Evening star., 1939-04-09
Easter Buying Spurs
Retail Trade Pace:
Industry Lags
Steel Operations Curbed
And Freight Loodines
Move Lower

WIN .SS~s"SS
Move Lower
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.
Although industry slipped cog
this week retail trade speeded up
with the approach of Easter
Analysts who had looked for the
steel industry to provide stout prop
for spring business noted production
had been throttled down a little.
Railway freight shipments were
lower.
Motor output accelerated some
what and electric power production
broke a three-week decline and
nudged its way slightly above the
previous weeks total.
AS business pushed further into
the spring season, consensus among
business experts was that the pace
of automobile sales would provide
an index to the outlook On this
score it was noted that new passen-
ger car sales in Wayne County,
Mich, in the latest week jumped to
2,248, from 1899 the week before
and compared with 733 in the like
week of 1898.
Ford Is Cheerful.
Henry Ford. motor maker, said
that business is coming along all
right" U. S. Steels chairman Ed
ward R. Stettinius/ jr., told the cor
porations annual meeting:
1T is venturesome, to say the
least, to attempt to forecast the fu-
ture course of business. However,
we are reasonably hopeful concern
ing the immediate outlook for the
steel industry. = At the moment
there is some evidence of a revival
Of demand for steel products in the
heavier classes"
Reports from steel centers indi-
Gated that after the recent lull the
railroads were beginning to buy a
little more freely. Iron Age reported
that the Santa Fe Railroad had or
dered $1,000 tons of rail; the Chi
cago e. Northwestern $500 tons and
the Chicago, St. Paul, Minneapolis
g. Omaha, 5000 tons.
Construction Hailed.
| Meanwhile, the construction in
| dustry bolstered steel mems hopes
somewhat Engineering construc-
ton awards this week were reported
by Engineering News Record at S57,-
600, ,OOO-46 per cent higher than the
like week year ago. At the same.
time the Commerce Department said
that incomplete reports of building
permits issued in March indicated
continued activity well above last
years levels"
Retail sales, the department re-
ported. were much larger during the
past week than in the corresponding
week of 1888" However, the edge
was taken of the comparison some
what by the fact that Easter this
year came a week earlier than in
1898. One indication of the temper
Of merchants was the report that
wholesale markets were inclined to
quiet down a bit"
Telephone installations normally
provide a business barometer. In
view of the fact that business trends
have been conflicting in recent weeks,
the report of the American Tele-
phone & Telegraph Co. came in for
closer study than usual. The COM
pany said that in March there was
gain of 81 $50 telephones in service.
compared with gain of only 36700
in the like month last year.
Stock Market Down.
Another Weather-vane of senti-
ment-the stock market-behaved
less cheerfully. Shares slumped as
/ traders took fright at reports of
another case of war nerves abroad.
Another footnote to the troubled
European situation was the sharp
drop in sales of United States
merchandise to Germany during
February. reported by the Commerce
Department. 1t was recalled that
DR.. Walter Funk, German economic
minister and president Of the Reichs-
bank, recently attacked the United
States trade policies and threatened
to divert purchases from this country
to the Balkans and elsewhere
The registration with the Securi-
ties Commission of two large bond
issues served mainly to emphasize
once more the fact that major cor
porations are still fighting shy of
the new money market and are
conflning their activities to refin-
ancing. The S. E. C.'s plan to study
the credit needs of small business"
also accentuated the sluggishness of
the flow of new capital into buSi-
ness channels.
Statistics Outlined.
Industrial statistics issued during
the week included
The American Iron and Steel In
stitute reported production of steel
at SAT per cent of capacity, COM
pared with SCI the week before, 551
a month ago and 1875 in the like
1898 week.
The Edison Electric Institute re-
ported electricity output in tine
week ended April l at 2,209, ,971 900
kIowatt hours, slight gain over
the previous week and 1T per cent
ahead of the like week a year ago.
The Association of American
Railroads reported carloadings in
the week ended April l totaled 604.-
241, small drop from the preceding
week but 154 per cent ahead of the
like 1888 week.
Wards automotive reports esti-
mated production at 87,0l9 units
compared with $500 the previous
week and 1924 in the like week
last year.
The Associated Press index Of
industrial activity receded to 876
from SO a week ago and compared
with 69.3 in the like 1888 week.