Evening star., 1937-07-18
Buying of Autumn Goods in
Wholesale Market Aids
Trade Upswing.
RISING GRAIN PRICES
BOON TO HEAVY CROP
Commerce Department Reports 81
Key Cities Presenting Better
0utlook-Few Dull Spots.
BY THOMAS E. FLANAGAN.
Associated Press Financial Writer.


The Nations business swung into
faster stride last week after a let
down earlier in the month for Fourth
! of July.
| Steel production took q long leap,
| returning to the highest level since
late May before strikes and the holi-
| day recess had cut operations almost
| to the comparable 1886 rate.
Buying of Autumn goods in whole
sale markets helped keep trade mov-
ing along on fairly even keel despite
the vacation season. Rising grain
! prices poured extra dollars into
pockets Of farmers who have been
reaping the largest Winter crop in
several years.
The Commerce Department. in its
business survey covering 81 key cities,
said retail trade throughout the coun-
try presented a more favorable picture
than in recent weeks"
| Mingled with broad trade improve
ment, the Government survey noted.
were few dull spots and more
optimistic outlook"
In wholesale circles" 1t added,
better conditions predominated with
a steady flow Of fll-in and repeat
! orders"
Steel Jump Is Stimulus.
The post-holiday jump in steel
| output to 827 per cent of capacity
from 67.3 the previous week, as esti-
| mated by the American Iron & Steel
Institute. buttressed the wavering
curve of industrial activity. The
Associated Press index recovered to
1858 per cent Of the 1929-3o level of
industrial operations compared with
104l the preceding week and e3.l in
the corresponding 1886 period.
Electric power production failed TO
meet expectations for the season but
automobile outturn, allowing for sea-
sonal variation, was at a peak for the
year. large movement Of iron ore
and grains Offset some of the loss in
freight traffic in the Fourth Of July
week.
The Commerce Department had
numerous reports of a slowing down
in building activities due to increased
prices for materials and labor dis
turbances
Nevertheless, additional stable in
dustrial plant improvement programs
came to light, including S5,00o,0O0
for new smelter in Hurley. N. Mex,
by Nevada copper and sl2,000,000 for
electric facilities by Public Service Of
New Jersey. June construction In 81
States east of the Rocky Mountains.
as reported by the F.. w. Dodge Corp
was 81 per cent ahead Of the same
month last year and at a peak for
the recovery.
Bond Men Hopeful.
Bond men were hopeful the mid
year recovery in security markets
would encourage increased borrowings
by corporations for plant expansion.
Two important preferred share offer
ings during the week were reported to
have found eager reception In the
capital market. New financing. how
ever, continued to run behind last
year as result of a decline in debt
conversions
~ cNSa& Ivy llldl hcLS uN LIS
died as the midyear rally lost force.
Drawing wide attention in financial
circles were early second quarter cor
porate earning statements Some re-
vealed inroads of higher operating
costs into profit margins. But most
reporting industrial concerns drew in
creased profits from the Spring ex-
tension of the recovery from depres-
sion.
War prospects again excited dis
cussion as Chinese and japanese
clashed and maneuvered armies In the
Far East. Frances floating" franc
took a sharp dive. directing fresh at
tention to fiscal difficulties. But mar
kets outWardly did not seem to have
been perturbed by foreign develop
ments More thought was extended in
Wall Street in an effort to calculate
outcome Of the battle in WASHINGTON
over the court legislation.
A further advnce in United States
Government loans was explained in
some quarters as due to expectation
treasury borrowing would decline,
partly because Of an ebb in the gold
inflow.
! Orders Being Met.
Industry, it appeared sustained
operations in many places by working
OH orders accumulated in the first
half OF the year, notably steel, textile,
machine and rail equipment makers.
There was confidence in many places
the Summer lull would be followed by
more active ordering of industrial
equipment in the Fall.
| While rains broke the hot wave
over wide stretches. merchants noted
brisk demand in leading centers for
Summer clothing, vacation goods and
accessories.
Railroad carloadings for the week
ended July 10 dropped to 682, ,205 from
8o6, 1853 the week before. Allowing for
the holiday, the Associated Press in
dex for rail traffic touched a new peak
Tor the year at 1922 compared with
BIB the week before and 74.7 In the
1886 week.
Automobile production for the past
week rose to 115,3s0 compared with
! 10o,03l the previous week and s7,7es
IN the 1885 week on the rebound
from the Independence day curtail.
ment, Wards Automotive Reports.
Inc, estimated.
RICHMoND-Sligh seasonal trade re-
cession seen. but volume compared favor
ably with last year. Checks cashed in
Richmond dropped nearly S7.OOO,OOO un-
DER previous week. but remained mora
than S2,O0O.o00 above last year. wash
inston department store sales under pre-
vlous week and same 1898 week with
oank clearinss nearly $4,000 900 ahead Of
1886 figure. "
ATLANTA--Reta trade spotty. with
department store trade estimated OF 3 per
cent from average Of previous four weeka.
Steel operations in Birmingham district
holds At ee.2 per cent Of capacity. Crop
conditions generally fair.