Evening star., 1948-07-18
International Tension ,
Politics and Initiation :
Cloud Trade Outlook
By 6. A. Phillips
A,,oelo,.d Pres, FiconeIoI Wri,,

NEW YORK, July l7.-Business
and industry were caught in . cross
fire of international tension, do.
mestic politics and spreading in.
flation this week.
While industrial production held
at a relatively high level and gen.
eral business conditions remained
good for a summer period, disturb
ing influences took shape in the
background. How much Of q menace
they may prove, remains to be seen.
The sudden recall of Congress at
time when the two major political
parties began desperate struggle
for the presidency was a highly
unsettling influence that found i'm
mediate recognition in a sharp drop
in the stock market.
No matter which side wins in
November, business is certain to be
attacked repeatedly in the summer
campaign. both in Congress and on
the hustings. The fact that such
economic elements as wages, prices,
living conditions and social reforms
occupy high places among questions
to be debated, suggests high de-
gree of stress and strain will pre-
vail in the next few months.
More Imitation Fuel.
The imitation steamroller took on
new fuel late in the week when
United States Steel Corp. announced
wage increase averaging 13 cents
an hour for 10000 production
workers. News that the corporation
would increase its prices of finished
products was contained in the same
announcement.
This about completed the circuit
of third round wage boosts and un-
counted rounds Of price rises. How
much more the steel company will
ask for its products was not stated
but we'll informed quarters sug-
gested it would range up to $40 q
ton. Eventually the increase will
find its way down the line to every
product made of steel and add its
weight to living costs.
A wide variety Of consumer and
durable goods were pushed still
farther out of reach of the average
consumer during the week. Meat
prices scared out of all proportion
to other table items, reaching record
highs at New York and many .
other densely populated cities.
Coal and coke prices advanced
so cents to SIPS a ton at RETAIL
copper wire and cable products were
upped to 13 per cent by Phelps
Dodge Corp, leading producer; a
popular brand of cigars white OwD
was raised from to 10 cents apiece:
plate glass products of Libby Owens
Ford were marked up 9 to 10 per
cent; transit fares went up in Min.
neapolis and st. Paul and an in
crease was asked by the utility
serving Baltimore.
Index Well Above 1947.
The Bureau of Labor Statistics
wholesale price index pushed to
new postwar peak at 1868 and the
Dun & Bradstreet wholesale index
of 81 foods reached a new all-time
high at $736. The BIS index was
1875 per cent higher than at this
time last year and the Dun index
was 1873 per cent ahead OF the l947
period.
Current production figures re-
fiected the prevalence OF summer
conditions throughout industry.
plus some additional factors such
as material shortages, wildcat
strikes and vacation shutdowns.
Steel mill operations moved UP
from the previous week but were
still below recent weekly averages
due to low coal stocks; electric
power production was down the
second week in a row, rejecting the
seasonal showdown In business and
industrial activity; and crude oil
output failed to match the total OF
the previous week for the second
time running.
Soft coal production returned
nearer to a normal basis than at
any time in recent weeks when the
captive mines reopened after settle.
ment of differences with the steel
companies and numerous sympa-
thizers in the commercial pits re-
turned to work.
Automobile output at 1889 units
was the second best Of the year.
exceeded only in the latter part Of
February by production OF l1s,42S