Evening star., 1938-07-24
STEEL IS LEADER
IN WEEKS CLIMB
Of j. s. INDUSTRY
Car|oadings Squirt 2O.2oAo
and Electricity Output
Jumps 11.10o.
BAD WEATHER HURTS
TRADE IN MANY AREAS
Signs of Impaired Consumer
Buying Power Touch Off
Pessimistic Key.
BY THOMAS Z. FLANAGAN,
Associated Press Financial Writer.

By THOMAS E. FLANAGAN,
Associated Press Financial Writer.
Steel and other big units of industry
pushed ahead along the business front
this week.
None gained ground in a spectacular
way. But statistics indicated contra
seasonal upswings in activity at steel
and textile mills, in construction,
electricity output and freight carload
ings. Automobile production was
throttled down in preparation for the
change to new models.
In many sections Of the country
rain took the starch out of retail trade.
On the other hand, reports to the
Commerce Department left little doubt
that in many regions hopes were good
for a robust fall trade.
Aside from hard, cold figures, which
told of current business and industrial
improvement, there were other less
tangible signs of betterment.
Motor Car Optimism.
Among those high on the list were
cheerful reports from the motor in
dustry. Some few months ago large
numbers of used cars standing url-
bought in dealers yards provided
headaches for the motor makers. I'm
til these inventories were sharply re-
duced, many said, the industry would
have to keep a restraining hand on
production levers. This week, how
ever. it appeared that there was less
concern over stocks OF secondhand
motors. Wards automotive reports
noted IAN increasing dearth in used
cars in key points" This resulted, the
survey said, from buying 80 aggres-
sive that a marked acceleration In
price ranges has occurred"
There were indications that the
capital market would continue to thaw
out. Two major industrial companies
disclosed they would tap the capital
market for a total of s75,0o0,0 900. A
large utility system filed with the
Securities Commission a statement
concerning a proposed s36,000,ooo is
sue Of bonds.
Those Who tried to appraise the
outlook for new financing had one I'M
portant guide-post-a report from
Wall Street that recently floated in
dustrial bond issue had called forth
the heaviest private investor demand
in several years.
Firmer Prices Noted.
Other bright spots on the business
!, ir,nJ yNrions fnv
some commodities, price reductions
announced by one big retailer and
reports that more wholesale buyers
had expanded budgets for fall to offset
declines in retail inventories.
The business picture was not WITH
out is dark side, however. In the steel
industry, for instance, increased de-
mand came mainly from miscellaneous
consumers, while the railroads and
motor producers kept cautiously to the
sidelines.
At the same time there were re-
ports which indicated impaired con-
sumner buying power in many sec
tions. In some industrial centers men
we're laid off and pay rolls reduced.
The Agriculture Department estimated
that farmers receipts in June declined
under those of year ago.
The American Iron and Steel In
stitute reported production up to 1854
per cent of capacity, the highest since
last November. The previous week it
was 1928, month ago, %, and a year
ago, 825.
Carloadings Squirt.
The Association of American Rail-
roads reported carloadings totaled
602,3 800 in the week ended July 16
This was an increase of 20.2 per cent
over loadings in the previous week,
which included the independence Day
holiday. The figure was 214 per cent
under that for the corresponding week
of 1887, however. Traffic experts
noted that all types of freight in
creased over the previous weeks levels.
The width of the advance in the move
ment of miscellaneous products en-
phasized the way in which the con-
sumers' goods industries-such as
shoes and clothes were moving
| forward.
In the week ended Juy Is electricity
production totaled 2089, ,772 900 kilo-
watt hours, the Edison Electric In
stitute reported. This was up Ill
per cent over the preceding week, but
81 per cent under the like week a
year ago.
Wards estimated motor output at
32,070 compared with 42,0l0 the pre-
vious week and 88,055 In the like 1897
period.
The Associated Press index of indus
trial activity rose to 69.2 from 683
the week before and compared with
l047 year ago.
| Weather Hurts Trade.
| In its review of business conditions
In "a key cities, the Commerce De-
partment said:
Although general business contin-
ued to give evidence of some slight
improvement, rainy weather in some
parts of the country took heavy toll
Of retail trade during the week.
wholesale trade marked time, but
reports from the lumber and shoe
industries were encouraging. Auto
mobile sales figures showed gains over
recent periods in some cities.
While the progress of retail trade
recovery suffered a setback, there
seemed to be no feeling of doubt
among merchants as to the outlook
for improved business later in the
summer"