Evening star., 1934-09-01
TRADE MAKESBES
AUGUST SHOWING
Demand for Credit Stays at
Low Ebb, Asserts A. B. A.
Summary.

Uncertainty in the business outlook
is of a nature that can be dispelled
only by a clear and unmistakable def
milton of the administration pur-
poses, says the September issue Of the
American Bankers Association jour
nal in its business review. Hope for
a substantial upturn in loans to In
dustry rests on a definite reaSsur-
ance to business concerns which are
potential borrowers as to the rules
under which they are expected to
operate and this should be enough to
increase the demand for credit, the
Journal says.
Demand for credit continues at low
ebb in spite of unusual efforts by
banks to discover desirable borrowers,
and despite the strong and constant
support accorded by business anc
banking to sound elements in the Gov
ernment's plan" the review continues.
The drought registered its effects
in a heavy decline in the wholesale
and retail trades in the Central West,
particularly in the st. Louis and Min
neapolis districts, but on the whole the
immediate effects of the calamity were
less pronounced than anticipated.
Richmond Enjoys Gains.
"The Atlanta district continued to
show increased sales over last year-a
condition which has existed from the
beginning of the Governments cot
ton bountieS. Trade in Dallas showed
its first marked decline since jan
uary. Richmond enjoys considerable
improvement over last year,
in New York and New England
trade continued far better than might
be expected though it was becoming
increasingly spotty. New England had
the best tourist season in several years
as reflected in satisfactory retail trade.
Philadelphia similarly showed iIn-
provement in the volume of retail
trade.
THE industrial situation was domt-
mated by the depression in steel. The
general average output for the in
dustry was around 26 per cent of ca
pacity, slightly increased in mid
month by a demand for tin plate for,
canning beef taken of the live stock
market by the Government as a relief
policy, but later reduced by the pros
pect Of lower output in normal fruit
and vegetable canning.
Fall demand for automobile steel Is
now expected to be late as result OF
the policy of automobile manufacture
ers in postpontng bringing out their
new models There is little demand
for any other sort of steel products,
continued delay in the public works
program reducing the demand for
structural steel below anticipation. The
drought also has dimmed the fairly
bright prospects of agricultural i'm
plement makers.
Rayon Demand Improves.
Depression continues in the textile
industries. Although prices Of cotton
goods have risen sharply as a result
of the report Of a short cotton crop
there has been little increase in de-
mand for cotton cloth and produc-
ton continues on restricted basis.
There has been slight increase In the
demand for rayon though as yet it has
not been registered at the mills.
The shoe trade is in the doldrums
because of the uncertainty in the hide
trade resulting from the slaughter of
cattle in accordance with the Govern
ment's relief program. Manufacture
ing activity in general has been highly
irregular and spotty with some de-
crease in employment"