Evening star., 1938-07-10
RETAIL ACTIVITY
CLIMBS FURTHER,
OPTIMISM GAINS
Factory Picture Blurred
by Holiday Shutdowns.
Loadings Jump.
BUILDING DRIVE FELT
BY LUMBER INDUSTRY
Commerce Department Finds Jobs
Outlook Distinctly Brighter
Rural Merchants Cheered.
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.
Retail trade reports showed that
the consumers goods sector Of busi-
ness developed further strength this
week.
Consumers goods include such ar
ticles as food and clothing.
In the industrial field statistical
comparisons were blurred by the in
terruption of the Independence Day
holiday. Key industries like steel,
motors and electric power throttled
down operations. Miscellaneous freight
carloadings increased substantially.
There was an undercurrent of op-
timism in various important areas.
Gathering momentum of the national
home building drive vitalized the lum-
Der industry. The Commerce Depart
ment reported the employment out
look distinctly brighter" The effects
of bumper crops lifted spirits of coun-
try merchants. Reductions of dealer
stocks put motor dealers in a better
mood. Firmness OF commodities limited
that professors Of some products were
planning more aggressively for the fall
season.
Caution Remains.
There were indications, however,
that businessmen were not casting
caution aside. 1t was noted that in
New York, the Nations wholesale
trade capital, warnings were put out
by experts against excessive specu-
lative purchasing for future needs.
The stock market continued to rise,
but selling late In the week suggested
to the experts that the Nations
traders were in no mood to whip up a
runaway market
The steel industry. barometer for
the heavy goods industries, provided
some encouragement. Steel men were
reported confused over the intricacies
OF the newly adopted pricing system.
1ney said that not until some of these
dimculties were cleared up would con-
sumers push ahead with buying pro-
grams. Some stressed that the let
down would be only temporary, how
ever.
The railroad industry produced some
top business news. the Interstate Com
merce Commission granting permission
70 Eastern systems to raise passenger
fares q cent mile for an "experi-
mental period of 18 months. The
increase. which puts passenger coach
fares In the East up to 2.5 cents a
mile. once more threw into sharp
relief the never-ending business con-
troversy over the role played by prices
IN stimulating or depressing sales.
Rail Purchases Low.
The I. c. c. reported that 14l class
railroad systems had a substantial
net loss in April compared with a
profit in the like 1887 month. Whether
higher passenger rates will put more
cash into the Golfers OF the Eastern
systems in the next few months re-
mains to be seen. Meanwhile, mate
rial purchases OF both Eastern and
other roads remain at low ebb.
II the capital market continues to
thaw out, private industry will b.
putting more men, money and dollars
to productive work. From Wall Street
came word that banking houses were
Strengthening kinks in new financing
plans OF various companies. The good
investment demand which met this
weeks offering Of $50. 100000 securities
Of the Standard Oil Co. of New Jersey
suggested that the outlook was good
for new financing.
Another bright spot on the financial
horizon was the report OF the member
banks Of the Federal Reserve System.
which showed the first advance in
commercial, industrial and agricul-
tural loans in 81 weeks.
Steel Operations Down.
The American Iron and Steel Insti-
tute reported operations down to 22.4
per cent of capacity from 287 the
previous week and IS per cent in the
like week last year.
Wards Automotive Reports, Inc,
said output of motors decreased to
25,375 units from 40,945 the previous
week and 100,03l in the like week a
year ago.
The Edison Electric Institute re-
ported electricity production totaled
2,014, 100000 kilowatt hours in the
week ended July 2. This was slightly
below the figure for the previous year
and 10 per cent below that for the
corresponding period of last year.
The Association Of American Rail-
roads reported 588,s64 freight cars
loaded in the week ended July Q. a
rise Of 5.4 per cent over the preceding
week, but 26.6 per cent less than a
year ago.
The Commerce Department said:
Business generally throughout the
country celebrated the early days of
July with broad forward movement.
Retail trade showed definite improve
ment everywhere. with the current
volume Of trade either overtaking or
closely approaching last years levels.
Wholesale lines still reflected a eau
tious attitude on the part Of buyers,
but the volume OF business repre-
sented an improvement over expecta.
tions Of a month ago.
Crop reports were exceedingly
cheering, with indications that the
products Of the fields are adding sub
stantially to the purchasing power Of
the millions in rural areas. In the
automobile industry an obvious under.
current OF optimism was apparent"
5000 600 600 LOSS SEEN