Coin Machine Review (& Pacific ...)
Issue: 1949 April - Page 12
BUSINESS REVIEW
(Conti nued frorn Page 7)
sumers are also very much afraid and this
feeling is increased by any ri e in unem-
ployment. The smaller centers and suburban
districts have been scared much more than
the large centers by the increase in u nem-
ployment. But there seems no way to re-
move these fears at presen t.
M~ny business leaders are trying to em-
phaSIze the props in our national picture
that help to prevent a crash, and probably
this is the best thing that can be done, for
some of these props are hold ing like Gi-
braltar.
For operators in the coin mach ine busi-
ness, one of the main questions seems to be
whether people will put more coins into
machines in times when there is a recession
or will they pu t fewer coi ns into the rna:
chine~. Man y in the. trade have long held
the VIew that the com mach ine trade is a
depression. proof business, and the present
leveli ng off in general business may test
that idea.
1~
Z'J~
FROM STOCK!
I
•
UNZEL
ushback Wire
18 or 20 Strand
68
Color Combinations
Pushback wire. for many years one of
our leadinq items. has kept pace with
the phenomenal qrowth of the coin
machine industry.
!":te wide variety of color combination,
available lends itself to devious method ..
of wirinq harness- to meet any require-
.nents of the Industry.
For the coin machine trade, the main
point to wa tch seems to be the tide in em-
ployment, whether it goes up or down. By
the time thi i ue reaches our readers, the
wave of state legislation should be almost
over, and then operators can think more
about general conditions.
A review of orne of the many reports
avai lable on various business subjects fol-
lows:
ALLO CATIONS- This subject has given
way chiefly to government stockpiling of
strategic material, and such stockpiling
will be chiefly used to prevent price breaks
in materials and to keep up employment.
AUTOM OBILES - The auto industry
must be appreciated more than ever as one
of the real props under business which has
held strongly up to now. Manufacturers
plan on another production record this
year, but expect price declines; new credit
relaxations are expected to help boost car
sales. Operators who may need trucks will
find better prices in this type of transporta-
tion, although prices on light trucks have
thus far dropped little; truck prices will
drop fas ter than car prices. The used car
market will show most of the upheaval this
year. Auto makers may turn to radically
new models later in the year,.if sales should
begin to sag; the current new models show
little change but there are said to be some
very radical new ideas held for the time
when sales really drop.
BANKS - Business loans were gaining
in February; insurance companies' and RFC
continue to increase their loans to busi-
ness, more so than banks. F inancial papers
reported that repayment of loans by small
manufacturing concerns made a good show-
ing in recent weeks.
B USI NESS F IRMS - The rate of new
firms is about 28 per cent below the same
period a year ago, and the rate of business
failures also continues to rise. Montana and
West Virginia have recently shown the best
gain in new firms; business failures have
been highe t in the Chicago, Memphis,
Carolina and ew England areas; rate of
fail ures is at highest level since 1942 but
is still not considered alarming. Opera tors
will be concerned in th ose failures which
close up locations. Business brokers report
a heavy increase in the number of restau-
rants, drug sto re and taverns for sale.
CR E DIT - The most recent news in
this field was the r"laxation in Regulation
W by the federal government; views as to
whether the move is wise or not differ
widely. It helped quickly to boost retail
and auto sales hu t the full extent is not
known at this time. Even retailers don't
agree on credi t, but the recent governmen t
move is regarded as a shot in the arm to
business.
CO NSTRUCTION - Keep in mind that
a big program of public works is still held
in the background for operation if unem-
ployment hecomes too serious. The build-
ing industry spent more money and em·
ployed more people in January than in any
January since 1939; February dropped 10
per cent below January but was 14 per cent
above a year ago. Letting of private con·
struction contracts is running about 47 per
cent above the same period a year ago-
a very good sign. State and city contracts
for public construction are up about 30
per cent over a year ago, but federal con-
tracts are about 23 per cent off from a year
ago.
EMPLO YMENT - Much space is be·
ing devoted to this important point in the
business picture; there has been a definite
and sharp rise in unemployment over the
nation and official reports on the subject
are a month or two behind actual condi-
tions. Experts say unemployment is still
well below the danger point, but the year
started off with an unfavorable trend under
way. Business leaders say it will require
mighty effort to reverse the trend.
The test on employment for the nation
is expected to come about July; by that
time the nation will know whether it is
faced with a crisis. The fir t half of 1948
brought a gradual increase in em ployment,
but the year ended on the downward side.
Population is increasing and more job
will be needed in 1949 than a year ago.
Many firms are taking on workers but the
trend in layoffs is greater. The Wall Street
Journal says March and April will show
the turning point in the employment situa-
tion, and to watch Easter trade, building
activity and hiring of farm workers in the
South for the real signs.
Many industries and plants are trying to
help by cutting the work week rather than
layoffs; big firms like Westinghouse are
COLOR-ADO
THE PELLET BOARD
Permanent Metal
*
·~tn machine service orqanizations and
distributors are invited to write for com·
plete information as to how they may
beller serve their trade by furnishinq
them with RUNZEL quality wire.
Light.Up frames
with
Replaceable Boards
Manufacturers of coin machines may
avail themselves of our enqineerinq
facilities for desiqninq correct and most
efficient wirinq harness.
WRITE. WIRE OR TELEPHONE
FOR FULL INFORMATION
Send us your specifications for
Inter-Comm Cable.
RUNZEL
Cord and Wire Co.
172 :~
\\.
'IOyrHOSE AYE.
I L I..
C HIL\(; 011.
12
*
*
"Confidentially. It Will Pay You"
*
The McNAMARA CO.
