Evening star., 1936-07-19
INDUSTRIAL INDEX
.H|TSH|GHESTLEvEL
IN OVER SIX YEARS
Retail Trade Also Lunges
Upward Despite Heat
During Past Week.
SHARP GAINS REPORTED
IN WHOLESALE BUYING
Automobile Output Slowed Up as
Temperatures Cause Tenn.
porary Shutdowns.
BY THOMAS E. FLANAGAN,

Associated Press Financial Writer.
Industry kept its contra seasonal
vitality last week and retail trade, al
though hampered by heat in many
parts of the country, surged irregu-
larly forward.
The Associated Press index Of in
dustrial activity rose to 93.1, the high
est level in more than six years. 1t
was up from 926 the previous week
and tit in the like week of 1885.
The Department of Commerce in
its weekly survey of business in IS
cities said: while a great part of the
country remained in the grip of a
heat wave of unprecedented intens-
ity and duration, crop deterioration
was somewhat checked in areas Wis
tied by scattered rains and, despite
some setbacks, retail trade met the
onslaught with renewed strength.
Wholesale business experienced a
livelier tone as Fall buying moved into
full stride with the movement aug
mented by recorders for Summer
items"
Steel Operations Step Up.
The American Iron g. Steel Insti-
tute reported steel operations during
the past week scheduled at a faster
rate-69 per cent Of capacity. COM
pared with 67.2 the week before, and
39.9 in the corresponding week of
1885.
Steel experts said they expect the
August recession to be cushioned by
existing sizable backlogs and we'll
sustained demand from users of heavy
and miscellaneous steels.
Expanding briskly over the previ-
GUS holiday week. electric power pro-
duction for the week ended July IL
advanced to 2,o29, ,7o4 900 kilowatt
hours. or 14.9 per cent above the
similar week year ago.
Grams estimated automobile out
put for the past week at 9l,317 units
compared with 1888 in the preced-
ing week and 83,255 in the like week
last year. The slowing down was ex-
planned by the suspension Of opera
tions in many plants early In the
week owing 10 neat.
Freight Movement Grows.
Freight carloadings for the week
ended last Saturday gained lis per
cent over the previous week. The
total-724,324 cars-was the best
since October, 1885, and was 2s.l per
cent ahead of the corresponding week
last year.
Heavier shipments of less-than-car-
lot goods, miscellaneous products and
grains helped boost the figure. Some
rail experts said drought had not been
as harmful as expected earlier.
Analysts studied estimates indicat-
ing July rail revenues might exceed
the 18 per cent gain over 1885 scored
in June and were heartened by pro-
nouncements of executives of two
major Western systems.
These intimationS of expanding rail
purchasing power cheered equipment
makers. Sharp gain in June orders
was reported by Baldwin Locomotive
S3.299.571 against s1,721, 359 in June,
1885.
Meanwhile. swelling profits of in
dustrial corporations bore witness to
the extent OF business betterment
over the second quarter of 1885. They
were more than third larger. OBJ
servers were impressed with the wide
variety of Industries represented on
the roster of better earnings.
Higher Prices Noted.
Indications that the drought means
higher prices to consumers was seen
in the hoist in quotations of corn
products by leading makers. The sec
ond mark-up this mcuth, bulk prod
ucts moved up 20 cents a hundred
weight The first lift was IS cents.
Equities on the New York Stock
Exchange advanced under impetus
of favorable reports from the trade
and industrial front. The upturn was
registered in spite Of continued polit-
ical tension abroad and what finan-
cial circles termed distant threat
of steel strike in this country.
While corporate bonds were firm.
United States Governments declined
under the heaviest liquidation in sew
eral months. The selling came from
country banks and Wall Street traders
and was prompted by uncertainties
over the long-term effects of the Fed
eral Reserve Boards decision to "lock
up" part Of the enormous supply of
idle bank funds. These funds. some
bankers said, provided possible fuel
for speculation financed on credit.
Richmond Buying Improves.
Individual reports of business in
Federal Reserve districts follow:
BOSTON.-Cotton goods and Leather
markets in New England slowed down
materially, but a cheerful note came
from the electric industry. The wool
trade marked time.
NEW YORK.-Trade withStood heat
steadfastly, with some exceptions.
Manhattan and Brooklyn department
store sales were spotty, but In the
aggregate 1912 per cent higher than
last year Buffalo business continued
active. Heat brought a squirt In re-
frigerators and fans in Rochester.
Summer goods jump
ed on the heat wave. Wholesale
volume was over the preceding week
as retailers bought more than imme-
diate requirements.