Evening star., 1937-11-01
BUSINESS Halls
BETTER MARKETS
Watches Signs Of Strength
and Awaits Response
to Auto Show.
Srecial Dispatch to The Star.


NEW YORK, Nov. 1.-Security
markets were heartened last week
when the Reserve Board cut margin
requirements from SIS to 40 per cent,
effective today, reports Business Week.
Business watched with satisfaction
the signs of strength on security ex-
changes and awaited the public's re-
sponse to the 1888 automobiles, which,
bearing higher price tags, were pre-
sented officially.
Stock prices moved erratically up
ward. A batch of earnings reports
covering the third quarter are now
coming to light, revealing what was
generally eXpected--a narrowing mar
gin of gain over last year. Commodity
prices last week were not doing as
well as had been anticipated, but con-
tinued to go down.
Steel producers weren't enthused
about the rail rate increase as at first
expected, because the. estimated higher
revenues would still be insufficient to
cause any substantial buying of steel
by the railroads. Increased rates on
their own wares the steel companies
plan to shift to their customers
Meanwhile, operations last week dipped
81 points and steel scrap prices fell
off sharply in all districts.
It's beginning to dawn on the steel
men that when they produced ~ per
cent more tonnage in the first nine
months of 1887 than in the same
period last year they provided pretty
hefty inventories for their customers.
Hence the present lack of appetite on
the part of the customers.
Newspapers hope that the selling
season for 1888 models will mean big
ger budget allowances for automotive
advertising. They have reason to be-
lieve that selling isn't going to be a
push-over next year, what with higher
prices and uncertain general business
conditions, and that sales promotion
will have to be aggressive if 4,500,0OO
cars are to be sold
Automotive newspaper advertising
lineage has been shrinking since 1894,
when it made the first post-depression
bulge. Even the first nine months Of
1887 ran per cent under comparable
months of 1886.
From retailers the current reports
are generally good, with credit being
given to the weather. Apparently,
neither stock market breaks nor the
shrinking pay envelopes of wage
earners in industries that are cur
failing operations have had much
effect on the sales records.
But shrunken wages are certainly
factor to be watched over the next
few weeks. Wholesalers and manu-
facturerS are .still handicapped by
the advice going around to buy eau
tiously for the near-term requirements,
though cotton textile buyers are at
tempting to get 1888 deliveries at
current prices. Mills are turning
down such requests in view of the
present disparity between costs and
selling prices, and are hoping that
before many days have passed prices
VIII take an upward turn.
Mems clothing has not been selling
so well this fall and the reluctance
TO buy has extended all the way back
to the WOODEN mills. Last week some
OF the woolen goods manufacturers
resorted to price reduction of 10 to
Is cents yard to attract better buy
ing. 1t is expected that major pro-
ducers will also announce reductions
on the spring and summer suit fabric.
To the man in the street, however,
the cuts will mean q saving of only
so cents suit. manufacturers say.