kronor. III. Girls' clothing, 3: silk or rayon dress. The sample showed a very high quality which, practically speaking, is not used in children's clothes here. A good child's dress of another material costs here about 20 kronor. The consumption of clothing articles in the Swedish budget is affected by the commoner but often more lasting material of such articles. It is also the case to a very great extent that the wife makes clothes for herself and her children out of bought material. A less special enquiry among 175 families shows among other things that the articles which are found in the Labour Office's list of women's clothing only represent from 45-50 per cent, of their entire clothing account as against 72 per cent, in the Detroit enquiry. TABLE IV. — MEDICAL EXPENSES Prices in October 1930 Kr. Visit to doctor House call Visit to dentist 5.00 10.00 5.00 TABLE V. — MISCELLANEOUS EXPENSES Prices in October 1930 Kr. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Blanket Sheet Pillow-case Cotton towel Cotton or linen tablecloth Oilcloth Transport {1 return ticket) Barber expenses 1 hair cut (man) 1 hair cut (child) 1 shave Moving pictures (1 ticket) Newspapers 1 daily paper 1 Sunday paper Tobacco 20 cigarettes Bridge 10 cigarettes Arab Tiger Brand 1 kg Laundry work sent out 1 man's shirt 1 sheet Postage (1 internal letter) Telephone (1 call from public station) . . . 15.00 4.50 1.75 0.60 5.00 3.50 0.15 1.75 1.25 0.40 1.00 0.15 0.20 0.50 0.50 20.00 0.75 0.50 0.15 0.20 STOCKHOLM (SWEDENÌ 69 APPENDIX B Memorandum regarding a method of comparing food costs in different places, suggested by the Swedish Social Board In comparing the cost of food in different places consideration should be given to the quantity as well as the quality of the food. The first requirement is met simply by calculating the caloric content of the food. In comparing the cost of living at two places the cost of a given number of calories of the same composition should be calculated, possibly with due reference to climatic factors and the different nutritive requirements of different races. With the help of expert physiological knowledge, it ought, in any case, to be fairly easy to solve this problem without allowing too much margin for arbitrary approximations. When quality is taken into account, the food budget should be divided into two parts. In the first should be ranged the relatively few (staple) articles of food which form the main basis of nutrition. The composition may vary somewhat between different places but it seems to be fairly homogeneous at least for countries of Western civilisation. All the other foods should form the second group. A calculation should be made of the nutritive value of the two groups respectively. The sum of the caloric values of the two groups should previously have been reduced, through a proportionate reduction of all the items in the richer budget or through an increase of the items in the poorer budget, to a uniform quantity. If it is found that the two groups in the places compared are of different weight the respective weight of the groups should be calculated again on the basis of the conditions in that place which is taken as a norm. If, for instance, a place is taken as a norm where both groups form 50 per cent, of the nutritive value respectively and it is compared with a place where the relation is respectively 55 and 45 per cent., the cost for the former group should consequently be decreased in the relation oí 55 to 50 and the cost for the latter group should be increased in the relation of 45 to 50. It seems that on the basis of these reductions it would be possible to arrive at a truer picture of the relative cost of food than by Irving Fisher's formula. The above method has the advantage that — although it is necessary in order to arrive at a qualitative comparability to increase or decrease the quantities of all foodstuffs — their relation within the two groups remains nevertheless constant. A change in the relation between the two groups seems to represent in a satisfactory manner the change also in the quality of the budget. If a comparison is made of the composition of budgets between different income groups (of the same social class at the same place and time) the greatest difference is that with increasing income the primary foodstuffs lose in relative importance and higher weight is given to the second group. It is not overlooked, however, that the elasticity of consumption of different foodstuffs varies considerably and that it is therefore in each practical case hardly reasonable to change the consumed quantities of all items in exactly the same proportion. These shortcomings, however, can hardly 70 REPORTS ON THE DIFFERENT CITIES be avoided without an arbitrary treatment of the material, and are hardly likely to be of great practical importance. A calculation, on the above method, of the cost of food in Detroit and Stockholm is appended. In agreement with the calculation of the Labour Office the Swedish weights refer solely to Stockholm conditions. It will be seen that the ratio between the cost of food in the two places is somewhat different from that calculated by the International Labour Office. Stockholm, 2 July 1930. (signed) HUGO HEYMAN. COMPARISON BETWEEN THE COST OF FOOD IN STOCKHOLM AND IN DETROIT 1 Detroit Stockholm I. Group A. Quantity kg. Wheaten Hour 155.5 Rye flour (other flour) . . 31.1 Ordinary rye bread . . . 55.5 Swedish hard bread (rye) . 44.5 Wheat bread 28.0 Breakfast foods 31.4 Potatoes 389.4 Peas and beans 8.3 Sugar 108.» Syrup 4.3 Oleo-margarine 18.8 Total — Group B. Other articles — Total A and B . . . — 549,508 111,612 141,127 134,390 72,436 117,640 260,984 28,621 435,541 13,690 141,174 Cost Kr. 60.65 10.89 37.19 29.82 26.88 48.67 50.62 6.64 42.47 8.13 26.13 2,006,723 348.09 Calories Calories Quantity kg. 87.0 3.2 50.9 307,295 11,389 129,367 — — 236.1 27.5 268.3 5.7 93.3 3.5 11.6 Cost Kr. 34.76 2.40 38.18 — 611,067 101,339 179,786 19,706 373,322 11,096 86,955 158.12 31.10 55.78 5.13 46.96 3.01 21.69 1,831,322 397.13 2,031,572 1,645.82 3,862,894 2,042.95 2,482,184 1,314.80 (appr.) 4,488,907 :1,662.89 II. The Stockholm figures reduced to the caloric value of the Detroit budget (approximately): Group A Group B Total A and B . . . Calories Kr. number per cent. 1,727,000 44.7 300.— 2,136,000 55.3 1,131.— 3,863,000 100.0 1,431.— Calories Kr. number per cent. 1,831,000 47.4 397.— 2,032,000 52.6 1,646.— 3,863,000 100.0 2,043.— III. Recalculation of the costs of groups A and B in Stockholm with regard to their relative caloric percentages in the Detroit budget: Group A Group B Total 300 . | ^ 4 44.7 ^2 ß 1,131 . ¿=V 55.3 Stockholm 318 kr. 1,076 „ 1,394 „ . IV. If the cost in Detroit is taken as 1 the relation for Stockholm is 0.682. 1 The modifications necessitated with regard to differences in race and climate are neglected. STOCKHOLM (SWEDEN) 71 APPENDIX C Attempt at a Comparison between the Expenditure of a Worker's Family for Housing in Detroit and Stockholm The type of dwelling for which the cost has in the first place to be determined is the ordinary form of dwelling for the hundred workers employed at the Ford works in Detroit whose standard of living was investigated by the United States Bureau of Labour Statistics. The type of dwelling in question is described as follows : "The family occupies generally a separate house (61 cases in a hundred), or a whole floor in a two-family house (32 cases). The houses are mostly detached wooden houses situated in improved streets with street lights. The house has four or five rooms (76 cases) and bath-room (62 cases) and is provided with w.c. (indoors), running water (hot and cold in 65 cases), kitchen sink and sewer connection. All rooms have outside exposure and there are no dark rooms. The house has one room or more per person (77 cases). The usual arrangement of a four or five roomed house with four or five persons, consisting of husband, wife and two or three children, consists of two or three bed-rooms, a living-room or living-diningroom and a kitchen or kitchen-dining-room. The heating usually consists of fire-places or stoves, but these are found in only half of the rooms. Central heating is found in 44 cases. Houses are, in the majority of cases, rented, but 32 families lived in their own houses." The type of dwelling so described is comparatively unusual in Stockholm, at least among the working classes. It ismetwith only among barely one-fifth of the inhabitants of the city, who live outside the town, properly speaking, in suburbs, nearly half of which (reckoned by population) are incorporated with Stockholm, while the rest (separately or together with others) constitute separate communes. The distance from the centre of the town mostly does not exceed 10-15 kilometres, and good means of communication exist by railway, tramway or omnibus. The buildings erected in such districts consist generally of detached two-storey wooden houses, mostly provided with one or two rooms and a kitchen on the ground floor and a few rooms on the first floor. Where the owner of such a house is a workman or a person in a similar economic position, his family not infrequently only lives on the ground floor, while the upper rooms are let out to another family. In this way two dwellings are constituted, each consisting of one or two rooms and kitchen, which number of rooms is the usual number for workers' dwellings in Stockholm. This is illustrated by the fact that in the two districts (Enskede- and Brommaroten) which in great part are built in the manner just described, the distribution of dwellings as regards size, according to the housing census of 1925, did not differ much from that prevailing in the inner town. In both cases dwellings of one or two rooms and kitchen predominate, constituting in the one case about one-third, and in the other case a quarter of the whole. Dwellings of 3-5 rooms and kitchen make up together somewhat over one-fifth in 72 REPORTS ON THE DIFFERENT CITIES the inner town and about a quarter'in the outer districts referred to. In the inner town about nine-tenths of the dwellings are rented. In the outer districts about two-thirds of the small dwellings consisting of 1-2 rooms and kitchen are rented, while on the other hand this is the case with only one-third of the dwellings with from 3-5 rooms, while the remaining two-thirds are occupied by the owners. The dwellings in the said outer districts, moreover, appear to be supplied with practically the same conveniences (water supply and drainage, w.c, electric light, gas, etc.) as the American dwellings. Bath-rooms, hoivever, are found only in at most one-tenth of the small dwellings, while they are probably found in about two-fifths of the 3-5 roomed dwellings. About onethird of the dwellings are heated by central heating, the rest with cooking ranges in the kitchen and tiled stoves in all the other rooms. The rents x for such dwellings, according to the Rent Returns for the end of 1929 and beginning of 1930 were as follows: «IT IN KRONOR PER YEAR FOR DWELLINGS 1 room and kitchen 2 rooms »? )> 3 »? M JÏ 4 ?» M ÎÎ 5 J? I without central heating with ,, j> without 5 ?> with 5 5) without > i> with > JS without > )> with > >> •without » ÎS with 9 >> Inner town 628 1,062 1,009 1,604 1,479 2,192 1,931 2,799 2,434 3,496 Suburban area 4 7 5 - 498 726- 895 684- 707 907-1,238 852- 929 1,177-1,614 1,159-1,282 1,516-1,856 1,463-1,470 1,841-2,373 The rents in the suburban area are therefore considerably lower than in the inner town, but this is accompanied by higher costs and loss of time in travelling to and from the workplace, etc. It should be pointed out that the rents for dwellings with central heating are given exclusive of the charge for the heating itself, which on an average would amount to about 100 kronor a year for a one-room dwelling, and for larger dwellings increases by about 50 kronor for every additional room. As has been said, however, three to five-room dwellings in the suburban area are principally occupied by the owners. Building and maintenance costs for such a home are difficult to give generally, as they vary considerably according to the age, size, character and situation of the house. By way of guidance one may take the costs of the so-called small cottages by means of which the city of Stockholm endeavoured to assist the less well-to-do classes to better housing and which have in recent years been erected in the suburban area to the number of several hundreds. These cottages, which consist of a house for a single family, are built of wood on a concrete foundation and contain up to four rooms and kitchen with modern conveniences (including central heating, warm water and bathroom), are built of standardised material which the town supplies to intending owners who are also granted building loans up to 90 per cent, of the costs of building and may make up the remaining 10 per cent, by their own work on the 1 These rents include all outgoings for maintenance of the building, water, chimney-sweeping, etc., but not for heating, electric light, gas, etc. Taxes in Sweden are principally based on income and have no connection with the kind or size of dwelling occupied. STOCKHOLM (SWEDEN) 73 house. These cottages are estimated to cost about 11,400 kronor to build and the total yearly costs amount to about 950 kronor; this includes the charge for the site, which is granted by the city on a so-called ground lease (60 years' lease). As may be seen from the foregoing, the type of dwelling just described is, so far as Stockholm is concerned, only applicable to the suburban population and not even for the whole of such population. The overwhelming majority oí the working-class population of Stockholm, even the better-paid, live in the large tenement houses in the inner town and are therefore most comparable to the 7 per cent, of the Detroit workers included in the enquiry who lived in "apartments ". These were reckoned on an average as containing 4.1 rooms, while the number of inhabitants constituting a family was 4.4. The dwellings were principally in stone-built houses and were provided with w.c, running warm and cold water and bathroom. Cellars existed, but no pantries or boxrooms. While these dwellings were evidently chiefly of a modern type, only about one-third of the working-class population of Stockholm (that is to say, in the inner town) occupy modern dwellings, while the remainder must be satisfied with old tenements. The last-mentioned type of older dwellings may be said to consist of a large kitchen and one or two rooms, while the kitchen is also used as a living and sleeping room. Usually there is a pantry, cellar and boxroom. In the majority of cases there is a w.c, water supply and drainage installed in the dwelling and also gas and electric light. Heating is carried out by tiled stoves in every room and a cooking range in the kitchen. The fuel consists principally of wood and in some cases of coal or coke. The total floor area may be estimated at 25 to 40 square metres for a one-room dwelling and 45 to 60 square metres for a two-room dwelling. The total floor area may be considered as increased by 15 to 20 square metres for every additional room. The modern type of dwelling, at least so far as small dwellings are concerned, has about the same area as the older ones, but this area is distributed in a different way, the area of individual rooms being less, so that there is space for other important accommodation such as larders, hall, bathroom, alcoves, etc. As regards modern conveniences, in addition to the bathroom there is central heating and warm water. The rent for a modern dwelling, as appears from the foregoing rent table, is generally about 50 per cent, higher than for one of the older type with the same number of rooms. The cost may, however, be reduced in the case of persons who are in a position to invest a little capital in the co-operative building societies in whose houses probably about one-tenth of the population of Stockholm lives. These societies usually reckon for modern dwellings of one room and kitchen a yearly cost of 700 to 900 kronor, and for two-room dwellings 1,100 to 1,500 kronor, including heating and hot water and 6 per cent, interest on the invested capital, but exclusive of sinking fund (which usually amounts to about 100 or 200 kronor a year, as the case may be). This is based on a rent of 20 to 25 kronor per square metre, while on the general market this would usually be 30-40 kronor. In order to ascertain what effect these higher rents have on the budget of a working-class family, it is necessary to know the annual income of a Stockholm worker. According to the wages statistics of the Social Board, the average earnings of a male industrial worker in the year 1929 amounted to about 3,900 kronor, but in different occupations 74 REPORTS ON THE DIFFERENT CITIES and branches the average income varied from about 2,700 kronor up to 5,000 kronor or more. What class of dwelling a worker with these various levels of income can obtain depends upon what part of his income he is prepared to spend on rent. In the family statistical enquiry of the Social Board for 1922-1923, which in Stockholm covered 85 working-class families, it was found that expenditure for housing among the workers did not exceed on an average 12 per cent, of the total income. At that time, however, rents were subject to Government regulation and were therefore comparatively low. Since then there has been an increase in rent of about 20 per cent, which has resulted in an increase up to about 20 per cent, (from 15 per cent, in 1914) in the proportion for rent in the normal budget forming the basis for the calculation of the official index number for the whole kingdom. For Stockholm alone, however, the normal portion of income expended in rent must certainly reach or even exceed the 23 per cent, which constituted the proportion of expenditure for housing in the Detroit enquiry. The following table shows what a working class family with a yearly income varying from 2,500 to 5,000 kronor would pay for rent on the assumption that 20, 25 and 30 per cent, of income respectively is applied for that purpose: Yearly income Expenditure on rent with a proportion of 20 per cent. 25 per cent. 30 per cent. 2,500 500 625 750 3,000 600 750 900 3,500 700 875 1,050 4,000 800 1,000 1,200 4,500 900 1,125 1,350 5,000 ,1,000 1,250 1,500 Even if one takes so high a proportion as 25 per cent, it will be found that the lowest-paid group of workers can hardly obtain more than a one-room dwelling of the older type, while with the medium incomes a family can rent a modern one-room dwelling or a two-room dwelling of the older type. Only families on the highest level of income, however, and hardly even they, can afford a modern two-room or an old three-room dwelling. This explains the most striking difference between Swedish and American housing standards, namely, the greater overcrowding in Stockholm, at least reckoned according to number of rooms. It must, however, be remembered that a Stockholm workingclass family is in general smaller than an American one. According to the family statistical enquiry for 1922-1923, already referred to, the family of an industrial worker comprised on an average 2.99 units of consumption, while the corresponding figure for Detroit workers in 1929 was 3.27 according to the same American scale of units of consumption. Since 1923 the size of families has certainly still further decreased in Stockholm, especially by reason of the considerable decrease in the birth rate during the last few years. HELSINKI-HELSINGFORS (Finland) The enquiry was conducted by the Bureau of Social and Statistical Research of the Ministry of Social Affairs. Dr. Harmaja, the Director of this Bureau, gave valuable advice at various stages of the enquiry. FOOD The prices of foodstuffs relate to September 1930. Information on family budgets in Finland was obtained from the publication Elinkustannukset tilinpitokaudella 1920-1921 1 . From this source it was possible to select 20 articles accounting for 68.3 per cent, of the total expenditure on food in Detroit and for 74.3 per cent at Helsinki in 1920-1921, for which prices and quantities consumed were known in both towns. These are given in the Appendix, table I. The results of the calculations are as follows: Ratio of cost of food in Helsinki to Detroit, based on 20 foodstuffs (Detroit = 100) : (1) Using Detroit weights . . . . 70.5 per cent (2) „ Helsinki „ 47.6 „ „ (3) Average of (1) and (2) 57.9 „ „ The great discrepancy between ratios (1) and (2) is due to the considerable difference in the habits of consumption in Helsinki and Detroit. The use of ratio (3) gives for Helsinki a figure of 12,784 marks. This result was approved by the Finnish statistical authorities. HOUSING The problem of housing has presented considerable difficulties in Finland owing to the special character of the housing accommodation in this country. Workers' dwellings of the size indicated by the Detroit enquiry are in fact almost unknown in Finland. Moreover, the size of the rooms is generally somewhat larger than in the U.S.A. 1 Suomen Virallinen Tilaslo, Socialisia Erikoistulkimuksia V. 76 REPORTS ON THE DIFFERENT CITIES A special enquiry was conducted in November and December 1930 by the Bureau of Social and Statistical Research and showed that the rent for 3-roomed dwellings (2 rooms and kitchen) was about 12,230 marks and for 4-roomed dwellings (3 rooms and kitchen) about 16,560 marks. A further enquiry was made in 1931 into the rents of villas in the outskirts of Helsinki, from which it appears that the rent of a dwelling of 3 rooms and kitchen varied between 11,200 and 12,600 marks, or an average of 11,900. Such villas are equipped with running water, w. c. and scullery. The corresponding rent for 3 % rooms and kitchen is given as 13,500 and the Bureau of Social and Statistical Studies recommends the adoption of this figure, as it is considered after consultation with the Swedish statistical authorities to be comparable with the rent figure adopted for Stockholm. It represents the "upper limit". FUEL AND LIGHT The original price data are given in the Appendix, table II. Owing to the fact that coal is not used for heating in Finland, where wood is abundant, and where gas and electricity are not yet fully developed for household use, the items of the Detroit budget cannot be compared directly. The actual consumption per "unit m a n " of these items as shown by family budget enquiries has been communicated by the Bureau of Social and Statistical Studies as follows: Wood Gas Electricity L a m p oil Quantity 1,200 kg. 18.3 m 3 19.9 kwh. 5.6 litres These quantities applied to the prices give a total of 1,036 marks. The figure, however, relates to a dwelling of 0.57 rooms per unit-man as compared with about 1.4 rooms at Detroit. For a dwelling corresponding to the one at Detroit, the expenditure is estimated at 2,486 marks. Finally, a small allowance must be made for expenditure on matches, candles, etc. This is estimated at 40 marks, giving a total of 2,526 — a calculation which has been approved by the Bureau of Social and Statistical Studies. HELSINKI-HELSINGFORS (FINLAND) 77 CLOTHING The list of clothing prices is given in the Appendix, table III. Considerable difficulty was found in obtaining prices for the representative selection of articles, especially as regards children's clothing. In Finland, children's clothing articles are very rarely bought ready-made but are usually made at home. It was therefore considered desirable, on the advice of the Bureau of Social and Statistical Studies, to base the cost of clothing on the prices for adults' clothing only (Method II). The results obtained by the two usual methods are as follows: Method I Method II 7,458 marks 6,988 Accordingly, the figure of 6,988 marks has been adopted. MEDICAL EXPENSES No compulsory system of sickness insurance exists in Finland. The cost of medical expenses has been evaluated on the basis of the cost of doctors' and dentists' consultation fees (Appendix, table IV), yielding a cost ratio of 71 per cent and an expenditure of 1,807 marks. MISCELLANEOUS EXPENSES Table V gives the prices of the "miscellaneous items". The comparison of these prices gives a cost ratio of 70 per cent corresponding to an expenditure of 9,380 marks. L I F E INSURANCE For life insurance the "purchasing power equivalent" of $2,076 is estimated at roughly 60,000, giving an annual payment of 1,800 marks. TAXATION The total of the previous items amounts to about 47,000 marks. According to information supplied by the Bureau of Social and Statistical Studies, the total amount of taxation on an income of 50,000 marks is 4,369 marks (State tax, local tax and ecclesiastical tax) and on an income of 45,000 marks, 3,790 marks. The amount due on an income of 47,000 marks has been estimated at 4,050 marks. 78 REPORTS ON THE DIFFERENT CITIES SUMMARY September 193© Marks Food Rent Fuel and light Clothing Medical expenses Miscellaneous expenses Life insurance Taxation Total . . . . 12,784 13,500 2,526 6,988 1,807 9,380 46,985 1,800 4,050 52,835 In order to bring the data for the different towns to a uniform date, viz. January 1931, the following cost-of-living index numbers have been used: Index numbers Sept. 1930 Jan. 1931 Food Fuel and light . . . . Clothing Miscellaneous expenses 893.7 1,225.5 853.8 — 828.4 1,168.8 841.8 — Coefficient of reduction 92.7 95.4 98.6 95.0 1 1 Estimated figure. SOURCE: Sosialinen Alikakauskirja: 1930, No. 12; 1931, No. 2. January 1931 (rounded off to the nearest 10 marks) Marks Food Rent Fuel and light Clothing Medical expenses Miscellaneous expenses Life insurance Taxation Total . . . . 11,850 13,500 2,410 6,890 1,810 8,910 45,370 1,800 3,790 50,960 APPENDIX [Unless otherwise stated, the data reproduced in the tables have been collected and supplied by the Bureau ot Social Research and Statistics ol the Finnish Ministry of Social Aflairs.] TABLE I. FOOD Price per kg. Price per kg. as used in the at Helsinki in calculations ' September 1930 (1) (2) Fmks. Fmks. Annual quantity consumed at Helsinki per unit man in 1920-1921 (3) Kg. 14.92 1. Beef 18.7 21.00 (a) Fresh, steak . . . . 13.11 (b) Roast 10.64 (c) Stew . 15.17 15.17 2.5 2. Veal (fat and milk calf) . 17.08 8.7 3. Pork, fresh 17.60 (a) Breast 16.57 (b) Ham 20.46 0.8 27.67 4. Pork, salt 16.71 (a) Bacon 17.00 (¿>) Ham and shoulder . 19.75 19.75 6.3 = (c) Other, breast . . . 20.2 9.22 5. Sausage 5.13 6. Fish, fresh 10.08 (a) Baltic Sea herring . 12.46 6.96 7.1 (b) Perch 5.67 (c) Pike 8.25 7. Fish, salt 389.8 1.55 1.55 (a) Baltic Sea herring . 26.95 18.8 (b) Herring 28.10 8. Fresh milk 25.80 9. B u t t e r 2.4 1st grade 17.00 17.00 1.0 19.88 2nd grade 21.75 10. B u t t e r substitutes (mar18.00 garine) 1.3" 15.07 11. Cheese 18.00 (a) Full-cream 12.13 (b) Half-cream . . . . 3.33 19.00 19.00 33.70 4.93 12. Lard and lard substitutes 4.93 13.30 6.06 (a) Lard 6.06 41.00 3.09 (i>) Lard substitutes . . 3.09 1.50 11.50 13. Eggs 12.00 14. Flour, "wheaten . . . . 11.50 15. Bread, wheaten . . . . 11.00 201.22 4 16. Bread, rye 1.00 1.00 13.00 6.00 17. Fresh fruits 7.13 (a) Apples 4.88 (b) Bananas 5.20 24.00 24.00 (c) Oranges ' The prices in this column are arithmetical averages of the corresponding prices in 18. Potatoes column (2). * Sausage and "charcuterie". s Fats. * 268.3 litres = 201.22 kg. 19. Sugar SOURCE: supplied by t h e Finnish statistical authorities. (a) RePrices fined, lump sugar. Quantities taken from Suomen Virallinen Tilasto, Sosialisia Eri(b) Granulated . . . . koistutkimuksia V, Elinkustannukset Tilinpitokaudella 1920-1921, 20. Coffee Helsinki 1925, p p . 82-83. 80 REPORTS ON THE DIFFERENT CITIES TABLE 'II. — FUEL AND LIGHT Prices in September 1930 Fmks. ' Wood Gas Electricity Paraffin kg. m3 kwh. It. TABLE III. — CLOTHING I. Men's clothing 1. Felt hat 2. Cap 3. Woollen suit 4. Overcoat 5. Cotton trousers 6. Cotton shirt 7. Union suit, cotton 8. Cotton socks 9. Boots or shoes 10. Cotton gloves 11. Tie 12. Belt 13. Overall II. Women's clothing 1. H a t 2. Dress, rayon 3. Dress, cotton 4. House dress or bungalow apron 5. Woollen coat 6. Petticoat or slip 7. Bloomers, step-ins or drawers 8. Shirt or vest, cotton 9. Stockings, rayon 10. Shoes . 11. Gloves, cotton III. Children's clothing (ai Boys 1. Cap 2. Woollen suit 3. Cotton trousers 4. Overcoat 5. Sweater 6. Cotton shirt 7. Union suit, cotton 8. Cotton socks 9. Boots (b) Girls 1. H a t 2. Dress, cotton 3. Dress, rayon 4. Woollen coat 5. Sweater 6. Petticoat or slip, cotton 7. Union suit, cotton 8. Bloomers, drawers, cotton 9. Cotton stockings 10. Shoes 0.195 1.30 2.40 2.00 Prices in September 1930 Fmks 100.00 30.00 650.00 600.00 65.00 30.00 50.00 11.00 175.00 12.00 25.00 12.00 90.00 90.00 300.00 55.00 50.00 600.00 27.50 45.00 14.50 29.00 150.00 20.00 26.00 300.00 38.00 240.00 68.00 25.00 40.00 19.50 115.00 20.00 40.00 200.00 300.00 60.00 20.00 25.00 13.50 12.00 105.00 HELSINKI-HELSINGFORS (FINLAND) TABLE IV. MEDICAL 81 EXPENSES Prices in September 1930 Fmks. Visit t o doctor House call Visit to dentist T A B L E V. 50.00 75.00 40.00 MISCELLANEOUS EXPENSES Prices In September 1930 Fmks. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Blanket Sheet, cotton Pillow-case Cotton towel Cotton or linen tablecloth (average price 125 cm x 125 cm) Table oilcloth (115 cm x 115 cm) Daily transport (simple course) Barber expenses: 1 hair cut (man) 1 hair cut (child) 1 shave Moving pictures (1 ticket) Newspapers: Daily paper Sunday paper Tobacco: 25 cigarettes 100 gr. of smoking tobacco Laundry work sent out: 1 men's shirt 1 sheet Postage (1 inland letter) Telephone (1 call from public station) . . . - 75.00 55.00 17.50 8.00 49.75 38.00 1.00 7.50 7.00 3.50 8.00 1.25 2.50 3.50 25.00 3.50 2.50 1.50 0.50 6 PARIS AND MARSEILLES (France) For these two towns, valuable information was supplied by two factory inspectors of the Ministry of Labour who were fully acquainted with the local conditions in their respective districts; statistics published in the Bulletin of the " Statistique générale de la France " and special information supplied by this Office as indicated below have also been utilised. FOOD The prices of foodstuffs in each of these towns are obtained regularly by the "Statistique générale de la France" derived from information collected by the local authorities every three months. Those for Paris are published in the official Bulletin and relate to January 1931 ; those for Marseilles are not published in this Bulletin but were communicated to the International Labour Office by the "Statistique générale de la France" in connection with the Office's annual enquiry into the level of retail prices in certain countries, and relate to February 1931. Certain supplementary information as to food prices in Paris was also supplied in this way. Some difficulty arose in making the calculations for France owing to the absence of any official family budget enquiries. The data collected by the British Board of Trade in 1905 1 and some data on consumption drawn up by the "Commission régionale du coût de la vie de la région parisienne " were examined, but it was not found possible to use them, the former being too old and the latter entirely hypothetical. Fortunately, a recent study published in the Bulletin du Comité technique de l'alimentation 2 gives some carefully compiled figures as to the average quantities consumed of certain foodstuffs based principally on the "octroi" statistics. From this publication it has 1 BOABD OF TRADE: Report of an Enquiry into Working Class Rents, Housing and Retail Prices in France, Cd. 4512, 1909. * Cf. Supplement to Number 101 for 15 April 1931. PARIS A N D MARSEILLES (FRANCE) 83 been possible to select 23 articles accounting for 62.3 per cent. of total food expenditure at Detroit in 1929, and for 63.9 per cent, at Paris in 1931 (according to the calculations of the "Comité technique de l'alimentation"), for which consumption weights are available for the two cities (Detroit and Paris). In the absence of any reliable information for Marseilles, it has been necessary to use these data for this city also. The data (French prices and weights) used in the calculations are given in Appendix A, table I. The results obtained are as follows: Ratio of cost of food in Paris and Marseilles to Detroit, based on 23 foodstuffs (Detroit = 100) : (1) Using Detroit weights (a) Paris (6) Marseilles (2) Using Paris weights (a) Paris (Z>) Marseilles (3) Average of (1) and (2) (a) Paris (b) Marseilles 85.9 per cent. 78.5 81.4 72<7 83.6 75.5 By applying ratios (3) (a) and (3) (i>) to the Detroit total food expenditure, corresponding totals are obtained of 11,860 francs for Paris and 10,710 francs for Marseilles. ' HOUSING The housing situation in French cities is extremely complex owing to the legal restrictions imposed during and since the war. As a result it frequently happens that rents for identical housing accommodation vary enormously. We are informed that solely owing to the operation of the rent restriction Acts, one dwelling may be rented at double the figure of another identical dwelling. This phenomenon, as pointed out in Chapter II, exists in all the countries which have experienced rent restriction, but it seems exceptionally marked in France. The experts who collaborated with the International Labour Office have supplied a vast amount of information based on personal enquiries concerning the conditions in their respective cities. It is unnecessary to reproduce this in extenso, but some of the data supplied in respect of Marseilles are given in Appendix B. After careful consideration and analysis of the 84 REPORTS ON THE DIFFERENT CITIES data and in consultation with other competent authorities, it may be concluded that the rent representing the "lower limit" should refer to apartments of 4 to 5 rooms of the type of a "moderate rent" dwelling as available in application of the housing law of 13 July 1928 (loi Loucheur). Such dwellings are situated in new buildings, and are equipped with running cold water and inside w.c. However, they do not generally contain bathrooms. The figures are approximately 3,900 francs per annum in Paris and 3,300 francs in Marseilles 1, to which various charges (water supply, fire insurance, etc.), amounting to about 500 francs per annum must be added. As regards the "upper limit", the "moderate rents" payable in respect of independent houses might have been taken, since these dwellings correspond most closely to the description of the Detroit house, but for the fact that they are not generally equipped with bathrooms. In the circumstances it has been considered justifiable to increase these rents (6,000 francs for Paris; 5,000 francs for Marseilles, including various rates, fire insurance and an addition for a small garden) by 1,000 francs each, so as to cover also a bathroom. In the opinion of the experts which the Office has consulted this solution seems acceptable and these figures would also approximate to the rent in a modern building equipped with the latest comfort. Rents of 4,400 and 7,000 francs have therefore been adopted for Paris, and of 3,800 and 6,000 francs for Marseilles. FUEL AND LIGHT In the absence of official information, the calculations had to be based on data supplied by the experts in the respective towns. The average yearly consumption of coal or lignite has been given for Marseilles as amounting to 1,250 kg. for a family of 4 to 5 persons. This quantity has been subdivided between the two kinds of fuel according to the proportion in which these two articles of fuel are imported into the city of Marseilles. For wood, gas and electricity, the corresponding annual quantities are 325 kg., 600 cubic metres and 120 kwh. respectively. The following table shows the details of the computation: 1 For fuller information Housing Policy in Europe, Series G, No. 3, 1931. see INTERNATIONAL p . 216, footnote. LABOUR OFFICE: Studies a n d Reports, 85 PARIS AND MARSEILLES (FRANCE) Cost of fuel and lighting in Marseilles : Unit "Agglomérés " or house-coal . . Lignite Wood Gas Electricity Quantity consumed kg. „ „ m3 kwh. 875 375 325 600 120 Price in January 1931 Fr. Cost Fr. 37.50 328.13 26.00 97.50 36.00 117.00 0.955 573.00 1.59 190.80 Total: 1,306.43 For Paris the usual charge for heating, where central heating exists, amounts to 27.50 francs per month (for 12 months) and per radiator. Since an apartment containing 4 to 5 rooms is generally equipped with three radiators, the yearly expenditure amounts to 990 francs. The consumption of gas and electricity being assumed to be the same as in Marseilles the total expense for this section is found to be 1,754 francs. Figures of 1,306 and 1,754 francs have been adopted. This difference is fully justified by the different climates. CLOTHING Considerable difficulty was experienced in obtaining satisfactory prices for the samples of clothing owing to the great ranges of prices and qualities of articles commonly consumed in France and to the important differences between American and French clothing. The results obtained for the two cities have been averaged for each article (as is also the case for Berlin and Frankfort), thus yielding a series of prices which may be assumed to be fairly representative. The prices of clothing articles (averages for Paris and Marseilles) are reproduced in Appendix A, table II, and refer to January 1931. By application of the two usual methods the following results are obtained: Method I Method II 5,327 francs 5,389 „ It is considered that the results obtained by Method I give the most accurate result for the purposes of this enquiry. MEDICAL EXPENSES The compulsory system of social insurance applies only to workers earning less than 25,000 francs per annum. For this 86 REPORTS ON THE DIFFERENT CITIES reason the social insurance contributions payable under the Act are not taken into account. The prices of medical services in January 1931 are given in Appendix A, table III. By applying the usual procedure, a ratio of 40.7 per cent., corresponding to 667 francs, is obtained both for Paris and Marseilles. MISCELLANEOUS EXPENSES The data supplied are given in Appendix A, table IV. The calculation yields a figure of 70 per cent, for Paris and 71.7 per cent, for Marseilles. The corresponding total costs are 6,084 francs and 6,169 francs for Paris and Marseilles respectively. L I F E INSURANCE The "purchasing power equivalent" of 2,076 dollars is estimated at about 38,000 or 41,000 for Paris, and at about 35,000 or 38,700 for Marseilles, according as the upper or lower rent figures are utilised. The corresponding annual premiums are about 1,140 or 1,230 francs for Paris, and 1,050 or 1,161 francs for Marseilles. TAXATION Working men's incomes in France are subject to income tax. For a family consisting of the parents and 2 % children, the father being the only income-earner, the tax is calculated as follows : Family income per annum Abatement applicable to all incomes 10,000 Abatement of 3,000 francs per dependant 10,500 Total abatements Remaining taxable income Whereof the first 10,000 francs are taxed at 5 per cent, and the second at 7.5 per cent., in this case therefore Reduction for 2x/2 minor dependants: 25 per cent, of the above amount Remaining amount due for income tax Francs 30,100 20,500 9,600 480 120 360 By similar calculations the tax payable has been computed for the incomes considered, as follows: 360 or 499 francs for Paris, and 287 or 370 francs for Marseilles, for the lower and upper estimates respectively. PARIS AND MARSEILLES (FRANCE) 87 SUMMARY January 1931 The whole of the data in the above paragraphs relate to January 1931, with the exception of the food prices in Marseilles, which relate to February. No official information is available as to the change in food prices in Marseilles from January to February 1931. The official figures for Paris (based on 29 articles) show a small decrease from January to February of about IV2 per cent. Applying this figure to Marseilles, gives 10,886 francs. The figures below are rounded off to the nearest 5 francs. Paris Fr. Food Housing Fuel and light Clothing Medical expenses . . . . Miscellaneous expenses. . Life insurance Taxation Total . . . . 