Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-06-23
Industry Surprisingly Stable
and Retail Gains Are
in Majority.
IMPASSE IN WHOLESALE
MARKETS SEEN AT END
Decline in Steel and Automobile
Productions Is Much Smaller
~ Than Expected.
BY RAIDER WINGET.
Associated Press Financial Writer.


riers of economic uncertainties and
the seasonal Summer slump.
In major industrial and production
fields there were slight recessions
in some lines where wider losses had
been expected, and in other lines
there were substantial gains, a con-
dition summed up in the declaration
by economists that production is sur
prisingly steady.
Retailers were made gloomy by rain
and cool weather in the mid-conti-
nent area and in some East Coast
sections. but definite losses from the
previous week were reported in a
minority of districts.
Wholesale trade declared additional
orders Of Summer goods to fill out de-
pleted retailers supplies were salts
factory, and in many lines there were
orders for Fall merchandise with in
terest in the new lines reported high.
Some saw an end Of the inpasSe in
buying which resulted from uncer-
tainties following the death Of the
old N. R. A.
Industrial news of the week was
featured by action in steel and mo-
tors. Operations in the steel indus
try fell OF of percentage point to
3s.3 per cent of capacity, reduction
which was less than expected at this
time. Because of the small receSsions
in output in recent weeks, informed
commentators assert there should be
no sharp drop in Midsummer as has
been experienced in previous years.
Auto Output Helps.
Aiding in holding up steel was the
production of automobiles. The in
dustry in the United States and Can
ada produced 90,561 passenger cars
and trucks, compared with 90,7s8 in
the previous week. as estimated by
Grams Reports, Inc.
For the week ended June IS, pro-
duction Of electric power advanced 10
per cent from the previous week and
as per cent over the same week q
year ago to a point near the peak
for 1885 while car loadings were up
3.5 per cent from the previous week
forth across the country because the
users of coal feared the much-dis-
cussed strike, which, however, was
held in allegiance by presidential in
tervention. Tonnage stocks of coal
currently are reported to be the larg-
est since 1929. condition which has
led analysts to declare there should
be q slump when the difficulties be-
tween capital and labor have been
! ironed out insuring a. continuous sup
ply of bituminous.
With private residential building in
May the highest since January, 1881,
reports of continued activity were
given last week from a number of
sections.
Tool Orders at New Peak.
Keeping pace with construction are
the orders for machine tools, which
in May were the highest in five years
for any similar period. Some quarters
declare the action in that sector sug-
gests a revival in the capital goods
market. a movement which many
outstanding economists count on as
definite break in the depression.
Additional building. plus diminu-
ton IN labor strife, is credited with
boosting the production of lumber.
Advances were more than usual for
this time of year, although orders in
the aggregate were less than the out
put.
Reports continued to be received on
the effect of the abolition of the old
N r. A.-Some favorable, some I'M
favorable-but in the main there re-
NAMED in evidence degree Of eau,
ton about buying for fear price
schedules would be revised down.
ward.
That fear, it was reported In trade
circles, has kept inventories Of retail
ers lower than otherwise would have
been the case. With caution in buy
ing the keynote, analysts declare the
usual Summer slump of business and
industry remains the major retarding
influence at this time, since other
factors are described as healthy"
No immediate effects Of the Roose-
welt taxation proposals were reported
in primary markets, although spec
ulative quarters registered an imme-
diate reaction which developed into
an irregular trend.
District Reports Given.
Individual reports from Federal Re-
serve districts follow:
BOSTON.-Announcement Of fur
Their Government contracts brought
wool market prices back to PREM.
r. A. levels. Hides and leather were
quiet with values firm. Trading was
dull in cotton goods. Sales were mod
crate.
NEW YORK.-Retail trade In the
metropolitan area was higher despite
rain and GOODNESS. Wholesale markets
opened the week with heavy Summer
goods recorders and large number Of
buyers for Fall goods, although Fall
demand eased later. Summer cur
tailment Of cotton mill activity was
reported planned. Buffalo steel activ-
ity dropped 3 points to 80 per cent of
capacity.
PHILADELPHIA In the
third district gained with temperature
rises for the week of June is. Whole
sale and manufacturing lines marked
time at 1894 levels. New building was
reported at low point.
OBSERVATION-DISCLOSURES in steel
activity were registered in Cleveland
and Youngstown. Retail trade was
better but was held back by rain
which also retarded early harvests.
General business showed slight change,
continuing gradual seasonal decline.
ACKNOWLEDGEMENTS see-sawed,
but the upward tilt was more pro-
IContinIIed m Third Pacel