Evening star., 1937-02-07
Retail Business Develops
More Equilibrium and
CIingS to Gains.
STEEL ACTIVITY GAINS,
OTHER BAROMETERS OFF
Floods and Motor Strike Remain
Major Influences-Maritime
Truce Is Hailed.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

Although floods and the motor
strike continued to buffet shock troops
of the Nations business last week,
energy for further assaults toward the
recovery objective remained strong.
The steel industry refused to turn
aside, but other major industrial divi-
sions did falter while retail trade
in most regions developed more
equilibrium and clung stubbornly to
gains over a year ago.
The Associated Press index Of in
dustrial activity declined to $50 from
the adjusted figure of 99.8 for the
previous week and compared with
804 year before.
while retail trade throughout the
country generally continued in larger
volume than last year at this time,
the effects of the flood, both favor
able and unfavorable, were becoming
daily more apparent" the Department
of Commerce said in its weekly survey
of 81 cities.
1.-THE settlement Of the maritime
strike was hailed with enthusiasm by
business interests on the Pacific Coast,
but in the East nervousness became
more apparent with the prolongation
Of the General Motors STRIKE" the
Review said.
Steel Industry Revives.
A snap-back in production in areas
hit by floods and further signs of
reviving vitality in heavy goods helped
the steel industry to stiffen its
backbone.
Output rose to 1916 per cent Of
capacity from 77.9 week ago and
so per cent in the like week last year.
the American Iron and Steel In.
stitute reported.
Strength in scrap steel prices. the
industry's thermometer, told Of ro-
bust conditions. Diagnosis indicated
further improvement in the offing.
Offsetting reduced consumption from
the motor industry were several fac
tors. Railroads continued their drive
to repair and replace equipment.
Meanwhile estimates from steel
makers indicated the industry itself
will be no laggard in new construc.
ton work with nearly $30o,000,0 900
expenditures planned for the current
year.
Automobile output slackened to To-.
295 units from 74.148 the week before
and compared with 70,875 in the like
1886 period.
Trade circles said that as a partial
result Of the General Motors strike
other makers have been selling cars
more aggressively. At the same time
some observed sales of used cars has
proceeded briskly.
Power Output Declines.
Floods, strikes and mild weather
cut consumption of electricity, experts
said. For the week ended January 80
output was somewhat lower at 2.
2l4,654.000 kilowatt hours, a gain of
1873 per cent over last year, the Edi-
son Electric Institute reported. In
the preceding week the advantage
over last year was 1877 per cent.
Also showing the inroads of floods
in some measure were freight car.
loadings which declined contra-se
sonally in the week ended January 80.
The total of 659,790 cars was 1.6 per
cent under the preceding week, the
Association of American Railroads re-
ported, but 81 per cent ahead of the
like week Of 1886.
Business observers swung sights
ahead once more to appraise likely
repercussions of floods Damage has
been substantial in many centers. Re.
habllitation work, 1t is held, however.
will place numerous orders for new
business on the doorsteps of COM
panies in a wide variety of industries.
Rebuilding Started.
Interest was focused on early
symptoms pointing to rebuilding. One
company, the Louisville Paint &
Varnish Co.. with its announcement
OF plans to spend $250,0O0 i'm
mediately for replacement, provided
analysts with sample Of how work
will get under way.
Industries likely to receive orders,
business men said, include: Steel.
cement, lumber, household furnish.
ings, electrical equipment, glass, paint
and producers Of various staples such
as metals.
The stock market, advanced,
faltered following announcement Of
President Rooeevelt's plans for re-
adjusting the judiciary and then re.
covered as the weeks trading drew to
a close. High-water mark of trading
was the rise Of United States Steel
to 500 share for the first time
since May. 1881.
The bond market distinguished IL.
self principally by the clamness with
which it received the Federal Re-
serve Boards decision to boost bank
reserve requirements the full allowed
limit.
Detailed Reports Given.
BOSTON-Operations of cotton. wooIen
and shoe factories continued at q high
reported. would further sumuiate the
IN EIEW WI XEoRKT7Retail S r! and wholesale trad.
STRIKE has caused concern to business
PHiLADELPH1A-Rain and high tenn.
peratures retarded retail trade. but house
anead OF the same period last year. Fur.
nltCte sales met favorable response, deal.
ers reported buyers generally willing to pay
higher prices.
CLEVELAND-The Retail Merchants
higher than last year. Furniture sales
and demand for fur coats were factors
RICHMOND-Retail trade followed an
upward course in the Fifth Federal Re-
serve district last week with the return
Of more seasonable weather. Washington
department store sales rose 1904 per cent
| over the previous week end $50 per cent
over the like week last year,
ATLANTA-RetaiI traae scored de-
cided upturn. Steel operations were steady
at rs per cent Of capacity In the Birming.
ham area.
MINNEAPOLIS Moderating weathse
ssSaSS1 EoMAsts " M SSsotSsc -ThsrS -ss : hig.