11,860 4,400-7,000 1,755 5,325 670 6,085 30,095-32,695 1,140- 1,230 360- 500 31,595-34,425 Marseilles FT. 10,885 3,800-6,000 1,305 5,325 670 6,170 28,155-30,355 1,050- 1,160 285- 370 29,490-31,885 R E P O R T S ON T H E D I F F E R E N T CITIES APPENDIX A TABLE I. — FOOD Marseilles Paris (1) (2) (3) (4) Quantity consumed per year by 4.5 persons in Paris in 1928/29 (5) Fr. Fr. Fr. Fr. Kg. Prices as used in t h e calculation ' Prices in Marseilles in February 1931 Prices in Paris in January 1931 1. Beef roast a n d steak 30.05 26.20 26.20 30.05 42.12* (sirloin) 2. Beef (stew) (plat de 13.65 10.40 13.65 10.40 46.98 B côtes) 46.98 ' 18.14 • 21.71s 3 . Veal (a) "Quasi " (without 23.75 32.18 (14.04) bones) 15.75 17.25 (32.94) (b) Breast 17.75 8.64 17.75 16.50 ! 16.50 4 . Pork, fresh (rib or 1085 10.85 7.02' 10.00 10.00 spine) 5 . P o r k , salt, bacon (fat) 17.28 • 25.90 30.70 25.90 30.70 6. M u t t o n (chops a n d 13.15 11.20 8.64 s 13.15 11.20 roast) (leg) . . . . 7. Mutton (stew) (breast) 2 037 1.649 2.037 1.649 556.74 32.40 *• 2360 21.00 21.00 8. Milk, fresh (unskim25.00 med) 22.20 9. B u t t e r (fresh) . . . . 11.75 1175 6.75 10.80 10.80 (a) Istgny 7.85 7.85 6.75 12.50 12.50 (b) Fresh, superior . . 15.50 15.50 16.20 20.10 20.30 14.00 14.00 33.86 10. Margarine 19.25 19.25 2.25 2.25 648.00 1 1 . L a r d (French) . . . . 2.35 4.05 4.05 13.50 2.35 12. Cheese (Gruyère). . . 3.25 3.60 3.25 18.90 3.60 13. Eggs 4.85 4.85 14. B r e a d (white) . . . . 21.60 4.10 4.10 5.70 5.70 351.00 15. Flour (wheaten) . . . 1.10 1.10 1.28 1.28 12.96 3.15 3.15 3.35 16. Rice 3.35 35.64 » 3.55 3.55 4.25 17. Macaroni (spaghetti, 4.25 28.35 4.25 4.25 7.90 7.90 noodles) 18. Potatoes (ordinary). . 3.90 3.50 67.50 " 3.90 3.50 19. D r y peas (chick-peas) 18.50 21.65 13.50 18.50 21.65 20. White beans (Swis<0 . 2 1 . Vegetable t a b l e oil . . 22. Sugar, white (lump or 1 The granulated) prices in columns . . . (1) . a n d (2) are simple arithmetical averages of t h e corresponding prices in columns (3) and (4). * Price for August 1930. 3 Weighted average of t h e t w o prices 23. Coffee given in columns (3) a n d (4), using t h e quantities given in column (5). * S u m of roast-beef a n d ribs. £ Sum of " m a c r e u s e " a n d "10p l a t de côtes". • S u m of four qualities. » Breast. * Stew a n d shoulder. ' Middle ribs. B u t t e r of Charentes. " Sum of t w o kinds. " Sum of lump and granulated sugar. SOURCE: Prices for Paris taken from Bulletin de la Statistique générale de la France, April-June 1931, p. 363. Some additional information for Paris, as well as the prices for Marseilles were communicated to the International Labour Office by the "Statistique générale de la France " in connection with the Office's current enquiries into the level of retail prices in certain countries. Quantities taken from Bulletin du Comité de l'Alimentation, Supplement to No. 101, for 15 April 1931. PARIS AND MARSEILLES (FRANCE) 89 TABLE II. — CLOTHING Average prices ol Paris and Marseilles in January 1931. / . Men's clothing 1. Woollen suit 2. Overcoat 3. Cotton trousers 4. Cotton socks 5. Cotton gloves 6. Belt 7. Boots / / . Women's clothing 1. 2. 3. 4. 5. 6. 7. / / / . Children's (a) Fr. 550.00 460.00 50.00 8.00 10.00 17.00 120.00 Hat Dress, rayon Dress, cotton Petticoat or slip, cotton Bloomers, step-ins or drawers, rayon . . . Shirt or vest, cotton Gloves, cotton clothing 65.00 155.00 50.00 30.00 19.00 14.80 15.00 Boys 1. Cap 2. Woollen suit 3. Cotton trousers 4. Overcoat 5. Sweater or lumberjack, wool 6. Cotton shirt 7. Union suit, cotton 8. Cotton socks 9. Boots (b) Girls 1. H a t 2. Dress, rayon 3. Woollen coat 4. Sweater or lumberjack 5. Petticoat or slip, cotton 6. Bloomers, drawers, cotton 7. Cotton stockings 15.00 170.00 26.00 150.00 60.00 16.00 18.00 7.00 75.00 35.00 90.00 170.00 42.00 17.00 11.80 10.00 TABLE HI. — MEDICAL EXPENSES Paris and Marseilles January 1931 Fr. Visit to doctor House call Visit to dentist 20.00 25.00 15.00 90 REPORTS ON THE DIFFERENT CITIES TABLE IV,. — MISCELLANEOUS EXPENSES Prices in January 1931 Marseilles Paris Fr. FT. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Blanket Sheet, cotton Pillow-case Cotton towel Cotton and linen t a b l e c l o t h . . . . Table oilcloth Transport, weekly Barber expenses (a) 1 hair cut (man) (b) 1 hair cut (child) (c) 1 hair cut (wife) (d) 1 shave Moving pictures Newspaper Tobacco, 20 cigarettes 1 kg Postage Telephone APPENDIX B 80.00 30.00 7.00 3.00 20.00 24.00 15.00 — — — — — — 15.00 4.00 5.00 4.00 3.00 5.00 — 2.00 — 4.50 2.00-3.50 0.25 0.25 2.50 — 62.50 62.50 0.50 0.50 0.50 0.75 Memorandum on Workers' Housing Conditions in Marseilles1 During the last few years, in order to remedy the severe housing crisis in the large city of Marseilles, the Public Offices for Cheap Dwellings (Offices publics d'habitations à bon marché) in the Bouchesdu-Rhône department and of the City of Marseilles —• established, as will be remembered, in virtue of the Law of 5 December 1922, which codified previous legislation on cheap dwellings and small properties — have erected a certain number of blocks of houses in Marseilles itself as well as in the suburbs. By the law of 13 July 1928 (the loi Loucheur) important sums of money have been placed at the disposal of these bodies, with a view to improving the housing conditions of the worst-housed classes. Before proceeding to survey the housing conditions of the workers living in these new buildings, it may be interesting to give some account of the position of housing in general in the city of Marseilles. A few years ago an enquiry was conducted into the number of people occupying one-room dwellings and the following results were found : 4,256 dwellings occupied byy a single person 2,637 . 2 persons 1,347 , 3 651 , 4 361 , 5 122 , 6 102 , or over , 7 V 1 This memorandum is not given in full. PARIS AND MARSEILLES 91 (FRANCE) As regards two-room dwellings, the following results were obtained : 603 dwellings containing 6 tenants each 246 „ „ 7 111 ,, ,, 8 •, „ 36 „ „ 9 These figures are only intended to give an idea of the gravity of the housing crisis at Marseilles and of the conditions in which numerous workers are obliged to live. They are no doubt not the majority, and we shall give some information on the average figures obtained from our enquiry in the various working-class quarters of the centre of Marseilles. It is important to note that the population of the city of Marseilles has increased in these last years by 10,000 or 13,000 new inhabitants per year. Assuming one dwelling were to be allotted to every 4 persons, this means that about 3,000 dwellings would have to be erected each year. Moreover, it must be borne in mind that demolition of old property, new and widened streets necessitate the destruction of 300 or 400 houses per year. In order to prevent the housing crisis from becoming still worse, without any alteration in the existing condition of the city population, it would be necessary to build about 4,000 dwellings per year. What would be the effort necessary to solve the housing crisis at Marseilles, and to enable people living in conditions worse than those of the Middle Ages to move out of their insanitary hovels ? Experts in the matter give the enormous figure of about 20,000 dwellings. We shall now show by a few examples the housing conditions of the workers in the houses built by the above-mentioned Public Office since the war. Group of the Chartreux District : Total number of dwellings Dwellings with 4 rooms 172 108 îï )) à ,, ZI >> ?> ^ j , O l This group contains about 862 persons occupying these 172 dwellings. Most of these have a small garden. Basic annual rent: (with garden) for 4 rooms. . . . 1,310 francs » 3 1,048 „ ,, ,, 2 „ . . . . 786 ,, For 2 rooms without garden . . . 655 „ In the big tenement houses with several storeys the rent for a four-room dwelling (without garden) is 1,092 francs per year. To this price must be added various charges amounting to 5.10 francs per month or 61.20 francs per year for persons living in separate houses (pavilions) (2 flats on the ground-floor, and two on the first floor). These charges are 3.90 francs per month or 46.80 francs per year for tenants occupying houses with several storeys (tenement nouses). Moreover, tenants having small gardens at the back pay 13 francs a month per garden, or 156 francs a year. 92 REPORTS ON THE DIFFERENT CITIES Tenants having many children are granted reductions on the above rents. The reductions amount to: 3 per cent. for 3 children 6 4 9 5 s> 14 6 >> 20 7 » 30 8 „ or more j> These dwellings have inside w.c's., running water in the kitchen (at the sink); electricity; gas; Dutch oven heated with coal. Average number of rooms that can be heated, per family: 2. Bathrooms are not provided. A well sheltered wash-house is placed in the middle of the group of buildings where the housewives can easily do their washing. Water is supplied free of charge to all tenants. The total population of the group amounts to 862 persons or about 5 persons per dwelling. This group of cheap and sanitary dwellings is very well planned and well maintained. Group ai Chutes-Lavie. Total number of dwellings: 170, divided as follows: 10 dwellings of 5 rooms 14H 4 6 » >> 3 ,, 11 )> » 2 „ Total population of the group: 946 persons. Most of the tenants in this group have a small garden. Average number of persons per dwelling: about 5.5. The basic price for five-room dwellings is 1,310 francs per annum, to which must be added various charges and the rent of the garden, as was already indicated above for the group of Chartreux. The prices for the other dwellings are very similar to those indicated for the group of Chartreux. In this group are shops for the sale of groceries, but it must be noted that the Public Office does not insist on these shops. The Public Office for the Bouches-du-Rhône department has on its programme an important list of cheap dwellings to be built, 50 million francs being provided for this purpose, about 39 millions for 600 cheap dwellings and about 11 millions for 144 medium rented dwellings; a sum of 5 millions is reserved for demolition of uninhabitable dwellings. On 29 July 1930 the General Council of the department voted 110 millions for coping with the housing crisis. The dwellings in the above-mentioned groups are generally occupied by manual workers; they are usually let to families having a certain number of children. They must be considered as being privileged with respect to housing. All workers in Marseilles are far from living in as good housing conditions. In the working-class quarters of this town, these are very unsatisfactory from the point of view of hygiene and modern conveniences. We shall study now the housing conditions of workers and employees in two of the principal working-class quarters of the City of Marseilles. P A R I S AND M A R S E I L L E S (FRANCE) 93 Belle-de-Mai district. The dwellings of the workers are here situated in tenement houses, i. e. several-storey buildings — generally three or four — divided into flats. Each floor contains two flats: one with front view directly into the street, and another looking into a court-yard. These flats usually contain three rooms, consisting of a kitchen (10 or 11 square metres and often less), a rather large bedroom (16 to 18 square metres) and a very small room. The latter is often dark, the window being quite small and looking on the staircase. The w.c. is usually inside (next to the kitchen). The rent for these dwellings varies from 600 to 700 francs per year (it was 180-200 francs per year before the war) for tenants benefiting from the rent restriction laws. When, however, dwellings of this type are let to persons who are not pre-war tenants, the price for rent must be estimated much higher. One may say that on account of the housing crisis mentioned above the owners do not state a price. It seems that the rent for these three-room apartments in old buildings is 1,200 to 1,500 francs per year. The water rate is at the charge of the owner, as well as insurance of the building against fire. For four-room dwellings (which are less frequent) rents reach 3,000 francs per year in pre-war buildings. But for new buildings, i.e. recently finished and ready for letting, rents vary from 900 to 1,000 francs per room (the kitchen being counted as a room). Very few workers only can afford a dwelling at such prices; these are rather rented to better paid employees and officials. Working-class district of the 8th canton. — It seems that the predominant type in this quarter is the two-room dwelling. The rent for these dwellings is about 500-600 francs per room when the occupier is not a pre-war tenant. But it may be useful to indicate here the following facts which are not at all unusual when the head of a family wishes to-day to get hold of an apartment become vacant: he is obliged to pay what is called at Marseilles a "pas de p o r t e " (key-money), in addition to the price for rent charged by the owner. This practice is punishable by law, but in case of complaint, proof is almost impossible. Moreover, the insufficient number of apartments to be let incites people to suffer exploitation without taking action against the delinquent. They accept with resignation the exploitation to which they are subject. It is very difficult under these circumstances to give a representative figure of the annual rent actually paid for a working-class dwelling by post-war tenants since the nominal price is often increased by the sums which the new occupant has to pay either to the owner, the former tenant, the principal tenant of the house, or the houseagent. During the last few years many four-room dwellings have been built by workers in the suburban area of Marseilles, some taking advantage of the law on cheap dwellings and borrowing money from building societies. These are the privileged. There are many pieces of ground divided into allotments, so that it has been possible to build houses with adjoining gardens. The price of land is often prohibitive. Also the workers in Marseilles prefer living near the place of their work, so as to take their midday-meal with their family. 94 REPORTS ON THE DIFFERENT CITIES The worker of to-day refuses to be badly housed. It seems therefore that we are advancing towards that type of workers' family dwelling containing as a minimum 4 rooms, consisting of a kitchenliving room and three bedrooms, one of which is of large dimensions (at least 4.25 x 4 metres). It is understood that it has an adjoining w.c, water at the kitchen-sink, gas, electricity and a Dutch oven for cooking, expecially during the cold season. As regards bathrooms, it may be said that they are not met with in workers' dwellings. Summing up, we may say that workers in Marseilles are usually badly housed when they live in old houses. Three-room apartments (kitchen and two bedrooms) are the most usual type. The rent is 600-700 francs per annum for tenants benefiting from rent rectriction legislation. The minimum prices are 1,200 to 1,500 francs for post-war tenants living in old houses (the prices vary according to the district). It should be emphasised that the owners do only what is strictly necessary for the maintenance of their houses in a fit state of tenantable repair (due to dear raw materials and high price of labour). It must be noted that the law of 29 June 1929 prolongs the old rents until 1 July 1939, but liberates from all restriction those houses which were put on the market only after 24 October 1919, the official date for the end of hostilities. It is rare, however, that a tenant taking an apartment after 30 June 1929 avails himself of his right to the minimum rent fixed by the law. As regards recently erected dwellings, or at least those built after the war, the minimum annual rent may be estimated at 1,000 francs per room; but no worker can afford an apartment of 4 rooms at such prices. ANTWERP (Belgium) The enquiries have been made by the Belgian Ministry of Industry, Labour and Social Affairs. Valuable assistance has been given by Mr. Paternotte, Inspector-General of the Labour Office of that Ministry. FOOD The prices of foodstuffs relate to October 1930. Antwerp consumption weights were obtained by an advance tabulation of the results of the 1928-1929 budget enquiry specially supplied by the Belgian statistical authorities. This tabulation relates to the quantities of foodstuffs consumed by 45 families (having an average income of about 5,030 francs per annum and per "unit-man ") living in the city and the suburbs of Antwerp. It has been possible to select from these data 42 articles of food accounting for 76.1 per cent, of the total food expenditure at Detroit in 1929, and for 83.5 per cent, at Antwerp in 1928-1929, for which weights are known both for Detroit and Antwerp. The data (Belgian prices and weights) used in the calculations are given in Appendix A, table I. The results are as follows: Ratio of cost of food in Antwerp to Detroit, (Detroit = 100) : (1) Using Detroit weights (2) Using Antwerp weights (3) Geometric average of (1) and (2) . . based on 42 foodstuffs 74.3 per cent. 63.1 .. 68.4 „ „ By applying ratio (3) the corresponding total food expenditure is found to be 13,675 francs. This result has been approved by the Belgian statistical authorities. HOUSING The information supplied by the Belgian statistical authorities is reproduced in Appendix A, table II. After careful consideration it has been decided to take as the "lower limit" the rent payable for an apartment consisting of four rooms and 96 REPORTS ON THE DIFFERENT CITIES scullery, according to the rates charged by the municipal administration of the city of Antwerp. The figure is 4,380 francs per annum. Such a dwelling is equipped with gas, electricity, running cold water and inside w.c. For the "upper limit" the rent for the same kind of dwelling charged in the open market (about 5,500 francs per year) might have been taken, but for the fact that no bathroom is generally available. After consultation with experts it has been found admissible to allow for a bathroom by an increase of 1,000 francs per annum and the figure of 6,500 francs has therefore been adopted. Both "limits" include the tax on rents existing in Belgium. In addition to these data, the Belgian statistical authorities have collected some very valuable information on the actual housing accommodation occupied by families of working men engaged in the Antwerp Ford factory. A summary of this special enquiry conducted in June and July 1931 is to be found in Appendix B. Analysis of the schedules (not reproduced in the Appendix) shows that sixteen families paid rents amounting to 1,100 francs per room (no bathroom being available) including the existing tax on rents. The family considered at Detroit occupied 414 rooms. The corresponding rent at Antwerp should therefore be about 5,000 francs, and this falls well within the "limits" computed above. The results of the special Antwerp enquiry thus support the solution adopted. FUEL AND LIGHT The prices relate to October 1930. From the schedules supplied by the Belgian statistical authorities concerning the housing accommodation of a certain number of Antwerp Ford workers it may be concluded that the yearly consumption of coal amounts to about 375 kg. per room. The quantity of gas consumed is 85 m 3 per person and of electricity 32 kwh. per room. It has thus been possible to make the following computation. TTnit umt House c o a l . . . Gas Electricity . . . ton ms kwh. Quantity Antwerp prices consumed in October 1931 Fr. 1.690 385.0 144.0 325.00 0.91 1.37 r t w,sï FT. 549.25 350.35 197.28 1,096.88 ANTWERP (BELGIUM) 97 This result has been approved by the Belgian statistical authorities. CLOTHING The prices of clothing articles given in Appendix A, table III, relate to March 1931. The application of the usual methods yields the following results: Method I Method II 6,310 francs 6,040 „ On the advice of the Belgian statistical authorities the result of Method II has been adopted. MEDICAL EXPENSES There exists no compulsory health insurance system in Belgium. Workers frequently are members of "mutual assistance societies ", but the great variability of membership fees excludes this alternative from consideration. The prices for medical services supplied are given in Appendix A, table IV. The ratio obtained by the usual calculation for their cost at Antwerp and Detroit is 32.2 per cent, and the corresponding expenditure 748 francs. MISCELLANEOUS EXPENSES The prices supplied for various articles and services are given in Appendix A, table V. By the usual calculation and by utilising other miscellaneous information a ratio of about 60 per cent, and expenditure of about 7,200 francs are obtained. LIFE INSURANCE The "purchasing power equivalent" of 2,076 dollars is estimated to be 41,500 or 44,500 francs, for the lower and upper estimates respectively. The corresponding annual premiums would amount to 1,245 or 1,335 francs. There exists in Belgium a compulsory old-age insurance. The monthly contributions in respect of a worker earning more than 200 francs per week amount to 25 francs, half of which is to be paid by the employee and half by the employer. Accordingly the yearly total of 300 francs has been deducted from the above premiums. The worker's own contributions (150 francs per 7 98 REPORTS. ON THE DIFFERENT CITIES annum) are then added separately, whereas the employer's contributions (150 francs per annum) appear below in a special section. TAXATION Incomes in Belgium are subject tc direct taxation on the following scale: Income Income tax due when there are 3 dependants 4 dependants Fr. Fr. 396 300 624 538 828 720 Fr. 30,000 35,000 40,000 The amounts due on the two incomes here considered have been estimated to be 470 and 581 francs, to which a fourth for local taxation at Antwerp must be added. The sums of 587 and 726 francs have been adopted. EMPLOYER'S CONTRIBUTIONS TO SOCIAL INSURANCE SCHEMES The employer's contributions to compulsory old-age insurance have been inserted in this section (see above "Life Insurance"). SUMMARY October 1930 Fr. Food Housing Fuel and light Clothing (March 1931) Medical expenses Miscellaneous expenses 13,675 4,380- 6,500 1,097 6,040 748 7,200 33,140-35,260 Life insurance 945- 1,035 Employee's contributions to old-age insurance 150 Taxation 587- 726 34,822-37,171 Employer's contributions to old-age insurance 150 Total 34,972-37,321 Belgian index numbers (April 1914 = 100) October 1930 Food Housing Fuel and light . . . Clothing (March 1931) Miscellaneous items . January 1931 211.1 197.4 no change 202.7 198.6 253.2 256.7 no change „fEgSg* • 0.935 — 0.980 1.014 — ANTWERP (BELGIUM) 99 January 1931 (rounded of to the nearest 5 francs) Fr. Food Housing Fuel and light Clothing Medical expenses Miscellaneous expenses Life insurance Employee's contributions to insurance Taxation r, , , . ~u • , Employer's contributions to insurance Total 12,785 4,380- 6,500 1,075 6,125 750 7,200 32,315-34,435 945- 1,035 old-age „ old-age 150 585- 725 33,995-36,345 150 34,145-36,495 100 REPORTS ON THE DIFFERENT CITIES APPENDIX A [Unless otherwise stated, the data reproduced in the tables have been collected and supplied by the Belgian Ministry ot Industry, Labour and Social Affairs.] TABLE I. — FOOD Prices as used Prices at Antwerp in the calcula- in October 1930 per kg tions * (1) Fr. Beef, fresh, steak . . . „ .„ roast . . . „ „ stew . - . Veal Pork, fresh ( c h o p ) . . . . Pork, salt (a) Bacon (b) Ham (fresh) . . . (c) Shoulder Poultry (boiling hen) Sausage . . . . . . . (a) Antwerp (b) Boulogne (c) Bloekworst (d) Metworst Fish, fresh (a) Cod 10. (b) Haddock (big) . . . (c) Haddock (medium) . (d) Plaice 11. (e) Ray 12. Fish, salt (red herring) . (a) Is* quality 13. (¿>) 2nd quality Milk, fresh Butter (a) Farm (b) Dairy 14. Cheese: 15, (a) Ordinary American . (b) Other Gouda Gruyère 16. 17. Eda 18. Butter substitutes (Margarine Axa) . . . (See notes page 102.) : Lard andonsubstitutes (a) Lard (b) Lard substitutes (beef suet) Eggs Flour, wheaten . . . . Bread, wheaten . . . . (2) Fr. 32.50 32.50 16.00 35.00 33.00 30.00-35.00 30.00-35.00 14.00-18.00 32.00-38.00 30.00-36.00 20.00 29.50 18.00-22.00 28.00-30.00 30.00 16.00-18.00 17.00 28.69 7.90 9.625 2.134 28.50 35.00 28.00-29.50 31.00 20.00 8.00-10.00 7.00-8.00 5.00 7.00 10.00-12.00 10.00-12.00 7.50-9.00 2.134 26.00-29.00 29.00-30.0a 41.54 22.25 41.54 12.00 12.00 18.00 16.00-20.00 11.00 18.38 2.625 2.10 10.00-12.00 13.13-23.63" 2.25-3.00 2.10 20.00 28.75 18.00 Annual quantity consumed at Antwerp per adult male (3.5 quets) in 1928/ 1929 101 ANTWERP (BELGIUM) TABLE I. FOOD (COnt.) Prices as used Prices at Antwerp in the calcu- in October 1930 per kg. lations • (1) FT. 19. Bread, rye 20. Cakes and cookies. . . (a) Small 21. (b) Big 22. Sugar (lump) 23. Apples 24. Bananas 25. Oranges 26. Potatoes Canned vegetables: (a) White beans, baked cut beans "Marie Thumas" (b) Peas (green peas "Mariel 27. Thumas ") 28. 29. Tea 30. Coffee Beef, salt, corned . . . . Mutton (a) Chop 31. (b) Roast 32. (c) Stew Bones Canned and potted meats . 33. (a) Pressed head 34. (b) Galantine (c) "Pain de veau " . . . Fish, canned, salmon . . . . . |35. Fish, canned, other (a) Pilchards (¿>) Sardines "Cocagne " . Vegetable table and cooking oils |36. (a) Olive oil (b) Ordinary salad oil ("huile d'arachide ") . Macaroni, spaghetti, noodles 37. (a) Macaroni 38. (b) Spaghetti 39. (c) Noodles syrup (ai Sugar RiceHoney (b) 40. Tapioca Lemons . 41. Molasses, Dried fruits syrup and honey (a) Apricots (b) Peaches Prunes 42. (c) J a m , jellies, preserves and marmalade (See notes on page 102.) 1.90 21.875 (2) FT. 1.90 3.65 4.00 7.75 7.43 0.725 15.00-20.00 25.00-27.50 3.40-3.90 4.00 6.50-9.00 6.6-8.25« 0.65-0.80 5.79 5.79 10.66 33.50 22.00 13.33 20.50 9.47-11.84 33.50 18.00-26.00 13.33 2.50 30.50 14.83 14.52 22.00-26.00 20.00-22.00 15.00-18.00 2.00-3.00 34.00 32.50 25.00 10.96-18.70 6.36-6.82 21.88-23.00 15.75 19.26 " 12.21 » 6.25 4.15 6.00 4.066 * 5.94 16.75 6.35 6.20 6.20 4.15 6.00 3.60-4.00 20.00-22.00 5.28-6.60 " 18.00-20.00 18.00 13.25 4.95 4.95 Annual quantity consumed at Antwerp per adult male (3.5 quets) in 1928/ 1929 102 REPORTS ON THE DIFFERENT CITIES (NOTES TO TABLE I ) 1 The figures in this column are simple averages of the corresponding prices in column (2). * Weighted average ol sugar syrup and honey according to Antwerp quantities (Sugar syrup kg, 1,32 and honey kg. 0.02). ' Rib. * Other kinds. ' 1-1.25 frs. one orange, 6.6 oranges weighing 1 kg. ' Sausage and other kinds of pork meat. ' Fish, smoked, dried, pickled.. * Cream cheese. ' Various kinds. ,0 Margarine. " 11-17.35 frs. per litre of 900 gr. 1 ' Sum of "tarts and Cakes", "biscuits" and "ginger-bread". " Sum of lump sugar, granulated sugar and other kinds of sugar. *' 0.60-0.75 frs. a lemon, 8.8 lemons weighing one kg. " Quantity of dried peas. " Quantity of ".beans", 17 Frozen beef: rib and stew. '* Pudding and pressed head. "Sardines and "other kinds ". !0 Sum of macaroni, vermicelli and other similar products. " Sugar syrup, fruit syrup and honey. "Raisins, figs and other. " Gooseberry jam, strawberry jam, other kinds. '• 0.75-1.35 frs. per piece, 17.5 eggs weighing 1 kg. SOURCE: Prices and quantities supplied by the Belgian statistical authorities. Quantities based on the enquiry into the consumption of food of 1928-1929 (Special tabulation concerning 45 Antwerp families). TABLE I I . — HOUSING /. Houses owned by the Municipal Administration of Antwerp^ situated in the city Apartments of 4 rooms and scullery facing the street Ground-floor 1st floor. . . 2nd 3rd ,. . . . 4th ,. . . . . . 1 8 5 francs per m o n t h 295-365 ,. 265-340 „ 230-300 „ 195-260 „ N.B. — Rates and taxes are included in the rent. These dwellings are supplied with gas, electricity, water and w.c. The prices of similar apartments in private houses are generally 25 per cent, higher. Apartments of 3 rooms facing the back-yard. / I s t floor. \ 2nd „ . J 3rd ,, . ( 4th „ . . . . . 150-180 francs per m o n t h 110-145 „ „ „ 95-120 „ 80-95 NJÌ. — Rates and taxes are included in the rent, II. Houses owned by the "Assistance Publique" of Antwerp, situated in the city ;' Ground-floor Apartment of 4 rooms . . \ 1st floor / 2nd „ 3rd „ N.B. — Rates for the removal of waste are paid . . 249 francs per month 238 „ ,, „ 205 „ ,, ,, 190 „ by the tenant. The above rents have been fixed by the law on rents which is in force until 1 January 1933. III. Houses owned by the Antwerp Association for Cheap Dwellings (a) Apartments situated in large tenement houses: Apartments of 4 rooms Ground-floor . . 215 francs per month 1st floor. . . 193-212 2nd „ . . . 187-201 „ 3rd „ . . . 4th „ . . . 103 ANTWERP (BELGIUM) Ground-floor . . 206 francs per month 1st floor 187 Apartments of 3 rooms 2nd „ 179 3rd „ 150 4th „ 124 „ (ft) Apartments consisting of living-room, scullery, cellar, terrace, w.c. and equipped with electricity, water and gas: with 3 bedrooms with 4 bedrooms Ground-floor 400 francs 450 francs 1st floor 400 „ 450 2nd „ 350 „ 400 3rd „ 300 „ 3 5 0 4th „ 250 „ 300 5th „ 200 „ 250 The following reductions are available to poor families: With 3 minor children s? >i SJ 20 per cent. 4 £> ,, 5J ,, >> o\) 4U ,, ,, ^ J» ÎÎ *}V }; r ,. ,, >> N.B. — These rents include rates and taxes. TABLE III. — CLOTHING Prices at Antwerp in March 1931 /. Men's clothing 1. Woollen suit 2. Overcoat 3. Cotton trousers 4. Cotton socks 5. Cotton gloves . 6. Belt , / / . Women's clothing ''.'.' 1. Hat 2. Dress, rayon 3. Cotton dress 4. Petticoat or slip, cotton 5. Drawers, rayon 6. Cotton shirt 7. Cotton gloves III. Children's clothing (a) Boys 1. Cap 2. Woollen suit 3. Cotton trousers 4. Overcoat 5. Sweater or lumberjack, woollen 6. Cotton shirt 7. Union suit, cotton 8. Cotton socks 9. Boots Fr. 650.00 600.00 50.00 9.50 10.00 15.00 95.0Q 225.00 30.00 15.00 15.00 20.00 15.00 6.00 500.00 15.00 195.00 95.00 17.00 30.00 10.00 75.00 104 REPOBTS ON THE DIFFERENT CITIES Prices at Antwerp in March 1931 (b) Girls 1. Hat 2. Dress, rayon 3. Woollen coat 4. Lumberjack 5. Slip, cotton 6. Drawers, cotton 7. Cotton stockings Fr. 29.00 175.00 275.00 25.00 7.00 4.95 12.00 TABLE IV. — MEDICAL EXPENSES Prices at Antwerp in March 1931 FT. Visit to doctor House call Visit to dentist 1 20.00 30.00 1 17.50 Estimate. TABLE V. — MISCELLANEOUS EXPENSES 1. Cost of transport by tram (monthly season ticket giving right to 2 rides a day). . . . 2. Barber expenses 1 hair cut (man) 1 hair cut (child) 1 shave (ordinary barber) 3. Moving pictures (one cheap seat) . . . . 4. Laundry work sent out 1 man's shirt 1 sheet (ordinary size) 5. Tobacco 20 cigarettes 1 kg. smoking tobacco 6. Newspaper Prices at Ant- Prices as used werp in March in the calcula1931 tions Fr Fr 30.00 30.00 3.00, 3.50 3.00, 3.50 2.00 5.00,6.00,7.00 3.25 3.25 2.00 6.00 2.00,2.50,2.75 1.40 2.50 1.40 — — 0.35 1.50 25.00 0.35 ANTWERP (BELGIUM) 105 APPENDIX B Memorandum on the Housing Conditions of Workers of the Ford Factories at Eeekeren (Antwerp) N.B. — The following is a summary of the main conclusions of an enquiry into the actual housing conditions of 21 workers of the Antwerp Ford factory, situated at Eeekeren. The. enquiry was carried out in June 1930 by the Ministry of Industry, Labour and Social Affairs, with the assistance of officials of the factory, and took the form of a questionnaire. Out of the 21 workers whose names were given by the factory, 5 owned the house they lived in; 4 were living with their parents-in-law and paid no rent; 1 lived with his parents and paid a rent of 75 Belgian francs per month ; 1 lived in rooms adjoining a grocery and vegetable shop (kept by his wife); 10 lived in flats in different parts of the city of Antwerp and its suburbs. The workers who owned their houses had acquired them through a mortgage society and had paid for them by taking out a life insurance policy. All these houses were of recent date (maximum 10 years), and built in a simple style. The plain brick front was generally decorated with white stone over the entrance and round the windows; as a rule the shutters were painted the same colour as the door; the sash-frames were white; the roofing was of Boom tiles. A small front garden separating the house from the street enhanced the appearance of these modest dwellings. The houses, which were situated along country roads, were twostoried buildings with a frontage of not more than 6 metres. The internal arrangement seemed to meet the needs of the tenant. The house consisted usually of a cellar, three rooms on the ground floor (living room, kitchen and scullery), and three rooms and an attic on the first floor, which were usually sublet. The size of the first two rooms was the same: 4x4x2.8 metres; the third room was smaller (4x2 metres). Only one of the houses had a larger number of rooms; it had in addition a parlour and fifth room used as an office. The furniture was ordinary. Two of the families had a wireless set. The two ground floor rooms had large windows (one-fifth of the wall surface). The ceilings were whitewashed, the floors marbled or covered with linoleum, and the walls papered. The kitchen and scullery were usually tiled or lined with granite. An enamel stove, burning coal, in the kitchen served also to heat the living room. The scullery was fitted with a hand pump and running water. The w.c. was of the old type, i.e. without running water. As regards bathrooms, they are almost unknown in the type of dwellings in question. The Belgian worker evidently tends to be refractory where measures for promoting personal hygiene are concerned. At the Ford factory 106 REPORTS ON THE DIFFERENT CITIES itself, where the sanitary equipment is completely up to date and cost 186,000 Belgian francs, in spite of frequent recommendations, very few workers avail themselves of the shower-baths placed at their disposal free of charge. It may be said in their defence, however, that this is not entirely their fault, for the public authorities have their share of responsibility. The water supply, is in the hands of a private firm, and the concession is running out. : In the uncertainty whether it will be renewed, the company does not repair the pipes and conduits which have long ago become insufficient to meet the needs created by suburban development; the population has to bear the consequences, water being scarce or even impossible to obtain. A case in point is the Dam district, where for three days in the week it is impossible to obtain water before midnight in sufficient quantity for a bath because the slaughter houses have to be supplied first. Even in the centre it is quite usual for people to have to wait twenty" minutes before they can fill one pail of water. The working class tenant tends to choose his dwelling regardless of the requirements of hygiene. The important thing for him is to house his family as cheaply as possible, and if by chance he is influenced by the proximity of a school for the children, his chief motive is to avoid travelling expenses. What with these, conditions and what with the worker's natural indifference, it is not surprising to find that no working-class dwelling is equipped to permit of washing oneself properly. However, if the aversion of the workers were not so pronounced, it would be easy to use the scullery for this purpose, for there is plenty of rain-water. However this may be, the workers in question here, whether owners or not, were getting the same wages; they all had dependants and had been employed the same number of years in the factory. The question arises, therefore, why so few of them owned their houses, especially in view of the financial facilities they could have claimed as houseowners: namely, the bonus granted by the State, three years' exemption from the land tax, the power to acquire full ownership after 15 years, the right to sublet either the first floor or the ground floor and thus substantially to reduce the burden of interest "and redemption charges. No doubt, indifference, lack of initiative, and ignorance of the advantages offered are among the main causes which have brought about this situation. There is no doubt also that the instability of a good wage and the insecurity of employment are apt to discourage the most enterprising. So far, only the workers owning their houses have been considered. Those who lived with their parents or parents-in-law, being in a privileged position, can be left out of account. There remain the workers renting their dwellings. . The information given in the replies to the questionnaires shows sufficiently their complete lack of modern conveniences and renders it unnecessary to give further details and to draw conclusions from the point of view of public health. . It may be noted, however, that the wages earned are no criterion of the cleanliness of the dwelling. It happens fairly often that workers with a large family and earning comparatively little live in better hygienic conditions than certain workers whose families are smaller and who earn much more. Another point to observe is that the workers had their homes relatively far from the factory which is situated at Eeckeren, and that ANTWERP (BELGIUM) 107 only a minority lived in that town. While, indeed, it is easy to understand that workers do not move every time they change their job, it is just as clear that those who have been employed in the factory for some years must find it to their advantage to live as near as possible to the place where they work. Yet precisely these workers live farthest away. There are several reasons to account for this. First, the factory itself was recently moved from Hoboken to Eeckeren; secondly, communications are very convenient by tramway as well as by bicycle, the country being very flat. Moreover, the repeal of the Rent Restriction Act meant that most workers' families had to settle in the suburbs. Besides, many workers have a pronounced taste for gardening. But interesting as it is to have an indication of the standard of comfort of the Ford workers at Antwerp, it is no less important to know the wages they earn and the taxes they have to pay. According to the replies received, the rate of pay per hour varied between 9 and 18 Belgian francs, according to occupation and length of service. The working day was 8 hours, with one hour's break at midday; Saturday was a full holiday. ' The worker also received the family allowances provided by the Belgian Act of 4 August 1930, namely, Ì5 francs a month for the first child, 20 francs for the second, 40 francs for the third, etc., in respect of children under 14 years of age or, if attending school, under 16. The workers received no bonuses. All exceptions to the Washington Eight-Hours Day Convention were formally prohibited. ROTTERDAM (Netherlands) The enquiry was conducted by the Director of the Bureau of Statistics of this city. Valuable information and advice were also furnished by the Director of the Bureau of Statistics of the city of Amsterdam. FOOD The prices of foodstuffs relate to the months of AugustSeptember 1930. As no figures of consumption exist for Rotterdam, the Office decided to make use of the family budget enquiry for the city of Amsterdam of 1923-1924 x as being applicable to Rotterdam. This study does not give the quantities consumed by working class families, but only the expenditure on each article. These quantities, however, have been kindly supplied by Dr. van Zanten, the Director of the Amsterdam Municipal Statistical Bureau. Twenty-one principal articles of food for which prices and quantities are known both in Detroit and the Netherlands were chosen. The data (prices and weights) used in the calculations are given in the Appendix, table I. On the basis of this material the following results were obtained : Ratio of cost of food in Rotterdam to Detroit, (Detroit=100) : (1) Using Detroit weights (2) Using Amsterdam weights . . . . (3) Average of (1) and (2) based on 21 foodstuffs 8.1.4 per cent. 67.8 ,, ,, 74.3 „ „ By applying the latter ratio, the food expenditure for Rotterdam is found to be 1,028 florins. This figure has been approved by the Rotterdam Statistical Bureau. HOUSING An enquiry conducted into rents at Rotterdam indicates that a dwelling approximately equivalent to the Detroit house 1 Huishoudrekeningen van 212 Gezinnen uit verschillende Kringen der Bevolking, Statistische Mededeelingen van het Bureau van Statistiek der Gemeente Amsterdam, No. 80. Amsterdam 1927. ROTTERDAM (NETHERLANDS) 109 would cost about 500 florins per annum, while the rent for a dwelling of the size of the American house, but of the kind usually occupied by a Dutch skilled workman, would be about 7*/2 florins a week (390 florins a year). The figures of 500 and 390 florins are therefore taken as the upper and lower estimate for rent. FUEL AND LIGHT The prices for the articles in this group are given in the Appendix, table II. The quantities used are taken, on the advice of the Director of the Amsterdam Statistical Bureau, from a group of 32 families whose annual expenditure per " man-unit " was from 940 to 1,150 florins in 1923-1924. This consumption was as follows: Gas Electricity Anthracite Bituminous coal "Agglomérés " 129 cubic metres 48.1 kwh. 2.31 hectolitres 0.17 hectolitres 6.76 hectolitres These figures were applied to the prices shown in the Appendix, table II — the price of coke being taken as that of "agglomérés ". The above consumption figures, however, relate to families occupying 1.74 rooms per "man-unit", whereas the American families occupied only 1.41 rooms per unit-man. They also relate to one " m a n - u n i t " whereas the average family for the purpose of this enquiry is 3.27 units. The cost of the above items was therefore multiplied by the ratio \^l and then by 3.27. The resulting figure is 114 florins. CLOTHING The prices for the various articles of clothing relate to April 1931 and were based on the sample collection of American articles. The services of an expert adviser of the firm of C. & A. Brenninkmeyer were obtained for this purpose. They are given in the Appendix, table III. The usual two methods give the following results: Method I Method II 280 florins 265 The figure of 280 florins has been adopted. 