Television digest with AM-FM reports (Jan 1951-Jan 1952)

CONGRESS BREAKS REGULATION W LOG-JAN: By the time you read this, big push that may break TV sales logjam — relaxation of credit controls — will probably have been completed by Congress. Industry gets all it asked for, and more. Barring veto by President Truman, now deemed unlikely, extension of Defense Production Act will remove Regulation W's barrier to set sales. Senate-House conference committee, writing compromise version of bills passed by both houses, accepted House provisions easing installment curbs (Vol. 7:29). Final bill provides; Down payment of 15%, balance in 18 months — in lieu of present 25% down and 15 months. AND — it also provides that trade-in allowance may be applied toward down payments, or in place of them. Committee action was victory for RTMA, v/hich had asked 90-day moratorium on credit curbs, then 15% down, 18 months to pay (Vol. 7:22), and had been rejected by Federal Reserve Board in several appeals. It was also victory for NARDA, which had proposed the exact provisions finally adopted. Final approval by Senate came Aug. 27, is expected in House Aug. 30. The President must sign measure by Aug. 31, when stop-gap controls law expires. Industry leaders are optimistic, but cautious, about effects of new credit regulation on TV trade. While at first it seemed this was answer to their prayers for relief from inventory stalemate, there's growing realization that major sources of current trade apathy are (1) too easy selling during 1950 boom, and (2) high cost of groceries. But business forecasters generally see better times ahead (see below). RTMA president Glen McDaniel feels new rules "will give the industry the psychological lift it needs to reverse the trend." But he hastens to add they can't possibly bring back the good old days when customers virtually beat down doors to buy TVs. Dealers must still use aggressive merchandising techniques, beat the bushes for customers, he says — but this time it should bring more results. BUSINESS OUTLOOK & TV-RADIO TRADE: Business looks good for the long pull, say the forecasters with almost one accord — but hard-hit TV-radio industry is nevertheless moving very cautiously. Easier credit terms may bring speedier inventory relief, but no one sees repetition of 1950 boom short of opening up lots of new TV markets — unlikely before well into 1952-53 (Vol. 7:29). Right now, trade can take comfort from these assurances in usually very authoritative U.S. News & World Report; "Worried about a general business slump? Forget it. The signs point to prosperity, whatever happens finally in Korea. Figures indicate the present 'slow period' is temporary. They promise new highs in production and trade by early 1952. Outlook varies in different lines. But total spending is to go up. It means a market for almost everything available." On that theme, it states; "Appliance dealers, for example, will begin to fare better after a few more months. Rising income can boost demand for TV sets, refrigerators, toasters even without any easing of Government credit controls." * ^ * Such words are heartening, of course, but right now the TV-radio and other appliance plants are still feeling pinch of shutdowns, layoffs and shortened work weeks forced by heavy trade inventories, slow demand, uncertainty about fall-winter trade. Materials shortages would be factor, of course, if demand were there. This week, more layoffs were reported from plants just resuming post-siimmer production; 200 at DuMont plant in E. Paterson, N.J. ; 400 at Westinghouse appliance plant (refrigerators, etc.) in Mansfield, 0.; 100 at Erie Resistor Co.. Erie, Pa. There probably are many more, unreported. Expectations of most of TV-radio industry were nicely put by Westinghouse division sales manager Joseph F. Walsh to Retailing Daily last week; "I think the 7