likely. Any business t h r e a t is from psychological, rather t h a n m a t e r i a l , factors. T u r n i n g now to m o r e specific phases of industry, as recorded in t h e g r a p h s , it is revealed that sales fell oft somewhat in dollar value in A u g u s t among chemicals and allied industries, or to $1.664 billion from $1.749 billion in July, b u t still substantially over the $1.473 billion in August 1952. It is usually a corollary t h a t w h e n sales fall, inventories rise and this holds true for August w h e r e inventories were $3.227 billion as against $3.166 billion in July, comparing w i t h $3.022 billion in August 1952. Hence, inventories w e r e at a n e w high. H o w e v e r , it has b e e n noted in recent
BUSINESS
PROCESS
INDUSTRIES
ΟUTLOOK
Liquid savings of consumers g u a r a n t e e much s p e n d ing next f e w months, rising $ 8 0 0 million in second q u a r t e r . . . N e w high for cellulose a c e t a t e plastics a n d a l u m i n u m P E R H A P S the theme of économie thought •*· of the past week is related to President Abraham Lincoln's remark: "The Lord must like the common people, else lie would not have made so m a n y of them." The common people form t h e hulk of the nation's consumers—and the consumers have plenty of folding money with which to b u y t h e nation's goods and services. Liquid savings of individuals in second quarter rose $800 million a b o v e first quarter, or to $3.7 billion, says Securities and Exchange Commission. These savings were $2.3 billion above second q u a r t e r 1952. As in recent periods, the high rate of saving in second quarter saw substantial flow of funds into stable types of investment, such as savings accounts, insurance, and savings and loan association shares. Also, individuals have expanded their holdings of securities. These increases in liquid assets h a v e been partly offset by a further rise in mortgage indebtedness and a considerable growth in consumer debt. Bought $2.9 Million More Securities During second quarter individuals increased their securities investments b y $2.9 billion, of which $1.2 billion consisted of corporate bonds and stocks, individuals invested more than $700 million in corporate debt issues-only $300 million first quarter. Consumers h a v e held back enough cash to b u y "an unbelievable further amount of the products of our factories and farms,*' James Cope, vice president, Chrysler Corp., told the Financial Public Relations Association at Detroit. Forty per cent of our consumers have no debts at all, with their holdings nearly nine times their outstanding debts. By no means does d a t a indicate they have installment payments due on every last thing they own, Cope said. As to the automobile industry, 1953 "has all the signs of r a n k i n g as second biggest in history in n u m b e r of automobiles sold and m a d e . " Taking a poke at the socalled experts, Cope pointed o u t that they had first predicted t h e public would stop buying July 4 ; then Labor D a y - b u t the public would not react to t h e pattern of the prognosticators. T h e r e are still 17 million families that don't own a car; 8 9 % of car-owning families h a v e but o n e car; 2 9 % of the farms have neither car nor truck; nearly 30
