Milford chronicle., 1937-10-01
ECONOMIC HICHLICHTS
Happenings That Affect Dinner Pals,
Dividend Checks and Tax Bills of
Every Individual. National and
International Problems Insepar.
able from Local Welfare.

: Hufc HUH LDCaf WcuAErs
Prices continue to rise. Durin
the first half of this year. ACCORDING
> to a Business Week survey, whole
/ sale prices were 8 per cent highe
! than in 1886. Raw materials wer
up IA per cent. Farm products cos
Is per cent more. Food increase,
6 per cent. The general cost of liv
ing was per cent greater.
One OF the few manufactured ar
ticles whose price had not been gen
orally advanced, was the automo
bile. Car makers always dread {
price ncrease-because, they think
il will result in large number ol
motorists driving their old cars 6
few months. longer, and so reduce
sales. And the business is so nigh.
the .s600-s1 .0eO price field, that every
maker is 10th to take the step and
charge more for his cars.
A short time ago, however, def
mite signs appeared that the motor
industry is at least falling in line
with the general upward price trend
Ford announced price increases OF
from SIS to $35 on his line Of cars.
General Motors followed snit almost
Immediately, with increase starting
al s35 in the lew-priced Chevrolet,
and ranging to 800 on the relatively
| high-priced Cadillac. A number of
Chrysler cars likewise were given
| higher price tags. II Is believed that
the entire industry will soon fall in
line, from necessity, with this policy,
though some makers may defer price
boosts until the 1888 models come
out this fall. Even so, il is doubtful
il the entire additional expense in
manufacturing operations expert
enced by motor makers this year
caused by higher material and labor
prices-will be passed on to the pub
lie. Chances are that around half
of the Increase will be added to the
selling price of the cars and the rest
absorbed by the companies, which
will then show a smaller profit per
unit and will depend on great sales.
Higher car prices are of import
ance as a sign of the times-in the
last two years. there have been
steady, continuous increases in the
cost of practically everything, with
the exception of the rates of certain
service industries. Big worry to
business men is whether the public
will accept higher prices with equa-
nimity-in few lines, such as meats,
higher prices have resulted in de-
creased sales. However, most bust
nesses have no choice in the matter
operating expenses have risen so
materially that it is necessary to |
consistently raise Rrieas Sto. favoid
losses.
Other business news of interest: |
Construction: The long anticipat- |
ed boom" in home building seems |
to be underway. Residential con- |
struction during the first half of the
year was AZ per cent ahead of the |
same period last year. The steady /
upsurge in rentals, plus a deficiency |
OF houses for rent in many cities. /
is an important factor.
Railroads: Will probably begin !
buying new equipment a big scale i
soon. Traffic has increased so rapid
ly that a number of lines fear that
their facilities will be inadequate for Il
fan and winter freight.
Retailing: A big fall season is an
perhaps the best since 1880.
stores in most sections
are stocking heavily.
Power and Light: Electric output
recently hit an all-time high peak.
Result is that major public service
are steadily increasing II
capacity. in line with
their policy of always being ahead of
Fall and winter power use
will undoubtedly set more records.
Wages: Continue to rise slowly.
during the summer,
when seasonal adjustment is made.
vas at a good level. There have been
ever labor troubles lately. and it
would seem that the unions are
lowing down on direct action tao
les, in order not to ALLEVIATE public
In spite of the progress
# unemployment, government relief
oils are still almost as big as ever
The way the international wind
lows is indicated by the proposal
hat the President be authorized to
end a number of decommissioned
World War destroyers to South
merican countries. These destroy
RS would be kept in good operating
could be Immediately re-
allied by the United States if need
/ by us.
1t is unthinkable that the U. s. M
lans war of aggression. No coun-
y desires peace more. But, at the
lme time, the outlook in world af-
airs is so grave that we are expend-
g our military resources on an un-
peace-time scale. 4
The old naval treaty between Eng
s. is, to all intents =
I'd purposes, dead. Japan and Eng
nd are building ships on a vast y
ale, and the u. S. has announced :
at she will mount 16-inch guns, X
Inned by the treaty. on the two su- 4
II men-of-war now in process of n
n
II is forecast that the Navy De- \
Irtment will request a still bigger 6
from the next Con- h
ess. n