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1140·50 N. Kostner Ave.
CHICAGO 51. ILL.
I'
ahead of last year. Highway and street
construction is now making biggest gain.
Total construction rate for first half of the
year is about 35 per cent above the first
half of 1947 in dollar volume. Costs of con-
struction are increasing.
CROP REPORTS-The official report
recently indicated practically all crops are
growing favorably; present outlook is for
a total crop production that will be near
the peak year of 1942, if not greater. Farm
prices are still holding steady, however, and
by July 1 had almost regained the peak
level before the Feb. decline. Big crops
may start a general price decline, but this
prospect is now much less likely than had
been hoped for earlier in the year.
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EMPLOYMENT-The rising tide of em·
ployment prevents what might otherwise
be a gloomy picture; workers get fewer
hours per week and money buys much less.
But unemployment rolls show most every-
body ean get a job. Spendable income for
probably half of the population grows less
but the total number of jobs increase. Con-
struction and farm employment is rising;
factory employment began to show a defi-
nite decline in May and the July and Au-
gust closing for vacations will add to this
trend. Twenty-one industries at least have
curtailed working hours per week. Total
civilian employm ent in June reached the
figure of 61,296,000. Farm employment has
not increased to the figure of last year.
EXPORTS-The Philippines is curbing
imports of non-essential goods, symptom
of an unfavorable trend that is growing in
the Pacific area, excep t in Hawaii. The
Pacific area does not like U. S: policy in
Japan and troubles begin to brew while
U. S. concentrates on Europe. A similar
trend is shaping up in Latin America while
the U. S. concentrates on Europe, one of
the minor symptoms of which is the labor
unrest among sugar workers in Cuba.
AUGUST, 1948
EUROPEAN AID-Full swing of the
aid program and its effects on business is
yet to come. Our allies in Europe are re-
ported to be talking tough to U. S. agents,
even though they get our money. Berlin
trouble shows how easy it will be for one
of our friendly allies to stir up trouble
and get U. S. into war; people at home
have not been told the facts about the
Berlin mess. Trade in Europe is not mak-
ing the progress expected.
FREIGHT- Passenger rate increase for
eastern railroads suggests the pending plea
for higher freight rates will also be grant-
ed, by making interim raise permanent.
In two years freight rates have been boost-
ed 43 per cent. Freight rates now become
much more important to manufacturers, as
the basin g point system has been ruled
out.
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FOOD-Government reports say meat
will continue to rise in price. Roughly, groc·
ery bills are up 300 per cent from 1939, says
a national association of grocers. Roughly,
they say the average family spends one-
third of its income for groceries.
GASOLINE-No real gas shortage de-
veloped during July 4 week, so the oil in-
dustry is encouraged. A Congressional com-
mittee held hearings in Washington and
other cities recently; independents com-
plain they don't get a break; general op-
position to rationing of gasoline was shown.
Price increases are the order of the day.
At Congressional hearings, representatives
of Mo., Nebr., N. J., and S. Dak., said
they expect some gas shortage during the
summer; Ky., Md., Mich. and Wis. dealers
report gas supply is tight; Illinois dealers
also report some tightness. Average gasoline
price for the nation on June 1 was 25.8
.
cents per gallon.
GOVERNMENT MONEY-Armed Ser-
ices will place new orders for about $6,006,-
000,000 in goods witll' American firms dur-
ing the fiscal year which began July 1,
and totals will increase from year to year.
Radio industry is making biggest shift in
takin g on government orders, one firm re-
porting that 25 per cent of its production
is now for the government.
INVENTORIES - National Purchasing
Agents survey for June shows 24 per cent
of firms with higher inventories, while 60
per cent maintain them at lowest operating
levels. A prominent coin machine manu-
facturer says "all manufacturers still have
decidedly too much inventory left over
from the war." Government agencies say
manufacturers' inventory hit an all-time
high in May but firms have slowed up in
adding to stocks; retail inventories have
declined in recent months.
MATERIALS-Aluminum, steel, copper
and almost every material used by manu-
facturing industries began new advances
recently and the end is not in sight. De-
cision of U. S. Supreme Court that freight
cannot be absorbed by manufacturer is
making wide changes in price lists ; third
round of wage increases is also a fa ctor ,
even prices on plastics are now rising. There
are rumblings that part of the price increase
is unnecessary-some of it maybe aimed in
resentment at the U. S. Supreme Court.
In any case, prices on practically all basic
materials are rising fast and from a big
part of the new inflation spiral. Manufac-
turers of many products that had planned
1"0 reduce prices will now have to think
again.
MONEY-July 4 holiday week, of course,
·.boosted money in circulation; trend is gen-
erally upward and volume is about three
times prewar era. A government report
shows individuals are dipping into cash and
savings to pay :debts and live; at least,
for the first quarter of the year; cashing of
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