110 REPORTS ON THE DIFFERENT CITIES MEDICAL EXPENSES In the Netherlands workers earning 3,000 florins per annum or less are legally entitled to receive 80 per cent, of their wages for a certain period in case of sickness. This is paid for by the employers who have the right to deduct 1.15 per cent, of the wage. On a wage of 2,500 florins this would amount to about 30 florins per annum. In addition, there exist voluntary insurance funds against medical expenses incurred by members and their families. Membership costs 0.54 florins per week for a man with wife and children under 16 years (about 28 florins per annum). These two payments amount together to 58 florins and this sum is taken as covering the cost of all medical care, if the workman insures himself and his family against medical expenses. For a worker who would earn over 3,000 florins and does not insure himself voluntarily, expenses for medical care have been estimated on the basis of the price of doctor's services (visit to doctor 2 florins, to specialist 3 florins). They yield an approximate expenditure of 64 florins, — almost identical with the preceding calculation. On the other hand, such a worker would not receive any portion of his wages in case of sickness. MISCELLANEOUS EXPENSES The prices supplied are given in the Appendix, table IV. The comparison with the corresponding prices in Detroit gives a ratio of 60.7 per cent, or a cost in Rotterdam of 509 florins. L I F E INSURANCE The "purchasing power equivalent" to 2,076 dollars is estimated at about 3,000 florins. The annual premium for a policy of this amount is 90.00 florins. From this sum the contributions to old-age and invalidity insurance which are entirely paid by the employer must be deducted. They are 0.60 florin per week (31 florins per annum) for male persons 21 years and over. The amount of 59 florins has therefore been inserted in the summary for life insurance. ROTTERDAM (NETHERLANDS) IH TAXATION Direct taxation is in force in Rotterdam on the following scale supplied by the above-mentioned authority: Income 2 children 2,500 2,800 88.42 113.74 3 children 72.06 96.86 Average 80.24 105.30 The figure of 80 florins is taken for the purpose of this enquiry. EMPLOYERS' COMPULSORY SOCIAL INSURANCE CONTRIBUTIONS Dutch employers are liable to contribute to old-age and invalidity insurance, and to the Sick Benefit Fund. Their contributions are as follows: Old-age and invalidity insurance (see above "Life insurance ") Sick benefit: 2.30 (Class I risk), or 3.40 (Class II risk) per cent, of wages; but employers may deduct 1.15 per cent, from wages, leaving 1.15 per cent. to 2.25 per cent, to be paid by them. The lowest risk class is taken, amounting to about 31 fl. 30 fl. 61 fl. SUMMARY August-September 1930 Florins Food Housing Fuel and light Clothing (April 1931) Medical expenses Miscellaneous expenses Life insurance Taxation Employer's social insurance contributions Total 1,028 390-500 114 280 58 509 2,379-2,489 59 80 2,518-2,628 61 2,579-2,689 In order to bring the calculations for the different towns to a uniform date (January 1931) cost-of-living index numbers have been applied. 112 REPORTS ON THE DIFFERENT CITIES No figures being published for Rotterdam, the following official figures for Amsterdam have been taken: Sept. 1930 Dec. 1930 Coefficient oí (Indices 1911-1913=100) reduction Food 152.5 144.8 0.950 (Expenditure per man-unit) Fuel and light Housing Miscellaneous expenses . . Clothing (March 1931) . . . 63 — 1761/2 70V2 6IV2 0.976 — No change 171 0.969 73Va 1.043 December 1930 (rounded off to nearest florin) Florins Food Housing Fuel and light Clothing Medical expenses Miscellaneous expenses 977 390-500 Ill 292 58 493 2,321-2,431 Life insurance Taxation 59 80 2,460-2,570 60 Employer's social insurance contributions . . Total 2,520-2,630 113 ROTTERDAM (NETHERLANDS) APPENDIX [Unless otherwise stated, the data reproduced in the tables have been collected and supplied by the Rotterdam Municipal Statistical Office.] TABLE I. — FOOD Prices at Annual quanPrices as used Rotterdam in tity consumed in the calAugust-Sep- at Amsterdam culations tember 1930 per consumpper kg.1 per kg. tion unit in 1923-1924 (1) 1. Wheaten bread . . . . 4. Milk, fresh (per litre) . . 6. Eggs (per piece) 7. Reef (a) Beef, steak . . . . . . . . 9. Pork 10. Veal 12. Fish, salt (herring) . . . 13. flutter 14. Margarine (butter sub15. 16. 17. 18. Lard (and substitutes) . Tea Coffee Sugar 20. White beans, baked. . . 21. Peas (canned) Htl. Htl. 0.3125 0.245 0.24 0.16 1.155 0.085 2.55 s 0.3125 0.245 0.24 0.15-0.17 1.11-1.20 0.07-0.10 2.50-3.40 1.95-2.35 1.40-1.60 1.60-2.00 1.60-2.00 1.10-1.20 0.90-1.20 2.55 1.50 1.80 1.80 1.15 1.05 2.55 1.23 1.00 3.34 1.97 0.40 0.045 0.60 0.40 (3) (2) Kg. 145.60 16.12 3.12 182Í00« 3.90 6 70.00 5.20» 3.64« 2.08 0.16 1.72 1.92 5.20 7.44 0.73 2.60 2.60 20.80 182.00 2.60 2.60 2 1.16-1.30 1.00 2.48-4.20 1.97 0.40 0.045 0.60 0.28-0.52 1 The prices in this column are simple averages ot the corresponding prices in column (2). * Dried peas. • Beef, Dutch (1st quality). • Beef, frozen (1st quality). * Cheese, full cream. ' Milk, unskimmed. SOURCE: Prices supplied by the Rotterdam statistical authorities. Quantities based on the household budgets of working men's families in 1923-1924 supplied by the Statistical Office of the city of Amsterdam. TABLE II. — FUEL AND LIGHT Prices in AugustSeptember 1930 Florins 1. 2. 3. 4. 5. Gas Electricity Anthracite coal Rituminous coal "Agglomérés" Price of coke. 0.11 0.11 2.85 1.03 0.90 x 8 114 REPORTS ON THE DIFFERENT CITIES TABLE III. — CLOTHING Prices in April 1931 / . Men's clothing Florins 1. Woollen suit (coat, waistcoat and two pairs of trousers) 30.00 2. Overcoat 24.00 3. Cotton trousers (not worn in the Netherlands) 2.50 4. Cotton socks 0.40 5. Cotton gloves 0.50 6. Belt. 1.00 II. Women's clothing 1. H a t 3.50 2. Dress, rayon. 7.50 3. Dress, cotton 3.50 4. Petticoat or slip, cotton 0.90 5. Bloomers, step-ins or drawers, rayon 0.80 6. Shirt, cotton 0.60 7. Gloves, cotton 0.50 / / / . Children's clothing (a) Boys 1. Cap 0.75 2. Woollen suit (coat, waistcoat and two pairs of trousers). . 10.00 3. Cotton trousers 1.60 4. Overcoat 8.00 5. Sweater or lumberjack 5.00 6. Cotton shirt 1.10 7. Union suit, cotton 1.40 8. Cotton socks 0.45 9. Boots 4.50 (Z>) Girls 1. H a t 0.90 2. Dress, rayon 5.00 3. Woollen coat 10.00 4. Lumberjack 2.50 5. Slip, cotton 0.75 MISCELLANEOUS EXPENSES TABLE IV. 6. Bloomers or drawers, cotton 0.50 Prices as Prices in 7. Cotton stockings 0.50 ised in the Augustcalculations Florins 1. 2. 3. 4. 5. 6. 7. 9. 10. 11. 12. 13. 14. 12.00 Blanket (woollen) 2.00 Sheet 1.00 Pillow-case 0.20 Cotton towel 2.25 Cotton or linen tablecloth . . . . 2.00 Table oilcloth 0.10 Daily t r a n s p o r t : t r a m (1 ride) . . Barber expenses: 0.25 1 hair cut 0.15 0.625 1 shave 0.25 Cinema (1 ticket) 2.25 Newspaper (per week) 0.06 Tobacco (1 kg.) 0.06 Laundry work sent out (1 pièce) . Postage (1 inland letter) Telephone (1 call from public station) 0.10 September 1930 Florins 8.00-16.00 1.50-2.50 0.75-1.25 0.20 1.50-3.00 1.50-2.50 0.10 0.25 0.15 0.25-1.00 0.25 1.50-3.00 0.06 0.06 0.10 M A N C H E S T E R (Great Britain) The price-data used in this report have been supplied by the Statistics Branch of the British Ministry of Labour and are shown at the end of this report. FOOD The price-data for foodstuffs relate to January 1931 and are shown in Appendix A, table I. Official information as to the consumption of foodstuffs is available for the year 1914 in the report of the committee appointed to inquire into and report upon (inter alia) "the actual increase, since June 1914, in the cost of living to the working-classes " 1. In order to obtain figures more representative of the post-war period, the information given in an article by Dr. Bowley in the Economic Journal for June 1928 2, and, as regards consumption of meat, a report prepared in 1929 by the Ministry of Agriculture and Fisheries on The Agricultural Output and the Food Supplies of Great Britain were utilised. The weights used and the average prices of the different qualities and grades of foodstuffs are given in Appendix A, table II. By applying the Detroit weights and the British weights respectively to the Manchester and Detroit prices, the following figures were obtained: Ratio of cost of food in Manchester to that in Detroit (=100) based on 20 foodstuffs: (1) Using Detroit weights (2) Using British weights (3) Average (geometric) of (1) and (2) 77.0 per cent. 67.7 „ 72.2 „ 1 Cd. 8980, Working classes cost of living Committee, 1918. (Chairman: Lord Sumner). 2 "Notes on Index Numbers ", Economic Journal, Vol. XXXVIII, June 1928, p. 228. 116 REPORTS ON THE DIFFERENT CITIES In view of the wide range of qualities covered by the quotations supplied and the absence, in some cases, of an exact description of the American quality, the average prices shown in column 1 of the appended table II are in the nature of approximations. Moreover, the consumption weights are not based on a recent family budget inquiry. The above percentages should therefore be considered as approximate, but they may be taken to indicate that food prices in Manchester at January 1931 were between 70 and 75 per cent, of those in Detroit at 1929. These percentages yield an expenditure on food of £79 18s. and £85 12s. respectively. HOUSING In a memorandum supplied by the British Ministry of Labour (see Appendix B) the opinion is expressed that, while any attempt to determine what rent in Manchester would be comparable with the average paid by workers in the Detroit sample must necessarily be somewhat arbitrary, it appears probable after consideration of all the available data that the figure would be about 12s. to 13s. a week. An annual expenditure of £31 4s. to £33 16s. has been taken for this section. 1 F U E L AND LIGHT The prices of the various items included in this section are given in Appendix A, table III. If the average quantities of each article consumed by the selected families at Detroit are applied to the prices of these articles in Manchester, the price-ratio in Manchester (compared with Detroit = 100) is about 99.5 as shown in the following table. It should be remembered that the prices of coal, coke and wood in Detroit are the special prices accorded to the Detroit employees by the company, and had the normal prices been obtained the above price-ratio of 99.5 would have been somewhat lower. 1 This range does not conform to that of the upper and lower limits as discussed in Chap. II, Part II, p. 18. The figure representing the lower limit would be approximately £27 (see Appendix B). 117 MANCHESTER (GREAT BRITAIN) Cost in Detroit Dollars Coal (4.1 tons) . . . . Coke (1.3 tons) . . . . Gas (28,600 eft.) . . . Electricity (407.6 kwh.) Kerosene (13.1 gallons) 34.98 10.41 22.69 20.43 2.90 Total for above items . . 91.41 Price in Manchester s. d. 39 2 28 4 3 63A * 0 10.1 Cost in Manchester s. d. 160 7 36 10 101 11 63 0 * 11 0 373 4 * See Appendix, table III. If the above price-ratio is applied to the total expenditure on all fuel and light in Detroit (viz. $103.20, which covers in addition to the quantities shown above 0.6 tons of anthracite coal, 0.4 tons of wood and a small allowance for matches and candles) a sum of £21 Is. is obtained as the equivalent expenditure in Manchester. While exact information is not available as to working-class consumption of fuel and light in Manchester, the British Ministry of Labour is of opinion that the quantities used on an average by working-class families in Manchester are lower than those shown in the Detroit sample and, in view of the differences in the climate of the two towns, it would seem reasonable to assume that a smaller consumption in Manchester would suffice to provide for the maintenance of a similar standard of comfort. Any allowance which may be made on this account must necessarily be somewhat arbitrary, but if the maximum deduction to be made were assessed at the equivalent of one sixth of the total cost of coal, coke and gas, the total expenditure in Manchester on fuel and light would be reduced to about £18 5s. In the summary table of average expenditures, the first figure (£21 Is.) has been used as the maximum, and the second figure (£18 5s.) as the minimum expenditure on fuel and light. The method adopted differs from that applied in other towns. CLOTHING Comparisons of prices of clothing in Detroit and Manchester are subject to special difficulties owing to the differences in the character of the articles of apparel worn in the two towns. Although these differences were to some extent overcome by utilising samples of the actual articles worn by Detroit workers, it was, in many cases, found impossible to obtain prices in 118 REPORTS ON THE DIFFERENT CITIES Manchester for approximately comparable garments and the particulars obtained were necessarily limited in many cases to estimates of the prices which would be charged for articles of somewhat similar material and workmanship. Consequently, the prices quoted by shopkeepers in Manchester showed considerable variation, but for most of the items of men's and women's clothing the ratios of the Manchester prices to the Detroit prices are sufficiently consistent to suggest that the weighted average of these ratios provides a satisfactory indication of the relative price levels of clothing generally. By applying the price ratios for men's and for women's clothing for the total Detroit expenditure by the usual methods a figure of £26 13s. 2d. is obtained. As this figure is based on Manchester prices prevailing in April 1931 it is necessary to adjust it to allow for the change in clothing prices between January and April. On the basis of the official statistics in the movement of clothing prices in Great Britain which show a fall of between 2 and 3 per cent during this period, it would appear that the corresponding expenditure in January 1931 would have been about £27 6s. MEDICAL EXPENSES From such information as is available it appears that the cost of a visit to the physician and to the dentist may be estimated at about 2s. 6d. each. The application of these prices to the Detroit quantities yields a percentage of about 40 per cent. with a corresponding expenditure for this item of about £5 6s. MISCELLANEOUS EXPENSES The prices for these items are given in Appendix A, table V. On the basis of these prices a figure of 80 per cent, was found, which would yield a sum of about £55 7s. when applied to the corresponding expenditure in Detroit. LIFE INSURANCE The purchasing power equivalent of the amount of life insurance carried by the selected Detroit workers, viz. $2,076, MANCHESTER (GREAT BRITAIN) 119 is found to be roughly equivalent to between £275 and £285. The corresponding yearly premiums (at the rate of 3 per cent.) would therefore amount to £8 5s. and £8 l i s . respectively. TAXATION This item does not appear in the present calculation as the total obtained lies below the exempted minimum for a married man with two children, in January 1931. SOCIAL INSURANCE As pointed out in Chapter II, Part II, it is not possible, except very approximately, to evaluate, in terms of equivalent annual expenditure, the privileges which employees in different European countries derive from various social services, and which are non-existent (except for accident insurance) for the Detroit worker. Thus, the Manchester worker aged between 16 and 65 receives, under certain conditions, a weekly payment while unemployed, with supplements for wife and dependent children; a weekly payment while incapacitated through illness, and payment of medical fees, chemists' bills, etc. ; on reaching 65 he and his wife become entitled to a weekly pension and on death the widow is entitled to receive a pension with supplements for dependent children ; orphans' pensions are also provided for. The cost of these services is borne jointly by the employee, the employer, and the State. In January 1931 the Manchester worker paid in respect of these services about £3 6s. 8d. a year (assuming 50 weeks' contributions a year) and the employer about £3 l i s . In addition the State contributed about £2 per annum per insured worker in respect of unemployment and health insurance, and State grants are made in respect of old-age, widows', and orphans' pensions. It should be added, however, that the unemployment fund derived from the joint contributions of the three parties has proved insufficient in recent years ; the Exchequer has provided the full cost of benefit in respect of certain classes and the balance has been met by borrowing under statutory powers. The only provision in the budget of the Detroit employee for loss of earnings through sickness and unemployment, and for 120 REPORTS ON THE DIFFERENT CITIES old age, appears to be the life insurance of $2,076 at a premium of 60 dollars a year. In addition he incurred medical, etc. expenses for the whole family of about $65 a year. The equivalent cost of these two services has been estimated above to cost in Manchester about £13 to £14 per annum. If it is assumed that about four-fifths of the sickness expenses (for a family of 4.6 persons) were incurred for members of the employee's family and one-fifth for the employee, the cost in Manches ter of the employee's own medical expenses and of insurance may be estimated on a Detroit basis at about £9. The life insurance of the Detroit employee is equal to a little over one year's annual income, whereas it is estimated by the competent authorities in Great Britain which have been consulted that the value of the State scheme under the widows, orphans and old-age pension Acts is equivalent to a cover of about two years' annual income, and that if he entered insurance at the age of 16, an annual premium of from £5 to £6 throughout working life (i.e. until 65) would cover the benefits to which he is entitled. The high premium for the Detroit worker is probably due in large measure to the fact that he entered insurance at a much higher age, generally after marriage. On the other hand, the British worker usually provides for funeral expenses of himself and members of his family by private insurance. The allowance to be made for all these factors is difficult to ascertain, but is in any case small in relation to the total expense of about £230. As shown above, the employers and the State make direct contributions of about £5 l i s . per annum in respect of unemployment, health and pensions insurance of a fully employed worker, whilst in addition the State makes payments to meet the deficiency of unemployment insurance and to finance the widows and old-age pensions scheme. These latter payments are of varying nature, the figures for 1930 and 1931 falling well below the real cost. SUMMARY The figures given in the above paragraphs yield totals of about £226 and £237. If it is considered that the insurance contributions might be regarded as of the nature of a "free policy " presented to the worker, the amount of about £226-£237 might be reduced, as in the case of the other towns, by at least the £5 l i s . mentioned. This would give approximate figures of about £220 to £231 ; or about £224-£235 if employers' contributions are included. MANCHESTER (GREAT 121 BRITAIN) January 1931 (rounded off to nearest shilling) Lower estimate Food Housing Fuel and Light Clothing Medical E x p e n s e s 1 Miscellaneous I t e m s 1 Life Insurance 1 Direct contributions, by Employers and State, to social insurance (see paragraph above) at least £ s. d. 79 31 18 27 5 55 2258 18 0 4 0 5 0 6 0 6 0 7 0 5 00 11 85 12 0 33 16 0 21 1 0 27 6 0 5 6 0 55 7 0 1 1 00 2368 19 5 11 0 * 5 11 0 220 Employers' direct insurance contributions Total to Upper estimate 0 0 £ s. 231 d. 8 0 social 3 11 0 3 11 0 223 11 0 234 19 0 1 Owing t o t h e difficulty, in view of t h e system of social insurance in Great Britain, of deducting separately from these totals a m o u n t s representing exactly t h e contributions, made b y employers and t h e State t o social insurances, these contributions are dealt with in one t o t a l . For t h e purposes, however, of t h e table given on p . 30, it is estimated t h a t t h e total of £5 l i s . , representing t h e direct contributions of employers and t h e State to social insurances, m a y be allocated approximately as follows: Medical Expenses, 7s. 6d.; Life Insurance, 18s. 9d.; Miscellaneous Items, £4 4s. 9d. After deducting these a m o u n t s from t h e total costs shown under these three headings, t h e net expenditure is approximately as follows: Medical Expenses, £4 18s. 6d.; Life Insurance, £7 6s. 3d. to £7 12s. 3d.; Miscellaneous Items, £51 2s. 3d. These figures have accordingly been utilised for t h e table on p . 30. 122 REPORTS ON THE DIFFERENT CITIES APPENDIX A TABLE I. — AVERAGE PRICES PER LB. AT MANCHESTER IN JANUARY 1 9 3 1 FOR DIFFERENT QUALITIES AND GRADES OF FOODSTUFFS Pcn.cc 1. (a) Beef, British: Brisket Thin flank Gravy beef Ribs Sirloin Silverside Steak (shoulder) Steak (rump) (£>) Beef, imported: Brisket Thin flank Gravy beef Ribs Sirloin Silverside Steak (shoulder) Steak (rump) 2. Pork, fresh (British): Legs Loin Spare ribs Belly Chops 3 . (a) L a m b , British: Legs Shoulders Chops (trimmed and boned) Neck (best end) Scrags Breasts (£>) L a m b , imported: Legs Shoulders Chops (trimmed and boned) Necks (best end) Scrags Breasts (c) Mutton, imported: Legs Shoulders Chops (trimmed and boned) Necks (best end) Scrags Breasts 4 . Sausages: Pork Beef 7.8 8.0 11.2 14.1 15.4 15.9 13.8 19.8 4.6 5.0 7.3 9.1 10.7 11.8 9.9 14.5 16.3 17.1 16.9 11.4 18.1 16.7 16.1 18.9 14.5 10.6 8.4 12.5 11.0 12.2 8.8 5.6 4.4 9.5 7.4 9.2 7.5 5.6 3.8 13.4 9.7 MANCHESTER (GREAT 123 BRITAIN) 5. (a) Bacon, rolled: Danish Other and unspecified (b) Bacon, Danish, unrolled: Back Thick streaky Cuts unspecified 6. L a r d : British American 7. B u t t e r : Danish Australian and New Zealand 8. Margarine (proprietary and other): Best quality Other qualities 10.0 9.2 10.6 10.3 10.0 7.5 6.8 16.3 13.9 12.0 i 10.0 j HQ 1 6.0 9. Milk, fresh: Loose Bottled 10. Cheese: Colonial Cheshire Lancashire 11. Eggs: English Irish Dutch or Danish 12. Bread: 1st grade ("Milk " bread) 2nd grade (Fine household) 3rd grade 13. Flour: Plain Self-raising 14. Potatoes: King Edward Majestic Cheshire Other 15. Tea 16. Coffee 17. Sugar: Lump Granulated 18. (a) Rice: Carolina J a v a (including American J a v a ) Spanish J a p a n Rangoon (b) Tapioca 1 19. Oatmeal (Scotch) The prices vary according to the quantity bought. 20. Cocoa: Proprietary 1 Other 2.5 2.7 9.0 12.5 14.7 15.6 12.6 11.9 j 2.0 1.8 J;J 1.3 2.2 1.3 1.2 1.1 1.0 24.0 29.1 2.9 2.5 5.0 4.4 2.9 2.2 4.1 2.9 Í 24.0 { 22.0 I 21.0 13.4 124 REPORTS ON THE DIFFERENT CITIES TABLE II. — FOOD Average price used Pence 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Beef and veal Pork, fresh (British) Mutton and lamb Sausages Bacon Lard Butter Margarine Milk, fresh Cheese Eggs Bread Flour Potatoes Tea Coffee Sugar Rice and tapioca Oatmeal (Scotch) Cocoa 11.2 2 16.0 10.8 11.6 10.0 7.2 15.1 9.0 2.6 12.1 13.4 1.7 1.8 1.2 24.0 29.1 2.7 3.7 2.9 17.9 British consumption weights lbs1 3.91 0.34 1.42 0.62 1.44 1.00 1.70 0.42 11.89 0.84 1.42 25.50 8.00 15.60 0.88 0.09 5.90 1.40 1.30 0.18 ' Estimated weekly TABLE consumption for FUEL a familyAND equivalent III. — LIGHTto 4.57 "men". ' Price of beet. (Prices for January 1931) Coal. — There is a wide variation in the price of coal in Manchester according to the quality, description, etc. of the coal. The kind of coal sold to working-class customers varies in different cases. For house coal of the description most frequently reported as bought by working-class customers in Manchester the average price in January 1931, according to the returns received by the Ministry of Labour, was 36s. 8d. to 41s. 8d. per ton. These prices are for bituminous coal; anthracite coal is not used by Manchester working-class families. For the purpose of calculation a mean price of 39s. 2d. per ton is taken. Coke. — Relatively little coke is used by working-class families in Manchester. The predominant price in January 1931 was 28s. 4d.per ton. Gas. — The price of gas (through ordinary meters) for lighting and domestic purposes in Manchester in January 1931 was 3s. 9d. per thousand cubic feet, subject to a discount 3of 2Vid. per thousand cubic feet for payment within 28 days, i.e. 3s. 6 /id. net per thousand cubic feet. Electricity. — The charges for electricity for lighting and domestic power, eunder an " all-in " tariff, consist of an annual fixed charge of 12V2 P r cent, on the net rateable value of the house, plus 1/2d. per kwh. consumed. For a house of the rental suggested under "Housing " this fixed charge would amount to £2. In Manchester electric light bulbs must be purchased by the consumer, whereas in Detroit they are supplied free by the electricity company, and in the table on page 117 an allowance has been included for this item. Lamp Oil (Kerosene). — The average price in Manchester in January 1931 was lO.ld. per gallon. 125 MANCHESTER (GREAT BRITAIN) TABLE IV. — CLOTHING Average price in March-April 1931 / . Men's clothing 1. Woollen suit 2. Overcoat 3. Cotton trousers 4. Cotton shirt 5. Union suit, cotton (underclothing) 6. Cotton socks 7. Boots 8. Tie 9. Belt 10. Overall / / . Women's clothing 1. Dress, rayon 2. Dress, cotton 3. House dress 4. Coat, woollen 46 48 4 3 5 0 6 6 4 0 7 12 11 1 6 2 3 6 3 5. Petticoat or slip 6. 7. 8. 9. 10. Bloomers Shirt or vest Stockings Shoes Gloves, cotton 23 2 3 50 9 11 10 0 2 6 2 1 2 11 1 9 3 0 9 10 TABLE V. — MISCELLANEOUS EXPENSES Average price in January 1931 Pence 10. 11, 12. 13. Blanket Sheet Pillow-case Cotton towel Cotton tablecloth Transport (1 journey) Barber expenses: 1 hair cut (men) 1 shave Cinema (1 visit) Tobacco : 20 cigarettes 1 oz. pipe tobacco Laundry work sent out: 1 man's shirt 1 sheet Postage (1 inland letter) Telephone (1 call from public station) Newspaper: 1 week-day-paper 1 Sunday paper 121 52 9 87 s 36 l1/2 7 3 6 10 9 . . . . 5l/a 4 ll/g 2 1 2 126 REPORTS ON THE DIFFERENT CITIES APPENDIX B Memorandum on Rents of Working-Class Houses in Manchester The average number of rooms per family shown by the Detroit figures is 4.8. The predominant types of dwelling are stated to contain four or five rooms. In Manchester the predominant types of workingclass dwellings also contain either 4 or 5 rooms, though there are some dwellings with less or more than this number of rooms. The great majority of the working-class dwellings are houses built before the war, and the rents of the great bulk of these are controlled under the Rent Restriction Acts. A proportion of pre-war working-class houses, however, have become de-controlled, and the rents of houses built since the war are not subject to control. There is consequently a considerable variation in the rents charged. As a result of special enquiries which have been made in Manchester, it is estimated that the average rents, including local rates and water charges, of all 4 and 5 roomed houses taken in the proportions yielding the average number of rooms (4.6) shown in the Detroit sample is between 10s. and 10s. 6d. per week. The rents of pre-war houses, which form the great majority of the total number of working-class dwellings, are on the average, below this figure. Of these houses, the four-roomed type contains livingroom and kitchen, Avith in some cases a small scullery, downstairs, and two bedrooms upstairs; houses with five rooms contain parlour or living-room and kitchen, with separate scullery on the ground-floor, and three bedrooms above. Water, hot water to the kitchen sink or from a tap on the kitchen range, separate w.c. and back yard, and gas are provided, but not, as a rule, electricity. Bathrooms, though sometimes provided, are not usual in this type of house, which would appear to be somewhat inferior to the houses in the Detroit sample, 72 per cent, of which had bathrooms, and all of which were supplied with electricity. For new (post-war) houses in Manchester, the rents are higher, ranging generally from about 12s. to rather more than 18s. a week, inclusive of local rates and water charges according to the accommodation provided. It seems probable that, on average, these houses, all of which are provided with bathroom and supplied with electricity, are superior to those in the Detroit sample. In the absence of more detailed information as to the Detroit houses, any attempt to determine what rent in Manchester would be comparable with the average paid by workers in the Detroit sample must necessarily be somewhat arbitrary; but after consideration of all the available data it appears reasonable to adopt a figure for Manchester of 12s. to 13s. a week. CORK (Irish Free State) The data were supplied by the Statistics Branch of the Department of Industry and Commerce and valuable suggestions were made during their elaboration by the Director, Mr. Stanley Lyon. FOOD The prices of the various foodstuffs relate to mid-July 1930. Information on the consumption of an Irish family obtained in a budget enquiry in 1922 as used in the calculation of the Irish Free State cost of living index number was obtained from the Statistics Branch of the Department of Industry and Commerce. The data (prices and weight accounting for 80 per cent, of the total food expenditure at Detroit in 1929 and for 93.1 per cent, in Ireland in October 1930 for 20 articles) used in the calculations are given in the Appendix, table I. The results are as follows: Ratio of food-prices in Cork to Detroit, based on 20 articles (Detroit = 100) : (1) Using Detroit weights (2) „ Irish „ (3) Average of (1) and (2) 81.9 per cent 80.7 „ „ 81.3 „ „ According to the last ratio the cost of the Irish food expenditure is £92 17s. 6d. HOUSING Old houses fitted with modern equipment are very rare in the city of Cork. The rent in such cases is controlled under the Rent Restriction Act and amounts to about £35 per annum. Houses similar to the Detroit type have been erected in recent years by the Cork Corporation. The policy of this Corporation, however, has not been to let but to sell these houses. The Irish statistical authorities have therefore suggested as a good working solution to regard the annuity charged by this Corporation as a rent. For the more recent houses the annuity is £27 6s. (i.e. 10s. 6d. per week), rates at about £6 per annum being additional. 128 REPORTS ON THE DIFFERENT CITIES In view of this information, the Irish Department of Industry and Commerce considers that a rent of £35 per annum might fairly be taken as a representative figure for the upper limit. FUEL AND LIGHT According to the information on Irish family budgets collected in 1922 l the percentage of expenditure spent on fuel and light does not vary much from one income group to another. The following table has been supplied by the Irish Free State Department of Industry and Commerce: Under £3 Percentage of total expenditure on fuel and light . . 8.7 Weekly income per household £3 £4 £5 7.6 7.3 8.1 £6 and upwards 9.0 The Irish Free State statistical authorities therefore suggested to take 8 or 9 per cent, as the expenditure on fuel and light. Correspondingly, a figure of £21 Is. 10d., representing 8 per cent, of the total, has been inserted in the summary. CLOTHING The prices for the various items of clothing based on the American sample collection are given in the Appendix, table II. They relate to July 1930. The cost of these items has been calculated by the two methods. The results are as follows: Method I Method II 9,638d. 9,378d. In the opinion of the Irish Free State authorities a procedure similar to that applied to " Food " should be used in the calculation for " Clothing•". As is explained on p. 22 of this report, this is however not possible because of the great differences in quality and kind between the American sample articles and the clothes usually worn in most of the European countries. Of the two methods the Irish Free State authorities suggest the adoption of Method I. The sum of £40 3s. 2d. was therefore taken for this section of the budget. 1 See Report on the Cost of Living in Ireland, June 1922, p. 15. CORK (IRISH FREE STATE) MEDICAL 129 EXPENSES The prices supplied are given in the Appendix, table III. Their application to the Detroit quantities yields a cost ratio of 68.9 per cent and a total expenditure of £9 Is. 9d. In Ireland there exists a compulsory health insurance scheme with contributions by the employer and the worker. The benefits however are only available to the insured person himself. The above sum has therefore been reduced by the employer's contribution (amounting to 17s. 4d. per annum) which appears below in the special section dealing with such contributions. Accordingly, a sum of £8 4s. 5d. has been inserted in the final summary. MISCELLANEOUS EXPENSES The prices for these items are given in the Appendix, table IV. On the basis of these prices the price ratio of 99.7 per cent. was found, yielding an expenditure of £68 19s. lOd. Contributions to compulsory unemployment insurance are dealt with at this stage. The total yearly contribution of about £4 per male employee (7d. weekly to be paid by the employer, 6d. by the worker, and three-sevenths of the total amount received from employers and workers to be contributed by the State) has been deducted from the above calculated total for " Miscellaneous Expenses ", giving for this item a remainder of about £65. The worker's contribution (£1 6s.) is added separately, and the employer's contribution (about £1 10s.) is shown in the section called "Employer's Contributions to Social Insurance Schemes ", whereas the State contribution does not re-appear at all, thus representing a reduction of the cost of living to the worker, and a reduction of the cost of labour to the employer. TAXATION This item does not appear in the present calculation, as the total obtained lies below the exempted minimum for the type of family here considered. 