Belt Loosened

STATE OF BUSINESS Belt Loosened

The National Production Authority, which has gradually been easing controls on civilian production, last week let out the belt a big notch: P:Automakers, now restricted to making 1,250,000 cars in the first quarter of 1953, will be allowed to make 1,500,000 in the second three months. P:The building industry, which has been chiefly restricted to essential housing and defense construction, will be allowed to start work on schools, hospitals and other public projects, as well as such recreational structures as dance halls, bowling alleys and roller coasters.

NPA lifted the controls because of increasing supplies of materials, particularly steel (see below).

The automen had no doubt they could boost production though, like other industries, they have been hampered by a shortage of manpower. In the past two months, workers have become so scarce that some plants are offering bonuses for new employees brought in. But when tank and Army truck production is cut back next summer (see NATIONAL AFFAIRS), more labor will be available.

The automakers' enthusiasm bubbled over to the New York Stock Exchange, where traders last week flocked to the automotive posts. In heavy buying, General Motors pushed up 3 1/4 points to 67 5/8, Chrysler scooted 2 1/8 points to 88 1/4, and Studebaker jumped 1 3/8 to 38 1/8. With the motors leading the way, the Dow-Jones industrial average moved up 3.14 points during the week to 285.20, the highest point in the postwar bull market.

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