Music Trade Review

Issue: 1951 Vol. 110 N. 9

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
The i M
/msic
REVIEW
Established 1879
CARLETON CHACE, Editor
Alex H. Kolbe, Publisher
MCMiEl Of
V. T. Costello
Associate Editor
NATIONAL
ASSOCIATION
OF MUSIC
MERCHANTS
Alexander Hart
Technical Editor
THE POOREST
CHILD IS RICH
WI1H MUSICAL
58 Per Cent or What?
Mary Louise Kauffman
Circulation Manager
Published monthly at 510 RKO Building, Radio
City, 1270 Sixth Avenue, New York 20, N. Y.
Telephones: Circle 7-5842-5843-5844
Vol. 110
SEPTEMBER, 1951
Business—As We See
a
No. 9
It
N this issue we are printing the five-year report of
Dr. Raymond Burrows, who during that period was
chairman of the Piano Instruction Committee of
the Music Educators National Conference. We have
also followed this up with a digest of some of the reports
of the regional chairmen. Due to
the progress which has been made
during the last five years in estab-
lishing group piano lessons in the
public and parochial schools, we
feel that both of these stories should
prove very enlightening to our
readers, many of whom, we believe,
do not realize the splendid progress
which has been made for their bene-
fit in establishing a method of crea-
ting piano sales, which should en-
CARLETON CHACE
dure from generation to genera-
tion. Although Dr. Burrows has now retired from
the committee and returned to his teaching at Teachers
College, Columbia University, he still has been retained
in an advisory capacity, and although he may not do a
10
tremendous amount of field work which he did during
the past five years, his advice and his genuine interest
in the project will prove invaluable. In the meantime,
piano workshops similar to those which have been so
successful in the past, will be carried on under the
auspices of the American Music Conference, the moving
spirit of which is now Dr. John C. Kendal, who has been
a most sincere advocate of group piano lessons for a
great many years. Under his expert guidance, and with
the moral support as well as intellectual thinking of
Dr. Burrows, we are confident that the next five years
will show continued progress in the establishing of this
project in greater areas. It must be remembered by
dealers, however, that it cannot be carried on solely by
the American Music Conference and its field directors,
but they must have the wholehearted support of the
retailer and all the retailers in the districts where the
pianoworkshops are to be held. As we have said before,
there is or has been no more of a forceful promotion to
create piano sales from generation to generation than
the establishing of these group piano lessons.
N September 5th the newspapers published stories
regarding the fact that the government had
ordered new cuts in the production of auto-
mobiles, TV sets, refrigerators and "other durable
goods" to conserve metals for the defense program. The
stories stated that the order covering the 3-month period
beginning October 1st was already in the works before
the copper strike began. According to the newspapers,
the supplies of carbon steel for most civilian goods were
ordered cut from 70% to 5 8 % of the pre-Korean war
use. Copper use for consumer durables was reduced
from 6 0 % to 5 4 % and aluminum from 5 0 % to
4 6 % . J. V. Sill, President of the National Piano Manu-
facturers Association, recently pointed this out to the
members of the association in a letter in which he stated
that 5 8 % of the steel used during the base period could
only be used in the fourth quarter of this year. While
suggesting several ideas regarding substitutions, he also
called for suggestions from the members. Piano manu-
facturers as a whole, however, are quite confused.
Although they feel that the order calling for a cut in
steel, copper and aluminum, pianos, although not men-
tioned, are naturally included in the expression "other
durable goods," there has been no order received directly
from a government agency. In the meantime, in order
to clarify matters, it is expected that officials of the asso-
ciation will confer with government officials with a pos-
sibility of a meeting of the Music Industry Advisory
Committee with them also. When this happens let us hope
the situation will be found less severe than it appears.
THE MUSIC TRADE REVIEW, SEPTEMBER, 1951
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
Inflation
Chart Shows New Causes
(Continued from Page 9)
The accompanying chart throws a
revealing light on this new cause of in-
flation. The statistics from which this
chart was prepared are all from Federal
government sources. There is nothing
new on this chart except that related
facts are brought together so that any
one can see not only that they are re-
lated, but also how closely they are
related.
There are on this chart three major
significant graphs showing the trends,
respectively, from 1939 down to the
early part of this year, of "Average
Hourly Factory Wage Rates"; "Con-
2. Our government's deficit spendings
over a long period of years has not
merely increased the public debt, the
payments of interest and of principal,
but has also had the effect, to some ex-
tent, of shaking the confidence of the
people in the government's securities. A
firm policy of a balanced budget, a pay-
as-you-go fiscal plan, would promptly
correct this lack of confidence in the
government's obligations.
3. Credit, particularly bank credit, has
been over-extended for speculative rather
than for productive purposes. This has
also added greatly to the money supply
of the country. The U. S. Treasury De-
partment's policy of forcing the Federal
Reserve System and its member banks
to purchase bonds, which are, in turn,
used as legal reserves against which bank
credits may be extended on the average
of five or six times, is, of course, highly
inflationary. The government's method
of getting funds by unloading its bonds
on the banks has made the banks, even
against their better judgment, advocates
and agencies of further inflation. The
sale of government bonds to banks
should be sharply restricted and the
extension of credits by banks except for
purposes of defense production and for
purposes of increasing civilian produc-
tivity should be checked.
4. The farm parity price system con-
tributes to inflation. Farmers can not be
blamed for seeking parity prices if the
outlook is for more inflation. Parity
prices assure farmers increasing dollar
revenues as the prices of the goods they
buy rise. In the meantime, the costs and
the prices of the products that farmers
sell continue to rise. This is inflation and
needs to be stopped.
5. Wage increases unaccompanied by
increases in productivity constitute a
very substantial cause of inflation.
Most students of inflation have con-
sidered only modifications of govern-
mental fiscal and monetary policies, as
remedies, just as if these corrections
would be all that is needed. Sound fiscal
and monetary policies are certainly es-
sential, but in this inflation they will not
prove sufficient. There is a new factor in
the present inflation that was not a part
of former inflations, namely, excessive
increases in money wages unaccom-
panied by increases in productivity.
Monetary and fiscal policies have little
or nothing to do with this cause of infla-
tion. Other specific remedies must be
found and applied to stop this overflow
of money in the form of unearned, un-
economic and unsound wage rates.
THE MUSIC TRADE REVIEW, SEPTEMBER, 1951
sumers' Prices"; and "Actual Factory
Output per Man-Hour".
The information presented in the
graphs showing the trends of "Average
Hourly Factory Wage", and of "Con-
sumers' Prices", come directly from the
statistics compiled and published by the
Bureau of Labor Statistics. The graph
showing the trends of "Actual Factory
Output Per Man-Hour" is computed
from the Index of Factory Production
compiled by the Federal Reserve Board.
In the preparation of these graphs all
figures have been computed to begin
with the average of 1939—100. All three
graphs are considered as starting to-
gether at the same level in 1939. By this
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11

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