Evening star., 1950-07-16
Business Continues
Al Record Levels
Despite Uncertainty
BY the Associated Press

by me Associated PresS
NEW YORK, July 15.-The Ko-
rean war created new problems
and uncertainties this week for q
national economy that already l.
breaking production records te
keep abreast of peacetime de-
mandS.
On the whole, business was ex-
tremely good in the face of such
retarding influences as annual
vacation shutdowns and specula.
ton over Government mobiliza-
ton of industry.
Some firms put their worker.
on an extra day a week. Others
did away with vacation closings.
The Navy started taking ships
and planes out of mothballs. The
Government started buying from
the big aircraft manufacturers.
Everything from pork chops tC
steel products cost more. The
trend was inflationary.
Buying Spurred in Week.
Buying increased under the i'm
pact of an unusually heavy
,peacetime demand and talk OF
war scarcities.
Some of the buying by busi-
ness was for inventory purposes
But there were widely circulated
reports that some was for out
right speculation.
Any substantial amount OF
speculative buying could bring
price controls and rationing in
short order and could result in
many a burned finger.
The amount of purchasing was
reflected in another increase ir
the business loans of banks, send
ing the total to $13.660 billion, the
highest figure since April.
There was jump in retail sales
to. Purse strings were loosenec
and prices rose as more people
bought more goods.
President Truman blamed fooc
price increases on profiteering
The President said food is abun-
dant, rationing is not contem-
plated, profiteering and boarding
are unjustif1ed.
Scores Textile Boosts.
A large cotton goods manufac-
turer-JoSeph H. AXelrod, presi-
dent of Wafnsutta Mills, New
Bedford, Mass.-said price in
creases in the cotton goods in
dustry are "impulsive and prema-
ture."
Defense spending was on the
increase and industrial mobiliza-
ton was in the air.
But the extent to which industry
would be asked to mobilize and
the controls and regulatory powers
President Truman might seek
were among the uncertainties that
kept business and finance jittery
Trading on the New York Stock
Exchange was a good reflection Of
this feeling Of uncertainty.
Successive selling waves whackeC
about 50 billion off the paper xalu.
of all stocks listed on the ex.
change. And the selling was basec
largely on emotional response tt
rumors at home and abroad.
President Truman discussed
manpower and industrial control.
with his cabinet on Friday, but NJ
conclusion was reported and there
was no inkling of what went on al
the meeting.
1t appeared likely the President
would study the midyear report o1
his economic advisers-due II
about a week-before announcing
definite decision. Speculation j.
rife during the waiting period.
Size of Needs Debated.
Some civilian officials in Wash.
ington believe military outlays ur
to 81 billion can be taken care Of
without controls, but that defense
spending in the vicinity of $1(
billion will call for regulations tt
cushion the impact of imitation.
Senator Maybank, Democrat, o1
South Carolina. chairman of the
Senate Banking Committee, sale
if the world situation is as "black
as it's painted" the Government
may be forced soon to contro
civilian economy. \
Senator Taft, Republican, Of
Ohio, who heads the Senate Re.
publican policy committee, wa.
against any idea of giving the
President standby authority to i'm.
pose economic controls.
Some of the pressure for regu.
lationS was attributed to smalle,
manufacturing concerns, which
sought ALLEGATIONS on ground.
their suppliers are not deliverins
enough materials to sustain full
operations.