The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-06-27
CAR SHORTAGE
EFORESEEN
MANUFACTURERS BELIEVE CUR
.TAILMENT IN PRODUCTION WILL
BECOME NECESSARY.

New York, June 26-Curtailment OF
approximately rs per cent in the seed
uled production of passenger automo-
biles will be necessary because of the
present economic conditions, it is esti
mated by manufacturers. They are
willing to cooperate to this extent to
hg4ng about the defIation OF currency
ana prices necessary to restore con-
ditions more nearly normal.
Financial and transportation diff
culties have made necessary readjust-
ment of production programs. In the
first place 1t is impossible to get to
the factories the supplies necessary to
operate as extensively as proposed
earlier in, the year. In the second
place, the decision of the Federal Re-
serve Board to hold down credits will
initiate against them.
Bankers feel that too many passen-
ger automobile are being bought on
credit and they contend that many
persons buying cars cannot actually
afford them. They also assert that a
considerable percentage of the cars in
use are nom essential. Upon this ar
gument they base their decision to cur
tail automobile credits. The manufac-
turers do not agree that passenger cars
are any less essential than telephones
or typewriters, but they are not dis
posed to assume pugnicious attitude.
They realize that drastic measures are
necessary to put the country on a
sound. economic basis. and are glad to
lend their aid.
Credit will be supplied to finance
completion Of cars now under con-
struction.
Trucks Ciassed az Essential.
The transportation crisis is more Sc
rious than the credit stringency. OPP
GRAFTON of the road has been taken
over by the Interstate Commerce Com
mission to all intents and purposes.
Every effort Is being made to untagle
the jam OF freight but 1t probably will
be weeks before 1t can be accomplished
While the commission may not promul-
gate a formal priority order for
freight shipments. the result of its eff
forts will be the same. Food and fuel
will be moved first. Trucks and trac-
tors will be placed we'll up on the list
of essential manufactured products
and passenger cars will head the list
of non essentials.
The railroads and every other ele-
kiiCAlb III luuuSliy dIO SCiZln6 CdSCLlJ
upon motor trucks as the transporta-
ton salvation OF the country. Truck
manufacturers will be given every aid
possible to exceed their production
schedules. 1t seems probable that the
men who will be laid off in the pas
senger car plants because of the cut in
truck factories.
T. It'd, xc4v raj
prepared to prove that automobiles
are transportation. They are now
trucking in most of the supplies they
they are using and are ready to go to I
almost any extreme to increase eff
cheney in this respect. Regardless of
obstacles they will keep their factories /
going. Costs of manufacture viii BET
greatly increased by the use of trucks
for hauling materials long distances,
but they are willing to sacrifice share
of the profits.
The war Department and the Coun I
Gil of National Defense have outlined
plans for the mobilization OF trucks
all over the country to help the rail-
roads and the army will distribute for
this purpose the thousands OF trucks II
owns. but is not using. Tractors and /
OLneT IndCIlH6Ty Will NC uSSa W hOOP /
the roads in repair while they are un
der such a heavy strain
Dealers as well as manufacturers
must expect to forfeit part of their
profits on passengers cars, but they
can expect a bigger truck business
than ever before. Economists. finan-
ciers and far-sighted business men are
agreed there is no occasion for alarm
If the men who make up the financial
fabric of the nation keep their heads
and face the future with calm conf 1
dence.
With the prices of commodities fall
ing all over the country. 1t is encour-
aging 20 note that there has been no
slashing in automobile prices. The
National Automobile Dealers associa-
ton has been able to find no anthem
tcated instances where this has been
done