0 - 12 Capital Journal, Salem, Ore., Wednesday, Aug. 81, 1949 Wheels in American Mills Begin to Whirl Faster By SAM DAWSON New York VPI For the first time since last November the wheels in America's mills and factories are turning faster. After eight steady months of falling output, the industrial pace has quickened in August, the Federal Reserve Board says today. Flanking this pleasant news are reports of increasing steel production, record auto output, ' reviving department store sales in New York City, and return of workers to refrigerator plants where a spurt in orders is boost lng output. The August revival should bring industrial production back to about the rate of June, the federal reserve board says. The sharp drop in July was chalked up largely to a postwar develop ment the board hasn't yet taken into account when adjusting its index to seasonal factors the spread of the vacation habit through industry. . Many factories were closed down part of the time in July for vacations. When the board set up its industrial production index, a number of years ago, It made allowance for many seasonal variations, but the vacation practice was so little observed before the war in heavy Industry that it was not taken into consideration in the index. Price cuts and hoi weather brought homeowners into the appliance stores in sufficient quantity to cut refrigerator in ventories, and output in the plants is being stepped up again. The National Appliance and Radio Dealers' association js even talking about the short supply of the cooling boxes. It says they 11 be scarce until October, when production will have caught up again. Distrib utors say that two of the com panies are allocating refrigera tors to them again. i New York department stores report sales last week were six "per cent above the like week in ;1948. It has been 20 weeks iince they could report any gain over the previous year. They credit that old stand-by, the weather. Cooler days led shoppers to desert the electric fans at home and traipse through store aisles. The commerce department makes no guess as to the trend in August, but many business men expect that this month's figures will show that' sales of manufacturing companies pick ed up this month, along with their production schedules. Salem Reservists Win High Praise Oceanside. Calif., Aug. 31 Wl Marine corps reservists from Oregon drew praise from Gen. G. B. Erskine, First marine divi sion commander at Camp Pen dleton, yesterday. After more than a week of drills by the men from Portland, Salem and Eugene, Gen. Erskine said: "If I had to bring the division up to full war strength I could fit these reservists units right into it with an additional 10 days' training." The 200 Oregon reservists were flown to Camp Pendleton earlier this month for the two week training. They are work ing with regular marine corps units. Just Arrived Cashmere Sweaters, pull-overs and Cardicans. $8.95 to $16.95 THE SMART SHOP 2 Schools Here Win Citations Englewood and M c K i n 1 e y grade schools in Salem have won national recognition by the United States treasury depart ment for their work in the field of thrift education. Built around the purchase of United States savings stamps and savings bonds, the children receive practical education in thrift. The fall issue of the School Savings Journal published by the treasury's savings bonds di vision and circulated nationally carries an illustrated article fea turing the two schools. The article cites the excellent student participation achieved under Mrs. Dorothy Rea, princi pal of McKinley school. It also quotes a letter from Kay Ru berg, a student at Englewood school, describing the "Stamp Men" bulletin board used in connection with "stamp day" at Englewood school where Mrs. Dorothy Daugherty is principal. 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