Evening star., 1939-03-05
Trade Sentiment
Better Despite
Mixed Trends
Slight Softening Seen
In Retail Activity
During Week
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer.

AocoSidL LCu 1000 "AibCAs
Conflicting statistics obscured the
business outlook this week.
Gains in steel and motor produc.
ton contrasted with declines in
carloadings and electric power pro-
duction. Analysts said steel output
and carloadings scored better than
had been expected. On the other
hand production of motors and
electricity lacked the vigor usually
noted at this season.
Experts said that, all things con.
sidered, business sentiment had a
brighter appearance than some of
the reports would indicate.
In support of this view they
pointed to monthly installations by
the American Telephone g. Tele-
graph Co. The approximations
barometer-shoWed a speeding up
in the rate Of gains in telephone in
Stallments in February. Last month,
the system added $500 stations,
compared with $500 in January
and $4,000 in February, 1888.
Retail Trade Uneven.
Cross-currentS muddied the wa
ters of retail trade channels. The
Commerce Department, in its
weekly survey of business in SO kew
cities. said. further evidences we're
noted of the pause in the forward
movement of business activity -"
the belief was expressed. however,
that such pause was due to tempo
rary causes, since business gen.
orally is in much better shape for
expansion than at this time a year
ago.
There was slight softening in
| retail trade for the week. with the
number of cities about evenly
divided between those showing in
creases and decreases compared
with a year ago. The spread in
either case, was not large"
Analysts said that expansion in
new steel business was far short of
spectacular. Iron Age reported fresh
orders have come mainly from the
construction industry, shipbuilders
and-to a lesser extent-railroads
Motor Industry Cautious.
Motor makers stuck to a hand
/ to-mouth buying policy in their steel
purchases. 1t was indicated. more
over, that this policy would likely
be followed until stable dent
shall have been made in steel in
ventoriec.
The rise in motor assemblies dur
ing the week was studied in the
light of figures on sales of new
cars. New passenger car sales in
Wayne County, Mich, dipped to
1850 from 1000 the week before.
They totaled $50 in the like week
a year ago.
Business men scrutinized efforts
in the Nations Capital to foster i'm
proved relations between govern
ment and business, particularly the
efforts of the economy bloc in Con-
gress. They agreed. however. it was
too early to tell whether efforts at
rapprochement would help stimu-
late the new capital market.
/ 1t was noted that private enter
prise has been lining up plans for
new financing. Reports from Wall
Street indicated that plans for more
than S200,00O,000 in corporation
bond issues have been placed in the
hoppers of investment banking
/ firms.
New Capital Needed.
1t was reported that refunding of
old bonds to take advantage of the
downswing in interest rates con-
tinued to dominate plans. On the
other hand, aviation, oil and other
industries we're said to be interested
in raising new capital for plant and
expansion purposes.
Analysts said the burst Of de-
mand for textiles in the New York
market may prove. to be an indi-
cation of better general business.
General improvement in the past,
they pointed out. often has been
preceded by demand for textiles.