Coin Machine Review (& Pacific ...)

be transttlOn mon ths that will revea l what
the trends may be for the last four months
of the year. Layoffs attract mu ch attention
in areas where such things happen and
tend to di turb the public. Total unem-
ployed a of July 1 was roughly 4,000,000,
with estimate that the total wil l be 5,000,-
000 to 8,000,000 by the end of the year.
In a normal prewar year, total unemployed
reached th e 8,000,000 figure_ But the total
force of workers has been greatly increased,
the popu lation is increasing and hence un-
employment is likely to get more attention _
Many plans are said to be ready to be put
into action when the unemployment figure
passes the 5,000,000 mark, 'chiefly one of
public con truction.
Total number of people working half
time or less is increasing fast.
EXPORTS-Dollar shortages and money
troubles increase in Mexico, Sweden, South
Africa, and one of the major problems of
the U. S. will be to prevent complete col-
lapse of Britain.
EUROP E AN AID - T his factor will
playa declining part in the future business
picture, although billions will be spent on
aid and defense during the next fiscal year.
It is reported that Congress has been flooded
with complaint from manufacturing firm s
of all izes about the competition of Euro-
pean goods with products made in this
country.
FARMER S-As the recession advances,
the prices which farmers pay for manu-
fa ctured goods are higher than the prices
he gets for his prod ucts. But bumper crops
are counted on to provide plenty of money
for farmers. Government price support is
preventing a complete crash in farm prices.
For the consumer, food prices may decline
4 to 6 per cen t this year, leader predict.
Prices which farmers receive are till well
above . a profitable production ratio and
farmer show a willingness to accept lower
prices, if goods they b uy also come down.
FREI GHT-Tota! goods ca rried by rail
and truck lines is on the decline. Eastern
truck l ines were recently granted a small
rate increase by the ICC. The ICC also re-
cently took up again the plea for higher
rates on less than carload shipments, an
increase strongly opposed by the cigarette,
cigar and candy trades. Wholesalers and
retail druggi ts made chief opposition to
the basing point price (delivered price)
bill in Congressional hearings.
GASOLINE-A Senate committee began
investigating in June the rl Slng trend in
gasoline prices, hearing heads of the big
oil companies, labor leaders and al 0 users.
In May demand for ga oline wa reported
about 7 per cent ahead of May last year.
Texas and Oklahoma producers cut produc-
tion of crude oil for July and stirred up new
charges that production is being cut to
keep prices up.
GO VERNME NT M O NEY- RFC loans
for business firms are runni ng about 25
per cent higher than last year; about three-
fourths of the firm s that apply for loans
get help ; most loan are to comparatively
small firms: in it 17 years of exi tence
this government agency has shown a good
profit over and above all operating costs.
Some coin machine firms have u ed RFC
loan since the war_ More recently, bottlers
are said to be leadin g applicants for RFC
loans. Prediction is that RFC will increase
its loans to firm s that help to maintain em-
ployment. Federal payments on social se-
curity plans will amount to nearly ni ne bil-
lion dollars in 1949, while states and cities
will payout nearly three billions more.
I NVENTORIES- All industries are re-
ported to be redu cing inventories at a
faster rate than had been anticipated_ Buy-
ing of materials is said to be on a 30-day
basis generally now, much lower than six
months ago. Retailers and wholesalers fol-
low one rule-cut down inventories and
order in smaller quantity.
MAT E R IALS - In the metals field ,
manufacturers buy in smaller quantity,
awaiting further price reductions. Auto
makers report that price reduction on ma-
terials thus far have only reduced the cost
of making a car by 80 to $100.
P RODUCTION-So much is said about
plant layoffs, shorter work-weeks, etc., that
reports on production will be increasingly
important. It is generally reported that man-
hour ou tput is on an upward trend in most
industries_ A recent report shows, for ex-
ample, that the cigarette industry is main-
taining a higher output with definitely
fewer workers.
Officially, industrial output dropped about
5 per cent in May and June, reaching a
level about 13 per cent below the postwar
peak of last November. July an d August,
with many plants closing for vacations, are
expected to show further declines in pro-
duction figures. An important trade organ-
ization, including various industries in its
membership, reported that July and August
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will certainly show declines in output but
that a good fall revival will show up. Th e
organization also reported that 50 per cent
of its member firms have fewer employees
and also work shorter weeks_
PRICES - Purchasing agents for large
firm, in rece nt convention, advanced the
view that prices are not being reduced as
fast as conditions call for; too many firms
make a token reduction, they said. Real
price reductions are expected before the
year ends, hence most firms buy supplies
for 30 days or less.
Experts pred ict that retail prices will
continue to decline for many months after
raw materials have reached bottom. One
big retail leader ays prices on consumer
goods will decline for another six to twelve
month.
Business and prices are going down to-
gether. Some ay the faster the decl ine,
the more rapid the recovery. Prices, at
wholesale level, are down about 8 per
cent.
R E T AI L TRADE-Offic ial reports show
a good many variations in different types
Qf stores, but in general retail trade in
volume of goods sold is holding a much
higher level than had been an ticipated.
Department stores are generally showing
declines in dollar volume as compared with
last year-but prices are lower. Retail
trade has been watched for a sign of alarm
among the people, and trade thus far shows
that people have plenty of money and are
still buying_ Retail profits are decidedly
down, however.
T AXES-At the time this review was
prepared, Congre s had picked up the ex-
cise tax question again and predictions
were being made that most war-time ex-
cises might be repealed before Congress
adjou rns_ Purpose would be to stimulate
store trade_ Newspapers had nothing to
say about the federal excise tax on coin
machi nes.
T O URIST T RADE-Due to the impor-
tance of thi s factor during the summer
months, more detailed reports will be pub·
lished elsewhere.
WAR - As predicted in this column
many months ago, the publ ic is becoming
less and less war conscious and no longer
can be excited about the prospect of war.
A recent survey among manufacturers
shows about 70 per cent of them saying
that defen e spending meant nothing to
them. However, big defense spending will
go ahead for another year at least.
- - - - - - -. -
Long Shot Parlay
-.
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Console Distributing Co., Inc.
New Orleans 20. L. A.
3425 Metairie Road
SOUTHERN D I STRIBUTOR
L
AUGUST, 1949
FO R O RI G I NAL
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CR I SS
CROSS
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