Evening star., 1936-02-23
Many Volumes Below Week
and Year Ago Despite
Special Sales.
DECLINE IN SPENDING
REGARDED TEMPORARY
Shoppers Respond When Condi-
tions Permit-Backlog of De-
mand Is Expected Later.
BY RAIDER WINGET,
Associated Press Financial Writer.

throughout Lne country appleQ lIIe
brakes another notch tighter last week
on activity of the Nations business
and industry, but many analysts be-
lieved the bottom of the temporary
slump has been reached.
Retailers, through special sales and
advance offerings of Spring merchan-
disc in number of centers, were able
to mitigate the depressing influence
of storms, snow and cold. but despite
such enterprise the volume Of trade
frequently fell belowe the previous
week and in some instances under a
year ago.
1t was noted, however, that where
opportunity offered. shoppers spent
freely and with the usual enthu iasm
| for this time of year. The theory was
advanced by some that curtailment of
spending now means merely that sales
are being held in abeyance-not
| destroyed
On the production side, the Asso-
ctated Press index of industrial activ-
| ity declined to 1877 per cent of the
| l929-30 average from 500 per cent
the previous week. the lowest point
since the third week of last october.
Only electric power production and
freight carloadings advanced in the
| index.
Auto Output Lower.
Automobile manufacturers turned
| out 62,813 units, as estimated by
Grams. compared with 75,170 units
the week before, the smallest output
since the third week Of last October.
Authorities said the last six oavs
of the current week should prove TO
be the low point in activity before the
motor makers launch Spring sales
drives and boost production accord
ingly.
Steel mills had difficulty in making
shipments because Of weather, and
there was some concern lest the i'm
pediments prove really serious within
the immediate future.
Nevertheless, production dropped
only 0.3 of 1 percentage point to SIT
per cent of capacity. Demands from
rail equipment manufacturers coupled
with inquiries from auto producers
aided in keeping the rate higher than
year ago.
Cotton Activity Drops.
Cotton manufacturing was reduced.
In primary goods markets activity
declined most of the week along with
prices. but there was revival toward
the end The entire trade still is
adjusting schedules following the
ending of processing taxes.
| For the week ended February Is
| both electri" power produ"tion an'
freight carlcadings were higher than
usual for this tine of year. The A.
sociated Press index of electricity out
put again reached new high in the
history of the industry.
Freight shipments were influenced
by greater coal deliveries, but there
was an advance in merchandise and
some other commodities also. The
movement of 63l ,347 cars constituted
new high for this year as measured
by the Associated Press index.
The performance of rail traffic last
week and throughout the past several
months gave rise to considerable dis
cussion of new bond issues to refund
old obligations bearing higher interest
rates, and at the same time many
! important carriers came into the
market for additional equipment. such
as locomotives, cars. rails and the
other supplies which constitute new
demand on the heavy industries.
| Scrap Steel Climbs.
| Such notable news. with a rise in
scrap steel to a composite price of
$14.33, the highest in around six
years, combined to produce the best
tidings of the week for heavy in
dustry.
The Supreme Courts T v. A. de-
cision at the beginning of the week
upset security markets. but there was
a recovery of losses in all departments
except utility obligations, which. none
the less, rose from the lowest prices
of the week.
Some utility organizations pro-
ceeded with refinancing programs on
the theory that uncertainty was
eliminated, but one large company
stated 1t was abandoning plans to
issue new obligations.
The Department of Commerce sur
vey of business in 80 cities for the
week ended Wednesday declared: Re
tail trade, construction and industry
continued to moderately resist the
pressure of Wlfavorable weather. but
there was some narrowing of the
spread in retail over the comparable
1885 week and slightly more resistance
in wholesale.
Despite low inventories, wholesale
buying Jagged in most cases, due to
the discouraging weather situation
and the difficulty in reaching markets"
Detailed Reports Given.
Detailed reports from Individual
Federal Reserve districts for last week
follows:
BOSTON.-Demands for wool fell
again, stocks of old domestic wool
becoming almost negligible and sales
being supplemented by foreign wools
to the extent of about 100000
pounds week. The cotton market,
however, was firm although not very
active.
NEW YORK.-The weeks retail
trade in the metropolitan area was
about per cent under year ago, but
all Of February Is estimated at 8 per
cent over 1895. Weather was the
paramount factor IN the reduction.
Whisky sales were up around 10 per
cent. The volume of machine tool
orders increased. Food shipments
we're delayed in many cases.
PHILADELPHIA. - Retail trade
1see COLD 0URHS Trade P1Sc =