Evening star., 1937-03-14
Easter and Spring Buyers
Crowd Stores Over En-
tire Nation.
INDUSTRIAL AVERAGE
HIGHEST SINCE 1929
Index Rises Further Despite Drop
in Auto Output Due to
Labor Tie-Ups.
BY THOMAS E. FLANAGAN,
Associated Press Flnancla! Writer

A new recovery high for steel output,
sporadic strikes, higher raw material
and retail prices and expanding con-
sumer demand were entered on the
Nations business ledger last week.
Although an abrupt drop in motor
production owing to strikes put a drag
on industryS progress, the Associated
Press index Of industrial activity ad-
Vanced to 1857, highest since Novem-
Der, 1929. A week ago it was 1851,
a year ago BIG.
"Throngs of Easter and Spring
shoppers crowded retail districts
throughout the country, sending the
volume Of trade to higher levels than
the previous week and the CORES pond
ing period last year." the Department
OF Commerce said in its survey of 81
cities. wholesale lines were likewise
buoyant"
Steel production rose to 87.3 per cent
OF capacity, highest since 1929. This
rate. estimated by the American Iron
& Steel Institute, compared with $50
a week ago and 55.8 in the like week
last year.
The spotlight of steel circles was
trained on higher wages. estimated to
cost the industry an additional $780,
100000 a year, price upturns to meet
this bill, and predictions Of leaders in
the industry output would hold ground
gained.
Auto Output Down.
Automobile production dropped to
10l, ,664 units last week from l26.643
the week before, and compared with
1856 IN the corresponding period last
year, Grams reported
Estimates in Well-informed quarters
indicated tina continuation of strikes
in plants now closed likely would cut
production for the month to about
475,OO0 units. This would compare
with around $4,000 in February and
438,S92 IN March last year.
Freight carloadings advanced 54
per cent in the week ended March 6,
an upturn Of more than seasonal size,
traffic analysts said. The total, 734,I27
cars, reported by the Association of
American Railroads, was 1877 per cent
ahead of the like week last year.
Output of electric power was some
what lower at 2,199976,0OO kilowatt
hours in the week ended March 6,
the Edison Electric Institute reported,
Experts said the downturn was prob
ably reflection of weather conditions
and attached more Importance to the
fact the total was 1862 per cent ahead
of the like week of 1896. This afforded
a fair measure of the extent industry
has speeded up over last year and the
way in which home use of power has
expanded, they said.
Consumer Is Watched.
One question pushed more insist
emily into the minds of business OBJ
servers during the week was: Can
higher retail prices occasioned by in
creasing operating costs be readily
absorbed by the ultimate consumer?
Numerous aspects of the problem
were presented last week, but, in the
opinion of veteran business men, time
diOl4C WILL give Vic dL4oN tI.
Non-ferrous metals scored spectacu-
lar advances here and abroad, with
copper tin, lead and zinc in the fore.
Meanwhile cotton was in brisk de-
mand. Rubber and hides jumped to
new recovery highs.
At the same time some prices were
marked up at retail. Notable exam
Piles were shoes and typewriters ard
tires.
As partial Offset to these tenden-
cles were scattered pay boosts in vari-
Gus industries on heels of the steel
wage lifts.
Observers anxious to know whether
purchasing power of consumers Will
be sufficient to absorb higher retail
prices studied the opinion of one
prominent economist, who said he had
no fear of near-term overproduction.
Stocks Are Irregular.
The stock market, traditional ba-
rometer of business sentiment, bore
witness to conflicting cross-currents.
Although some issues on the New
York Stock Exchange went ahead, the
average of prices declined.
In back of the decline, brokers said,
was a disposition of traders to take
profits while reappraisin5 the outlook,
Unsettling sentiment in financial
circles was an abrupt decline Of United
States Government bonds Friday on
the heaviest turnoved in the listed
market since December 30, 1920.
Banking circles said more of the
selling was for banks desirous Of
building up cash in order to meet
higher reserve requirements. Others
noted selling for income tax purposes.
In various quarters the drop was seen
ac fnraSh Gnu-irQ stinnninp intnrest