9 130 REPORTS ON THE DIFFERENT CITIES LIFE INSURANCE The calculation of the life insurance premium has been carried out by the same method as for other cities. The " purchasing power " equivalent to $2,076 is found to be roughly £330, the corresponding yearly premium amounting to £9 18s. There exists in the Irish Free State a non-contributory old-age pension available to persons 70 years of age and over, and it is probable that this fact reduces the feeling of insecurity in view of old age which induced the American workers to take their considerable life insurance policies. But the absence of any compulsory contributions makes it impossible to take this fact numerically into account. The above premium has therefore been inserted without modification. EMPLOYER'S CONTRIBUTION TO SOCIAL INSURANCE SCHEMES In the Irish Free State employers are liable to contribute to the national health insurance (17s. 4d. per annum, see above "Medical Expenses ") and to unemployment insurance (£110s.4d. per annum, see above "Miscellaneous Expenses"). These two contributions have been inserted in the final summary. SUMMAßY July 1930 Food Housing Fuel and light Clothing Medical expenses (including employee's contribution to national health insurance) Miscellaneous expenses Life insurance Employee's contribution to unemployment insurance Employer's contribution to national health insurance Unemployment insurance Total £ s. d. 92 35 21 40 17 0 1 3 6 0 10 2 8 65 262 4 5 0 0 6 11 9 18 0 1 6 0 273 10 11 17 4 110 4 275 18 7 CORK (IRISH FREE STATE) 131 In order to bring the calculations for the different towns to a uniform date (viz. January 1931), it is proposed to modify the above figures in accordance with the changes in the cost of living. For this purpose, the Irish Free State authorities have supplied the following indices: Irish Free State cost ol living index number (July 1914=100) Julyl930 January 1931 1 Food Housing Fuel and light Clothing Miscellaneous expenses. . 156 129 177 211 — Coefficient January 1931October 1930 154 130 174 207. — 98.7 no change 98.3 98.1 98.0 x Estimated. January 1931 (rounded off to nearest shilling) £ Food Housing Fuel and light Clothing Medical expenses (including the employee's contribution to national health insurance) Miscellaneous expenses Life insurance Employee's contribution to unemployment insur ance Employer's contributions to: National health insurance . Unemployment insurance . Total s. d. 91 13 35 0 20 15 39 8 0 0 0 0 . 8 4 258 63 13 0 0 9 18 0 1 6 0 269 17 0 17 1 10 0 0 272 4 132 REPORTS ON THE DIFFERENT CITIES APPENDIX [Unless otherwise stated, the data reproduced in the tables have been collected by the Statistics Branch of the Department of Industry and Commerce.] FOOD TABLE I. Prices as used in t h e calculations * Price per lb. in J u l y 1930 (1) (2) Quantity consumed • in Ireland per family of 5.6 persons during 1.892 weeks in 1922 (3) d. d. lbs. 1. Beef, fresh (roast, 2. Pork, fresh (shoulder) . . 3. Pork, salt, bacon (Irish, (a) Beef (b) Pork 5. Milk, fresh 6. Milk, condensed 6.823 0.680 19.50 13.63 — 19.50 — 14.00 13.25 a 1.75 4.868 0.960 6 — •— 37.434 — 17.50 10.75 10.50 14.64 2.11 2.63 0.64 12.00 .— 20.25 2 18.50 2 17.50 10.75 10.50 14.64 2 2.11 2.63 3 0.64 0.155 6.463 * — — 0.300 s 0.351 « 0.400 5.592 27.314 43.466 ' 50.890 38.00 2.75 13.40 — — 38.00 2.75 .—. 16.00 10.80 2.227 s 10.303 3.578 — 3.29 — •—• 5.50 — •— — 3.31 3,27 .—. 5.00 6.00 6.174« — — 1.908' 12.00 12.00 1.409" — 1.75 (Irish 15. Tea (as used by wage earners) 16. Sugar (white, granulated) 17. Mutton (a) Leg (Ô) Neck 18. Breakfast foods, oat (oat(a) Oatmeal" Pinhead ". (b) Oatmeal " F Lake " . 19. Rice 1 11.50 15.50 • 7. Butter (a) Irish creamery .. . (&) Farmers' 8. Cheese (ordinary grade) . 9. Margarine (1st grade) . . 10. Lard 11. Eggs (1st grade) . . . . 12. Flour, wheat (and other). 13. Bread, wheat (and rye) . 20. 11.50 15.50 Jellies, jam, preserves, marmalade (strawberry jam) 12.00 19.38 • — • • • — • — — The prices in this column are arithmetical averages of the corresponding prices in column (2). ! Yearly average price. ' Price of wheatena bread only. * Sum of 2 kinds. * Cheese: Golden Spray. * Pork sausages. ' Bread. Sum of 3 kinds. * Jam. 133 CORK (IRISH FREE STATE) TABLE II. CLOTHING £ Men's clothing. 1. H a t , felt 2. Cap 3. Woollen suit* 4. Overcoat 5. Cotton trousers 6. Cotton shirt 7. Union suit, cotton 8. Cotton socks 9. Boots 10. Cotton gloves 11. Tie 12. Belt 13. Overall II. Women's clothing 1. H a t 2. Dress, rayon 3. Dress, cotton 4. House dress or bungalow apron 5. Woollen coat 6. Petticoat or slip cotton . . . 7. Bloomers, step-ins or drawers, silk or rayon 8. Shirt or vest, cotton . . . . 9. Stockings, rayon 10. Gloves, cotton 11. Shoes III. Children's clothing (a) Boys 1. Cap 2. Woollen suit* 3. Cotton trousers 4. Overcoat 5. Sweater or lumberjack. . 6. Cotton shirt 7. Union suit, cotton . . . 8. Cotton socks 9. Boots (b) Girls Retail prices (July 1930) s. d. Remarks ' /. 1 1 1 Dress, cotton Dress, rayon Woollen coat Sweater or lumberjack. Petticoat or slip . . . . Union suit, cotton . . . . Bloomers, drawers, cotton Cotton stockings . . . . Shoes 6 6 6 0 11 6 11 3 0 11 11 6 6 6 11 0 6 — 6 3 10 0 2 6 — — — 1 3 6 2 No sample received — — — Tweed trousers —•— Woollen socks — Woollen gloves — — — 3 3 3 3 3 6 1 11 19 6 2 1 6 1 1. Hat 2. 3. 4. 5. 6. 7. 8. 9. 10. 7 3 17 15 6 4 9 2 0 1 1 2 7 4 12 6 1 4 1 10 3 0 11 6 6 10 6 9 0 — — — — — Tweed trousers — Woollen pullover — •— Woollen stockings — 2 3 1 4 16 12 7 1 11 0 6 11 11 5 0 1 6 1 11 9 6 — Two pieces — — — * Consisting oí one coat, one waistcoat and too pairs of trousers. — — 1 In the cases where the sampled article is not used a description of the corresponding article in use for which a price is furnished is given in " R e m a r k s " column. 134 REPORTS ON THE DIFFERENT CITIES TABLE III. — MEDICAL EXPENSES s. Visit to the physician House call Visit to dentist: d. 5 0 10 0 2 6 TABLE IV. — MISCELLANEOUS EXPENSES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Blanket Sheet Pillow-case Cotton towel Cotton tablecloth Daily transport (fare for one tramway or bus ride Barber expenses: 1 hair cut (man) 1 hair cut (child) 1 shave Moving pictures. Price of the cheaper seat at a matinée in an ordinary cinema Newspapers. Price of daily and Sunday newspapers . Tobacco: 1 usual package of smoking tobacco per oz. 1 usual package of cigarettes per packet of 10 s. d. 8 7 1 0 4 3 6 0 8 3 2 1 0 9 0 6 1 3 2 1 0 6 11. Laundry work sent o u t : 1 man's shirt 1 sheet 12. Postage. Inland letters 13. Telephone. Call from a public station . . . . 6 5 2 2 WARSAW (Poland) The data have been supplied by the Central Statistical Office of the Republic of Poland which made special enquiries on behalf of the International Labour Office. FOOD The food-prices relate to July 1930. Thanks to the great detail with which the price-data have been furnished and the large amount of information contained in the publication concerning the budget enquiry of 1927 l, it has been possible to select 41 articles accounting for 72.9 per cent, of the total expenditure on food in Detroit and for about 84 per cent, at Warsaw in 1927, for which both prices and quantities were known for the two towns. The data used in the calculations are shown in the Appendix, table I. The results are as follows : Ratio of cost of food in Warsaw to Detroit, based on 41 foodstuffs (Detroit=100) : (1) Using Detroit weights . . . 62.6 per cent. (2) „ Warsaw „ . . . 44.1 (3) Average of (1) and (2) . . 52.5 The difference between ratio (1) and (2) indicates that the habits of consumption are considerably different in the two towns. The application of ratio (3) gives an expenditure in Warsaw of 2,604 zloty. HOUSING A special enquiry was made into rents in Warsaw and the information obtained is given in the Appendix, table II. The figure of 1,585 zloty (average rent for 41/» rooms) is taken on the proposal of the Central Bureau of Statistics. It represents most probably the "lower limit" for rent. 1 Budzety Rodzin Robotniczych 1927, Statystyka Polski, Tom XL, Zeszyt I, Warsaw 1930. 136 REPORTS ON THE DIFFERENT CITIES FUEL AND LIGHT The prices of the various table III. The information enquiry of 1927 mentioned for the heating and lighting articles are given in the Appendix, furnished by the family budget above gives the following figures of one room: Coal Wood, etc Lamp oil 1,351.68 kg. 238.95 kg. 47.29 It. These quantities give a total (allowing 6.12 zloty for minor expenditure) of 171 zloty. Assuming that 30 per cent, of this expenditure represent the cost of cooking, the cost of heating and lighting for each additional room would be about 120 zloty, giving a total of 591 zloty for an apartment of 41/2 rooms. This figure has been approved by the Polish Central Statistical Office. CLOTHING The prices of clothing are given in the Appendix, table IV, and relate to February 1931. The two methods give the following results: Method I Method II 1,327 zloty 1,317 „ Method I is selected on the advice of the Central Statistical Office. By use of the official cost of living index number for Warsaw, this result becomes about 1,470 zloty for July 1930. MEDICAL EXPENSES A system of compulsory sickness insurance exists in Poland which covers the medical expenses of the worker and his family, wages during sickness, and up to three weeks' wages in case of death. The payment is 57.18 zloty per month for a monthly income of 700-720 zloty. Of this 60 per cent, (or 411 zloty per year) is paid by the employer and 40 per cent, (or 274 zloty per year) is paid by the worker. MISCELLANEOUS EXPENSES The prices obtained are given in the Appendix, table V. On the basis of these prices the cost ratio at Warsaw compared with Detroit is found to be about 70 per cent., giving a total expenditure of 2,205 zloty. WARSAW 137 (POLAND) Unemployment insurance is compulsory in Poland. The total contributions amount for a daily wage of 10.00 zloty or more to 0.27 zloty per day, or about 81 zloty per year. Twosixths of this sum are paid by the public authorities (national and local), three-sixths by the employer, and the remaining sixth by the worker himself. Accordingly, the whole amount of 81 zloty is deducted from 2,205 zloty, giving a remainder of 2,124 zloty for "Miscellaneous Expenses " ; the worker's contributions (13.5 zloty) are added separately below in the section dealing with his contributions to social insurance schemes, the employer's contributions (40.5 zloty) appear in the last section dealing with employer's charges for social insurance schemes, whereas the State contributions (27 zloty) do not re-appear at all, thus representing a net reduction of the cost of living to the worker, and of the cost of labour to the employer. L I F E AND SOCIAL I N S U R A N C E The method applied to determine the "purchasing power equivalent " to $2,076 is the same as for other cities, yielding for Warsaw an insurance sum of about 10,000 zloty. The annual premiums payable on this sum are about 300 zloty. This sum has been inserted in the final summary. The worker's contributions to unemployment insurance also appear in this section (see above "Miscellaneous Expenses"). TAXATION The Polish statistical authorities have supplied the following information with regard to taxation: I. Income tax. For incomes from 8,000 to 8,800 zloty the rate is 3.9 per cent., giving a total for the computed income of 337 zloty. II. A tax on rents payable by the tenant representing 8 per cent, of the rent, giving a total of 127 zloty. EMPLOYER'S CONTRIBUTIONS TO SOCIAL INSURANCE SCHEMES An amount of 451 zloty has been adopted, representing the employer's contributions to sickness insurance (411 zloty, see above "Medical Expenses") and unemployment insurance (40 zloty, see above "Miscellaneous Expenses "). 138 REPORTS ON THE DIFFERENT CITIES SUMMARY July 1930 Zloty Food Housing Fuel and light Clothing Medical expenses Miscellaneous expenses (less contributions to unemployment insurance) Life insurance Worker's contribution to unemployment insurance . Taxation 2,604 1,585 591 1,470 274 2,124 8,648 300 14 464 9,426 Employer's social insurance contributions: Sickness 411 Unemployment 40 Total 9,877 The above data relate to July 1930. In order to bring them to January 1931, the index number for this date, published by the Central Statistical Offlce, has been applied. The results are to be found below in the summary for January 1931. The indices used are as follows: Polish cost of living index numbers July Í930 Food . Housing Fuel and light Clothing Miscellaneous expenses . " January 1931 87.7 113.7 135.7 108.9 112.3 76.0 113.7 139.6 100.2 109.3 ~ " Ratio 86.6 100.0 102.9 92.0 97.3 January 1931 (rounded off to the nearest 5 zloty) Zloty Food Housing Fuel and light Clothing Medical expenses Miscellaneous expenses (less contributions to unemployment insurance) Life insurance Worker's contribution to unemployment insurance . Taxation Employer's social insurance contributions: Sickness Unemployment Total 2,255 1,585 605 1,350 275 2,065 8,135 300 15 440 8,890 410 40 9,340 139 WARSAW (POLAND) APPENDIX [Unless otherwise stated, the data reproduced in the tables have been collected and supplied by the Central Statistical Office of the Republic of Poland.] TABLE I. — FOOD Price per kg. Price per kg. as used in the at Warsaw in calculations ' July 1930 (1) zi. Beef 2.93 (a) Fresh, steak . . . . (b) Roast (c) Stew 3.00 Veal 3.20 Pork, fresh 3.25 Bacon 3.50 4.30 Poultry 4.10 Sausage 1.20 Fish (a) Fresh . . . . It. 0.44 (b) Salt 5.59 9. 4.125 10. Milk, fresh Butter Cheese 11. (a) Ordinary American . 4.36 12. (b) Other 2.45 13. 0.91 Lard 14. 0.95 0.44 15. Eggs . . . . 16. Flour, wheaten 4.00 Bread, wheaten . . . . 17. 4.50 18. Bread, rye 1.69 19. Cakes and cookies . . . 0.20 20. Oranges 27.43 21. Sugar 9.89 22. 3.10 Potatoes, Irish Tea Coffee 23. Mutton 1.00 24. (a) Chops 3.50 25. 2.70 (b) Roast 26. (c) Stew 4.00 27. Bones (soup) It. 2.30 28. Other meat, not canned 6.00 29. Cooked meat, ham . . 0.44 30. Fish, canned, other t h a n salmon 1.82 31. Cream 1.40 32. Vegetable oils 0.83 Flour other t h a n wheaten Macaroni, spaghetti and noodles Rice (Pathma) . . . . • See Breakfast footnote to table foodsI on .next . . page. . (a) Wheat (b) Oats (c) Other (2) zi. 3.00 2.94 2.85 3.00 3.20 3.25 3.50 4.30 4.10 1.20 It. 0.44 5.59 4.75 3.50 4.36 2.45 0.91 0.95 0.44 4.00 4.50 1.69 0.20 27.43 9.89 3.00 3.30 3.00 1.00 3.50 2.70 4.00 It. 2.30 6.00 0.44 82 40 1.10 0.90 0.48 140 REPORTS ON THE DIFFERENT CITIES Price per kg. Price per kg. as used in the at Warsaw in calculations ' July 1930 (1) 33. Cabbage (white-heart) 34. Sauerkraut . 37. Honey (molasses, syrup) 38. Cocoa 39. Jellies, preserves, marmalade and fruit b u t t e r . 40. Coffee substitutes . . . 41. Sweets (candy) . . . . (2) Annual quantity consumed in 1927 at Warsaw per unit of consumption (3) 0.30 0.30 0.36 2.00 3.00 6.00 0.30 0.30 0.36 2.00 3.00 6.00 18.3 4.2 •3.0 0.1 0.1 0.1 2.50 2.67 3.00 2.50 2.67 3.00 0.3 0.7 1.9 • The figures in this column are arithmetical averages of the corresponding prices in column (2). ' 1 It. = 0.719 gr. 3 Pastry. * Sardines and sprats. « Flour, "rye " and "other ". " Macaroni. ' Ham. SOURCE: Prices supplied by the Polish statistical authorities. Quantities taken from: Budzety Rodzin Robotniczych, 1927, Statystyka Polski, Tom X L , Zeszyt I. TABLE II. HOUSING Rent for apartments of different size in July 1930 Dwelling of of of of of of 1 2 3 4 5 6 room rooms rooms rooms rooms rooms 298 495 892 1,279 1,890 2,502 TABLE III. Coal Wood Lamp oil clothing 1. Cap 2. Woollen suit 3. Overcoat 4. Cotton trousers 5. Cotton shirt 6. Union suit, cotton 7. Cotton socks 8. Boots and shoes 9. Cotton gloves 10. Tie 11. Belt 12. Overall 10 gr. •—• gr. 20 gr. 40 gr. 70 gr. — gr. a a a a a a year year year year year year February 1931 LIGHT Price in July 1930 Unit Zloty kg. kg. It. TABLE IV. Men's FUEL AND zlotys zlotys zlotys zlotys zlotys zlotys CLOTHING 0.08 0.105 0.664 Price i n z l °ty 2.83 102.50 95.00 9.88 8.08 13.83 2.08 32.67 1.50 2.90 6.00 13.00 WARSAW 141 (POLAND) F e b r u a r y 1931 / / . Women's Clothing 1. H a t 2. Dress, rayon 3. Dress, cotton 4. House dress or bungalow apron 5. Woollen coat 6. Petticoat or slip, cotton 7. Bloomers, step-ins or drawers, rayon 8. Shirt or vest, cotton 9. Stockings, rayon 10. Shoes 11. Gloves III. Children's clothing (a) Boys 1. Cap 2. Woollen suit 3. Cotton trousers 4. Overcoat 5. Sweater or lumberjack 6. Cotton shirt 7. Union suit, cotton 8. Cotton socks 9. Boots (b) Girls 1. H a t 2. 3. 4. 5. 6. 7. 8. 9. 10. . . . . 9. 10. 11. 12. 1 13. 14. 2.67 46.88 5.10 29.63 16.00 3.42 6.00 2.38 19.00 2.00 Dress, cotton 11.00 Dress, rayon Woollen coat Sweater or lumberjack Petticoat or slip, cotton Union suit, cotton Bloomers, drawers, cotton Cotton stockings Shoes 37.50 48.13 11.10 2.13 5.92 2.13 2.75 15.00 T A B L E V. —• MISCELLANEOUS E X P E N S E S 1. 2. 3. 4. 5. 6. 7. 8. Price in zloty 5.00 61.88 14.50 11.00 110.00 5.25 6.17 4.48 5.95 26.00 4.06 Blanket Sheet Pillow-case Cotton towel Cotton or linen tablecloth Table oilcloth Daily transport (1 ride) Barber expenses: 1 hair cut (man) 1 shave 1 hair cut (child) Moving pictures (1 ticket) Newspapers: 1 daily paper 1 Sunday paper Tobacco: 1 package of 20 cigarettes ( " G r a n d P r i x " brand) 1 package of 2 ounces Laundry work sent out: 1 men's shirt 1 sheet Postage (1 inland letter)' ' . ' . ' . ' . ' . ' . ' . ' . ' . Telephone (1 call from public station) . . . The prices for Nos. 1-6 relate t o F e b r u a r y 1931. J u l y 1930 > Price in zloty 60.00 12.33 2.85 1.50 11.40 11.85 0.25 1.25 0.80 0.80 1.50 0.20 0.30 1.00 2.50 1.80 0 75 0^25 0.15 BARCELONA (Spain) The enquiries were made by the Spanish Ministry of Labour in collaboration with the Regional Delegation of Labour for the province of Cataluña at Barcelona. FOOD The prices of foodstuffs relate to September 1930. Information on Barcelona consumption weights was obtained mainly from the published figures on average per capita consumption of certain important foodstuffs in that city for the year 1916 K It has been possible to find weights and prices both at Detroit and Barcelona for 20 articles. The data (prices and weights for Barcelona) are given in the Appendix, table I. The calculations yielded the following results: Ratio of cost of food in Barcelona to Detroit, based on 20 foodstuffs (Detroit = 100) : (1) Using Detroit weights (2) „ Barcelona weights (3) Average of (1) and (2) 51.5 per cent. 45.7 „ „ 48.5 „ „ By applying the latter ratio to the Detroit food expenditure (calculated at the average exchange rate for September 1930, viz. 0.1073 dollar for 1 peseta), the corresponding Barcelona food total is found to be 2,514 pesetas. HOUSING Only information concerning the "lower limit" for rent (see pp. 19 of this report) could be obtained for Barcelona. The following description is given of this dwelling: It contains 4 to 5 rooms, is equipped with electric light and gas for cooking (slot meters), has neither bathroom (which is practically never met with in workers' dwellings) nor central heating, but running cold water and inside w.c. The rent is 960 pesetas per annum. This figure has been adopted. Taxes on rent are dealt with below (see "Taxation "). 1 See Appendix, table I. BARCELONA (SPAIN) 143 FUEL AND LIGHT Barcelona working men have no central heating in their homes. In some very rare cases petroleum stoves are met with. Wood-coal is generally used for heating, but the average quantity consumed is very small. One "arroba " (i.e. 10 kg.) per month and per person is sufficient for heating during spring time (February to April), and this quantity may double in winter (November to January). The total yearly consumption per family of 4-5 persons is estimated at 500 kg. The average monthly consumption per person of gas for cooking is given as 7.50 m3, the yearly quantity per family of 4.5 persons being about 405 m3. The yearly consumption of electricity for lighting is estimated at 120 kwh. By applying the prices given in the Appendix, table II, the estimated expenditure of 502 pesetas is obtained. For taxation on this kind of consumption see below "Taxation ". CLOTHING The prices for clothing articles relate to September 1930 and are given in the Appendix, table III. By applying the usual two methods the following results are obtained: Method I Method II 1,440 pesetas 1,227 „ The large difference between these results is due to the very different habits and climate in Detroit and Barcelona. The last figure has been adopted in the final summary. MEDICAL EXPENSES The data supplied are given in the Appendix, table IV. By the ordinary evaluation an expenditure of 215 pesetas is obtained. This is in fair agreement with information supplied by the Spanish statistical authorities, according to which families may become members of private sickness funds by a monthly payment of 10 pesetas. The benefits in this case include all kinds of medical services, but not medicaments. The sum of 215 pesetas has therefore been adopted. MISCELLANEOUS EXPENSES The prices supplied are reproduced in the Appendix, table V. By calculating the cost of comparable items in Detroit and 144 REPORTS ON THE DIFFERENT CITIES Barcelona the ratio of 56.4 per cent, and the corresponding expenditure of 1,773 pesetas are obtained. LIFE INSURANCE The "purchasing power equivalent " to 2,076 dollars is estimated at 9,000 pesetas. The premium on this sum would be about 270 pesetas per annum. TAXATION Incomes are subject to the general income tax according to the following scale: Income 6,000-7,000 pesetas . . . . 7,000-8,000 „ . . . . 8,000-10,000 Rates 8 per cent. 9 12 In the case here considered, the income tax amounts to 647 pesetas per annum. In addition there exist various forms ¿f direct taxation as follows: (1) a t e n a n t s ' t a x , due on rents above 840 pesetas per annum, and in t h e present case amounting to . (2) a t a x on consumption of gas and electricity, fixed a t 17 per cent, of expenditure, amounting to . . (3) a personal t a x , also fixed according to t h e rent paid, and amounting to Total miscellaneous taxation Pesetas 30 56 30 116 SUMMARY (September 1930) (rounded off to the nearest 5 pesetas) Food Housing . . : Fuel and light Clothing Medical expenses Miscellaneous expenses Life insurance Taxation (a) Income t a x (6) Miscellaneous taxation Pesetas 2,515 960 500 1,225 215 1,775 7,190 270 645 115 Total 8,220 There exists only a general cost of living index-number for Barcelona •which was 174 in September 1930 and 182 in J a n u a r y 1931 (average 1914 = 100). By applying t h e coefficient 1,046 t o the above total, this becomes approximately 8,600 pesetas, relating to J a n u a r y 1931. 145 BARCELONA (SPAIN) APPENDIX [Unless otherwise stated, the data reproduced in the tables have been collected and supplied by the Spanish Ministry of Labour in collaboration with Regional Labour Delegation lor Cataluña.] TABLE I. FOOD Prices as used in the calculations ' Prices at Barcelona in September 1930 (1) (2) Pesetas Pesetas Annual quantity consumed at Barcelona per inhabitant in 1916 1. Beef 4.25 5.00 (a) 1st class 3.50 (b) 2nd class 6.50 6.50 2. Pork, fresh (lean) . . . 3.25 3.25 3. Bacon 6.00 4. Poultry and game . . . 6.00 (a) Fowl 6.00 (b) Rabbit 2.375 1.00-5.00 5. Fish, fresh 1.75 (a) "Fish, fresh" . . . (b) Cod, fresh 2.75 2.75 6. Fish, dry and salt (cod, 0.70 0.70 dried) 0.35 0.35 7. Bread (wheaten) . . . . 1.125 8. Potatoes 0.44-1.326 9. Fruits, fresh 1.25 1.75 (a) Lemons 0.34-0.66 4 (b) Apples 1.25 3 (c) Pears 1.75 1.75 (d) Oranges 4.90 (e) Other 5.25-7.00 10. Sugar 2.92,3.50-3.81,4.38 0.679 0.679 11. Eggs 10.00-12.00 11.00 (a) Spanish 3.90 3.90 (b) Imported 12. Milk 1.75 1.75 13. Coffee 1.375 1.00-1.75 14. Mutton 1.00 0.75-1.25 15. Macaroni (spaghetti, 1.50 0.75-2.25 0.53 — noodles) — 0.40 16. Rice — 0.40-1.00 17. Peas — 0.50 18. Beans 2.22 2.22 19. Fresh vegetables . . . (a) Spinach 1 The prices ot this column are simple averages of the corresponding prices in column(2). Tomatoes * A hen (b) is considered to weigh 1.500 kg. ' Price of plums. * 6.6 oranges per kg. • 8.8 lemons per • Average per ¡head at (Barcelona in 1916, distributed according to 1923 (c) kg. Onions figures. ' Bread. • Average per head in Spain in 1916. 20. Olive oil 10 146 REPORTS ON THE DIFFERENT CITIES SOURCE: Prices supplied by the Spanish statistical authorities. Quantities taken from " Anuario Estadístico de la Ciudad de Barcelona ", Año XV, 1916, p. 568. The distribution of meat consumption between different kinds in 1923 was obtained from"Boletín de Estadística", issued by the Jefatura Superior de Estadística, July-September 1924. Furthermore the average per capita consumption of coffee in 1916 in Spain was taken from Anuario Estadístico de España, Año XIV, 1928, p. 340. TABLE I I . FUEL AND LIGHT Prices in September 1930 Pesetas Unit 1. Wood-coal 2. Gas 3. Electricity 10 kg. m3 kwh. TABLE III. — CLOTHING Prices in September 1930 Pesetas / . Men's clothing 1. Felt hat 2. Cap 3. Woollen suit 4. Overcoat 5. Cotton trousers 6. Cotton shirt 7. Cotton socks 8. Boots and shoes 9. Cotton gloves 10. Tie 77. Women's clothing 1. Dress, rayon 2. House dress or bungalow apron 3. Woollen coat 4. Petticoat or slip, cotton 5. Bloomers, step-ins or drawers, rayon 6. Shirt or vest, cotton 7. Stockings, rayon 8. Gloves, cotton III. Children's clothing (a) Boys 1. Cap 2. Woollen suit 3. Cotton trousers 4. Overcoat 5. Cotton shirt 6. Cotton socks 7. Boots (b) Girls 1 Price at Barcelona for "cotton skirt" Pesetas 10.00 1 1. „Hat „ „ „ " cotton blouse " „ 8.00 J * ,. 2. „Cotton „ dress „ "woollen skirt" „ 17.50 1 „ 3. „Woollen .. „ "vTOollen blouse" „ 15.00 i coat 4. Petticoat or slip, cotton 5. Bloomers, drawers, cotton 6. Cotton stockings 7. Shoes 3.50 0.60 0.70 15.00 6.00 90.00 100.00 3.50 4.50 1.75 18.00 4.00 3.00 75.00 9.00 87.50 15.50 11.00 12.00 4.25 4.00 . 5.00 80.00 3.00 50.00 7.50 4.00 12.00 15.00 18.00 » 32.50 2 6.00 3.25 3.00 8.50 147 BARCELONA (SPAIN) TABLE IV. MEDICAL EXPENSES Prices in September 1930 Pesetas 1. Visit to doctor 2. House call 3. Visit to dentist TABLE V. 5.00 10.00 5.00 MISCELLANEOUS EXPENSES Prices in September 1930 Pesetas 1. 2. 3. 4. 5. 6. Blanket Sheet Cotton towel Cotton or linen tablecloth Transport (1 return ticket) Barber expenses: (a) hair cut (man) (b) hair cut (child) (c) shave 7. Moving pictures (1 ticket) 8. Tobacco: 20 cigarettes 1 kg 9. Postage (1 inland letter) 18.00 12.00 3.00 10.75 0.80 0.60 0.40 0.40 0.50 0.30 20.00 0.30 ISTANBUL (Turkey) The enquiries have been made by the Istanbul Chamber of Commerce and Industry. Valuable assistance has been given by Mr. Mehmet Vehli, Secretary General, and by Mr. Necmettin Osman, Chief of the Statistical Bureau of the Chamber. FOOD The prices of foodstuffs relate to January 1931. Istanbul consumption weights were taken from the official cost of living index number published by the Chamber of Commerce. After some adjustments in order to take into account the considerable differences in the habits of consumption, it has been possible to establish a list of 19 articles for which prices and consumption weights are available. The Turkish data used in the calculations are given in the Appendix, table I. The following results were obtained : Ratio of cost of food in Istanbul (Detroit = 100): (1) Using Detroit weights (2) Using Istanbul weights (3) Average of (1) and (2) to Detroit, based on 19 foodstuffs 58.4 per cent. 50.0 „ „ 54.0 „ „ By applying ratio (3) to the total Detroit food expenditure (taking the exchange at £T.2.123 for one dollar) the corresponding expenditure at Istanbul is found to be about £T.638. HOUSING The only information available for Istanbul is to indicate that the average rent for a dwelling of 4 to 5 rooms is £T.300 per annum. Such a dwelling, however, is not equipped with gas, and only in rare cases with electricity. Experts consulted by the Office have confirmed this figure as representing an acceptable estimate of the " lower limit ". F U E L AND L I G H T The calculations for this item of expenditure have been based on the consumption weightsused in the Istanbul cost of 149 ISTANBUL (TURKEY) living index. They represent the monthly consumption of a family living in a house to which the above rents might refer. Consequently no expenditure for gas is shown, wood coal being used for cooking. Also there is no expense shown for electricity, which is usually substituted by lamp oil. The following table shows the calculation for this item, using prices for January 1931. Monthly quantities consumed at Istanbul kg. Lamp oil (or electricity) . . 12.8 Wood coal 64.2 Wood 250.0 Monthly expenditure . — Yearly expenditure . . — Price Cost at Istanbul £T. 100 £T. 21.82 4.68 400.00 — — 2.80 3.00 4.00 9.80 117.60 Allowing a small sum for the consumption of matches, candles, etc., the yearly expenditure has been estimated at £T.125. This figure has been inserted in the final summary. CLOTHING The prices for clothing articles at Istanbul relate to January 1931 and are given in the Appendix, table II. By applying the usual two methods the following results are obtained : Method I Method II £T.470 £T.549 The considerable difference between these results is due to the very different habits and climate between Detroit and Istanbul. The special difficulty of obtaining prices for women's clothing in a country where the samples are not frequently worn accounts largely for the greater sum obtained by Method II, which is based on adults' clothing only. For this reason, Method I has been given preference and its result has been adopted in the final summary. MEDICAL EXPENSES The prices supplied are reproduced in the Appendix, table III. By the ordinary evaluation a cost ratio of about 32 per cent, is obtained with a corresponding expenditure of about £T.43. 150 REPORTS ON THE DIFFERENT CITIES MISCELLANEOUS EXPENSES The data supplied are reproduced in the Appendix, table IV. By calculating the cost of comparable items in Detroit and Istanbul, the ratio of about 70 per cent, and an expenditure of about £T.500 are obtained. LIFE INSURANCE The "purchasing power equivalent" of 2,076 dollars is estimated at £T.2,600. The annual premium for this sum at the rate of 3 per cent, would be £T.78. SUMMARY The following is a summary of rough estimates obtained for the various sections of the budget. The great dissimilarity between the general conditions of life at Istanbul and Detroit makes it practically impossible to compare the cost of living in these two towns. Furthermore, no information on taxation has been available, and this item has therefore been omitted. The only result which seems approximately comparable in degree of reliability to those obtained for other towns included in this enquiry is that relating to food. The following table should therefore not be compared with similar summary tables for the other towns and the final result should only be used with caution. January 1931 Estimated cost at Istanbul £T. Food Housing Fuel and light Clothing Medical expenses Miscellaneous expenses Life insurance Total 638 300 125 470 43 500 78 2,154 151 ISTANBUL (TURKEY) APPENDIX [The data reproduced in the tables have been collected and supplied by the Istanbul Chamber of Commerce and Industry.] TABLE I. — FOOD Prices at Istanbul in January 1931 £T. 100 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 1 Meat (fresh) (mutton) Fish (fresh) Milk (fresh) Buttermilk (Yoghourt) Cheese Butter i Vegetable oils (olive oil) Eggs Bread Sugar Fruits (fresh) Potatoes Vegetables, fresh Beans (dry) Peas (dry) Onions Rice Macaroni Coffee Kg. 58.46 50.66 23.38 46.77 50.66 132.50 54.56 61.43 8.60 39.75 19.49 9.74 10.91 25.72 23.38 4.68 31.18 28.84 102.88 Butter is only used for cooking. TABLE II. — CLOTHING Monthly quantity consumed by a family at Istanbul 10.3 3.8 29.5 6.4 3.8 3.8 3.8 2.9 57.7 7.7 12.8 5.1 38.5 2.6 2.6 7.7 5.1 2.6 0.6 Prices in January 1931 J. Men's clothing 1. Felt hat 2. Cap 3. Woollen suit 4. Overcoat 5. Cotton trousers 6. Cotton shirt 7. Union suit, cotton 8. Cotton socks 9. Boots or shoes 10. Cotton gloves 11. Tie 12. Belt 13. Overall II. Women's clothing 1 Hat 2. Dress, rayon 3. Dress, cotton 4. House dress or bungalow apron 5. Woollen coat 6. Petticoat or slip, cotton 7. Bloomers, step-ins or drawers, rayon 8. or vest, ' 11. 10. Arithmetical 9. Shirt Stockings, Shoes Gloves, average cotton rayon ofcotton prices quoted for cotton shirts and cotton £T 10.00 2.00 50.00 45.00 10.00 2.75 2.00 0.45 12.50 1.50 1.50 1.50 2.00 6.00 30.00 10.00 5.00 35.00 2.50 2.00 1 1.25 vests. 10.00 1.50 152 REPORTS ON THE DIFFERENT CITIES III. Children's clothing (a) Boys Prices in January 1931 1. Gap 2. Woollen suit 3. Cotton trousers . 4. Overcoat 5. Sweater or lumberjack 6. Cotton shirt 7. Union suit, cotton 8. Cotton socks 9. Boots (f>) Girls 1. Hat 2. Cotton dress 3. Rayon dress 4. Woollen coat 5. Sweater or lumberjack 6. Petticoat or slip, cotton 7. Union suit, cotton 8. Bloomers, drawers, cotton TABLE III. — MEDICAL 9. Cotton stockings 10. Shoes , , . 1.00 3.00 10.00 8.00 3.00 1.50 1.20 0.50 EXPENSES 0.40 Prices in January 5.00 1931 £T. 1.00 Visit to doctor 2.001 1.001 House call Visit to the dentist 1 1.00 15.00 3.00 15.00 3.00 1.00 1.20 0.25 5.00 Estimated price. TABLE IV. — MISCELLANEOUS EXPENSES Prices in January 1931 £T. 1. 2. 3. 4. 5. 6. 7. 8. Blanket Sheet Pillow-case Cotton towel Cotton or linen tablecloth Table oilcloth Transport (per day) Barber expenses: 1 hair cut (men) 11 hair cut (child) Estimated price. 1 shave 9. Tobacco (packet of 20 cigarettes) 10.00 1.50 0.40 1.00 2.25 1.50 0.135 0.25 0.251 0.251 0.125 ANNEXES ANNEX I Standard of Living of Employees of Ford Motor Co. in Detroit1 SELECTION OF FAMILIES In making the study it was believed by the bureau that budgets from 100 families, covering the full year 1929, would be a sufficiently representative sample, provided the families selected were of approximately similar type. With this in mind the families canvassed were restricted to those which met the following requirements: The husband must have earned approximately ?7 per day during the year 1929. He must have been in the employ of the Ford Motor Co. throughout the year and have worked at least 225 days. He must have been the breadwinner in the family, and the family must have had no material income other than the earnings of the husband. The family must have consisted of a husband, a wife, and not less than two nor more than three children. No child must have been more than 16 years of age on the birthday occurring in 1929. There must have been no other person living in the family. This excludes boarders and lodgers and relatives. There must have been no expenditures for the benefit of persons living outside the family. The family must have kept house in a single house, flat, or apartment throughout the year. Families buying homes could be included when the payment on the home was fairly comparable to the rental value of a similar house. In the case of families owning their homes the rental value of the home was considered equivalent to a payment of rent. Any payment in excess of the rental value was considered a surplus and any amount, less than the rental value was considered a deficit. It was very difficult to find families that met or even closely approached these requirements. All told, 1,740 married men receiving about $7 per day were selected by the company as prospects. These men were interviewed in the factory by trained agents of the bureau. The great majority of the prospects had to be rejected for various reasons—the average wage for the year was too high or too low, or the men worked less than 225 days in the year. Many families had boarders and lodgers, or dependants in or outside the family other than the wife and children. Often it was found that families had more or fewer children than the number decided on for the standard, or had children above the age limit. In many families the wife or children worked and contributed money to the family fund and many families lived considerably above or below the wage income of the husband. The whole purpose of the study was to determine how a selected type of natural family lived on approximately a $7 per day wage. Therefore, if the family spent any material income other than the $7 per day, it was not living at the $7 per day standard. If the family 1 From the Monthly Labour Review (June, 1930) of the Bureau oí Labor Statistics, United States Department ol Labor. 