Evening star., 1938-03-27
TRADE HES|TANT
DESPITE SIGNS Of
SPRING REVIVAL
Steel and Power Operations
| RiSe-Auto Output and
| Loadings Drop.
FAIR WEATHER HELPS
| SALES IN SOME AREAS
Retail Total Remains Smaller
Than Year Ago-Gains and
Losses Near Balance.
BY THOMAS z. FLANAGAN,
Associated Press Financial Writer.

Associated Press Financial Writer
Conflicting trends again bore wit
ness to hesitancy along the business
front in the week just ended
Throughout the Nation there were
signs that trade and industry were
taking on life for the usual spring
revival. Nevertheless, lack of uni
formity indicated to business observers
spring business had far less momen-
tum for the upgrade than at this time
last year.
For the third consecutive week the
steel industry pushed operations
ahead. Output of electricity gained
a little. On the other hand, de-
clines were recorded in motor pro-
duction and carloadings.
Fair weather in some parts Of the
country increased retail sales. Al
though total distribution was under
1887, experts noted that at this time
year ago Easter shopping was in
full swing. Easter comes three weeks
later this year than last.
Industrial Index Higher.
The Associated Press index Of in
dustrlal activity rose to 688 from
6S4 the week before. In the like
week of 1887 it was at 1853
The Commerce Department in its
weekly survey of 35 cities said sea-
sonal demand for merchandise
"swelled the volume of retail trade
| throughout the country"
While the 35 reports show varv-
ing conditions in the different seq
ments Of business in the several
cities" the department said. "the
general tone of the surveys seems to
indicate that conditions are just
about holding their own, with a
rather fair balance between the IA
vorable and unfavorable indications
For example, there are numerous
| instances of men going back to work,
while often, in the same cities, re-
ports show that workers are being
let out"
Steel Activity Climbs.
Operations in the steel industry ac-
celerated to 33.7 per cent of capacity,
the highest since mid-November, the
American Iron and Steel Institute
said. This compared with 321 the
previous week, 3O4 month ago and
896 in the like week last year.
| Steel trade observers took some
cheer from the report of Iron Age
that probably for the first time since
the first half of 1887 orders are run
ming in excess of shipments" Much
of the improved demand was of sea-
sonal nature, particularly wire and
fence products. this report said.
Although engineering construction
for the first II weeks of the year has
been well ahead of the like period
last year, structural demand for steel
has been somewhat disappointing,
steel men said.
Motor output declined to $500
units from 57,555 the preceding week
and compared with 101,115 in the
like week year ago, Wards automo-
tive reports said
In the background of the slacken-
ing pace of automobile production,
experts said, have been such factors
as shrinking dividends, lower farm
income and pay cuts and lay-offs in
industrial regions.
Freight Loadings OFF.
Freight carloedings dropped 80
per cent to 540,332 in the week ended
March 10. the Association of Amer
ican Railroads reported A stable
drop in coal shipments contrasted
| with a moderate uDtllrp in shinnoente
of miscellaneous products.
Output of electricity in the week
ended March l9 totaled 2,0l7,653, 900
kilowatt hours, slight rise from the
preceding week, but 81 per cent un-
der the like week year ago.
The stock market, traditional ba-
rometer of business sentiment, fell to
the lowest point in about four years.
On the New York Stock Exchange
prices on Friday went into the steep
est decline since November 10, 1897.
Selling abated in the final session.
Bonds also dropped. Rail obligations
were under heavy pressure.
Important financial weather-vanes
provided little encouragement. For
the nineteenth consecutive week bank
clearings in % leading cities were
under 1887, Dun e. Bradstreet re-
ported. Meanwhile, the Federal Re
serve Board noted modest decline
in bank loans for commercial, indus
trial and farming purposes.
Wholesale prices Sagged to a new
low for the current recession. Lower