Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-09-11
Seasonal Expansion
In Trade Brightens
Business Outlook
By 6. A. Phillips
Associotsd Press Financial Writer

NEW YORK, Sept. 10Th,
early fall business season got of
to a favorable start this week de
spite highly unsettled labor con
ditionS.
Propped at every strategic poin
by hefty display of strength il
seasonal lines. the overall eco
nomic picture at the moment
rated commentator not onl!
from business analysts, but such
Washington bigwigs as Secretary
of Commerce Sawyer, DR.. Nourse
chief White House economic ad,
wiser; Chairman McCabe of thu
Federal Reserve Board, and ever
Mr.. Truman himself.
When the President said "The
figures speak for themselves" hi
was talking about such things al
the extensive improvement in the
national employment situation
from July to August; a sharp up.
turn in industrial production in
the same period; a halt in the
mild decline in personal incomes
noted in July; reliable evidence
that commodity prices were en-
tering an area of stability after
months of downward zig-zagging
high level retail sales and a gen.
eral disposition on the part OF
business to replenish inventories
all along the line.
Buying Spreads Out.
This latter factor is one of the
strongest links in the chain al
the moment. When purchasing
agents are busy you usually see
raw materials moving in a steady
stream to factories and plants for
processing. In turn. manufac-
tured products pour out of these
to wholesalers and distributors
and finally, they show up on the
shelves of your favorite store for
you to buy and take home. When
that happens the whole process
is repeated all over again.
While an extremely cautious at
titude toward the longer term
trends was maintained on all sides
it seemed fairly we'll agreed that
business has at least a $3.50
chance Of keeping a healthy glow
through most Of the final quarter
Of the year unless a barrage of
Gripping strikes result from the
current struggle between labor and
management over fourth round
wage demands and a variety of
social security benefits.
The labor pot was ready to boil
over at the end of the week, fired
by such hot potatoes as the prob
lens contained in the report of
the Presidents act-finding board
in the steel industry dispute; the
repeated outbreaks Of violence in
the Bell Aircraft strike at Buffalo;
complete immobilization of the
Missouri Pacific Railway System
which carries 10000 passengers a
day and 60.000,0 900 tons of freight
annually, and a variety of situa-
tons of lesser magnitude individ-
ually but when added together
spelled trouble.
Holiday Reduces Activity.
Industrial production and other
business activity was thrown off
center by widespread observance
OF Labor Day this week, but when
allowance is made for that gap
the figures stood up we'll against
those of the previous week and a
year ago.
The hard working steel mills hit
1t of at S4.2 per cent of capacity,
only a modest drop from last
weeks rate of 86.3, the highest of
the spring and summer. A year
ago the operating rate was 94.5
per cent.
Reports continued to filter
through front Offices that a por-
ton OF the big demand for fin
lshed steel was due to stockpiling
as insurance against any pro-
longed strike at the mills, but by
far the larger end of the tonnage
was destined for immediate use
at busy automobile factories and
in plants of other larger users of
steel.
Auto Output Smaller.
Almost complete inactivity at
Detroit on Monday cut automobile
to 124,043 units in this
country and Canada. In the pre-
ceding full work week output was
146,039 units. A year ago it added
up to only 1851.
Freight carloadings sank to
zoo. 800 in consequence of the cur
tailed nnaro finnc II, nal -.;-