Evening star., 1938-06-26
Buying Squirt in Textiles
and Improved Metal
Demand Watched.
CUT IN STEEL PRICES
COMMANDS ATTENTION
Observers Believe Reductions NAV
Bring Action Elsewhere and
Stimulate Orders.
BY THOMAS E. FLANAGAN,

Associated Press Financial Writer
Business felt and acted a little better
in the week just ended.
Just when observers expected the
onset of summer dullness to sap the
strength Of trade and industry, reports
from several fronts provided a pleas
ant surprise
Except for hitting forward
drive in the stock market, nothing
spectacular happened. Instead there
was gradual accumulation of news
items which indicated stiffening con-
fldence
Much of this news centered on
prices. From Worth street, in New
York-the hub of the textile industry's
market-came word of brisk buying
squirt. This was accompanied by rising
prices.
A straw in the wind from the same
direction were price boosts for raw ma
terials. Scrap steel, lead, zinc and cop
per advanced as domestic and foreign
demand quickened.
Another development of no small
significance had to do with lower
prices. This was the reduction of fin
ished steel prices by the principal op-
Grating unit of United States Steel
Corp. New prices posted are approxi-
mately those in effect prior to 1898.
Known as Pace-Setter.
Traditionally, the steel corporation
has been the pace-setter in matters of
pricing policy among steel makers.
Experts said that cuts in finished steel
prices-f deep enough-could stimu-
late demand and thus help the indus
try climb out Of the recession.
Some suggested the corporations
price slashes-from $3.50 to $3.50 a
ton-might help along lower prices in
other industries and thus stimulate
fresh buying.
In Wall Street traders were willing
to put cash on the line to support
their belief that business was improv-
ing. The squirt in shares early in the
week left analysts in daze when they
sought an explanation.
Meanwhile, President Roosevelt the
Nations chief creator and observer of
business news. dramatically fulfilled
both roles. He signed the $3.50 000,-
600 lending spending bill At a press
conference he said dirt would begin to
ny within so days on $3.50. 600. 900 of
Public Works Administration projects.
And he suggested tangible business
improvement might not be far distant.
Steel Rate Up Slightly.
AS the week drew to a close. observ-
ers had the following statistical guide
posts: Steel operations estimated by
the American Iron and Steel Institute,
rose to % per cent of capacity from
27.1 the previous week A month ago
the rate was 20, year ago, 759.
Electric power production in the
week ended June 10 totaled 1891 u.s.
600. the Edison Electric Institute re-
ported. This was a slight drop from
the previous week and 1O.l per cent
under the like week last year.
The Association of American Rail-
roads reported carloadings in the week
ended June 10 rose 03 of per cent
to $3.50. This was 1852 per cent
under the corresponding period last
year.
Wards automotive reports estimated
motor production at 40,9l8. compared
with 41.790 the previous week and l2l-
032 in the like week year ago.
Industrial Index Gains.
The Associated Press index of in
dustrial activity advanced to 67.9 from
67.4 a week ago. A year ago it was
1045.
The Department of Commerce said,
THE more hopeful tone that has char
acterized business during the last week
or SO was manifested in indications of
improvement in retail sales through
out most Of the country.
In practically all of the reporting
areas, gains over the preceding week
were shown, while the percentage of
decreases from a year ago were mar
roWed to an average Of approximately
8 per cent.
Wholesale business generally fol-
lowed the retail trend. and showed
some slight improvement. However,
the percentage of decrease from a
year ago was greater than for retail
trade
Prospects seemed to be improving
and much importance was attached
to the investory summary of the
department.