Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-08-07
TRADE ANALYSTS
ARE CHEERED BY
WEEKS REPORTS
SteeI's Rise and Consumer
Goods Activity Provide
Optimistic Note.
HIGHER STOCK PRICES
GREETED BY EXPERTS
Building Permits Show Gain and
Other Industries Indicate
Business Upturn.
By THOMAS e. FLANAGAN,
Associated Press Financial Editor

Business Upturn.
BY THOMAS E. FLANAGAN,
Associated Press Financial Editor.
Analysts who scanned the Nations
business last week found 1t good.
As in recent weeks, they discovered
no spectacular items Of improvement,
but rather gradual accumulation Of
forces.
Two facts stood out. The steel
industry, normally dull at this season,
showed more strength. Consumers
goods industries-which produce
things people use and replace-held
gains stubbornly in some lines and
moved forward in others.
Showing improvement along with
the steel industry were the railroads
and the power producers. Automobile
makers. preparing to turn out new
models, throttled production down to
new low for 1888.
Resume Moderate Gains.
Although muggy August weather
dulled the edge Of trade in some sec.
tions, most regions reported resump.
ton OF moderate gains.
When the stock market scared in
the middle Of June. it caught many
business experts of guard. Some
thought it flash IN the pan, few
had explanations for the climb, but
most said they would wait and see If
showed staying power. So far, it has.
Once more last week, while demand
quickened for pivotal steels, coppers,
motors and store shares, analysts her
aided higher prices as harbingers Of
better days to come. Greeted by one
Of Wall Streets most conservative
commentators as IAN event of out
standing importance" the rising'stock
market itself helped lend new courage
to business.
Meanwhile, other facts provided
cheer. Dispatches to the Commerce
Department cited gains in building
permits in many cities and favorable
reports on the furniture, lumber, tires.
leather and glass industries.
More Aggressive Buying.
= VA Glllo
agency reported that excessive retail
and wholesale inventories largely have
been removed. As a result, both types
Of merchants are expected to buy moro
aggressively for the anticipated rise
in trade this fall"
The American Iron and Steel Insti.
tute reported operations advanced for
the fourth consecutive week. The
rate. 1913 per cent Of capacity, was
the highest since the week of Novem-
Der 8, 1887, when mills were working
at Al per cent of capacity. The pre-
vious week the rate was 81; a year ago
855.
Iron Age said steel trade optimism
was more restrained" than a week
ago. Nevertheless, scrap steel at
Pittsburgh rose to a new high for the
current recovery. Another bright ele.
ment was that the automobile indus
try-top-rank steel consumer-ap-
peared to be in the best position
among large steel users. The largest
companies reported q sharp decline in
inventories. When production lines
are ready to get under way once more,
these companies will be able to give
much support to steel operations.
Good and Bad Sides.
Wards Automotive Reports said out
put decreased to 14,77l units from go.
800 a week previous and 1876 in the
corresponding week Of 1887. The mo-
tor outlook had its good and bad sides.
Inventories Of both new and used cars
have been falling and-in the opinion
Of many-this will pave the way for
fresh sales. On the other hand, the
business recession which started in
the fall of 1887 put stable dent in
the purchasing power Of both farm
and industrial workers. which may
hamper distribution.
The Association Of American Rail-
roads reported that carloadings were
5Ss, 703 cars In the week ended July 30.
This was 3 per cent over the previous
week, but pa per cent under the like
1887 week., Traffic and other railroad
experts held the failroad situation
leaves much to be desired. Railway
ulo4AdSCulCutS AldNC UCCh olocnOAoA4CO
with earnings and the industry is
harassed by the controversy over
proposed Is per cent wage reduction
for 900, 900 employees Of major systems.
Electric Output Up.
In the week ended July 80 produce
ton of electric power rose slightly to
2,093, 907 900 kilowatt hours, a level ~
per cent under last years, the Edison
Electric Institute reported.
The Commerce Department, report
ieg on business conditions in IS cities.
said: Trade generally continued un-
der last years level, with q decreasing
margin Of decline.
1.-THE following cities reported i'm.
provement over last years compare
tives: Boston, Minneapolis. Philadel-
phia. Oaha, New Orleans, Atlanta,
Wilmington and Norfolk.
Building prospects furnished the
clearest sign Of general improvement
throughout the country.s The follow
ing cities reported substantial increases
in July building permits over July,
1887: New York, Los Angeles, San
Francisco. Pittsburgh, Philadelphia,
Minneapolis. st. Paul. Dallas, Fort
Worth, Galveston, Seattle and But.
falo."