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BUSINESS REVIEW
. tailed as a result of the coal strike. The
is under way but many questions are being
coal strike is not included as a factor in
raised about possible shortages of materials
the digest because it is likely to be settled
and effects of high costs. A pickup in fac-
5. Early reports show a decided trek to
before this issue reaches our readers-and
tory building had been expected in the
Washington, by manufacturers, to get in
before, industry quickly recovered as soon
first three months of 1948, but the pickup
on war contracts. A Chicago radio manu·
as the coal strike was settled. At the mo-
did not mature. Factory building is ex-
facturer reportedly was among the early
ment, the coal strike is having a decisive
pected to level off for the year. Other com-
firms to get a contract. The airplane in-
effect on the business of the nation.
mercial building has picked up from the
dustry is receiving the most stimulation,
Conditions are expected to add to trend . Dec. and Jan. decline. Road building is
but full results of the planning and con- toward higher prices of new cars. Prices
in the headlines now, with surveys showing
tracts are e~per.ted to show up early next
of used cars in the big cities have already
the new construction is not offsetting mile-
year_
made big advances. Need for metals in
age worn ou t. Road building is still held
6. Ugly reports are also developing. A
the war program may reduce car output
as a backlog against unemployment.
reliable Chicago report indicates that spec-
later in the year.
CROP REPORTS-Official reports have
ulators are already active in' buying up
BAN~S-The March 15 income tax pe-
been generally favorable thus far and acre-
goods and materials on which shortages
riod put a burden on banks genef'ally and
age for all crops will be about equal to
are expected to develop later.
the Treasury Dept. took steps to slow up
last year. Reports suggest a bumper crop
7. War plans will grow in intensity as
the
drain
of
tax
money.
Most
bank
activi-
of winter wheat and that is very encourag-
an issue in the presidential campaign and
ties showed declines in April; demand de-
ing. Crop reports of real significance will
what course public opinion will take can-
posits show a downward trend. Official
not be available until June.
not be foretold. Mass psychology makes a
reports on interest rates showed a major .
complete shift about every six months, so
E MPL OYMENT-Reports of layoffs and
increase in rates on bank loans for the first
unemployment were beginning to pile up
there's time for a big change by Novem-
quarter.
fast, by March 1, and then the injection
ber.
B USI NE SS FIRMS- The year started
As to the actual prospect of war, the
of war plans changed the picture. Many
off
with
a
decline
in
rate
of
new
firms
U. S. is already deeply involved in the
factory adjustments are still taking place,
coming
into
the
business
picture;
February
skirmishes in China and Greece and can't
but most recent reports call attention to
showed a sharp drop from January, but
pull out without losing face; and our ally,
shortages, or prospective shortages of
this
is
the
usual
seasonal
course;
new
Britain, is involved in Palestine. So, that
skilled labor in many industries. Strikes
business firms in Feb., however, were well
makes shooting already on three fronts.
added much to unemployment figures but
below the figure a year previous. New
As to prospect of war with Russia on a
these are considered as temporary. The
firms for the first two months in 1948 to-
big scale, it is well to keep in mind that,
new stimulation given to many industries
taled 18,873; for the first two months of
before we became so agitated against Rus-
by war plans is expected to take care of
1947, it was 21,223; and in 1946 the total
employment in most trades for the remain·
sia, the experts agreed that Russia was
was 23,560 for the first two months. Busi-
not in any condition to fi/l:ht the U. S.,
der of the year.
ness failures have leveled off and have
unless it be in what is called biological
A significant factor in postwar employ-
fluctuated
only
slightly
from
week
to
week;
warfare. Some experts have guessed that
ment is the installation of automatic ma-
the
Pacific
and
Middle
Atlantic
states
have
Russia may be ahead of the U. S. in use
chinery, ranging from farms to factories.
been showing most failures.
of germs in war and that such a method
Barring the stimulation of war plans,
CREDIT-Financing for new cars is enough automatic machinery is now being
may be more deadly than atom bombs.
now showing an increase, with 15 out of
But this is a point on which the experts
installed to create one of the most serious
every 100 new cars being bought on time;
are largely guessing.
unemployment situations within five years
prewar rate was 50 to 55 per cent. T.otal
that the nation has ever known. If the war
A digest of current reports on important
consumer credit dropped in February, from
scare passes, this is something that will
factors in the business picture follows:
January, but was higher than for Feb. 1947.
demand the attention of the best brains of
ALLO CATIONS-Certain industries,are February charge accounts in stores de-
the country.
still being called to Washington to discuss
clined from January, a seasonal trend.
EXPORTS-Both Canada and Sweden,
allocations of materials; steel allocations
CO NSTRUCTION - New construction
normally good customers for coin machines,
for the freight car prO/l:ram are now get-
started during the first quarter showed im-
are still confronted with unfavorable bal·
ting under way; but allocations are now
pressive gains over 1947 and suggested that
ances of trade that tend to grow worse.
decidedly in the background due to bigger
the trend is still upward. Industrial build-
FAR MER S-Government a/l:encies esti-
problems about materials that are likely
ing started to decline last year and the
mate that farm income for the first quar-
to arise in the war program.
downward trend seems to be still under
ter gained about 3 per cent over the same
way in new factories; home building is
AUTO M OBILES-At the time of this
period in 1947. The strike in the packing
now leading the upsurge. A building boom
report, the auto industry was being . cur-
industry cut farm income to some extent
in April. April and May are regarded as
critical months because of the planting
season over much of the country. Trend in
prices for farm products is generally up-
ward.
(Contin u ed fr om P age 7)
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12
GASO LINE-A digest of reports will
be found elsewhere in this issue. War
plans may increase shortage during sum-
mer and also bring rationing. An opinion
survey for the oil industry sh ows most peo-
ple favor rationing if a shortage develops;
that a majority criticise the oil industry
for high prices and also for the big profits
made by the industry last year.
INVENTORIES-Last month the inven-
tory trend was downward; the tide has
changed some. Manufacturers' inventories
were recently reported at an all· time high.
New orders are being watched as clue to
how quickly the country reacts to the war
program; there are fears also that inven-
tory buying may get out of control. New
orders declined for many months; suggest-
ing a general attitude of caution. Industry
was still buying with caution in March but
rapid changes in buying attitude are ex-
pected now. Gray markets are expected to
increase considerably .
MANUFACTURI NG-In our last digest,
manufacturing industries were being
watched to see if the February slack could
be overcome. Most recent reports suggest
COIN MACHINE REVIEW