Evening star., 1936-12-13
Store Volumes Are Uneven
in Some Areas Despite
Christmas Buying.
FACTORY INDEX AT PEAK
SINCE NOVEMBER, 1929
Associated Press Average Climbs
to 99.6 From 99.2 Last Week
and 86.7 Year Ago.
BY THOMAS E. FLANAGAN,
Associated Press F.nancla1 Writer


Paced by steel operations industry
strode vigorously forward last week,
while retail trade, although uneven in
some regions, accelerated under fuel
Of Christmas buying.
The Associated Press index Of in.
dustry rose to 996, a peak since the
end of November, 1929. A week ago
1t stood at 99.2, year ago, 86.7.
In its survey of business conditions
in 81 cities for the week ended De-
cember 8, the Department of Com
merce said, With Christmas but two
weeks away, retail trade throughout
the country began to feel the full i'm
pact Of holiday demand.
Although the forward movement
was not uniform, the trend to new
high sales records for the period was
everywhere in evidence.
Even on the Pacific Coast, where
the prolonged maritime strike was
adversely affecting general business
conditions, the demand for holiday
merchandise was sufficient to carry
results ahead of last year." the review
said.
Steel Takes Lead.
Steel operations, rising to the best
output since May, 1890, helped set the
gauge for industry's gains. Output
turned ahead to 76.6 per cent Of ca
pacity, the American Iron and Steel
Institute reported. This was the best
rate since these figures were first pub
lished in October, 1888. 1t compared
with 759 per cent the week before and
557 per cent in the like week Of 1885.
Authoritative sources said steel COM
panies had the largest untitled orders
on their books since 1929 and that
orders still flowed in except in those
products for which books have been
closed at fourth-quarter prices.
Rejecting continued strong demand
for heavy steels and giving weight to
predictions operations will likely hold
at present rates or better during the
next few weeks. Scrap prices were
lifted in leading centers.
No little attention was given the
prediction of the head of the Nations
second largest steel company, Eugene
@. Grace of Bethlehem Steel that
output will be brisk in the first quarter
of 1887 and that higher steel prices
will about Offset recent wage boosts.
The motor industry, which has pro-
vided a strong backbone for rising
business and industry, stepped up op-
erations, thus bearing witness to signs
of better purchasing power. Grams
estimated outturn at 1894 compared
with 100.619 a week ago and 108,592
in the like period last year.
How extra and special dividends,
wage increases and bonuses have
quickened the pulse of buying was
seen in the General Motors Corp. re-
port showing November sales at a
record for that month-155,552 units
against 136,859 in the month a year
ago.
Healthy factor in the motor outlook,
experts said, was the reported current
combination Of heavy demand, ac-
emulation of untitled orders and
comparatively low levels of new cars
on OealerS nanQS.
Shortening of the daylight hours
and bad weather in some regions of
the country were main props which
bolstered production of electricity to
an unprecedented top and held 1t
above the 100000 900 kilowatt-hour
notch for the twenty-second consecu-
tive week. analysts said.
The total of 2,243, ,916, 900 kilowatt
hours, reported by the Edison Electric
Institute for the week ended Decem-
Der 5, was 1879 per cent ahead of the
like 1885 week, a somewhat larger
margin of gain over a year ago than
scored in the week before which in
cluded Thanksgiving.
Topping the freight shipment ledger
was the fact all classes of goods showed
a gain, except ore, haulage of which is
always hampered at this time of year
by freezing of the Great Lakes.
In the week ended December s,
carloadings totaled 744,957, an upturn
over the previous week of 90 per
cent, the Association Of American Rail-
roads reported. Comparison with the
preceding week was distorted by the
slowing down Of shipments by the
Thanksgiving holiday.
Loadings Gain Sharply.
Business observers found the load.
ings gains over a year ago and two
years ago an adequate general yard
stick of recovery progress. Com
pared with the 1885 week the rise was
1877 per cent, compared with 1884
week, 35.1 per cent.
Other high spots on the weeks busi-
ness calendar included: Continued
flow Of more liberal dividends, wage
increases, earnings improvement,
higher railroad earnings, extension Of
the cotton textile boom and new re-
covery highs for lead. zinc, RUBBER
raw hides, wheat, corn and coffee.
On the New York Stock Exchange
shares moved forward as traders
nerves relaxed on amicable settlement
Of the British constitutional crisis.
1t had been the Wall Street view
that postponement of the British mon
archs coronation and holding OF a
general election would have depressed
sentiment toward many world securi-
ties.
Numerous bonds also responded fa-
vorably to the abdication of Britain's
Edward VIII. Focal point Of inter-
est, however. was sharpening of de-
bate on the outlook for interest rates.
AS the week drew to a close con-
sensus was the cost Of money would
probably remain low, thus affording
much potential support for bond
prices.
RICHMOND.-Retail distribution cen.
tered on Christmas and seasonal goods, far
and the like week Of 1888 in the Nth
Federal Reserve district. II pulled whole:
kaEtfIAn R0rafdorahly nhaaA 0f I02A.