Evening star., 1936-08-23
Retail Volumes Remain Far
Above Year Ago Despite
Warm Weather.
TEMPERATURES CHECK
INTEREST IN FALL LINES
Associated Press Industrial Index
Climbs to 95.7 From 95.1 Last
Week, 1877 Year Ago.
BY THOMAS E. FLANAGAN,

1
Steel and automobile makers pushed
industry forward with contra seasonal
vigor last week, while retail trade,
although blistered by heat in some sec
tions of the country, held wide aggre-
gate gains over last year.
Resuming its climb after a week of
hesitation, the Associated Press index
of industrial activity advanced to 95.7
from 95.1 the previous week and 1877
In the like period year ago.
The Department of Commerce in its
weekly survey Of 35 cities said: "Ab-
normally high temperatures tended to
check the recent display of consumer
interest in Fall merchandise, par
ticularly in Midwest and Southern re-
gions where the heat was more intense,
but retail trade in most cities was
appreciably better than last year and
the current surge in wholesale gained
| impetus.
Aided by the steady flow of incoming
orders the steel industry pushed the
production throttle up to 72.2 per cent
Of capacity from 10 per cent In the
previous week, the American Iron and
Steel Institute estimated. A year ago
output was at 48.8 per cent of capacity.
Ford Plays Part.
Surveying further smart upturns in
scrap steel prices at all important
centers and discussing the possibility
Of higher prices for finished items in
the final quarter steel men said such
an eventuality would whip up another
burst of buying which might exceed
that of June.
BY swinging back into production
of 1885 models after a brief halt the
Fort Motor Co. played an important
part in the sharp upturn in automobile
| output.
The total moved up to 73.7oe units
from 56,638 in the preceding week
and 50,585 in the like 1885 week.
Grams estimated. With three other
companies shutting down production.
motor circles stressed that stoppage
OF output for new model preparations
will be brief.
Good-sized expansion in shipment.,
Of miscellaneous freight and coal
nelped boost revenue freight carload
lngs IL per cent in the week ended
August IS to 736,4s7. a total which
was 1873 per cent over the correspond
ing week of 1895.
While rail experts still look for
robust gains in loadings this Fall from
| general trade and industrial activity
the view is spreading that haulaee OF
grains VIII show marked dent when
crops start the Fall movement to mar
ket. Grain loaded in the latest week
was materially lower.
Generation of electric power in the
week ended August IS turned in a
slight advance and was 14.3 per cent
over the comparable bracket a year
ago. Experts said the industr was ex-
traordlnarily resilient for this season
OF year and ascribed this both to the
continued momentum of heavy indus
trial activity and sustained demand
for power for refrigeration and emer-
gency pumping in some regions.
safes oHSet drought.
Business analysts, still apprehensive
over the possible effects of drought
on purchasing power in afflicted farm
regions, noted that in the four weeks
ended August 4 sales of Seafs-Roe-
buck were 37.3 per cent above the like
period of last year and that the total,
$33, 65,215, was a record for the pc
riod.
Also deemed significant was the
fact that up to the close of July there
had been no slackening in automobile
sales in States which had suffered
most severely from drought crop dam
age.
Although financial markets still had
the nourishment of improved earn
ings and more generous dividends
from virtually all departments of en-
terprise, stocks fell downstairs toward
the close Of the week as selling at
tributed to war scares abroad ap-
peared. In the closing session, how
ever, there was some recovery.
To observers of the foreign scene
the weeks developments of the Span
ish civil war were distasteful. While
the quiet behavior of the foreign mar
kets tended to indicate that no grave
immediate repercussions are expected
on the continent, none the less bank
ing circles said protracted diplomatic
wrangling arising from the Spanish
situation might dull the edge of en-.
thusiasm for domestic recovery.
sure fell on issues with stock conver-
sion privileges and other loans sen.
sitive to the influence of the share
market. United States Government
obligations appeared still to be under
the impetus of Secretary of the Treas.
ury Morgenthaus statement that Fed.
eral revenues are swelling. Some
Treasury securities reached new highs.
Excess reserves fell to $1,000, 900
in the week ended Wednesday from
$3,170,000,0 900 the previous week. The
slash reflected the lifting of reserve
requirements of member banks of the
Federal Reserve system
With the money market remaining
unruffled by this drop, the attention
Of financial circles veered around to
further signs of quickening of the de.
mand for funds for commercial use.
Detailed Reports Given.
Reports of business conditions in
the IL Federal Reserve districts
follow:
RICHMOND. In spite Of heat
business was better than both the
preceding week and the like period Of
last Summer. Leading Washington
retailers reported recovery from tha
slackening Of the previous week and
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