Evening star., 1938-10-23
AUTO FIRMS J0|N i,
RECOVERYPARADE
AS OUTPUT SCARS
Car Stocks Reported Lowest
Since Close of 1888.
Orders Pile Up.
PAY CUTS RESTORATION
TO LIFT BUYING POWER
Power Production and Freight
Loadings Also Scores Gains
During Last Week.
BY THOMAS E. FLANAGAN
Associated Press Financial Writer.

Associated Press Financial Writer,
The motor industry put a heavy
foot on the Nations business accelera.
tor this week.
During the three months ended
with September industrial production
had shot ahead at unusual speed.
Business experts said the pace was
all the more remarkable in that it
nao the benefit of relatively little
impetus from the automobile makers.
With this in mind, analysts looked
this week to the motor division for
cue to fall and winter trends. They
found:
!. Automobile production spurted to
$3.50 units for a new 1888 hiph
1hls, according to the estimate of
Wards Automotive Reports. was an
increase Of about $4,000 over the
previous week.
2. Riding the crest of swelling ont.
put, General Motors Corp announced
$4,000 workers would be called back
10 jobs within the next two weeks
ana that pay cuts would be restored.
). Chrysler Corp. stepped up pro-
duction 20 per cent. 1t disclosed that
since August /, it had recalled "a Ooo
employees. 1t also announced pay
raises. S"'
Inventories Reduced.
All this good news from the motor
INDUSTRY had two explanations: Rising
ORDERS for new cars and falling inven.
tories. Authoritative reports from inn
portant centers said stocks of cars
were at the lowest ebb since the end
OF 1888. At the same time unf7l,ed
oroers running into the tens OF
thousands were reported.
Inc automobile industry has lonp
oeen recognized as the strong bow,
OF general business, and the con.
sensus among both Government and
private economists this week was that
once more this industry would mt
a powerful shoulder to the recoverv
wheel
For the past four months national
income has expanded. One leading
government economist said the re-.
employment and pay raises in the
motor sector would probably extend
income and possibly deter nav re-
ouctions which might have been con.
templated in other industries
nor were these the only benefits
expected to flow from the industry.
Inc motors are among the leading
employers OF men. money and mate
rails. Their improvement was bound
10 pulsate through related channels.
1t was agreed.
Power Output Climbs.
business observers found it signifI.
cant that electric power output and
lrelght carloadings moved forward
with the motor industry. A high
spot in the electric power division was
the increased demand for power in
neavy industrial centers. In reaching
a new high for the year freight ship
ments had the aid of a sizable in.
crease in the movement of miscellane.
Gus goods
Steel productions slight falterinp
was regarded widely as the aftermath
OF what trade referred to a week ago
as a "price-cutting war" However.
the price structure was stabilized this
week, after some producers had lock-
eyed further for price advantages.
In its weekly survey of business in
36 cities, the Commerce Department
reported retail trade was again a
laggard. This behavior was attributed
70 unusually warm weather rather
than lack Of consumer interest or
lowered buying power" The advent
OF cooler weather doubtless would
stimulate purchases of fall and winter
merchandise, the departments report
said.
The temporary slowing down In
retail trade, it added, again put a
oent IN wholesale replacement orders.
but nevertheless this segment con-
tlnued Its general moderate advance"
Experts took heart from price firm.
ness and some improvement in for
ward commitments.
Heavy Goods Watched.
Authoritative reports to the Com.
ePoA oilCll1 pOlIlIeO 10 the
likelihood of a substantial broaden.
ing OF activity in the heavy goods
industries. Sections which were be-.
heVed likely to provide stimulus in.
cluded, experts said, the utility, ma.
chinery, chemical. textile and con.
struction industries.
Another footnote on current i'm.
movement hA -, T.
10 trade, industry and farming. It
was the largest increase this fall and
the third successive weekly upturn. It
brought the total to the highest since
the end of last June. Meanwhile. the
ready reception of two large bond
issues by the money market cast =
bright light on prospects for new
financing.