Evening star., 1939-04-02
Caution Dominates
Business Scene
During Week
Retoil Coins Small
Considering Approach
Of Easter
BY THOMAS E. FLANAGAN.
Associated Press Financial Writer.

The Nations business josged along
at fairly even pace this week.
On the whole, there seemed to be
no signs that trade and industry
were trying to rush the spring sea-
son. Steel production and carload
ings picked up a little. Unseason-
able weather put small dent in
motor sales and output. Demand for
electricity was a little less spirited.
The Commerce Department re.
! ported that while store sales in near
ly all cities turned in gains over last
year, the upswings were not large.
considering the imminence OF Eas-
ter" Caution was the keynote in
wholesale centers.
Mounting European tension left
Wall Streets nerves badly frayed.
Share prices weakened, but ended
the week on a rising note.
Recovery Indicated.
Commenting on March gains in
industrial production, the United
States Chamber of Commerce said:
This recent movement may very
well prove to be resumption Of the
advance which began in the middle
of l938-provided new obstacles are
not placed in the way Of business
activities"
1t was observed that production Of
goods which the man in the street
buys has climbed to a level about IS
per cent above that Of the first three
months of 1888 Meanwhile, output
Of heavy industrial products is cur
Gently ahead OF the early months of
any year since 1880 except 1887.
There are thus evidences Of
strength in operation of industries
that will count most In adding to
employment and reflection of these
results in the demand for consumers
goods" the chamber said. An exam
pie cited was the fact that domestic
mills have been using about a third
more cotton than in the early months
of 1888
Business analysts again stressed
that the unemployment problem
still is standing athwart the path
to general prosperity. Figures re-
leased this week by the National
Industrial Conference Board indi-
Gated that there were about TO-
100000 unemployed in February.
The board is a research organiza-
ton supported mainly by corpora
tions.
Rail Incomes Jump.
The week produced reminder
that while the railroads we're still
long way from robust financial
health, some improvement has been
scored. The Association of Amer
ican Railroads reported that major
systems had net operating income
of more than $4,000, 900 in Febru-
ary, compared with a deficit of
nearly 100000 in the like month
a year ago.
A few weeks ago there we're symp-
toms that the railroads might take
on a bolder buying mood. Various
systems disclosed plans for purchase
of new rails and equipment which.
it was hoped. would provide needed
nourishment for the steel industry.
However, latest reports from steel
centers indicated that railroad de-
mand for steel and steel products
is currently skimpy.
A significant footnote on general
business conditions was the re-
newed plea of Jesse Jones. r. F. c.
chairman, for bankers to be more
liberal in lending to business and
industry. In this connection it was
noted that commercial, industrial
and agricultural bank loans in the
| latest week nudged ahead a little.
Meanwhile the Federal Reserve
Board announced that lendable ex-
cess reserves of banks jumped $780,
900 900 to $500, ,000, 900 in the week
ended March %.
Flow of Credit Lays.
These developments served once
more to focus attention on the fact
that with an enormous pool Of bank
credit available for .lending, the
flow OF credit into business channels
has remained comparatively slow.
The capital markets still await the
revival of new stock financing which
financial experts have said must get
fully under way If business is to
thrive.
During the week just closed the
following reports piled up on the
desks Of businessmen: Engineering
construction awards for the week
ended Tuesday gained little over
the previous week and stood So per
cent higher than year ago. March
income tax collections of more than
$500 ,0OO,00 exceeded by more than
S75,000,0O0 the estimate of President
Roosevelt's budget. Sears, Roebuck
& Co. reported gross sales from
February 81 to March 26 at the high
est point for any like period in the
company's history.
The weeks industrial statistics
included the following:
The American Iron and Steel In
stitute reported steel production up
to SCI per cent of capacity. the
highest for the year. The previous
week the rate was 554 a month ago
55.8 and year ago 35.7.
Electric power production, as re-
ported by the Edison Electric Insti-
tute. was 2,198,681 900 kilowatt hours
in the week ended March Is. This
was a modest decline from the pre-
vious week but g per cent ahead Of
the like week year ago.
The Association of American Rail-
roads reported carloadings totaled
605. 1862 in the week ended March as,
a slight increase over the preceding
week and ST. per cent higher than
the like 1888 week.
Wards automotive reports said
automobile production dropped to
$500 units from 80. 400 the previous
week and compared with $500 in
the like week last year.
The Associated Press index Of In
dustrial activity rose to SO from 87.9
the week before and compared with
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