Evening star., 1938-08-14
TRADE ANALYSTS
FIND CHEER IN
AUTO PROSPECTS
Industry Is Reported Ready
to Begin New Models,
Hiring Thousands.
UNEMPLOYMENT LOADS
INCREASE ELSEWHERE
Modest Rise Held to Be Due to
Summer Slack-Force of
Recovery Strong.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

Associated Press Financial Writer
The Nations busines found encour-
agement this week in the automobile
industry.
Although actual motor production
dropped to new low for the year.
word came from leading automotive
centers that the industry was prepar-
ing to swing into a new productior
season.
Detroit provided an example of
what heavier production will mean to
industry and business at large Max
ers prepared for the output of new
models. thousands Of workers were
called back to work Within two days
1850 families had withdrawn from
welfare rolls.
Meanwhile the Department Of Com
merce reported employment increases
in other centers-although it indi-
Gated the increases were modest
Statistics which crossed the desk
Of business analysts during the week
showed the effects of the midsummer
season.
Electricity Production Up.
Carloadings, steel and motor output
slackened. Electricity production
made a contra seasonal rise aided in
part by increased demand for power
in the Detroit industrial area.
Soaring heat caused retail trade
to wilt in some sections Neverthe-
less. the Commerce Department re-
ported:
THE forces Of recovery throughout
the country moved forward steadily,
though slowly"
Experts attached considerable i'm
portance to the fact that. while dollar
turnover Of goods showed losses. actual
sales of goods probably equaled or
even excelled last years totals owing
to lower price levels
Wholesale Trade Advances.
Wholesale trade moved quietly
ahead. although reports from leading
centers said heat had kept many buy
ers out of the market
In the industrial sector scrap steel
prices rose. Experts noted that the
steel industry leaned mainly on motor
makers and miscellaneous manufac-
turers for support.
Meanwhile the construction indus
try, aided by an increased number of
Federal projects, afforded some prom
ise of improvement.
Iron Age said that an increased
number of private construction jobs
was on hand. but explained that this
indicated buying Of steel only in the
smaller tonnage brackets. Still absent
among steel buyers was the railroad
industry Until the railroads come
into the market, steel output will lack
important support
The American Iron and Steel Insti-
tute reported steel production at 39.4
per cent of capacity. In the previous
week it was 1913, 323 per cent a month
ago and 846 per cent in the like 1887
week.
Motor production as reported by
Wards dropped to 1890 units from
l4,77l the preceding week and 103.250
in the corresponding period year ago.
Corloadings Lower.
The Association of American Rail-
roads reported carloadings at 584,05o
in the week ended August 6, slight
downturn from the previous week and
238 per cent under the figure for the
like week last year. The Edison Elec-
trio Institute said power production
totaled 2.115,847, 900 kilowatt hours in
the week ended August s. This wa
up little from the previous week but
down GA per cent from year ago.
The Commerce Department said that
lin the following cities retail trade
was ahead of last year: Wilmington.
Memphis, New Orleans. Norfolk and
Jacksonville. In Milwaukee. Washing
ton, Atlanta and Omaha the decline
was so small as to be without signifl-
canoe. Chicago retail establishments
continued to show encouraging signs
of improvement, with special sales OF
summer goods enjoying success. Trade
improved also in Boston when fair
weather arrived"