U.S. PRODUCTION FALLS

Chronicle (Levin), 28 May 1949, Page 5

U.S. PRODUCTION FALLS

(N.Z.P.A.-

—Revter.

^ Sharpest Decrease Since End Of War

Copyripht)

Received Friday, 9-50 p.m. WASHINGTON. Mav 26. Industrial production declined for the fifth consecutive month in April and was still falling, the Federal Reserve Board announced today. The Board's production index for April war five points below the Mareh fiviiro bringing it to the lowest level since Tuly, 1947. Coupled with a similar decline in March it marked the sharpss' decrease since the war. Non-durable goods production fell about 4 per cent. in April chieflv be •ause of marked reductions in the textile, paper and chemieal indnstrie^ Durable goods also declined 4 per cent. The Board said the major factor ir fhe general production slump was the .1 per cent. eut in steel output. Business loans of member banks o+' the Federal Reserve Bank dropped fofhe eighteenth consecutive week, indi "ating that private industrv was dis 'ontinuing expansion borrowing pend ■ng a further elarifieation of the general economic outlook. The Gommeree Seeretary (Mr. CharleSawver) tonight advised Amerkar businessmen against "ill-eonsidered and b'ightened aetion in the eurrent eco •lomic situation. " ,He said IJnited States eeonomv was verv sound despitc Mie substantial decrease in ineome in the first quarter of 1949 eompared with the last quarter in 194S. This drop in 'neome, he said. was a "descent from the high inflationary peak to what might properly be deseribed as the normal plateau." . .He said American business "ear nroperly ask the Government to Tefrain from doing those things which business "an do itself, or which would have a denressing and harmful effect upon the verv aetivities which business is trying to maintain." A group of Senate Democrats an nounced tonight that they intended introducing a Bill to provide advance -afeguards against anv sudden nation wide economic depression. The Bill seeks authority for the Government t( take emergencv steps to deal with uaemplovment by Federal grants and loans, a working partnership between Government and business to expanb production and plant facilities, witl Government incentive loans to private industrv aud the stockpiling of plans for public works projects. Tn Ottawa Lord Bovd Orr, former Director-General of ITnited Nation? Food and Agricultural Organisation. said there were alreadv signs of what might become anotlier world economic "risis develojiing in the United States Addressing a luncheon given by the Oanadian Government Lord Bovd Orr said American agricultural and industrial priees were (leclining. "We can't go back to another world crisis. We must not. World prosperitv for agriculture is the only road to peace. " Lord Bovd Orr urged the construction of a strong world food organisatj.Qn, to halt the spread of Communism. He added: "If there is not bolder action on behalf of farmers' security and on behalf of the hungrv. there will be no stopping Commuriism. "