Evening star., 1938-07-03
TRADE DEVELOPS
FURTHER DRIVING
POWER IN WEEK
Steel, Motor and Power
Outputs Rise-Store
Sales Expand.
STOCK PRICES REFLECT
INCREASING OPTIMISM
Strong Demand for Commodities
to Replenish inventories Also
Regarded as Good Sign.
BY THOMAS Z. FLANAGAN,
Associated Press Financial Writer.

BY THOMAS Z. FLANAGAN,
Associated Press Financial Writer.
Business developed additional driv-
ing power this week-both actual and
potential.
Tangible assets added to the i'm
provement side Of the industrial ledger
included increases in steel, motor and
power production and q more seasonal
rise In carloadings. Retail and whole
sale trade figures left no doubt that
there had been q gradual expansion
Of activity.
No less important than figures show
ing definite betterment in trade and
Industry were symptoms Of developing
optimism.
The major sign was the continued
rise in the stock market.
Stocks have been a traditional
barometer Of business. Mindful of
past occasions when the market had
made false starts, business men stud
led the current rise intently. Some
experts confessed they were puzzled
at the force and speed Of the climb.
On the other hand, they were ir,-
pressed by one undoubted fact-an
increasing number Of people appar-
emily had been willing to back an ex-
pectation OF better business with
cash.
Commodities Advance.
To support this view they stressed
several events Of the wees Sensitive
international commodities rose briskly
when consumers went into various
markets to replenish depleted inven-
tories. Out in front we're copper, zinc,
rubber, cotton and silk.
When steel makers prepare TO step
up operations they usually buy scrap
steel. This week scrap steel prices
again rose. With this as q starting
point, steel trade observers ventured
to predict that coming weeks would
bring an acceleration in the industry.
One motor producer stepped up 20
the counter for steel to be used in 1899
cars. Prom others came indications
that sizable orders might be made
within the next 60 days Meanwhile,
steel orders are expected to result
from Government lending and spend
ing. Experts insist, however, that
railroads will remain cautious buyers.
Price reductions on finished steel
left the general situation somewhat at
skies and sevens. Abandonment OF
the traditional method Of pricing steel
left veteran trade experts uncertain
on two points: The effect on compe-
tition for orders within the industry,
and the possibility that new price
schedules might tap new layers Of de-
mands as yet untouched The answer
hes somewhere on the stretch ahead.
Wholesalers Buster.
Several weeks ago leading Wholesale
eenters had . dreary look. Those who
went to buy often returned home emp
ty-handed. Recent weeks have brought
signs Of more confidence, and the
last week was no exception Prom New
York-the Nations wholesale capital
came word Of q steady influx of
buyers. Merchants preparing for trade
shows and conventions said this was
but one hint that retailers were de-
veloping . more aggressive buying
mood.
The American Iron IL Steel hsti-
tute reported production rose to 2s7
per cent Of capacity, from 28 per cent
the previous week. A month ago
the rate was 26.1, year ago IS.
Electric power output In the week
ended June IS was up IL per cent
to 2,019,036 900 kilowatt hours. The
Edison Electric Institute said the
total was 98 per cent below that
for the same week last year.
Wards reported 40,94s units were
produced in the motor industry. This
compared with 4o,918 ths previous
week and 122,8o0 in the like 1887
week.
The Association of American Rail-
roads estimated car loadings at S5s.-
937, an increase Of 0.6 per cent from
the preceding week, but 27.4 per cent
below the figure for q year ago.
Trend Is Favorable.
Reports to the Department Of Coss
merce from 36 key cities for the finC
week Of June made fairly bright read
ing.
They indicated that, although retail
turnover was again less than In the
like week year ago. - decided spirit
Of optimism" was abroad in nearly
all important centers. The depart
ment observed:
Omaha and San Francisco re-
ported their retail transactions ap-
proximately on q par with last year.
while the following cities registered
increases: Boston, Washington. Mn
neapolis, Wilmington and Milwaukee.
New York department stores had the
best comparative week since Easter.
with the decrease from 1897 narrowed
to As per cent.
wholesale trade generally showed
. slight expansion over the previous
week, with more encouraging prospects
for fall business"