Evening star., 1938-04-03
ADVANCE SCORED
BY RETAIL TRADE
AS EASTER NEARS
Steel and Auto Rates Up
With Rail Loadings.
Power Total OFF.
TWENTY LEADING CITIES
REPORT SALES GAINS
Seven Suffer Declines and Others
Show Little change-Less
Pessimism Expressed.
By THOMAS E. FLANAGAN.
Associated Press Financial Writer

Associated Press financial Writer.
Business moved ahead gingerly in
the week just ended.
The approach of Easter auickened
the pulse of retail trade. Industry
struck faster pace in some sectors.
but fell back in others
The steel industry felt the effects
OF better miscellaneous demand. Car
loadtngs and automobile production
improved. On the other hand. cleo
trio power output dropped sharply
from the level year ago.
For the second consecutive week the
Associated Press index of industrial
activity gained 1t rose to 69.3 from
68.8 the previous week and compared
with 1852 in the like 1887 week.
The Commerce Department said
reports from 35 key cities lent a
mildly favora BILE aspect to the Nations
retail and wholesale trade picture for
the closing days of March"
There was a rather general up-
ward movement in retail turnover
from the previous week. Twenty OF
the reporting cities definitely showed
gains, some of which were pronounced.
Losses were sustained in seven of the
reporting centers while in others there
were no changes of consequence ap-
parent
Comparison Distorted.
Experts explained that comparison
With the corresponding period last
year was distorted by the fact that
Easter came earlier in 1887 than in
1898.
1t Is of interest to note that the tone
OF many of the reports, insofar as
trade outlook is concerned, were less
pessimistic than has been the case
IN recent weeks . TIE Commerce De,
partment said.
Steel output advanced to 35.7 per
cent OF capacity, the American Iron
q Steel Institute estimated. This
compared with 1877 the previous week
2s,3 month ago and 90.7 in the cor
responding 1887 week.
Noting the heightened demand for
miscellaneous steel products, Iron Age
said the big buyers-the motor, rail-
road and construction industries -
were doing little to bolster steel orders.
Trade opinion was that the scrap
steel market had yet given no hint
OF production advance along a broad
front. On the contrary, a drop in
scrap prices in the face Of higher
production was seen as indicating both
thin buying at mills and shrinking
export demand.
Construction Lays.
One cloudy spot on the steel horizon
was the failure Of heavy construction
to brace up as is usual at this time
of year.
Because the steel industrys welfare
is related closely to the motor in
dustry, unusual interest attached to
the meagerness OF improvement in
motor production and the continued
low rate at which production is run
nlng compared with a year ago.
Output was $500 units, compared
with $500 the previous week and
97.71o in the like week last year
wards reported. The slight rise was
attributed to advancing volume of
orders coming to the factory"
Freight carloadings gained per
cent to 572,952 in the week ended
March 26, the Association of Ameri-
can Railroads reported. The upswing
was aided by a fair gain in shipment
OF miscellaneous classes of freight.
However. the total was 243 per cent
under the like week year ago.
A footnote on the CONSTRUCTED f.
nanclal condition of the railroad in
dustry was provided by the associa-
tlons report on operating income for
the first two months of the year. It
totaled $4783,395. compared with ST.
o59,6l5 in the like 1887 period.
Power Output Slumps.
Suffering the deepest year-to-year
cut since early 1888, electricity output
fell under the two-billion kilowatt
hour weekly level for the first time
since July, 1896. For the week ended
March 26 the total was 1875 ,239, 900
klloWatt hours, downswing of about
42,40o.000 from the previous week and
l0.2 per cent under the like 1887
week. An important factor in the de-
cline, experts said, was the continued
slow use OF power in the central in
dustrial region, the area which nor
mally is the heaviest user.
Further contraction in the demand
for bank credit by business and apri-
culture was shown in the week ended
March % by reports from Federal Re-
serve member banks in leading cities,
Banking analysts said the steady de-
cline reflected mainly liquidation of
borrowings contracted a year ago to
step up inventories.
Shares on the New York Stock Ex-
change toppled to the lowest levels
since the spring of 1898, but recovered
somewhat at the end of the week.
Grains, cotton and other commodities
were marked down on the average.
In New York, the Nations largest
trade center, conditions were dis
tlnctly discouraging. the Commerce
Department reported.
Along the wholesale front It was
reported the bulk of ordering in Easter
apparel was for lower priced goods.
Strongest demand came from the aeri.
cultural South. The Pacific Coast
and industrial centers of the Midwest
bought sparingly.