Evening star., 1937-05-23
Flow OF Goods Appears to
Have Trimmed Out in
Some Sections.
COOL, RAINY WEATHER
CHECKS DISTRIBUTION
Drought in Parts of Winter
Wheat Belt Dulls Rejoicings
Over Crop Prospects.
BY THOMAS E. FLANAGAN.
Associated Press Financial Ur,t.r

The Nations industry held In a
vigorous stride this week as observers
watched expectantly for signs of sea.
sonal slowing.
PRODUCERS Of metals. automobile.
railroad equipment, tools and mjscel-
laneous durable goods for home. farm
and factory sustained operations
around peak levels of the recovery and
looked ahead cheerfully.
But the flow Of goods into hands Of
consumers seemed to have thinned
out IN some sections. particularly in
contrast with the surging advance last
year When the country was ant;ci-
patlng spending Of veterans bonus
money.
COOL, rainy weather in some Sec
tions was held mainly accountable for
trade slackening. On the other hand
drought in parts Of the Winter wheat
oelt dulled somewhat rejoicings over
crop prospects, hailed in business cir
cles as among the most promising
portents for trade.
The Department OF Commerce, in
its weekly survey of business In 81
cities, reported further indications
that retail trade throughout the coun-
try is not pushing forward into higher
ground with the vigor that was ap-
parent prior to the middle of April"
The slackened activities seemed to
be due largely to unfavorable weather
and seasonal influences" the Govern
ment agency explained.
Wholesale Trade Slower.
Seasonal influences. added to les,
satisfactory conditions in retail CEN
ters, exerted an unfavorable effect on
wholesale lines, which generally were
slower.
1T was to be noted. however, that
heavier lines were reporting more
favorable trends. Earnings reports
continued to be favorable and it was
said that the bookings of future
orders indicate sustained industrial
activities for several months to come"
Little impairment Of Spring vigor in
backbone industries of the machine
oSS Ndo dppdl oIlh III IN JSSt DdlOIllttblS.
The Associated Press index of in
dustrial activity, adjusted for seasonal
variation, remained unchanged at
1895 per cent OF the 1929-3O level,
duplicating the recovery peak estab-
ished the previous week.
Well-sustained output Of motor
cars, textiles and steel and better
than-seasonal movement of freight
on railroads were strong props under
the Industrial structure.
Building Advances.
Residential and industrial building
gains nourished hope for accelerated
Improvement in still relatively de-
pressed field. Calling attention to in
creased spending for plant improve
ment was a s20,000,000 contract for
new construction in the Pittsburgh
district by subsidiary of the United
States Steel Corp.
Corporate financing ebbed to around
the lowest figures of the year. Still
investment bankers, considering the
better action Of security markets,
AoohOu All VOL VI W lcNlNdl Ill
to raise capital for plant expansion.
One Of the Nations industrial
giants. the E. I. du Pont de Nemours
Il Co, proposed sale of $4,000 900
in preferred stock. presumably to
raise funds for working capital and
continuation of improvements.
The financial spotlight swung back
toward Washington as result Of a Su-
preme Court decision upholding the
Louisiana chain store tax, develop
ments in the administrations court
reform program and indications of
ing a start on minimum wage and
maximum hour standards.
Stock Rally Watched.
Lethargy in speculative markets
was dispersed by brisk rally in stocks
following the Senate committee vote
against the court bill. However.
market observers were uncertain
whether technical factors growing out
of the Spring decline or bullish inter.
probation of Washington events chiefly
animated the turn.
Over the busy steel front hovered
threats of strikes against independent
units. But hopes for industrial peace
were nurtured in some quarters as the
financial district watched with intense
interest resort to the ballot to decide
the question Of union representation
in the Jones & Laughlin steel plants.
The American Iron and Steel Insti.
tute reported operations of the in
dustry at 90 per cent of capacity, of
IL points from the preceding week.
Activity remained close to the record
production pace, however. and trade
sources noted new orders showed only
a slow decline, despite onset Of the
usual period Of seasonal relaxation.
Shutd0wns Talked.
A possibility the shutdown of four
New England textile mills might fore
shadow further curtailment in one Of
the busiest sectors of industry was
discussed in business circles. But the