Evening star., 1949-06-26
Some Bright Spots
Reported in General
Business Decline
By Richord Fiske
A,oe;oted Press Finoneiol Writer

by kiCh0T0 FtSke
Assoeiotsd Press Finoneiol Writer
NEW YORK, June 25-A bit Of
good news, including a 20-year
peak in automobile production,
popped up this week to take the
sting out Of generally declining
business activity.
Some of the brighter news was
a result of seasonal factors. More
over, it was sparsely spread
through the economy. Yet 1t was
encouraging after long period Of
slow but constant declines.
For instance. engineering con-
struction contracts hit the second
highest figure Of the year. Electric
power production reached its best
total since early April.
Automobile production added up
to the staggering total Of 0.94S
units, a figure unmatched since
, the rip-roaring days Of 90. In the
previous week output was 146,056
and last year 95,027 units were
produced in this country and Can
ada.
Woolen Industry Gains.
New England woolen and wor-
sted mills reported pickup in
production. In several places idle
employees were called back.
The Bureau Of Labor statistics
reported the cost Of living moved
down a little during the month
ended May IS.
The decline in the BIS index
was only three -tenths Of one per
cent, not startling but enough to
give consumers a few more pen
MES to spend on non-essentials.
The backdrop for the weeks en-
couraging items. however, was the
same old decline in all major COM
ponents of the national economy.
Unemployment crept up little.
Steel production fell to its lowest
level since the week Of April 10,
1948-the 10th consecutive week
1t has skidded.
The labor situation became in
creasingly tense.
Mine Vacations Start.
Steel negotiations failed to get
anywhere. The coal miners began
their annual To-day vacations at
midnight Friday. less than a full
week after returning for one
week stoppage designed to "stabi-
lize" the industry.
And there was some question
whether the 100000 soft coal
miners would return at the end
Of the vacation.
If a contract is negotiated be-
fore the present one expires on
June 80 they probably will resume
their jobs.
But If John L. Lewis fails to
reach an agreement with the op-
orators, past performance indi-
Gates the miners may respond with
the usual-no contract; no work.
Department store sales were
down again. Goodall Co., Palm
Beach suit manufacturers, knocked
% per cent off its prices, effective
July II, in an effort to stimulate
business.
Mail order catalogues showed
lower prices averaging around six
per cent. Linoleum prices were
down. Baby carriages cost less.
Less Money Spent.
Money in circulation was at the
lowest mark since August. 1945.
This was neither particularly good
nor bad. 1t meant. however. that
people were spending slowly. Per-
haps they were banking it. as
savings deposits were up.
With it all economists failed to
see any serious depression in the
offing.
Lew Hahn. president of the Ma
tional Retail Dry Goods Associa-
ton, said This is a time for op-
timism; not for pessimism.
In Washington congressional
committee recommended an extra
allotment of $33, 900 900 for grants
to states to administer job finding
and jobless payment programs.
One economist predicted pump
priming proposals, at least on a
standby basis, will be sent to Con-
gress before it adjourns.
But, he added. the present re-
session will be over before public
works programs can be organized.
Garfield Cox. dean Of the Uni-
versity of Chicago's business
school, predicted a low in the cur
rent recession probably would
come late this year or early next.
That coincided with the belief
of many economists. who have
figured on q reversal Of trends
about the second quarter Of 1850.
BURY Biscuit Co. had q deficit
of $123,210 In 28 weeks ended
May II vs.. a loss of $395.175 In