156 ANNEX I undertook to support others than those in the natural family such charge was outside the support of a family proper. If the family kept boarders and lodgers it is assumed that they did so to supplement the family income, and if the wife and children were working and bringing in any appreciable amount of money the family was not living on the husband's $7 wage. A list was finally secured of families that appeared to meet the requirements. The bureau agents then visited these families and obtained the desired data. Despite the care exercised in the preliminary interview in the factory, close questioning of the family in the home sometimes showed that it did not meet the requirements after all, due to incomplete or incorrect statements made by the husband at the factory. The amount of the income was obtained from the husband and the factory records, but the information as to expenditures was obtained mainly from the wife. The questionnaire used contained 480 items. As had been found in former family budget studies made by the bureau, few families kept a record of expenditure during the year and few families had any definite plan for spending their money. Also, as in former studies, the memory of the housewife was the principal source of information. Use was made of such bills or other records as the housewife had. It is believed that the facts reported as to the cost of living of these families are fairly accurate and dependable. While there may be minor defects in the returns, it is believed that collectively the figures show very thoroughly and concisely the way these selected families of semi-skilled and unskilled wage earners of the Ford Motor Co. in Detroit are living. The families were conscientious in supplying the information and willingly co-operated in furnishing data to the agents. Only two families refused to furnish information. A considerable number of families barred from the study by the limitations stated manifested a great interest in the study and were disappointed because they could not be included. The days worked by the husbands ranged from 225, the minimum set for the study, to 279, and averaged 250 for all husbands. Only 6 per cent, of the men in this study worked fewer than 230 days; 17 per cent, worked 230 and less than 240 days; 28 per cent, worked 240 and less than 250 days; 28 per cent, worked 250 and less than 260 days; 12 per cent, worked 260 and less than 270 days; while 9 per cent, worked 270 and less than 280 days. In 1926 a five-day week was instituted by the Ford Motor Co., and therefore a man employed full time would work 260 days a year. This study included 18 men who worked more than full time during 1929. It was found not to be practicable to adhere absolutely to a $7 daily rate. It was not until December, 1929, that the $7 minimum was established in the plant. All of the men for whom the family budget was obtained received increases in wage rates during the year. The daily factory earnings of the husbands in these families throughout the year ranged from $6.40 to $7.23 and averaged $6.78 per day. Seven men earned less than $6.50 per day; 20 earned $6.50 and less than $6.70 per day; 64 earned $6.70 and less than $6.90 per day; 4 earned $6.90 and less than $7.10 per day; and 5 earned $7.10 and less than $7.30 per day. The average year's earnings in 1929 for all husbands was $1,694.63. STANDARD OF LIVING OF DETROIT EMPLOYEES 157 As before stated, families who reported an appreciable amount of income other than the earnings of the husband were eliminated from the study. The schedule, however, called for the sources and type of any additional income even though it was an insignificant factor in the family budget. For all families the additional income averaged only $17.24 and constituted only 1 per cent, of the total income. A few of the husbands in the families covered earned a little money for work done outside the factory, in various lines such as carpenter work, painting, repairing automobiles, repairing shoes, or working in a store. A small amount of money was earned by wives in sewing and washing. Eight of the families were reported as raising a little garden truck, two received a small amount from the temporary rental of garages on the home properties, and four families reported some fuel picked up. A few families raised chickens which netted a little income. Small gifts from persons outside the family constituted most of the supplementary income. These gifts were mainly of clothing, although there were some small gifts of food, money, wood, toys, etc. SUMMARY OF INCOMES AND EXPENDITURES As above stated, the average earnings of the husband in the families canvassed was $1,694.63, and the average income from all other sources was $17.24, making a total average income of $1,711.87. The average expenditures of the 100 families were $1,719.83. This leaves an average deficit for all families of $7.96. Table I shows the expenditures of the families during the year, distributed among the principal classes of items. As would be expected, food constituted the principal item of expense, forming 32.3 per cent, of the total expenditure. Housing was next in importance, forming 22.6 per cent, of the year's expenditures, while 12.2 per cent, went for clothing. No other single item required as much as 10 per cent. TABLE I. — AVERAGE AMOUNT AND P E R CENT, O F EXPENDITURE FOR EACH GROUP O F ITEMS Cents 2.72 2.05 2.50 16.9 18.4 19.1 9.4 2.86 2.41 0.74 61 15.4 3.95 25.7 31.7 9.69 6.40 1.95 — 55.7 11.22 — 591.4 11.9 65.3 6.9 4.5 20.4 76.5 3.4 39.2 13.8 17.9 15.7 47.8 9.4 4.6 0.2 957.2 5.6 22.7 180.67 3.62 19.94 2.10 1.37 6.22 23.37 1.03 11.97 4.21 5.47 4.80 14.61 2.87 1.42 0.06 1.71 6.92 14.94 0.59 2.65 0.69 0.53 1.92 3.10 0.65 1.64 3.27 1.70 0.56 1.82 0.33 0.27 0.05 0.55 1.34 4.56 0.18 0.81 0.21 0.16 0.59 0.95 0.20 0.50 1.00 0.52 0.17 0.56 0.10 0.08 0.02 0.17 0.41 100 52 96 45 48 85 98 55 91 95 86 51 88 37 25 10 41 50 591.4 22.8 68.0 15.2 9.4 24.0 78.1 6.1 43.1 14.5 20.8 30.8 54.4 25.4 18.6 1.9 13.7 45.3 14.94 1.13 2.77 1.54 1.10 2.26 3.16 1.18 1.80 3.45 1.97 1.10 2.07 0.89 1.09 0.53 1.33 2.67 2.5 5.0 4.1 10.1 11.7 9.4 4.1 19.2 4.2 23.7 9.5 3.6 3.8 3.5 5.9 27.6 9.7 5.9 292.36 36.60 11.19 — 1,083.5 44.98 12.6 44.2 6.7 63.5 3.85 13.51 2.06 19.42 1.38 1.74 0.77 0.42 0.53 0.24 70 96 47 18.0 46.1 14.3 1.97 10.9 1.82 3.9 1.64 11.5 3.89 1.19 — 78.4 5.43 29.5 20.1 12.3 23.4 14.1 9.00 6.15 3.75 7.13 4.30 $2.83 2.57 1.49 2.36 1.46 $0.86 0.78 0.45 0.72 0.45 88 80 67 71 51 33.5 25.2 18.3 32.9 27.6 $3.21 3.21 2.22 3.32 2.87 9.6 12.8 12.1 10.1 10.4 99.4 30.33 10.71 3.26 — 137.5 14.83 — 0.1 3.2 4.6 4.0 0.04 0.97 1.42 1.23 0.06 0.68 1.50 1.15 0.02 0.21 0.46 0.35 8 51 81 87 1.8 6.2 5.7 4.6 0.74 1.33 1.86 1.32 11.9 3.66 3.39 1.04 — 18.3 5.25 — — 42.3 21.5 32.4 28.7 — STANDARD OF LIVING OF DETROIT EMPLOYEES 163 TABLE IV. AVERAGE QUANTITY AND COST OF SPECIFIED ARTICLES OF FOOD CONSUMED PER FAMILY AND PER EQUIVALENT ADULT MALE IN ONE YEAR IN 100 FAMILIES (cOTlt.) All families Average q u a n t i t y consume d per— Article Family Pounds Miscellaneous items : Coffee Coffee substitutes . . . . Equivalent adult male Families using articles Average cost per Family % u Equivalent adult male $ Average for these families Quantity Cost § o 0. S3 p. 8 PH $ Cents 3.0 14.8 5.1 32.7 0.4 Pounds 0.91 4.53 1.56 9.99 0.12 1.24 2.26 3.75 12.82 0.25 0.38 0.69 1.15 3.92 0.08 61 70 80 94 5 56.0 17.11 20.32 6.22 3.3 1.01 1.73 ~0.79 2.63 6.83 0.83 0.18 1.80 12.20 3.73 — ' 11.2 16.80 — 28.41 19.68 6.01 63 147.6 31.23 0.212 « 4.970.82 « 1,518.44 549.18 167.81 — «6,283.7 756.19 0.109 Pounds 4.9 21.2 6.4 34.8 8.0 2.03 3.23 4.69 13.64 4.94 — 75.3 28.53 0.53 64 5.2 0.80 2.09 0.25 0.06 100 100 43 7 41.5 15.3 73.5 39.2 61.8 — Chow-chow, pickles, olives, Baking powder, soda, yeast, Condiments and extracts . . Soft drinks, fruit juices, etc. (') C) 2.6 (') '5.9 Lunches and meals bought . T o t a l a l l food 3 93.0 ' 13.62 1,293.00 Grand total including Ice Average per d a y including ice —' 1 *4.16 395.01 — 1.50 6.94 0.46 2.12 556.12 169.93 1.52 0.47 86 — ( \o (') «17.2 1,503.5 — 2.70 52.3 2.63 6.83 1.94 32A. 2.70 2.07 8.07 764.26 2.09 0.005 — 1 Quantity not reported and not significant. "3 Not including items for which quantities are not reported and not significant. Estimated pounds based on 113.6 lunches and other meals per family. • Not including insignificant items for which quantities are not reported. An explanation of the first line of the table will make plain the reading of the remainder of the table. The 100 families as a whole consumed 38.3 pounds of fresh beefsteak in the year, which was equivalent to 11.71 pounds per adult male. This fresh beefsteak for the year cost $14.97, or $4.57 per adult male. Eight families did not buy fresh beefsteak. The 92 families that did buy this article consumed 41.7 pounds per family. The average cost for these families was $16.28 and the average cost per pound was 39.1 cents. These averages are all computed from the unpublished aggregates. Because of decimals dropped in the table a division of average cost by average quantity as printed may give an average price per unit slightly different from the price per pound as given in the table. For most of the food items purchased the quantities were reported on a pound basis. Where this was not the case (as, for example, with eggs, milk, and bananas), conversion to a pound basis has been made by the bureau, according to the conversion scale prepared by the Bureau of Home Economics of the United States Department of Agriculture. 164 ANNEX I Food Analysis The analysis of food values, as presented in table VI, is based on a table of equivalents, prepared by the Bureau of Home Economics of the Department of Agriculture, giving the number of calories and the amount of protein, calcium, phosphorus, and iron in each pound of each food item. Table V brings into comparison the average contents of the budgets of these families in calorie value and in the four elements specified, with the standards set up by scientific students of the subject (such as Sherman, Hawley, and Rose). TABLE V. —• A N A L Y S I S O F FOOD C O N T E N T P E R E Q U I V A L E N T A D U L T M A L E , P E R DAY Item Calories Protein (grams) Calcium (grams) Average of 100 Detroit families 3,236.5 3,000-3,500 96.9 70-101 0.957 0.70-1.02 Phosphorus (grams) Iron (grams) 1.58 0.016 1.32-2.75 0.015-0.023 It would appear from these comparisons that the food consumption of the Detroit families was, on the average, sufficient in quantity and well balanced as regards the important constituents of protein, calcium, phosphorus, and iron. Lunches purchased outside the home. —• Lunches bought away from home averaged, in cost, $19.68 per family. Entirely satisfactory data could not be obtained regarding the character of the food items entering into these lunches. It was necessary, therefore, for the bureau to make some more or less arbitrary assumptions as to the contents of such lunches in order to incorporate them into the food analysis study given in table VI. In doing this, two assumptions were made. In the first place, it was assumed that the lunches contained the same relative numbers of calories, and grams of protein, calcium, phosphorus, and iron as the food purchased at home. In the second place, it was assumed, as is known to be substantially true, that bought lunches, on the average, represented only about one-half the weight, per dollar of expenditure, as food bought for the home. On this latter assumption, the lunches purchased for $19.68 would represent93 pounds of food. Various estimates made of the weight and composition of lunches bought gives an average of about 630 calories per lunch. This method of handling the problem of lunches is recognised as being crude, but it was the only available method. STANDARD OF LIVING OF DETROIT EMPLOYEES 165 00 CO r-i m 00 "*# © OCOT-<Ï>IOO I>04iOOOO w SSSi§32SS§§§§S§SS§S§§S © oo O S, t. s u Co O a g 5 U TT Sc •M w ^ ? a o CO © OO r - C M 00 l > •<# 00 © i-« oo to co oo © m oo O i H O M O O O O O oooooqoqo ooooooooo ©00©dN!M©M00CMlN©TH©OîI>THTÎCD00Û0 M © i O t N CO CO 0 0 CO © t > CO I > 00 CO CO CO l > CD Oí IÍ5 © CO CO tf> © © ¿ © © © © © ó © Í>^©tOCOCD©(MXMC0Cq©C>lCÍ00C0©CN©'iH00 co^i>coio©cMTHc>ioico©©TH©inc^ , !i < iooïcOï> CïCOI>©rHCOC0»OCOCO©CMi-H>©C0l>00©rH00© Tr©©0©©0000©©©rHT-Cîr-l> M » 1 in©q©qqin©q©©qinoico- d i> in cô d UÌC005rHCiOCVlC v IrH(riCOOlOlftI>i-ll>-^C^(Nr-l"ir'ai © oo Tf* co co oo t-^© © « c i oo_in_rH_r^co_oo_c^©_© © CM m© ©"r^r-Tcí in'd'd't^'ci CO^TJ4 rHT^iiîCO | gginggg oooooo oooooo ^ ©©©00^ O O © © W M © o © © © © ©©©©*©© cOt^O^f-CM ©!>00©© Ift <Ä CO TH OÌ© ©•^©cjcqc^ ÔrÎHrîdo ©co©eoioco CO-^00©©© COCO©CNl>© minqr*;©© TH©rH©"©© ©I>©00inrH ©co©©cooo © TH © tO W ^ © © © © ' © © ©l>iO00NlÇ CÔiÔ0Ô©I>© 00 0 1 0 0 O N C M ©inq-^cod ©OÓO^COTÍ CDOCOCÏCO T H © © © © in © CM (M © ©TH©-H(MTH TJ* m t o © (N M c0©©-^-*'.c0©00iOT-ii> t^C0©-H©© 4 o* •d •s S mil : ;JJ• S i l " * ÍJ3 O , „o o o h h a o5«Soä AëSSftfti/S gfflfflM EUffl¡>ftftPH S S CS B B A '"•tí'0'O u iHHÌdo303i> tHOlCMCOOÏOîCOHinHOO in i > CM CM C ^ O Ì coBin co oo co OOrfoTH'cOOOCÌ CM CM •^ CM H 1 497.9 1 iHrHCOCMCMinTiiTH'dtHCM ÜÜ 1 31.7 •*pcotoi>r";©co-'c«qH-iH 1 0.4995 0.3250 0.1833 0.3760 H^CM-^OlcOOCOOt^CMin OjtHCD00CClí31T;C33tC0O(rM tH* CM OÍ CÔ r i CO* I > tH CM 0Ó COCO t j * H> CM I > CO t H rH CO CM CM CM CMiH 14.43 5.85 8.93 14.10 1 doddód©©©©© 1 3,407.7 2,099.5 1,640.3 9,757.2 OOHit^tHt-t^tHrHCOCO^H CMCOCMO^CDO'^CMCDCO O O O t H t H O C M O O O O 5.3278 ^Ht^OOtftHH/oO^COCM CMC3tHOOcOCOCOH>COC3CO CMTjlOOOqCMCMCOOÇCOr-; iriiHtHfi-ticMCMdddd tH 1 21.0 oocooot^coiH-^incïOsin 31.4258 ÓÓÓÓÓÓÓÓÓÓÓ 10.4060 0.11648 0.08600 0.00162 0.01024 0.0128 0.0086 0.0054 0.0064 1 O O O O O H T H O O O O 1 0.448 0.535 0.432 0.531 OOeOH^CMCSOCMCOCDOCD ^0303cototHoocootoai 2.0930 2.6700 0.0864 0.4784 COH>COH>CMOCMOOOOO cocoinco^co©cor>ooo intHcocDcMcocMOT-r^© qcMcocoqcoqcocMcocM oocMco"oi>côcModdt-! 33.0114 ©d 0.230 0.267 0.288 0.299 q q q q q q q q 1 ©q 4.0768 5.3500 0.1296 0.8496 1 CM CM oo r* c^ tH CM r* cnrn iHtHrHiHOtHCOO . O W O O O O O O O O O O 74.62 104.00 2.43 34.08 215.13 1 jH qq òo 167 10,565.1 14,070.0 276.9 2,016.0 26,928.0 O cjOrtoqooo óóóóóó^^ 0.56529 i>m tormoo CM CM CM t H I - CO CO O 1,143.62 0.09625 0.8547 3.1416 1 32.34 32.34 4.2 354,455.6 11,095.7 18,865.6 1,814 1,441 1,814 12.3 1.3 10.2 993.2 1 CM oo CM os co co CM m os o co tH CM co i n os co oo tH oo tH co m i n ©©©©odd© 195.4 7.7 10.4 213.5 19,569.3 2,090.4 10,893.6 1,319,409.8 1,591 1,608 1,068 1 1 384,416.9 0.09625 0.8547 0.0125 0.111 446.49 2.34 233.58 43,815.07 1 3.1416 120.0350 1 0.408 5.11629 519.1882 1 36.3 1.8 22.9 0.041 0.104 0.071 0.5043 0.1352 0.7242 0.435 0.408 0.259 5.3505 0.0041 0.5304 0.0073 2.6418 0.0040 0.05043 0.00949 0.04080 STANDARD OF LIVING OF DETROIT EMPLOYEES 168 ANNEX I C0CNCDt>mc0OO0000(MT)<00 „M m^oiT^cot-cooocooiineo •pM¿cd O B - H I D CirHTHCNc0ini>cDTi*inw^O f-01I>T-*T"<©COOincOCOeOO ciooòooooòoooo b* CO. 6D"" ça a) a rt oí co Min o iH I> Ol-H TH CO © ï> Ol Ol 011> iHCiClrHTr*inoOcOrHMT^rHCD .a a qoooo ooooo COdlOCDrH H^rt<01C0 ooooo ooooo ooooooooooooo ooooo ©incooiinoooo-^cocooco ~a' S ill o iHOOO^ i-tc0rHOrH0lT-t00C0cDC0Tt>tB OOOOO CO00OíI>ií5CO©00O1CO'^CitD OCOCOO© omTjiTpto 0 0 © OÎ0ÎC0 00l>©O3CO C3COOÏ001C50ÎTÎ CMTtHcOrHrH ©0©0101 CCOCO^iß ood woooo cooco o o o 00©I> îHCOrH m in oi co t> OiT^CC-HCO ooooo ooooo MOrH O O O Ó O OrHOrHCD Ol^CO^O! Th in t - i-i o i CDI-ITF (M COO © i n 01 rHinin 0000©©000©©©0 oococo©cn>coinT-cocooirHi>TH 00O© corico r-inco eomw ©inrHcoooicomoïr-ir-OTH i.1 (h r-0001COi-lc-.CO©TKcOC001rH TTr^tOrÎ^r-lOlT-lOlr-IOlOl O O O r H O O O O O O O O © O O O O O O O O O O O O O Tt O O Ó O O ©qoit-cq. ©t>côoioi tOr-i©COcO r-inr-crHoo CD CO i ß rH »H ooooo tool© Ï>C0C0 TptOOl COrhrf r H i n IHTÇCOOIOI CDT-ÎI-Î rirH &3 S uÜ 03 O 3 ©OlC0C0mT}T-(rHt0l>I> oeocooe^ ••tfi>i>©co©incor-icooo©© O^-OlTfTT OlrHlHOrH O©rHC0OT-'O-^©TH0Jr-iiH ooooooooooooo ooj>oiininooco»o©coco rP©©L0C0i»CNt-COWC0tD© •H s« j^CB C c ^ a>h HäS o Ò © i 4 © © COOl TPI> ©r-mmeo OJOrjOO ooôoo rft*TPcoin in^tjcocooJ rtrH©I>0ïCO01i-'CDr"©© CO TP i-lCO Ol TH ©01O0I© COCOO co-^in oicom SSS3S ÖS li! lit! •tí >» *lf !P¡i C0©I>C0C0 HTijoicoin 223223335*333 •*í CD 00* ï> l> co co co Ol in ^ in co co co oí © oi cocooioooi lri©rHin©O©c0ï>cÔï>THO 00rHOTp01©t>t-r-©rH01O l>cO©ï>rHinoCcOOJ©01cOCD ©in"l> THCÖI> CD r î o i l > intDOOrH COmOlCOrfl THUÎ cOin TH CO* corico ©T^b-i-tin TH in r i rj< CD t>coeo i>in\rtoîoî r « t > 0 CDOCO sgasssssgesss m in m T^©co©inTi;inTt;oiooo;t>co T* to oi CD i> rHrHlñtDTÍ©cOcÓ©COt>lríl> ©r-fCD O H > COrHi-lrHTt* Ci x í © iri Ol Ol IUI! •I i -í £ "d « i & e Hv5«dd O 0 0 Ol 99.4 ,1 O ©Tpi>L^cocôi>THTHoicocMin 83s c S"0 es v O Swoo « tu %m Mm » im SfmfcuHO •— Miscellaneous vegetable foods: Nuts Total 0.1 3.2 4.6 4.0 2,772 2,741 2,256 1,420 58.5 132.9 98.0 32.5 — 277.2 8,771.2 10,377.6 5,680.0 25,106,0 11.9 — 1,011.93 — 3.0 14.8 5.1 32.7 0.4 1,662 103 4,986.3 1,524.4 414.6 4.8 1,243.80 71.04 1.215 0.052 56.0 — 6,510.4 — 1,314.84 — 5.85 425.28 450.80 130.00 0.417 0.322 0.508 0.308 Miscellaneous i t e m s : Tea Coffee Total 3.3 281 2.6 345 (!) (') Baking powder, soda, yeast, etc 8 927.0 5.1 16.83 0.147 897.0 1.8 4.68 0.050 21.51 — (') (') C) Total 5.9 5 Average per equivalent a d u l t male per year Average per equivalent a d u l t male per d a y 1 2 93.0 4,970.82 13.52 . 1,518.44 4.16 — 777 1,824.3 72,261.0 3,862,893.9 10,583.3 1,181,313.1 3,236.5 No food value. Quantity not reported and not significant. — 23.3 2,166.90 116,019.20 317.86 35,479.88 96.93 3 4 0.230 2 1,14 34 Estimated pound Not including 1,2 170 ANNEX I CLOTHING The average outlay for clothing per year per family was $210.67, representing 12.2 per cent, of the total family expenditures. Clothing of Husband and Wife Table 7 enumerates all of the clothing purchased by the husband and by the wife, and in connection with each article it shows the average number of articles purchased for all families, the average expenditure per family, and the average expenditure per article. It also shows similar averages for the families which purchased each specified article. In the case of some items such as cleaning and pressing, shoe repairing, jewellery, ribbons, and other clothing, the number of articles is not reported. An explanation of the first item of table VII will help to make clear the method of presentation. Only 54 of the 100 husbands actually bought felt hats during the year. They bought 56 such hats, making an average in round figures of 1 hat per husband buying. The average expenditure per family was $3.82 and the average cost per hat was $3.68. However, the more common inquiry is, How many felt hats are consumed per man per year and what do felt hats cost per year ? The first two columns of the table show that the average man buys 0.56 felt hats per year and pays out an average of $2.06 per year for felt hats. The other items are analysed in like manner. The average expenditure for clothing for the 100 husbands, $63.59 for the year, absorbed 3.7 per cent, of all the family expenditures. Of the husbands' clothing expense, 43 per cent, was for outer garments, 25 per cent, for footwear, 7 per cent, for underwear, and 6 per cent, for headgear. On an average the husband appears to buy a felt hat once in about every 2 years, a wool suit every 21/2 years, an overcoat every 7 years, and a sweater or "lumberjack" every 3 years. Five shirts, 2 ties, 2 cotton union suits, 14 pairs of cotton socks and 1 pair of silk or rayon socks, 1 pair of garters, 2 pairs of shoes, 2 pairs of leather work gloves, and 9 pairs of cotton work gloves were purchased by each husband, on the average, during the year. The husband usually buys shirts with collars attached; the replacement on separate collars was only 1 every 2 1 /, years. The men's felt hats cost on an average. $3.68 each, the caps $1.41, the wool suits $27.43, overcoats $23.75, cotton shirts $1.14, cotton union suits $1.34, cotton socks 24 cents, and silk or rayon socks 54 cents a pair. High shoes averaged $4.23 and low shoes averaged $4.56 a pair, leather work gloves 39 cents, and cotton gloves 21 cents. The quantity and cost of other accessories and the upkeep and repair of clothing are shown in the table. The value of clothing for the 100 wives, $59.21 per year, absorbed 3.4 per cent, of all expenditures. For the wives, 44 per cent, of their clothing expenditures was for outer garments, 26 per cent, for footwear, 15 per cent, for underwear, and 6 per cent, for headgear. From the standpoint of replacement of the principal articles of clothing, the wife purchased, on an average, a wool coat every 2x/a years, 3 hats every 2 years, a pair of cotton gloves every 2 years, and a corset and bras- S T A N D A R D OF L I V I N G OF D E T R O I T 171 EMPLOYEES sière every 2 years. During the year she purchased 2 dresses, 4 pairs of cotton stockings, 4 pairs of silk or rayon stockings, 2 pairs of shoes, 3 house dresses, 2 petticoats or slips, 2 pairs of bloomers, a nightgown, and a pair of house slippers. The wife's wool coat averaged in cost $25.09, the hat $2.55, cotton gloves $0.89, corset $2.63, and brassière $0.53. The cotton dress had an average cost of $1.74 and the silk or rayon dress $7.51, the cotton stockings $0.35, and the silk or rayon stockings $1.01 a pair. The shoes averaged $4.27 for the low and $5.25 for the high shoes, the house dresses $1.04, the cotton petticoats or slips $0.76, and the rayon petticoats or slips $1.31. The cotton bloomers averaged $0.57 and the silk or rayon bloomers $0.85, the cotton nightgowns $0.87, and the house slippers $0.98. TABLE VII. AVERAGE QUANTITY OF AND EXPENDITURE FOR CLOTHING PURCHASED PER FAMILY IN ONE YEAR Clothing of 100 husbands Families purchasing All families Aver- Average Numage number expendber ol oí iam. iture articles per ilies per family ta roily Headgear : H a t s , felt H a t s , straw Caps Outer g a r m e n t s : Suits, wool Coats (separate) . . . . Trousers : Wool Cotton Overcoats Mackinaws Raincoats Sweaters a n d lumberjacks Overalls Jumpers Shirts (work or dress): Cotton Wool Underwear : Undershirts : Cotton Wool Drawers : Cotton Wool Union suits: Cotton Wool Pyjamas Nightshirts Footwear : Socks : Cotton Wool Rayon Shoes : High Low Shoe repairing Shoe shines House slippers . . . . Aver Average dumage AverI bf.r , o t number expend- age artjc.es iture cost per ol per article chased articles per family I family ! 0.56 0.18 0.86 Î2.06 0.44 1.22 54 17 62 56 18 86 1.04 1.06 1.39 $3.82 2.58 1.96 $3.68 2.44 1.41 0.41 0.02 11.25 0.14 40 2 41 2 1.03 1.00 28.12 6.75 27.43 6.75 0.73 1.39 0.14 0.03 0.02 0.32 0.35 0.08 2.10 2.82 3.33 0.37 0.15 0.97 0.60 0.11 73 139 14 3 2 32 35 8 1.83 2.24 1.00 1.00 1.00 1.07 1.94 1.60 5.25 4.55 23.75 12.17 7.38 3.24 3.34 2.16 2.88 2.03 23.75 12.17 7.38 3.04 1.72 1.35 4.50 0.12 5.14 0.31 40 62 14 3 2 30 18 5 98 450 12 4.59 1.50 5.25 3.84 1.14 2.56 0.45 0.02 0.40 0.03 17 2 45 2 2.65 1.00 2.35 1.50 0.89 1.50 0.45 0.01 0.37 002 16 1 45 1 2.81 1.00 2.34 1.50 0.83 1.50 2.28 0.15 0.18 0.08 3.05 0.35 0.25 0.09 81 7 11 4 228 15 18 8 2.81 2.14 1.64 2.00 3.77 5.04 2.30 2.31 1.34 2.35 1.41 1.16 14.09 0.57 0.98 3.41 0.36 0.53 99 21 30 1.409 57 98 14.23 2.71 3.27 3.44 1.69 1.77 0.24 0.62 0.54 0.87 1.44 3.68 6.57 2.88 0.02 0.52 51 84 92 4 36 87 144 1.71 1.71 4.23 4.56 19 36 4.75 1.00 7.21 7.82 3.13 0.48 145 0.19 0.36 0.10 1.45 172 ANNEX I TABLE V I I . •—• A V E R A G E Q U A N T I T Y O F A N D E X P E N D I T U R E F O R C L O T H I N G P U R C H A S E D P E R F A M I L Y IN O N E Y E A R (cont.) Clothing of 100 husbands—(cont.) Families purchasing All families Article F o o t w e a r : (coni.) Rubbers Arctics Gloves and m i t t e n s : Leather, dress Leather, work Cotton Wool Collars Ties Handkerchiefs Mufflers and scarfs Garters Belts Suspenders Umbrellas Pocketbooks Watches Other clothing Cleaning, pressing a n d repairing T o t a l , h u s b a n d s ' clothing Headgear: hats Outer g a r m e n t s : Waists a n d blouses: Cotton Silk or rayon Dresses : Cotton Wool Silk or r a y o n House dresses a n d bungalow aprons Aprons Coats : Cotton Wool Fur Raincoats Sweaters : Cotton Wool Furs Underwear : Petticoats a n d slips: Cotton Silk or r a y o n Corsets Brassières Chemises : Cotton Silk or r a y o n Union s u i t s : Cotton ,• • Wool Shirts and v e s t s : Cotton Silk or rayon AverAverAverAverage umage age age Num- N number expendber of number | expendber of articles oí of iture iture famarticles! per p u r - articles per ilies per chased per family family family family 0.54 0.06 0.12 2.06 9.34 0.04 0.39 1.89 5.73 0.21 1.18 0.48 0.19 0.02 0.09 Ï 0.78 0.22 0.21 0.81 1.97 0.04 0.10 1.52 0.60 0.33 0.33 0.37 0.11 0.05 0.06 0.88 0.23 1.46 63.59 48 6 54 6 1.13 1.00 1.63 3.67 11 12 60 4 12 84 70 19 71 44 15 2 9 7 12 52 12 •206 934 4 39 189 573 21 118 48 19 2 9 1.09 17.17 15.57 1.00 3.25 2.25 8.19 1.11 1.66 1.09 1.27 1.00 1.00 1.87 6.78 3.28 1.11 0.85 1.81 0.86 1.73 0.46 0.85 0.72 2.25 0.66 12.53 1.91 2.81 Clothing of 100 wives 1.49 $3.80 94 149 1.59 $4.04 0.02 0.01 0.03 0.02 1 1 2 1 2.00 1.00 3.00 2.25 1.02 0.05 1.03 1.77 0.48 7.73 3.33 0.21 102 5 103 320 63 2.04 1.00 1.36 3.20 0.63 50 5 76 94 25 3.55 9.59 10.18 3.55 0.85 0.01 0.42 0.01 0.04 0.02 0.09 0.01 0.12 10.54 1.00 0.27 0.04 0.30 0.30 1 40 1 4 2 9 1 1 42 1 4 2 9 1 1.56 0.42 0.51 0.51 1.19 0.55 1.34 0.27 67 27 46 23 156 42 51 51 2.33 1.56 1.11 2.22 1.77 2.04 2.92 1.17 0.05 0.17 0.04 0.21 2 5 17 2.50 1.89 1.75 2.38 0.70 0.02 0.68 0.06 70 2 2.33 1.00 2.25 2.79 1.65 0.37 0.65 0.28 165 37 3.44 2.06 1.36 1.53 9 30 2 48 18 3.40 2.52 1.00 12.00 1.05 26.35 1.00 100.00 1.00 6.63 1.99 1.00 1.00 3.32 1.00 29.75 STANDARD O P L I V I N G O F D E T R O I T E M P L O Y E E S TABLE VII. 173 A V E R A G E Q U A N T I T Y O F A N D E X P E N D I T U R E FOR C L O T H I N G P U R C H A S E D P E R FAMILY IN O N E Y E A R (cOilt.) Clothing of 100 wives—(cont.) Families purchasing All families Article U n d e r w e a r : (coni.) Bloomers, step-ins a n d drawers : Cotton Silk or rayon Night gowns, cotton . . . Pyjamas: Cotton Silk or rayon Kimonos a n d b a t h r o b e s : Cotton Wool Silk or rayon Footwear : Stockings : Cotton Wool Silk or rayon Shoes : High Low . . Shoe repairing House slippers Rubbers Arctics Gloves and m i t t e n s : Kid Cotton Wool Silk Collar a n d cuff sets . . . . Handkerchiefs Scarfs Garters Belts Hairpins, fancy combs, ornaments, nets, etc Sanitary supplies Umbrellas H a n d bags a n d purses . . . Watches a n d jewellery . . . Other clothing Cleaning, pressing, a n d repairing Total, wives' clothing . . Aver- Average age Numn u m - expend ber ber of iture of famarticles per ilies per family family i AverAverage Numage ber of n u m - expend' articles ber of iture pur- articles per chased per family family 1.40 1.28 1.31 0.80 1.08 1.14 48 49 62 140 128 131 2.92 2.61 2.11 1.66 2.21 1.84 0.01 0.01 0.01 0.03 1 1 1 1 1.00 1.00 0.80 2.95 0.07 0.02 0.01 0.16 0.10 0.03 7 2 1 7 2 1 1.00 1.00 1.00 2.27 5.00 2.95 3.74 0.06 4.01 1.30 0.06 4.03 68 4 93 5.50 1.50 4.31 1.91 1.38 4.33 0.02 1.87 2 100 73 55 8 34 1.00 1.87 0.82 0.08 0.34 0.10 7.99 1.15 0.80 0.08 0.76 374 6 401 2 187 82 8 34 1.49 1.00 1.00 5.25 7.99 1.58 1.46 1.01 2.23 0.12 0.52 0.02 0.02 0.02 4.49 0.14 0.80 0.04 0.30 0.46 0.02 0.02 0.01 0.50 0.23 0.15 0.01 12 46 2 2 2 60 14 49 2 1.00 1.13 1.00 1.00 1.00 7.48 1.00 1.63 2.00 2.49 1.00 0.98 0.88 0.60 0.83 1.64 0.30 0.28 0.20 0.71 0.18 0.93 0.13 0.01 0.52 63 41 8 46 10 2 24 12 52 2 2 2 449 14 80 4 8 48 1.00 1.04 0.31 0.72 1.22 2.03 2.32 1.74 2.17 — — 0.08 0.48 —. —. — — 59.21 Children's Clothing The average expenditure for clothing for children amounted to .87 per year for the 100 families and constituted 5.1 per cent, of all expenditures. This expenditure clothed an average of 2.45 children per family. In the detailed analysis of the cost of children's clothing the data have been divided according to age groups for each sex. These age groups, together with the number of children in each age group and the average age of these children, are given in table VIII: 174 ANNEX I TABLE VIII. DISTRIBUTION OF CHILDREN B Y AGE GROUP IN FAMILIES Boys Age group Girls Number oí families having Number of children Average 27 28 34 10 3 28 29 38 11 3 1.9 5.1 9.5 12.7 15.7 Under 4 years . . . . 4 a n d u n d e r 8 years . 8 a n d under 12 years . 12 a n d under 15 years 15 a n d 16 years . . . STUDIED, Num- Number of ber of famchililies dren having 23 40 35 12 8 25 48 40 14 9 Average age 1.9 5.4 9.4 13.2 15.6 These age groups are arbitrary, but represent the ages at which the demands for clothing tend to change most markedly. The kind of article, as well as the cost price, changes with the age. Boys were found in 76 families and girls in 83 families. Fifty-nine families had both boys and girls. In table IX, which shows in detail the clothing of the children in the families-canvassed, two sets of figures are given, the first set, as in table IV, spreads the quantity and expense over the entire 100 families, while the second set of figures applies only to the families who purchased the articles in question. TABLE I X . A V E R A G E Q U A N T I T Y O F AND E X P E N D I T U R E FOR CLOTHING FOR C H I L D R E N , B Y AGE GROUPS Boys (Age groups have been omitted in cases where no entries occurred) All families (100) Age group Article Headgear: H a t s , straw Under 4 years . . . 4 and under 8 years . Under 4 years . . . H a t s , other . . . . 4 a n d under 8 years. 8 and under 12 years 15 and 16 years . . Under 4 years . . . 4 and under 8 years. 8 a n d under 12 years. 12 a n d u n d e r l 5 y e a r s 15 a n d 16 years . . Outer g a r m e n t s : Suits, wool . . . . Under 4 years . . . 4 and under 8 years. 8 and under 12 years 12 a n d under 15years 15 and 16 years . . 1 . . . . Less t h a n 1 cent. Average number of articles per family Average expenditure per family 0.01 (') 0.01 C) 0.04 $0.03 0.06 0.05 0.02 0.02 0.02 0.07 0.26 0.18 0.36 0.30 0.59 0.56 0.17 0.19 0.01 0.02 0.07 0.16 0.21 0.07 0.04 0.14 0.76 2.07 0.90 0.61 Families purchasing Articles purchased Number of families 1 1 3 5 2 2 18 27 32 9 1 4 13 18 6 3 Average expenditure Number of chil- N u m - AverPer Per , arage dren ber per child ticle child 1 1 3 6 2 2 19 28 36 10 1 4 14 21 7 3 1 1 4 6 2 2 26 36 59 17 1 7 16 21 7 4 1.00 «0.92 $0.25 1.00 0.25 0.25 1.33 0.25 0.69 1.00 0.89 0.89 1.00 1.00 1.00 1.00 3.48 3.48 1.37 0.97 0.71 1.29 1.09 0.85 1.64 1.55 0.95 1.70 1.90 1.12 1.00 2.00 2.00 1.75 3.62 2.07 1.14 5.42 4.74 1.00 9.87 9.87 1.00 1.33 12.79 12.79 20.50 15.38 STANDARD O F LIVING O F DETROIT E M P L O Y E E S TABLE IX. 175 AVERAGE Q U A N T I T Y O F A N D E X P E N D I T U R E FOR C L O T H I N G FOR C H I L D R E N , B Y AGE GROUPS (COllL) Boys (cont.) All families (100) Article Age group Aver-1 Average num- 1 age ber of exarti- pendcles iture per per fam- family ily Outer garments (cont.) Suits, cotton . . Under 4 years . . . 4 and under 8 years . 8 a n d under 12 years 12 and under 15years] Under 4 years . . . Trousers, wool 4 and under 8 years . 8 a n d under 12 years. 12 a n d u n d e r l 5 y e a r s 15 and 16 years . . Under 4 years . . . Trousers, cotton . 4 a n d under 8 years . 8 a n d under 12 years, 12 and u n d e r l 5 y e a r s Under 4 years . . Overcoats . 4 a n d under 8 years 8 a n d under 12 years. 12 a n d under 15 years 15 a n d 16 years . 8 a n d under 12 years. Mackinaws 12 a n d u n d e r l 5 y e a r s 8 and under 12 years. Raincoats . 12 and under 15years U n d e r 4 years . . . Sweaters a n d lum- 4 and under 8 years . berjacks 8 a n d under 12 years. 12 a n d u n d e r l 5 y e a r s Under 4 years . . 4 and under 8 years . Overalls 8 and under 12 years 12 and under 15years Under 4 years . . 4 and under 8 years Shirts, cotton . . 8 and under 12 years 12 and u n d e r l 5 y e a r s 15 a n d 16 years . 4 and under 8 years 8 a n d under 12 years] Shirts, w o o l . . . 12 a n d u n d e r l 5 y e a r s Underwear : Undershirts, cotton Union suits, cotton Union suits, wool. Pyjamas . . . . Articles purchased Number of children 0.78 0.66 0.121 0.02 0.01 0.0811 0.34 0.05 0.04 0.031 0.23 0.81 0.24 0.13 0.17 0.11 0.051 0.021 0.04 0.02 0.03 0.01 0.12 0.25 0.35 0.08 0.25 0.37 0.23 0.06 0.23 0.73 1.9S 0.63 0.11 0.02 0.10 0.02 0.731 0.711 0.32 0.11 0.01 0.09 0.70| 0.11 0.161 0.01 0.191 0.93!1 0.47 0.49 1.01 0.701 0.42 0.31 0.21 0.13 0.07 0.06 0.18 0.39 0.83 0.26 0.17 0.29 0.22 0.06 0.08 0.39 1.30 0.51 0.13 0.02 0.15 0.02 0.25 0.08 0.02 0.15 0.06 0.021 0.54 1.01 1.141 0.35 0.05 0.02! 0.04 0.04 0.15 0.19! 0.19 0.06 0.01 0.07 0 03 0.01 0.10 0.02 0.01 0.32 0.70 1.01 0.35 0.06 0.04 0.06 0.05 0.10 0.15 0.14 0.05 0.01 Average expenditure -- Num ber of | AverfamPer ilies Num- age Per artiber p e r child cle child 18 18 6 2 1 4 14' 3 2 1 10 23 8 13 17 11 5! 2 4 2| 2] 1 11 20 22 8 10 12 9 4 5| 18 32 107 32 16 4| 1 1 15 27 33 10 2 1 2 2 9 9 8 4 1 T-l Undershirts, wool Drawers, cotton . Linder 4 years . , 4 and under 8 years . 15 a n d 16 years Under 4 years . 4 and under 8 years . 15 and 16 years Under 4 years . 4 a n d under 8 years . 8 a n d under 12 years 12 and u n d e r l 5 y e a r s 15 and 16 years 4 a n d under 8 years . 8 and under 12 years 12 and under 15years Under 4 years . . 4 a n d under 8 years 8 and under 12 years 12 and under 15 years 15 and 16 years. Families purchasing 191 78 4.111 $ 3.821 [0.93! 18 66 3.671 3.941 1.081 2.00 5.33 2.67 121 6! 2 1.00 5.48 5.48 2 1 1.00 1.00 1.00 1 S 1.60 1.87 1.17 5 4.64 2.05 341 2.27 3.62 2.17 15 1.67 5 2.00 7.90 3.95i 3| 4 3.OO1 1.50 0.50' 2 1 3 2.301 1.941 0.85! 3.45 io! 10| 23 3.00 5.25! L 1.97 i 27 2.67 81 3.75 3.75! 9 1.00 24| 0.94! 5.6OI 5.92 13 18 13 0.92! 5.83 6.36 12 17 1.00] 8.381 8.38 5 11 1.00 15.501 15.50! 2 5 1.00 5.23 5.23; 4.28 6.43 4 2 0.67 2.33 2.33 3 4 1.00I 6.00 6.00Í 3 2 1.00; 1.461 1.46 1 3 1.00I 1.86 1.56'; 12 2.38 1 1.19 3.20 21 2.88 3.24! 12 1 1.351 1.73| 0.69! 26 0.89 9 25 0.80Ì 1 2.47 10 35 2.50 2.231 0.971 12 3.08 1.20 1.00 8 10 1.361 0.35 25 2.30 2.03 0.53 5 37 1.20 3.60i 0.65] 6 19 23 3.83! 4.65|1 0.81 36 6| 3.84| 4.33 1.18! 11 1.78 23 1 5.50 2.94 0.891 I.47I 3 73 5.73 2.00 1.00! 1 198| 3.6' 5 63 2.00 0 95 0.27; 1 11 2.00 1.30 0.33 7 2 2.00 3.57 1.00 0.50; 2 101 4.00 1 6 7 0.67! 1 2.IOI 2 ! 2.001 1.00 0.35; 6' 2.50! 1.97 0.50 25 1 6.00! 2.52! 0.58; 8 2.00 1 2 3.38| 2.73 0.701 161 15 3.61 3.21 0.89 ' 28 1 6i 3.08 2.771 1 . 0 1 1 2| 3.18 3.96 l . l l ! 37 54 2.50 3.10 1.98! 11 2.62 I.55! 101 1 2 114 2.00 1.061 1.311 2.00 1.521 0.64 1 35 2.00 5 1.67 1.41 0.80 2 2 1.90! 1 2 2 0.74 2 4 1.90] 1.001 0.81 9 l.OOJ 4 1.50 101 15 1.00 10 19 4 19¡ 6| 1 1 I i 176 ANNEX I TABLE I X . — A V E R A G E Q U A N T I T Y O F A N D E X P E N D I T U R E F O R C L O T H I N G FOR C H I L D R E N , B Y AGE GROUPS (COTlt.) Boys (cont.) All families (100) Age group Article Underwear : (cont.) Nightshirts . . . Footwear : Socks, cotton . . Socks, wool Socks, silk or rayon Shoes, high . . . Shoes, low . . . Shoe repairing . . R u b b e r boots . . House slippers . Rubbers Arctics Gloves a n d mittens, leather, dress. Gloves a n d cotton. mittens, Gloves a n d wool. mittens, 1 Less t h a n 1 cent. Under 4 years . . . 4 a n d under 8 years . 8 a n d under 12 years Under 4 years . . . 4 and under 8 y e a r s . 8 and under 12 years 12 a n d under 15 years 15 a n d 16 years . . U n d e r 4 years . . . 4 a n d under 8 years. 8 a n d under 12 years 12 a n d u n d e r l 5 y e a r s 15 and 16 years . Under 4 years . . 4 and under 8 years 8 and under 12 years 12 a n d under 15 years Under 4 years . . . 4 a n d under 8 years. 8 a n d under 12 years 12 and under 15 years 15 a n d 10 years . . Under 4 years . . . 4 a n d under 8 y e a r s . 8 and under 12 years 12 a n d under 15 years 15 and 16 years Under 4 years . 8 and under 12 years Under 4 years . . 4 a n d under 8 years 8 and under 12 years 12 and under 15years 15 a n d 16 years . 4 and under 8 years 8 and under 12 years 12 and uriderlö years 15 and 16 years . Under 4 years . . 4 a n d under 8 years 8 and under 12 years •Under 4 years . . 4 a n d under 8 years 8 and under 12 years 12 and u n d e r l 5 y e a r s 15 a n d 16 years . . Under 4 years . . . 4 and under 8 years. 8 a n d under 12 years 12 a n d u n d e r l 5 y e a r s 15 a n d 16 years . . Under 4 years . . . 4 a n d under 8 years. 8 and under 12 years 12 a n d u n d e r l 5 years Average number of articles per family Average expenditure per family Families purchasing Articles purchased Number of families Number of Per chil- Num- AverP e r artiage dren ber per child cle child 0.21 $0.09 0.03 0.01 0.04 0.03 2.02 3.35 4.44 1.91 0.18 0,12 0.03 0.08 0.05 0.09 0.45 0.78 1.32 0.56 0.05 0.05 0.02 0.05 0.04 0.03 0.40 0.54 1.05 0.28 0.26 0.44 0.59 0.18 0.08 0.68 1.19 2.45 0.63 0.43 0.97 1.51 0.62 0.31 0.03 0.19 0.58 0.28 0.06 0.03 0.05 0.01 0.06 0.07 0.02 0.01 0.07 0.29 0.12 0.02 0.05 0.25 0.03 0.01 0.05 0.12 0.05 0.02 0.02 0.09 0.15 0 01 0.01 0.02 0.02 0.07 0.08 0.02 0.01 0.08 0.27 0.10 0.02 0.03 0.13 0.01 0.01 0.06 0.13 0.05 0.01 0.06 0.29 0.39 0.03 0.01 0.10 0.07 0.04 0.04 (' 0.06 0.04 0.02 0.03 21 3 4 23 28 34 10 3 4 1 4 2 21 23 32 10 16 25 31 8 3 4 14 25 10 3 1 2 2 7 6 2 1 8 22 8 2 3 13 1 1 6 11 4 1 5 17 22 3 1 7 5 2 4 Average expenditure 24 29 38 11 3 4 1 4 3 3 22 24 36 11 17 26 34 9 3 4 15 28 11 3 1 2 2 7 7 2 1 9 24 9 2 3 14 1 1 6 13 5 1 5 18 25 3 1 7 5 2 5 3.00 $1.27 «0.42 1.50 0.60 0.40 2.00 1.39 0.70 202 335 444 191 18 12 3 8 5 9 40 54 105 28 26 44 59 18 8 8.42 11.55 11.68 17.36 6.00 3.00 3.00 2.00 1.67 3.00 1.82 2.25 2.92 2.80 1.53 1.69 1.74 2.00 2.67 1 2 2 7 8 2 1 8 27 10 2 3 13 1 1 6 13 5 1 6 29 39 3 1 10 7 4 4 1.00 1.00 1.00 1.00 1.14 1.00 1.00 0.89 1.13 1.11 1.00 1.00 0.93 1.00 1.00 1.00 1.00 1.00 1.00 1.20 1.61 1.56 1.00 1.00 1.25 1.40 2.00 0.80 1.87 2.69 3.48 5.07 1.53 1.38 2.25 1.21 1.17 1.13 0.22 0.23 0.30 0.29 0.26 0.46 0.75 0.60 0.70 0.38 3.09 4.97 6.80 6.29 2.54 3.72 4.45 6.93 10.33 0.69 1.27 2.09 2.54 2.02 3.00 2.49 0.55 0.80 0.95 1.18 1.45 0.76 1.19 1.39 1.13 1.58 1.79 2.95 0.75 0.77 0.91 1.09 2.25 0.39 0.49 0.60 0.38 0.20 0.73 0.75 1.23 0.52 1.70 2.21 2.33 2.25 1.66 2.20 2.57 3.46 3.88 3.00 2.49 0.55 0.80 0.83 1.18 1.45 0.85 1.06 1.25 1.13 1.58 1.93 2.95 0.75 0.77 0.91 1.09 2.25 0.33 0.30 0.39 0.38 0.20 0.58 0.54 0.61 0.65 STANDARD OF LIVING OF DETROIT EMPLOYEES TABLE IX. 177 AVERAGE Q U A N T I T Y O F AND E X P E N D I T U R E F O R CLOTHING FOR C H I L D R E N , B Y AGE GROUPS (cOIit.) Boys (cont.) All families (100) Article Ties Handkerchiefs . Mufflers a n d scarfs . Belts . . . . Suspenders . Pocketbooks Watches a n d jewellery Cleaning, pressing, and repairing. Infants' wear (not specified above): Dresses Rompers Underwaists. . . . Petticoats Other infants' w e a r . Other clothing . . . . Total, boys' clothing Average number oí articles per family Average expenditure per family 4 and under 8 y e a r s . 8 and under 12 years 12 a n d under 15 years 15 and 16 years . Under 4 years . . . 4 and under 8 y e a r s . 8 and under 12 years 12 a n d u n d e r l 5 y e a r s 15 and 16 years . . 4 a n d under 8 y e a r s . 8 and under 12 years 12 a n d under 15 years 15 a n d 16 years . . Under 4 years . . . 4 and 8 years . . . 8 a n d under 12 years 12 a n d u n d e r l 5 y e a r s 15 and 16 years . 8 and under 12 years 12 a n d under 15 years 15 a n d 16 years . . 4 and under 8 y e a r s . 8 and under 12 years Under 4 years . . 8 and under 12 years 12 a n d u n d e r l 5 y e a r s 8 a n d under 12 years 12 and u n d e r l 5 y e a r s 8 a n d under 12 years 15 and 16 years . 0.23 0.64 0.22 0.08 0.18 0.91 1.79 0.61 0.14 0.01 0.03 0.02 0.01 0.32 0.56 0.61 0.23 0.03 0.21 0.07 0.02 0.02 0.06 0.01 0.01 0.01 0.05 0.20 0.09 0.03 0.01 0.05 0.12 0.05 0.01 0.01 0.02 0.02 0.01 0.05 0.07 0.07 0.02 0.01 0.06 0.04 0.01 0.01 0.03 Under 4 years . . U n d e r 4 years . . Under 4 years . . 4 and under 8 years Under 4 years . . Under 4 years . . Under 4 years . . 4 a n d under 8 years 8 a n d under 12 years. 15 a n d 16 years . 0.19 0.26 0.07 0.02 0.16 0.17 0.16 0.02 0.01 0.06 0.29 0.01 0.05 0.02 0.02 Age group Under 4 years . . 4 and under 8 years 8 a n d under 12 years 12 and n n d e r l 5 y e a r s 15 a n d 16 years « C) 0.01 0) 0.08 0.03 0.10 0.07 Families purchasing Articles purchased Number of families Average expenditure Number of chil- Num- Average dren ber per child 10 27 7 2 3 14 24 7 2 1 3 2 1 15 24 24 9 2 15 5 2 2 4 1 1 1 3 1 5 2 10 31 8 2 3 15 26 8 2 1 3 2 1 16 25 27 10 2 17 6 2 2 5 1 1 1 3 1 6 2 23 64 22 8 18 91 179 61 14 1 3 2 1 32 56 61 23 3 21 7 2 2 6 1 1 1 2.30 2.06 2.75 4.00 6.00 6.07 6.88 7.63 7.00 1.00 1.00 1.00 1.00 2.00 2.24 2.26 2.30 1.33 1.24 1.17 1.00 1.00 1.20 1.00 1.00 1.00 19 26 7 2 16 4.75 4.33 2.33 2.00 3.20 5 20 27 10 7 7 36 32 12 8 6 31 49 17 15 0.86 1.19 1.53 1.42 1.88 5.29 9.11 16.67 6.30 2.05 Girls Headgear : Hats . . 1 Under 4 years . . . 4 a n d under 8 years , 8 a n d under 12 years 12 a n d u n d e r l 5 y e a r s 15 and 16 years 0.06 0.31 0.49 0.17 0.15 ? 0.06 0.45 0.76 0.31 0.30 $ $ 0.89 1.04 1.73 1.45 2.37 1.55 2.60 1.83 3.79 2.02 Less t h a n 1 c e n t . 12 178 ANNEX I TABLE IX. — AVERAGE QUANTITY OF AND E X P E N D I T U R E FOR CLOTHING FOR C H I L D R E N , B Y AGE GROUPS (COTlt.) Girls (cont.) All families (100) Article H e a d g e a r : (cont.) Caps . . Outer garments : Ensembles, cotton Less t h a n 1 cent. Articles purchased Average number oí articles per family Average expenditure per family Number of families Under 4 years . . . 4 a n d under 8 years. 8 a n d under 12 years 12 and u n d e r l ö y e a r s 15 and 16 years . 0.24 0.43 0.27 0.08 0.01 S 0.20 0.31 0.22 0.06 0.01 19 27 20 6 1 20 31 22 8 1 4 and under 8 years. 8 and under 12 years 12 a n d u n d e r l ö y e a r s 0.02 0.04 0.01 0.03 0.08 0.01 1 4 1 2 4 1 1.00 1.00 1.00 0.01 0.02 0.01 0.0Ö 0.12 0.05 0.03 0.05 0.03 0.02 0.06 0.22 0.13 0.07 1 2 1 5 11 4 3 1 2 1 6 12 5 3 1.00 1.00 1.00 0.83 1.00 1.00 1.00 0.01 0.01 0.01 0.02 0.01 0.01 0.01 0.02 1 1 1 1 1 1 1 1 1.00 1.00 1.00 2.00 0.01 0.01 1 1 0.01 1.19 2.53 1.72 0.47 0.21 0.04 0.17 0.17 0.02 0.02 0.041 0.09 0.22 0.10 0.16 0.03 0.03 0.03 0.02 0.02 0.01 0.08 0.02 0 07 0.03 0.11 0.25 0.19 0.06 0.07 0.03 0.69 2.01 1.83 0.53 0.29 0.07 0.34 0.50 0.05 0.08 0.06 029 0.77 0.