Evening star., 1934-08-26
BUSINESS CHEERED
AS RETAIL SALES
MOUNT IN WEEK
Long Decline in Industrial
BarometerS Is Checked.
Food Prices Soar.
DEMAND FOR INCREASED
WAGES SEEN COMING
Executives Also Study Effects on
Purchases Of Luxuries and
Semi-Luxuries.
,ecial Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, August 25.-A rise of
to 10 per cent in retail sales, the
smallest decline in industrial barom-
eters since the last week of July, an
advance in food prices to the highest
levels in 31z years, a lessening of
out-of-town buyers, an uptrend in
bank clearings, and the fewest failures
for any corresponding week since 1920
proved the highlights of business this
week.
Wholesale buying was spotty as
business executives. unlike bankers
and brokers, are not convinced of the
proximity of imitation and therefore
are not purchasing for inventories.
Merchants cited Secretary Morgen-
thau's mo gold change" policy and
the export of gold as indicative of
nomination, perhaps forgetting the
nearness Of September Is financing.
Broadened activity in the share
markets following Secretary OF Com
merce Roper's statement that the ad-
ministration backs profits and indi-
vidual initiative, has resulted in bet
ter sentiment in business circles as
well as in Wall Street.
Two Problems Faced.
Rising food prices are presenting
two problems: A demand for higher
wages and salaries, and some lessen
fR..w - alNa. sHF Ia t.rfn
luxuries-trendS which executives in
all fields are studying Travel, how
ever, does not appear to be placed in
the latter classes as agencies here re-
port inquiries and bookings more nu-
merous well into October than at any
time since 1929.
Gain in retail sales Is uneQually
distributed over the country. In the
Southwest the volume Is from Is to 20
per cent above year ago. Southern
and South Atlantic States were helped
by the 12-cent cotton loan, even IL
that loan value proved to be disap-
pointing to spectators. Aside from
the drought region. the Middle West
trade Is better and the reopening of
| factories on the Pacific Coast, follow
LIN bA1C SCtt1CAAC1tS bAlC 4Ok1SSA4OAC-
mems strike, is stimulating business
there.
Leading industrial indices, as re-
ported in the national weekly business
survey by Dun g. Bradstreet, Irfe., are
steadier with electric output near the
years peak. Carloadings, Swelled by
the larger movement Of grain and
live stock; lumber shipments on the
Pacific Coast at their highest level
since July, 1888, and bituminous coal
production for the year to date Is
per cent ahead of the corresponding
period Of last year.
Steel Plants Inactive.
Steel output at 21.3 per cent Of
capacity is at the lowest level since
March, 1888, but the trade under
stands that fourth quarter prices, to
be announced shortly, will be 81 to
SO above current quotations, that pig
iron production promises to point up
and that the 10000 tons of heavy
steel metal. scrap which changed
hands here Thursday was a record
breaker and will provide no competi-
tion. with domestic industry since all
Of this scrap is being exported.
Automobiles attracted more atten-
ton this week because of merger re-
ports than trade news. Raw mate
rial suppliers were told that new
models would be brought out very
late in view of the fact that manu-
factprers were not holding national
show here In January.
feC fCo fr1aE1 1ar1f fokA
perity than pig iron II the causes for
their price movements are overlooked.
With 5000, 900 head of cattle already
purchased by the Government and
more to be bought, the only way out
of excessively high meat prices next
year Is through importations which
may result from tariff treaties. In
view of the export situation, IL is
logical to expect hurried attempt
at some sort of pact with Germany
following the Cuban treaty, after
which several South American coun-
tries will be considered.
With more than a thousand banks
in 46 States cooperating in extend
ing mOdernization credit, according to
Dun & Bradstreet, hopes for the long
awaited revival OF the building trades
have broadened. Then the proposal
to simplify N. r. A. administration
with a new organization set-up is
creating a more cheerful feeling as
business executives are able to pro-
ceed with more confidence.
Textile Trends Mixed.
Textile trends are mixed. Cotton
goods are higher on advancing raw
cotton prices, but exports of the latter
to date this season are disappointing.
Silk is lower, so the trade is putting
much energy to Its national promo
ton plans next month. Rayon Is
unchanged. Buyers and sellers are
far apart on wool prices.
Chain stores are starting TO buy
Juvenile Spring hose. Knitted outer
wear trade is promoting a campaign
of expansion. Underwear lines for
Spring will be presented about Sep
tember 10. A renewed demand for
shoes is expected. Wholesale buying
of rugs has improved. Grocery buy
ing is less active, with wholesalers,
jobberS and retailers in this region not
too anxious to see quotations squirting