Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-05-09
INDUSTRY HOLDS
At H|GHERLEVELS
W|THSTORE SALES.
Auto and Power Outputs,
CarIoadings Increase.
Steel Lag Slight.
PRICES MORE STABLE.
CROP OUTLOOK GOOD
Retail Activity Remains Well
Above 1885, but Declines
From Recent Peaks.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

BY THOMAS E. FLANAGAN,
Associated Press Financial Writer
Observers Of national business sur
Veyed the scene last week from a
platform OF firm statistical improve
ment.
Some planks in the platform were
faster motor production, higher cleo
trio power output, heavier carloadings.
Others were the slight dip IL. steel
operations and retail sales ahead of
last year, but less brisk than In re-
cent weeks,
Analysts scanning the distant hori-
ION IN search Of broad hints Of long
term trends noted three things. These
were:
l. A mild commodity decline which
contrasted with abrupt and irregular
~ lower trends of the two weeks
previous. 1t was welcomed because
1t suggested what business men want
= return to price stability.
2. Crop estimates which indicated
cheerful prospects for rural buying
power
8. The annual report of the Bank
FOR International Settlements which
told OF world business running at full
swing and warned of potential threats
TO stability inherent in the expensive
world ornaments race.
Industrial Index Up.
The Associated Press index Of in
dustrial activity rose to 1893. highest
since November, 1929 A week ago it
was 1915, year ago 884.
Retail trade throughout the coun-
Try showed commendable gains dur
ing the week ended Wednesday. Nav
5, as compared with the same period
last year" the Department of Com
merce reported in its survey of So
cities.
In some cities gains were small,
and disappointment was expressed
that the brisk advances of recent
weeks are not being maintained.
Iabulations, however indicated that
aggregate turnover was ahead of 1885.
For the most part wholesale Lines
were quite active
Operations in the steel industry
slowed down to 81 per cent of CAPACITY
from s23 per cent capacity, the
American Iron and Steel Institute
reported. A year ago the rate was
| 70.l.
| Recession Is Moderate.
Trade circles said new business con.
tlnued to dwindle, but stressed the
decline was moderate Consensus was
the outlook for the remainder OF the
current quarter and the third quarter
remains bright.
STEADY buying Of railway equipment
and sustained tin plate and automobile
production were seen as stout props
to the steel business in the months
directly ahead.
Motor makers turned out l4l,525
units last week, compared with 139.l57
the previous week and 1875 in the
like 1885 week. Grams reported.
The figures were studied by business
men in the light of reports the trend
OF automobile sales continued UP.
William S. Knudsen, newly-elected
president of General Motors Corp, said
output would continue at or near
capacity through the present quarter
and into the Summer months.
Carloadings in the week ended May l
gained to 7S2,423, up 2s per cent over
the preceding week and ISL per cent
higher than the like week last year,
according to the Association OF Ameri-
can Railroads. The advance. traffic
experts said, was less than seasonal.
| More Cars Needed.
Aided by the swelling movement Of
freight, several systems were reported
to be moving up to the counter to
buy additional freight cars. Mean
while, well-informed quarters stressed
once more the possibility of shortage
OF rolling stock this Fall If traffic comes
up to current expectations.
Electricity generated totaled 21o3,.
$4,000 kllowatt hours. the Edison
Electric Institute reported. This was
a little above the previous week and
1875 per cent higher than the like week
OF 1896. In the week ended April "a
the gain scored over last year was 143
per cent.
Utility circles said that although day.
light saving in some sectors had cut
down the demand for power, I'M
favorable weather had made for wider
Use in others. Consumption of cleo.
tricity in the Central industrial re-
gion was we'll sustained.
The stock market moved up cau-
tiously most of the week, but had a
tired spell on the home stretch. with
motors and steels under pronounced
pressure.
Costs May Cut Profits.
The softening tendency was said In
Wall Street circles to reflect the opin-
lon Of some economists that business
and industry may be somewhat less
robust In some departments and fears
mounting costs may slow down profit
gains.
In the bond market high-grade cor
porate and United States Government
obligations found demand good al
though not aggressive. At times in
dustrial convertible loans moved up
briskly. United States Government
bond dealers said the recent rise in
Treasures had served to heighten fav-
orable sentiment.
Money market quarters concentrated
attention on the small cut in bankers
acceptance rates. 1t limited. they said
that recent predictions money rates
would rise had been premature.
|
R1CHMOND-Demandf for vacation &C.
cessories was reflected in sales for the
NTH. district. Favorable weather also
boosted sales Washington retail turnover
Jumped 37,p Der cent over the previous
week. but the gain was attributed mainly
to Government pay day.
CH1CAoO-Buying interest vas widely
scattered. LEADING wholesalers reported
one Of the heaviest weeks Of the ysar