Evening star., 1935-08-11
Brisk Advance Is Expected
to Continue Through
Winter Months.
AUTO AND COTTON MILL
ACTIVITY LAGS IN WEEK
Retail Trade Still at High Levels,
but Some Areas Report
Easing of Advance.
BY RAIDER wINGET,
Associated Press Finsncia. Writer.

ouSlIlCoo dllQ
the Nation paused briefly last week.
surveyed its recovery progress of the
last few weeks, and forecast an imme-
diate renewal of the upswing into Fall
and Winter.
With the exception of automobile
production and cotton manufacturing
activity, the major industrial lndices
we're higher.
Motor makers curtailed their output
sharply to 48,067 units, compared with
AIS during the previous week. The
drop put the level below the CORE
spending week of last year for the
first time in 1888.
When plants resume shortly after
inventory taking production is ex-
pected to swing upward again in
preparation for the November auto
mobile shows which will introduce
1896 models for most producers.
Cotton mill activity was of slightly.
but buying centers asserted much of
the uncertainty in the cotton market
had been removed by approval of
standard clause for contracts cover
ing possible refunds Of processing
taxes should that section of the A. A.
A. be declared invalid.
Report Clarifies Position.
The position of mills in regard to
raw cotton purchases was clarified
with the Government report forecast
ing crop this year 2,603,000 bales
larger than last.
Retailing, in the aggregate, contin-
ued the increased volume registered
in the past few weeks. but there was
evidence that in some sections there
was an easing of the advance.
A change into Fall merchandise was
in progress in most centers and the
wholesale markets in New York and
Chicago reported buyers currently at
tending offerings of goods in the
largest number since 1929.
Many sections of the country noted
an optimistic tone in the talk Of mar
ket executives concerning the out
look for Fall business.
The Department of Commerce in its
report covering 80 cities for the week
ended Wednesday said: Present ex-
pectations are based on a background
of continually mounting retail busi-
ness. unmistakable improvement in the
heavy industries and an upward trend
in most wholesale markets"
Steel Output Levels OF.
AS a barometer of the theory that
industry has paused for the moment,
production of steel advanced from A
to As per cent of capacity, as esti-
mated by the American Iron g. Steel
Institute, but there were authorita-
tive opinions that the present output
will continue for a short time on a
level basis before expanding to meet
the Fall and Winter requirements of
the motor industry and other large
steel users.
The Associated Press weekly index
of industrial activity declined moder-
ately to 1875 from 746 the previous
week and 65.7 a year ago.
The decline was occasioned by the
drop in automobile output which
caused that index to fall to 536 from
76,9 for the previous week
Freight car loadings for the week
ended August we're slightly higher
a reflection in part of the movement
Of new crops to the market.
A few rural areas declared there
was cautious tone to buying because
of the black rust scare in the wheat
section, but other communities were
heartened when hog prices touched
the highest point since August of 1929
Mail Order Nets Soar.
AS an indication of rural conditions.
two large mail order houses reported
mounting sales and profits, and one
house in its Fall and Winter catalogue
lowered prices an average OF 22-lO
per cent.
Some cities, especially New York,
were confronted with strikes and
threatened walkouts of workers on
Works Progress Administration prof.
ects.
Lumber production, which has been
hampered by strikes, was higher for
the week ended August 3, and the
Department of Commerce in a survey
estimated output for the frst six
months of the entire year at the
highest point since 1881.
Excess bank reserves Of Federal
Reserve member banks again reached
a new high point in banking history.
and clearings for the first week OF
August were the highest for that
period since 1881, gain of $50 per
cent over the 1884 week.
Detailed Reports Given.
Detailed reports from individual
Federal Reserve districts for last week
| follow:
BOSTON.-Trade circles noted larger
sales of cotton and a firmer leather
market. Approval Of the standard
clause in regard to cotton process tax
refunds removed market uncertainty,
and sales picked up. Manufacturers
predicted large volume of buying
should develop.
NEW YORK.-Retail trade in the
metropolitan area was reported 10 to
IL per cent ahead of 1894, and
merchants noted an unusual demand
for Summer supplies. A strike of
Works Progress Administration work.
ers clouded the relief picture. The
gray goods market broadened and de-
veloped a brisk tone. Buyers in
wholesale markets increased.
PHILADELPHIA.-Trade and in
dustrial activity held above seasonal
levels, with retailing above last year
by about 5 per cent. Manufacturers
reported slight upswing, partic-
ularly in some textile lines, building
materials and specialized metal equip
ment.
CLEVELAND. - Department store