BUSINESS REVIEW
(Continued from Page 7)
Government spending still goes ahead,
and consumers have not cut spending to
the extent that had been expected, with so
much talk of recession. The public becam e
cautious many months ago, but total con-
sumer spending is still at a very high level
and seems likely to continue high, or until
shorter work weeks and smaller payrolls
force people to reduce their spending.
Business firms are buying much less and
the reason given is that they are waiting
for still lower prices on materials and sup-
plies. Vending machine operators perhap
have noticed that in our monthly reports
on chocolate, peanuts, sugar, etc., this pub-
lication has mentioned that manufacturers
of candy have been reported for many
months as resi s tin~ high prices on these
ingredients.
Well, this condition seems to hold
throughout a 11 business. There is more of
a buyer's strike, more resistance to high
prices among business firms now than
among the masses of the people. Actually,
it seems to be a waiting for prices to reach
a lower level before normal buying is done_
The big buyers are holding off.
A review of some of the many reports
on business conditions follows:
AUTOMOBILES- The auto and steel
industries, because of their size, are still
counted on to do much in helping to keep
business at a high level. The auto industry
has had some interruptions recently and
some reports say it is likely to slow up dur-
ing the third quarter. New 1950 models
will revive the trade for the last quarter of
the year. The outlook is also that manu-
facturers may follow a program of reduced
production later in the year.
While operators do not major in use of
trucks, yet high production of trucks and
truck-trailers has brought good price re-
ductions on this type of transportation.
BANKS-Business loans continue to de-
cline, but a hank trade paper says bank-
ers are not worried. They consider the
trend a normal adjustment. Old loans are
being paid off at a faster rate. Banks, in-
surance companies and the government now
compete in making business loans, with the
government gaining in importance.
Above photo taken recently at Bally Mfg. Co. plant, Chicago, shows a portion of
line from which Bally's new Champion one-ball games are rolling at rapidly
Increased rate.
~JSsembly
Bank deposits, savings accounts, etc.,
still show staggerin g sums of money avail-
able_ Th ere are declines in money in cir-
culation, in checking accounts, etc., but
they are relatively small and the total
amounts of available money are at such
high figures that it goes without saying
there is no shortage of money. Personal
in comes have declined considerably since
Jan. 1, of course, and the heaviest decline
has been in factory wages.
BUSINESS FIRMS - About 200 firms
are failing each week, according to Dun &
Bradstreet, and the rate continues to climb.
The' April total was twice that of a year
ago. The total may reach 10,000 failures
this year. In the prosperous '20s the aver-
age rate of failures was more than 20,000
firms a year; in 1939 more than 15,000 fail-
ures were reported. In the '20s the rate of
failure was about one firm in every 100;
the annual average rate now is one firm in
every 300.
The area of Illinois, Wisconsin, Indiana
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and Ohio seems to lead in failure increases,
while the Rocky Mountain states have the
smallest rate. Increase in failures is show-
ing up among candy manufacturers, garages
and filling stations. The retail store field
generally is leading in failures.
CONSTRUCTION-As previously men-
tioned, construction holds the key to how
much recession we may have. Government
reports show residential construction tak-
ing a heavy drop in May, hut total con-
struction of all kinds began its seasonal
gains in that month and was slightly above
the level a year ago.
But operators will be concerned by the
fact that industrial buildin/!: for the first
five months of the year fell 20 per cent
below the same months in 1948, building of
stores, restaurants, garages, etc., dropped
16 per cent below the same period a year
ago. It is this decline in business construc-
tion that is hurting general business and
also may hurt operators. Building of hos-
pitals, schools and institutions is still gain-
ing.
CROP REPORTS-Reports on major
crops indicate big surpluses for the year,
Mr. EmplDyer:
Wby do you not give your em-
ployees the consideration they de-
serve, since it costs you nothing?
The 196 State Unemplorment deduction
ch.t you take from chelr .. I.rles .nd
lend to the State does not buy them
as much unemp10rment DiNbllity Bene-
6t as you can obtain by purchasina a
regular insurance plan with • Pri".te
Insurance Carrier.
This is not sales talk, but • fact_ince
the law prOT ides ch.t no prrnte intur-
ance company plan complies with the
I .... unless it gives b.llw Iwol.&liotl th.n
the state III lb. slim. coot.
The Association and Group In,urance
Bureau ... ill al.dly assist you to make
the change over ,",ilbo .. ' charge by tele-
phoning them or dropping them a note
at
ZEIGLER INS. AGENCY, Inc.
541 South SprlBg Street
Los AIIgeles. Callf.
Michigan 0961
ALL INSURANCE aDd BOND LINES
12
COIN MACHINE REVIEW