the voluntary agreements plan; government
agencies concerned with defense are in-
sisting more that stockpiling of strategic
materials take precedent over oivilian needs.
AUTO MOB ILES-Demand has slumped
and reliable reports from the large cities
say immediate delivery can be had on a
number of models of most makes of cars;
people in the auto trade predict that im-
mediate delivery on nearly all makes will
be the rule in another six months. The
auto trade is arguing the reasons for the
slump in demand, and a Wall Street Journal
survey turns up one good answer: "Cars
are just too darn expensive; prices will
just have to come down."
BANKS - Business loans dipped lower
in January than in any time in the previous
year and recovery in rate has been only
partial; demand deposits are below a month
ago, but well above the 1941 level; money
in circulation is showing a declining trend
-for the first time in ten years. Money
now turns over faster but total amount in
use is declining. Savings accounts tend to
. show some gains but people are spending
less freely.
B USINESS FIR MS - A seasonal rise
in new incorporations occurred in Decem-
ber, according to Dun & Bradstreet, but
the volume of new firms had continued for
12 months below that of a year ago. New
stock corporations reported in December
totaled 7,421; total for 1948 was 96,101. A
steady decline in rate of new firms has
taken place since 1946.
Business failures were showing a slight
decline in rate at the end of January; the
rate is well above that of the same period
in 1947 but still much below the prewar
rate. Steady climb of business failures is
given as big reason for tightening of credit;
collections are slowing. Failing firms are
said to leave few assets, since banks and
finance companies have been making loans
on accounts receivable.
A special review on credit in Business
Week magazine (Jan. 29) said that "sev-
eral areas report trouble in the vending
machine business." Apparently, this would
refer to the coin machine business as a
whole, and not to the vending machine
division alone. The candy trade is also
men tioned as among the sore spots in the
credit. situation.
EMP L O YMENT - Operators of vendors
will be concerned by. the official govern-
ment report that factory employment has
been declining since last ' September; post-
war peak of factory workers stood then at
16,700,000; auto industry is about the only
field to report recent increases in workers.
Nevada and New Mexico have shown the
highest ratio of gains in factory jobs since
1940; other states with a high ratio of in-
crease are Arizona, California, Kansas,
Minnesota, and Texas.
\
One reporting agency summarizes the
employment picture thus: work weeks are
shorter in many industries; unemployment
apparently is to go on rising slowly for a
time; layoffs are tending to spread; . new
jobs are opening more slowly; few indus-
tries are adding to pay rolls at this time;
many industries are cutting down here and
there in a small way; unemployment is not
expected to rise greatly.
EXPORTS-Government report on 1948
exports of coin machines was not available
in time for this review. Visitors from nine
or ten foreign countries, chiefly South
America, were present at the 1949 Coin
Machine Show, indicating there is still a
market abroad. Eight of the 20 countries
in S. A. had revolutions in the 'last year,
an unfavorable situation. Arizona firms are
increasing their trade across the border
with Mexico.
F R E I GHT - Increased freight rates' are
mentioned as one of the real obstacles in
the way of lowering prices. The U. S.
Supreme Court has agreed to hear an ap-
peal on the basing point freight rate policy,
and will thus hand down a second decision
on this touchy question. It was the high
court's decision in May a year ago that
touched off the subject.
The ICC recently turned down petition
of motor carriers for a regional freight in-
crease on small shipments. This greatly
pleased candy and cigarette trade.
Hearing dates on the railroads' petition
for a full 13 per cent increase in freight
rates have been set as follows: Washing-
ton, D. C., beginning March 1; Chicago,
March 14; Salt Lake City and Montgomery,
Ala., March 21; Oklahoma City and San
Francisco, March 28.
GAS OLINE - Demand for gasoline was
still rising in December and January, but
the oil industry had kept pace with de-
mand so well that talk of allocations has
been shelved. The average service station
price of gasoline was rising during Decem-
ber, the last official report available.
GO VER NMENT MO NEY-;-Recent cuts
in Navy forces caused a lot of business
firms to think about what .government
money means; approach of Income tax
deadline makes millions of ordinary citi-
zens think also. With the country now '
"leveling off" but trying to prevent depres-
sion, government money is playing a bi'g
part. As reported in our last issue, govern-
ment subsidy to business for materials and
supplies will run about $32,000,000,000 this
year, about $17,000,000,000 will be paid to
individuals, and parity support to farmers
will run about $2,000,000,000 for the next
two years.
The foreign aid program is shifting to
Asia, and will cost tax payers much more.
There is much fear at this time that the
Berlin blockade will be lifted, to remove
the enthusiasm from' our national defense
program.
MONEY - With prices tending to de-
cline, the experts are revaluing money.
Roughly, the dollar has gone up about one
cent in buying power since last August; in
that month the dollar bought 57.3 cents
worth of goods in terms of the 1939 dollar.
PROD UCTION - There seems to be
general agreement that factory output for
the nation has declined; how much is a
point in question. Supply channels in many
industries have been filled and demand is
slower. The big problem that comes to
every industry, and to each manufacturer
now, is how to adjust output to demand.
This is a sore spot in all business now and
is likely to be a tough problem for some
time.
Steel and automobile output will prob-
ably lead the parade of production this
year; the building industry is now showing
spotty trends and output of building ma-
terials is declining.
Operators of coin machines will be in-
terested in the problem of controlling pro-
duction to· prevent crashes in prices. For
example, the oil industry seriously consid-
ers limiting production in order to prevent
price competition. The whole price situa-
tion reacts quickly on factory output and
production, and much will be said pro and
con on the subject as industry after indus-
try is forced to adjust itself to demand this
year.
PROFIT S-Reports during recent weeks
have chiefly related to the profit and divi-
dend picture in 1948; annual reports of
corporations have been coming out fast to
provide information. One summary says big
OPERATORS ALL AGREE--
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