The Washington times., 1930-02-19
AUTO BUSINESS
HAS HIGH 1890
PROSPECTS

DETROIT, Mich, Feb. 19-
The Nations 1880 business activ-
ity will aid tn automobile dealer
by pursuing very much the same
path which car sales are expected
to follow, according to B. H. Cram
president Of Grams AVtomotive
= Reports. Incorporated. industry
authority.
While an analysis of the cur
rent national business situation
offers little from which the
dealer can obtain encouragement,
the prospect for the future trend
indicates that by t, time auto
mobile buying and production at
tain their peaf conditions will
have reached height sufficient
to act as a favorable influence.
Farm and City
The forming of this prospect
takes into consideration the prin-
cipal business factors which the
trend of automobile buying.
analysis their present status and
determines as far as possible
what will be their reaction to
various influences which may be
encountered during the year. 1t
is conceded that the trend OF
automobile production and con.
sumption in 1880 mcy be outlined
fairly accurately. An understand
ing of the business conditions
which will exist e. ing their
peak period therefore may be
arrived at.
Obviously, for this purpose the
domestic markets for automobiles
may be divided into two main
sections-the industrial demand
end the agricultural demand.
AS regards industrial demand,
there is to be considered the I'M.
aAediate field and outlook for the
products manufactured, while the
agricultural market also is SUBJ
ject to the, fluctuations Of its Var1'
Gus activities.
Output High
Considering the trend of the
industrial market, the automoblle
dealer probably will find less to
aid him than he will in the buy
ing by the agricultural field.
That is, the market will not at
tain the levels which it reached
in 1929. At present steel output,
automobile production and freight
car loading have an upward
trend, but this movement is very
gradual when compared with the
same period last year.
Determining the prospect Tor
She agricultural market is more
difficult, depending as it does
upon the development of condl-
tions which are more or less
Droblematical. Current agrlcul'
tural conditions are spotty, the
result principally of seasonal in
fluences. Citrus crops in the ez-
treme South and others which
are flourishing at this season
have been satisfactory. Prospects
for 1880 are at least average, but
no unusual expansion of trade
can be expected. Operations in
1929 were not as extensive as in
the previous year, but the current
years production should be close
to the 1929 volume.
Gains on Farms
In 1929 farm products gained
some by their own strength but
more by the increase of the
purchasing power of farm pro-
ducts over other products. Also
the tendency of production costs
has been downward induced by
the more general use of improved
machinery. On the whole a bet
ter relationship between agricul-
ture and industries is being
achieved by natural adjustments.
For the past three months,
taking the country as a whole,
money has been slightly stringent.
In few sections it has been
severely so, while others have
maintained about normal condi-
tionS. The current trend is to.
ward greater eaSineSs in the
majority of sections, however
and by the time automobile buy.
ing attainS its peak there should
be adequate funds available to
stimulate purchases.
With the general business re.
.covery almost certain to be
gradual, it may be seen, there
fore, how the principal factors
affecting automobile buying will
be most favorable at the time
most desirable by the dealers.
Industrial and agricultural activity
will be close to their years peak
IN June and July, the period
when automobile sales are ex.
pected to be of greatest volume
To this extent then, business
will help the dealer in 1890.