Evening star., 1938-07-31
VARIOUS FACTORS
POINT T0FURTHER
BUSINESS UPTURN
Steel Industry Continues to
kccelerate-Stocks Hit
New 1888 Highs.
U. S. WAR ON SLUMP
IS HAVING ITS EFFECT
Motor Makers Report June Sales
in Corn Belt Make Best
Comparative Record.
BY THOMAS E. FLANAGAN,

Associated Press Financial Writer.
Enough bright spots appeared on
the Nations trade and industrial hori-
zon last week to sustain hopes of
further improvement.
Business men said they found en-.
couragement in these factors:
The steel industry continued to ac-
celerate. Share prices on the New
York Stock Exchange reached new
highs for the year. Out in front were
equities Of manufacturing, oil. copper.
railroad equipment and motor COM
panies.
Residential building showed brisk
gains. Prices of such basic raw ma
terlals as copper and scrap steel rose.
Many other commodity prices held
steady, factor which the experts
found cheering Business failures de-
creased to a new low for 1898. En-
ployment picked up little in some
sectors.
Increased Confidence.
Significant, but hard to pin down,
Government economists said, was the
gradual flow of Federal funds into
business channels. Federal agencies
continued to plod ahead on the Gov
ernment's spending lending program.
but the extent to which this aided
business eluded statistical measure
nent. More important, in the opinion
OF some, was the increased confidence
which private enterprise showed.
Contra cfiYon u-it1
indications were downturns in car
loadings and motor output. Electric
ity outturn held about steady for the
week
The Commerce Department In its
survey of 36 key cities reported that
heavy rains throughout large part Of
the country again slightly retarded
the forward movement of retail trade.
Steel Improvement.
In the steel industry it was noted
that most of the improvement came
from buying by miscellaneous manu-
featuring industries. No robust i'm
provement is expected in the steel
industry until the automobile industry
starts buying for new model require
ments
Those who sought an indication of
sales trends had two guideposts. One
motor company reported its sales
were resisting the seasonal doldrums
At the same time motor makers had
reports that June sales in the corn
belt" made the best comparative
record of any part of the country and
that good farm returns from large
crops could be expected to bolster
sales.
The construction industry did rela-
lively little in the way Of steel buying.
Interest continued to center on the
outlook for speeding up Government
projects. Experts said the early fall
should bring good steel orders from
this quarter. The railroad industry
once more was conspicuous by its alb
sence at the steel counter.
$40 Of Capacity.
Steel mills operated at 81 per cent
Of capacity. This estimate by the
American Iron g. Steel Institute COM
pared with 1854 per cent the previous
week, 28.7 month ago and 843 in the
like 1887 week.
Wards automotive reports said
motor production was down to 30.39O
units from 32070 the week before and
s6,4o3 in the corresponding week last
year.
Surveying the employment situation
in widely separated sections Of the
country. the department noted a de-
crease of 1858 persons in Pennsyl-
vania relief rolls in the week ended
July is due to increased w. P. A.
activity and 1000 fewer families on
relief in Boston.
The Texas State Employment Serv-
ice reported an increase of 80 per cent
in private job placements in Dallas.
Georgia textile mills resumed full-time
operations. while Atlanta shoe factories
were reported behind in filling orders.