Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-06-02
Summary Skies Lift Retail
Volumes Sharply in Sew
eraI Sections.
BUYERS IN WHOLESALE
MARKETS HOLD BACK
Manufacturers Try to Maintain
Quotations-Staples Disturbed
by A. A. A. Questions.
BY RAIDER WINGET.


adjust itself to the resounding Smash
of the N r. A. codes last week.
The Supreme Courts momentous
decision caught industry in a seasonal
decline, but retail trade, hampered
for some time by cool, wet weather,
spurted in several sections to the best
levels since the Easter shopping sea-
son as summary skies sent shoppers
Fastening for warm weather and va
cation merchandise.
Industrial production showed little
immediate response to the decision
of the high tribunal, but prices slump
ed sharply in sensitive commodity
markets. Although manufacturers
tried to hold their price schedules,
buyers in wholesale and primary mar
kets took to the sidelines pending de-
velopments.
What particularly disturbed the raw
staple markets were the questions
raised as to the constitutionality of
the A. A. A. measures. by which farm
staples had been bolstered to levels
sharply above world prices.
The reception accorded the decision
in industry depended largely on the
particular industry. Such lines as
textiles and steel struggled to preserve
the fair practice and pricing provi-
sions of their codes. But such lines
as automobiles and petroleum, in
which codes had been less effective,
seemed more willing to see them go.
Foresee Greater Freedom.
Indeed, some executives expressed
the view that while liquidation of the
ing, the action of the court meant
greater freedom to industry, which in
turn would eventually promote a
broadening of the recovery movement
Scattered labor troubles figured in
the weeks business news and several
business leaders and trade aSsocia-
tons. with the Cotton Textile Insti-
tute playing a prominent part. tried
to promote maintenance Of code wage
and work-hour provisions.
Some of the lumber mills in the Pa
cific Northwest were closed by strikes,
and aggregate lumber production for
the country as whole was estimated
to have fallen abruptly to about one
fifth Of capacity. Peace was reported
returning, however, and saw mill &C
tiTty quickened in the South.
First reports of May building activ-
ity. however. indicated a substantial
quickening of residential construction.
continuing the movement which
started in April.
The latest weekly report of bitumi-
nous coal production showed a gain of
3.8 per cent, and the labor situation in
that industry became threatening with
the breakdown of negotiations for a
new agreement between employees and
employers to replace the present con-
tract expiring June Is.
Indices Reflect Holiday.
Industrial schedules of the last week
reflected in part the Memorial day
holiday. This was most notable in au-
tomobiles. Cram estimated automo-
bile production at 65.675 units, which
was drop of 5000 from the previous
week, but 11,490 over the like week
of last year.
The American Iron and Steel Insti-
tute estimated steel ingot production
at 423 per cent Of capacity for the
week, off S of per centage point from
the previous week and well under the
SCI per cent of the like week of last
year, when the industry received a
rush of orders in advance of expected
thlrd-quarter price changes.
Statistics appearing for the weekly
freight movement showed a substan-
TALLY better than seasonal gain of %
per cent over the previous week, but
the total was A per cent under the
same week of 1884. Electric power
production for the same period de-
clined slightly and its margin of gain
over 1884 was narrowed to as per
cent. compared with per cent the
week before.
District Reports Given.
Reports from individual Federal Re-
serve districts follow:
BOSTON.-The Textile industry,
both cotton and wool, was thrown
into confusion by the N. r. A. de-
cision. New business was reported
in a state of virtual suspense. Cotton
men were discouraged because prices
had just begun to firm. Leather. too,
turned hesitant, although statistically
the position of the industry was re-
garded as strong. ..-'
NEW YORK-In the second Re-
serve district retail trade quickened
sharply with the appearance of warm
weather. Some retail price cutting in
such lines as tobacco and cosmetics
appeared. Wholesale markets slack
ened pending Qualification of the price
structure in textiles and other lines.
NEUTRALITY-SUSPICIOUS. leveled
OF in May in the third district, but
in the main appeared to hold even
with the corresponding period Of 1894.
Sales of department stores and spe-
cialty shops were estimated at to
per cent ahead Of last year.
trade re-
sponded to more favorable weather
with gratifying improvement in the
fourth Reserve area. Building has
improved and bankers note increased
demand for commercial loans. Gen.
eral industrial activity showed little
change last week.
Richmond Gains Held.
RICHMOND.-Busin held its
own and made some gains in the fifth
district. Cotton textile industry, how
ever, was thrown into confusion by the
dropping of the codes, and the slump
In raw fiber prices. The weekly re.
port Of debts to individual bank &C.
counts showed substantial increases.
ATLANTA.-while lumber production
was curtailed in the Pacific Northwest and
the South as increased construction
brought increased demand for building
materials. Retail trade vas widely re.
ations were unchanged to t4.h per cent Of