Evening star., 1935-10-13


of the dearth of new security issues
to raise fresh capital. A compila-
ton by Moody,s indicates working
capital acquired through security is
sues is trickle now compared with
that in the Coolidge era.
Other Credit Available.
But with plenty of credit available
elsewhere, it Is argued, there should
pe little urgent need for manufac-
turers and others to go into the open
security market for help at this time.
On the textile side of the picture
rayon yarn shipments from plants Of
American producers in September
were higher than ever before. as re-
corded by the Textile Economics Bu-
reau. Wool consumption in August
was at the highest rate since 1923,
and the first eight months Of this
year totaled 81 per cent greater than
the same period of 1884.
Electric power production for the
week ended October 5 was 1858, ,000,-
900 kilowatt hours, an output which
topped the previous record set for
the week of December 81, 1929. after
gaining steadily for many weeks.
The display has been a long-term
growth coupled with betterment due
to the general economic revival, it is
declared by authorities, and should
be discounted slightly on that score.
Freight Loadings Up.
Another outstanding although
slightly nebulous factor in determin-
ing the extent Of statistical pros
perity has been freight carloadings.
Three times in the last four reported
weeks carloadings have passed the
700 ,000-car mark for the first time
since November, 1881.
Such shipments indicate two
things-more merchandise, with en-
phasis on heavy merchandise, is mov-
ing across the country from producer
to consumer, and the activity has en-
tered the so-called profit zone for the
railroads, which need profits now
more than the next fellow.
Automobile manufacturers, who led
the Nations basic industries out OF
the slump, present a confused sta
tiStical picture from the standpoint
of production alone because of the
change this year to new model intro
duction in November instead of Janu-
ary. Month comparatives
are likely to be misleading.
Motor Profits Soar.
An authoritative statistical organi-
cation, however, has estimated that
total net profits of the motor makers
may we'll be nearly double the S8l ,200,-
900 profit of 1884, level which would
be higher than the 1880 profit Of
S14l, 100000, and remarkable when
placed against the loss of S5l SOC, 900
in 1882.
The steel industry, which used to
lean heavily on railroads and now
looks to automobiles for big part
of its demand, snapped out of the
doldrums after the first week in July,
and last week was operating at 49.7
per cent of capacity. The record
follows:
1885, 4s.7 per cent; 1884. 23.2; 1888,
Al: 1882, IT'S; 1881, 20; 1880, SIS;
1929, IS.
The steel men themselves believe
times are getting better. The United
States Steel Corp, Americas largest,
plans an expansion program calling
for expenditures of 100000.
Construction Awakens.
An even heavier industry that has
been even more soundly asleep is con-
but it has awakened. Total
building contracts, computed by the
F. w. Dodge Corp, in August amounted
to s16S, SIT 900, the highest month OF
this year and larger than the monthly
average of any year to 1881, when the
average was s257,737 900.
Residential construction is watched
more closely as barometer, however,
because 1t represents the moving about
Of private capital The best month in
the building season of this year saw
the total at nearly S50,000,000. In
1893 and 1884 the monthly average
was around $20,000,000, while the
average of 1881 was s67,6l6,-
BOO. For the eight months Of this year
The average was $37,l34,000.
Farm Buying Climbs.
And then there are such major items
Is the rapidly growing buying power
If the farm population, the satisfac-
ory margin of gain in retail trade in
both rural and urban centers, rising |
ncome tax payments, the expanding
otal of special dividends. the inching |
.orward of corporate profits, estab-
ishment of the long-awaited price
parity between farm products and
,ther commodities, million-d
,rize fight.
But there is an ugly cap store to
he pretty statistical picture-around
10, ,0O0, 900 unemployed.