Evening star., 1938-09-11
UPTURN IN TRADE
.L|GHTENSP|CTURE
OF u. S. BUSINESS
So Cities Report Better
Sales Than Same Week
of Last Year.
WHOLESALE CENTERS
ALSO SHOW ACTIVITY
Most Retailers Appear to Have
Started Stocking Up More
Heartily.
BY THOMAS E. FLANAGAN
Associated Press Financial Writer,

see~S~sss~A
A squirt in retail trade this week
frightened the nations trade and
industrial news, which otherwise was
clouded to some extent by European
uncertainties.
For the first time in many months
the majority Of important trade areas
had sales greater than in the like
week last year.
In its weekly survey Of business in
36 cities, the Commerce Department
cited the following cities in which re-
tall activity had jumped above last
years comparative totals: Minnea-
polls, Philadelphia, Cincinnati, Balti-
more, Milwaukee, Norfolk, Chicago,
New Orleans, Omaha. Boston, Kan
sas City, Charleston, Providence and
Washington, d. c.
Reports from wholesale centers
also indicated that the pulse of con-
fidence had quickened somewhat.
For instance, in New York there
was sharper demand for most
products in wholesale markets. Re-
orders increased both in number and
dollar volume, according to the Com
merce Department.
Retailers Stock Up.
Two phases of wholesale activity
in that city interested analysts. First,
1t was reported that although the
pace Of buying was faster. it stayed
within the bounds OF caution. Sec
ond, evidence was at hand that most
retailers were stocking up shelves
more heartily. whereas last year the
accent fell entirely on working off
inventories.
Among the experts there was 4
general tendency to attempt inter-
probation Of war threats abroad.
Financial markets - stocks, bonds,
foreign currencies, and commodities
usually react sensitively to incom-
ing cable news. This week was no
exception. The principal barometer
Of sentiment-the stock market
worked irregularly lower.
There was nothing panicky about
the downturn Of shares. Neverthe-
less, many felt It reflected = grow
ting dispositaon on the part Of busi.
ness and financial men generally to
emphasize the Importance Of eau
tion.
Uneven Recaasion ef Leans.
One index which tended to con-
firm this impression Wa the un-
even recession Of loans to business
concerns, which appeared in numer-
Gus cities. At this time Of year loans
Of this sort normally are inclined to
expand all along the line.
Secretary Of Commerce Roper
summed up an opinion held by many
in stressing that business was 1t an
in-betveen phase Of development In
other words, trade and industry have
not yet shaken OF the lassitude Of
late summer; nor have they had .
chance to work up fully impetus for
the advance which the fall season
often brings.
Inasmuch as leading industrial
statistics we're thrown out OF Joint
by the holiday, for purposes Of COM
parison with last year, some miscel-
laneous developments appeared par
ticularly meaningful.
Here are some Of the factors which
received close scrutiny at the week
end: The steel and motor industries
called men back to work. Building
operations were well sustained. New
financing continued to show quiet
vitality. Wholesale prices, Is report
ed by the Labor Department, held
steady in the latest week. High
lighting improved purchasing energy,
particularly in farm regions, Mont.
gomery Ward and Company reported
an upswing in sales during August
to level 10.6 per cent above the
like month last year.
Blame Holiday Let.Down.
Trade authorities in the steel in
dustry explained the slower produce
ton by the holiday let-down. They
noted that buying was mostly on 1
hand 70 mouth basis. Prevailing
opinion was that the low level Of
inventories on consumers shelves
probably would be 4 helpful factor in
stimulating demand in the next sev-
eral weeks.
The output rate, reported by the
American pon and Steel Institute,
was down to 39.e per cent from ~
the preceding week, and compared
with TIC in the like 1887 week.
The Association Of American Rail-
roads reported carloadings in the
week ended September ) at S,03s,
new high for the year and 4 mod
crate increase over the previous
week. The total, however, was 153,-
500 under the like week last year,
and was only 500 per cent Of aver
age shipments for the corresponding
week Of the 10 preceding years.
Wards Automotive Reports, Inc,
estimated production 1t 17,4SS, COM
pared with 27,16S the previous week
and 59,017 in the like week year
ago. Two things explained the de-
crease-the Labor Day holiday and
the fact that one large concern I'm
ished production Of 1888 models.
Production Of electricity In the
week ended September 1 totaled T.
l48,o54,000 kilowatt hours, . new
hitch Gao kh> ,,>~v a~A Aha 1~>.k Al->A