Evening star., 1934-01-28
BUSINESS MAKES
STEADY PROGRESS
Startling Developments L Lack-
Ing as January Trade Feels
Its Way Along.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 27.-In its
current summary and Interpretation Of
the news of the week important to
business men, Business Week says:
January trade Is feeling its way
along, without any startling develop
ments. Retailers are pretty well salts
fled with the post-holiday buying,
though 1t is asserted that enough far
seeing housewives stocked up on cotton
goods last Summer to make q notice.
able difference In the January white
sales.
Major worry now In many towns.
particularly among smaller retailers, Is
the threat that c. W. A. pay rolls will
be diminished. Many business plans
for the year have been based on the
expectation of Federal expenditure
among consumers.
The steel industry finds things a bit
slow Just now, but knows it is merely
q case of deferred orders. Detroit,
for example, still holds up by pro-
duction difficulties on the new models.
The years first returns on construc-
ton are highly encouraging, particu-
larly because of the showing private
building is making. Other miscellane-
GUS signs Of the times: Coal produc-
ton Is rising despite strike troubles.
Freight traffic is just about what it
should be, compared with last month
that is, little heavier. Consumption
Of electricity also is following strictly
the seasonal curve-it Is falling q little
as the days lengthen.
Building Tapers OF.
Building figures for the first IL days
of the year show tapering of in the
rate of public contract awards, a
heartening improvement in the non
residential structures classification which
Is largely private. The classification
includes factory and other commercial
buildings. The new construction IS
stimulated by stimulants. that is, by
repeal but also by the need Of mod
erniZation to cut costs of manufactur-
ing operations.
Out of a total Of sl0l9 millions in
awards, public works and utilities ac-
count for the predominating share,
s624 millions. While this IL days
total is 46 per cent larger than the
entire month Of January, 1888, it falls
about per cent short of the December
rate. Non-residential building con-
tracts reached S3l.2 millions. the only
group to better its December rate,
and this by the substantial amount
of 80 per cent. Here, too, last Janu-
ary's meager totals have already been
exceeded.
Residential awards are naturally
sluggish In January; this year is no
exception. Only $S3 millions have
accumulated thus far, and the largest
share of these appeared in the Middle
Atlantic States. A good margin is
being maintained over a year ago, and
a fair future has been forecast.
Check transactions are beginning to
widen the spread over a year ago, re-
f1ecting quickening Of pace in secur-
ity markets and general trade. But
the margin is still uncomfortably
narrow.
Auto Engineers Busy.
Automotive engineers are still plug
ging away at the difficulties imposed
by mass production of the new cars,
while the public looks on with dismay
or turns to the enticing immediate
delivery tag of Mr.. Ford. December
sales records for the first 20 States
indicate that Ford swung into first
place. Plymouth into second, while
Chevrolet dropped to third. Such
figures prod the rivals to renewed
efforts, but it is doubtful whether
6QOuRll cars Will Ut plOuuCcu llllo
month to satisfy demand. Many a
hood on the dealers floor would be
abashed to reveal its empty interior.
Meanwhile, leading makers are re-
pricing their cars closer to the 1888
level to hold the market. Apparently
they are banking on volume to over
come the added cost burdens Of wages
and materials. It looks like q year
of keen competition.
Delay in motors is reacting on steel
production, but the prospect Of greater
steel tonnage per car will partially
atone for the annoying postponement
of orders from week to week. The
new models are estimated to require
200 pounds more steel per car than the
1888 models.
Steel mills will have to lean more
heavily on miscellaneous consumers
until motors, rail and construction
buyers decide orders can be held up
no longer. Refrigerator and washing
machine makers managed to roll up a
creditable record in 1888 in spite of
the handicaps of the first quarter, and
with purchasing power prospects bright
er for 1884, they are priming statesmen
and revamping sales talk to make an
even better showing this year.
Business Weeks weekly index of
business conditions showed q prelimi-
nary reading of 66.5 for the week ended
January 20, against q revised reading
of 64.9 for the preceding week and 55.1
a wear ago