Evening star., 1937-03-21
More Strikes, Bad Weather
and Break in Bonds
Affect Trade.
PRODUCTION IN MAJOR
LINES RISES FURTHER
Steel Mills Continue to Lead,
Cotton Textile and Coal Out.
puts Stimulated.
BY THOMAS E. FLANAGAN
Associated Press Financial Wrttsr

Answering the Spring urge for more
actlon, the nations industrial ma
chlne sped over a somewhat bunny
recovery road last week at the fastest
pace since 1929 or early 1890.
More sit-doWn strikes, erratic March
weather which interfered with trade
a 1urther break in bonds and a dis
concertlng discussion of imitation Dos
slbllitles roughened the business path.
But the key steel industry, driving
TO I'LL the largest accumulation of or.
ders IN years, stepped on the accei-
orator, showing the way to other
heaVy industries. Coal output, spurred
by precautionary buying against a
possible strike in the bituminous in
dustry, ran at high level. Cotton
mills, faced with a C. I. o. unioniza-
tlon campaign, strained to meet in.
coming orders.
While prices of basic commodities
mounted to new tops on the average
for the relation" movement, fol-
lowed by retail quotations in some
nnes, mass purchasing power was in
creased by more wage boosts. mclud-
ing a second sweeping wave of paw
hikes by textile mills in the last six
months.
Index at New Peak.
With steel and cotton manufactur-
ing and rail freight loadings lending
a strong hand. the Associated Press
index Of industrial operations rose to
new recovery peak, despite a lag in
motor output attributable to sit-in
strikes IN some big plants. For the
latest week the index stood at IO5 q
per cent of the l929-30 level compared
with 1857 the preceding week and
S28 IN the corresponding 1896 week.
Retail trade, poised for the Easter
shopping splurge, was jolted a bit,
| manly by unfavorable weather.
The Department of Commerce, In
Its weekly business survey of lead
ing cities, said:
spring weather caprices retarded
retail trade and losses from the previ-
Gus week were encountered in most
parts OF the country, although levels
anead OF last year were maintained.
Far flung labor difficulties did
not seem to have much effect on trade
wholesale lines were very active. An
important feature of MANY of the re.
ports was the revelation of widespread
wage increases which, coupled, with
.hose IN recent weeks, can scarcely
lall TO add materially to public buy.
ing power"
Slight Effect Seen.
From Detroit, center of sit-dovn
strikes, the department heard "busi-
ness was less affected than might be
expected" with 10000 people out of
work. Retail trade there was reported
running II to Is per cent ahead of
last year
A vigorous Spring upturn in busi-
ness borrowings again was evident in
banking figures. Outstanding INSTALL
ment credit also was reported rising
rapidly on the tide of consumer de-
mand for goods.
| WIN this expansion in credit needs
came additional signs of a slow turn
upward IN money rates, marked by a
flSe IN rates on certain types of trade
paper and higher yields on bonds.
Onsetthng results of the decline in
oonoS were traced in a prolongation
OF the recent lull in new financing
as underwriting houses marked time
| on new issues. However, several large
corporations went ahead with expan-
sion plans. Notable was United States
steel Corps announcement of a new
sheet and strip mill for the Pitts.
burgh district.
| Congested at Seaboard.
A Worldwide cry for steel, arising
partly from rearmament needs in Eu-
rope was audible in congestion Of
scrap iron at Seaboard for export, and
washington predictions of heavier
SCeel ana iron shipments abroad.
In the United States steel makers
raised thelr operating rate to 88.9 per
cent OF capacity, up 16, to the high
est since September, 1929 the Ameri-
can Iron & Steel Institute reported
Preparations for more outdoor con-
struction with the approach of Snrinp
ana recent revival of new equipment
buying by railroads and other indus
tries helped keep fires going full blast
at many mills
lhe decline in bonds. coincidinp
with further gains in prices of cotton,
RUBBER and other basic staples pave
wings to imitation talk. 1t reached tbe
headllnes In statement by Chairman
Eccles of the Federal Reserve Board
uring balanced Federal budget more
taxes and more production as checks
on undue price advances, which manv
feared would create new strains in
the economic structure and precipi-
tate another collapse.
Stock Market SIumps.
however, the upward flight r.,
speculative commodities halted to-
ward the end Of the week in a set
oack, relatively small compared with
the swift rise Of the last four months
hesitation in the stock market gave
way to the sharpest crack in fiv.
months, attributed in part to the dis.
turblng effect of the bond slump and
disposition in Wall Street to look
1or tapering of the Spring business
rise.
Railroad carloadings made a better
than seasonal gain, aided by a large
coal movement and industry's bustling
activity along broad front Rail
men were cheered by prospects of
heavy late Spring and Summer traf-
fic In iron ore and larger crops. Wheat
prospects, particularly, were consid-
cred favorable
RICHMOND-Retail trade expansion
continued. although hampered by weather.
Wholesale dry goods and general merchant
disc demand reported well ahead of last
yeAY