Evening star., 1936-08-17
SPENDING CHEERS
SMALLER BUSINESS
Thousands of Firms Doing
WeII-Summer Resorts
Have Busy Season.
Special Dispatch to The Star.

NEW YORK. August l7.--Apart
from the heavy industries that are
booming along without any sign of
Summer let-down, the thousands OF
smaller businesses in the United
States. all employers of labor, are do
ing very well. Summer resorts are en-
joying the best season in many years.
Along the boardwalk in Asbury Park.
N. j., they say they have the best
season in 18 years. Railroad and
steamship bookings testify to the fact
that people have money and are will
ing to spend it.
In general, the business picture is
an encouraging one. Wholesale buy
ing for the Fall season, which COM
menced in July, has been gratifying.
New York and Chicago report the
largest number of visiting buyers on
record. Retail sales, though retarded
in some sections by the drought and
high temperatures, have continued In
other sections to record large gains
over last year.
Store Sales Sustained.
According to a report of the Fed
eral Reserve System, department store
sales were better sustained in July
than is usual in that month. and the
boards index, which allows for a sea-
sonal decline, increased from 80 per
cent of the 1923-1925 average in June
to 81 per cent in July. This level Is
the highest since the middle of 1891
and compares with an average of 79
per cent during 1895. Total sales in
July were IA per cent larger. and. for
the first seven months Of the year. II
per cent larger than in the CORES
ponding periods of 1885.
There are many gueSses as TO where
all the purchasing power is coming
from. Relief programs and the bonus
are cited Bonus bonds redeemed for
cash by veterans totaled 81 ,802, ,050
as OF August 8. But the recovery in
this country is so widespread and 80
general that there must be an explain
alton aside from the bonus payment
Security Gains Cited.
Stock and bond prices have been
rising steadily, even with alarmist
threats of another European war.
And the threat of war cannot be given
as a reason for the revival Of our
heavy industries, as manufacturers in
this country would not be permitted
to ship arms and ammunition as they
did in the last war. About the only
markets that would feel the effect of
a new war would be the grain, cotton
and metal markets.
There was a big jump in foreign
orders in the machine tool industry
during July Orders totaled l6.4 per
cent over June and 252 per cent over
July a year ago The industry was at
the highest July level since 1929.
A favorable report on the steel
industry was issued by the Iron Age.
This authority says that 1T is
sellers market in every sense of the
word the pressure at steel
mills TO get out tonnage rapidly
enough to satisfy insistent consumer
needs is reflected in the scrap market,
where sharp advances have occurred
at all important centers Steel in
got production has declined slightly
this week. from 70 to II per cent,
but the change is accounted for mainly
by the shutting down for weeks
vacation Of two plants in the Pitts
burgh district"
Building Still Climbs.
The contemplated building expendi-
lures for July were the largest. with
the exception OF June, in the last
five years, according to Dun g. Brad
street. The dollar volume OF permits
issued for 2l5 cities for July amounted
to $95,2S1 ,845, compared with sll2,-
640.106 In June and s54,19l.787 in
July, 1885. The increase over last
year was equal to 1913 per cent.
A drop Of III per cent character
lied the report on business failures
for the current period and carried
the total again to a 16-year low,
says Dun & Bradstreet. New cor
porations in July showed a rise. Ex-
ports and imports in June were high
er. United States trade with Canada,
Cuba. Russia and Great Britain shows
substantial increases. Prospects for
the railroads are definitely better.
The effect of the drought is not
yet fully known. In New York State,
an increase in milk prices is expected.
Hogs brought new high prices. The
Alexander Hamilton Institute esti-
mates that farm income during the
last half Of 1886 will show greater
increase over a year ago than dur
ing the first half. when the gain was
ll.3 per cent.