Evening star., 1939-07-09
Trade Pace Curtai|ed
By Warm Weather !
And Holiday
Auto Strike Threatens
To Delay Production
Of 1910 Models
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer,

ana tne July 4 holiday left their
mark on business this week.
Because of the holiday interrupt
ton, the Industrial statistical pic
ture was indistinct. Steel and mn-
tor producers throttled down opera
tions. The latest figures on electric
power and carloadings-which did
not include the holiday week
showed modest gains to new 1899
highs.
Warm weather in some sections
retarded the pulse of retail trade.
Movement of goods also was cut
down by the closing of stores for the
long week end.
In Detroit several thousand work.
ers walked out of General Motors
plants. Union sources said workers
employed on production of current
models would not be affected unless
the strike lasts more than a week
William S. Knudsen, president of
General Motors Corp, said the strike
"deflnltely" threatened to delay pro-
duction of 1910 models and to bring
idleness to thousands of production
workers.
War Dangers Abate.
Although the recent war threats
abroad abated somewhat traces of
war fears still were to be found on
the business record. Most of this
news related to Navy awards for
aircraft engines and explosives.
Meanwhile, the Navy's shipbuild-
Ing program slowly gathered mo-
mentum.
In New York the domestic copper
market stiffened its backbone as the
aftermath of the rush Of foreign
orders in the previous week for
armaments purposes.
The attention of business men
once more was focused on the Gov
ernments drive to cut building costs
and thus stimulate a fresh flow of
men and private money into the
construction field. Thurman Ar
mold, Assistant Attorney General in
charge OF the antitrust division of
the Justice Department, told the
Monopoly Committee it would be
necessary to take simultaneous ac-
ton on a Nationwide scale against
all restraints which affect the price
Of the final product"
Corn Gets Good Start.
News potentially of vast impor-
tance to business came from the
Nations corn fields this week. Pri-
vate crop experts noted that corn
had gotten off to one of the health
lest starts in years. Condition on
July l, they said, was about 10 per
cent better than normal. Although
they stressed the crop must vet prove
It's ability to stand up against the
soaring heat of the next two months.
they made it plain they were trying
to gauge how bumper crop would
affect the balance of supply and
demand.
Normally bumper crop tends to
bring lower prices to the farmer.
However, experts said. under the
present Government loan program
the larger the crop the more income
will go to the farmer.
Financial circles took little COM
fort in the way in which new bond
offerings dried up during the week.
Ihe total OF new issues placed on
the market fell to little more than
81 900, 900 from about s122 900 900 the
previous week and compared with
S95 100000 in the like week a year
ago. Wall Street reports indicate,
nevertheless. that within the next
few weeks corporate financing will
expand considerably.
Many Factors Weighed.
Business men who attempted to
weigh pros and cons at the week end
had the following factors to con-
slider: A small rise in bank loans,
climb in construction awards to
nine-year peak. efforts of steel pro-
ducers to steady prices, comparative
stability for raw material prices and
continued Government deficit spend
ing designed to aid trade and in
dustry.
In its review of conditions in So
cities, the Commerce Department
said, Aside from the automotive
industry, the latest data for general
business activity reveal that the
June gains have been retained : I"
retail trade last week was reduced by
the extended holiday and in some
cities was below the year ago VOL
umes, but significant changes in
consumer purchasing were not indi-
Gated in the New York wholesale
markets, optimism for a good late
summer and fall trade grew"
Trends Outlined.
Industrial statistics issued during
the week follow:
The American Iron and Steel
Institute estimated steel production
at 38.5 per cent of capacity, COM
pared with 54.3 the previous week,
542 month ago and 22.4 in the like
1888 week.
Production of electric power was
estimated at 1900, 0,268 900 kilowatt
hours by the Edison Electric Insti-
tute for the week ended July l. This
slight gain over the previous week
brought the total to level 142 per
cent ahead of the corresponding
week last year.
Wards automotive reports said
motor production fell to 42,784 units
from 70,663 the preceding week and
compared with 29,375 in the like
period a year ago.
The Association of American Rail-
roads reported that in the week
ended July l carloadings increased
35 per cent to 665,528. The total
was 13 per cent above the like 1888
week.
The Associated Press index of in
dustrial activity declined to 88.5
from 1876 the previous week and
compared with ST in the CORES
ponding week last year.