Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-08-06
Trade and Industry
Are Driving Ahead,
But at Uneven Gait
Congress Provided Nest
Important News Of Week
On Business Front
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

Associated Press Financial Writer,
News of major importance to the
Nations business came this week
from Congress when it killed the
lending and housing bills.
Reports on this action passed
across desks Of businessmen busy
studying an irregular rise in industry
and trade.
No less intently did they analyze
the comment of President Roosevelt
shortly after the House had spiked
his lending program. Mr.. Roose-
welt told his press conference that
the House action was going to cost
the taxpayers good many hundred
millions of dollars; that a large
number of industrial plants would
not have their production stepped
up, and that additional thousands
to whom the program would have
given employment would have to
remain on relief.
Two days after the Presidents re-
marks, businessmen had the word
of Acting Secretary of the Treasury
John w. Hanes that it looked as if
the Nations business might be on
the "eve of real forward move
ment."
Business Drives Ahead.
Entries on the statistical record
during the week showed industry and
retail and wholesale business driving
ahead, although at an uneven gait,
The Associated Press index of in
dustrial activity rose to a new 1899
high of 928. This compared with
926 the previous week and 1928 in
the corresponding week last year.
Other symptoms of vigor in indus
try We're: The rise of electric power
output to the second highest total
in the history of the industry, the
record July copper sales to domestic
users, spectacular SO per cent jump
in July shipments of iron ore on the
Great Lakes and wide gain in tele-
phone installations, contrasting with
a loss in the like month a year ago.
On the other hand, steel and mo-
tor production dipped during the
week. After the sharp gains of July,
which hoisted the operating rate
over the 60 per cent of capacity mark
for the first time this year. steel
mills throttled down opera lions a
little. Iron Age said the General
Motors tool and die strike-now over
had prevented higher operating
rate for steel"
Motor Slump Is Deeper.
The slump in motor production
was a little deeper than usual at
| this time Of year as measured
against the statistical yardstick.
wards automotive reports said Ford
MOTOR Co. was the only major pro-
/ queer running at normal speed. 1t
also asserted that other makers were
rushing to get into 1910 model out
put wherever possible to take ad-
vantage of what appears at this time
10 be an expanding car market"
This observation was borne out by
figures showing turnover of new
models running far above the cor
responding week of 1898.
! AS the week drew to a close busi-
ness experts had the following fac
tors with which to reckon: Steel
scrap prices strengthened a little.
leading producers boosted the price
OF lead, the National Industrial Con-
ference Board, private research
corporation, reported a gradual re-
turn 7-hour work movement In pri-
vate industry which cut unemploy-
ment in the Nation by about 1914
700 in June; Treasury statistics
! Sh0UaH tho EororoI
spent nearly 100000, 900 more than
1t took in during the first month
OF the fiscal year, which began July
l; building awards, as reported by
Engineering News Record, expanded
from the previous week but slumped
under a year ago.
Commerce Department Report.
The Department OF Commerce.
IN Its weekly report on business
IN 81 key cities said, business &C
tlVlty for the week ended Wednes-
day was we'll maintained in most
branches, and in some, further ex-
pansion was noted.
Retail trade showed the effects
OF the usual midsummer slump, but
/ cNo 40 AiSol SlllCS, stimulated DIV
strong promotional efforts and mid
summer clearances, continued to
exceed the volume reported for the
same period last year. Wholesale
orders have increased, as retailers
have displayed less hesitancy in
placing future commitments.
The following statistics were is
sued during the week:
The American Iron and Steel In
stltute estimated production of steel
at 1913 per cent of capacity, COM
pared with 606 the week before,
1876 a month ago and 1913 in the
corresponding week last year.
Electric Power Consumption.
Consumption of electric power IN
the week ended July %, according
to the Edison Electric Institute, to-
tailed 2,34l 1922 900 kilowatt hours, a
moderate gain over the preceding
week and 11.8 per cent higher than
year ago.
The Association of American Rail-
roads reported that in the week
ended July % loadings totaled $50
1854, slight gain over the pre-
viouS week and 12.1 per cent ahead
OF the like week of 1888.
Wards reported motor produc-
ton down to 28,25O units compared
with 40,595 in the previous week