Evening star., 1936-05-17
BUSINESS RES|STS
SEASONAL SLUMP,
STORE SALES RISE
Customers Undecided Be-
tween Spring and Summer
Merchandise.
INDUSTRIAL PACE HITS
PEAK SINCE MID-1930
Wholesale Markets Hail Recorders
and Awakening of Interest
in Summer Lines.
BY RAIDER WINGET,
ASsnciafpd Press Financial AIrriAnr

Associated Press Financial Writer.
Powerful resistance against the
downward drag which usually develops
as a between-season phenomenon at
this time of year was displayed last
week by American business and in
dustry.
Retail trade on the whole was
higher than a week ago and for the
corresponding period of 1885. but
there was evidence that merchants
catered to customers who were unde-
cided between buying Spring and
Summer merchandise.
Wholesale markets found recorders
for early-year materials in good voI-
ume, but there was an awakening OF
interest in Summer lines.
Industrial activity as measured by
the Associated Press index was at
1913 per cent of the l929-30 average.
new high for this year and the best
level since mid-l93O. The index for
the previous week was revised to 88.4
per cent, and year ago it was ITO
per cent.
Retail Trade Brisk.
The Department of Commerce in its
survey of 35 cities for the week ended
Wednesday found that retail trade
responded briskly TO the first touch
Of midsummer weather, resulting in
a much better volume than the pre-
viouS 1885 week. The rise was
i,,
On wholesale trade. it was stated
that fill-in orders, as well as the up
ward trend in farm implement, con-
struction materials and home fur
nishing demand. boosted sales totals.
Illustrative of the trend was auto
mobile production. which was 1l7l56
units. compared with 1876 units in
the previous week. as reported by
| Grams. The reduction. while slight,
was much less than motor makers Or
dinarily would expect at this time in
the face Of sustained public buying Of
the past few months.
Going back to last month, sta
tistics indicated that April crude
rubber consumption by domestic
manufacturers was 5l897 tons, the
highest on record. During March
the consumption was 42.703, and a
year ago it was 44.247 tons. Such
use of rubber encouraged tire man.
ufacturers to make careful advances
IN prices. which in some cases merely
recovered previous cuts.
Truck Sales Climb.
In the truck field April domestic
retail sales were PAT per cent higher
than the similar month of 1929 and
production was up 76 per cent over
| that comparative date.
Steel mills came under the same
influence. with the rate of production
easing to 69l per cent of capacity.
compared with 70.1 the previous week
and 434 per cent a year ago. That
the rate has not declined much more
is the marvel of the trade.
For coming months, analysts fore
see a continuation of the present
comparatively high level of output
because of the bright prospects for
steel-conSuming industries. Talk Of
higher prices for third quarter de-
livery cropped up during the week.
but some authorities discounted the
discussion because of previous cries
of an impending boost which did not
materialize to the extent hinted.
Cotton manufacturing activity
made a striking refund after several
weeks of decline, and prices of pri-
mary constructions were much firmer
than for many days. 1t was felt by
some that curtailed production sched-
uleS coupled with increased demand
combined to produce the betterment.
Residential building likewise be-
stirred itself and registered am ad-
vance in the Associated Press irdeX
to 434 per cent of the 1e29-30 av-
erageS the highest point of the yesr,
although still extremely low.
LOadings Drop Slightly.
Freight carloadings breasted .he
seasonal downward trend for the week
ended May and dropped only three
tenths of per cent from the previous
week, but the total of 668. .935 cars was
1863 per cent higher than year ago.
In similar vein was the total of
engineering construction awards ior
the week ended May II at $50 ,257 900.
a decline from the week before, but
gain over a year ago.
With the approach of the Summer
| motoring season, crude oil produc-
ton a week ago registered a daily
average of 296l 700 barrels, q new
high point and 43,250 barrels over
the previous week
Again returning to April, the index
of the National Machine Tool Build
ers' Association stood at 1857, COM
pared with 1853 in March and 65.6
in April, 1885.
Money rates in Wall Street we're
raised one-quarter of l per cent to
per cent for call funds and IA per
cent for time money, the best level in
about two years and point at which
leading bankers say they can about
cover costs of such accommodations.
Although Wall Street was cheered
by defeat of the Frazier-Lemke farm
bill in the House, there was conSid-
erable uncertainty engendered by dis
cussions and alterations of the pro-
posals for taxing corporate Surpluses.
Signing of the Franco-American
trade treaty was greeted as a major
step in international trade, what with
a lowering of tariffs and enlargement
Of quotas, but there was some thought
that the entire matter might be upset
IL and when the French franc is re-
valued.
Detailed reports on trade by indi-
Continued o Fourth Page.)