Evening star., 1937-04-04
ROOSEVELT TURNS
ATTENTION FROM
BUSINESS ACTIVITY
Shift in Federal Funds Ex-
pected to Hit Few Major
Lines.
BULK OF ORDERS COME
FROM PRIVATE SOURCES
Some Divisions of Heavy Industry
Remain Below Normal De-
spite Sharp Gains.
BY THOMAS E. FLANAGAN,
Associated Press financial Writer

Well-SuStdlned trade ana mduStrlal
gains were overshadoWed last week by
President Roosevelt's declaration the
Government would divert Federal
spending from heavy industry to con-
sumers' goods channels.
The shift in emphasis, designed, he
said, to keep industrial momentum
from getting out of hand and to
curb excessive price increases, would
affect comparatively few major in
dustries, business observers believed.
The bulk of orders have been COM
ing from private enterprise, 1t was
stressed. Furthermore, current indl-
cations are that although heavy in
dustrial progress has been swift in the
last year or more, some divisions are
still below normal, analysts said.
Coal Truce Big Factor.
In the field Of industrial relations,
the high spot was settlement Of one
day strike of more than 100000 soft
coal miners. Meanwhile strikes con-
tinued in motor plants.
The steel industry pushed up the
output throttle to 90.7 per cent Of
| capacity, highest since August, 1929,
when production stood at 953 per
cent. A week ago it was 89.6 per
cent, a year ago, 81 per cent, the
American Iron and Steel Institute
| estimated.
The new recovery peak represented
| an output of about l.l9l 900 TONS
| total exceeded only once in the his
tory of the industry-May, 1929, when
| 1,l93,000 tons was produced.
Iron Age said: There is growing
opinion among thoughtful members
of the industry that the situation is
too good to be healthy, and precau-
tions are accordingly being taken
Comparisons Inaccurate.
owing to the two weeks difference
In dates between Easter this year and
last, accurate comparisons on retail
trade are not possible" said the De-
partment of Commerce in its survey
Of business in 81 cities.
However, the volume Of trade IN
retail establishments throughout the
country during the week ended Wed.
nesday, March 81, compared favor
ably with the same period 'ast year,
which came at time when Easter
buying was in full swing.
In wholesale trade, seas onal influ-
ences have begun to exert an ad-
verse influence, although there were
exceptions to this rule the survey
said.
The Associated Press index Of in
dustrial activity rose TO los from
| 1853 (reyised) the week previous
and $40 in the like week last year.
Auto oduction Down.
Motor production dropped consider
ably owing to strikes Output was
99.425, compared with 10l ,406 IRE
vised) the week before, and l08,426
in the like week last year, Grams
estimated.
Freight carloadings gained 0.2 Of
per cent in the week ended March
q, the Association of American Rail-
roads reported The rise was more
than seasonal, analysts noted, and the
total of 761, ,109 cars was up % per
cent over the like week last year.
The gain in freight shipments pro-
yided a background for statistics, in
dicating heavier purchasing OF railway
equipment in the first quarter. Sig
niicant for the future, observers said,
was the estimate compiled by the
l3 shippers regional advisory boards
showing an expected gain Of rs per
cent in second-quarter loadings over
the like quarter last year.
Production of electricity was of 0.5
of / per cent in the week ended
March 27. The Edison Electric In
stitute reported output of 1900. .l43 900
kilowatt hours, or 1871 per cent above
the corresponding period last wear
Watch Price Mark-Ups.
Business men and bankers noted
price mark-ups on such products as
gasoline, refrigerators, gas ranges,
grain alcohol, trucks. They also cited
predictions of a nearby increase in
shoe prices.
The upturns, they said, resulted
from advancing raw material prices
and higher manufacturing costs, in
lllCdSQlC " "dSC
increases.
will higher prices for finished goods
result in consumer resistance and
smaller sales?" they asked. While
few ventured glesses on the answer,
most said the next few months may
provide the answer.
Some stock market traders thought
rising raw materials and increased
manufacturing costs might pare profit
margins. They sold stocks. But de-
clining share prices had additional
explanations, Wall Street said
| Uppermost in the mind Of the
financial community as a cause of
unsettlement, however, was the pro-
nounced drop in United States Gov
ernment obligations to new lows for
the year.
Some hardening in prices at the
end Of the week was ascribed in part
to demand from banks and insurance
companies.
Detailed Reports Given.
RdcHMoMDb~Wholesale dry goods and
sahy rom levels IN ths @
Federal Reserve district. Washington de,
| partment store sales for the week ended
| March 81 were down 14.1 per cent under
| the previous week and 7 Il per cent under
| the like week year ago.
| NEW YORK.-BuSiness was spotty and
| irregular. with continued wide expansion
| in many lines and slowing up in others,
| the Department OF Commerce reported.
New York City department and specially
stores felt the effects of unduly cold
weather and though net results for the
| week were per cent ahead of the same
week last year all but few found results
| Disappointing
| ELPHIA-Department stores re-
| same week year ago despite chilly
weather wholesalers reported the last
minute wave Of hll-in orders was less
sSockS were IA bettsf condition.