Evening star., 1934-09-15
BUSINESS INDEX
CLIMBS IN WEEK
First Gain Since July Fl Is
Recorded Despite Labor
Troubles.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. September 15.-Con-
fiicting views as to its continued
strength ushered in the second week
of the textile strike, Business Week
says in its issue today. Many mill
owners have reopened their plants;
on the other hand, strikers ranks
were somewhat augmented by further
strike calls in allied fields Many dis
tributors were not seriously alarmed
by the textile situation. The strike
for them has taken place in an
auspiciouS time while business is pass
ing through an inactive period and
with supplies on hand ample to cover
from to II weeks needs at present
consumption rate.
While the strike is doubtless an
obstacle to immediate improvement
in the business situation. there are
some encouraging factors in this un-
certain period. The Business Week
index of general business activity for
the week ended September shows
the first weekly gain since July 81.
Bank debts rose sharply. Steel opera
tions increased. Retail sales IN Sep
tember are well ahead of last year.
Some trade observers accounted
for the rise in steel operations after
seven consecutive weekly declines by
the fact that various producers, hav-
ing depleted their stocks, speeded up
operations somewhat in anticipation
of possible demand Others feel that
this rise may herald the beginning of
Fall upturn which has been long
overdue. However, new public projects
still afford the best outlook for steel
at the present time and 1t appears
quite likely now that little significant
encouragement may be expected from
the automotive industries as far as
steel demand is concerned, until some
time in November.
Purchases Postponed.
with the filing of fourth-quarter
quotations, consumers emboldened by
this protection against higher prices
are inclined to postpone purchases
until they are assured that these
prices will be maintained or that
lower prices may not enSue. Thus
manufacturers continue their hand
to-mouth buying.
September automobile production
is not now expected to attain the total
of September, 1888. This will be the
first decline under the corresponding
month year ago Many believe that
October will mark the low point in
automobile production. The picture is
not utterly gloomy. With the ex-
ceptionq of these few bad months, the
rest of the year made a good showing.
When new models are launched to-
ward the latter part of the year, the
industry should show marked i'm
provement. Some 1885 models have
been introduced, but their influence
upon the market is insignificant as
industry awaits the plans of the big
three which will not be released till
late this year. OF particular impor-
tance this year will be the price
ranges to be adopted.
Despite protests of shoe manu-
facturers, the United States Govern
ment is proceeding with its plan of
processing cattle hides it has stored
up. 1t is felt that the bulk Of the
leather will then be distributed to
various shoe manufacturers and dis
tributed to the unemployed. Manu-
facturers and retailers feel that the
disposition of so large a number of
shoes cannot help but depress the in
dustry.
Store Sales Well Ahead.
Department stores sales during the
first part Of September are running
satisfactorily ahead of last year. De-
spite the cautiousness of consumers
in filling their requirements, there are
definite indications of improved re-
tail buying which is expected to
strengthen gradually towards the end
of the year. The Federal Reserve
Boards index of department store
sales was 79 in August, larger gain
than expected above July total and
showed a 2 per cent gain above August
last year. Richmond, Atlanta, and
Chicago Federal Reserve districts
showed the largest gains above year
ago.
Coal output for the wek ending
September !, registered another sharp
increase in the expected seasonal ex-
pansion of production schedules. AS
result of decline in consumption of
bituminous and anthracite coal, stocks
on August l were somewhat higher
than in July. An important factor
in the weekly carloadings from now
on is the increasing loadings Of coal.
For the week ending Steptmber l,
total carloadings showed sharp gain
above the preceding week. Part Of
this gain was caused by the accelera-
ton of shipments of merchandise in
anticipation of the textile strike. Mis-
cellaneous and l. c. /. cars loaded
showed gain Of 4 per cent above the
previous week. Traffic continues be-
low year ago.
Electric power output for the week
ending September showed the Sec
ond consecutive weekly decline un-
der the corresponding period of last
year. Only three out Of the seven
major geographic regions showed
gains above year ago"
phNK DCCCDNC pATIO