Evening star., 1936-10-25
INDUSTRY SHOWS
SOME S[ACKEN|NG
|NUPWARD TREND
Steel Advance Is Checked.
Auto Plants Tardy on
New Models.
RETAILERS ANTICIPATE
LIVELY YULE TRADE
Send Large Orders to Wholesalers
in Many Lines-Textile
Plants Rushed.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer

BY THOMAS E. FLANAGAN,
Associated Press Financial Writer
Some signs of slowing in the Au-
tumn industrial recovery pace aps
peared last week.
The key steel industry was checked
on its march toward predepression
levels and motor manufacturers were
regarded as somewhat tardy in swing.
ing into production of new models.
But recovery signals continued to
fly over most sectors of the business
front. Merchants prepared for
lively Christmas trade, sending large
orders to wholesalers in many lines.
Textile mills, particularly, felt the
recent rush of cloth buying and many
had suficient orders to keep busy for
weeks to come.
The Autumn movement of crops to
market, goods from factories to mer-
chants and raw materials to mills,
| found a measure in the advance Of
railroad carloadings to new peak for
the recovery.
Loadings Drop Likely.
Analysts, however, looked ahead to
a seasonal recession in freight traffic
| since loadings usually touch the
years top around the middle Of
October.
Warm weather discouraged shop.
ping for Autumn and Winter goods in
some cities. Generally, though, trade
centers turned in cheerful reports.
The Department of Commerce, on
hoc ~ Eau
said retail trade in the week ended
last Wednesday maintained its gen.
eral forward movement" despite the
handicap of unreasonable weather.
Gains over the same period last
year were made in substantially every
area, although the trends from the
| previous week were generally down.
ward" the Governments survey
noted.
Judged by the Associated Press in
dex Of Industrial activity, production
barely held its ground. The composite
index was 963 per cent of the 1922
80 average compared with 964 the
preceding week and 1873 in the COM
parable period last year. The latest
figure was only slightly under the re.
covery peak
Power Index Unchanged.
Small gains were recorded for cote
ton manufacturing, residential build.
ing and carloadings, taking account
Of seasonal changes. Steel and motor
production indices were lower and the
electric power figure remained un.
changed
Elsewhere bushes sobservers found
another striking budget of recovery
news. Concrete evidence of wide
| spread Summer gains appeared in q
long array Of third-quarter corporate
earnings reports. One compilation Of
reports Of rs industrial concerns
showed an increase of 47.4 per cent in
profits over last year. Gains we're
pronounced in oil, auto parts, chemi-
cal, business machine industries and
among a variety of makers of heavy
industrial products, including rail
equipment.
Profit gains, together with the Fed
eral surtax upon undivided earnings,
expanded the flow of dividends to
shareholders Twelve companies in.
creased dividends the past week, 81
declared extras and 10 paid initial
dividends.
! Autumn pickup was traced in the
most vigorous upturn in business de.
mand for credit banks have seen
on the recovery trail Commercial
loans Of reporting member banks Of
the Federal Reserve System in lead
ing cities have increased more than
S400, 100000 since July.
Federal Spending Heavy.
With Federal spending still at 8
high level, deposits mounted as cash
paid out by the Treasury found its
way into commercial banks. Excess
reserves Of member banks Of the Re-
serve System were up s60,000,0 900 to
50, ,130, 900 900, despite the SO per cent
August boost in Reserve requirements.
While this huge surplus of loanable
bank funds was seen in financial cir
cles as pressing for outlet, security
markets stopped for breath on the
trek up the recovery slopes. Most
stocks drifted somewhat lower and
bonds we're sluggish.
Commodities also pointed a little
lower on the whole, although indus
trial recovery made brisk demand for
important staples, notably copper and
cotton. Domestic copper sales were
the heaviest since the record July
buying in wake of an advance In the
export price of the red metal to 1920
cents a pound, the highest since
early 1881. The domestic price re.
manned at CTS cents.
Statistically, industry retained q
large lead over 1885. The steel op-
Grating rate dropped to 74.2 per cent
| Of capacity from 75.9 the preceding
week, but contrasted with SIS year
before. Carloadings, at 826,155, were
1913 higher than in the 1885 period.
Electric power output was l6.5 per
cent ahead of last year.
Motor production was estimated by
Grams reports at 59.740 units COM
pared with 48,o95 the preceding week
and 62,o15 in the 1885 period. But
(See INDUSTRY, Page Gal
|