Evening star., 1936-08-02
INDUSTRY HOLDS
ABNORMAL SPEED
AS TRADE EXPANDS
Retail Volumes Continue
to Climb Even in
! Drought Areas.
ACTIVITY INDEX SETS
BEST MARK IN 8 YEARS
Wholesale Centers Show Definite
Signs of Sharp Fall Upturn.
Steel Rate Jumps.
BY THOMAS E. FLANAGAN,
Associated Press Financia. Writer.

BY THOMAS E. FLANAGAN,
Associated Press FinanclaI Writer.
Ignoring the tradition of Midsum-
mer dullness industry drove ahead
with abnormal speed last week as re-
tail trade expanded even in parts OF
the country afflicted by drought.
The Associated Press index of in
dustrial activity advanced from 94.2
to 95.3, the highest level in six years.
A year ago it stood at 74.6.
The Department of Commerce in
its weekly business survey OF 81 cities
said, with retail trade throughout
the country moving at higher levels
than during the corresponding period
last year, wholesale activity stepped
out with definite indications Of SUBJ
stantial upturn in Fall trade.
Reports from the various indus
trial centers gave evidence Of sustained
activities in most lines. Transporta-
ton facilities continued to be taxed
heavily to take care of the vast tour
ist trade which was apparently mov-
ing at higher levels than at any time
in recent years"
Steel Near Front.
In the van OF steady progress OF
the durable goods division was the
steel industry, which showed output
UP to the highest of the year.
Steel mill operations rose to It's
from 709 per cent OF capacity the
week before, the American Iron 6
Steel Institute estimate showed. Steel
experts pointed out that although steel
makers worked at "A per cent OF
capacity in the week. including the
July 4 holiday production in that
week was smaller than the period just
closed. In the holiday week, they ex-
planned, the IA per cent of capacity
figure was the result of calculations
based on a five-day week instead OF
six.
Frmer scrap prices in such impor-
tant centers as Pittsburgh and Chi
cago were seen by observers as a
strong intimation of continuation in
August of the better-than-seasonal
rate of steel output.
The re sent accumulation OF orders
for heavy steel has been studied in
the light of increased building actlv-
ity. Engineering construction awards
last week advanced to s34.600,o00
from s21, ,054,o0O in the like week
year ago.
Further emphasis on the steel In
dustry's better than seasonal pace
was afforded by the rise in freight
cars on order on July to the highest
Power Output OFF.
Slightly lower for the week ended
July 25 was electric power output at
,O88, ,284. 900 kilowatt hours. The de-
cline was 6 of l per cent from the
preceding week. when the heat wave
stimulated heavy demand for power
for refrigeration and emergency
pumping in drought regions. The
total was 14.5 per cent ahead of the
like 1885 week, however.
Grams estimated automobile OUT
put last week at 95,970 units, COM
pared with 96,863 in the preceding
week and 6e,415 in the like week
wear ago. Automotive circles saw the
recession as of far less than seasonal
the weIl-sustained rate Of car sales.
A more pronounced production down.
turn is seen as not far distant as
factories prepare for the change over
to new models.
Sharp increases in miscellaneous
freight, coal and ore more thar on
set marked drop in shipmen OF grain
and grain products and pushed freight
car loadings for the week ended July
Is I'D to S731,062, the highest since
October last year. The expansion was
Is per cent over the previous and 22.7
per cent over the like week of 1885.
Soaring grain and other commodity
prices as the result of drought ccm-
manded attention in business cir
cles. A leading producer of corn
products again lifted its prices.
Earnings Watched.
Well to the fore of the weeks busi-
ness budget were reports of improved
earnings by wide group of represent
ative industrial companies and more
liberal dividend actions.
Steel companies included on the
better earnings list we're: United
States Steel, Bethlehem, Jones g.
Laughlin, Republic, Ludlum, Inland
and Midland.
On the roster of more liberal divi-
dend declarations were United States
Steel, Consolidated Edison and Ma
tional Lead.
Bethlehem Steel reported untitled
orders higher than 1928 or 1929. An
other straw in the wind was the %
per cent sales gain of American RAJ
diator & Standard Sanitary Corp. for
the first six months. Both were symp-
tomato of durable goods revival, an
alySts said.
Stock Traders Cautious.
AS the week drew to close two
factors loomed on the financial hori-
Zon and unsettled shares. Stock
traders became fearful that drought
might dent purchasing power in af-
fected regions. They were also mind
full that higher prices for bread and
other foodstuffs may mean less
spending for other products.
At the same time sharpening of
the civil conflict in Spain occasioned
fears of repercussions in France,
where progress has been slow in get
ting finances in order. Weakening Of
the French currency kindled mis-.
givings in financial circles.
Bonds strengthened. some reaching
new highs for the year or longer. A
reminder or easy monay conditions
was the increase of $60,00O.O00 in
excess of reserves to $3,050, 900, 900.
Money market analysts look for con-
tinued low rates even after surplus
banking funds are cut to somewhat
(see INDUSTRY, Page a.)