Whatever be the points of issue between
big and little business, a period of infla-
tion and high prices seems to be on and
a lot of small business men are getting
hurt. The consumer, and especially lower
income groups, are also getting hurt. The
natural tendency is to place the chief blame
for high prices at the door of Big Busi-
ness, and as long as high prices continue
the issues between big and little business
will become more bitter.
Unfortunately, the major political parties,
whatever their platforms may be, offer the
voters little choice as to the serious issues
that divide small and big business. Voters
in the November elections will have little
to do with the battle; it will be fought
out in Congress next year.
At home in the U. S. A., the battle over
labor unions seems to be drifting into the
background while the battle between Small
Business and Big Business takes its place.
The coin machine operator has a divided
picture, in some ways profiting much from
big business, but he himself is a small
business man.
leading in the fight for small business. N a-
tional organizations of retail druggists and
grocers seem to be spearheading the fight
for small business, and some jobber's or-
ganizations are also in the fight. The new
National Assn. of Wholesalers, headed by
Joseph Kolodny, a cigarette operator, may
get into the fray. Consumer groups may
also get into the fight on the side of small
business.
The issues have recently been made red
hot by decisions of the U. S. Supreme
Court which have tended to greatly aid the
FTC in enforcing anti-trust laws against
big business firms. Accordingly, big indus-
tries are arranging to put heavy pressure
on the next Congress to curtail the powers
of FTC and to amend the anti-trust laws
in some respects. The recent Congress gave
evidence on which way the wind is blow-
ing by exempting railroads from anti-trust
Jaws.
The utilities, steel and oil industries will
playa heavy hand before the next Congress
to get their exemptions. The power com-
panies seem almost sure to gain their ends,
judging by progress of certain bills in the
last Congress.
The points of issue between big business
and small business are too many and too
complex to review here. Most people al-
ready have their own views as to what
the struggle is about and have already taken
sides. One leader in the cause of small
business says big business is getting bigger
and small business is getting smaller, and
hence something must be done for small
business. This sounds like political ha-
rangue that appears at intervals in our
national life, and whether it is true or
not, a lot Of words are going to fly on the
subject during the next few years-unless
a war should start overseas.
Statistics have been piling up in recent
, months to show that small business enter-
prise may have some just complaints. One
of the most recent reports cites that 46
firms have more than one-seventh of the
total assets of the nation. The country's
total assets are estimated at 750 billion
dollars. Many other reports being issued
by reliable agencies have pretty much
the same meaning, and the representatives
of small business will be quoting these
figures far and wide.
BUSINESS REVIEW
(Continued from page 5)
chine patrons, a lot of them are getting
pinched more 'and more by rising prices.
The fear of an eventual recession will in-
crease; maybe the party that wins the Nov-
ember election won't be so lucky, for most
people fear the adjustment downward will
come within the next four years and that
it will be tough. But that is only guessing,
even if some men high in the financial
world think it will work out that way.
The world situation, for the United
States, is growing slowly more unfavorable
and that may be the thing that brings the
final break in our prosperity, although the
European aid program at present is one of
the big props to business gains. Some of
the bad spots in the world picture are
mentioned in the paragraph on Exports.
A review of some of the many reports
on the present business picture follows:
ALLO CATIONS - Allocations are still
voluntary, but Congress in its final rush
passed a bill which permits government
allocatioRs on order. The bill was passed
to assure small manufacturers of getting
supplies of steel, etc., and while business
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has its fears, it may save smaller industries
and factories from being shut out.
AUTOMO B I LES-Demand is still much
above supply; production and also prices
are rising; output for second half is expect-
ed to set a record. New car registrations,
however, did not make the seasonal gain
in May. Summer is not far enough along
yet for probable break in used car prices;
New York City proposal to put ceiling on
used car prices shows popular feeling on
this matter.
Tucker Corp. has agreed to license its
revolutionary automatic gear shift, and this
may bring an end to many of the obstacles
put in the way of the new car. The Tucker
gear shift has 28 basic parts while other ,
automatic shifts have many hundreds.
The national convention of doctors in
Chicago recently bluntly accused auto mak·
ers of not giving enough attention to build-
ing safety features in cars-and the medics
named the danger spots that could be
remedied.
AUTO MATIC MACHINERY-Current
reports show automatic machinery as hav-
ing an effect on employment in coal min-
ing, candy production and cotton goods.
BANKS-Business loans by banks started
upward in May, but a recent report says
the trend is now indefinite. At the end of
June Dun & Bradstreet reported bank clear- '
ings on the decline, a trend that had been
under way for three months. General trend
in bank earnings has been declining since
1945. Demand deposits were declining first
week in July while time .deposits were gain-
ing. Interest rates on business loans are
rising.
B USINESS F IRMS - Business failures'
have shown a tendency to increase in recent
weeks, but the total is still much below
the 'rare before the war. Finance companies
report a number of coin machine distribu-
tors havint; to liquidate.
Many reports are being made on the
bigness of American business. ' Working
capital of U. S. firms reached a record
level of nearly 62 billion dollars in June,
a government report says. A statistical
agency says the total wealth of the U. S.
can now be placed at 650 billion dollars
while all debt totals would amount to about
540 billion dollars; in other words, the
country can still payout.
Because of the gathering war between
big business and small business, a report
that 46 corporations now have more than
one-seventh of the total business assets of
the nation will be heard when Congress
meets next year.
BUYI NG POWER - Buying power for
the masses is definitely downward. A Na-
tional City Bank report says the dollar has
lost 40 per cent of its buying power since
1940. Hourly wage rates are gaining, but
weekly pay envelopes get smaller; thus
many families have far less spending in-
come than in 1945. N. Y. Journal 0/ Com-
merce says fully half of the population
have less buying power now than last year;
government report shows a decline in 1947
as compared with 1946. Federal Reserve
Board shows 20 per cent of families had
an actual dollar decline in income in 1947.
CRED IT-Consumer credit rose 2 per
cent in May, has tripled during the ,last
two years. But grand total is not alarming.
Rate of increase would be much greater
if new cars were available in full supply.
CONSTRUCTION - Still one of the
brightest spots in the business picture, ex-
cept that factory building is declining by
the month, total down 21 per cent from last
year. In an area like Chicago, practically
all of the industrial construction is ad-
ditions to plants rather than new plants.
Commercial building - office buildings,
stores, etc.-is running about 50 per cent
COIN MACHINE REVIEW