Evening star., 1951-07-15
Production Continues
High, but Retail Trade
Is Nothing 10 Boast OF
By Richard Fiske
Assoeiaied Press Business Writer

Associated Press Business Writer
NEW YORK, Feb. 14.-Cease
fire talks in Korea made littl'
impression on business and in
dustry this week.
There was a growing feeling
that defense production woulc
continue in high gear despite tht
outcome of any peace maneuverS
Some businessmen took the
view that a real peace might NEAR
a temporary slackening in some
industries, but that the tempo
of defense work would soon nick
up again.
Any softening, they believed
would come principally in in
dustries turning out civilian goods
industries which already nave
felt the impact of mounting de-
tense orders. ....
Holiday Involved.
For the most part, business and
industry stuck to its knitting dur
ing the week without taking toe
much time out to worry about
the production picture of the
future.
The factories rolled out their
products at a fast pace, which
wasn't always reflected in the
weeks statistics. Many of the
latest figures were for perform
ances turned in the preceding
week. which included the July 4
holiday.
The overall rate was gratifying
and in the case Of the automobile
industry the output was down.
right remarkable.
Despite strikes, materials short
ages and vacations, auto produc-
tion hit 1888 units. That's well
under the 194,073 of a year ago
and not impressively above the
holiday-week's 98,087.
Workers Face Idle Days.
But in the face Of all the
troubles that beset the industry,
the figure was Unexpectedly high.
The automobile industry hasn't
seen the last Of its troubles. Idle
days are ahead for many an auto
worker while the slack is taken
up in the changeover from civilian
to defense production.
But CIO Auto Worker repre-
sentatives have been talking with
Government officials in Washing
ton about large-scale job Iayoffs
and they said top-level defense
officials have promised to do
something" about them.
They quoted Defense Mobilizer
Charles Wilson as saying a mis-
take had been made in failing to
see that Detroit's big plants re-
ceived enough defense business
to prevent large-scale lsyoffs.
Steel Activity Phenomenal.
The steel mills of the Nation
operated at 101.5 per cent of rated
capacity. Their activity has been
phenomenal for some time now.
The American Iron and Steel
Institute reported. for instance,
that blast furnaces in the United
States turned out more steel in
the first half of 1851 than ever
before in history-production of
ingots and steel for casting reach
ing 52,273, 900 tons.
But despite the tremendous pro-
duction, some observers close to
the industry predict civilian steel
consumers will be either out of
the supply picture by September
or included in the controlled ma
terialS plan.
Consumer buying was nothing
to shout about. The Federal Re-
serve Board reported department
store sales in the first week in
July were / per cent higher in
dollar volume than in the CORES
spending week Of 1850.
Shoe Prices Reduced.
But the board added that stores
In some cities were closed on Mon
day, July 3, last year, and this
year there was one more trading
day in the week. It added up to
not too encouraging a picture of
flrst-week sales this year.
In St. Louis, the Brown Shoe
Co. reduced wholesale prices on
several lines of mems shoes and
said the cuts would amount to
about 81 pair at the retail level.
Dun g. Bradstreet's food index
showed wholesale food prices at
the lowest average level of the
year. But in the retail food stores
there were few if any general re-
ductions. except on seasonally
abundant fresh fruits and vege-
tables.