Ike and the Future

BUSINESS

STATE OF BUSINESS

U.S. businessmen took Dwight D. Eisenhower's re-election in stride and with renewed confidence got set for increased plant expansion, rising production and sales.

With steel capacity scheduled to hit an annual rate of nearly 132 million tons by the first of the year, Inland Steel's President Joseph L. Block predicted capacity operations for his company "for at least the next six months." Auto production jumped another 22,000 cars and trucks last week to a total 155,000 units as more factories went on overtime in anticipation of greater sales. Retailers, whose 1956 business for the first nine months is 3% better than last year, saw an even greater increase during the fourth quarter.

Before the New York Society of Security Analysts, 35 topflight economists and businessmen gave a picture of what the U.S. can expect in the next few years.

P: Said Harvard Economist Sumner H. Slichter: "The boom and bust cycles of industry have been greatly reduced. When the auto industry made the mistake of accumulating too large inventories, the effects on the economy were remarkably small."

P:Said Alcoa President I. W. Wilson: "In 1957, we feel that demand will be somewhat greater than in 1956." Aluminum capacity will hit 2,500,000 tons annually by 1958.

P: Said A.T. & T. Treasurer John J. ScanIon: "Telephone service for U.S. homes will grow from 74% of the homes this year to 80% by 1960, possibly as high as 85% by 1965."

P: Said Cerro de Pasco Corp. President Robert P. Koenig: "An increase in free world copper consumption from 3,500,000 short tons to 4,700,000 tons may be expected by 1965."

Consensus: the boom will continue.

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