Evening star., 1939-05-07
War Fears and Coal
Shutdown Hamper
Business in Week
Steel, Power and Auto
Industries Report
SIockened Pace
BY THOMAS e. FLANAGAN,
Associated Press Financial Writer.

BY THOMAS e. FLANAGAN,
Associated Press Financial Writer.
Persistent war threats and the
soft-coal shutdown left their mark
on business again this week.
The steel, electric power and auto
mobile industries turned In q draggy
performance, carloadinks rose, retail
trade, although generally higher
than a year ago, was colorless. In
Wall Street traders sat on the stock
market sidelines.
From London came word negotia-
tions had started between Great
Britain and the United States "for
exchange of certain raw materials
required as strategic reserves in both
countries" y
Word from domestic steel centers
had foreign accent. Iron Age"
cited a tighter steel situation in
Europe, where precedence is being
given to armament programs" This
condition, it said, "has brought addi- 7
tional steel business to the United I
States from South America and
elsewhere"
Gold Flow Continues.
The Commerce Department re-
port that S224,0O0,0O of gold had
flowed to these shores in the week
ended April % left no doubt that !;
foreign capital, still nervous as the
result of European tension, was
seeking haven. In the first four
months of 1889 the Nations gold
stock has swelled about 81 zoe, 900 900,
q total equal approximately to the
worlds annual production.
Analysts said one aspect Of Eu-
ropes frantic armament scramble
has been quickening demand for
finished goods made in this country.
Traditionally. buyer of American
raw materials such as cotton, Eu-
rope has been stepping up 1t pur-
chases of manufactured goods.
Some experts said heavier foreign
demand for machinery, especially
types allied with armament products,
showed how Europe is retooling and
enlarging its war machine. Buying
of aircraft and parts is expected to
continue to gain, experts said. n
On the domestic scene, consider
able attention was given the weeks
reports from the motor industry. AL
though production slumped-indi-
eating that the spring output peak
has been probably passed-retail
sales were robust. Sales of new cars
in Wayne County, Mich, jumped to
2053 during the week from / ,495 the
week before and 877 In the like week
year ago.
Rail Purchases Lag.
An order for locomotive equip
ment from the Santa Fe Railway
only served to remind the business
community that the railroad indus
try has been contributing compare
lively little to industrial progress.
The Commerce Department sin
gled out the building industry as
one of the bright spots" in the busi-
ness picture. Construction contracts
for the first three weeks of April
increased sharply over the CORE
oHSAiNA4t6 PSAASA q yCd4 dSO. AWFUL IL
ing to report by F. w. Dodge Corp. :
Significant items recorded on the
business calendar during the week
included: The national debt climbed
to new high record Of about $40,-
100 900 900, or approximately $2,700,-
900 900 more than last year. New
financing remained sluggish. Bank
olearings increased greatly. A lead
ing motor car company reduced its
prices. The Federal Reserve Board
reported commercial, industrial and
agricultural bank loans declined
slightly after gaining for six con-
secutive weeks. Wholesale commod-
ity prices perked up little on the
average.
Practically all reporting cities
showed retail trade above the same
period last year, with an average in,
crease Of approximately per cent"
the Commerce Department said in
its report on business conditions in
So cities. Portland, Oreg., and
Omaha were notable exceptions,
with declines of II and Is per cent,
respectively. -" General wholesale
trade was rather quiet. with the
volume of buying on hand-to-
mouth basis"
Associated Press Index on.
In the week just closed the Asso-
ciated Press index Of industrial &C
tivity dropped to 80 from "a the
week before and compared with 66.8
in the like week last year.
The American Iron and Steel In.
stitute reported production at 47.8.
compared with 1876 the preceding
week, SAT- month ago and 30.7 in
the corresponding week year ago.
Production of electricity was g.
182. .727 900 kilowatt hours for the
week ended April 20. The Edison
Electric Institute said the total was
a slight loss from the preceding
week, but 1875 per cent ahead Of the
like week in 1898. s.,
Wards automotive reports said
production this week totaled 1920.
units, compared with &c, $40 the pre-
vious week and $685. in the like
week a year ago.
The Association Of American Rail-
roads reported that in the week end
ed April 20 car loadings totaled
586,0l5, a moderate rise over the
week before and 10 per cent higher
than a year ago.
ell p.