Evening star., 1950-07-02
Industry and Trade
Hold High Levels,
Despite War Scare
By G. A. Phillips
Associated Press Financial Writer

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Associated Press Finoaeiol Writer
NEW YORK. June 30.-Th,
Pacific war scare caused a To-
of uneasiness In business this weel
but failed to disturb strong for.
ward trends in basic industries
First reaction to the Korean
flareup in business and industr,
was a badly upset stock market
giving the lie to those who al
ways say Wall Street loves a war
While there were periods o
stability and aggressive advances
there was no doubt about how /
majority Of those who own stock
felt about the new twist in in
ternational relations.
The weeks decline was tn.
largest since the market droppe,
around So billion in the sprin,
OF 1910 in the first reaction t.
news that the German armie,
were running wild over Europe
ushering in World War II witl
full scale aggression.
Other News Unfavorable.
While the trouble in the Pacifi,
was the spark that touched of
heavy liquidation, some stool
market experts contend it was no
the sole reason for the Iarg,
decline. There was a particular,
heavy batch Of other discouragin,
news. including another of tn,
recurring strikes on railroads, tn,
French political crisis and passag,
by Congress Of a bill that call
for more corporation taxes.
Although it was less obviou.
that the break in stocks, business
sentiment was certainly highly
disturbed by the political devel.
opments in the Far East ane
when front offices closed Frida,
night for the long week end thai
will extend in many instances t.
next Wednesday morning, tn,
world of business was alive witt
rumors, discussion and speculation
concerning what was ahead.
VIII it be war again so soor
after the end of the last conflict;
Just five years ago today (Sat.
urday July - the first postwar
automobile rolled off the Assem-.
bly, lines at Detroit. Since ther
the motor car makers have pro.
duced some II million passenger
cars and more than S millior
trucks and yet have not caught
up with the heavy postwar de.
mand.
Activity At Record Levels.
The international crisis struck
at a moment when business ane
industry were at the very peak o1
peacetime perfection: employ.
ment crowding the all-time higf
established in the fall of 194S ane
the gross national product closel,
approaching II not exceeding tn,
astronomical figure of that sam,
period.
Never before have we had a.
much steel capacity as we hav.
now. and we are utilizing 1t to tn,
fullest limit.
Never before have we had tn,
ability to turn out as many auto.
mobiles as we are now.
Building construction is break.
ling one record after anothe,
month after month.
Heavy lines of industry-loco.
motives. machine tools, freigh1
cars, farm equipment, heavy sap.
pHances. household goods, re.
frigerators. vacuum cleaners
washing machines. air condition.
ing equipment and o thousant
other things that go hand In GLOW,
with the highest standard Of Iiy.
ing Of any nation in history ar,
pouring on assembly lines In rec.
ord numbers and most hav,
ready buyers.
New Industries Busy.
Brand new industries like tele.
vision. diesel power, electronics
plastics. synthetic fibres and new
drugs forge ahead to new height.
OF fame and fortune with eact
compilation of statistics.
The vast potentialities of atomi,
energy challenge the Imagination
and skill of the new nations to,
scientists and technicians.
Nearly 61la million people ar,
gainfully employed and the gros.
national product totes up to tn,
neat rate of $265-270 billion .
year at the current levels of pro.
duction and employment.
All things considered, the Pa.
cific war scare came at a tim.
when the Nation appeared vel
geared to take 1t in stride If i
must indeed take on another war
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