Evening star., 1937-11-14
Federal Plans to Bolster
Confidence Studied and
Debated.
STORE SALES REGISTER
ONLY SLIGHT CHANGES
Most Cities Keep Gains Over 1885,
but Ten Report Declines.
Wholesalers Idle.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

Business activity last week con-
tinued the decline which started early
in September.
For the seventh consecutive week
the wheels of industry turned at a
slower pace. Retail trade again had
a ragged look and merchants we're
reported timid about buying ahead.
OF vast Importance to business, but
eluding statistical measurement, was
news which had its origin around the
conference tables of Washington and
in press conferences of President
Roosevelt.
Summed up, it meant the admins
tration has been upset by declining
business and means to do something
about it, experts said.
AS interpreted by business men. re-
ports. from a variety of high official
places indicated Washington's de-
termination to bolster faltering conf
dence. This. it was indicated, would
be done by: Cd Trying to balance the
budget, t2) adjusting tax laws, 80
cooperating with the utility indus
try and az paving the way for a squirt
in building.
Effects Uncertain.
How soon these measures might
bear actual fruit in terms of new
orders for trade and industry re-
mained a matter for debate. It Was
noted Wall Street. which keeps an
eye on the future rather than the
present, paid higher prices for stocks
and bonds.
During the week foreign funds we're
Withdrawn from the United States
In the first shipment of gold from
these shores since March 1886. s10.-
2oo,o00 went to France and SIS 900 900
10 Great Britain. Secretary of the
Treasury Morgenthau said, we will
let gold go willingly" and said he
thought it did not mean anything so
lar as our gold credit base was con-
cerned.
Giving emphasis to the drop of in
dustry to the lowest point since early
May, 1885, the Associated Press in
austrlal activity index receded to 88.1
from 90.3 the previous week. A year
ago it was 81.
Retail trade throughout the coun-
try showed little change from last
week although a slight pickup was
noted IN many sections" the Depart
ment OF Commerce said in its weekly
survey of business in 81 cities.
In most cities retailers did better
than hold their own compared with
last year, with few reporting sub
stantial increases. On the other hand.
lO important cities reported declines
wholesale markets continued, for the
most part, to reflect shrinkage in or
ders. The inclination seems to be TO
go SLOW on new buying of materials
until retailers have reduced inventories
ana have begun sending in new orders
in greater volume"
Steel Operations Cut.
The steel industry throttled OPERA
tons down to Al per cent of capacity
from 4S.6 a week ago and 63.6
month ago. In the like week last
year it ran at "a. the American Iron
and Steel Institute reported.
Continued apparent unwillingness of
the motor industry to take steel in
amounts predicted early this fall again
harassed steel men. 1t was said ALL
tomobile makers must have bought
more steel for inventory than general
ly realized. At the same time IL
was stressed the Chicago Motor Show
produced better results than the
New York display. The hope was this
might stimulate freer demand.
The motor industry itself. neverthe-
less. showed it was in no rush to push
output aggressively ahead. Produc-
ton was off to 85,325 units from 3d.
ITO the week previous and 1O4 200 in
the like 1896 week, Wards reported.
This was the first week since the be-
ginning of August the operating rate
was under the comparable 1886 week.
Power Output Down.
Confirming reports of a slower in
oustrial pace was the report Of cleo
trio power production which declined
moderately to 2,202. .451 900 kilowatt
hours in the week ended November 6.
according to the Edison Electric In
stltute. Once more the margin of gain
over 1886 was cut down. 1t stood at
1.2 per cent, compared with the rise
OF Al per cent scored in the week
ended October 80. Demand for elec-
tricity was under last year in both
the New England and central indus
trial regions.
In the week ended November 6, rail
shipments of freight totaled 732.145.
the Association of American Railroads
reported. This was drop of 81 per
cent from the preceding week and 3.6
per cent less than in the like 1886
week. The downturn was more than
seasonal, analysts said. While there
were decreases in the movement of all
classes of freight, losses were pro-
nounced in ore, coal. miscellaneous
and less-than-carlot shipments.
Prices of raw materials, on the
average, slid to the lowest level since
July, 1886. Industriel products, live
stock and textiles were lower. Brisk
demand for wheat followed reports of
frost damage to the grain in Argen-
tina. Cotton advanced after issu-
ance of the Government estimate
showing the largest crop in history.
District Reports Given.
OBSERVATION-DISCLOSURES declines In re-
tail sales were noted in the NTH Federal
Reserve district compared with the pre-
yious week and the like week of 1895.
Other business indicators showed q ia
vorable comparison with the corresponding
period last year.
BOSTON.-Retail trade was SO per cent
ahead Of the like period last year. Bank
loans: investments and deposits fell mod
erately. Wool top futures were sharply
lower but resained in part. Signs of sta
bility in leather prices stimulated sales.
NEW YORK.-Retailers said business
was spotty with modest gains over last
year prevalent. Wholesale markets we're
confronted with caution as buyers worked
On q hand-to-mouth basis.