Evening star., 1939-05-21
Unexpected Advance
In Auto Production
Cheers Observers
Steel Rate and Freight
Loudings Dip; Power
Trend Improves
BY THOMAS e. FLANAGAN,

With the aid of an unexpected
gain In motor output, business de-
veloped residence last week.
These factors stood out as the
week came to close:
Steel production slipped for the
seventh consecutive week. Car
loadings dipped. Electric power pro-
duction stiffened. Better than nor
NAL upturns were scored In residen-
tial building and cotton manufac-
turing. Retail and wholesale trade
recorded fair gains over the like
period last year.
In Wall Street brokers reported
that although the lifting Of pressure
from unsettling European news
brought welcome respite fear had
not vanished.
Leonard Ayres, Cleveland econo-
mist, said fear of war was the most
vital influence directing the course
OF business. He said bright spots
IN manufacturing included ship
building, aviation. machine tools,
chemicals and most divisions of the
automobile industry. Businessmen
who studied his report said these
industries derived some of their
brightness" from world wide efforts
to speed up armament.
April Sales Climb.
Commenting on the contra-sea-
sonal gain in motor production,
Wards automotive reports said the
rise would likely be adhered to next
week" and reported that April sales
now appear to have been higher
than originally anticipated.
AT the same time 1t was noted that
sales of passenger cars in May were
still driving ahead at a much faster
clip than at this time last year. The
Commerce Department reported
sales at Wayne County, Michigan,
had jumped to 2,288 in the latest
week from 2.198 the week before and
$50 in the like week of 1888.
Those who probed beneath the
surface of the encouraging sales and
production figures reported that
motor producers generally have been
bringing extra pressure on their sales
divisions to quicken the rate Of
turnover. This. they said, reflected
in part the fact that the used-car
market Is not clogged up with ex-
cessive inventories.
Buying Power Gains.
Two factors received close study
from analysts seeking to gauge the
outlook for continued vitality in the
motor industry. The first was that
the buying power of the dollar is
somewhat larger than at this time
year ago, as calculated by the Ma.
tional Industrial Conference Board,
research organization supported
by large industries and corporations.
The second was that farm income
was reported by the Commerce De-
partment at a slightly higher level
than last year.
The week brought the following
entries to the business ledger: Com
mercial, industrial and agricultural
loans gained a little. Engineering
contract awards expanded. Rising
prices for farm products, hides, raw
silk and crude rubber lifted the
wholesale commodity price index of
the Labor Department. Bank clear
ings increased.
Coal Peace Helps.
In Its review of business in 80
cities, the Commerce Department
said: With the settlement of the
bituminous coal dispute in the major
fields and less emphasis upon Euro
pean developments. business evi.
denced gradually strengthening con.
f1dence and increased activity dur
ing the last week. Reports from the
various cities were practically unani-
nous in registering substantial in
creases In retail trade for the last
calendar week over the comparative
1898 week"
The first time in six weeks. the
Associated Press index OF industrial
activity turned up. 1t rose to 82.9
from 81 the previous week and 668
in the like 1898 week. Except for a
small gain in March. the index
course has been down since last
November.
Other statistics on industry issued
during the week included:
The American Iron and Steel In
stitute reported production at asa
per cent of capacity. The rate, which
was little under the preceding
week, compared with 500 month
ago and 307 in the like week last
year.
For the week ended May 13, the
electric power production, as report
ed by the Edison Electric Institute,
totaled 2,170,750,000 kilowatt hours.
This was a slight gain over the pre-
vious week and 1913 per cent ahead
of the like week year ago.
Wards reported motor output up
to 80,145 units, compared with 1885
the week before and 49,310 in the
like week last year.
Carloadings in the week ended
May 13 totaled SIS 1896. the Associ-
alton of American Railroads report
ed. This was a slight drop from
the week before, but a little better
than the corresponding period Of