Evening star., 1937-02-21
WEATHER SPURS
RETAIL ACTIVITY
ON BROAD FRONT
Major Industrial Barometers
Also Register Advance
During Week.
FACTORIES SPEEDED UP
AS BACKLOGS MOUNT
Soaring Metal Prices Attract At.
tention-Strike Settlements
and Flood Repairs Help.
BY THOMAS Z. FLANAGAN,
Associated preOs Financial Writer

BY THOMAS Z. FLANAGAN,
Associated Press Financial Writer.
Fresh energy was sluiced into busi-
ness and industrial channels from
several sources last week.
Important industrial indicators
pointed higher. Spurred by improved
weather, retail trade advanced over
q broad front.
Looming high on the industrial
horizon were spectacular advances in
pig iron, copper and other metals to
new recovery peaks.
Keystone Of the soaring metal prices
was provided by the steady hammering
out Of more ambitious arms pro-
grams by the worlds leading nations
and by speeding up of the industrial
pace in most countries.
In the background Of domestic
trade and industrial expansion were
the gathering momentum incident to
settlement Of major strikes, food re-
construction and efforts of heavy in
dustry to step up facilities to keep
pace with larger untitled orders.
Index Rises to 1907.
The Associated Press index Of In
dustrial activity advanced to 100.7
from 995 a week ago and 1877 in the
like week last year.
Conditions in New York were
typical of the general situation" said
the Department of Commerce in its
weekly business survey of 81 cities.
"In that city it was found that
with auspicious weather business
spurted strongly and showed wide
improvement over the corresponding
1886 period.
Retail outlets made the best gains,
followed by wholesale and manufac-
turing interests. Although some Of
the increased dollar margin was at.
tributable to higher prices now pre-
vailing, continued broadening of de.
mand was evident" the survey said.
The steel industry pushed opera.
tions ahead to 81.6 per cent of ca.
pacity, the American Iron & Steel
Institute reported. This was the
highest since the institute started re-
porting In 1888 and compared with
8o.6 the previous week and SIT per
cent IN the like week last year.
Steel Demand Scars,
Trade circles stressed rising world
demand for steel. Great Britain1
newly announced armament plans and
the opinion of observers the United
States will need much steel for naval
construction were broad factors which
received much attention in steel circles
surveying the long-term outlook for
the industry.
Thoughts on the stretch immedi-
ately ahead were based on railroad
buying of steel and fresh vitality i'm
parted by General Motors Corps re-
turn to the production line and re-
Mobilization work in the flooded areas.
"The world famine in pig iron, scrap
and steel is having unusual reper-
cussions on this market" said Iron
Age. Upward of 100000 tons of pig
iron have recently been sold to Japan
and large inquiries have come from
England, it was reported.
However, attempts to analyze the
outlook for industry at large stressed
demands for higher wages in both
steel and coal industries.
With General Motors back in the
running, motor output increased last
week to s5,6s8 from 72.492 the pre-
vious week and 69,813 in the like week
Of 1886, Grams estimated.
Freight Loadings Up.
Freight carloadings moved up more
than seasonally. In the week ended
February l3, the total was SOL ,618. the
Association of American Railroads re-
ported. This was an increase Of 2.5
per cent over the preceding week and
9.6 per cent ahead of year ago.
Significant, analysts said. was the
fact all classifcations of freight, ex-
cept coal. gained over the week before.
Sizable upturns in shipments of mis-.
cellaneous freight and less than car
lot merchandise pointed to quickentng
of the general trade pulse.
Output of electricity was a little
lower. In the week ended February
13, production totaled 2,199,860.00o
kilowatt hours, a rise of 1877 per cent
over the like period Of 1886. This
gain compared with an advantage OF
12.1 per cent over last year scored in
the week ended February 6.
Rising Costs Debated.
Advancing prices of raw materials
moving into industry was a focal
point of debate in business circles.
The question was whether rising quo.
tations will provoke resistance. on
the part of consumers when they
turn up in the form of higher retail
prices. ..,
Some suggested that higher farmer
income and wage upturns in various
industries will help lessen the impact
Of predicted advances in living costs.
In the stock market steels and
metals were brilliant performers,
stimulated by the price jumps for the
primary materials. Most. other sec.
tors of the list on the New York
Stock Exchange failed to distinguish
themselves. Mixed price movements
at the close of the week tended to
obscure the markets immediate trend.
In the bond market rail loans were
in demand, some industrial convert.
ible issues under pressure.
Detailed Reports Given.
BosToN-Heavy imports of Australian
wool weakened prices slightly. Shoe fac
tories were busy on. Spring lines. Retail
trade in virtually all sectors was satisfac-
tory and ahead Of 1896 levels.
NEW YORK-Department stores sales
in the New York metropolitan area for
the first IL shopping days this month
were IL per cent ahead of the like period
last year, the Federal Reserve Bank Of
New York reported. .Auas
were up els per cent in Washington for
the week ending February II over the
preceding week and 22.1 per cent over
Richmond and Baltimore also auickensd.