Evening star., 1937-02-28
Operations at 82.5 Per Cent.
Scrap Reaches Highest
Point Since 1925.
TRADE IN SOME CITIES
LAGS BEHIND WEEK AGO
National Average Well Above Last
Year, With Labor Troubles
Having Little Effect.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

AcoN WONhs
Steel operations drove ahead to a
new recovery peak. Heavy melting
scrap jumped TO the highest point
since January, 1925. And steel plant
expansion was put under forced draft
in some sectors
A spur to excited world demand for
copper, lead, zinc and tin was the &C.
cent put on rearmament by Great
Britain's s7,500 100000 five-year de-
fenSe program.
Less a serious influence on the
weeks business than a cloud on the
horizon of long-term trends were
sporadic strike outbreaks.
The underlying vitality of business
at large, however, was so strong the
Associated Press index of industrial
activity spurted to 1881. highest since
November. 1929 A week ago it stood
at 1907, a year ago 1877.
Lag Appears in Some Areas.
while retail trade in a limited
number of cities dropped off little
from the preceding week, the country
as whole presented a much better
picture than at this time last year."
the Department of Commerce said, re-
porting on 81 cities.
Although there were numerous
labor difficulties, these did not seem to
have much bearing on the flow of
trade, while the settlement of the
General Motors and maritime strikes,
combined with favorable weather con-
tinued strong stimulating influences.
Wholesale trade was very active
everywhere and maintained the strong
upward trend Of recent weeks" the
review said.
Steel operations rose to 82.5 per cent
of capacity. highest since October,
1929. The American Iron & Steel In
stitute estimate compared with 8l6
last week and 52,9 per cent year ago.
Observers noted predictions steel
output will continue at a fast pace and
requests of steel workers for higher
wages. Attention was fixed on the
opinion in trade circles higher wages
mean higher prices for steel.
With the effects of the General
Motors strike fading into the back
ground automobile output expanded
sharply. Production last week was up
to 115,360, highest for any February
week since 1929, Wards reported. The
previous week the total was 88, TAO and
in the like week of 1886 it was 70,516.
Freight LOadings Jump.
Bolstered by sizable gains in ship
ments of miscellaneous freight and
forest products and smaller upturns in
coal and less than carlot movement,
carloadings in the week ended Feb.
ruary 20 rose more than Seasonally.
The total, reported by the Associa-
ton of American railroads was ia.
884, an upturn of 3.4 per cent over the
previous week and up 21.e per cent
over the corresponding week last year
Most arresting phase of electric
power production, experts said, was
the way in which output improved its
gain over last year.
Production in the week ended Feb
ruary 20 was somewhat higher at
2,211 $4,000 kilowatt hours, the Edi-
son Electric Institute reported. This
was 1874 per cent ahead of the like
week of 1886, compared with a rise of
12.7 per cent scored in the week
ended February 13.
Commodity prices reached new high
recovery peaks, led by metals, with
copper as a ringleader. Violent de.
mand in Landon set the pace as the
idea spread through speculative cir
cles there might be scarcity of metals
owing to arms preparations. Prices
receded there later.
Export Copper Scars.
Export copper here rose to 16.47lk
cents a pound, new high since 1929,
and lead, tin and zinc prices also ran
up to best levels since the depression.
In some circles stress was laid on
what was termed speculative buying
in London as force behind the rise.
The point was also made domestic
copper producers would likely step up
output in order to meet swelling de.
mand and to keep prices stable.
The stock market turned in an in
conclusive performance, with prices on
the New York Stock Exchange gyrat-
ing erratically. Although shares came
down the home stretch in a steady
mood, the early part of the week bore
witness to the influence of strike fears
and belief the market might lose sup.
port of foreign buying.
The bond market was irregular.
High spot was a rally in United
states Government obligations on dis.
closure the Treasury would seek no
new money in its March Is financial
operations. This sector met some
pressure at the close of the week,
however.
Detailed Reports Given.
BOSTON:-Woolen and leather markets
we're wa1ntsnfnr tsnsntiy hTmer: Wool and cotton
Shoe production, momentarily Interrupted
by strike in number of New England
when majority of producers granted is
per cent wage increases. Retail trade was
NEW YORK-Department stores re-.
ported business UP more than 13 per cent
over last year and merchants felt that,
notwithstanding one less business day in
1887. February figures would reveal
gain of as much as 8 per cent over last
year the Department of Commerce said.
PHILADELPHIA.-Reta volume was
moderately improved. but the advance was
uneven. Department store reports indi-
month Of at least Der cent over pr last
year. Manufacturing generally was up.
CLEVELAND-The retail merchants
board said sales were better than the pre-
Toledo associates reported dollar volume
up 35 per cent over the previous week.
ICHMOND-Wholesale activity showed
broad expansion in the fifth Federal re.
serve district over last year, but unfavof.
some cities. Promotional UNDERTAKINGS In