"Brisk"

Although the automobile industry during 1935-36-37 received credit for "pulling the nation out of the depression," it has been far from the head of the parade in the rise from Depression II's rut. Last week, however, the No. 1 U. S. industry appeared ready to resume its leadership. With automobile production for the week jumping from 45,000 to 62,000 units (88,000 year ago), President Alfred P. Sloan Jr. of General Motors made front-page news across the nation and inspired a clever cartoon by announcing that G. M. was rehiring 35,000 men, restoring the 10% to 30% pay cuts of last February. This meant an annual boost to G. M.'s payroll of $55,000,000 with an other boost of $60,000,000 likely as other workers are returned to full time--no small addition to consumer pocketbooks.

Motormaker Sloan said he expected consumer buying to be "substantially improved over that existing during the past few months.... To assist in carrying on its stabilization of employment program, the corporation will again build substantial inventories in excess of retail demand during the winter months. . . ." Not to be outdone, President K. T. Keller of Chrysler Corp. announced the rehiring of 34,000 men since August 1, the restoration of March salary cuts. Said he: "Current business is brisk. . . . Stocks of cars in dealers' hands are 31,500 today, as against 98,000 at this time a year ago."

While Detroit hummed, the rest of the U. S. also contributed to the din of reviving times. Carloadings hit a 1938 high of 726,612--23,000 above the previous week but still 79,000 under the same week year ago. Secretary of Labor Frances Perkins reported that placements by the U. S. Employment Service reached a new peak in September, while applications fell for the first time in a year. Steel, power and cotton textile output were up. Two fat refunding issues went to a premium in Wall Street. Spurred by General Motors, stocks climbed to new 1938 levels.

Some of the basic reasons for these good tidings were visible in last week's figures on the flow of money. With gold still pouring in, U. S. stocks crossed $14,000,000,000 for the first time. With pump-priming going full blast, the 1938 Treasury deficit reached $979,000,000 against $449,000,000 for the same period last year.

Excess bank reserves climbed to $3,270,000,000, next-to-highest total on record. In short, the supply of money had never been so plentiful. And when bank clearings reached a 1938 peak and bank debits rose a whopping $1,000,000,000 in the last two weeks, it was clear that the public was using that money supply.

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