AMERICAN CARS.
In' -view of the recent cabled report of a
considerable drop in the price of many t American cars, it is interesting to note that IWord is to hand from an American source that fears are felt that the United States . automobile industry,has grown too fast, and consequently a restriction in output will eventually become necessary. This will entail financial loss, as well as a great labour disturbance, until the market conditions are again adjusted to stability and , compensatory effects have set in. Already there are reports as to Che cancellation of iorders and curtailment of production by makers of the more expensive types of car. Bankers are restricting credit for automobile makers, and in some cases have declined I to accommodate firms handling automobile products. As an indication of the growth of the industry, it is stated by the National Auto-
mobile Chamber of Commerce that the production of cars in 1919 was 1,974-,QOO cars, as against 569,000 in 1914. The capital involved is now 1800 million dollars, as against 400 million dollars five years ago. One result of this phenomenal growth has been that the market has been denuded of, supplies of certain material's used in the manufacture of automobiles. For example, onehalf the production of plate-glass and threequarters of the rubber produced arc for this industry, while practically the whole of the longer staple cotton goes into tyre production. The steel for_ passenger cars alone amounts to two million tons a year. Labour statistics show - that the average wage for automobile works employees averages 31.40d0l (over £6) per week, as against 27.87d0l (£5 10s) as the general average. This applies to the State of New York, and indicates the nature of the inducement to withdraw_ workers from other industries into the growing automobile industry.
The figures relating to convictions for drunkenness in Scotland for five months in 1919 and 1920 show a total increase of 6583 in the latter year.
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Bibliographic details
Otago Witness, Issue 3475, 19 October 1920, Page 42
Word Count
325AMERICAN CARS. Otago Witness, Issue 3475, 19 October 1920, Page 42
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