Evening star., 1949-09-25
Trade and Industry
Maintain Stride
Despite Bad News
BY 6. A. Phillips
Assoeiofed Press Business Writer


NEW YORK, Sept. 24.-Business
and industry steered around a
rising tide Of unfavorable develop
ments at home and abroad this
week to maintain strong for
ward stride. In some lines ac-
tivity was at the highest point
since early last spring before the
mild summer recession set in.
Taking no notice of the deepen
ing labor crisis except where
forced to do so, industrial produc-
ton made favorable comparison
with the best weeks of the budding
fall upswing. The so-called strong
lines of activity-automobiles, steel
and construction-again paved the
way for the overall performance.
Retail trade was a bit spotty
because of a let down in consumer
spending in areas having special
problems such as the widespread
idleness in the coal fields. But
heavy forward buying for inven-
tory accumulation more than
made up for the slack at the cor
ner grocery store. Prices in a
long line of consumer goods dupli-
Gated the firmness that has been
apparent in recent weeks.
Devaluation of currencies around
the world sent shivers up the spine
of textile markets. Trading SIM
mered down to a quiet routine
turnover, far cry from the large
volume of business that has
marked this industry since it was
discovered early in the summer
that too many firms had let inven-
tories drop too far and re-entered
the market on the buying side.
ALI Textiles Affected.
All types Of textile goods are
likely to feel the pinch of foreign
competition now that goods have
been cheapened in such big textile
countries as England and France.
Just how much American busi-
ness will be hurt by this rash of
currency tinkering and what lines
will be hurt most is question time
alone will answer because of the
many factors involved. Some
competent international trade
analysts lean heavily to the theory
that the bark of foreign competi-
tion will be much worse than the
bite.
There were additional factory
reopenings this week and in a few
other cases hours of work were
heightened. all Of which added up
to an improvement in the unem-
ployment situation. While the
ranks Of the idle were swelled con-
siderably this week by strikes and
other labor troubles, those out of
work because Of lack of a job were
less numerous.
Steady TO higher stock and bond
markets apparently reflected
strong belief that solution would
be found to the thorny labor prob
lens now hanging over such basic
industries as steel, coal, motor cars
and railroads. While the market
averages of stocks listed on the Big
Board ended the week unchanged,
the individual action of such i'm
portant groups as, the rails and
utilities bore a message Of quiet
confidence.
Just how major steel consum-
ing industries are fixed with stocks
is something of a guess and varies
widely from firm to firm and
even from plant to plant. Best
guess is that automobile makers
are better situated to take stop
page in steel plants than any
other major user of steel.
Any prolonged interruption to
output would be felt strongly in
the currently booming building
construction field because few if
any builders stock upon this
necessary material.
Construction Expands.
A good idea Of how fast this
big industry is moving to fulfill
all commitments before the onset
of bad weather can be had from
the contract closings in heavy
construction this week. The total
crossed $188 1858, 900, comfort
able gain over $156,021 900 in the
previous week and far ahead of
500, ,303,0 900 in the like week in
1948.