Evening star., 1937-01-10
Index at New Peak Since
November, 1929-RetaiI
Trade Quickens.
STEEL RATE REACHES
1914 PER CENT LEVEL
Wholesale Trade Quiet, Although
Preparations for Spring and
Easter Move Forward.
BY THOMAS f. FLANAGAN.
Associated Press Financial Writer,

strikes in the motor division. while re-
tail trade quickened its pace in many
sections of the Nation
The Associated Press index Of in
dustrial activity moved up to 1920. a
peak since the end of November, 1929.
A week ago it stood 1908, a year ago
at 858.
THE early days of the New Year
brought continuation of the upward
trend of retail trade in substantially
all parts of the country" the DEPART
ment Of Commerce said in its weekly
business survey of 36 cities.
While the slump from the holiday
week was abrupt, as was to be ex-
pected, the level of trade remained
considerably higher than for the same
week last year.
| wholesale trade was quiet, although
preparations for the Spring and Easter
trade moved forward at an accelerated
tempo.
Long Troubles Feared.
THE effects of labor disturbances
on retail trade were not Immediately
apparent, although much uneasiness
was expressed as to the results if these
conditions are prolonged with the con-
sequent unemployment" the review
said.
Pressure Of consumers for steel
helped boost operations to 1874 per
cent Of capacity, trade observers said.
This rate, reported by the American
Iron g. Steel Institute, compared with
ITO per cent of capacity the pre-
vious week and 492 in the like week
a year ago.
Although the automotive situation
Is causing the steel mills considerable
difficulty because of sudden rearrange-
ment of rolling schedules" Iron Age
said, there is at the moment no ap-
prehension that operating rates on the
average will be reduced materially.
The settlement of the strikes will
undoubtedly be followed by renewed
pressure from automotive plants for
steel to make up for lost production"
1t was explained.
| Auto Output Advances.
Notwithstanding strike conditions.
motor output advanced to SO. .78O units
from 1880 the preceding week and
$3.50 in the corresponding week last
year, Grams reported.
Expanding output was studied in
the light of recent heavier retail buy.
ing of motor cars. General Motors
Corp. reported December world sales
to dealers of 239,l14 units, the best
month on record. Domestic retail
sales In December of 173,472 units,
AZ per cent more than the total Of
that month in 1885, which was a rec
ord for that period in any year. The
weeks reported, observers noted, fell
Immediately prior to contraction of
shipments to distributors owing to
wage disputes.
Ref1ecting revival of trade and in
dustry following the holiday let
down, carloadings rose. The gain in
shipments for the week ended jan
uary was less than seasonal. Traffic
analysts said this bore witness to de-
sire OF shippers to await termination
OF emergency freight rates, which eX-
pired January l.
Carloadings Increase.
Loadings totaled 587,953 cars, a rise
OF as per cent over the preceding
week and 8.5 per cent ahead of the
like week in 1886.
Arresting attention of rail experts
was the statement an upturn of Is
per cent in traffic would require 18O,-
600 new cars and 2,400 locomotives.
This was the opinion of J. NJ
Smymes. vice president in charge Of
operations and maintenance of the
Association of American Railroads.
This association, rail men said, in the
recent past has inclined to the con-
servative side on the subject of rail.
road equipment needs.
Tangible evidence of the plans Of
the industry itself was seen 10 the
budget announced by one leading
systematic Atchison, Topeka 6S
Santa Fe It disclosed appropriations
of Sal, ,094, 900 for 1887, including
carry-over from 1886, when S21, ,283,-
900 was set apart for equipment and
improvement needs.
rover frOuuCtlOn On.
In the week ended January 2, elec-
trio power output totaled 2,069, ,266, 900
kilowatt hours, slightly under the pre-
ceding week, but 116 per cent ahead
Of the corresponding week year ago.
Installations of the Bell Telephone
System, often seen in business circles
as barometer of conditions, showed
the December increase of SO 900 to be
nearly double the upturn scored in
December, 1885.
Another weather vane of consumer
buying power was the sharp advance
reported in December sales of various
chain stores and other merchandisers.
Sears, Roebuck reported for the four
weeks ended December 81, the largest
total for any period in the history of
the company-$59, ,911,712, an increase
of PAT per cent over the like period
Of 1895.
Many Stocks Improve.
Three factors were pivotal In mar
kets during the week-clouds of wage
disputes over the motor industry, and
the Presidents two messages on the
state of the Nation and the budget.
The wage disagreements and ats
tendant strikes put damper on en-
thusiasm. The Roosevelt message on
the state of the Nation brought no
noticeable change in Wall Street senti-
ment; that on the budget was seen az
generally reassuring but containing
'loopholes" for stepping up Of relief
appropriations.
Many stocks improved. In the bond
(See INDUSTRY, Page G-2l