Ö5 0.80 0.01 0.02 0.02 0.02 0.01 1 23 40 34 11 7 4 10 11 2 2 2 9 14 7 8 1 1 1 1 2 1 2 2 6 0) a 11 18 15 5 6 1 25 48 39 13 8 4 14 13 2 3 3 10 IS 8 9 1 1 1 1 2 1 2 3 9 3 13 22 19 6 7 Age group Ensembles, silk or rayon . . . . 12 a n d u n d e r l ö y e a r s Skirts, cotton . . 8 and under 12 years 15 and 16 years . Skirts, w o o l . . . . 4 and under 8 years. 8 and under 12 years 12 and u n d e r l ö y e a r s 15 a n d 16 years . Waists a n d blouses cotton. 4 and under 8 years. 8 and under 12 years 12 and u n d e r l ö y e a r s 15 and 1(5 years . Waists and blouses, 12 and u n d e r l ö y e a r s wool Waists a n d blouses, 8 a n d under 12 years silk or r a y o n . . . Under 4 years . . Dresses, cotton . . 4 a n d under 8 years 8 a n d under 12 years 12 and u n d e r l ö y e a r s 15 a n d 16 years . Under 4 years . . Dresses, wool 4 and under 8 years 8 and under 12 years 12 and u n d e r l ö y e a r s 15 and 16 years . . 4 years . . . Dresses, silk or rayon 4Under and under 8 years. 8 a n d under 12 years 12 and u n d e r l ö y e a r s 15 and 16 years . . Under 4 years . . . House dresses a n d 4 and under 8 years. bungalow aprons 8 and under 12 years 15 and 16 years . 8 and under 12 years Aprons 12 and u n d e r l ö y e a r s 15 a n d 16 years . . Under 4 years . . . Coats, cotton . . 4 a n d under 8 y e a r s . 8 a n d under 12 years Under 4 years . . . Coats, wool . . . 4 a n d under 8 years. 8 a n d under 12 years 12 and u n d e r l ö y e a r s l ö and 16 years . . 1 Families purchasing 0.0Ö 0.07 0.32 0.18 0.Ö3 1.55 1.58 0.75 1.03 Average expenditure Number of chil- Num- Average dren per ber child 24 43 27 1.20 1.39 1.23 1.00 1.00 1.00 1 119 253 172 47 21 4 17 17 2 2 4 9 22 10 16 3 3 3 2 2 1 8 2 7 3 11 20 19 6 7 1.00 4.76 Ö.27 4.41 3.62 2.63 1.00 1.21 1.31 1.00 0.67 1.33 0.90 1.22 1.25 1.78 3.00 3.00 3.00 2.00 1.00 1.00 4.00 0.67 0.78 1.00 0.85 1.14 1.00 1.00 1.00 3.00 2.77 4.19 4.71 4.07 3.58 1.81 2.41 3.85 2.49 2.63 1.83 2.89 4.27 6.91 8.85 1.20 1.80 2.00 2.00 0.38 0.39 2.25 2.33 3.55 6.00 4.07 7.02 8.34 12.49 14.711 re vi <~í ftw CD - »çj fï »i. VI &.» s g 1! en •« M g g 2. •"¡S " c a: • i œ s R- CO^(H *-GI H W M H * H UitO » » B » ' » » P i s 3 30. » 3 C» » 3 3 o B B P.P-C6 » S B ¡ ¡ s a P.&2 P.O. 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A v " 3 2 " » r o £B-" Sro HMCOSP MpSi-ioo3»Lii-iooa» "< ? •<<<< 3 • ro » . mrop . ti a esea* «i • • <» » • • •<< • • « o> • " 3 S " « . . 3S"<<, 3 ft as as n> fD S CO Í B ÎO . ¡¡¡SB" • • * • • HI: O O O r - A O O O O O O O O O O O O O O O O W ^ M O O O O O O O O O O O O O O O O O O O O O O O O O O O O O H M W M O O O O M O O O O O O O O O O O H M O O O O O O O O O O O O O O O O O O oooooooo, i SggSB^BgSS^coS^ggies COlOMMM10tOi-iMÏO.)f*.) Peaches 23. B a n a n a s 24. Oranges 25. Sugar 26. P o t a t o e s , Irish 27. Vegetables, canned . . . . (a) Beans, baked . . . . . (¡>) Peas (c) C o r n 1 (d) Tomatoes (c) Other . . . . . . 38.3 49.6 43.0 16.4 66.5 54.4 30.4 22.6 1.4 26.8 24.2 2.6 18.7 16.7 21.3 17.4 3.9 1,117.8 68.9 66.1 16.0 11.0 5.0 25.5 51.9 48.8 3.1 121.3 191.7 520.5 112.2 32.6 210.0 186.6 23.4 67.4 101.8 195.4 591.4 99.4 29.5 20.1 12.3 23.4 14.1 5.1 32.7 1,293.0 93.0 a 28. Tea 29. Coffee 30. Ice 3 1 . Luncheons and meals bought . Total I I . Other foodstuffs: 1. Beef, salt, corned 2. ,, ,, dried 3 . M u t t o n chops 4. „ roast 5. ,, stew 6. Liver 7. Soup bones 8. Other m e a t n o t canned . . . 9. Cooked m e a t , h a m 10. Canned a n d p o t t e d m e a t s . . 1 1 . Fish canned, salmon 12. „ „ other . . . . . 1 note 1 on next page. 13. See Oysters * E s t i m a t e d weight of 113.6 luncheons 14. Other sea food 15. B u t t e r m i l k 16. Cream 17. Ice cream 18. Vegetable cooking a n d t a b l e oils 19. Flour other t h a n wheaten . . • 20. Corn m e a l 1 Price per l b . cents 39.1 33.2 22.9 33.6 26.9 30.0 33.7 25.4 19.0 37.9 38.0 36.2 28.2 31.4 28.5 28.7 27.8 6.3 10.2 50.3 33.9 36.4 28.7 22.7 16.7 16.4 20.9 30.1 4.8 8.2 9.1 21.0 5.4 5.4 5.3 7.8 9.4 6.5 2.5 10.8 9.6 12.8 12.1 10.1 10.4 73.3 39.2 0.5 21.2 — 2.4 0.4 0.2 3.8 3.5 8.3 12.0 17.8 4.1 0.5 10.5 1.2 0.3 0.02 25.5 4.4 7.8 4.4 7.0 8.1 Average expenditure per family $ 14.97 16.47 9.83 5.49 17.85 16.26 10.25 5.74 0.27 10.16 9.22 0.94 5.26 5.24 6.07 4.98 1.09 69.90 7.05 33.24 5.43 4.00 1.43 5.79 8.62 7.98 0.64 36.57 9.25 42.44 10.18 6.84 11.34 10.10 1.24 5.24 9.56 12.67 14.94 10.71 2.83 2.57 1=49 2.36 1.46 3.75 12.82 6.94 19.68 450.56 23.8 60.0 34.5 35.0 25.0 23.0 12.5 21.7 61.2 31.8 28.0 28.1 43.7 80.6 4.7 30.2 34.9 23.8 9.1 6.1 0.57 0.25 0.07 1.34 0.87 1.91 1.50 3.86 2.48 0.15 2.94 0.35 0.13 0.01 1.18 1.31 2.72 1.11 0.64 0.49 a n d other meals per family. MEMORANDUM ON THE DETROIT BUDGET ENQUIRY Average quantities consumed per family lbs. I I . Other foodstuffs cents. Average expenditure per family Calories per l b . S (cont.): 2 3 . Breakfast foods: (b) Oats (c) Corn1 (d) Other 24. Bread other t h a n of wheat or 27. Macaroni, spaghetti and noodles 31. Molasses, syrup a n d h o n e y . . 44. Canned a n d preserved peaches 45. ,, ,, „ pineapples 46. Other fruits, canned a n d p r e 47. Jellies, preserves, marmalade 48. Potatoes, sweet a n d y a m s . . . 49. Cabbage 53. Tomatoes 55. Corn 1 60 Turnips 67. Other dried vegetables. . . . 68. Chocolate 71. Nuts 72. Gelatin 75. 76. 77. 78. 79. Price per lb. 203 Chow-chow, pickles, olives etc. . Baking powder, soda, veast e t c . Condiments a n d extracts . . . Soft drinks, fruit juices etc. . . Other food 0.3 2.7 7.2 10.1 0.02 0.27 1,608 1,632 14.0 21.3 10.9 07 17.5 9.1 19 4 49.8 2.46 1.95 2.11 0.35 1,545 1,803 1,696 1,657 1.8 11.7 19.1 14.8 12.3 1.3 10.2 7.7 10.4 10.7 33.3 11.1 8.5 36.3 6.3 12.5 9.1 10.0 0.3 1.6 11.1 6.5 9.0 12.2 16.7 14.7 10.2 22.0 14.2 10.5 26.3 12.7 4.2 11.3 7.2 2.0 8.6 6.9 15.7 11.6 21.3 21.9 16.9 18.4 0.16 1.42 3.18 2.18 1.26 0.29 1.44 0.80 2.74 1.36 1.39 1.26 0.61 0.73 0.54 0.86 1.43 1.16 0.07 0.35 1.88 1.21 1,115 1,174 1,875 1,624 1,591 1,608 1,068 1,441 1,814 120 270 240 60 65 130 215 1,161 1,407 923 1,260 307 323 4.7 19.1 0.90 349 9.4 11.9 65.3 6.9 4.5 20.4 76.5 3.4 39.2 13.8 17.9 15.7 47.8 9.4 4.6 0.2 5.6 2.7 12.6 44.2 6.7 0.1 3.2 4.6 4.0 3.0 14.8 0.4 3.3 s 25.7 5.0 4.1 10.1 11.7 9.4 4.1 19.2 4.2 23.7 9.5 3.6 3.8 3.5 5.9 27.6 9.7 5.9 10.9 3.9 11.5 42.3 21.5 32.4 28.7 41.5 15.3 61.8 52.3 1,038 447 121 108 251 176 103 199 178 72 68 167 159 124 121 101 118 156 1,564 597 1,586 2,772 2,741 2,256 1,420 1,662 103 — 281 2.6 32.1 2.41 0.59 2.65 0.69 0.53 1.92 3.10 0.65 1.64 3.27 1.70 0.56 1.82 0.33 0.27 0.05 0.55 1.34 1.38 1.74 0.77 0.06 0.68 1.50 1.15 1.24 2.26 0.25 1.73 2.63 6.83 0.83 0.18 105.56 — 2 1 — — Total : — — 345 556.12 1 It should perhaps be noted that in the American usage the expression "corn " corresponds to the English term "maize", the American "candy " to the English "sweets " , and "navy beans " to the English "butter beans " . 1 Quantity not reported and not significant. 204 ANNEX II B. — HOUSING Dwellings rented the^ccupLt * » * * * Number of families 32 68 100 Average number of rooms ' per family 4.8 4.6 4.6 Average number of persons per family . . . . 4.4 4.5 4.5 Average number of rooms equipped for heating 3.4 3.5 3.5 Bathrooms 20 52 72 Inside water-closets 26 60 86 Inside running water — — 97 Running hot water •— — 65 Average yearly rent ' for dwellings of 4.6 rooms $375.31 $391.47 $388.81 1 Living-rooms, bedrooms, kitchens are counted as rooms, while bathrooms, pantries attics, and cellars are not. 2 For houses owned by the occupant, the rental value was estimated as given here. The average housing payments for the 32 families purchasing their home amounted to $512.10, of which sum $136.79 have been treated as savings. Rents in Detroit include taxes, insurance and rates. The dwellings of the 100 families studied show a strong tendency toward a certain "modal " type which might be described as follows: The family occupies a separate house or a whole floor in a twofamily house"(61 cases). The house has 4 or 5 rooms (78 cases), inside toilet, running water inside, kitchen sink, and sewer connection. All rooms have outside exposure, and there are no dark rooms. The house has one or more rooms per person (77 cases). The usual arrangement of a house with 4 or 5 rooms for 4 or 5 persons (parents and 2 or 3 children) consists of 2 or 3 bedrooms, a living room, or a living-dining room, and a kitchen or a kitchen-dining room. Half of the rooms may be heated.. The heating system consists most frequently of individual stoves; central heating was frequent but not typical (44 cases). The house is usually rented. C. — FUEL AND LIGHT Average consumption per family Price Average expenditure per family $ 8.59 34.98 10.41 4.83 22.69 20.43 2.90 1.61 103.20 4.7 22.15 S Anthracite coal 1 (tons) 0.576 14.81 Bituminous coal ' (tons) 4.131 8.47 Coke* (tons) 1.305 7.94 Wood 3 (tons) 0.4 — Gas * (1000 eft.) 28.6 0.79 s Electricity (kwh.) 407.6 0.05 Kerosene « (Imperial gallons) 13.1 0.02 Matches and candles —• •— Total Average number of rooms per family Average annual cost for heat and light per room 1 Only 18 families used anthracite coal. s Eighty-one families used bituminous coal, and 29 families used coke. Both fuels were 3 obtained from the Ford Motor Co. at less than market prices in most cases. The quantity of wood had to be estimated, since wood was used chiefly as kindling wood. It also was in most cases supplied by the Ford Motor Co. at less than market prices. Thirty-three families used wood for heating, and 2 used coal and wood for cooking. * Used by 88 families. 5 Used by 100 families. Only one family used electricity for cooking. Bulbs are replaced free by the electric light company. * Nine families used only kerosene for cooking. D. — CLOTHING The figures as to expenditure on clothing by the 100 Detroit families (see table VII of Annex I) are extremely detailed. It is proposed, therefore, to limit the European comparisons to the prin- M E M O R A N D U M ON T H E D E T R O I T B U D G E T E N Q U I R Y 205 cipal articles of clothing, as was done in the case of food. It is found that a short list of about 10 of the principal articles of clothing for each group (husbands', wives', and children's) is sufficient to give a representative sample. The following tables are therefore confined to the important items, and cover in the case of husbands and wives about 70 per cent, of the total expenditure. 1. Husbands and wives. Table I shows the average number of articles purchased per year, the average expenditure per family, and the average price per article, for each of the articles selected. Prices are required for each of these articles. 2. Children. In the case of children, it has been decided to select the age-group in which the greatest number of children was found, viz. the age-group 8-12. Table 11 gives the average expenditure, the average price per article and the average number of articles purchased per year. I. — Clothing for Husbands and Wives I. Principal articles (a) Husbands' clothing : 1. F e l t b a t s 2. Caps 3. Woollen suits 4. Overcoats 5. Cotton trousers 6. Cotton shirts 7. Union suits, cotton 8. Cotton socks 9. Boots a n d shoes 10. Cotton gloves 1 1 . Ties 12. Belts 13. Overalls Number ol articles per family (6) Wives' clothing: 1. H a t s 2. Dresses, silk or rayon 3. Dresses, cotton 4. House dresses a n d bungalow a p r o n s . . 5. Woollen coats 6. Petticoats and slips, cotton . . . . 7. Bloomers, step-ins and drawers, silk or rayon 8. Shirts a n d vests, cotton 9. Stockings, silk or rayon 10. Shoes 11. Gloves, cotton Total for articles included (husbands and wives) II. Minor articles excluded1 Total husband's and wive's expenditure 1 For details, see Annex I, table V I I . 0.56 0.S6 0.41 0.14 1.39 4.50 2.28 14.09 2.31 9.34 1.89 0.48 0.35 1.49 1.03 1.02 3.20 0.42 1.56 1.28 1.65 4.01 1.87 0.52 Average expenditure Average price per family per article in dollars in dollars 2.06 3.68 1.22 1.41 11.25 27.43 3.33 23.75 2.82 2.03 5.14 1.14 3.05 1.34 3.41 0.24 10.25 4.44 1.97 0.21 1.52 0.81 0.37 0.78 0.60 1.72 $46.99 = 73.9 per cent. of total h u s b a n d s ' expenditure. 3.80 7.73 1.77 3.33 10.54 1.19 2.55 7.51 1.74 1.04 25.09 0.76 1.08 0.85 0.65 0.40 4.03 1.01 7.99 4.27 0.46 0.89 $42.57 = 71.9 per cent. of total wives* expenditure. $89.56 = 72.9 per cent. of total h u s b a n d s ' and wives' expenditure. $ 3 3 . 2 4 = 27.1 per cent. of total h u s b a n d s ' and wives' expenditure. $ 1 2 2 . 8 0 = 100.Opercent. All of the "principal articles " are contained in the sample collection with the exception of felt hats. Item No. (a) 9 is a combination of two articles "high shoes " and "low shoes ". 206 A N N E X 11 II. — Children's Clothing (age groups 8-12) (1) I. Principal articles (a) B o p s : 1 Caps 2 . Woollen suits 3 . Cotton trousers 4. Overcoats 5. Sweaters or lumberjacks 6. Cotton shirts 7. Union suits, cotton 8. Cotton socks 9. Boots (6) Girls: 1. H a t s 2. Cotton dresses 3 . Silk or rayon dresses 4. Woollen coats 5. Sweaters a n d lumberjacks 6. Petticoats and slips, cotton 7. Union suits, cotton 8. Bloomers, drawers, cotton 9. Cotton stockings 10. Shoes 11. Minor articles excluded Total for all children's clothing Number of articles per child ' (2) 1.55 0.55 2.13 0.29 0.92 5.21 3.00 11.68 2.76 1.23 4.30 0.55 0.48 0.50 2.20 1.65 4.63 9.00 2.38 Average expenditure Average price per child per article in dollars in dollars (3) (4) 1.48 5.45 2.45 1.84 2.19 3.39 2.67 3.51 6.44 0.95 9.87 1.15 6.36 2.38 0.65 0.89 0.30 2.33 Î29.42 1.90 4.60 1.92 3.96 1.00 1.10 1.65 1.67 2.79 7.10 1.55 1.07 3.49 8.34 2.00 0.50 1.00 0.36 0.31 2.99 $27.69 $57.11 = 65.0 per cent of t o t a l expenditure. 35.0 per cent $30.76 = of total expenditure. $87.87 = 100.0 per cent 1 Column N o . 2 shows t h e number of articles purchased per boy (or girl) aged 8-12. The figures in Annex I, table I X , give t h e n u m b e r of articles purchased per 100 families (irrespective of whether they had children of t h e age-group considered) a n d t h e n u m b e r of articles purchased "per family purchasing " . The figure for e.g. boys' caps is arrived a t b y dividing t h e n u m b e r of caps purchased by t h e n u m b e r of boys aged 8 t o 12, i.e. 59/38 or 1.55, and t h e expenditure for caps is correspondingly adjusted. With the exception of No. 7 (girls), which is similar to No. 7 of the boys' list, all the articles enumerated under I and II are contained in the sample collection. E. —• OTHER ITEMS OF EXPENDITURE The original tables referring to miscellaneous expenditure are extremely detailed. For this reason, a short list has been drawn up of those articles for which prices may be ascertained most easily. The average expenditure for these selected items amounts to $223.62 or 48.5 per cent, of the total for all the residual items ($461.03). The following table gives a description of the articles and of the information required, the average number of articles, the average yearly expenditure per family, and the average price paid in Detroit per article during 1929. The articles excluded consist to a large extent of "optional " expenses which vary considerably and depend on local habits, customs and conventions, and personal tastes. It is proposed to allow for this group of expenses by giving to the worker in each of the towns considered the same margin of income for these optional items as is available to the Detroit worker. OTHER Average n u m b e r of articles per family (2) Description of article purchased in Detroit (1) 1. 2. 3. 4. 5. Blankets Sheets Pillow-cases Cotton towels Cotton a n d linen tablecloth 6. Table oilcloth 7. Lite insurance 3.08 1.21 0.36 0.27 0.4 1.3 $2076.0 1.54 0.52 486.5 rides • — • 0.08 9V2 visits to doctor 6 "house calls ' " 10 visits t o the dentist ' 2.00 3.00 1.00 104 bars of l !a u n d r y soap ' other soap soap powder ' — 1 1 . Barber expenses . 12 hair cuts (men) ' 12 „ „ (child) ' 12 shaves ' . . . . 0.50 0.25 0.25 12. Moving pictures 33 tickets 0.168 13. Newspapers . . . 235 daily papers 50 Sunday papers . . . . 100 packets of 20" cigarettes 42 packets of 2 1 ounces 0.03 0.10 0.14 0.12 17 men's shirts * 15. L a u n d r y work sent o u t . 9 sheets' 82 internal letters . . . . 16. Postage 34 calls from public stations 17. Telephone I. E x p e n d i t u r e for included i t e m s . I I . R e m a i n i n g expenditure . . . . Total 0.20 0.09 0.02 0.05 48.5 51.5 100.0 10. Soap 14. Tobacco 1 Average cost par article in dollars (4) 0.6 2.1 2.6 4.7 8. Daily t r a n s p o r t 9. Medical expenses - . . . . Estimated quantities, * Quantities n o t given. Observat (5) Samples lor Nos cluded in t h e s tion of clothing is a combination of t h e origina ANNEX I l i How Ford's Lowest-paid Workers Live 1 By J. W. NIXON, Chief of the Statistical Section, International Labour Office . . . . Thanks to the collaboration of the Twentieth Century Fund, t h e Ford Company at Detroit, and the United States Bureau of Labour Statistics, an enquiry into the standard of living of the Detroit employee was conducted on the spot by agents of the Bureau, who by house-to-house visitation obtained an account of the income and expenditure of 100 families 2. In view of the purposes of the investigation, it was thought desirable to limit it as far as possible to homogeneous families who were, in fact, living entirely or almost entirely on the Ford minimum wage. A "natural family " of man, wife, and two or three children under sixteen was therefore selected, in which the husband was the sole breadwinner. This excluded single men in lodgings; married couples without children ; married couples with children over sixteen contributing to the family income; families with lodgers or relatives; etc. The husband also must have been in the employ of the company for the. whole of the year 1929. This does not mean that the husband earned on every possible day of the year (260 days); absences due to sickness, accident, annual vacations, general holidays, family circumstances, and temporary unemployment account for a loss of time. The average number of days worked, in the families studied, however, was 250 per annum. The whole purpose of the study was thus to determine how a certain defined type of family lived during the year 1929 on about $35 a week. The general results of the enquiry may be summarized in table I. TABLE I Dollars Average earnings of husband . . . Average earnings from other sources 1,694 63 17 24 Total average income Average expenditure per family . . Average deficit, for all families . . Average daily earnings 1,711 87 1,719 83 7 96 6 78 1 Reprinted with permission of the editor and the author from The Social Service Review, Vol. V, No. 1, March 1931. 2 The detailed results of this enquiry will be found in the Monthly Labour Review, June 1930, published by the U.S. Bureau of Labour Statistics, Washington, D.C., and in Annex I of this Report. HOW FORD'S L0WEST-PAI1, WORKERS LIVE 209 It should be emphasized at the outset that these figures do not relate to a representative family but to a specially selected family of four to five persons as described above. The figures are not representative of workers' families in Detroit, still less of the families of workers employed by the Ford Motor Company, for they cover only families of which the head received the lowest wage scale in 1929. The average annual earnings of Ford employees must, of course, be higher than the foregoing figure 1. It is not possible, therefore, to base any conclusions as to the "American standard of living" on the results of this enquiry, though other interesting conclusions can be drawn from it, and some comparisons with other enquiries of a somewhat similar nature. DISTRIBUTION OF EXPENDITURE The distribution of the average yearly expenditure is shown in table II, together with the percentage spent on different groups: TABLE II Amount I. Food II. Clothing IV. Fuel and light V. Other expenses . . . . . . . . Per cent. 556.12 210.67 388.81 103.20 461.03 32.3 12.2 22.6 6.0 26.9 $1,719.83 100.0 In other words, the four chief groups (food, clothing, housing, fuel and light) accounted for 73.1 per cent, of the total expenditure, and all other items 26.9 per cent. The proportion spent on food is fairly low and indicates a relatively high standard of living. It is well known that as income increases, the proportion spent on food decreases, and the percentage shown above is lower than that of any recent family budget studies. A somewhat similar enquiry was made in Detroit by the U.S. Bureau of Labour Statistics in the years 1918-1919. On this occasion the enquiry comprised families of one child or more, and not families with two or three children under sixteen as in the present case; families in which only 75 per cent, of the income came from the head of the family were also admitted. The results were given for families with different classes of income; for the present purpose families with a total income between $1,500 and $1,800 are selected (108 in number, 1 In December 1929 the Ford Motor Company announced that 24,320 of their employees were affected by the decision to increase the minimum wage to $7.00 a day. All other workers amounting to 113,643 received an increase of 40 cents a day; of these 27,410 were increased to $7.20, 33,396 to $7.60, 22,971 to $8.00, 12,327 to $8.40, and 17,539 to between $8.40 and $10.00. 14 210 ANNEX III and containing on an average 4.8 persons). The families compared in the two cases are not therefore strictly comparable. The figures are given in table III, to which are added the results of the German family budget inquiry of 1927-28, the only recent European inquiry. The highest group of families, average income R.M. 5,027, is taken for comparison. It will be seen that the lowest expenditure on food and the highest sum available for miscellaneous expenditure is found in the Detroit families of 1929. If, as is now generally accepted by social investigators, the proportionate expenditure on food gives a rough indication of the standard of living, the Detroit families have a higher standard than the German worker. TABLE III. PERCENTAGE EXPENDITURE ON DIFFERENT GROUPS Detroit investigation Item 1929 Clothing Rent Furniture and furnishings . Total Average size of family . . 32.3 12.2 22.6 6.0 5.1 21.8 1918-19 35.2 15.8 18.3 6.5 6.2 1 17.9 / 100 4.5 100 4.8 $1,712 $1,637 German enquiry 1927-28 41.5 14.6 14.1 2.8 23.1 100 4.9 RM. 5,027 It would be of great interest to trace in detail the changes in the standard of living in Detroit during the last ten years, as shown by these two budget enquiries, especially as the general level of the cost of living was approximately the same at the two dates. Unfortunately, the results of the earlier investigation were not published in sufficient detail to enable satisfactory comparisons to be made. Some general deductions, however, can be drawn. It will be seen that expenditure on food and clothing has decreased, while that on rent has increased. In respect of food, detailed information for each item was only published in 1918-1919 for the U.S.A. as a whole and for certain areas (e.g., the north central states). Taking the figures for the north central states for comparison, the most striking fact is the great decrease in the consumption of beef from 201 pounds in 1918-1919 per family per year to 134 pounds in 1929; of potatoes from 819 pounds to 590 pounds and of flour from 300 pounds to 198. On the other hand, the consumption of fresh milk has increased from 718 pints to 1,118 pints, of butter from 51 pounds to 66 pounds, of eggs from 77 to 121, of wheaten bread from 392 pounds to 520 pounds. There has also been a large increase in the consumption of fresh fruit and of canned vegetables. In respect of housing, the standard of accommodation seems to have slightly risen, the average number of rooms per family inDetroit was 5.4 in 1918-1919, and 4.6 in 1929. On the other hand, the average price per room paid by the Detroit families of incomes between 211 HOW FOBD'S LOWEST-PAID WORKERS LIVE $1,500-1,800 was only $268 in 1918-1919, compared with $389 in 1929, and the proportion of the income spent on rent correspondingly increased from 18.3 per cent, to 22.6 per cent. Fuel and light show little change, except that bituminous coal has to a considerable extent replaced anthracite, and the consumption of electricity has increased from 165 kilowatts to 408. The most difficult group to compare is that of clothing. The number of articles for which comparisons can be made is very limited, and information (as in the case of food) is not available in 1918-1919 for Detroit. On the whole, the number of articles bought shows a decline both for husbands, wives, and children, in the ten years, with the exception of silk and rayon goods, which show a fourfold increase in the case of women's stockings and a fivefold increase in the case of their silk dresses. The general conclusion, based on somewhat slender evidence, seems to be that Detroit families are spending slightly less on food, a substantial decline in the consumption of fresh meat and potatoes being largely balanced by increased consumption of milk and butter, fresh fruit, and canned vegetables; that the standard of housing accommodation (including fuel and lighting) has changed little, though rents have risen; that there has been a considerable change in the kinds of clothing worn, and a decrease in the quantities of articles purchased. The increased diversity of tastes and the broadening of the basis of expenditure is evident from the increased amount (small though definite) in miscellaneous expenditures. GENERAL CHARACTERISTICS OF FAMILY EXPENDITURE OF DETROIT FAMILIES IN 1929 The different groups of expenditure in 1929 are analysed in further detail below. 1. Food. — This constitutes, as in all family budget studies, the most important single item of expenditure. About one-third of the weekly income goes in food, although as indicated above this proportion is considerably smaller than is usually found in working-class families. The distribution of expenditure over the principal items is shown in table IV. TABLE IV. AVERAGE EXPENDITURE PER FAMILY ON FOOD Percentage of total Item Amount Dairy products (milk, cheese, eggs, etc.) . . 157.40 124.03 64.57 69.49 21.58 19.68 99.37 28.3 22.3 11.7 12.5 3.9 3.5 17.8 $556.12 100.0 Bread, flour, and meal . Vegetables and fruits (dried and canned) . Factory lunches and meals bought outside Total Dairy products absorbed 28 per cent, of the weekly food bill, followed by meat, fish, and poultry (22 per cent.). These two groups alone account for one-half of the food expenditure. 212 ANNEX III The food value of the Ford workers' budget has been evaluated by the Bureau of Home Economics of the U.S. Department of Agriculture, which analysed the "food content " of each article of food according to a table of equivalents prepared by the food experts of this Bureau. The results compared with the "standard " adopted by this Bureau are given in table V. T A B L E V. A N A L Y S I S O F FOOD C O N T E N T P E R E Q U I V A L E N T A D U L T , MALE Calories Protein (grammes) . Phosphorus (grammes) Calcium (grammes) . Detroit families Standard family 3,236.5 96.9 1.58 0.987 0.016 3,000-3,500 70-101 1.38-2.75 70-1.02 0.015-0.023 The food budget thus appears to be sufficient in quantity and well balanced as between the different constituents. 2. Clothing. — The average outlay for clothing was $210.67, or 12.2 per cent, of the total expenditure. This expenditure was distributed as follows: Husbands' clothing Wives' clothing Children's clothing $ 63.59 59.21 87.87 Total $210.67 On an average the husbands buy a felt hat about once in two years, a wool suit every two and one-half years, an overcoat every seven years, and a sweater every three years. Each year the average husband purchases 5 shirts, 2 ties, 2 union suits (cotton), 14 pairs socks (cotton), 1 pair socks (silk or rayon), 2 pairs of shoes, 2 pairs work gloves (leather), and 9 pairs (cotton). Wives on the other hand buy on the average a wool coat every two and one-half years, 3 hats every two years, 1 pair of cotton gloves every two years and a corset and brassière every two years. Each year the average wife purchases 2 dresses, 4 pairs stockings (cotton), 4 pairs stockings (silk or rayon) 2 pairs shoes, 3 house dresses, 2 petticoats or slips, 2 pairs of bloomers, 1 nightgown, and 1 pair of slippers. For children, owing to the fact that the distribution by sex and age differed for each family, it is of no interest to give the average expenditure per 100 families. Table VI, however, shows, for those families having boys and girls within the age-groups given, the average expenditure on clothing per child. HOW FORD'S LOWEST-PAID W - : K E R S LIVE TABLE VI. 213 AVERAGE EXPENDITURE ON CLOTHING PER YEAR Age group 4-8 8-12 12-15 15-16 Boys Girls $18.92 31.43 43.91 57.32 68.55 $19.71 29.86 40.00 45.37 75.70 Under four years of age there is little difference between boys' and girls' expenditure; from four to fifteen, boys seem to require more expenditure than girls; while over fifteen, girls cost more than boys. The average expenditure per child rises continuously with age. It is interesting to notice that in these 100 families it costs more to clothe a boy of fifteen than a father, and much more to clothe a girl of fifteen than a mother (though not necessarily his or her father and mother). 3. Housing. — This item forms nearly a quarter of the total expenditure. Out of the 100 families, 68 occupied a rented dwelling, and 32 were purchasing their homes. The principal characteristics of these dwellings are shown in table VII. TABLE VII x Renting dwellings Number of families Number of persons per family Number of rooms per family Number of families occupying three rooms or less Number of families occupying four rooms and over Number of dwellings containing bathrooms Number of dwellings containing inside w. c.'s Number of rooms equipped for heating . Average rent per year 68 4.5 4.6 Purchasing dwellings 32 4.4 4.8 3 63 52 60 3.5 $391.47 29 20 26 3.4 $375.31 1 The average rent of home-owning families is based on the statements furnished by the occupiers ; the actual payments were on the average higher, amounting to $512.10; the difference was treated as savings. It will be seen that the housing standard is a fairly high one. A "typical " or model home might be described as follows: The family rents a separate house or whole floor, containing four or five plastered rooms and bathroom, inside toilet, running water. All rooms have outside windows. The house has at least one room per person and consists generally of two or three bedrooms, a living-room, and a kitchen. It has individual stoves with half of the rooms fitted for heating. The yearly rent is about $85 per room. 214 ANNEX III 4. Fuel and Light. — The average cost of heating and lighting was $103.20 per year, or a little over $22 per room. The average spread over the whole 100 families was distributed as in table VIII. TABLE VIII Anthracite coal (tons) 0.6 Bituminous coal (tons) 4.1 Coke (tons) 1.3 Gas (1.000 cubic feet) 28.6 Electricity (kw.) 407.6 Kerosene, matches, candles, Totaland wood . . . $ 8.59 34.98 10.41 22.69 20.43 6.10 ' $103.20 5. Other items of expenditure. — This group consists of all the remaining expenditure varying from necessaries, such as daily transport, to "optional " expenses, such as radios. It amounted on the average to $461 a year, or nearly 27 per cent, of the total expenditure, distributed as in table IX. T A B L E I X . •— D I S T R I B U T I O N OF M I S C E L L A N E O U S E X P E N D I T U R E Furniture and house furnishings $ 88.55 Life insurance 59.16 Sickness expenses 64.73 Street car and bus fares 37.40 Cleaning supplies and hairdressing 29.01 Education 6.41 Music lessons 2.61 Gifts outside family 5.66 Automobile, cost 40.11 Automobile upkeep and garage rent . . . . 38.45 Church, religious organizations, clubs, etc. . 10.67 Motion pictures 5.55 Newspapers and magazines 13.52 Tobacco 19.68 Laundry sent out 4.23 Total $461.03 Toilet articles and preparations 13.68 Vacation andfact travel In view of the that this group is the one in which 5.91 individual needs and also of the Othertastes itemshave their greatest range, and in view15.70 small number of families on which the averages are based, it is not possible to draw any very definite conclusions from these figures. As the families were established famihes, the expenditure on furniture and furnishing was fairly small, about 5 per cent, of the income. Daily transport to and from work was incurred by nearly all families. Owing to the large area of the city, large distances had to be covered in many cases, 37 workers living more than 10 miles from the factory. The average distance was 8.2 miles. Five families possessed a telephone, and forty-seven owned automobiles, but only eight used them regularly to go to and from their work. Five families only reported expenditure for domestic service. Thirteen families owned pianos and forty-five phonographs and thirty- HOW FORD'S LOWEST-PAID WORKERS LIVE 215 six radio sets. Every family except two possessed an electric iron, and half the families (49) an electric washing machine; twenty-one possessed vacuum cleaners. The number of modern conveniences is comparatively large considering the wage-class to which these workers belonged, but this is perhaps partly due to the fact that in every case the wife stayed at home and did the housework. CONCLUSIONS The new study of the standard of living of a small selected group of Ford's workers' families must not be taken as representative of the American standard of living. The group is a small homogeneous one fulfilling certain preliminary conditions. It shows, however, a reasonable standard of comfort, and their budgets appear adequate for health and efficiency. The problem now before the International Labour Office is to translate this budget into European prices, having regard to differences in climate and habits of living. This raises a number of interesting problems that cannot be treated here but will be fully dealt with when the final report of the International Labour Office is available. A N N E X IV Further Observations on the Methods and the Validity of the Results of the Present Enquiry 1 by H. STAEHLE (Research Division, International Labour Office) together with a " Note on t h e relation between the index-numbers of the cost of housing and the cost of food in t h e different cities " by R. GUYE (Research Division, International Labour Office) INTRODUCTION The enquiry conducted by the International Labour Office which is the subject of the present article might be described briefly as an attempt to answer the question: How much would be spent in January 1931 by workers in certain European cities in order that they might have a standard of living approximately equivalent to that of a Detroit worker whose expenditure in 1929 was about 1,720 dollars ? The answer to this question thus involved the determination of the various incomes which would be equivalent, in the different European towns, to an American income of specified amount. Given this first result, it was only necessary to calculate the ratios of these sums in order to obtain cost-of-living index numbers, for comparisons in space and for the standard of living in question. In fact, an index number (whether intended for comparisons in time or in space) is precisely the ratio of the equivalent money incomes. Nearly every country publishes at regular intervals what is known as a cost-of-living index number, which shows the movement from time to time in the general level of prices for the items on which a worker spends his income. The accuracy and reliability of these index numbers is sometimes contested. It is pointed out that they omit certain items which ought to be included or include certain items which need not be included; that the budgets by which the prices are weighted are not usually representative of actual expenditure, and so on. Nevertheless, these figures have come to be accepted as indicating in a general way the changes in the cost from time to time of maintaining unchanged a certain standard of living. The question of definite changes in the standard of consumption over a period of years is usually not taken into account. In practice a certain standard, frequently a "pre-war standard ", is taken as the basis and an estimate is made of what it would cost, in view of the change in prices between 1 Reprint of an article published in the International Labour Review, Vol. XXVI, No. 3, September 1932, under the title of "An International Enquiry into Living Costs ". Certain passages summarising the methods (which are given in detail in Chapter II of the present report) have not been repeated here. FURTHER OBSERVATIONS 217 that basic date and the present time, for a worker to maintain the same standard as he had in that original period. The enquiry which the Office was asked to undertake was thus to some extent similar to these cost-of-living enquiries undertaken in various countries, but it also had certain fundamental differences due to the fact that it was a place comparison and not a time comparison. Whereas in time comparisons changes in the standards of consumption are slow and can be ignored over short periods, in place comparisons this is not the case and it is necessary to consider not only such natural factors as climate, but also national habits, traditions, and customs. In the case of this enquiry the standard of living taken as a base was that obtained by a small sample of workers' families fulfilling certain conditions in the city of Detroit during the year 1929. Further details as to this standard of living are given later on. It should be emphasised at the outset that the enquiry was thus a limited one and related solely to the hypothetical worker referred to above, and that the problem was to take the standard of consumption of this worker and to compute the cost of an equivalent standard in certain European towns. x The figures obtained as a result of the enquiry cannot necessarily be applied to other categories of workpeople and to workpeople of other income levels. T H E NOTION OF "STANDARD OF L I V I N G " The first thing, therefore, to make clear is the interpretation of the term "standard of living ". For the purpose of the enquiry this was defined as the sum of the economic satisfactions derived from the total consumption of goods and services. What characterises the standard of living of an individual or family is not the fact that the individual or family consumes certain quantities of certain foodstuffs, fuels, articles of clothing, etc., but the total satisfaction derived from this consumption. This definition leads to two results: in the first place, since the degree of satisfaction (or to use the economist's terms, the total utility) cannot be measured directly, in the same way, for instance, as bread is measured in pounds, but can at the most be deduced for a particular person at a given moment from the choices he makes with regard to his needs and their satisfaction, any attempt to compare the satisfactions of different individuals must be indirect and remain an approximation. All that can be hoped of an enquiry of the present kind is therefore in any case only a more or less satisfactory approximation. As no method is capable of giving a rigorous solution, it is obvious that the choice of method must be an arbitrary one. The Office has made its choice; it is perfectly aware that its choice is perhaps open to strictures. But as the Office was under the necessity of providing a solution to the problem set it, the methods it has chosen cannot be rejected without showing that some other method of approximation would be better suited to the matter in hand. In the second place, it clearly follows from the above definition that different individuals or families, especially if they live under entirely different conditions in different countries and under different 1 The towns were: Berlin, Frankfort, Copenhagen, Stockholm, Helsinki (Helsingfors), Paris, Marseilles, Antwerp, Rotterdam, Manchester, Cork, Warsaw, Barcelona, Istanbul. 