Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-24
BANKER URGES AID
TO AUTO DEALERS
Local Agents Should Be Given
"Lift," He Says in
Letter.
BY DAVID j. WILKE,
Associated Press Stan Writer.

DETROIT, January 24.-The con-
structive forces at work to hasten the
return of normal conditions in the
automobile industry were regarded to-
day as having received unexpected i'm
petus in the suggestion of Robert o.
Lord. prominent Detroit banker that
banking institutions throughout the
country consider the necessity Of giving
local automobile dealers "a lift at this
particular juncture."
The suggestion was made in the form
of a letter to hundreds of banks in
various parts of the United States. The
letter, Just made public, was written
as Detroit's annual automobile show
opened, and was coincident with an
nouncement by the Ford Motor Co. of
a price reduction ranging from SIS to
S45 per car.
Support for Dealers.
Because it aims directly at an all
important phase of the industry-fnan-
cial support for the local dealers-Mr.
than ordinary significance. The build
ing up of merchandising outlets has
been one of the real problems of the
automobile industry. With the collapse
of the automobile market some IA
months ago not a few of the dealers
were forced out of business and the re-
building of the dealer organizations had
to be begun all over. In the face of
the poorest business conditions the in
duStry had encountered for several
years the problem was an unusually
difficult one.
Without banking support relatively
few of the local dealers can carry on.
II Is because of this fact that the in
dustrys leaders regarded Mr.. Lords
letter urging support for the retailer as
particularly significant.
In his letter he referred to the pick
up in production incident to the re-
opening of several factories after the
year end inventory shutdown. But
production is only part of the story
the marketing problem is still to be
solved" Mr.. Lord wrote. 1T strikes
me that If we bankers can help on the
merchandising end by giving local au-
tomobile dealers lift at this partic-
ular juncture, perhaps we will be able
to get some real money in circulation
once again and do something construc-
tive for the whole business situation.
Favorable Factors.
The Michigan Manufacturer and
Financial Record in its current issue
sees several factors to support the ex-
pectation of a steady improvement in
the automobile industry during coming
months.
The trade approaches the new sell
ing year with much better outlook
than it had a year ago." it says. THE
public is earning more money than it
did during the depression of last year.
More cars are actually worn out and
are economically useless than at the
beginning of any trade year in the
history of the country. The quality of
production Is improving every year,
thanks TO better mechanical resources
and organization; the prices of the cars
have been made more lenient to the
buyers, and while dollar volume of sales
may not increase from this cause, unit
volume is bound to increase.
"On the other hand there is bound to
be diminution of foreign orders for
cars made in the United States. Prac-
tically all the great American makers
| have factories in foreign countries,
either for the making of cars out OF
| hand, or for the asSemblage OF American
made parts. This condition was bound
TO come as the result Of the institution
J OF new or enlarged protective tariff
| systems. A country which, like the
United States. has built up its industries
under protective system, cannot hold
| 1T TO be an unfri- ndly act II foreign
nation tears a page out OF our book
| and applies the parallels contained IN
] its lines to its own economic upbuilding
THE motor car trade of the United
States registered unit production dur
ing 1880 % about 50 per cent Of that OF
It's higheS& previous year. which VA