Evening star., 1938-03-13
BUSINESS SHOWS
SIGNS Of UPTURN
AS SPRING NEARS
Steel, Electric and Motor
Outputs Climb With
Car|oadings.
RETAIL ACTIVITY GAINS,
HOLDS BELOW YEAR AGO
Conservative and Constructive
Trend in Washington Hailed
by U, S. Chamber.
BY THOMAS E. FLANAGAN,

| Associated Press Financial Writer.
The Nations business drifted out
OF the winter doldrums during the
past week and showed signs of pre-
pairing for spring.
Improvement pulsed through both
trade and industrial channels. A
quickening pace was noted in steel
production. carloadings and output Of
electricity and automobiles. Retail
trade gathered momentum.
For the third time since the new
year, the Associated Press index Of
industrial activity advanced. 1t rose
to 68.5 from 68.2 the previous week.
A year ago it stood at 1857.
Noting some favorable straws in
the wind" the Commerce Depart
ment said, retail trade throughout
the country generally seems to have
acquired some added momentum since
the f1rst of March, although it is still
tagging behind the comparable period
OF 1887. Similar conditions prevailed
IN wholesale lines"
The Chamber Of Commerce of the
| SAAeSu ototCo 2Ol lllC lllSU tlIIlS SlIlCP
the business decline started, said "a
changing Washington outlook is af-
fording business some measure Of
encouragement"
Thus far, the chamber added in It's
periodical review, the shift has been
more psychological than real, but
the signs that a more conservative
and constructive trend is under way
and gaining momentum are becoming
more apparent
Steel operations moved up to 2ss
per cent OF capacity from 29.S the
previous week. the American Iron e.
Steel Institute reported. A month
ago the rate was 3o.7, year ago S73.
From leading steel centers came
reports of gradual broadening OF de-
mand for steel which, some said.
might prove harbinger of increased
operations. For some companies 1t
was the first week since last June that
business gained.
| Change Is Moderate.
Iron Age said: The change is not
substantial enough to be convinc-
| ing of a sustained seasonal ex-
panson in buying, but it is a slight
departure from the sidewise move
ment of the past two months"
Some observers said the 10 per cent
| increase granted railroads on the
freight rate for steel might stimulate
some quick ordering of steel for de-
livery before the increase becomes op-
| erative.
Steel observers scanned the auto
mobile industry's horizon for a hint
Of business to be expected from this
important source. And once more it
was stressed this depends in part on
the success of motor dealers in SELL
ing used cars.
Automobile makers turned out ST.
428 units, compared with 54445 the
week before and 103,649 in the like
1887 week, Wards Automotive Report
said. The survey added it believed
the present recession had reached its
lowest point. Impetus for the up
swing will come from the farm
areas" it said.
Freight Loadings Rise.
Freight carloadings in the week
ended March rose per cent to
$50, ,916, but were 24.3 per cent under
the like 1887 week, the Association of
American Railroads reported. Traf-
fic experts said the gain was better
than seasonal.
| The upswing did not deter the as
sociation from taking step Of pos
sibly far-reaching implications. The
associations board called a meeting
Of its member railroad executives in
Chicago on March 18 Ito consider de-
creases in wage rates and such other
action as may be required" Wage
cuts, if put through. would affect
about 100000 railroad workers, it
was said
The board, composed Of the Ma
tion's leading rail executives. said the
freight rate increases granted by the
I. c. c. early in the week are EN-
tirely inadequate to NEE the critical
situation which faces the railroads"
Production Of electric power in the
week ended March totaled 2.035,-
$4,000 kilowatt hours. the Edison
Electric Institute reported. This was
a gain of 0.2 of per cent over the
preceding week, but loss of rs per
cent from the corresponding week
last year.
Securities Drift Down.
On the New York Stock Exchange.
shares and bonds drifted lower. Wall
Street experts said, nevertheless. the
markets behaved with comparative
calmness in view of unfavorable news.
Topping the list of "bearish" factors,
they said, were the failure of the firm
Of Richard Whitney, former exchange
president: German invasion of
Austria and what brokers termed the
disappointing" I. c. C. freight rate
increase.
Prices of raw materials slumped.
The Associated Press index of COM
modify prices fell to the lowest point
since 1884. In the speculative futures
markets, wheat, cotton, rubber and
hides declined. There was a sus-
tanned demand for copper abroad, par
ticularly from Russia and Japan.
Reports on business by the Com
merce Department showed the uneven
tone of business in various regions.
New York retail trade was mot good"
Philadelphia results were favorable.
Minneapolis reported hardware lines
active. Kansas City retail trade i'm