Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-08-21
SIGNS FOR WEEK
POINT TO HOPE Of
BETTER BUSINESS
Increases in CarIoadings,
Steel Production and
Motors Seen.
RETAIL DRY GOODS UNIT
IS EXPECTING UPSWING
Commitments and Production
Schedules Are Being, Made
With Caution.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.
Increases in carloadings and pro-
duction of steel, motors and electricity
evidenced business improvement this
week.
Reports from the Nations indus
still was moderate, however, that
new commitments and production
schedules were set cautiously.
Blistering heat depressed retail
trade in many sections. Despite
this. retail trade analysts reafirmed
their faith in the fall and winter
outlook.
For example, the Bureau Of Agri-
cultural Economics forecast mod
crate improvement" IN consumer buy
ing power and expanding demand
for farm products over the next few
months.
Dry Goods Trade Hopeful.
OF like tenor was survey pub
lished by the National Retail Dry
Goods Association. 1t said that 90
per cent OF retailers answering
canvass of $500 members expected
a general business pickup in the fall.
In support of these opinions. experts
pointed to the present momentum of
industry, increased employment in
some centers, Government spending
and reductions in both industrial
and retail inventories.
In addition, the week produced
further evidence of potential vitality
in the automobile industry. The
Commerce Department reported that
inventories in the hands of dealers
had been falling almost constantly"
since December.
1t was further explained that, on
the basis of current statistics, the
average number Of new cars on hand
per dealer should be down to four-the
healthiest inventory position since
1884. Also important was the report
that correspondingly stable reduc-
tons had been made in inventories
Of secondhand motors.
Steel Pushes Ahead.
Steel production pushed ahead. but
the rate Of gain slackened somewhat
The American Iron and Steel Institute
estimated steel production at 40.4 per
cent of capacity. Last week 1t was
1914. a month ago 1914 and Q year
ago 1872.
Scrap steel is a basic component
Of steel production and the price of
this raw material has been a tradition
al barometer of the industry's con-
dition In recent weeks, scrap prices
had risen faster than steel companies
liked. But this week, lower prices
were recorded at Pittsburgh, Chicago
and Philadelphia.
What improvement the steel indus
| try enjoyed came principally from
widely scattered miscellaneous sources.
| Structural steel was in demand largely
as the result of projects financed by
the Government.
The railroad industry generally re-
manned on the side-lines as a consumer
Of steel, although the Erie placed an
order for $500 tons of rails
AS the week drew to an end, Thur
man Arnold, Assistant Attorney Gen
eral and a member Of Government
Committee Investigating Monopoly,
made important business news.
In a radio address he advocated
| large expansion in the staff Of the
Justice Department to enforce the
antitrust laws on a scale never before
attempted.
You can't police country as large
as America with a corporals guard"
he said.
Electrical Output Is Up
7 For the week ended August Is, the
Edison Electric Institute reported
power output at 2,133, Sal 900 kilowatt
hours, q moderate upturn, but down
7.3 per cent from the corresponding
week year ago.
Automobile production, as reported
by Wards rose to 23,940 units from
100 the week before and compared
with 81, 339 in the like week last year.
The Association Of American Railroads
reported carloadings Of 9.56l in the
week ended August 10. small gain
over the previous week, but 23.S per
cent under last year.
Rejecting these upturns. the Associ-
ated Press index Of industrial activity
rose to 1853, a new high for the year.
A week ago it was TAI, year ago
1892.
The Commerce Department in its
weekly survey Of business in So key
cities said
while the current week developed
manifestations Of the continued slow
movement of recovery forces. there
were evidences of q slowing down of
trade, both retail and wholesale. This
reduced tempo apparently was based
more on transient conditions than on
any solid apprehensions as to the
business outlook"
The review stressed the adverse ef-
fects Of heat in many sectors. 1t noted
that, as a group, southern cities turned
In more favorable reports than other
parts of the country.