STATE OF BUSINESS: The Real Pinch Is Here

All along the civilian production front last week, squawks of anguish pierced the air. The defense mobilizers, anxious to speed up the laggard flow of guns, announced second-quarter production quotas which made a deeper slash into civilian goods than most businessmen had expected. The casualties:

¶ The housing industry, which started 1,000,000 houses last year and had expected enough materials to produce 800,000 this year, will get only enough materials to build 600,000. ¶ The appliance industry, which had expected to maintain the 1951 last-quarter production, got another stiff 10% slash (to 45% of pre-Korea output).

Only the auto industry,...

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