218 ANNEX IV «limâtes with highly varying physical conditions and traditions, may arrive at the same standard of living or the same total satisfaction by the consumption of quite different kinds and quantities of commodities and services. It would therefore have been of little value to calculate only how much the goods and services consumed by the American worker would cost in Germany, Poland, or Spain, for the German, Polish, or Spanish worker who had the income so calculated would have made an entirely different use of it. In other words, as far as possible the differences in national customs, consumption habits and price systems had to be taken into account. This last point conceals certain reserves, however, which might have been fatal to a correct solution. For whatever data are selected to represent the customs or the standard of consumption in a given country, they must always reflect the level of the standard of living. Wherever enquiries into family budgets have been used to determine the average family consumption for different incomes, this consumption is found to vary in composition with the income. When it is found, for instance, that in 1927-1928 a German worker (with an annual expenditure of 1,156.60 marks per adult) consumed nearly twice as much margarine as butter, while a German official (with an annual expenditure of 1,917.93 marks per adult) consumed nearly twice as much butter as margarine, this difference is clearly to be ascribed primarily to the difference in income. But when it becomes a question of comparing these German customs as to consumption with those of the Detroit worker, which is to be taken as representative of the German customs, the consumption of the German worker or of the official ? And is it at all possible to distinguish between the effect of custom and that of the existing standard of living ? This necessity, on the one hand to take into account differences in habits in the different countries, and on the other to prevent the actual standard of living from affecting the result, was one of the most difficult problems of the enquiry, because it could arise not only, as explained, when selecting the data on consumption, but also and less evidently for the price data. The prices indicated for a given town might give expression to the standard of living of the inhabitants in so far as they referred to goods of better or worse quality; and then again, it was not clear how far the preference given to a " w o r s e " quality merely gave expression to a general custom. T H E BASIC INFORMATION It follows from the preceding considerations that the basic information necessary for an enquiry of this nature must be of two kinds : (1) the quantities of articles and services of all kinds normally consumed and the price paid for each of these articles and services by the Detroit worker; (2) the same information for each of the European towns. The first kind of information was supplied by the United States Bureau of Labour Statistics, which conducted a very detailed enquiry into family budgets of Detroit workers for the year 1929.1 The enquiry covered 100 families and was restricted to those which met the following requirements : the family must have had no material income other than the earnings of the husband; the husband must have earned 1 For a critical analysis of the results of this enquiry, cf. an article by the present writer in Schmollers Jahrbuch, Vol. 54, II, 1930, pp. 1107-1134: "Die Lebenshaltung mindestbezahlter Arbeiter der Fordwerke in Detroit." FURTHER OBSERVATIONS 219 approximately 7 dollars a day (that is, 35 dollars for a five-day week) ; he must have worked at least 225 days (45 weeks); the family must consist of husband, wife, and not less than two or more than three children under 16; it must have no boarders, lodgers, or relatives living in the family; and the family must have occupied a separate dwelling during the whole year. The results of this enquiry are given in great detail in a report which is reproduced above as Annex I. In this will be found full information on the quantities of articles and services and the prices paid by these families during 1929. It was not found practicable to adhere absolutely to a 7-dollar daily rate, as it was not till December 1929 that the 7-dollar minimum was established. The average daily earnings throughout the year averaged 6.78 dollars and the average number of days worked was 250. The annual average expenditure of the 100 families was 1,720 dollars for a family of 4y 2 persons (or 3.27 man-units). This figure therefore served as basis for comparison with the European towns. 1 The information of the second kind, concerning consumption habits in the European towns, especially as regards food and lighting and heating, was taken as far as possible from the official publications of the different countries in agreement with the national statistical authorities. In spite of the resolution adopted by the International Conference of Labour Statisticians in 1925 recommending countries to hold post-war family budget enquiries about the year 1928, such enquiries only exist for three out of the countries covered by the present enquiry, namely, Germany (1927-1928), Poland (1927), and Belgium (1928-1929).2 For France, Spain, and Turkey there appears to be no official information on this question. For France, however, certain statistics based on the Paris octroi statistics give the average consumption per head in 1928-1929; for Barcelona there also exist some statistics on per capita consumption, and for Turkey the estimated food budget computed by the Istanbul Chamber of Commerce for its cost-of-living index number was adopted. For Great Britain, where the last budget enquiry dates from 1904, it has been possible to compile, by the aid of certain unofficial investigations based on official statistics, a food budget sufficiently representative of the post-war period. For the other countries sufficiently recent family budgets exist, namely, Denmark (1922), Sweden (1923), Finland (1920-1921), the Irish Free State (1921), and the Netherlands (1923-1924). The statistical authorities of the countries covered expressed their agreement with the use of these figures for the purpose of comparing the cost of foodstuffs, etc., in their town with Detroit. The question how far the fact that these budget enquiries were conducted several years ago may have influenced the results of the comparison is dealt with in a later section of this article. Particulars of the prices and articles and services utilised have been furnished in all cases by official collaborators (in the majority 1 I t might be pointed o u t here t h a t according t o the statistics ot t h e National Industrial Conference Board the average weekly earnings (or 1929 of American workers in the industries considered were 33.96 dollars for skilled and semi-skilled workers and 28.73 for unskilled. This sample of 100 workers is therefore not unrepresentative of American earnings in general during this period. s The results for Belgium have n o t yet been published, but the statistical authorities of this country furnished preliminary information on food budgets of certain families in Antwerp and on t h e a m o u n t s of gas, coal, etc., consumed for lighting a n d heating b y a certain n u m b e r of workers' families in Eeckeren. 220 ANNEX IV of cases the official central statistical office) by means of special enquiries held in each town. The same authority has also furnished all the other necessary data, such as information concerning taxation, social insurance, etc. The Office carefully examined all these data, compared them with other known sources of information, suggested modifications where necessary, and reached the conclusion that the resulting information could be used with confidence. CRITICAL ANALYSIS OF THE RESULTS OF THE ENQUIRY In the following paragraphs an attempt is made to compare certain results obtained in the enquiry both between the different towns and also with other information in so far as it exists. Comparisons are first made separately for certain groups of expenditure, and secondly for the whole expenditure from the point of view of its distribution among the different groups. It should be emphasised that the results published are subject to a large number of reservations which are fully set out in the study, and which are again enumerated at the end of this article. It is necessary to insist especially on the fact that comparisons between one European town and another are not strictly justifiable 1 . The results obtained for each European town are independent of each other. In each case a comparison was made between the European town and Detroit. Moreover, the original comparisons did not always cover the same period. While the information received for Detroit concerned the average for the year 1929, the European data covered various periods between July 1930 and April 1931. In a period of rapid and irregular price changes these different dates would naturally give non-comparable results, but the Office attempted to eliminate this element of non-comparability as far as possible by bringing all results up to one particular date, namely, January 1931, by the application of national cost-of-living index numbers. But this method affects the accuracy of the figures, partly because the index numbers available relate in some cases to the whole country and not to the particular town covered, and partly because they are based on prices of certain articles and services, sometimes rather different from those used for the purpose of the comparison between the European town and Detroit. Food Justification of the Formula Adopted For all the calculations to the food group, the formula recommended by Prof. Irving Fisher and other economists has been used. 2 The reasons why this method seemed particularly suitable deserve further 1 To make such comparisons is analogous t o "shifting t h e base " in time index numbers ; a process which, as is shown in a n y treatise on t h e theory ot index numbers, may involve fallacies. 2 Cf. The Making of Index Numbers, by Irving F I S H E R ; Boston, 1922. If p„ a n d p t represent t h e prices for a series of foodstuffs in two countries (or a t two dates) a n d q„ and qt represent t h e quantities of these foodstuffs consumed in t h e two countries (or a t t h e t w o dates) respectively, t h e "ideal " price index formula is as follows: Index - 100 X l / l ^ ! S Po 5o x ^ 2 Po (il F o r t h e interpretation of this and similar formulae, cf. in particular G. H A B E R L E R : Der Sinn der Indexzahlen (Tübingen, 1927), and more recently J . M. K E Y N E S : A Treatise on Money (London, 1930), Vol. I. FURTHER OBSERVATIONS 221 consideration. The next point to examine will be how the results obtained with this method compare with the results of other possible methods of comparison and, in particular, what value should be attached to certain other proposals made by individual collaborators in the enquiry and taken into account by the International Labour Office. The " i d e a l " formula appears specially suitable for the present purpose on various grounds. In the first place, the result can be presented in terms that exactly correspond to the problem. It also takes into account existing differences in the customs of the different countries, without, however, being unduly affected by the particular standard of living of these countries, the date of the budget enquiries used, and the number of commodities considered. Thirdly, the result is independent of the choice of base. These points may be briefly considered in turn. •If the suffix " 0 " stands for Detroit and the suffix "1 " for Berlin, and it is assumed that the first ratio under the square root sign of the " ideal " formula gives the following result: = 0.9 or 90 per cent., 2 Po 4o this means that the food consumption (so far as taken into account) of the American worker is 10 per cent, cheaper in Berlin than in Detroit, and that this American worker could live in Berlin in the same way as in Detroit at a cost of 10 per cent. less. Or to put it in another way, the Berlin price level (so far as taken into account in the calculation using the formula) is for him at least 10 per cent, lower than that of Detroit, for it is extremely probable that by slight modifications in his consumption he could obtain the same degree of satisfaction somewhat more cheaply. Assuming that the second ratio under the square root gives the following result: 2 Pi ) those articles among t h e "major (c) all articles foodstuffs " t h a t appearing in b o t h appear in both b u d gets budgets A | B B B A 83.17 85.90 94.39 81.53 84.41 77.51 105.30 69.22 84.63 66.62 25 21 22 20 21 27 16 19 21 14 82.37 78.40 88.70 71.35 63.43 74.83 81.65 58.41 81.45 60.56 29 21 31 20 41 41 20 19 21 21 82.33 78.40 89.80 71.35 62.64 74.31 81.86 58.41 81.45 59.27 B = Value of first price ratio (Detroit = 100). At the same time, the difficulties in the way of determining the data used in the calculations are considerable. First, the quantities have to be known for a series of " corresponding " articles in each of the two towns to be compared. Next, the price for each of the articles in the list of quantities has to be determined separately for each of these towns. As foodstuffs are classified in widely different ways in different countries and towns, it is obvious that the necessary associations of data concerning quantitites inevitably imply some degree of arbitrariness. There is the same difficulty as regards finding the prices to be attached in each town to the articles in the list of quantities, as in many cases this means that more or less arbitrary averages have to be calculated. The food tables given as an appendix to the report on each town in the Office study contain numerous examples of these arbitrary but inevitable associations. As a consequence, there is every likelihood that the degree of comparability of the prices thus found for the two towns will not be very high. These associations have provoked criticisms by the various Governments invited to submit observations on the report, and notably by the French Government. 226 ANNEX IV In formulating these criticisms the Statistique générale de la France first draws a distinction between two parts of the work done by the Office, namely: (a) the process of collecting and checking the numerical data, and (£>) the treatment of these data, of which the former is undoubtedly the most important, and then continues: It is certain that the figures are not comparable, though it is not possible to estimate the magnitude of the errors resulting from this fact. All that can be done is to raise certain queries. For instance, as regards the comparative prices of foodstuffs in Paris and in Detroit, why is it that for potatoes the price of 1.28 frs. per kilo in Paris has been adopted (a purely arbitrary average calculated by the Statistique générale de la France for an entirely different purpose)? It seems that it would have been equally legitimate to take the price of round white potatoes, which was only 1 fr. per kilo (25 per cent. less). For mutton (roast), the price chosen for Paris was that of the dearest part (leg), or 30.70 frs., while the price of shoulder was 24 frs. and of frozen leg 14.50 frs.; are there any special reasons to justify this choice ? The same questions could be asked for the other kinds of meat, for butter, for cheese (the price of which is considerably higher than in Detroit because the Gruyère type has been chosen for Paris,) etc. The Statistique générale de la France draws the conclusion — relating not only to the food group, but to all the work done by the Office — that: It is thus permissible to consider that the comparability of the very bases of the calculations is open to serious doubt. The method adopted for the treatment of the basic data obviously cannot eliminate this drawback, any more than it could remove the difficulties inherent in t h e very nature of the problem if the d a t a were in fact rigorously comparable. It may be admitted that in theory this reasoning is unassail-0 able. It is however based primarily on the hypothesis that the data used for the various countries are not comparable. Now, while it is obvious that, in view of the great diversity of the points of view ruling the determination of the basic figures (and in particular prices) for the different countries, it is extremely probable that the figures are not comparable, yet we are dealing here only with a probability, and by no means with a certainty. Further, it would be necessary to decide exactly what is meant by "comparability ": does it mean that the quality of each article should be so chosen as to be absolutely identical in all the towns, or would it do to have prices referring to the most usual qualities ? The present writer, considering the interpretation given to the formula chosen by the Office for the comparison of food prices 1 , is rather in favour of the latter alternative, which has also the advantage of avoiding the necessity of taking qualities that are not very usual in certain countries into account. It may evidently happen that the necessity of adapting prices to the data concerning the quantities consumed, which in many cases means calculating average prices, may result in endangering such comparability as the prices may have. But the contrary would be equally possible. It is to verify how far the French Government's hypothesis, on the one hand, or the reality of the danger suggested, on the other, is the more tenable position that table IV has been compiled. 1 See above, pp. 221-222. TABLE IV. Number ol comparison 1 v 2 3 4 COMPARISONS OF THE COST OF FOOD IN PARIS AND IN DETROIT SETS OF DATA Data used Weights Prices Source Date Board of T r a d e : Consumption of 1,951 families in 30 French towns, earning 52s. l i d . per week 1 1907-1908 Board of Trade: Consumption of 1,055 families in 30 French towns, earning 32s. 4 % d . per w e e k 1 1907-1908 Regional Committee on the Cost of Living (estimate): Consumption of a Parisian Approxifamily of 4 persons mately 1914 Technical Committee Food: Consumption inhabitant of Paris on per 1928-1929 5 Ditto 1928-1929 6 Ditto 1928-1929 Source Date Special enquiry Oct. 1930 Ditto Oct. 1930 Ditto Oct. 1930 Technical Committee on Food 3 Oct. 1930 Ditto J a n . 1931 Statistique générale la France 4 de J a n . 1931 Cost of Living in French Towns, p. xvm (Report ol an Enquiry by the (British) Board ol Trade). London, 228 ANNEX IV This table, comparing the prices of food in Paris (in October 1930 and January 1931) with the corresponding prices in Detroit (annual average for 1929), gives resultswhich confirm those shown in the various preceding tables. Further, it demonstrates that while the hypothesis of the Statistique générale de la France is at first sight highly plausible, it does not seem to be confirmed in this particular case. (a) The almost complete identity of the results of Nos. 1 and 2 in table IV indicates that for Paris also the comparison is independent of the income of the families whose consumption provides the weights. (b) The close similarity between the results of Nos. 1 and 2 on the one hand and of Nos. 3 and 4 on the other is a reminder that the comparison is not affected by the date at which the consumption was ascertained (cf. table II above). (c) As the weights in Nos. 1 and 2 refer to the average workingclass consumption in 30 French towns, and in the other cases to the Paris district, the similarity of all these results indicates that the error caused by using the Paris weights for Marseilles as well cannot be very important. (d) The close resemblance between the results of Nos. 1-3 on the one hand and of No. 4 on the other shows that the comparison is hardly affected by the number of articles considered, provided these articles are the same in Detroit and in Paris (cf. table III above). (e) As the weights in Nos. 1-2, 3 and 4 are derived from entirely different sources, in which the data are classified in very varied ways, and as they apply to a very variable number of articles considered, the similarity of these results indicates that the arbitrary associations of quantities and prices must in fact have compensated each other in the cases shown here. (f) As the prices are also derived from entirely independent sources in Nos. 1-3, 4-5, and 6 1, the similarity of all the results obtained renders probable in this particular case what is a priori highly improbable, namely, that the prices derived from completely different sources are none the less "comparable " ; the alternative being that in this particular case it is the arbitrary associations of quantities and prices that have produced this phenomenon of stability, in spite of the non-comparability of the basic data. The above discussion may be summed up as follows : (1) The "ideal " formula yields results for a comparison of prices between two places that are practically independent of the standard of living in these places. (2) The results of the formula are in essence unaffected by the dates of the systems of weights used. (3) So far as the calculation covers only such articles as can be shown to be used on both sides, the results display a noteworthy constancy. 1 The slight difference between Nos. 5 and 6 (relating to the same date) indicates that the uniformities observed in the preceding cases do not manifest themselves here with the same force. It would however be an exaggeration to think that a difference of 4 points (less than 5 per cent.) is enough to deprive of all value a method which seems to give complete satisfaction in all the other cases presented in this article. FURTHER OBSERVATIONS 229 So far, then, as these results are general — and there is reason to believe them to be so — it will be sufficient to have an adequately representative and not too old food budget for each country concerned in order to obtain a reliable result, by applying the "ideal "formula to a number of foodstuffs that can be shown to be consumed in both cases. It should finally be observed that this formula meets the test of a reversal of the places in question. Thus if a comparison of Berlin with Detroit shows that prices in Berlin are 80 per cent, of those in Detroit, a comparison of Detroit prices with those of Berlin will show that the price level of Detroit is 125 per cent, of that of Berlin. It is obvious that this condition should be satisfied by whatever formula is adopted, and it was therefore impossible to accept the proposal to use the arithmetic instead of the geometric average of the two branches of the formula because of its greater ease of calculation. • This brief consideration of the reasons in favour of using t h e " ideal" formula for an international comparison of prices will in itself have shown that the results obtained by the International Labour Office for at any rate the "food " group of the budget possess considerable reliability. Comparison of Results with other Enquiries For some years the International Labour Office has been making a periodical enquiry into the relative cost of living in certain countries. For this purpose the retaù prices of a certain number of foodstuffs are obtained and these are weighted by means of an "international budget " formed by combining the figures shown in various national budgets. ' A comparison of the results of this periodical enquiry with those of the present enquiry is rendered more interesting by the fact that the prices used in the two sets of calculations are obtained in quite independent ways (except for France, where the prices used in the two enquiries are the same). This comparison is made in table V. For the present enquiry the price ratios for each European town were based on the Detroit prices of 1929, and on European prices of various dates in 1930 and 1931. In order to make the results as comparable as possible the Office has used the national food price index numbers to bring the figures up to January 1931. 2 The figures in columns (2) and (3) of table V show, in national currency and in dollars, the estimated equivalent expenditures on food at different dates brought up to January 1931 by the use of the official cost-of-living index numbers. In column (4) these sums are expressed as percentages of the Detroit figures. They therefore give 1 For further details and t h e composition of this budget cf. International Labour Reuiew, Vol. X X I I , N o . 4 , Oct. 1930, p p . 542-546. 5 An example will show the procedure. The price ratio for Berlin was found t o be 74.6 per cent. Hence the food expenditure of 556.12 dollars ( = 2,335.70 marks) in Detroit (1929) has t h e same purchasing power as 1,742 marks (i.e. 74.6 per cent, of the Detroit expenditure) in Berlin (November 1930). German food prices fell by 2.9 per cent, from November 1930 to J a n u a r y 1931, according t o the German cost-of-living index number. The corresponding expenditure for Berlin in J a n u a r y 1931, rounded to t h e nearest 5 m a r k s , is therefore 1,690 m a r k s . On t h e other h a n d , according t o t h e figures of the U.S. Bureau of Labour Statistics, food prices in Detroit fell from 1929 (annual average) to December 1930 b y 15.9 per cent., which when applied t o 556.12 dollars gives an expenditure of a b o u t 468 dollars. The price ratio for Berlin a t t h e beginning of 1931 compared with Detroit a t t h e end of 1930 is thus about 86 per cent., provided the prices of t h e articles of food included in t h e calculations had followed t h e movement indicated by the general food index number. In actual fact this is, of course, only approximately the case, and t h e application of t h e national indexes as described above therefore introduces some degree of uncertainty into the calculations. 230 ANNEX IV TABLE V. COMPARISON OF THE RESULTS OBTAINED FOR FOODSTUFFS BY THE "IDEAL " FORMULA WITH THE RELATIVE COSTS OF THE "INTERNATIONAL B A S K E T " IN JANUARY 1 9 3 1 Town Total food expenditure ( J a n . 1931) (1) December 1930. currency In dollars (2) (3) (4) (5) (6) 100 * 86 97 81 93 99 91 76 84 * 83-89 95 54 59 100 l 93 10 cities 84 94 90 2 Copenhagen 3 cities 6 cities Brussels 4 cities 7 „ ! national basket (U.S.A. =100) The d a t a in col. (5) refer t o : (Detroit = 100) Detroit . . $ 468 ! 468 ! Berlin . . . RM. 1,690 402 Frankfort . „ 1,900 452 Copenhagen Kr. 1,420 381 Stockholm . „ 1,620 434 Paris . . . Fr. 11,860 465 Marseilles . ., 10,885 427 Antwerp . . ., 12,785 385 Rotterdam . Fl. 977 ! 3931 Manchester. £79.9-£85.6 389-417 Cork. . . . £91.65 446 Warsaw . . Fl. 2,255 253 Barcelona . P t a s . 2,631 274 1 Index Food cost ratio of food ex- obtained b y 72 80 87 95 60 72 6 „ 3 4 4 „ „ „ February 1931. the relative food expenditure as between each European city and Detroit. Finally, column (5) gives the indexes of the cost of an "international basket of provisions ", the base being the cost in the United States in December 1930 = 100. l It will be seen that for the two methods there is a noteworthy agreement, especially when it is remembered that the index number for France in column (5) refers to February 1931 and not, like the figures for Paris and Marseilles, to January 1931. Further, the difference between the corresponding figures for the Netherlands may be explained by the fact that the index number of column (4) relates to December 1930, and that of column (5) to January 1931. The difference for Spain is due not only to the lack of a reliable index number, but also to divergencies between the movements of the rate of exchange and of the cost of living. In order to obtain an idea of the possible disturbing effect of this use of the national index numbers, an attempt is made in table VI to compare the original results calculated by the "ideal " formula with those of the international basket of provisions in such a way that in each case the prices used on both sides (i.e. the American as well as the European) relate as far as possible to about the same date. The result of the comparison is extremely satisfactory. Except for Antwerp and Barcelona there appears to be almost complete agreement between the results of the two methods although the prices on which the figures are based do not come from the same source as those used in the present enquiry, they do not always refer to exactly the same date and it is only for Copenhagen that they refer to the same area. As regards the two cases of less satisfactory agreement, 1 No figures are available for Helsinki and Istanbul. FURTHEB 231 OBSERVATIONS TABLE V I . COMPARISON O F FOOD COSTS B E T W E E N D E T R O I T ( A V E R A G E 1 9 2 9 ) A N D 1 2 E U R O P E A N TOWNS (AT VARIOUS D A T E S ) CALCULATED B Y T H E " I D E A L " FORMULA A N D T H E " I N T E R N A T I O N A L BASKET OF P R O V I S I O N S " " Ideal " formula Town Detroit . . Berlin . . Frankfort . Stockholm Copenhagen Paris . . . Marseilles . Antwerp . Rotterdam Manchester Cork . . . Warsaw . . Barcelona . Result of comDate to which parison the prices relate (Detroit =100) Annual aver100 age 1929 Nov. 1930 74.6 Nov. 1930 83.8 October 1930 81.5 International basket of provisions Town Result comDate to which of parison the prices relate (U.S.A. = 100) J u n e and Dec. 1929 100 |. „ J a n u a r y 1931 78.5 J u l y 1930, 3 „ Jan.1931 81 July-Aug. 1930 73.8 Copenhagen July 1930 76 J a n u a r y 1931 83.6 February 76 February 1931 75.5 1 6 towns 1931 October 1930 68.4 Brussels J a n u a r y 1931 60 Aug.-Sept. 1930 74.3 73 4 towns July 1930 J a n u a r y 1931 72.2 73 7 „ J a n u a r y 1931 July 1930 81.3 80 3 „ July 1930 July 1930 52.5 51 4 „ July 1930 Sept. 1930 48.5 4 „ July 1930, 64.5 Jan.1931 10 towns it should be noted that the prices for Antwerp refer to October 1930, while those for Brussels refer to January 1931, and for Barcelona satisfactory results could hardly be expected for the reasons already indicated in respect of table V. Another conclusion to be drawn from table VI is that the results of the much contested method of the "international basket of provisions " are in practice not so bad and "misleading " as they have been accused (without evidence) of being. Further, the fact that the results obtained by the two methods are in agreement although the prices used in the two sets of calculations are a priori non-comparable seems seriously to weaken the thesis put forward by the Statistique Générale de la France, alluded to above (p. 226). What we have here is therefore not merely a new verification of the theorem on the relatively small effect of the weights used in calculating the averages. Lastly, it may be observed that while the use of the national cost-ofliving index numbers to bring the figures up to date has a certain disturbing effect, this is by no means so great as might be expected from the usually very wide difference between the list of articles used in constructing the national index numbers and the lists of foodstuffs used in the present enquiry. For this reason the results as converted to January 1931 may also be regarded as sufficiently accurate. Alternative Proposals for calculating Food Expenditure The results so far considered were calculated by the Labour Office solely by means of the "ideal " formula. borators of the Office agreed to its use, but two of the question put forward alternative methods for calculating International AH the collaauthorities in an equivalent 232 ANNEX IV expenditure on food for their countries in relation to Detroit, namely, Germany (Berlin and Frankfort on the Main) and Sweden (Stockholm). The German Federal Statistical Office raised the question whether it would not be more effective to proceed from the Detroit consumption schedule, and, instead of using the "ideal " formula, to take intoe account German customs as to consumption by replacing some of th articles which are of some importance in Detroit but not in Germany. Articles of ordinary consumption in Germany would be substituted for certain American articles, and the calculation would be effected in such a way that there would be no change in the nutritive value as a whole, measured in calories. The German Statistical Office gave an example of the application of its method, which is reproduced in the Office study as an annex to the report on Berlin and Frankfort on the Main. Although the results of this method differ somewhat from those calculated by the "ideal " formula, they have been accepted by the International Labour Office as a " lower limit " and taken into account. The German Statistical Office used for its calculation the same 29 articles as were selected by the International Labour Office for the application of its own method. It should be remembered that for these 29 articles the quantities consumed in both America and Germany were known. The expenditure needed for purchasing the quantities of these 29 articles consumed in Detroit was then obtained on the basis of the prices in Detroit, Berlin, and Frankfort, which would have been equivalent to a calculation of the first ratio of the "ideal " formula but for the corrections applied to the American consumption. It is, of course, hard to determine the extent to which these corrections go too far or are inadequate, but there can be no doubt that it would have been impossible to find comparable methods for other countries. It is indeed extremely doubtful whether, even for Germany, the same or similar substitutions would have been made by other persons; it is, for instance, more or less arbitrary to replace the American consumption of beef (steak, roast, and stew) by a predominant consumption of stew and sausage. It is at least clear that in this case the International Labour Office could do no more than consider the German proposal as an alternative. It might even be asked whether it was desirable to take it into account for the final result. The proposal of the Swedish Social Board is based on the postulate that in calculating the costs of equivalent nutritive values account should be taken of both quantity and quality. The method may be described as follows: (1) the consumption of both the Detroit worker and the Stockholm worker should be divided into two groups, the first of which (called group A) should comprise all the important foodstuffs that in practically every country of West European culture form the basis of nutrition, while the second (group B) should comprise all the remaining foodstuffs; (2) for Detroit and for Stockholm, the average price per calorie should be determined for each of the groups A and B ; (3) the cost of the calories consumed in Detroit should be calculated separately for each group, A and B, at the corresponding Stockholm price per calorie; (4) the sum of the Stockholm results so obtained separately for groups A and B should be regarded as the expenditure equivalent to the Detroit total expenditure. The practical example given by the Swedish authorities results in the following average prices per 100 calories : FURTHER Group 233 OBSERVATIONS Stockholm (October 1930) ore Group A (10 articles) Group B 1.736 5.297 Detroit (1929) ore 2.169 8.101 The calories consumed in Detroit and their costs are as follows : Group Calories consumed in Detroit Group A (10 articles) Group B Cost in Stockholm kr. Cost in Detroit kr. 318 1,076 1,394 397 1,646 2,043 1,831,000 2,032,000 Total Hence the price ratio for Stockholm would be 68.2 per cent, of the Detroit prices. Various objections may be raised to this procedure. Above all, the subdivision of the food budget into groups A and B is completely arbitrary, and the use of different subdivisions may in certain circumstances produce quite different results. If, for instance, only the first 5 articles used by the Swedish Social Board are included in group A instead of the whole 10, the price ratio will be 67.1 per cent., and if the other 5 articles only are taken the ratio will be 75.0 per cent. Nor is i t c l e a r w h y , for i n s t a n c e , b u t t e r , m i l k , a n d m a r g a r i n e a r e n o t i n c l u d e d in group A. In brief, the subdivision is quite arbitrary. Furthermore, it is clear that this method, like that of the German Statistical Office, could not be used for other countries without further consideration, for in that case there must first have been an exact agreement on the subdivision into groups A and B. Next, if another income class in Stockholm had been used as a basis, the result would have been distinctly different. And finally, it can be shown 1 that according to this method the price ratio represents the relation between prices of calories and not of foodstuffs. But what interests the consumer is not so much the number of calories as the quantity of certain foodstuffs that he can obtain for his income. The idea underlying the whole method that an equal consumption of calories may without further consideration be deemed an equivalent consumption of foodstuffs would nowadays not be accepted even from the purely physiological point of view. 2 At the most, therefore, the International Labour Office can be reproached for having taken these two proposals into account in addition to its own methods for the final result, especially as the Swedish result differs considerably from that of the Office for the comparison of food prices in Stockholm and Detroit. 