Evening star., 1938-10-02
TRADE FOLLOWS
ERRAT|C COURSE:
PEACE IS HAILED
Optimism Indicated With
Crisis 0Ver-WhoIesaIe
Centers Active,
STORE ORDERS ADVANCE
FAR ABOVE 1887 LEVELS
Ga,ns Range From 10 to 12 Per
Cent-Apparel, Household Goods
and Accessories Favored.
BY THOMAS E. FLANAGAN
Associated Press Financial Editor

AhoHAS T.. FLANAGAN,
associated Press Financial Editor.
Business hobbled along erratically
this week.
IL was burdened with threats of
war in Europe and effects of the hur-
ricane in the Northeast. While these
factors served to sap the vitality of
traoe and industry, the record did
Include some improvement.
Carloadings and motor production
increased. Retail trade generally was
nenind the like week last year. but
a number Of cities in the South and
Midwest turned in advances.
The steel industry lacked the nour-
lshment OF robust orders from the
railroad and construction industries
ana operations dipped A final esti.
mate on electric power output was
not available owing to the DISRUPTION
OF operations in the New England
area, but preliminary figure indi.
Gated a moderate downswing.
War Fears at End.
The Department of Commerce. re.
viewing business in So leading cities.
said that with the lifting of war fears
abroad optimism over the future was
indicated"
Wholesale trade was brisk in most
centers. In New York, the Nations
wholesale capital, it was reported that
business places was running about 10
to II per cent ahead of a year ago.
Favored lines were apparel, acces.
sories and household goods.
Demand for industrial equipment
picked up. Buying of raw materials
broadened. Motor sales improved as
dealers reported further inroads into
used car inventories. Employment
increased in various areas, although
some increases were seasonal. For
the 11th consecutive week building
awards ran ahead of the corresponding
week last year.
Inventories Depleted.
Analysts, scanning the final three
months of 1898, stressed the depletion
OF inventories in many sectors Of trade
and industry
A further decline in business loans
during the week suggested that manu-
facturers and retailers were proceed
ing with caution. In connection with
forward buying it was noted that
both security and commodity mar
kets fluctuated violently during the
week because of war scare news. Un-
til the international situation is clari-
fled further. it was argued, business
and financial executives would be
inclined to proceed slowly in max
ing forward commitments.
Three things captured the atten-
ton Of business: Low prices for farm
products, the sluggish flow of the new
capital market and the shaky financial
condition of some railroads.
Low farm prices may be offset in
part by large crops, in the opinion of
some.
S. E. C. Registrations Jump.
The Securities Commission report
ed that registrations for the intended
issuance and sale of securities in Au-
gust rose to the best total in IA
months. Nevertheless, it was noted
that the bulk of this financing was
intended for the redemption of out
standing obligations. Bonds slated
for issuance for new plant and equip
ment work remained at a relatively
low ebb. Meanwhile, common stock
financing gave promise of little in the
way of new enterprise.
Railroad analysts took some cheer
from the fact that the railroad in
dustry reported slackening in the
rate Of earnings decline from last
year.
On the other hand. the Associa-
! ton of American Railroads added
q gloomy footnote to the financial
condition Of the industry. 1t re-
ported that in August 40 class-1 sys-
TENS failed to earn expenses and
taxes in the first eight months OF
1898. OF these 20 were in the East
ern district. eight in the Southern
and 81 in the Western area.
Barometers Outlined.
At the weekend the following yard
sticks on business were available:
The Associated Press index of in
| dustrial activity declined to 1874
from 1876 the previous week and com,
pared with 102 in the like week .
year ago.
| The American Iron & Steel Insti-
tute estimated steel production at 467
per cent of capacity, a slight de-
crease from the preceding week. A
month ago the rate was A, year
ago 744. f
The Edison Electric Institute, in .
preliminary estimate, reported output
for the week ended September "A at
,146,562 900 kilowatt hours, a mod
crate decline from the previous week
| and 5.3 per cent under the COR
responding week of 1887.
The Association Of American Rail-
roads reported carloadings at 675 $50
in the week ended September "a, an
increase Of 23 per cent from the
week before but down 1913 per cent
from the like period last year.
Wards Automotive Reports said
motor production rose to 25.405 units
from 20,390 the previous week. Pro-
duction was 44,330 in the same week
year ago.