Evening star., 1949-10-09
Labor Troubles Beqin
To Slow Business and
Industry in Week
By 6. A. Phillips
Associated Press Business Writer

NGW w 1o1th, Wv. o.-DuSlllcos
and industry began an orderly re-
treat this week under steady pres
sure from the crisis in labor.
Virtually no sector of the busi-
ness front was free of the conse-
quences of strikes in steel and coal
and a growing number of disputes
lin other industries.
While all three basic divisions
| of activity that make up the Ma
tional economy were affected, II
was production that suffered most
in this first week of curtailed op-
lerations in both steel mills and
coal fields. Distribution was next
with railroads and water carriers
taking bad licking.
Consumption on an overall basis
showed less reaction, but here too,
the sudden severance of more than
100000 workers from regular
payrolls began to show up in
opcIlulIlS ldDlCS.
Anxiety Deepens.
With labor and management
still unable to come to terms on
pensions and security, anxiety
deepened over the ultimate fate of
the promising upswing in business
that had been making headway
until this week.
Inventory positions of steel users
varied. but in no case did anyone
have more steel than wanted. Coal
stocks were larger as a rule but
here, too, the situation varied.
Taking something of a gloomy
view of the situation, the national
Woodworking weekly Iron Age"
said that unless the coal and steel
strikes were settled soon "only a
miracle can prevent serious dislo-
cation of the nations economy
at a time when it had just
emerged from a critical adjust
ment period in a healthy state"
The trade paper predicted steel
fabricating and processing plants
would face a shortage of steel at
an early date and some manufac-
turing plants would be forced to
shut down before their own stocks
of steel were exhausted because
their suppliers of parts would run
out of steel first.
DR.. Edwin G. Nourse, the Presi-
dents top economic adviser, said
the strikes hold the key to the
future trend of business. II the
coal and steel walkouts are halted
within month, he said after
making a report to the White
House, the country could over
come the handicap. If they ex-
tend beyond that, he said. it will
be an alarming situation.
Stock Traders Hopeful.
The Stock Market turned out
to be the loudest rooter for an
early settlement Of the labor
crisis. Day after day prices ad-
vanced and volume expanded.
More than 1,00O,000,000 was
added to the quoted value Of
shares listed on the New York
Stock Exchange. Bonds did as
well in their own particular
sphere, indicating "big money
was betting on the Nation escap-
ing any long drawn out Interrupt
ton to the production Of such
essential goods as coal and steel.
But no matter how high the
Stock Market sent its signals Of
optimism, business and industry
clearly were on a strict reducing
diet. Overall industrial produc-
ton was far below that Of recent
weeks; retail trade was good in
spots but bad in areas where
people were beginning to watch
their pennies as a result Of cur
tailed income or no income at all.
Forward buying for inventory,
one of the strong spots in the
economic picture in recent weeks.
slowed considerably as purchasing
agents tried to assay the full ef-
fects of the current industrial
muddie on fall and Christmas
spending. If they get the idea
that spending is going to be tight,
you can look for a new outbreak
of factory closings and industrial
c,Ytho nEc