Evening star., 1937-10-31
BUSINESS SHOWS
FURTHER SIGNS OF
DOWNWARD TREND.
Steel and Auto Productions
Ease With Loadings.
Power Total Up.. r
RETAIL TRADE SP0TTY
BECAUSE OF WEATHER
Wholesalers Report Buyers Timid.
Rain Curbs Shopping in Lead
ing Eastern Cities.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.


Associated Press Financial Writer.
The Nations business showed fur
ther signs of losing momentum last
week.
Lower figures we're posted for tho
manufacture of steel, rail shipments
Of freight and output of automobiles.
The electric power industry, alone
among the major divisions, stepped
up production.
Retail trade was uneven. ruled by
weather conditions. Wholesalers re-
ported buyers timid.
The stock market pushed irregularly
ahead to the best level since the low
of the year touched on October 19.
but in the final session of the week
gains were cut in some issues.
The Associated Press index Of in
dustrial activity dropped to 92.6, the
lowest since the end Of June, 1886.
The week previous it was 94.4, a year
ago 95.7
THE general trend of retail trade
in the final days of October was not
changed materially from conditions
that have prevailed throughout the
MONTH" the Department of Commerce
reported in its survey of business in
35 cities.
Gains Over 1886 Held
"The reports indicated that for the
entire month of October substantial
gains will be registered, as compared
with the same month last year, as was
the case in September. Weather con-
ditions continued to be the dominant
factor in buying.
Rain put damper on shopping
in Philadelphia, Pittsburgh, Boston,
Detroit and New York. On the other
hand, crisp. cool weather resulted in
definite upturns in Chicago, Cleve-
land, st. Louis, Cincinnati, Birming-
ham, Savannah, Louisville, Dallas and
New Orleans.
| Wholesale trade continued quiet.
with buying, for the most part, marked
by extreme caution"
The steel industry slowed down op-
erations to 52.1 per cent of capacity
from 55.8 the previous week. the
American Iron and Steel Institute
estimated. A month ago it was at
74.4 and year ago at TAB.
Steel trade observers said the drop
of recent weeks had been so steep
and so fast as to suggest the bottom
of the slide had been reached. Look
ing back at the record, they said it
was becoming clear steel on consum-
ers' shelves at the close of the sum-
mer was larger than realized by the
industry itself.
Uneven Trend Expected.
Some said demand for steel during
the rest of the year would likely be
spotty. 1t was noted the motor in
dustry had been leveling off output
in order to await the reception Of
new models before going full steam
ahead. Possibly for this reason, it
was said, buying from this quarte.
has been somewhat disappointing.
Although purchases of steel for
heavy construction perked up, signs
| of fresh life in the building industry
was unimpreSsive. Consumption by
| the railroads was said to depend on
rate increases asked by the carriers.
At the close of the week the Asso-
citation of American Railroads decid-
ed to ask permission of the Inter-
state Commerce Commission to boost
| freight and passenger rates. Request
ed upturns, it was estimated, would
bring an additional S500.000,000 an
nually to the roads. This in turn
would doubtless loosen the purse
strings of many systems for new
| equipment. A prime beneficiary of
such a development would be the
steel industry.
1t was noted that in the week ended
October %. railroad freight loadings
had suffered sharply contra-seasonal
decline. In that week the total of 773,-
353 cars was down As per cent from
the preceding week and 53 per cent
under the corresponding week of 1886.
1t was noted heaviest losses oc-
Cured in the movement of miscel-
laneous freight and ore This, experts
said, bore witness to general slacken-
ing of trade and to the slower turn
over of heavy industry.
Normally, the week reported Is the
best of the year. This years total was
909 per cent of average loadings for
the corresponding week Of the pre-
ceding years.
Outturn of automobiles was 90.155
units, compared with 81, ,905 the week
before and 71,095 in the like period
last year, Wards reported. Well-in-
formed motor circles said the outlook
was dim for any broad upswing in
production soon. Most companies, 1t
was said, were expected to hold the
production lever about steady until
they had chance to see how the con-
suming public had reacted to higher
prices.
Power Rate Higher.
The electric power industry pro-
duced 2,281 $4,000 kilowatt hours in
the week ended October %, the Edison
Electric Institute reported. This was
a somewhat better showing than nor
NAL at this time of year in that It
represented a modest gain over the
previous week. The total Was 81 per
cent ahead of the like week last year,
or about unchanged from the rate Of
gain over 1885 which has ruled In
recent weeks.
Along the financial front were seen
symptoms of contraction in business.
Business loans continued to decline,
while currency in circulation fell con-
siderably more than usual at this time
of year.
The bond market swung back and
forth irregularly during the week to
close generally higher. Commodity
prices slid of on the average to the
lowest since October, 1887, with vr.
(sss BUSINESS. Pass Ely