Evening star., 1938-12-04
Retail Volumes
Score Advance
During Week
YuIe Shopping, Cold
Weather Help to
EnIiven Trade
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

Associated Press Financial Writer.
Christmas shopping and cold
weather in many sections enlivened
retail trade this week.
december is usually a month of
industrial let-down and statistics in-
dicated that this year would prob
ably run true to form.
Moderate declines were recorded
for steel production, electric power
output and railroad freight car.
loadings. On the other hand, the
automobile division, which for weeks
has been the strong boy of industry,
continued to show increasing stam-
ina.
Optimism in motor circles con-
tinued at high pitch. Retail sales
have been brisk. Dealers have been
attempting to build up stocks and
production has held to a steady up
ward course. The opinion of experts
was that the automobile industry
was giving about as much support
to general business as could be ex-
pected for some time.
h1n furcnaSeS Lag.
The strength of the motor industry
served to re-emphasize the compara-
tive lack of vitality in various other
important sectors.
Railroads, many financially em-
barrassed, have failed to buy equip
ment in extensive quantities and
the machinery and heavy industrial
equipment makers have been drag
ging along.
At the week end, some business
men summed up as follows:
The consumer goods industries
such as motors. apparel and home
equipment goods-have been send
ing out waves of fresh energy to re-
lated business channels.
With the aid of better residential
building and public works projects,
these industries have been bolster
ing up the steel and other metal in
duStrieS.
Continued general business i'm
provement, some analysts said, de-
pended on whether the heavy indus
tries expanded after the turn of the
year. A partial answer to this ques-
ton rests with the willingness of
private enterprise to move boldly
into the capital market for new
money.
On the latter score it was noted
that financing operations during the
week ran true to the type which has
prevailed for many months. Most of
it consisted of high-grade bonds for
refunding old debts. Speculative
issues, including common stock, were
conspicuously absent.
Store Activity Hailed.
The Commerce Department. in It's
weekly survey of business in 81 cities,
said:
Sustained improvement in Amer
ican business was evident during the
week. Seasonable weather and the
rising tide of Christmas shopping
lifted retail trade throughout the
country close to last years volume,
and in some cities it surpassed the
levels of 1887.
There was an undertone of more
than seasonal improvement in many
lines. Building construction was ac-
tive in Chicago. Louisville, Kansas
City and Seattle.
Gold weather gave strong stim-
illus to retail buying in New York.
Chicago, Boston, Buffalo, Los An
geles, Jacksonville, Mobile and New
Orleans.
Other cities gave Christmas buy
ing credit for the upward turn, with
Christmas savings funds in several
centers reported approximately
equal to last year"
A few factors lent strength to
hopes for good business in the con-
sumers' goods lines. For one thing, it
was noted that stores selling to wage
earners Jared better than luxury
shops.
Wholesale Firms Buster.
In manufacturing and wholesale
fields, new orders were coming in
at faster pace than last, year, and
there were few signs that inventories
were heavy enough to induce the
backsliding in new business which
occurred a year ago.
Irregular improvement in wages
and employment also helped
brighten the picture, although it
was recognized that some of this
betterment was seasonal.
Statistics of major lines published
during the week included:
The American Iron and Steel
Institute reported production of
steel of to GOT per cent of capacity
from 61.9 per cent of the previous
week. A month ago the rate was
568, year ago 29.6.
Output of electric power for the
week ended November 26, as reported
by the Edison Electric Institute,
totaled 2,183, ,807 900 kilowatt hours, a
decline from the preceding week but
ST. per cent ahead of the like 1887
week.
Wards automotive reports esti-
mated production at 1885 units,
compared with 1880 the previous
week and 86,173 in the corresponding
week last year.
The Association of American
Railroads reported that in the week
ended November 26 carloadings to-
tailed 562 ,084, down l45 per cent
lowing to the Thanksgiving holiday
from the previous week, but IL per