Coin Machine Review (& Pacific ...)

teginning to report ' slower payments on
installment sales. Sales of TV sets and
autos swell the credit volume.
CONSTRUCTION-The government has
moved to boost an already high level of
business in the construction field. If new
building held up business in 1949, it will
certainly add more props than ever in
1950. Home building is boosting the price
of many materials and there is little hope
now for cheaper materials to make coin
machines this year.
Open itors are most interested in new
business building. For the first four months
of this year the rate in this field was 30
per cent behind the like period in 1949.
But the fact that business optimism has
improved this year is 'beginning to show
in new business building plans; most reo
cent reports show that new factories and
stores will begin to go up. New business
buildin g is expected to show up better in
the last half of the year. Banks report that
construction loans which had dropped con·
siderably are now making good gains.
CROP REPORTS- From now until Sep·
tember crop reports grow more important.
The earlier reports for the year were un·
favorable and started commodity pri ces to
rising ; the farm price level rose by 2 per
cent from March 15 to April 15. The latest
reports avail able for this review show a
general improvement and th e 'outlook is still
for bumper crops on most items.
EMPLOYMENT - Official reports t e·
vealed good improvement in the total em·
ployment picture durin g March and April ;
the postwar high for the unemployment
total was apparently reached in F ebruary
of this year. The in creases in business a c·
tivity now being reported should continue
to improve the employment picture for
some months; however, July and the sum·
mer lull is just ahead. The building boom
is given credit for leading the gain s made
early in the year and thi s boom promises
to gain durin g th e year.
It must be kept in mind all th e while,
of course, th at total employment is not
making gains in keeping with population
gains and the greatly increased production
ca pacity of the country. Industries now
close down rather than over· produce and
this becomes a real problem in the em·
ployment picture.
EXPORTS-Th e year started off with
exports a t a new low, but recent reports
from such co untries as South Africa, Can·
ada and some South Ameri ca n countries
promise more ex port trade as the year goes
on.
GOVERNMENT MONEY- The new shot
in the arm of government money for the
buildin g boom, and wh at the buildin g
bo om is doin g for bus iness, adds more
deba te on the subj ect of governm ent money
and how far a nation can go in using it.
Much of the debate in Con gress also reo
lates to boostin g government money out·
lays fo r defense, and defense spending
helps business.
copper, celloph ane, some grad es of lumber.
and steel of course is generally on th e
criti cal list. However, the steel industry i ~
fa st catching u p with demand ; gray ma r·
kets h ave bee n re ported in steel, buyers
paying 30 to 50 per cent above m ill quota·
tion s.
PROFITS-The general trend in profits
is conside red more fa vora bl e than the last
half of 1949. Dividend payments in March ,
refl ec ting profits to som e extent, reached a
high fo. any first·quarter period sin ce 1941.
It was the cash dividend reports ea rly in
th e year tha t put more optimism into th e
picture.
PRODU CTION- Produ ction activity was
rising during March and April a nd into
May. Manufacturers' new orders reached
a postwar high in March; some firm s re port
a backlog of orders to last well into the
fall. The production level in April was run·
ning at only nine points below the postwar
high reached in October and November of
1948. One reportin g age ncy said "a sub·
stantial pickup in April, with orders and
produ ction outrunning th e booming period
of last Au gust and Septem ber" has occu rred.
PRICES-The high pri ce level hold s and
a t the present tim e is creepin g upward.
Unfavorable farm weather early in the year
and th e building boom seem to be th e major
ca uses of a ny tendency to increase prices.
All manufacturing industries re port th at
costs still rise, with the exception of a few
trades that have new automati c machin ery.
Food pri ces edged slightly u pward in
March , a lth ough still below last year. Fu·
tures trad ing on commodities shows r isin g
prices. One reliable predi ction is that prices
will cree p u p during the year but th ere will
be no real upsurge. The commodity price
leve l is now 10 per ce nt below the hi gh
postwar level in 1948.
RET AIL TRAD E-Trade leaders report
INVENTORIES - Some a uthorities now
say that a good part of our present business
activity is due to bll,i ldin g up of low in·
ventories; inventori es were generally low
in March and increased buying is con·
sidered necessary fo r the next few months.
MATERIALS-As previously mentioned,
the materials picture does not promise any
chea per materials for building coin rn a·
chines this year. Some pri Ml drops on
fabri cated materi als did occur in Ap ril
but the building boom is expected to pre·
vent any real declining trend in pri ces.
Buyers r eported price advances on 23 items
in April against pri ce reductions on 14
items. Still h ard to get items are aluminum ,
JUNE, 1950
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