Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-31
OPTIMISM IS FELT
ON TRADE OUTLOOK
Auto Business Breezing
bodybuilding Contracts
Continue to Gain.
BY J. c. ROYIE.
lisnatch 10 The Star.

special Dispatch 10 The star,
NEW YORK. July 3l.-Thc sentl-
ment of business men throughout the
country on the prospects for the com.
ing three months is plainly optimistic.
This is shown by the reports of the
regional shippers advisory board TO
the railroads These reports forecast
a volume of business fully up TO that
of the third quarter of 1929, ana In
some lines exceeding it.
The automobile business Is "breez-
ing along" at the splendid pace, and.
best of all, it is under adequate con-
troll, so that the probability of flood
ing the market is not imminent. Al
though Wall Street found much sur.
prise in the semi-anuual report of
General Motors the high profits
shown were no secret in thev8ndustry
itself
The trend in automobiles hSs aided
the demand for automobile sheets, and
steel mills show a slight increase of
activity over recent weeks, spurred
also by new oil drilling campaigns,
plans for new pipe lines. the volume
of canning in progress and construc-
ton and road work.
Building Contracts Gain.
Actual construction contracts let
continue to show marked gains as
compared with July, 1925, and the to-
tai awarded SO far this year mot in
Guiding Government work or small
construction is over $500, 900 900
higher than for the corresponding
period of last year. Lumber orders
to mills increased slightly from a
week ago, but the price trend is off
in some sizes.
Railroad freight movements are
rapidly approaching their annual
peak, with car loadings well above
the 600. 900 a week mark. Harvest
Ing is progressing favorably in many
sections. So far as wheat is con-
cerned. a favorable influence was ex-
erted by the fact that crops of the
Pacific provinces of Canada have suf-
fered by heat and lack of rain.
The unrest prevalent in Mexico has
had the effect of curtailing trade with
that country materially and the
French situation has adversely af-
fected American business with Europe.
But merchants from Central America,
the West Indies and South America
are buying with unusual freedom.
Electric Current Consumption.
The consumption of electric current
Is being maintained at an extremely
high rate and so far there has been no
lack Of service due TO falling of
streams This factor is sure to be less
important this year because of ar
engagements for inter.system hook ups
and because of additions of auxiliary
steam generating plants. Electrical
equipment manufacturers are doing a
business in excess of this time last
year. Much of this is due to demand
for central power station equipment.
With two of the best months of the
year ahead. the increase in gasoline
production seems certain to exceed all
expectations. For the first time in
several years reserve stocks are be-
ing drawn upon. MOREOVER, refiners
are voluntarily curbing output TO
avoid piling up stocks which must be
sacrificed later in the year. Coal
prices are gradually improving in
scattered localities.
The textile industry has taken a
step toward curing its ailments
through organization of A textile in
stitute Whether the individual units
of the industry will take the medicine
handed out by the institute remains to
be seen.