Weather Clear, Sky Bright

Wearing a dark suit and a cautious smile. Federal Reserve Board Chairman William McChesney Martin went before a joint congressional committee last week to testify on the state of the U.S. economy. After Martin explained how the FRB was "feeling its way" in the current credit situation, neither easing nor tightening credit, Illinois' Democratic Senator Paul Douglas tried some specific questions: DOUGLAS: Do you have any worries about the automobile industry?

MARTIN : Yes, I am worried all the time about the automobile industry.

DOUGLAS: Do you have any worries about the farm-machine industry?

MARTIN: I have indeed.

DOUGLAS: Do you have any worries about the building industry?

MARTIN : I have indeed. I am a professional worrier.

But looking at the U.S. last week, not even FRB's Martin could be seriously worried over the economy's health. Though the January employment report showed a 1,300,000 seasonal job slide since December, the total of 62,900,000 employed was still 2,700,000 better than January 1955. Construction for January was also down from December, but 1% ahead of 1955. January retail sales slipped $5.3 billion from December; even so, the figures were 6% better than the same month in 1955.

Aside from the scattered clouds over Detroit, the U.S. economic climate continued fair and warm. The steel industry clipped along at 99.1% of rated capacity in January, turned out 10.8 million net tons of steel for an alltime record. Incoming orders still outpaced production, were backed up more than three months at some mills. As businessmen continued to expand, business loans increased $44 million to a total of $25.6 billion in the week ending Feb. 1.

As for the automakers, the recent cutbacks did not prevent them from turning out their 1,000,000th new motor vehicle of 1956 this week, only three days behind the 1955 pace. At Chrysler President Lester Lum ("Tex") Colbert announced that in Chrysler's 1955 comeback net sales totaled $3.5 billion, 67% better than 1954, with earnings of $100 million, more than 400% better than 1954. Said Colbert: "1956 will be highly competitive, but we believe it will be a good market."

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