Evening star., 1937-05-02
BUSINESS FORCES
| AHEAD DESPITE /
| MARKET FLURR|ES
Retail Volumes Remain
| Above 1886, but Some
Gains Are Reduced.
INDUSTRIAL ACTIVITY
| is HIGHEST SINCE 1929
New Peak Set by Steel Output,
Power and Auto Totals and
Loadings Also Rise.
BY THOMAS E. FLANAGAN,
Associated Press Financial Wrifer

BY THOMAS E. FLANAGAN,
Associated Press Financial Writer
Wild operations in world commodity
and security markets cast strong
glare across national business scene
which last week produced further
gains in trade and industry.
The toppling of raw material and
outlook for European peace, signifed
spectators in world markets earlier
had bought too avidly of staples in
demand by arming nations.
Price recovery at the end Of the
week, observers said, provided a foot
note to the strong forward surge OF
business recovery in many parts Of
the world
What the lowering of average COM
modify prices would mean to business
here may become more apparent in
few weeks.
Meanwhile analysts said they would
take their cues to trend from such
factors as the new record weekly high
in steel production and gains IN
electric power output, carloadlngs and
motor production.
Index Gains Sharply.
The Associated Press index indus
trial activity rose to 1915, highest
since November, 1929. week ago
it was 1858, year ago. S72.
while retail trade IN substantially
every part of the country gave a better
account Of itself than for the cor
responding period last year, the margin
OF gain in many instances was whitfield
down to little better than nominal
| figures, said the Department of Com
merce in its report on 36 cities.
Wholesale lines in most cities were
quiet"
Steel production advanced to e23
per cent of capacity from sl3 the
week before and 7l.2 in the like week
a year ago, the American Iron & Steel
Institute estimated.
The rise reflected a gain in produc-
ton of about 100000 tons for the
week, an unprecedented peak which
compared with 1893 900 tons, the top
reached in May, 1929.
Steel circles said the lowering Of
scrap steel prices may indicate
slackening of the production pace. At
the same time they found cheerful
reading the first quarter earnings re-
ports of U. S. Steel Corp. and Beth
lehem Steel, the Nations first and
second largest producers. respectively.
Higher Costs Indicated.
In addition to showing stout earn
ings improvement. the reports indi-
Gated gathering business momentum
and higher operating costs.
Freight carloadings in the week
ended April "a gained 13 per cent to
76l,l82 cars, the Association of Amer
lean Railroads reported. The total
was 143 per cent ahead of the like
week last year. margin which was
seen in business circles as a fairly
adequate gauge of the twelvemonth
betterment in general business.
Motor production accelerated.
Grams reported a total of 139475
units, compared with 133,l64 the
week before and lls,764 in the like
week last year.
Quickening of the output pulse was
studied in the light of the quarterly
report Of General Motors Corp. 1t
showed motor makers, like other
manufacturers, confronted with high
er operating costs. And it said the
company's output of cars in March
had jumped to a high never before
re- he'd.
In addition, the motor company's
earnings, cut to 80 cents a share by
the strike from SLIT in the like period
Of 1886. presented contrast with the
pronounced improvement in net in
come indicated by the rank and file
Of mercantile and industrial concerns
exporting for the period.
Power Output Gains.
Production of electricity in the week
ended April "a was 2,l88,124 900 kilo-
watt hours, the Edison Electric In.
stitute reported. This was up slightly
from the preceding week to a level
14.3 per cent above the corresponding
week year ago.
In the week ended April H. power
experts noted, the gain over last
year was but 12.4 per cent Con-
tributing Importantly to the latest
gain, they said, was the sustained
heavy consumption of power In the
central industrial region.
Share prices on the New York
Stock Exchange traced a course ir-
regularly downward, although quiet
strength was demonstrated in some
groups toward the close of the week.
Reasons given in Wall Street circles
for the decline included the shake
out of speculative commodity hold
ings abroad, President Roosevelt s
warning against margin trading and
the opinions OF some economists that
the recent speed of business gains
may In some measure be retarded.
Coupled with these influences, some
said, was the belief widening OF
operating costs may modify the
steepness Of the rising profit curve.
Explanations advanced for re-
covery tendencies late In the week
| ceptared On the procepf ,,pdapio h1 q