Evening star., 1936-09-06
Fall Buying and Month.End
Promotions Bring Good
Response.
ADVANCE is RECORDED
IN HOME CONSTRUCTION
Gains in Loadings and Power Also
Offset Lag in Auto, Steel,
Textile Activity.
BY THOMAS z. FLANAGAN,
Associated Press Financial Writer.

good aggregate gain last week ove-
the preceding period, although the
Nations industrial trend was irregular.
In rs weekly survey of "a cities
the Department Of Commerce said:
Under the stimulus of month-end
promotions, early Fall buying and
more favorable weather, retail trade
over the country generally moved to
higher levels during the week ended
Wednesday.
"The period brought a volume Of
business far in excess of last year and
with but few exceptions the report
gave evidence of substantial advances
over the previous week. Wholesale
markets generally reflected the same
upward progress"
Gains in carloadings. residential
building and electric power output
slightly more than Offset declines in
automobile production, steel mill oper-
ations and cotton manufacturing. The
Associated Press index of industrial
activity rose to 95.2 from s51 in the
previous week and 72.7 in the like
week Of last year.
The week produced two outstanding
trends; An unexpected contra-sea-
sonal gain in freight carloadings and
swift drop in automobile output.
Chevrolet Halts Lines.
The drop in automobile production
was occasioned by the stoppage Of
work on 1886 cars by Chevrolet Motor
Car Co. Observers believe motor out
put has by this time probably sagged
to around the low point for the year.
The total was down to 3l,628 units
from 53,937 week ago and compared
with 34,140 in the same week Of 1885,
Grams estimated.
Motor men, however, focused atten-
tion on predictions of leaders In the
industry that the outlook for sales
Of new cars is bright. Current prep
arations for assembly of 1887 cars
were said to be whirling along and
some said actual production would
likely reach full speed by early Oc.
tober.
Most students of freight traffic had
looked for a slackening in carloadings
and had a pleasant surprise to find
for the week ended August 29 the total
had expanded contra a-seasonally to the
largest since the Fall of 1881.
The 753,742 cars reported by the
Association of American Railroads was
| 2.6 per cent ahead Of the week before
and 1o.7 per cent over the like week
of last year.
Coal Movement Gains.
Observers, attributing the gain to
upturns in movement of coal, rniscels
laneous freight and ores. said it in.
dicated more general business vitality
than expected and well-sustained
progress in heavy industries.
While haulage of grains was again
lower. owing to drought, some believed
the heavy shipments of other products
might prove energetic enough to Offset
the downtrend in grain loadings.
The modest slowing down of steel
operations. experts said, reflected sus-
pension of work at some mills yes
terday, rather than any quieting Of
demand for steels.
Operations were off to It's per cent
of capacity from 72.5 per cent the
week previous and compared with 458
per cent last year, the American Iron
and Steel Institute estimated.
OF prime importance in that 1t in
timated robust demand for steels
was the strengthening of heavy melt
ing scrap prices at Pittsburgh to the
highest point since September, 1929.
Hand in hand with estimates that
| aIa frir ind Strry INV
in the largest third quarter earnings
since 1880 came another rise in elec-
trio power production to a level never
before touched.
In the week ended August 20 the
total was 2,135, ,5e8, 900 kilowatt hours,
jump of lS per cent over the similar
week Of 1885, the Edison Electric In.
stitute said.
Phones Total Mounts.
Telephone installations, commonly
regarded by business analysts as ba-
rometer of conditions, bounded ahead
in August. The Bell system reported
a gain of $1,000 stations. the largest
August upturn on record. 1t COM
pared with a rise Of 27,200 in that
month last year.
Activity in wholesale markets, COM
bined with indications Of expanding
purchasing power over a wide front,
were seen as the basis Of predictions
of a rosy Fall outlook for retailers.
Nevertheless, observers were mind
full of the fact that reports Of Au-
gust chain store sales coming to hand
| aI 1a
been some slowing down in the rate
of gain over year ago. Some be-
lieved this may have reflected both
the effects of drought and q let-down
in the force of bonus spending.
On the financial front attention
was arrested by the push of United
States Government bonds to new
highs. Demand was whetted, banking
circles said. by the Presidents budget
revision which disclosed for the fiscal
year both lower expenditures and
higher revenues.
Treasury Plans Barred.
Also of interest to the financial
community was the disclosure of
Secretary Morgenthau that he would
ask $40O, 100000 new money on Sep
tember Is when the Treasury will
meet maturities Of $514,000. 900.
That demand was brisk following
this for both Treasury and corporate
loans was seen by financial quarters
as symptomatic of continued search
of huge idle funds for employment.
On this score it was noted that ex.
cess reserves of Federal Reserve mem
Der banks rose $70,000,ooo to $780,
000, 900.
Failure Of the stock market to move
forward more aggressively under the
fuel Of continued good business news
was said in Wall Street to have been
In keeping with the tradition of pre-.
Labor day caution.
While both business and financial
circles were somewhat less pre-oc.
cupied with the Spanish civil war last
week. they believed the revival of gold
engagements In Paris for shipment
4