1 Let E a and E¡> represent t h e total expenditure on groups A and B respectively in Detroit, a n d E'a and E'a the corresponding expenditures in Stockholm; also let Ca a n d Cb represent t h e number of calories in groups A a n d B in Detroit a n d C'a and C'ft t h e corresponding figures lor Stockholm. Then t h e Swedish method gives t h e following result: E'fi m*<* + C'ft X Ci> Price ratio = 100 X Efc X Co Co or in oUier words, this ratio is t h e relation between the average prices per calorie in groups A a n d B , weighted by t h e calorie consumption in Detroit, for Stockholm a n d for Detroit respectively. s The computation of food values on a calories basis plays little p a r t in the modern science of dietetics. Alore stress is now laid on such qustions as t h e presence of vitamins a n d t h e calcium, phosphorus, iron, and protein content. In addition, calories make n o allowance for individual tastes. Íx- + 234 ANNEX IV The Swedish statistical authorities have not declared themselves in agreement with these observations on their method. Their position is that it is in fact variety and the amount of protein, vitamins, and mineral salts they contain that determine the nutritive value of foodstuffs; but that if calorie value and variety are taken into account, then in all probability the other criteria determining the standard of food consumption would also automatically be satisfied. Further, the higher calorie value of the food budgets of the more well-to-do classes in any given country does not necessarily imply consumption of luxury articles; it represents a higher degree of satisfaction, an improvement of the general well-being, and the consumption of larger quantities of fresh and palatable foodstuffs. As a result of greater variety, the principal foods containing mainly carbohydrates and fat are replaced by similar foods of better quality, by foods containing more protein, and by miscellaneous items which have a low calorie value and serve chiefly to stimulate the appetite. It is on this basis that the Swedish Social Board had proposed to make a direct comparison of the cost of food in the different countries. By compiling food budgets for different towns which satisfy both calorie requirements and the need for variety (taking due account of physiological requirements), the Board considers it possible to compare the cost for a similar quality of the standard. In determining the degree of variety of the food budget, a distinction must be drawn between the principal foodstuffs, i.e. the ordinary foodstuffs consisting mainly of hydrocarbons and fat, on the one hand, and the remaining foodstuffs on the other. In the latter group should be included foodstuffs which serve mainly to satisfy t h e need for protein. This is why milk is placed in this group in the numerical example given. The present writer merely places these supplementary explanations of the Swedish authorities on record, for he is of opinion that the latter do not wholly repudiate the views previously expressed as to their method. At the same time, the assertion cannot be accepted without protest that " t h e method applied by the International Labour Office... contains an important source of error from the fact that for each town a considerable part of the budget is excluded from the comparison. " It follows, in fact, from the explanations given above that the result of the comparison of prices remains remarkably stable if the number of articles considered is made to vary within quite wide limits. At the same time, the Office highly appreciates the attitude of the Social Board in "not wishing to formulate any criticism without at the same time offering a positive contribution to the elaboration of a new perfected method. " Housing, Heating and Lighting Up to the present there has been no attempt to make an international comparison of housing costs, and the methods and results of the International Labour Office in this field are therefore of special interest. In view of the impossibility of finding entirely satisfactory criteria for comparing the actual dwellings* even in the same town, the Office, as explained in the present report (pp. 17-19), requested its collaborators to supply two sets of data. In spite of the fairly precise definitions of the data desired, certain difficulties were met with in collecting them. It was, for instance, not possible to obtain both sets for all the cities. Further, the rent restriction legislation in certain FURTHER 235 OBSERVATIONS countries made it difficult to settle on a definite rent. Finally, in view of the various requirements to be satisfied, the method of determining the size of the dwelling by the number of rooms is clearly not very satisfactory. Nevertheless, a comparison with estimates from other sources, such as that made below, shows a surprising agreement, and this, in view of the complete independence of the different sets of data, is of great importance. In calculating an equivalent expenditure on heating and lighting less attention was paid to the relative price level than to climate and consequent differences in habits in the individual localities. It would, for instance, have been foolish to have assigned to the Marseilles worker a sum corresponding to the purchasing power in respect of coal, wood, gas, and electricity of the Detroit expenditure on these items of 100 dollars. The mean January temperature of Detroit is in fact approximately the same as that of Helsinki. The problem is therefore to allow in the first place for local custom, and at the same time as far as possible to prevent the particular standard of living of the average family selected for this purpose (depending on family income, size of ' family, number of rooms occupied, etc.) from affecting the calculation. This, of course, was not so easy to carry out for this group of expenditure, owing to the difficulty of obtaining satisfactory data on the consumption of these articles. It is beyond the scope of these pages to discuss the details of the special methods used for each country. Instead, a comparison may be made between the results so obtained, as well as those obtained for rents, with other independent material. The totals for rent and for heating and lighting as given in the Office study are shown (expressed in dollars) in table VII. TABLE VII. E Q U I V A L E N T E X P E N D I T U R E S ON H O U S I N G AND H E A T I N G AND LIGHTING IN JANUARY 1 9 3 1 , AS COMPUTED BY THE OFFICE A N D COMPARED W I T H OTHER INFORMATION Index oí expenditure for housing a n d HeatIndex heating and lighting as computed b y t h e ing (Detroit Gol. Col. = 100) Unilever Company and light- G)+Ü) (3)+ (4) Manchester Manchester ing Col.(5) Col.(6) = 54 = 59 Expenditure in dollars o n : Housing Town (1) Lower limit Upper limit (2) (3) Detroit ! 350 Berlin 243 Frankfort 243 Copenhagen 214 Stockholm .— Helsinki — Paris 172 149 Marseilles Antwerp 122 Rotterdam 2 157 Manchester 152 Cork .—. Warsaw 178 Barcelona 103 Istanbul 141 (4) (S) 350 100 450 328 43 i 286 328 43 ¡286 322 65-71 279 402 52 i — 340 61 .— 274 69 241 235 51 200 181 30 152 201 44 201 165 89-102 241 170 101 — .—. 68 246 54 157 — 59 200 • — • (6) (7) (8) 450 100 100 371 64 82 371 64 82 393 62 87 454 — 101 401 — 89 343 54 76 286 44 64 211 34 47 246 45 55 267 54 59 271 60 55 — — 35 — 44 • — • • (9) (10) 96 96 62 93 105 105 80 101 •— — • • 66 — 72 — • 49 53 54 54 57 59 — •—• — — — — • 1 December 1930. ! The two figures for housing in Manchester do not correspond e x a c t l y to t h e definition ot t h e " lower " a n d " upper ' limits. 236 ANNEX IV In comparing the expenditures on heating and lighting it must be remembered that variations in the total depend not on the climate alone of the cities in question, but also on local customs and prices. The last column shows the results of an enquiry into rents and heating and lighting made by the Unilever Company in January 1930.1 The indexes were calculated by taking Manchester as 54 and 59 per cent. (for the lower and upper limits respectively), so as to make them comparable with the indexes in the previous columns. Although the Unilever figures refer to the expenditure that an Englishman (and not, as in the Office enquiry, a national of the country) must incur in order to live in the country in question in the same way as with an annual income of £500 in England, and cannot therefore be directly compared with the results of the Office enquiry, it is noteworthy how close the agreement between the two sources is. As a matter of fact, the order of the countries both in columns (7) and (9), and in columns (8) and (10), is practically the same, as will be seen from table VIII. T A B L E V I I I . — O R D E R O F E Q U I V A L E N T E X P E N D I T U R E S FOR H O U S I N G A N D H E A T I N G AND L I G H T I N G IN VARIOUS E U R O P E A N T O W N S , 1 9 3 0 - 1 9 3 1 E n q u i r y of the I.L.O. Country Germany Sweden France Great Britain Netherlands 1 Ex Lower limit Upper limit 1 3 1 2 4 5 6 7 3 41 51 6 7 Enquiry of the Unilever Company 1 2 3 4 5 6 7 aequo. This table shows that with the exception of Germany, where according to the International Labour Office enquiry rents, etc., appear to be relatively lower (provided the "upper limit " column is considered, which strictly speaking is the only one comparable with the Unilever column), the order of the "equivalent " expenditures for the seven European countries is exactly the same. The fact that the indexes of table VII differ substantially from those of table V (food costs) is not surprising for various reasons: (1) There is not the slightest reason why the relation between the prices of foodstuffs in any two countries should be the same as that between the costs of housing or of heating and lighting in the same two countries. International trade cannot equalise rents in different countries. (2) For food, as for rents, e t c , the comparison is in each case with Detroit, and therefore the relation between these indexes only indicates to what extent the relation between the computed food costs and housing costs differs from their relation at Detroit. There is no reason to assume that this relation must be the same everywhere. (3) In certain cases rent restriction legislation has a very marked effect on rents. 1 For t h e details of this enquiry cf. The Economist, 8 Nov. 1930. 237 FURTHER OBSERVATIONS It is beyond the scope of this article to enter into further details. But as these questions have given rise to certain observations, notably from the Polish Government, a "Note on the Relation between the Index Numbers of the Cost of Housing and the Cost of Food in the Different Cities ", by Mr. R. Guye (Research Division, International Labour Office), has been added at the end of this article. Furthermore, the results of this attempt to make an international comparison of rents are at any rate satisfactory enough to suggest a hope that the basis for the international comparison of costs of living may in future be widened by the inclusion of rents. The Distribution of Expenditure among the Different Groups The previous pages have dealt with the comparison of results obtained for certain groups of expenditure in the different towns. These results are given in the form of the relation between the expenditure for each group in the European town and in Detroit, and therefore represent indexes of costs for the different groups of expenditure. In their calculation no account has been taken of the results obtained for the other groups. Thus the formula used for food, although it fulfils certain conditions which make it particularly suitable for the calculation of food index numbers, does not take any account of the expenditure on housing or any other group. Naturally, this is not in strict accordance with reality, for a family has to take account of all of its other expenses in fixing the amount which it spends on food, and vice versa. It is therefore necessary to consider how far this method has had any influence on the final results. The cost indexes obtained for each group were applied to the expenditure for this group in the Detroit budget and the sum of these different expenditures was assumed to represent the cost of an equivalent standard in the different towns. In other words, the proportions which the expenses for the different groups represent in the Detroit budget have been used as weights for combining the different group indexes into one figure. If instead of using the American proportions the proportions in each European town had been taken, a different result might have been obtained. Experiments made to illuminate this point are given later. TABLE IX. PERCENTAGE DISTRIBUTION OF EXPENDITURE AMONG DIFFERENT GROUPS OF EXPENDITURE IN JANUARY 1931 Detroit * Expenditure group Berlin I Food . . . Housing . . Heating and lighting . Clothing . . Medical expenses . . Miscellaneous expenses . Insurance . Taxation . . 1 II Frankfort I II Copenhagen! Stockholm I Il| ! Paris Helsinki II I II . 30.2 31.6 30.2 34.0 32.7 29.6 26.9 23.5 26.9 23.3 37.5 34.5 . 22.6 19.9 24.6 19.2 23.7 16.7 22.7 26.3 24.9 26.5 13.9 20.3 . 6.4 3.5 3.2 3.4 3.1 5.0 5.0 3.4 3.2 4.7 5.6 5.1 . 12.6 12.9 11.8 12.4 11.4 15.0 13.6 14.0 13.3 13.5 16.9 15.5 . 3.9 3.6 3.3 3.5 3.2 2.2 2.0 2.6 2.4 3.6 2.1 1.9 . 20.7 19.7 18.0 18.6 17.0 22.5 20.5 21.2 20.0 17.5 19.3 17.7 . 3.6 4.8 4.6 4.7 4.6 4.8 4.6 3.4 3.5 3.5 3.6 3.6 4.0 4.3 4.2 4.3 4.2 4.7 5.6 5.8 7.4 1.1 1.4 . I = Lower limit. II = Upper limit. Figures for 1929 budget enquiry corrected to Dec. 1930 (see table I, p. 30). 238 ANNEX IV TABLE IX. •— PERCENTAGE DISTRIBUTION OF EXPENDITURE AMONG DIFFERENT GROUPS OF EXPENDITURE IN JANUARY 1 9 3 1 (cOTlt.) Marseilles Expenditure group Food . . . Housing . . Heating and lighting . Clothing . . Medical expenses . . Miscellaneous expenses . Insurance . Taxation . I II Antwerp I II Rotterdam Manchester I II I II Bar- IstanCork Warsaw celona bul . 36.9 34.1 37.6 35.2 39.7 38.0 35.4 36.1 34.0 25.4 30.6 29.7 . 12.9 18.8 12.9 17.9 15.8 19.5 13.8 14.3 13.0 17.8 11.7 13.9 . 4.4 4.1 3.2 3.0 4.5 4.3 8.1 8.9 7.7 6.8 6.1 5.8 . 18.0 16.7 18.0 16.8 11.9 11.4 12.1 11.5 14.6 15.2 14.9 21.8 . 2.3 2.1 2.2 2.1 2.4 2.2 2.4 2.2 3.0 3.1 2.6 2.0 . 20.9 19.4 21.2 19.8 20.0 19.2 24.5 23.4 23.5 23.3 21.6 23.2 . 3.6 3.6 3.2 3.2 2.4 2.3 3.7 3.6 4.2 3.5 3.3 3.6 4.9 9.2 ? . 1.0 1.2 1.7 2.0 3.3 3.1 I •• Lower limit. II =• Upper limit. Table IX shows for the total expenditure of the worker (i.e. excluding employers' and State contributions to social insurance) its percentage distribution between the different groups for Detroit in December 1930 (estimated) and for each European town in January 1931. The latter percentages are quite hypothetical, being obtained by taking account of the results based on the Detroit budget. As a result the figures show certain apparent anomalies, especially as regards the group "miscellaneous expenses ". In every case the proportion is lower for this group for the figures based on the "upper limit ". This is easily explained by the fact that a single sum for. this item has been given for this group in both the lower limit and the upper limit budgets, and this sum represents, therefore, a smaller proportion in the case of the upper limit budget. Moreover, the variation in the proportion devoted to food should be noticed. This proportion has been taken as an index of well-being or of standard of living both in time comparisons and in place comparisons. As the results of the Office enquiry purport to represent equivalent standards of living in the different towns, this proportion might perhaps have been expected to show a considerable degree of uniformity. In fact, however, the use of this proportion for such a purpose is justified only in cases where families are living under similar conditions as regards prices, customs, tastes, etc. To demonstrate how far these distributions, although hypothetical, may nevertheless be accepted for the income class considered, table X has been drawn up. This table gives a comparison, for the four countries for which recent information is available from family budget enquiries, of the distribution of expenditure over the different groups as shown by the Office figures and by the family budget enquiries for incomes of the same order of magnitude. As most of the enquiries are several years old, it has been necessary to correct the percentages shown in the original source by allowing for the change in prices in the different groups between the date of the enquiry and January 1931. It will be seen that the proportion spent on food is almost the same in the budgets calculated by the Office as in those given by family budget enquiries. In the Netherlands, where the food proportion calculated by the Office is higher than that in Detroit, the figure given by the family budget enquiry is also higher, whereas in Denmark and 239 FURTHER OBSERVATIONS TABLE X. COMPARISON OF COMPUTED AND ACTUAL PERCENTAGE DISTRIBUTIONS OF EXPENDITURE, IN FOUR COUNTRIES Country and nature of data Germany A. I.L.O. results for Berlin: (a) Lower limit RM. 5,135 (b) Upper limit RM. 5,605 B . Family budget results, 1927-1928 : (a) Officials RM. 5,570 (b) Same corrected for price changes t o J a n . 1931 Denmark A. I.L.O. results for Copenhagen: (a) Lower limit Kr. 4,795 (6) Upper limit Kr. 5,285 B . Family budget results, 1922: (a) Income average Kr. 5,450 (b) Same corrected for price changes t o J a n . 1931 Sweden A. I.L.O'. results for Stockholm: (a) Lower limit Kr. 5,715 (b) Upper limit Kr. 6,040 B . Family budget results, 1923: (a) Expenditure K r . 6,430 (6) Same corrected for price changes to J a n . 1931 Netherlands A. I.L.O. results for R o t t e r d a m : (a) Lower limit Fl. 2,460 (b) Upper limit Fl. 2,570 B. Family budget results for Amsterdam, 1923-1924: (a) Expenditure Fl. 2,880 (b) Same corrected for price changes to Dec. 1930 Food HeatHous- ing and Cloth- Other ex- Taxalight- ing penses ing tion ing 31.6 30.2 19.9 24.6 3.5 3.2 12.9 11.8 28.1 25.9 4.0 4.3 33.7 12.5 3.8 14.1 31.2 4.7 30.6 14.4 4.1 13.4 32.8 4.7 29.6 26.9 16.7 22.7 5.0 5.0 15.0 13.6 29.5 27.1 4.2 4.7 30.1 9.8 5.9 13.1 32.9 8.2 25.1 16.2 4.2 12.4 33.6 8.5 23.5 26.9 26.3 24.9 3.4 3.2 14.0 13.3 27.2 25.9 5.6 5.8 30.0 11.6 4.1 13.3 25.8 9.6 28.3 16.3 4.0 13.9 28.2 9.3 39.7 38.0 15.8 19.5 4.5 4.3 11.9 11.4 24.8 23.7 3.3 3.1 36.0 11.1 5.1 12.7 28.1 7.0 33.6 13.7 4.8 10.8 30.1 7.0 240 ANNEX IV Sweden \ both the figure calculated by the Office and the figure shown by the family budget enquiries are lower than the Detroit percentage. In Germany, the proportion is approximately the same for all three. On the other hand, the percentage spent on housing is higher in the calculated budgets than in the family budgets. This is due partly to the legal restrictions on rents, but also to the fact that a European dwelling does not usually have as many rooms as one in Detroit; in other words, the level of housing accommodation in these four countries appears somewhat inferior to that observed in America. For clothing and for heating and lighting a good approximation will be noticed; for other expenses the proportions are generally lower in the calculated series, but this appears natural since it is probably due to a sort of transfer between the expenses for housing and for other expenses. It may therefore be concluded that the distributions shown by the Office figures agree fairly well with the distributions shown in national family budget enquiries, although the Office calculations are hypothetical in the sense that in their computation no account has been taken of the results for the other groups in the budget. An Alternative Method of compiling the Total Expenditure In order to verify how far the use of the Detroit budget weights may have affected the general results, an alternative method has been applied in certain towns by using weights given by national budget enquiries. The method of computation is shown in detail for the city •of Berlin in table XI. Column (2) shows the proportion spent on different groups (except taxation) in the 1927-1928 German family budget enquiry, corrected so as to allow for the changing price level TABLE XI. W E I G H T I N G O F T H E R E L A T I V E COSTS O F T H E D I F F E R E N T GROUPS AS C O M P U T E D F O R B E R L I N , ACCORDING TO T H E P R O P O R T I O N S OF E X P E N D I T U R E SHOWN FOR T H E S E GROUPS IN T H E GERMAN B U D G E T E N Q U I R Y O F 1 9 2 7 - 1 9 2 8 , C O R R E C T E D F O R . P R I C E C H A N G E S TO JANUARY 1 9 3 1 E x p e n d i t u r e group German budget enquiry of 1927-1928 corrected for price changes to J i m . 1931 Col. (2) recomputed o n basis of total = 100 (1) (2) (3) Food Housing . . . Heating and lighting . . . Clothing . . . Other expenses Total . . Relation of costs in Berlin Col. (3) X to those in Col. (4) Detroit = 100 in J a n . 1931 (Detroit = 100) (4) 30.6 14.4 32.1 15.1 83-86 69-94 4.1 13.4 32.8 4.3 14.1 34.4 43 81 78 95.3 100 — (5) 26.6-27.6 10.4-14.2 1.9 11.4 26.8 77.1-81.9 1 I t should be noticed t h a t t h e proportion for t h e tower limit is r a t h e r too low for Sweden a n d probably somewhat too low for Germany. In these two cases t h e lower limits .are based on special methods for food a n d are n o t strictly comparable with those for other •countries. 241 FURTHER OBSERVATIONS between that date and January 1931. Column (3) shows these figures modified so as to add up to 100. Column (4) shows the price ratio between Berlin and Detroit in January 1931 for each group. Column (5) shows the effect of applying this price ratio to the modified weights of column (3). The result is to give a price ratio of 77.1 (lower limit) to 81.9 (upper limit). These two price ratios are then applied to the Detroit expenditure 1 , taxation is added, and the final figures (RM. 5,229 and RM. 5,572) are compared in table XII with the figures given in the Office study (RM. 5,135 and RM. 5,605). The same method has been used for the other three countries for which it is possible to apply this method (Denmark, Sweden, and Holland) and the results are also shown in table XII. It will be seen that the totals obtained by the two methods of weighting are almost identical and the fact that the Office limited its calculations to a single method does not appear to have had any appreciable influence on the final result. TABLE XII. COMPARISON BETWEEN TOTAL FAMILY EXPENSES CALCULATED BY THE I.L.O. USING PROPORTIONS SHOWN IN DETROIT BUDGET AND PROPORTIONS SHOWN IN DIFFERENT NATIONAL BUDGETS Currency unit Total expenses Total expenses obtained by obtained by the national weights I.L.O. (Jan. 1931) « Index Index Absolute number Absolute number figure (Detroit (Detroit figure = 100) = 100) Berlin, lower limit . . . , ,, urjner RM. 5,135 5,605 79 86 5,229 5,572 80 86 Copenhagen, lower limit upper „ Kr. 4,795 5,285 83 91 4,907 5,275 85 91 Stockholm, lower limit . ,, upper „ Kr. 5,695 6,020 98 104 5,709 6,028 99 104 Rotterdam 2 , lower limit „ upper „ Fl. 2,460 2,570 64 67 2,559 2,629 66 68 1 ! Not including employers' social insurance contributions. December 1930. It might however be thought that the fact of having, in the calculations shown in tables XI and XII, used only weights derived from incomes of the same order of magnitude as the calculated income may mean prejudging the results. In fact, it is well known that the distribution of the family expenditure over the different items of the budget varies with the income. But it is precisely for this reason that it is not permissible to base the weights applied to the partial cost-of-living index numbers on the distribution of incomes that differ perceptibly from the level considered. 1 The calculations are as follows: Lower limit: R.M 77.1 % oí $1,550 or RM. 6,510 5,019 Taxation 210 Total 5,229 Upper limit: 81.9% of »1,550 or RM. 6,510 Taxation Total RM. 5,332 240 5,572 242 ANNEX IV While there is thus no a priori reason for pausing over such an objection, it is interesting to see what the effect of this procedure would be. It is the Polish Government, notably, that has insisted on this point in its observations about the present enquiry. In compiling table XIII, therefore, the Office has followed exactly the same procedure as for table XI .using for the weights the distribution of expenditure recorded in Warsaw in 1927 for family incomes of 3,350 and 4,620 zloty respectively. TABLE XIII. — WEIGHTING OF THE RELATIVE COSTS OF THE DIFFERENT GROUPS AS COMPUTED FOR WARSAW, ACCORDING TO THE PROPORTIONS OF EXPENDITURE SHOWN FOR THESE GROUPS IN THE WARSAW BUDGET ENQUIRY OF 1 9 2 7 , CORRECTED FOR PRICE CHANGES TO JANUARY 1931 Warsaw budget enquiry of 1927, corrected for price changes to Jan. 1931 Expenditure group (1) 40 families each spending about Zl. 3,350 in 1927 Col. (2) Col. (3) recomrecomputed on puted on basis of basis of 8 families total each spend- =total = 100 100 ing about Zl. 4,620 in 1927 1 I (2) (3) | (4) | (5) Relation of costs in Warsaw Col. (4) Col. (5) to those in Detroit xcol. (6) Xcol. (6) =100 in =100 Jan. 1931 (Detroit = 100) | (6) | (7) | (8) . 46.1 6.5 38.0 6.4 52.2 7.4 42.2 7.1 54 51 28.2 3.8 22.8 3.6 . . . 6.0 11.8 17.8 6.1 13.4 26.1 6.8 13.4 20.2 6.8 14.9 29.0 68 77 72 4.6 10.3 14.5 4.6 11.5 20.9 Total. . . 88.2 90.0 100.0 100.0 — 61.4 63.4 Food Housing . . . Heating and lighting . . . Clothing . . . Other expenses The results of these calculations are somewhat surprising. Allowing for taxation, as was done for Germany (cf. the explanations relating1 to table XI), the sums obtained are 8,944 and 9,221 zloty respectively , as compared with 9,340 zloty calculated by the Office — a negligible discrepancy in view of the wide difference between the income calculated by the Office and the two incomes the distribution of which provided the weights. This is why the extent of the divergences between the results obtained by the Polish and American weights should be considered in the light of the differences between the incomes on which the weights are based. Table XIV sums up the two calculations made by the International Labour Office, and shown in tableXIII, and a solution proposed by the Polish authorities, who for the Polish weights have used a still lower income than those considered by the Office, because from the calculations of the Polish Central Office of 1 The calculations are as follows : Lower limit: Zl. 61.4% of »1,551, or ZI. 13,850 8,504 Taxation 440 Total 8,944 Upper limit: 63.4% of $1,551, or ZI. 13,850 Taxation Total Zl. 8,781 440 9,221 FURTHER 243 OBSERVATIONS Statistics that sum seems to be more representative of the incomes of Polish workers. TABLE XIV. R E L A T I O N B E T W E E N T H E SIZE OF T H E I N C O M E S U S E D FOR C O M B I N I N G T H E P A R T I A L I N D E X N U M B E R S AS C O M P U T E D FOR WARSAW AND T H E CORRESPONDING RESULTS Polish income in 1927 per unit of consumption (income used t o determine weights) (1) Zl. 1,541.00 835.56 623.57 Result of Polish weighting (per unit) 1 (2) Zl. 2,820 2,735 2,620 Income per unit calculated by t h e I.L.O. (American weighting) 1 (3) | Zl. j 2,855 j Ratio of col. (1) t o col. (3) X 100 (4) 54.0 29.3 21.8 R a t i o of col. (2) t o col. (3) X 100 | (5) 98.8 95.8 91.8 It follows from this table that there is a marked correlation between the divergence of the results on the one hand and the difference between the income calculated by the Office and the income determining the Polish weights on the other. But in order to obtain a divergence of 8.2 per cent, between the results the latter income must be lowered to a figure representing not more than about one-fifth of the income calculated by the Office. It seems, therefore, that weighting by means of European income distributions has only a very slight effect on the results, unless there is a deliberate departure from the income level to which this enquiry has been strictly limited. The method chosen by the Office is therefore justified on this last point also. Note on the Belation between the Index Numbers of the Cost of Housing and the Cost of Food in the Different Cities It can be seen from the preceding article that the relations between the index numbers of the cost of housing calculated by the International Labour Office are quite different from those between the index numbers of the cost of food. These divergences can be explained by two essential factors, which have been briefly alluded to in the foregoing analysis. The first of these is a question of fact: rent restriction legislation has considerably affected the level of rents, independently of their, so to speak, natural tendency to move more slowly than prices in general. The second factor has its origin in a question of method. In the matter of food, the comparisons have been applied to a fairly large number of articles, thus making it possible to use the"ideal " formula; it has also been seen that the results obtained differed very little whether the weights were based on a higher or lower national standard of living. In the matter of housing, where the consumer uses only a 244 ANNEX IV single article (a dwelling), the comparisons have been applied only to a type of dwelling of specified size (4-5 rooms), though with some differentiation as to quality (lower limit and upper limit). This method provides no possibility of compensation in the average of several articles; it also makes less allowance for the consumption customs of each country than does the method adopted for food; and the greater the difference between the fixed standard adopted for the comparison and the prevailing standard in the town considered, the more important will be the latter point and the greater its effect on the index number of the cost of housing. Thus in towns where the standard of size adopted is definitely higher than the usual type of dwelling, the index number — other things being equal, and solely for this reason of method — will tend to be relatively high, since in this town the larger dwellings will be relatively dearer (even the rent per room), either because they are rarer, or because they belong to a higher level of comfort. It is in order to show in broad lines the effect of these two factors that table XV has been compiled, in so far as data were available for the towns covered by the Office enquiry. TABLE XV. RELATION B E T W E E N T H E I N D E X N U M B E R S O F T H E COST O F H O U S I N G A N D O F F O O D , ACCORDING TO T H E CALCULATIONS O F T H E INTERNATIONAL LABOUR OFFICE AND T H E NATIONAL COST-OF-LIVING I N D E X NUMBERS AND THE PREVAILING T Y P E OF D W E L L I N G National cost-ofliving index n u m bers (base : N u m b e r ol rooms pre-war = 100) in prevailing t y p e of dwelling in t h e town as a whole Index of the cost of R e n t index in (as given b y l a s t housing per cent. J a n . 1931 per cent. housing census) of corresponding of corresponding index of the cost index of food prices of food (2) | (3) W I.L.O. index n u m bers (base: Detroit = 100) Town (1) (a) Helsinki . Stockholm Copenhagen Berlin . . Frankfort. Paris . . Marseilles . Antwerp . Rotterdam Manchester Cork . . . Warsaw. . . . . . . . . . . . . — — 75 80 71 49 47 46 54 50 — 94 (b) 152 124 114 109 97 79 74 68 68 55 52 — 163 155 1571 991 99 ! 54 72 113» 861 53 1 2 2 3 4 2 3 2 2 4-5 2 (-4) 1 (a) Ratios based on t h e index of t h e cost of housing tor t h e lower limit (dwelling of 4-5 rooms of t h e standard of comfort, etc., customary in t h e town considered). (¡>) Ratios based on t h e index of t h e cost of housing for t h e upper limit (dwelling of 4-5 rooms of t h e same standard of comfort, etc., as t h a t of Detroit). 1 Index numbers relating t o a certain n u m b e r of towns in t h e country considered. Column (2) shows for each town the relation between the index numbers of the cost of housing and of the cost of food as calculated FURTHER OBSERVATIONS 245 by the Office with Detroit as base ( = 100) ; it may be noted that the absolute value of these ratios has no importance here, since it is partly the result of the relation between the costs of housing and of food in Detroit (the base of the two index numbers which are being compared) ; it is only their relative value that is of interest. The figures in column (3) are similar, but denote the ratio between the index numbers for January 1931 of rent and of food prices taken from the official cost-of-living index numbers with a pre-war base. These ratios may be interpreted as giving a measure (obviously only approximate) of the effect of rent restriction legislation on the level of rents, a ratio below 100 denoting that rents have increased less than food prices since before the war, when there were no such restrictions. This interpretation is evidently subject to two important reserves: first, that in these ratios no account is taken of pre-war differences (which presumably existed) between the level of rents and that of food prices in the various countries; secondly, that the methods of compiling index numbers of rents and of prices differ widely from country to country (in particular, the proportion allowed for uncontrolled rents is not the same everywhere), and that for some countries the only index numbers available refer to a large number of localities and not solely to the town considered. Column (4) shows the number of rooms in the prevailing type of dwelling in the towns considered, according to the most recent census data available. With all due reserves as to differences in the methods of compilation of these statistics and the rather old dates to which they refer, the figures give an approximate idea of the difference between the size of dwelling adopted in calculating the Office's index numbers and the most usual type in each town; that is to say, they give a rough measure of the amount by which the actual level of the index number, for the reasons indicated above, has been affected by the adoption of this standard of size. Several interesting remarks may be made on this table. Helsinki, Stockholm and Copenhagen have the highest figures in columns (2) and (3). In these towns all control of rents was in fact abolished some years ago, and in addition the prevailing type of dwelling is definitely inferior to that adopted for the Office's comparisons. In both respects Helsinki holds an extreme position. In Berlin and Frankfort, where rent restrictions have reduced rents to the same level as prices, as is shown by the national index numbers in column (3), the ratio of the cost of housing to the cost of food (column (2)) is fairly high; this is probably due to the fact that the type of dwelling adopted for the comparisons is also slightly superior to the prevailing type (column (4) ) ; in Frankfort, where the difference between the standards is less, the figure in column (2) is lower. In France, the rent control measures still in force have kept rents at an artificially low level, as is shown by columns (2) and (3). In column (3), however, the Marseilles ratio seems to indicate that control has allowed rents to rise a little more there than in Paris, while there is hardly any difference between the Office's index numbers in column (2); this may be because the prevailing type of dwelling is farther in Paris from that adopted for calculating the index numbers than it is in Marseilles. 246 ANNEX IV In Manchester, rents are still very largely controlled, although in Great Britain as a whole they have risen more than food prices, as is shown by the figure in column (3). The figures in column (2) are rather low, no doubt largely because the type of dwelling adopted in the Office's comparisons is approximately the same as the prevailing type in Manchester, so that the question of method explained above does not here come into play to raise the index number, as it does for some of the other towns. In Cork matters are somewhat similar. In fact, although strictly speaking the prevailing type of dwelling consists of 2 rooms, 4-room dwellings form a sufficiently large proportion (about one-fourth) of the total to have a perceptible effect on the index numbers of the cost of housing. A still high degree of control, as shown by column (3), is therefore represented by a rather low figure in column (2). In Warsaw, vice versa, the figure in column (2) is high while that in column (3) is rather low, owing to the severe restrictions on rent that are still in force. The difference is however explained by the fact that the type of dwelling adopted by the Office is far superior to the prevailing type (column (4)) and is also partly unaffected by the restrictions expressed by the figure in column (3). These few observations suggested by table XV are naturally not absolute. They have however a genuine interest; they show, in fact, that there is a reasonable explanation of the noticeable discrepancies between the ratios of the index numbers of the cost of housing and of food in the different towns as calculated by the Office, when they are subjected to a critical analysis based on facts and starting from a different standpoint from that adopted in compiling them. These explanations have no doubt consisted partly in merely verifying how far the limitations theoretically imposed on the calculations are in reality of importance. But in statistics such a process constitutes a supplementary safeguard and denotes a further step towards possible improvements in the methods adopted. ANNEX V Tables of American Currency, Weights and Measures expressed in Terms of European Units A. — CURRENCY (JANUARY National currency in terms of cents Dollar in terms of national currency City Antwerp . . 1 dollar = 35.97 francs Barcelona . = 9.62 pesetas21 SJ • , = 9.32 „ Berlin . . . , = 4.20 Reichsm. Copenhagen. , = 3.73 kroner Cork. . . . , = 49.3 pence Frankfurt . = 4.20 Reichsm. Helsinki . . = 39.68 marks Istanbul . . = 2.123 pounds 1 Manchester. , = 49.3 pence Marseilles . = 25.51 francs Paris . . . , = 25.51 francs Rotterdam . , = 2.49 florins Stockholm . , = 3 . 7 3 kronor Warsaw . . = 8.91 zloty 1 B. — 1 1 1 1 January 1931. WEIGHTS AND MEASURES lb. = 0.4536 kilogrammes U.S.gallon= 3.785 litres U.S. gallon= 0.8330 Imperial gallon cubic foot = 0.0283 cubic metres 1931) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 franc peseta „ Reichsm. krone penny Reichsm. mark pound penny franc franc florin krona zloty = = = = = = = = = = = = = = = 2.78 cents 10.40 , i 10.73 ,' 2 23.8 26.8 2.03 , 23.8 2.52 , i 47.1 2.03 , 3.92 , 3.92 , 40.2 26.8 11.22 , * September 1930. (conversions used in the enquiry) 1 kilogramme = 1 litre = 2.205 lbs. 0.2642 U.S. gallon 1 cubic metre = 35.31 cubic feet Milk: 1 litre - 1.031 kg. or 2.273 lbs. 1 U.S. quart = 0.975 kg. or 2.149 lbs. 1 Imperial quart = 1.171 kg. or 2.581 lbs. Cream: 1 litre = 0.719 kg. or 1.585 lbs. 1 U.S. quart = 0.680 kg. or 1.499 lbs. 1 Imperial quart = 0.817 kg. or 1.801 lbs. Cooking oil: 1 litre = 0.900 kg. or 1.984 lbs. 1 U.S. quart = 0.851 kg. or 1.876 lbs. 1 Imperial quart = 1.022 kg. or 2.253 lbs. Eggs: about 17.5 eggs to the kg. or 8.8 eggs to the lb. Oranges: about 6.6 oranges to the kg. or 3 oranges to the lb. Bananas: about 6.6 bananas to the kg. or 3 bananas to the lb. Lemons: about 8.8 lemons to the kg. or 4 lemons to the lb. Herrings: about 6 herrings to the kg. or 2.7 herrings to the lb. Fuel: 1 hectolitre anthracite coal = 80 kg. or 0.079 tons 1 „ coke = 60 kg. or 0.059 tons 1 „ bituminous coal = 75 kg. or 0.074 tons 1 cubic metre wood = 500 kg. or 0.492 tons