Evening star., 1937-11-28
Roosevelt Plan to SIuice
SPAS, 900, 1000 Into Mar.
kets Watched.
BUILDING AND UTILITY
SPENDING ALSO SOUGHT
Textiles, Chemicals, Forest Prod
ucts Expected to Feel Effects
of Federal Purchases.
BY THOMAS f. FLANAGAN,
Associated Press Financial Writer.

oPStty oAoNC NNiC oll OlIC wa
tion's business record last week
Also of Importance to business men
was the announcement by President
Roosevelt Of plan to sluice s245,-
100000 soon into markets for Gov
ernment supplies.
This assault on the business recess
sion, it was disclosed, is designed to
supplement other plans to touch of
building wave and to loosen the
purse strings of the giant utility in
dustry to the tune Of more than
sl,0oO,Oo0, 900.
Textiles, chemicals, forest products
and durable goods would benefit un-
der the administration program of
spending to help business and boost
employment.
Last week reports of layoffs or
curtailed working schedules bore wit
ness to slower output of steel, motoss
and textiles.
Motor Employees Laid on.
From Detroit came word a major
motor producer had laid off about
10000 of its $4,000 employees in that
city and cut its work week from 40
to 80 hours. Cleveland reported the
ten-week decline in steel operations
had left more than half a million
men on sharply lower working hours
For the ninth consecutive week
the Associated Press index of indus
trial activity declined. Continuing
the downturn which started early in
September it dropped to S04 from
83.9 the week preceding. A year ago
it was 988
The near approach of the holi-
days combined with more seasonable
weather in many parts of the coun-
try, speeded up shopping activities"
the Department of Commerce re-
ported in its weekly survey Of "a
cities. However, trade in most re-
porting cities was still not up to last
years volume, and the reports for the
most part were far from encouraging.
Wholesale markets were a bit more
active though the tone was still not
buoyant."
Production of steel fell to 81 per
cent of capacity from 364 the pre-
vious week. the American Iron e. Steel
Institute reported. A month ago it
was 52l. year ago 74.3. Part of
the decline last week was attributable
to the holiday, experts said.
Steel Estimate Higher.
Steel men noted. however, that
Iron Age" two days later posted a
somewhat higher rate of operations
for the industry-33 per cent of ca
pacity and that the survey had a
cheerful comment.
1t said: For the first time since
the week before Labor Day. the de-
cline has apparently been halted at
Chicago, where both production and
consumption of steel is more widely
diversified than in other industrial
areas"
Several weeks ago steel trade OBJ
servers looked to the automobile in
dustry to provide robust orders which.
some thought. would help check the
drop in steel production This the
motor makers have failed to do. And
as the week came to close it was
felt downward revisions of December
output schedules foreshadoWed little
aid to the steel business.
When business crossed the autumn
threshold, prognosticators counted on
slight help from the railroad and con-
struction industries. Both of these
divisions have done the unexpected
by sluicing new business into steel
channels.
Holiday Cuts Output.
Like the steel industry, the motor
sector showed the effects of Thanks
giving Day interruption. With most
plants working but three days during
the week. outturn slid to 58,955 units
from 85,757 the previous week and
compared with l02, ,399 in the like 1885
week, Wards reported.
1t was observed that many auto
mobile plants will resume production
on four-day basis instead of five
next week. 1t was believed December
weekly operations would surpass last
weeks level but not reach that struck
in the like weeks of 1886.
Rejecting the slower movements of
numerous products freight carload ding
fell 81 per cent in the week ended
November 20. the Association of
American Railroads reported. The
downswing was more than seasonal.
The total, 647,251 cars, was 18 per
cent under the corresponding week
year ago. Slackening shipments Of
coal and other industrial products
were noted.
In the week ended November 20,
output Of electricity totaled 2,224.-
213,000 kilowatt hours. the Edison
Electric Institute reported. This was
a moderate gain over the preceding
week to a level 25 per cent ahead Of
the like period last year. The upturn
over last year contrasted with a rise
of 3 of one per cent scored in the
week ended November 13.
Reflected by Stocks,
The stock market gave some indi-
cations of what financial circles
thought of business. 1t swayed er-
raticly early in the week. 1t was torn
between signs of declining business
and news from Washington to Gov
ernment plans for aid to trade and
industry, brokers said.
They stressed that at the end Of
the week. there were rallies in shares
Of building material companies, steels.
utilities, chemicals and issues of man
ufacturing companies.
In the bond market gains were
scored after the Thanksgiving Day
holiday. The upturn, in some in
stances. failed to wipe out earlier
(See INDUSTRY, Page E-2.)