Evening star., 1933-02-26
Progress Interrupted Only
Slightly by UnfavorabIe
Economic Developments.
INDUSTRIAL ACTIVITIES
ON CONSERVATIVE BASIS
Wholesalers Expect Early Gain in
Demands From Retail Dealers.
Shoe Output Large.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, February 25.-Reports
regarding the course of trade were OF
more cheerful tenor this week. revealing
that progress was interrupted but slight
ly by disquieting events which in less
calloused times might have been fraught
with overwhelming retardative inf1u-
enccs, says Dun's weekly report on bus
iness. The general run of develop
mentS was more favorable than other
wise, with the trend in the right direc-
ton. although in relation to seasonal
factors the desired encouragement may
be lacking in some instances. The cur
rent situation provides additional proof
Of the inherent strength of the eco
nomic structure, which continues to
function efficiently, notwithstanding the
handicap of dilated mal-adjustnients in
nearly every one of its divisions.
The process of distribution has not
been halted, despite the curtailed buy
ing power, and persistent efforts to sell
goods in regular way are being re-
warded, provided merchandise of good
quality has brought satisfaction to the
buyer It has been the over-empha-
sized stress on price appeal which has
discouraged consumer interest and
forced shoppers to look with distrust on
all bargain promotions, even when these
may offer merchandise of genuine value.
Sales Of Winter Goods.
The reversion to more moderate tenn
peratures has been accompanied by
some relaxation of the demand for Win
ter merchandise, although the move
tricts, with sales being lost because
stocks have been cleared and retailers
are unwilling to make requirements so
late in the season. The cold weather
during the early part Of the month
helped retailers to reduce stocks to neg
ligible proportions, inventories of such
goods in nearly all stores being lower
than at any comparative period in the
last three years. With the approach of
Spring, more progress Is being recorded
in the movement of seasonal merchan-
disc, and sales of the new styles of suits,
coats, and millinery have in many in
stances equaled the unit volume of last
February. The demand for shoes and
hosiery picked up sharply during the
week, while staple cotton goods and
prints were among the more active
items in the dry goods division. Furni-
ture and house furnishings were in
slightly better demand, but as special
sale events brought response by reduced
prices, dollar volume has dropped below
the normal level While varying opin-
ions are current regarding the actual
status OF consumptive power, sales in
many retail and chain organizations do
not reflect as large a contraction in
unit volume as figures of value indicate.
While Spring buying in wholesale
markets was more accentuated than
during the week preceding, the holiday
on Wednesday reduced the number of
visiting buyers and curtailed the volume
OF recorders. The unfavorable financial
situation in the Middle West slowed
down orders from that source, and the
continued cold weather in most sections
Of the Northwest has retarded further
the tempo which Spring buying should
have reached by this time, after the
good start made during the early part
OF the month. Suits, the cheaper
dresses, cape coats, and accessories
formed the bulk Of the orders in the
women's wear division.
Thus far, only the initial requirements
OF mems Spring suits and topcoats have
been covered, as retailers are said to
be operating cautiously and have de-
ferred the laying Of definite promotion
plans until after the presidential in
auguration. Confidence in a good late
Spring buying volume Is being pre-
dicted on the small advance orders of
most retailers to date, and the known
contraction in inventories, compared
with those of year ago. There is a
strong tendency, however, to keep in
ventories to minimum, with the price
element of major importance. In most
cases, orders are being confined to ship
ments within few weeks, while in
s1stence Is general for merchandise
hi0hor Y,no vy
than could be obtained last Spring.
Industrial Activity.
Industrial activity may best be char
acterized as stationary, for manufac-
turers continue with considerable stocks
Of raw materials on hand, but are not
incurring the labor costs to produce the
finished merchandise beyond that neces-
sary to fill orders They have assumed
the attitude that the time is getting
close when prevailing market dullness
and low prices should give way to
greater activity and higher quotations.
Besides, they prefer not to have too
much Of their production tied up on
low quotation contracts, when they are
confident that firmer and buster mar
continues to be one of the few major
industries showing signs of progress.
The cotton textile industry now is in
thoroughly liquidated position and
stands at point where any appreciable
increase in demand for cotton goods
would raise the use of existing machin-
cry nearly to the peak of productive
capacity and probably create an imme-
diate need for much new equipment. A
better sentiment has become apparent
in all branches of the silk industry,
despite the curtailment of production
by mills, and the lower price levels.