Evening star., 1936-07-05
Store Sales Total Gains
Sharply, Although Drought
Areas Are OF.
INDEX OF INDUSTRIAL
ACTIVITY AT NEW PEAK
Wholesale Centers Busy With Fall
Lines, as Buying Starts
Earlier Than Expected.
BY THOMAS z. FLANAGAN,
Associated Press Financial Writer.

Of contra-seasonal speed as retail trade,
although hampered in some sectors
by drought. enjoyed wide gains in the
aggregate with the aid of vigorous
buying Of Summer merchandise.
The Associated Press index Of In
dustrial activity pushed forward to a
new high for the year at 92.3 per cent
Of the 1929-30 average. Its gain from
9l.3 per cent the previous week was
the fifth consecutive advance for 1885.
Last year the index stood at 720.
The Department of Commerce week.
ly business survey of 35 cities said:
Retail trade was on advanced ground
in all sections of the country despite
conflicting factors of drought. bonus,
weather and vacations. Wholesale
trade is now on Fall lines, with earlier
Autumn buying than had been ex-
pected.
Labor Troubles Feared.
THE publicity given labor prob.
lens was chiefly responsible for the
rise in steel purchases. Advance buy
ing incident to 1887 automobile plans
has already stimulated some indus
trial orders"
Generating power from within the
fuel provided by recent forward mo-
mentum, the four major divisions OF
industry-steel, electricity. automobiles
and freight carloadings - hummed
along at a faster than normal clip
for this season Of year.
Steel mill operations rose to "a per
cent Of capacity, up from 7O2 last
week and the best rate since May.
1880. 1t was the twenty-frst consecu.
tive week in which steel makers kept
production ahead of 1885.
The rate, experts said, reflected the
effort of the industry to score a good
turnout in the week shortened by the
holiday and buying in anticipation OF
third-quarted price increases.
New Power Peak Set.
Electricity production doomed TO a
peak never before touched-2, ,029, ,639.-
900 kilowatt hours, up las per cent
| from the corresponding week a year
| ago. Power analysts said the unusual
lv energetic steel output, sustained
household demand and heavy irriga-
ton pumping on the West Coast hao
boosted the total.
Grams reported output of automo-
biles last week rose to l00,697 units
from SO, sos the week before and $3.50
a year ago. Automobile circles said
better than expected buying of pas
senger cars bad brought June sales at
least up to Mays total or possibly
better. They said bonus spending had
helped turn the trick, but emphasized
the growth of buying power in the
hands of those not veterans.
| Heavier shipments of freight, par
ticularly coal, grain and miscellaneous,
helped lift the carloadings total 3.3
per cent over the preceding week to
1859 The gain over the like week
of l935-157 per cent-afforded a
measure of both general business i'm
provement and better income for the
carriers.
The heavier loadings were studied
in conjunction with estimates which
indicated class l railroads for June
would have revenue of about $780,
600 900, an improvement Of about
S11 900, 900 over May and nearly $50.
100000 ahead of June, 1885.
C. & o. Places Order
| That railroad arrangements were in
better frame of mind was seen in
such items as the order of Chesapeake
& Ohio for 10000 tons of rails and the
order of Southern Pacific for two IL.
car lightweight streamlined trains.
A bright spot on the trade horizon
was the drop in commercial failures TO
the lowest for any week since the Fall
of 1920 and a total 283 per cent under
the like week last year. according to
Dun & Bradstreet
Retail trade experts attached con.
siderable Importance to the faster
movement of heavy types of merchan-
disc into consumer channels. Demand
for furniture household equipment
and radios showed, they said, that
wants long deferred in the past sew.
eral years arc beginning to be salts.
fed more aggressively.
In the theater Of international re.
lations, which commands the atten-
ton of trade and financial quarters
kcharting the long-term course, one
factor stood out: Worry over the sta.
bility of the French franc abated.
Banking circles noted the upSwing
of $230,000,00 in excess reserves to
$2,670, 900, 900 and the jump in mone-
tary gold to the unprecedented high Of
$10,6l2, 100000. Swelling surplus bank
funds, they said. implied continued
low money rates. The bulge in gold
stocks was seen as an aftermath Of
the flight of gold to this country from
France following recent political and
financial troubles.
Measured by the Associated Press
average Of so shares, the stock market
was unchanged at $40. Financial
circles said its action was inconclusive.
Prices were a little under the April
tops. -r
Detailed Reports Given.
! Detailed reports on business in Fed
eral Reserve districts follow:
BOSTON.-Textile plants reported
an active demand for finished goods.
with many retailers making belated
attempt to cover seasonal require
ments. The Commercial Bulletin re-
ported let-down in wool activity, but
said prices were steady.
NEW YORK.-Merchandis moved
into retail channels at pace II to IS
per cent ahead of last year. The
demand for Summer apparel was
strong and vacation needs stimulated
activity.
PHILADELPHIA.-Tr fell or
! CONTINUED on Third Page.)