Evening star., 1937-12-19
General Activity Declines
Further, but Rate of
Drop SIackens.
RETAIL TRADE CLIMBS
CLOSE TO 1886 LEVELS
Less Pessimism Felt at New York.
Wholesale Trade Fairly Active
Without Unusual Bulges.
By THOMAS E. FLANAGAN,
Associated Press Financial Writer.

AoSoCldttO EIeSS FIIdQcl4l WrlLer.
Evidence that the steel industry
was regaining its balance after a fall
OF 13 consecutive weeks afforded the
Nations business observers some cheer
last week.
Industry at large drifted lower, but
the pace of recession showed con-
tinued signs of slackening. The Asso-
ciated Press index of industrial actiy-
ity dropped to 1854 from TIA the pre-
cedihg week and compared with 1908
in the like week last year.
THE nearer approach to Christmas
developed considerable increase In
retail trade over the country as COM
pared with the previous week, but
when compared with last year, sales
did not show much change" the De-
partment of Commerce reported in its
weekly survey of "a cities.
There was no uniformity In the
tone of the reports. In some cities,
notably New York, there was an tndi-
cation Of less pessimism, while in
many other cities disappointment was
shown that the holiday season was not
productive of better results. Wholesale
markets in New York were fairly
active, but without any unusual
bulges or any press for goods"
Operations OFF Slightly.
Steel operations were slightly Oh at
274 per cent of capacity, the Amer
ican Iron and Steel Institute report
ed. The previous week the rate was
27.5. Steel trade observers noted the
decline was the smallest since the
downturn which started at the end
Of August
From the tndustry's outposts came
word operations were picking up in
some centers, sagging in others Ex-
perts said the holiday period directly
ahead would possibly see continued
irregularity. This, they argued, Is a
normal yearly occurrence. Beyond
the turn of the new year predictions
remain out Of the question, they in
sisted.
Iron Age, which issued its report
two days after that of the institute,
stressed that such important districts
as Pittsburgh, Chicago, Eastern Penn
sylvania, Wheeling, Weirton, Birming-
ham and Detroit were holding ground
or making some advance.
Stocks Of steel on consumers shelves
were said to be below normal Higher
prices for scrap steel in some CENTER
suggested to some replenishment de-
mand may be in the ofing.
Power Output Gains.
In the week ended December IL.
output of electricity gained moderately
to 2,196,105, 900 kilowatt hours, the
Edison Electric Institute reported
This was a more than seasonal up
swing and indicated. some said, heav-
ier demand for power both by industry
and domestic consumers. The total
was 81 per cent under the like 1886
week.
The movement Of freight by rail
declined less than seasonally owing
to an upturn in shipments Of soft coal.
In the week ended December II, car
loadings totaled 622, ,131, a decrease Of
0.2 per cent from the previous week
and drop of 1873 per cent from the
like week last year.
Motor production fell to 82,025 units
from 85,763 in the preceding week
and 122, 800 in the corresponding week
year ago, Wards Automotive Re-
ports, Inc, estimated. A further let
down in the pace of assembly lines
was foreshadowed for next week,
owing in part to holiday Interruptions.
The latest downswing in output was
more than normal at this season, ex-
perts said.
Cash Volume Lays.
Business observers seeking to sense
trade winds noted the report of the
Federal Reserve Board, which showed
the amount of money in the Nations
bank tills had swelled less than the
usual amount in the week ended
December Is. This denoted a slower
than normal quickening of pre-holiday
trade.
As in the past several weeks, price
trends Of raw materials were mixed.
In addition to steel scrap higher prices
were posted for raw cotton and cotton
cloth. The higher cotton quotations
were studied in terms of heavier de-
mand for cotton goods following a
period of dullness. Rubber, live stock
and grains were lower.