The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1931-11-13
INDUSTRY Sees
HOPEFUL SIG
BANKERS
Leading Automobile |
poets to Employ Nor.
This Winter Than |
MOTOR SUPPLY IN H
OF PUBLIC FALLIF
Twelve Million Years Less Tr.
ton in Nations Car Invento
Considered Normal, Mar
turer Tells Finaneie


IL the form of automobiles
hands of the American public
million "car-years" below nor
that this deficit will eventual.
be made up. Richard H. Or.
president of the General Mo-
poration, recently told the
Bankers Association convent
employment in his company
greater this winter than last
Employment during the
months is a very important
Mr.. Grant said. $50 far as oil
ration is concerned. in Noven
cember. January and February
be employing at least as m;
probably more men than we
past year."
In order to gauge the out.
next years market his corr
he said, attempts to set up
dices based on intensive s
studies in addition to observat
common sense.
1--WE are in the habit OF
upon an automobile not merel
automobile but as transporati
said. 1--WE figure each aut
produced as six years of tral
tion. Then by following up
Of production yearly. we get &
which indicates what ought
normal inventory of transports
the hands Of the American peoI
whether there are more or les
than might be expected. Ac,
to our figures. there are about
million years less transported
this inventory at the presen
than has been considered norma
1925.
The Outlook for Business
Consequently, If We retain tbs
purchasing power in this coun
is quite evident that on the f
turn Of business there will be
to replace that inventory. In d
ing this graph, it has come on
strongly that every third year
big automobile year. The I
automobile year was 1929 when
600 cars were produced for Am
consumption. This year the in
will produce somewhere betWe
100000 and 100000 cars. AS /
three years after 1929, If econom.
ditions were normal we could b.
we would do a tremendous bu!
because the third year is the time
the bulk Of the replacing takes !
He added that there are fact
work that make it uncertain he
the year will be, instancing
money is being boarded from
of confidence and this takes
some purchasing power that we
otherwise have, while family bl
are being cut on account Of CD
In income conditions, which
means that purchasing power Il
automobile, like a good many
things. will be knocked down"
result, he said, 1t was necessa
measure what statistically Won
a big year against a practical
sideration of the curtailment
penditures which Is going on al
termine how big the year ".
under these circumstances.
From a long haul standpoiI
gardless Of how many automobil
sold In 1892, we are storing up
business for the future" Mr..
said. There will be fewer autom
sold in 1881 than will go to the
heap. With 100000 car-year
Of the inventory. nine percent
gasoline was used up to Aug
1881. than was used in 1880.
fewer automobiles, the people
have been running them taste
longer to consume the additional
line. This means that we have
22,000,000 people working hal
make a fine business for our I'M
when there Is an economic rec
No False Optimism
81 am not attempting TO Great
false OPTIMISM am not spG
without a statistical background
ing the best sense we can, we
drawn conclusions from the figul
have. and l am willing to NAL
statement that as far as the CO
OF our business for the first b
1882 Is concerned, We shall Sc
indices somewhat higher than t
Qualities Of 1881. We are will
set our advertising budgets an
selling expense on that kind Of il
With economic conditions as the
and since the obsolescence is so
and we have sunk so low in this
sales, we figure that the first b
1892 must necessarily be better