5729·31 West Lake Street
Chicago 44. Illinois
COlumbus 1·5800
COIN MACHINE REVIEW
(Conti nued frorn Page 7)
sumers are also very much afraid and this
feeling is increased by any ri e in unem-
ployment. The smaller centers and suburban
districts have been scared much more than
the large centers by the increase in u nem-
ployment. But there seems no way to re-
move these fears at presen t.
M~ny business leaders are trying to em-
phaSIze the props in our national picture
that help to prevent a crash, and probably
this is the best thing that can be done, for
some of these props are hold ing like Gi-
braltar.
For operators in the coin mach ine busi-
ness, one of the main questions seems to be
whether people will put more coins into
machines in times when there is a recession
or will they pu t fewer coi ns into the rna:
chine~. Man y in the. trade have long held
the VIew that the com mach ine trade is a
depression. proof business, and the present
leveli ng off in general business may test
that idea.
1~
Z'J~
FROM STOCK!
I
•
UNZEL
ushback Wire
18 or 20 Strand
68
Color Combinations
Pushback wire. for many years one of
our leadinq items. has kept pace with
the phenomenal qrowth of the coin
machine industry.
!":te wide variety of color combination,
available lends itself to devious method ..
of wirinq harness- to meet any require-
.nents of the Industry.
For the coin machine trade, the main
point to wa tch seems to be the tide in em-
ployment, whether it goes up or down. By
the time thi i ue reaches our readers, the
wave of state legislation should be almost
over, and then operators can think more
about general conditions.
A review of orne of the many reports
avai lable on various business subjects fol-
lows:
ALLO CATIONS- This subject has given
way chiefly to government stockpiling of
strategic material, and such stockpiling
will be chiefly used to prevent price breaks
in materials and to keep up employment.
AUTOM OBILES - The auto industry
must be appreciated more than ever as one
of the real props under business which has
held strongly up to now. Manufacturers
plan on another production record this
year, but expect price declines; new credit
relaxations are expected to help boost car
sales. Operators who may need trucks will
find better prices in this type of transporta-
tion, although prices on light trucks have
thus far dropped little; truck prices will
drop fas ter than car prices. The used car
market will show most of the upheaval this
year. Auto makers may turn to radically
new models later in the year,.if sales should
begin to sag; the current new models show
little change but there are said to be some
very radical new ideas held for the time
when sales really drop.
BANKS - Business loans were gaining
in February; insurance companies' and RFC
continue to increase their loans to busi-
ness, more so than banks. F inancial papers
reported that repayment of loans by small
manufacturing concerns made a good show-
ing in recent weeks.
B USI NESS F IRMS - The rate of new
firms is about 28 per cent below the same
period a year ago, and the rate of business
failures also continues to rise. Montana and
West Virginia have recently shown the best
gain in new firms; business failures have
been highe t in the Chicago, Memphis,
Carolina and ew England areas; rate of
fail ures is at highest level since 1942 but
is still not considered alarming. Opera tors
will be concerned in th ose failures which
close up locations. Business brokers report
a heavy increase in the number of restau-
rants, drug sto re and taverns for sale.
CR E DIT - The most recent news in
this field was the r"laxation in Regulation
W by the federal government; views as to
whether the move is wise or not differ
widely. It helped quickly to boost retail
and auto sales hu t the full extent is not
known at this time. Even retailers don't
agree on credi t, but the recent governmen t
move is regarded as a shot in the arm to
business.
CO NSTRUCTION - Keep in mind that
a big program of public works is still held
in the background for operation if unem-
ployment hecomes too serious. The build-
ing industry spent more money and em·
ployed more people in January than in any
January since 1939; February dropped 10
per cent below January but was 14 per cent
above a year ago. Letting of private con·
struction contracts is running about 47 per
cent above the same period a year ago-
a very good sign. State and city contracts
for public construction are up about 30
per cent over a year ago, but federal con-
tracts are about 23 per cent off from a year
ago.
EMPLO YMENT - Much space is be·
ing devoted to this important point in the
business picture; there has been a definite
and sharp rise in unemployment over the
nation and official reports on the subject
are a month or two behind actual condi-
tions. Experts say unemployment is still
well below the danger point, but the year
started off with an unfavorable trend under
way. Business leaders say it will require
mighty effort to reverse the trend.
The test on employment for the nation
is expected to come about July; by that
time the nation will know whether it is
faced with a crisis. The fir t half of 1948
brought a gradual increase in em ployment,
but the year ended on the downward side.
Population is increasing and more job
will be needed in 1949 than a year ago.
Many firms are taking on workers but the
trend in layoffs is greater. The Wall Street
Journal says March and April will show
the turning point in the employment situa-
tion, and to watch Easter trade, building
activity and hiring of farm workers in the
South for the real signs.
Many industries and plants are trying to
help by cutting the work week rather than
layoffs; big firms like Westinghouse are
COLOR-ADO
THE PELLET BOARD
Permanent Metal
*
·~tn machine service orqanizations and
distributors are invited to write for com·
plete information as to how they may
beller serve their trade by furnishinq
them with RUNZEL quality wire.
Light.Up frames
with
Replaceable Boards
Manufacturers of coin machines may
avail themselves of our enqineerinq
facilities for desiqninq correct and most
efficient wirinq harness.
WRITE. WIRE OR TELEPHONE
FOR FULL INFORMATION
Send us your specifications for
Inter-Comm Cable.
RUNZEL
Cord and Wire Co.
172 :~
\\.
'IOyrHOSE AYE.
I L I..
C HIL\(; 011.
12
*
*
"Confidentially. It Will Pay You"
*
The McNAMARA CO.
5729·31 West Lake Street
Chicago 44. Illinois
COlumbus 1·5800
COIN MACHINE REVIEW
Future scanning projects are planned by the International Arcade Museum Library (IAML).