Evening star., 1937-10-17
OPINIONS DIFFER
ON TRADE OUTLOOK
AND MARKET DROP
Some Observers Cite Past
Failures of Stocks as
Business Guide.
INDUSTRY is SP0TTY;
RETAIL SALES CLIMB
Aldrich Plea for Modification Of
Government Regulations Stirs
Wide Interest.
BY THOMAS E. FLANAGAN,

Associated Press Financial Writer
Further stock market declines and
conflicting industrial trends were top
entries on the Nations business record
last week.
Again commanding much attention
in business and financial circles was
the irregular retreat Of share prices.
How closely the market was hitched to
actual business statistics remained a
matter Of debate.
Those who argued that trade and
industry are merely undergoing a
period Of readjustment after spectacu-
lar climbs from the depression depths
recalled that the stock market had
failed before as barometer on various
occasions
During the week business men had
food for thought in the sharply de-
fined opinions of the chairman of the
Nations largest bank. Winthrop W.
Aldrich of the Chase National Bank
OF New York said business news did
not start stocks on their downward
course. Foreign selling was not re-
sponsible, he said.
In his view, the severity Of the break
since mid-August was due to i'm
paired efficiency" of the stock mar
ket because OF excess and too-com-
plicated Government regulations.
Industrial Index Down.
The Associated Press index Of in
dustrial activity fell to 96.3 from 992
the previous week. In the like 1886
week 1t was 964.
Retail trade throughout the coun-
try, with few scattered exceptions,
made favorable progress during the
| second week of October Both in COM
parison with the previous week and
the same time last year." the Depart
ment Of Commerce reported in its re-
view Of conditions in 81 cities.
"The reports indicated. on the sur
face at least, that weather was the
major factor in influencing trade for
the time being. In the majority of
the cities where crisp Fall weather
made its appearance the trends were
toward higher levels"
Extending its downturn, although
| At slower rate, the steel industry
throttled down operations to 636
per cent Of capacity, the American
| Iron d Steel Institute reported In
the preceding week it WAS $751;,
month ago 80.4 and year ago 75.9.
| Steel trade experts vouched the
opinion that the speed of output had
been about brought into line with the
current limited day-to-day buying
| from consuming sources.
Auto Needs Disappointing
1t was noted buying by the auto
mobile industry was still "disappoinI-
ing" Another factor mentioned was
the skimpiness of demand from the
construction industry.
An encouraging influence, trade
circles said, was the decision of
United States Steel Corp. to reaffrm
current quotations for the first quar-
ter of 1888. Traditionally the leader
III price-making policies for the in
dustry, it was believed other COM
panies would follow suit.
| 1t was said there had been some
pressure from consumers for lower
prices. Pending decision, it was be-
lieved some had put off buying in
hopes Of price concessions. Now that
this step has been taken, it was felt
potential demand would be released.
Motor makers drove ahead with pro-
duction. A total of 1855 units rolled
of assembly lines, compared with H.
958 the week before and 5O,585 in
the like week last year.
Squirting the industry on, analysts
said. was the prospect that the best
farm income since 1929 and the
broadened base of buying power in
industrial areas would pave the way
for further sales gains. Experts esti-
mated sales of new cars for the full
| year 1887 at around 100000 COM
pared with approximately 100000 In
1886.
Freight LOadings Down.
| Whether higher retail prices for
motors would slow down purchases
was discussed with concern in some
circles.
Usually at this time of year, railroad
shipments Of freight decline. The
latest week was no exception, although
the dip was slightly more than sea-
sonal. traffic men said.
The Association of American Rail-
roads reported loadings of 8l5,l22 cars
in the week ended October 2, decline
Of 3.8 per cent from the previous week
and z Of l per cent lower than the
corresponding week year ago.
The generation Of electricity, on the
other hand, made better than sea-
sonal showing. In the week closed
October 2, power output was 2,280, ,065,-
900 kilowatt hours, the Edison Electric
Institute reported. This was a little
higher than the previous week and ST.
per cent ahead Of the like period last
year.
Utility men again expressed satis-
faction with the stubbornness with
which the margin Of gain over 1895
4