Evening star., 1950-07-09
Trade Trends Sfronu,
Holiday Cuts Activity
In Some Industries
By 6. A. Phillips
Associated Press Business Writer

W ~. ~ UtHHpS
Associated Press Business Writer
NEW YORK. July 8.-Extendet
observance of the July 4th holi
day caused some reduction in tota
business activity this week, bu
underlying trends again demon
strated exceptional strength ant
vitality, war jitters notwithstand
ing.
Despite the holiday lull in tn,
steel, automobile and building
fields-the big three" of the cur.
rent business boom--demane
was as great as ever and these in.
dustries quickly resumed their rec.
ord-breaking production pace.
Even retail sales over the shorter
week were better than in both thu
preceding week and last year. The
increased volume in retail stores
was probably helped along to some
extent by scare buying in selected
items. Despite ample evidence
that we have an abundance OF
almost every commodity needed in
everyday life. some consumers be-
came panicky at the first shot
fired in Korea and rushed out to
stock up.
Tires in Heavy Demand.
Automobile tires and accesso-
ries. sugar. rubber and metal
products were in extraordinarily
heavy demand. This astonished
trade experts who know how really
well off we are in respect to these
items and how we'll prepared we
are to keep an adequate supply
flowing under most any sort OF
circumstances short of total global
war.
There was a sharp pickup In
textile orders by middlemen ano
converters anxious to get under
the wire before there is another
increase in raw cotton prices. Cot
ton is one Of the most sensitive OF
all commodities to international
war demands. Some grades have
been in tight supply for months
and any increase in war tension
or preparation will tend to ag-
gravate the situation.
How much forward buying was
going on in other markets was a
matter of debate. Businessmen
who concluded that war or a war
dominated economy will develop
out of the present skirmishing in
Korea probably were buying in a
big way.
Uncertainty Apparent.
Others, not so sure which way
the tide would flow, sat tight and
watched.
The whole business front ap-
parently found itself in uncer-
tainty regarding future buying.
A. w. Zelomek. economist for
the international Statistical Bu-
reau, summed it up this way:
The war scare will cause some
increase in new orders in many
markets. Such buying, however,
will be selective. In many cases it
will be little more than a placing
of orders now that would have
been placed anyway within the
next few weeks.
Realization that retroactive
controls would be imposed If war
develops will be restraining fac
tor. So will the realization that
later peace ScareS, If they develop,
would cause sharp price declines. I"
Sharp advances were scored this
week by rubber, tin and some other
war commodities. Sugar was
marked up a little. but part of 1t
was a seasonal pattern. Food
prices generally remained high.
with meat extremely dear for the
average-income group.
The Associated Press index of
35 wholesale commodities rose to
new highs since mid-January, 1949.
Auto Output Drops.
The motor car industry shut
down on Monday and Tuesday
dropped the weeks assemblies to
142, ,548 from last weeks 197,767.
A year ago auto output was 49,
Gil units in this country and
Canada.
Steel mills. however, did not
present a solid front on the mat
ter of working or loahng. The
$4,000 men and bosses of Youngs-
towns big plants stayed on the
job. There were some absentees
IN various Pittsburgh mills, but
here. too. a majority sweated it
out around the furnaces at over
time rates. The same situation
in the Cleveland and
Buffalo areas and in BIRMINGHAM