Evening star., 1939-12-03
Factory Activity
Supported by
Big Back|ogs
RetuiI Trade Scores
Seasonal Advance:
WhoIesoIing Logs
By SMITH REAVIS,
ASSOciated Press Financial Writer

stretch OF it's 1899 race this week
with some Of its competitors push
ing little faster, few losing q bit
of ground and the general pace the
best in 10 years.
A small advance was registered for
industry, still working away at the
plethora of orders which tumbled in
during September and October. and
retail trade made the gain usual for
this time of the year. Wholesaling
lulled
On the whole. judged by the vari-
Gus indicators. there was a leveling
of in the wartime enthusiasm to buy
ahead, but enough work was in sight
to keep wheels rolling well into 1910,
with consequent fairly steady en-
ployment rate and ability to buy
finished goods.
Most important industrial event Of
the week was resumption of work
at the Chrysler Corp. plants. tied up
for nearly two months by the longest
labor dispute in the automotive in
dustry. 1t was believed this would
send nearly $50 900 men back to work
and sharply step up output of cars
and trucks.
Other items included an apparent
reopening of the capital market,
which has been timid since the war
outbreak in Europe, and the re-
aff1rmation of most steel prices for
the first three months of next year
by leading operators in desire to
cooperate in preventing inflationary
tendencies"
Financing Encouraged.
In the capital market a fotation
Of $50 500 900 in utility bonds and
debentures was publicly offered,
quickly distributed to dealers and
institutional investors and forced to
premium in r-the-counter sales.
That encouraged other companies
seeking funds, either for refunding
purposes or for plant restora ton or
expansion. and a number OF impor.
tant issues were placed in registra.
ton with the Securities and Ex.
change Commission.
In addition, an issue of $500, ,O0O, 900
in United States Treasury bonds was
oversubscribed. Secretary OF the
Treasury Morgenthau announced, to
the tune of 5000 900 900.
While some. like Chairman E. r.
Weir of National Steel Corp. held
the present upturn unsound because
the original stimulus came from
war. others adopted the theory that
while a boom was touched of by the
! corf7iot p,,hlic foaIipo ie a aooinet ~
unwise extension of it.
Said the National City Bank Of
New York in its monthly letter:
1T was easy to misjudge the business
prospect at the beginning of the war
and the markets pitched their ex-
pectations too high. Fortunately,
the SOLDERING up came quickly. The
beneficial effects of the chance in
psychology remain.
Start Accomplished.
Business has been given a start;
the upswing which began as a for
ward buying movement in materials
has broadened encouragingly into q
revival of capital expenditures; and
the problem now is to establish do
mestic policies that will encourage
domestic enterprise and carry the
recovery forward"
Again the goods which go into the
hands of consumers Wed with those
intended for the heavy industries
in attracting the attention of busi-
nessmen.
Retail trade was recorded at from
to II per cent better than last
year, with the variations In the
dates of what some in Wall Street
call the New Deal and horse-and-
buggy Thanksgiving Days joining
with agricultural conditions In In
duencing regional showings.
Best percentage gains were re-
corded in Eastern cities, the South
and Middle West.
Gift merchandise. much of 1t In
the luxury or higher-priced class,
| continued to lead and predictions
were again heard the holiday season
would be the best since 1929.
Hopkins Optimistic.
Secretary Of Commerce Hopkins
was one Of those who took this view.
He pointed to the substantially high
er pay rolls being disbursed and the
expanding profits of business, re-
nected higher dividends to be paid
before the year end. Secretary of
Labor Perkins reported factory en-
ployment gained $4,000 workers be-
tween mid-October and mid-No-
vember, although the normal decline
for the period Is about 10000.
Retail demand for gifts ran largely
to furs, jewelry, toys, small home
furnishings and appliances, such as
coasters. irons, percolators and grills.
In the wholesale markets new
orders were chiefly fill-ins for i'm.
mediate selling, "a spirit of cau-
ton continued to prevail in pur-
chasing policies" Dun IL Bradstreet
said In its weekly review.
As for heavy industry, the Asso-
ciated Press index of activity ad-
vanced to 1889 per cent Of the
1929-30 average, compared with
1888 the preceding week and s41
year ago.
Steel production once more headed
the procession. At an operating
rate Of o44 per cent Of theoretical
capacity. compared with 93e per
cent last week and 60.7 q year ago,
there were turned ont. It was esti-
mated a record total Of approxi-
mately l 200 900 tons Of ineots, which
compared with the pre-depression
weekly highest average In May,
1929, of 1.193,000 tons.
Steel Orders Taper OF.
New orders were tapering of. said
Iron Age, perhaps because the ship
ments of some products may bs
deferred to the end Of the wear
on account of the price reafiirma.
| ton
Nevertheless" said the periodi-
cal, there is still a substantial flow
of new business. mainly for the first
quarter. and while steel inventories
are being built up in many cases
to requirements for thrae months,
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