Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-12-11
Business Halls
Sharp Gain in
Auto Demand
Brisk Buying Reported
From Various Points
Throughout Nation
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

The motor industry cast glow OF
pre-holiday cheer across the busi-
ness horizon this week
For the first time in 16 weeks, pro-
duction of automobiles passed the
100000 mark. Reports from various
points throughout the Nation showed
vigorous buying
The traditional straW-i int e-wind
for the motor trade has long been
the rate of sales of new passenger
cars in Wayne County, Michigan.
This week. ! ,493 units were sold, COM
pared with 1,172 the preceding week
and 1,026 in the like 1897 period.
Nor was this an isolated trend.
In Dallas County, Tex, new car sales
increased Al per cent over a year ago.
1t was the fourth consecutive week
in which the new sales total had ex-
ceeded corresponding weeks of last
year. From Cleveland came word
new car sales had gone to new high
for 1888.
Power Output Climbs.
The motor industry was not the
only industrial division to show ex-
banding vitality. Production of cleo
trio power rose to new 1888 high
and railroad freight carloadings ran
ahead OF both the preceding week
and the like week a year ago.
The steel industry, which usually
slackens its pace at the year end,
receded for the third consecutive
week. The decline was slight, how
ever.
In most of the Nations leading
cities Christmas shoppers swarmed
through the stores.
The Commerce Department. in its
weekly business survey, said Christ
mas buying lifted retail trade.for the
week above the level of last year in
IA out of 81 key cities.
Although New York, Chicago and
some other large centers had not vet
equaled last years volume in retail
or wholesale lines, satisfactory sea-
sonal gains over the previous week
were reported from almost every
city, the department said.
Climbs Above Year Ago,
Retail trade surpassed last years
volume IN Boston, Memphis, Kansas
Guy, Milwaukee and Cincinnati.
while IN San Francisco, Los Angeles.
Minneapolis and Detroit dollar VOL
ume was about even with a year
ago."
Analysts who surveyed sales re-
cords noted two factors: First, re-
talers reported that demand was
most vital for middle and lower
priced goods. Second, dollar volume
OF sales did not make particularly
impressive score owing to the fact
that prices of many finished goods
were, on the average. somewhat
under those of year ago.
Although the heavy industries
continued to idle along, building
construction statistics indicated that
much energy was flowing into re-
lated lines of business. Not only
Ndid building permits in many centers
show good increases; business men
| took some cheer also from improve
ment in industrial and plant ex-
pansion.
Lowell J. Chawner, building ex-
pert for the Commerce Department,
said total construction activity for
the year would reach the highest
point since 1880. Although he noted
that the industry still was depressed
he said prospects pointed to further
| increases next year.
Steel Reports Hopeful.
Reports from leading steel centers
had a hopeful ring. Iron Age
said heavier buying of railroad
equipment, construction steel. auto
motive requirements and miscel-
laneous business was in sight.
Railroad demand for steel long
has been subnormal and this has
deprived the steel industry of sorely
needed nutriment Although some
systems have been coming into the
market, continued financial en-
barrassment for the railroad indus
try as whole may block the track
to generous buying. A footnote on
the situation was provided by R.
v. Fletcher, general counsel for the
Association of American Railroads.
He said 1898 had been lone of the
gloomiest years in the carriers
history.
During the week these miscellane-
Gus reports were closely studied IN
business circles: Cotton manufac-
turing showed a strong trend. Wool
en- output increased. Telephone in
stallations increased in some CEN
tiers. Circulation of money rose to
five-year top, due partly to the
flow of relief funds and Govern
ment spending. Many manufac-
turing and wholesale divisions adj
vanced seasonally. Some whole
salers pressed for spring merchan-
disc.
Staple Prices Down.
Price declines in various indus
trial raw materials suggested manu-
facturers were indifferent about
building up inventories.
| The American Iron and Steel In
stitute reported production at 500
per cent of capacity, compared with
GOT the previous week, 81 month
ago and 275 year ago.
Electric power production, report
ed by the Edison Electric Institute
at 2285 ,523 600 k1lOWatt hours 1Or
the week ended December 3, was
moderately ahead of the preceding
week and up 62 per cent over the
like 1887 week.
The Association of American
Railroads reported carloadings at
&c. 83 in the week ended Deem
Der 3. This was an increase Of
155 per cent over the preceding
week (Which included Thanksgiv-
ing Day. and as per cent ahead
of last year.
Motor output, reported at 1OO,705
units by Wards automotive re-
ports. compared with 97,795 the pre-
vious week and 85,763 in the like
week last year.
Chewing Gum Popular