Evening star., 1929-12-20
SALES RESISTANCE
PILES UP BUSINESS
Industrial Leaders Prepare
for Heavy Consumer
Demand in Spring.
BY J. c. ROYLE.

Special Dispatch to The Star.
NEW YORK, December 20.-Sales
resistance, which is blocking the chan
nels of distribution in some lines is
merely piling up a flood of business
which will sweep back into the rivers of
trade this Spring. That is the unbiased
opinion of men in the leading lines of
industry today The waters are already
beginning to trickle through the cracks.
Automobile manufacturers frankly
say that sales of new cars have dropped
sharply. They add. however. that the
sales are not lost; they are merely de-
layed, and when the orders begin to
come, few manufacturers will be able
to keep up with them. They point to
the experience of one leading producer
of low-priced cars during the time
when, owing to changes of models. de-
1iveries were impossible for months.
When cars began to be delivered, how
ever, they went like the proverbial hot
cakes and the back orders served to
keep plants engaged at capacity for
months.
Prepare for Demand.
Feeling as they do the leaders in
the industry. General Motors and
Chrysler and Hudson, do not intend to
let themselves be caught without cars
to sell when the buying starts. This
GSuuSnCN Is DSltlk iClCCbSu All biiC SOCGl
industry, which is picking up through
out the Pittsburgh, Mahoning Valley
and Ohio districts. The merger of the
Ohio companies under the sway of
Cyrus S. Eaton promises to make opera
tions IN that field more economical,
while railroad buying is stabilizing con-
ditions in the Southern district, in the
Chicago district and in the intermoun-
tain and Pacific Coast plants.
cal lAax
the producers have cut output cor
respondingly. Metal men are confident
the demand will be resumed, ard when
1t is, there will be no burdenSorne ac-
cumulation of stocks to be worked off,
Lead is in strong demand, but zinc
production is still running heavy enough
to keep prices soft.
The lumber mills, especially those
of the South, are receiving an in
creased volume of orders. The gain
last week approximated 10 per cent in
the southern pine territory. Cement
mills are passing a normal amount
into consumption, but are not reducing
stocks materially and consequently are
selling at the closest possible magin
Of profit. The brick manufacturers
are somewhat similarly depressed.
Holiday Trade.
Holiday trade is Solding its own but
IS not making any gains as compared
with last week and last year. De-
partment store mergers and the, join
ing of independent units for buying
purposes, however, have made possible
operations at profit which in past
years would have shown up on the red
ink side of the ledger. The musical
instrument situation is disappointing,
and 1t has required some price reduc-
tions to stimulate radio sales. The air.
plane manufacturers are conf1ning their
efforts to engine manufacture and to
planes for replacement purposes.
The tire manufacturers, confident
that the automobile situation is going
to show decided improvement shortly,
are preparing to increase stocks and do
1t now while the crude rubber price and
supply situation is favorable. The de-
nlafid for rubber footwear and nard
rubber mechanical goods is excellent.
The leather boot and shoe industry is
not heavily engaged, but that is to be
expected at this time of the year. Ac-
tivity in the apparel trades is largely
confined to few lines in the medium
priced field.
!, Industrial activity is shown clearly
by the continuous upward curve of
electric current consumption. Require
mentS today are Is per cent ahead Of
those last year. Profits of utility con-
CCAhS dAG IIlOSJ COIIpd-
riies are plowing at least part of their
net back into the business in replace
ment of obsolete plants and extensions
of transmission and distribution lines.
This is keeping the electrical equip
n1ent manufacturers engaged at a high
rate
Gas Industry.
The gas industry is in an enviable
position. It is estimated that the gain
In consumption of gas for the full year
viii be 10 per cent as compared with
1923.
i There is a feeling in banking circles
that the worst of the check to general
business is over. The agricultural Situ-
alton has shown decided improvement,
with a. gain in crop values of approx
mately $85 900 900 over last year. The
farmers purchasing power is undam-
aged. Money is comparatively easy
Some financiers are anxious for COM
Inercial demand for funds to develop
sharply. They feel that unless this
takes place the volume of idle money
will lead to loans which will again
shove funds into the securities markets
for speculative purposes.
(CopyriEht, 1929