Evening star., 1937-07-04
Many Factories Set Slower
Pace on Approach of
July 4 Holiday.
INDEX OF INDUSTRIAL
ACTIVITY UP SLIGHTLY
Labor Disturbances Begin to Take
Toll of Business in Some
-
Sections of Country. 3.
BY THOMAS E. FLANAGAN.
Associated Press Financial Writer


power were seen in trade reports from
some centers. Many manufacturing
plants, following seasonal custom, re-
laxed into more leisurely pace for a
breathing spell over Fourth of July.
Nevertheless. latest Industrial baro-
meters portrayed little more than
leveling off of production after t,S
Spring squirt. The back-to- work
march in steel plants recently hit by
strikes bolstered the industrial struc-
ture and held out prospect OF rebound
in steel operations.
After holding unchanged for nearly
month, the Associated Press index OF
industrial activity moved up to loAs
per cent Of the l929-30 level compared
with l04.5 the preceding week and
1913 in the corresponding period last
year
In contrast with sustained activity
along major segments of the industrial
front were spotty trade returns The
Department Of Commerce said reports
from 81 key cities indicated labor
| disturbances definitely have begun to
take their toll of trade in many sec.
| tions of the country"
Miss Bonus Funds.
Many merchants missed the SPEND,
ing splurge accompa nying cash paw,
ment of the soldiers bonus last Sum-
mer
Seasonal influences also proved an
adverse factor and the general trade
picture throughout the country was,
not very pleasing one" added the
Commerce Department.
On the other hand. there were
many encouraging factors Reports
from agricultural areas continued In
optimistic vein Building activities
proceeded with alacrity Demand for
1nished industrial products was we'll
sustained. Prospects for a fine Fall
and early Winter business we're pre-
dlcted by responsible authorities"
In Wall Street the favorable aspects
seemed to have made the deepest i'm
preston. Security markets shook off
mt OF depression and blossomed into
vigorous midyear rally. despite a fall
in the French franc following suspen-
sion of gold payments at Paris.
Farmers, reaping a fine wheat har-
vest in some sections. saw their crops
ride booming grain market. Soaring
prices. as far as farmers income was
concerned. were counted upon to off,
set rust and drought damage, which
agitated traders
Commodities Recover
Led by wheat, leading commodities
of
the Spring decline. Attracting wide
attention as probable portent of re-
newed expansion in steel activity was
an lncreaSee in the price of scrap.
usually one Of the most reliable har-
bingers Of change in that key industry.
The American Iron and Steel In
stitute estimated steel production had
slipped little to Is per cent of ca
pacity at the outset of the week.
Some trade authorities, however, fig
ured resumption of operations in
strike-hit plants raised the operating
rate before the week ended.
| A strong prop was automobile pro-
duction. Relatively free of strike in
reference, motor makers turned out
l22,890 cars and trucks, against l2l.-
032 the week before and lo2.833 in
the comparable period last yeax,
Wards reports estimated.
Allowing for seasonal fluctuations,
electric power production and rail-
road carloadings made good show
Ing. But in these barometers, as else-
where, tapering of trade and pro-
duction was evident narrowing the
margin Of gain over 1886
Freight Loadings Rise.
The wheat movement boosted load
ings of Western roads. Some Eastern
carriers, on the other hand. seemed
to have suffered traffic loss in big in
dustrial areas
Construction held fair gains over
last year, although some building men
complained advancing costs had re-
| tarded recovery in that relatively de-
/ pressed sector. Preparations for a
| midyear let-doWn were noted in tex
tile manufacturing, one of the busiest
industries during the Spring
A broad recovery in bond prices
| aided revival in corporate financing
after the recent lull. Business OBJ
servers were hopeful increased Offer
ings were prelude to further revival
in corporate financing in the second
half of the year, since industrys for
| tunes are closely linked with the cap-
ital market
Midyear bank statements revealed
substantial growth in outstanding
business credit the last three months.
However. latest banking figures corr
firmed other barometers in depicting
seasonal slowing
District Reports Given.
BoSToN-,A strike Of wool handlers re-
tardsd aands the the III INDUSTRY last week: Cotton
slisht impr9yement. Retail sales were ~
month were ahead of last year. Shoe prices
Nesh NEM R5sSs5, Y9,RK;-Retan trade below las,
mostly E1ost ,isa diissppointing Most department
sales Huomoble dealers sS' said Serf sales aoia of
new cars last two weeks showed more than
PHILADELPH1A-Retan trad. lost
buoyancy compared with last year. Msr-
chants fa attroSsd n. the partly
RIcHMoNp-. Of Summer
last year. Definite drop seen in Wash
ington
- oATLANTA.IRetail trade reported 10
no per Gent zen snsb higher than last
n tirst quarter 81 per cent above same
district steady at 9s per cent OF capacity.
CLEVELAND Steel operating rate in
Cleveland district UNCHANGED at 40 per
cent Of capacity but up from 46 to IS in
youngstown due to resumption in strike
bound plants. Automobile registrations de-
clined compared with last year. Bank
clearings 35 per cent ahead Of 1895.
H1CAGO-Merchsnts reported holiday
and vacation buying lifted trade. Business
figured about O per cent better than year
ago wholesalers saw larger buying in
many lines. Residential building in Chi
cago declined in June compared with last
year.
KANSAS CITY-Retail trade increased
a little over previous week. Merchants
look for improvement growing out Of
heavy cash income from marketins OF
crops, Higher merchandise prices did nlpt
seem to retard buying. Farm income esti.
mated about 90 per cent higher than 1885
in first six mPth'.