Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-09
HEAT AND DROUGHT
RETARD BUSINESS.
SlackneSs in Commercial and
Industrial Lines Noted
by Reviews.
Special Dispatch to The Star.


NEW YORK, August 9.-Wholesale
and retail buying have been retarded
and industrial activity curtailed to
some extent by the heat and drought OF
the last week, according to the reviews
Of the commercial agencies made public
yesterday. These points are emphasized
above all others, but notice Is taken of
the fact that the aridity has been re-
lieved partly by showers in some of the
MidweStern areas
Bradstreet's reports indicate that the
heat and drought have injected new
and as yet uncertain elements, not only
into the general domestic price situa-
ton, but also continue, as in recent
weeks, to retard wholesale and retail
buying and slow down some industries
which have resumed operations after
the very general shutdowns of July"
These reports also point to partial re-
lief from the intense dryness, mainly as
the result of showers in central areas
east and west of the Mississippi, includ-
ing parts of the Dakotas, Nebraska and
Iowa, and especially aiding to improve
slightly the rather better than earlier
indicated OUTLOOK in the Spring wheat
Northwest"
Better Weather Reports.
Better reports as to weather also
come from many points in the South
east, particularly in the Carolinas,
Georgia and Florida, where past RAIN
fall appears to have been better than
in most of the rest of the country"
Bradstreet's continues. otherwise there
there seems up to the time of writing
to have been little change for the
better in the main central areas lying
between the AlleghanieS and the Rock
les or in the Atlantic States north Of
the Carolinas.
I'm industry the favorable features
this week include a resumption of work
by several hundred thousand employees
Of the automobile industry and con-
tinued marked activity in the making
of gas pipe, with heavy orders booked
ahead. July output Of pig iron and
steel ingots fell heavily from June and
from July q year ago. Stiff prices for
scrap, but ease in several kinds Of auto
mobile steel, were also outstanding fea-
lures. silk manufacturers in July In
creased takings of raw silk heavily as
compared with the low totals of June.
Reports from other industries are
not greatly different from those earlier
noted Bradstreet's report on building
permits in July shows gain at New
York City over June, but reductions
offsetting this at other cities, with very
general decreases from July year ago.
Pacific Coast lumber production Is
about half normal and the same Is true
Of hardwood production in the Middle
Mississippi Valley"
1.-THE status of agriculture, always
highly important because of its funda-
mental bearing on the general economic
situation, has attained the position OF
outstanding prominence" says Dun'S
Review. Prolonged heat and drought
over much Of the eountry have had
their chief damaging in results in the
great corn-producing areas of the Mid
crops and live stock also has been seri-
Gus, and there has been sharp re-
VerSal Of the declining trend of prices
for various farm staples. The latter
movement has lessened the excess Of
recessions in Dun'S comprehensive list
of wholesale quotations, and its tnfiu-
ence was partly reflected in the smaller
ratio of reduction in the monthly index
number.
Forward Needs.
"It Is yet too early accurately TO
gauge the probable effects upon bust
ness of the changed agricultural
prospects, and the"main response thus
far has been in the sensitive speculative
markets. Elsewhere, with few excep-
tions, activity has continued at low ebb,
the normal Midsummer repression of
trade being accentuated by the I'M
usual conditions prevailing this year.
The numerous statistical indices have
plainly revealed the extent of the COM
mercial setback, and no definite uplift
was to be expected during August, but
there is a logical inference in many
quarters that at least some seasonal re-
vival will come with the Autumn.
Conservation, in providing for an
ticipated forward needs, Is nearly
everywhere evident, yet there is the
wholesome aspect now, with the cur
taiIment of manufacturing. of closer
alignment between outputs and sup
plies. That phase, although not of i'm
mediate benefit, is regarded as one of
the basic forces making for ultimate