Evening star., 1949-08-21
Widespread Buying
By Retailers Hailed
As Recovery Sign
By Richord Fiske
A,soeiofed Press Finaneiol Writer

NEW YORK, Aug. 20.-BuslneSS
finally began stocking up for the
fall and Christmas trade this week.
There were indications buying
was widespread and substantial.
Economists believed the belated
purchasing was here to stay right
up to the Christmas holidays.
It was one of the best economic
signs of the summer. 1t generated
a feeling of optimism among those
who believed a loosening OF the
purse strings was needed more
than any other single action.
Only recently the Commerce
Department said business pri-
marily was responsible for its own
decline because it refrained from
buying and thus diminished the
market for goods and services.
This week businessmen were
spending. It seemed obvious they
thought the consumer would
loosen up before the year is out.
inventories continued to dis
appear at a healthy rate. Coupled
with purchasing, that should
mean a quick upturn in produc-
ton.
Expansion Plans Revealed.
Large expansion programs were
announced during the wexford
Motor Co. planned new pressed
steel plant near Buffalo, N. Y;
Dow Chemical Co. planned a
SIS, 100000 ammonia plant at Free
port, Texas.
D.; Purchasing agents reported or
der backlogs going up. They said
orders are coming in for longer
terms ahead. They mean less
-hand-to-mouth buying.
The employment situation was
reported a little. better in many
sections. Additional plants re-
called idle employees. Secretary Of
Labor Tobin told President Tru-
man 1000 900 new jobs may open
up by the end of the year.
Automobile production headed
at a merry pace toward an all
time high for the year. Industry
spokesmen predicted August pro-
duction of 643 1000 cars and trucks,
an all-time record for a month.
And a yearly record was almost
within the industry's grasp.
Emil Schram, president of the
New York Stock Exchange, saw
encouraging signs of reversal in
the downtrend during chat with
President Truman.
Labor Troubles Feared.
But the labor situation could
upset the apple cart easily. There
was not much Of an encouraging
nature in the steel negotiations.
The opinion was heard increas-
ingly often that the fact-flnding
board would recommend a five or
six cent wage increase and few
cents in welfare benefits.
The CIO Steelworkers asked
80 cents an hour package includ-
ing a wage boost and pension and
insurance benefits.
There was a belief in some cir
.c1es that the steel companies
might entertain q recommendation
of 10 cents an hour or under.
But the boards findings are not
binding on anyene. Many thought
there might be a lot of wishful
thinking behind the talk that has
been making the rounds.
The top bit of good news of the
week - business buying was re-
fected in the Federal Reserve
Board report on loans to business
by leading city banks.
u These loans increased $50, ,000.-
900 during the week ended August
10. Only two areas did not share
in the expansion-Cleveland re-
ported a 100000 downturn and
Boston's figure was unchanged.
The increase wiped out the pre-
vious weeks decline and was way
above the $16.000,000 increase in
July that broke a 27-week slide
+downhill.
Store Sales Up Slightly.
Dun and Bradstreet, the busi-
ness reporting service, said con-
sumer buying was up slightly in
the week ended Wednesday al
though dollar volume was moder-
ately below a year ago.
Department store sales, taken
alone, however, were down again.
Steel mills operated at 1875 per
cent of capacity. the best rate
since June 20. 1t compared with
1878 per cent the previous week
and $50 per cent a year ago.
Construction awards slumped
from the previous week. But there
were large amounts of potential
building in the making.