Evening star., 1935-02-24
Steel and Power Outputs
Drop With LoadingS.
Auto Rate Up.
RETAILERS KEPT BUSY
STOCKING SPRING ITEMS
Seasonal Influences Also Bring
Upturn in Demand for Farm
Implements.
BY RAIDER WINGET,

Whlle some major business lnQlca-
tors pointed downward, consumers
continued buying in the current high
volume the last week.
Steel production dropped from sos
to 49.1 per cent of capacity. Experts
marshaled an imposing array of
causes. Among them were the weather
which hampered rural distribution,
uncertainty over the gold clause de-
cision, and switch in demand to
current requirement away from fu-
ture buying.
Automobile production continued
high, one definite bright spot, and
some reported shortage of low
priced cars. Grams estimated pro-
duction last week at 82,481 units
against 82,119 the previous week.
Some analysts stated schedules were
being set by motor makers for long
pull production.
Electric power production dropped
slightly for the week ended February
l6, movement bit less than ex-
pected, leaving that situation prac-
tically unchanged.
EECIkht LOduiuSS DEUps
Car loadings for the same week fell
1.8 per cent from the previous week
and per cent from the same period
of 1884, an action in the face of an ex-
pected increase. The principal cause
was fall in coal shipments. Miscel-
laneous freight and less than carload
lots were the only sections to increase
Retail trade over the Nation was
spotted by local influences. but Spring
items were being stocked in anticipa-
tion Of a good demand Spring also
caused an upturn in demand for farm
implements.
The long-awaited decision on gold
by the Supreme Court resulted in some
acceleration in textiles and a few
other lines.
Almost all activity subsided by the
next day, reports indicate. with the
New York Stock Exchange losing all
gold decision day gains within the
week.
Retailers who had expected rush
OF buying from consumers were dis
appointed. but some large wholesalers
indicated they would place orders for
future delivery, secure in the knowl-
edge that the value of currency had
not been changed by the decision.
Bankers, however, were cautious in
comments. but felt an expansion Of
long-term credits should develop
shortly, an indication that general
business should expand operation
schedules during the year.
District Reports Given.
Following are reports by Federal Re-
serve districts for last week:
BOSTON-A squirt In cotton textile
orders followed the Supreme Court
gold decision. but a reaction in the
first district brought business back to
previously prevailing levels. Some sub
stantial orders were reported placed,
but refused by mills at prices offered.
A slight increase was reported in
wool business.
NEW YORK-Retail business in the
metropolitan area of New York City
was reported improved against last
year at this time, when blizzard
paralyzed the city, and the rate Of
activity in the second half Of this
month is estimated at better than the
first two weeks. The gold decision
caused a squirt in gray goods, but
activity eased later in the week, with
buyers proceeding cautiously. Little
immediate effect on retail business was
reported caused by the decision. Buff
falo steel activities continued at IS
per cent of capacity.
PHILADELPHIA small gain In
third district retail sales was indi-
Gated for the week ended February 16
over the previous week, and current
activity was placed at to per cent
higher than a year ago. Silk yarn
mills and cotton textile mills reported
more orders received, and the foot
wear trade continued exceptionally
good.
Richmond Gains Seen.
RICHMOND-On the favorable busi-
ness side in the fifth district was sat-
isfactory movement Of wholesale Spring
merchandise, continued strength in
retail sales. and a small increase in
debts to individual bank accounts
Baltimore and Washington reported
strong retail sales, and Baltimore
wholesale trade was at level slightly
under last year.
ATLANTA-Steel operations at Bir-
mingham continued at 55.5 per cent
of capacity, with an increased de-
mand for pig iron, largely for pipe
business, expected.
NEUTRALITY-SUSPICIOUS. business ac-
tivity in the Chicago area of the
seventh district under the spur of
approaching Spring and expanding
use of bank credit was indicated by
a substantial increase in commercial
loans, the first in several weeks,
shown by the metropolitan Federal
Reserve member banks. Retail and
wholesale trade was reported as only
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