Evening star., 1937-09-19
Heavier Flow of Goods Con.
trasts With Slower In
dustriaI Rate.
SENTIMENT CONFUSED
ON BUSINESS OUTLOOK
Stock Slump, Cuts in Textile,
Shoe, Coal, Furniture Outputs,
and War Tension Blamed.
BY THOMAS E. FLANAGAN,
Associated Press FInane,aI Writer.

A slower pace for the Nations IN.
dustry last week contrasted with .
heavier flow of goods across retail and
wholesale counters in many sections.
Higher steel operations and declines
in freight carloadings and motor and
electricity output were projected
against background of mixed busie
neses sentiment.
This momentarily confused attitude
Of experts toward the outlook for trade
and industry had its origin in diverse
factors and some elements far removed
from the scene Of activity.
They included, analysts said, falling
stock market prices. recent cuts in pro-
duction Of textiles. shoes. coal and
furniture. renewed French fiscal
troubles and protracted strife in the
Far East with its implicit threat TO
export business -
On the bright side Of the canvass
were mentioned settlement of some
labor controversies, sustained farm
purchasing power and the prospect Of
faster steel and motor production.
The Associated Press index Of in
dustrial activity declined to l03 from
l04.6 the week before and compared
with "a in the like week last year.
Retail Gains Continue.
Retail trade throughout the coun-
try entered the mid-September period
with continuation of the favorable
aspects which characterized 1t imme.
diately following Labor day." said the
Department of Commerce in its weekly
survey Of 81 cities.
observers were encouraged BY the
TACT that wherever crisp Fall weather
made its appearance there was an i'm.
mediate response from shoppers !.
wholesale trade began to reflect the
seasonal upturn in retail lines and the
showing was encouraging"
Steel operations rebounded to 90
per cent Of capacity following the
Labor day let down. Although it was
under the pre-holiday rate Of 84.1. a
reported by the American Iron & Steel
Institute. 1t contrasted with 71.e p>r
cent IN the week ended September II.
A month ago it was 83.z per cent. Last
year at this time it stood at u S.
| Steel Orders Increase.
| Steel trade circles noted q moderate
pickup IN the flow of new business
and cited the belief In well-informed
quarters that steel has been MOVING
into consumption at . fair rate for
this season
| 1t was stressed steel use runs at =
nigh rate in a number of industries.
notably can making and farm imple-
ment manufacturing. Before long. it
was added, reinforcements will come
up from the rear when the automobile
industry gets under way with produce
ton of new models.
A sharp fall in motor output marked
the end of the 1897 season for major
producers. Outturn was 3o,15o units.
compared with 59,107 the previous
week and 26.640 in the corresponding
week Of 1886, Wards reported.
| Followers of the industry attached
weight to the opinion OF Alfred p.
Sloan, jr., chairman of the board OF
General Motors Corp. He said he
looked for well-sustained sale of cars
in 1888. The industry at large will
likely have good year, he held, owing
to the fact the recovery movement has
not yet spent itself.
Freight Loadings Down. 49,.
Freight carloadings totaled 711,79o
in the week ended September IL, TIE
Association of American Railroads re-
ported. This was a drop OF 11.6 per
cent from the previous period owing
to the holiday interruption. The fall
was less than seasonal. Freight ship
ments were 1.6 per cent ahead Of the
| like 1886 week. s@
| The decline on the week witnessed
slower movement of all classifications
of freight except grains in the Western
| district, which rose moderately.
Railroad men said hopes entertained
briefly in Wall Street for settlement
of pending wage negotiations were pre-.
mature. At the same time, they ex.
pressed the view higher operating costs
were eating into profits. res
Output of electric power in the week
ended September IL totaled 2,t54,.
276,000 kilowatt hours, the Edison
Electric Institute reported. This was
under the preceding week, but with
allowance made for the holiday, 6.2
per cent ahead Of the corresponding
1886 week res
Further slackening in the demand
for power in the central industrial
district was again a prominent phaso
of the weekly report. In the latest
week power production in this region.
allowing for the holiday, was "a Der
cent ahead Of year ago, whereas
in the preceding week the gain over
1886 had been IL per cent.
Loan Total Expands.
Putting the accent on the forward
aspect Of trade trends, analysts found
bright spot in banking statistics.
Business loans for the account OF
commercial firms, industry and agri-
culture continued to expand. In the
week ended September 8, loans by
member Federal Reserve Banks In
l0l cities advanced $50O00.0 900.
Shares on the New York Stock Ex-
change gyrated confusedly throughout
the week and met with selling at the
close. Pressure on steels was pro-
nounced much of the time and was
said to have somewhat mystified steel
industry observers who hold hopes Of
good Autumn business.
A fall in copper shares also ar.
rested attention. 1t was touched of
experts said, by decline In the
price of foreign copper to a new low
Tor the current move. Some said
the downturn in the price of the for.
eign metal threatened to unhinas the
1S~. ryv15 a YlT -