Evening star., 1936-07-26
INDUSTRY IS ABOVE
NORMAL ACTIVITY
WITH FUTURE GOOD
Advance Accompanied by
Resumption of Strength
in Retail Tnade.
STEEL MILL OPERATIONS
STEPPED UP 100 PCT.
New Demand for Basic Metals
One of Weeks Outstand-
ing Factors.
BY THOMAS E. FLANAGAN,
Aesociaten Press Elnanclal Writer

a IaSter IMAM normal Tdte VI lIluuo'
try was accompanied last week BY
resumption of strength in retail trade
aided by cooler weather In various
parts of the country.
The Associated Press index of in
duStrial activity rose to 94.2. the high
est level since Spring, 1880. 1t ad'
vanced from 931 the previous week
and 743 in the like week year ago
In its weekly survey Of business in
SO cities, the Department of Com
merce said: Retail trade throughout
the country attained considerably
higher levels during the week ended
Wednesday. July %. than for the like
period last year. although in Soma
limited areas there were seasonal
recessions.
"A buoyant tone characterized
wholesale activity with orders for Fall
requirements proving . stimulating
factor.
Reports from drought stricken sec
tions of the country indicated that UP
to this time the effects of the drought
have not reached trade channels tc
as great an extent as might have been
feared"
Steel Operations Stepped Up.
The stronger than usual TIDE of in
dustry was typifled by the steel COM
panies, which stepped up mill opera
tions to 70.9 per cent of capacity last
week from 50 per cent the preceding
week and from 422 per cent in the
corresponding week last year, accord
ing to the American Iron and Steel
Institute.
Steel experts said that while buying,
possibly prompted by threats of steel
strikes. had helped boost operations,
the bulk of demand represented needs
Of immediate consumers. Pressure on
mills for rapid-fire deliveries was a
factor which bore out this contention,
observers said.
Demand for Metals.
How the revival of industry has
stimulated demand for basic metals
was seen last week in the copper n
dustry. On Tuesday copper circles
reported the largest days sales on
record-2l2,202, 900 pounds. 1t COM
pared with a previous high of 1877
$4,000 pounds on August 20. 1885.
On the surge OF buying the price Of
domestic copper rose from Ga to ga
cents a pound. the highest since April.
1881. Export copper was . little
firmer at sl2 cents a pound.
The expansion of consumption in
the United States took the total up
to l03,650 short tons for the quarter
ended June 80 from 7925O in the
preceding three months and compared
with $500 IN the like period last
year. the American Bureau of Metal
Statistics reported. Zinc demand also
improved.
Financial Record Brighter.
The weeks financial record was
brighter. 1t included: Numerous wide
second-quarter earnings gains by rep
resentative industrial companies; i'm
provement in June net operating in
come of important railroad systems;
and more liberal dividends by such
major units as Chrysler Corp. and
International Harvester.
Equity prices on the New York
Stock Exchange moved forward some
what hesitantly to the highest average
level since July, 1881. The Associated
Press average of 60 stocks advanced
to $67.9 a share from $6700 a week
ago.
Bonds also improved. Demand fell
to railroad issues in the
and low price ranges and was
by the outlook for sizable
loadings gains next Fall, investment
circles said.
Reports by Districts.
Reports of business in individual
Federal Reserve districts follow:
BOSTON.-Improvement was scored
in two primary markets. Stiffening sole
and side leather quotations brought
to tanners and tended
to jolt shoe manufacturers who have
been looking for cheaper leather. Cot
ton circles reported business placed
for the last six weeks we'll ahead of
production.
NEW YORK.-More favorable shop
ping weather aided wide retail and
wholesale activity. Furniture and
home furnishings promotions turned
in good results. Ready-to-wear cloth
ing made far better comparisons than
recently.
PHILADELPHIA two dull
hosiery makers reported i'm
provement and brighter prospects.
Virtually all manufacturers identified
with the building industry reported a
step-up in orders.
RICFIMOND.-A steady demand for
Summer apparel and vacation necessi-
ties kept retail volume in the fifth
Federal Reserve district above the
same period year ago.