Evening star., 1933-07-21
BUSINESS FORCES
STEADILY AHEAD
Sharp Setback on Markets
Fails to- Halt Rise in
Retail Prices.
Special Dispatch to The Star.

NEW YORK, July 21.-The trend Of
business continued upward during the
week, despite the lack Of any progress
at the London Economic Conference
and in the face of sharp breaks in
commodity and security markets.
Retail prices now are moving rapidly
higher in all parts of the country with
out thus far meeting consumer re-
sistance. The return of warm weather
brought about sharp upturn in many
lines of Summer goods. The rush to
buy merchandise in large amounts
keeps the total of wholesale purchasing
well above comparative totals of last
season, though here and there caution
Is observed.
The increased agricultural spending
power-for the farmers have been
cashing in on the violent upswings in
commodities-and the renewal OF divi-
dend payments on corporate stocks are
expected to contribute significantly to
general purchasing power over the next
few months. Meanwhile the unsold
merchandise held by manufacturers
and distributors has thus far not be-
come burdensome and its early deple-
ton is the aim of the administration IN
Fastening the application of codes and
the expanding of purchasing power.
TextiIe flduS fFOkfcSS.
After one week of operation, the cot
ton textile industry seems to be salts
fed that it is making progress to
adjust itself to the recovery act, though
some leaders frankly are critical about
the way certain mills have tned to
dodge their responsibilities in the mat
ter of providing employment for work
ers thrown out because OF the aboIi-
ton of shifts incident to the shorten
ing of working hours.
'The first recession in II weeks has
appeared in the business activity ba-
rorneter," Dun e. Bradstreet, Inc, ex-
plains in it's weekly national survey OF
business today, due to a minor lessen
ing in steel mill activity and a slight
drop in car loadings."
The pace of car loadings gained SO
rapidly that rail executives were IN
clined to believe the advance would be
slower the next few months. They
pointed out that the week OF July 4,
for instance, was. very unusual, IN tnat
for the first time since 1913 TINS gam
was greater than that usually regis
tered in the week following Memorial
day. a period in which traffic normally
is rising.
Commenting on retail trade, Dun &
Bradstreet report: mot cnly are the
sales totals of such essentials as cloth
ing. dry goods, shoes, dress accessories,
furniture. rugs and hardware running
ahead of the comparative records OF
1882. but automobile sales, both pas
senger and commercial, have continued
the vigorous expansion begun IN April,
and the call for tires and accessories Is
increasing Small rural stores, as
whole, now are going ahead faster thaA
l. 10, lict,y MT
tiers. where wage increases have trailed
by a wide margin the broad jumps IN
the prices of farm products.
Slower Pace Advised.
"Thus far consumers have offered lit
tie resistance to the revised price tags,
but some concern is felt regarding its
continuance Ghe higher price trend)
as the administrations program to give
increasing purchasing power to wage
and salary earners has been achieved
merchandise costs The momentum OF
the current buying wave, however,
hardly will have reached its ebb before
the full effects of the adoption OF the
various codes will begin to exert their
sustaining support.
wholesalers report a brisk demand
for all lines Of spot merchandise, with
buyers taking goods to the limit OF
their credit or sales capacity. Imme-
diate delivery of certain textile items,
however, is impossible. as some of the
cotton mills have sold their output until
October. There has been no diminution,
Of interest in cotton goods, but sales
were restricted somewhat this week be-
cause of the inability to make price
adjustments. The unexpected imposi-
ton of processing and floor taxes, in
addition to the advance made neces-
sary in operating costs by the industry's
adoption of the code, caused the with
drawal of some price lists for revision.
All of the goods sold brought higher
prices than a week ago. Thus far there
have been no cancellations of the ad-
vance orders in textiles. which were
booked subject to the amount of the
Copyright, 1933.)