The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1952-09-12
TodaY'S
Business
Mirror
BY SAM DAWSON

the greatly expanded industrial
machine buSy-with jobs for all
is wrinkling official brows now as
well as those in industry.
Commerce Secretary Sawyer
tells businessmen that once the re-
arming peak is passed, they must
put as much thought into the prob
lens of marketing their goods as
they have been into producing
them.
The problem: Industry can turn
out more goods (once it quits max
ing arms) than consumers seem
willing to buy, at present prices.
Loss of government money for
defense work, therefore could
mean that men and machines
would be idle. And the feared
slump would be here.
Robert C. Turner, new men,
Der of the Presidents Council of
Economic Advisors, Startles some
businessmen by warning that the
levelling off of defense spending
on which their prosperity is built
in large part-may be at hand
much sooner than most of them
had expected.
This isn't as frightening as it
might seem. Turner says that
spending is dwelling off at better
than four billion dollars a month,
or around 40 billion a year. And
is likely to hold at that through
next year.
Actually the spending on the
hard goods of war will continue to
expand up to next summer at
least. That will be offset, Turner
says, by downturn in spending
on soft goods (like uniforms) al
ready under way, and the dwelling
off of spending for housekeeping
and maintenance of military in
StallationS and the armed forces.
In other words, industries like
aircraft making, automotive,, cleo
trOnics, chemicals, and Shipbuild-
ing will continue to flourish on
government money for months to
come.
This is what acting Defense Mo-
bilizer Steelman meant last week
in reporting to President Truman
that deliveries of military hard
goods would reach their peak in
mid-1953.
Sawyer's lecture on the need to
improve the methods of distribu
ton of civilian goods is aimed at
the moment at the other indus
tries who won't be getting military
orders in volume.
But over the long term, it will
apply to all. Sawyer warns that
military production goals are be-
ing approached" adding that when
"Our tremendous industrial ma
chine turns again mainly to pro-
ducing goods for non-defense pun
poses we will obviously face many
problems.
Distribution is what happens to
goods after they're made. 1t in
cludeS all the expense of trans
portation. wholeSaling, retailing
and MISUNDERSTANDING in
volved in finding a final buyer for
a product.
The Department of Commerce
is surveying the problem of 'po-
tential markets for goods and Serv-
ices" to keep the nations swelling
industrial plant operating after de-
Tense needs are met. The report
is planned for the first of the year.
Sawyer is also reported planning
to set up new office of diStribu-
ton within the Department of Com
merce. In time it might take over
much of the work now done by
the National Production Authority.
The job of the new office would
be to do for all business what some
big manufacturers and trade asso-
Citations do in furnishing for their
members data on market oppor-
tunitieS and on lowering distribu.
ton costs.
In the last 20 years industries
have done quite a bit for them
selves in shaving distribution costs
and improving sales methods.
Sawyer has reaSuring words,
however, for those who fear a Sc.