Evening star., 1936-01-12
Producers and Distributors
Maintain High Rate of
Activity in Week.
WEATHER CUTS RETAIL
SALES IN SOME AREAS
General Industrial Index Rises
Slightly, but Cotton Activity
Records Decline.
BY RAIDER NINGET,

hSSOClaJeQ fTcSS FINANCIAL WTlJers
Producers and distributors in the
first full week of the new year main
tanned the high rate of activity dis
played during the final month of 1895
and in almost all cases swung well
above the level of year ago.
Retail trade, with few minor ex-
ceptions, equaled or exceeded the
volume of business year ago. Weather
played the largest part in cutting down
shopping, but in no section Of the
country appeared any factor which
would indicate the adverse trend was
other than temporary.
Wholesalers. on the other hand.
fought against bewilderment resulting
from elimination of processing taxes
formerly collected under authority of
the agricultural adjustment act. For
a time in some markets the uncer-
tainty spread to lines on which no
such taxes were levied. but majority
of trade reports showed the untsxed
items were demanded by retailers in
good volume.
Substantial Progress Cited.
The Department of Commerce in
it's weekly survey for the week ended
Wednesday for 80 cities declared sub
stantial progress in retail trade was
reported. Promotional sales resulted
in satisfactory buying response.
In the wholesale trade, some hesitation
was reported. due to the confusion over
prices following the A. A. A. decision" :"
Industrial activity. as measured by
the Associated Press seasonally ADJUST
ed index, moved a trifie higher in the
aggregate from the previous week to
65.8 per cent of the 1929-30 average.
Five Of the six component parts Of
the Indicator advanced above the pre-
vious week. Cotton manufacturing, Of
course. dropped a fractiGn OF a per-
centasc point.
Fears that automobile production in
January would turn downward be-
cause of earlier introduction Of models
last year. was diSpelled in part when
$3.50 units were produced, as es-
timated by Grams, the highest level
since the latter part of May with the
one-week exception of the period be-
fore Christmas.
Steel Demand Receivers.
Demand for steel products snapped
back right after the holidays to 492
per cent of capacity, estimated by the
American Iron &; Steel Institute.
Since the recovery was substantially
greater than anticipated by those in
the trade. some were prone to min
imize the possible effects which may
follow a reduction in the use of the
metal for farm machinery, an in
dustry which received a great num-
ber of orders paid for with Federal
funds distributed to farmers as A. A.
A. benefits.
OF the major industries, cotton
manufacturing probably was the most
upset by the Supreme Court decision.
textile trading in some large centers
was halted, and even at week end
there was some doubt as to price
schedules.
Flour millers also faced a dilemma,
Some anticipated sharp increase in
volume because of price cuts and
noted a slight increase Immediately.
Jobbers and bakers we're on a day.
to-day basis at first and then started
replenishing stocks rapidly.
Two major problems, both unsettled,
were whether manufactures will pass
on the tax elimination in lower prices
and whether there is any possibility
that some of the producers will be
able to force a refund of all or part
of processing taxes paid
Depends on Two Factors.
Trade observers felt the outcome
would depend on two factors: Wheth-
er retail prices were raised by the
taxes and whether the manufacturers
passed the added cost on to the con-
sumner.
Two indexes of industrial activity,
electric power production and freight
car loadings, came into last weeks
economic picture only as indicators
of the generally rising trend, since
they are reported for the week ended
January 4.
Power output rose 0.4 of per
cent in kilowatt hours, sending the
Associated Press index to 1865 per
cent of the 1929-30 average, equal to
the peak for the 1856 period be-
cause the gain was more than usually
made at this time of year.
Freight car loadings rose 75,305
cars to a total of 541.9S4 for the
week, slightly more than usual for
the first part of a new year.
Furniture shows in the Midwest
gave rise to predictions of a greatly
improved season. and analysts found
an inclination on the part Of buyers
to seek quality more than in previous
years.
Foreign exchanges, security markets
and commodity exchanges were un-
settled during the week by the Su-
preme Court, q decrease in the French
Bank rate to 4 per cent from S per
cent, passage Of the bonus bill by the
House, and an extension for one year
of the gold reserve act authorizing the
$4,000. .000. 900 stabilization fund and
alteration Of the gold content Of the
dollar.
Greater firmness in the petroleum
industry was envisaged by some au-
thorities as result Of the increase In
the crude oil price which was in
augurated by one company and fol-
lowed rapidly by Others Within a
short time, higher wholesale and re-
tail gasoline prices we're posted in q
very few sections.
Detailed Reports Given.
Detailed reports on business by
Federal Reserve districts follow:
BOSToN-A fair demand for wool
featured the local market. but cot