Evening star., 1938-02-20
TRADE FOLLOWS
ERRAT|C COURSE
WITH INDUSTRY
Small Steel and Auto Gains
Contrasts With Power,
Loadings Decline.
RETAIL VOLUME OFF
IN IS MAJOR CENTERS
Losses From Year Ago Reported
by Commerce Department
in Weekly Review.
BY THOMAS E. FLANAGAN.
Associated Press financial Writer.

Associated Press financial Writer.
The Nations business pursued an
cratic course during the past week.
Modest gains in steel and motor
production contrasted with losses in
freight carloadings and output of
electric power.
Retail trade was mixed" the Com
merce Department said, reporting
business conditions in 36 cities.
The Associated Press index Of in
dustrial activity sagged to 10, the
lowest point since December, 1894.
The previous week it was 70.4, q year
ago 1907.
Operations In the steel industry
moved up notch to 81 per cent Of
capacity, the American Iron g. Steel
Institute estimated. This compared
with 30.7 in the previous week, 29.S a
month ago and 816 in the like week
Of 1887.
Steel Price Move Hailed.
The high spot of the weeks steel
news was provided by United States
Steel Corp, which reafirmed prices
on shipments of hot and cold rolled
steel products until July /. Trade
circles said this step would have a
stabilizing effect and might bring in
orders to the industry otherwise held
back by uncertainties over prices.
To break even." steel men recalled.
the industry at large has to run at
from 40 to IS per cent of capacity,
compared with the current rate of 81.
Iron Age said automobile COM
panies, top consumers of steel, had
enough steel for 80 to 60 days, de-
pending on the rate of production.
Output of motor assembly lines ad-
vanced to s9.100 units from $3.50
the previous week and compared with
-Ss,740 in the like 1897 period, Wards
reported. The survey said, "sales of
both new and used cars are showing
considerably more activity since the
first Of February than had been ex-
pectsd."
Freight Lsadings Down.
In the week ended February Is.
carloadings declined SO per cent to
542.99l, the Association of American
Railroads reported This was q drop
Of 21.1 per cent from the correspond
ing week last year Miscellaneous
freight, usually q barometer Of trade
conditions, gained slightly. Coal ship
ments dropped. Other classifications
were little changed.
Production of electric power In the
week ended February 13 was down to
2,052 302, 900 kilowatt hours, the Edi-
son Electric Institute reported. The
total was 81 under the like week a
year ago. Bearing witness to the
slower pace of industry, sizable losses
from 1887 were recorded in the central
industrial and New England regions.
Surface indications on the stream of
business afforded little near-term en-
couragement to observers. Currency
in circulation dipped. New life in
surance written in January was lower
than 1887. Railroad and industrial
earnings showed the inroads Of higher
operating costs. New financing was
at the lowest ebb in several years.
Wholesale prices eased Bank clear
ings in % leading cities were under
1887 for the fourteenth consecutive
week, Dun g. Bradstreet reported.
Is Cities Show Losses.
Reports to the Department of Com
merce disclosed losses in retail trade
in IS important centers compared
with the like week a year ago.
In seven cities-Boston, Cleveland,
Dallas, Buffalo. Charleston, Indian
apolis and Norfolk-there was Slight
improvement. Decidedly mixed
trends" were revealed in Philadelphia,
Cincinnati, Houston and Memphis.
In Birmingham. Chicago, Balti-
more, Denver. Honolulu, New Orleans.
Milwaukee and Washington retail
/ turnover was about the same as last
year. It was not possible to COM
pare conditions in Louisville owing
to floods during the corresponding
period last year.
Cities showing definite losses" were
New York, Atlanta, Minneapolis, st.
Louis. Kansas City, Detroit, San
Francisco, Los Angeles, Portland,
Oregon; Seattle, Jacksonville. Omaha,
Pittsburgh, Savannah and Whining
ton.