Evening star., 1936-09-13
Cool Weather and Opening
of Schools Stimulate
Store Volumes.
DROUGHT IMPROVEMENT
HAILED BY WHOLESALERS
Factory and Trade Comparisons
Both Distorted by Labor Day
Coming Later This Year.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

last week, but retail trade plodded
ahead under the stimulus of cooler
weather in many regions and more
aggressive buying incident to the ap-
proach Of the school season.
Comparisons of both industrial and
trade trends, however, were distorted
by the fact that the Labor day holi-
day fell week later this year than
last.
In its weekly business survey Of 81
cities the Department of Commerce
said: Cooler weather and the OPEN
ing Of schools were factors giving re-
tail trade an upward trend from last
week and a resumption of wider mar
gins over last year in all but q few
sections of the country.
Wholesale activity was generally
satisfactory with optimism resulting
from the improved drought situation, !"
| 1t said.
Factory Index Down.
Despite better than normal show
ings in some divisions of industry.
the Associated Press index of indus
trial activity declined to 936 from
95.2 a week ago and compared with
7o.2 in the like week a year ago.
owing to the Labor day shutdown
steel operations declined to 682 from
7l.5 per cent of capacity the preceding
week and compared with 49.7 per cent
IN the corresponding period last year,
the American Iron & Steel Institute
estimated
Steel circles said a quickening of
production is in the of1ng notwith.
standing the comparatively small de-
mand expected from the automobile
industry. Fresh buying from this
quarter is anticipated by the end of
the month when motor makers swing
into production of new models.
Opinion in some sections was that
recent price advances in many semi
finished and finished steel products
may stimulate buying. Meanwhile
satisfaction was expressed over the
well-sustained orders for structural
steels and advancing demand from
railroads.
| Announcement by a General Motors
subsidiary Of large-scale expansion
and improvement program, swelling
appreciably the total of this work
under way in the industry, was seen
In financial circles as a symptom of
robust hopes for further recovery held
by leading motor executives.
Auto Output Drops.
Automobile production dipped to
26,750 units from 31.628 the week pre-
vious and compared with 1910 last
year, Grams estimated. The drop was
occasioned by preparations for the
output of new models A number OF
companies will likely get operations on
1887" cars under way next week, it
was said.
Freight carloadings increased some
what more than seasonally to the
highest point since the Fall of 1881.
Once more shipments of miscellaneous
freight played an important part in
the rise, but the hauling of grains,
coal and forest products was smaller.
The total of 764, $50 cars reported
by the Association of American Rail-
roads for the week ended September S,
was up is per cent over the preceding
week and 29.2 per cent ahead of the
like 1885 week. The year-to-year
comparison was effected, traffic ana
lysts said. by the inclusion Of the
labor holiday In the comparable week
year ago.
Observers, recalling that the years
loading peak is usually touched
around mid October, said the outlook
Is good for further gains during the
next few weeks.
Power Total High.
Output of electricity for the week
ended September was estimated at
2,100,000,000 kilowatt hours by the
Edison Electric Institute. The total
was somewhat less than the previous
week but 20 per cent higher than the
like 1885 week which included Labor
| day.
A high point on the weeks business
calendar was the uprush of cotton fu-
lures following the Department Of
Agriculture's estimate of a crop Of
11,121 900 bales as of September /.
While the cotton trade had been look
ing for a smaller crop than the H.
48l 900 bales indicated a month ear
lier, the Governments figure was
some 100000 bales under the average
OF private estimates. Advances in
cotton goods followed publication of
the estimate.
Figures on residential building ap-
pearing at the end of the week
brought encouragement to those who
have stressed the importance to busi-
ness of further momentum in the
durable goods sector.
Residential construction launched
in August was the highest since
March, 1881. For the month the total
was $100,522. 500, about 40 per cent
over July and 148 per cent above Au-
gust, 1885, F. w. Dodge Co. reported.
Gains were well distributed geo.
graphically.
Stock Rally Halted.
Equities on the New York Stock
Exchange moved ahead briskly early
in the week, scoring new highs for
the past five years, but later prices
drifted lower as Wall street backed
away for another look at Fall busi-
ness prospects.
Financial outposts gave close heed
to revival Of political and economic
unsettlement In France which brought
in its wake a resumption of the
gold flow from Paris to New York.
Aware that repercussions of the
Spanish civil struggle and fresh arms
expenditures by France might pre-
cipitate another franc crisis, banking
circles could only point TO the past