Dividends for All

The dividends of the growing U.S. economy are being widely and liberally distributed. Reported the Commerce Department last week: personal income in June climbed to an alltime peak of $382.9 billion on an annual basis, up $13.9 billion since January and $25.8 billion since June 1958.

With families enjoying the highest incomes in history, the University of Michigan Survey Research Center, which keeps a reliable temperature chart of consumer attitudes, spied a shift in the public mood. In the center's latest survey, out this week, the number of consumers who think the time is ripe to buy a house or used car showed a sharp upswing, and moderate upswings showed up among those who believe it is a good time to buy major household appliances and new cars, undertake large home improvements. The survey pointed out that some part of the public must be getting used to prices once considered "too high," but it warned businessmen that the economy still lacks--and could use--the positive stimulus of prices that most people view as "reasonable."

With an ear to such warnings, businessmen have begun to pay more heed to spreading the dividends of increased production and cost-cutting automation. Last week Goodyear Tire & Rubber announced an "anti-inflation" cut of 5% to 15% in prices of replacement tires. Norge reduced its washer and dryer tags as much as 10%. The Federal Communications Commission chimed in, ordered a reluctant American Telephone & Telegraph Co. to reduce long-distance telephone rates (for calls of more than 300 miles) by $50 million. In heavy industry--where cuts trickle down eventually to the consumer--General Electric lopped 5% to 20% off the prices of some transformers. Following the lead of G.E. and Westinghouse, Allis-Chalmers Co. cut deeply into lists for heavy-turbine generators.

The Agriculture Department had price news that tickled every American right in the breadbasket, just when a rise in the cost of living (see NATIONAL AFFAIRS) was hitting him in the pocket. Prices of beef will slip 5% to 10% in the next few months, and prices of fruits and vegetables will also drop, perhaps enough to pace a dip in the consumer price index.

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