Evening star., 1939-06-25
Roosevelt Loan Plan i
0vershadows News Of
Improving Trade |
Observers Expect Slow
Business Stimulation
II Congress Approves
BY THOMAS E. FLANAGAN,

Associated Press Financial Writer.
President Roosevelt's proposal fof
q $3.50 900 900 lending program
topped news Of rising trade and in
dustry this week.
Although analysts studied closely
reports Of gains in steel, power and
carloadings, they focused mainly on
the Chief Executives program for
injecting new vitality into busi-
ness through projects designated as
self-liquidating and low-cost hous-
ing developments.
The President said the program
would involve total maximum outlay
at any one time within seven years
Of 5000, 900 900; a maximum outlay
Of $870, 900 900 by June /, 1910.
The stock market which usually
provides hair-trigger reactions to
Washington news affecting business,
seemed to be looking the other way.
Trading remained anemic and price
swings were listless. OF the IS most
active stockss were unchanged at
the close, 7 recorded slight losses
and crept forward little.
Slower Action Likely.
Financial circles expressed the
opinion that the loans, If approved
by Congress, would provide only
gentle stimulation to general busi-
ness.
They said that compared with past
pump priming" and the swift flow
OF Federal bonus dollars in 1895,
the proposed drive would result in :.
slow movement of money into the
channels Of trade and industry.
For many months the administra-
ton has tussled with the problem
OF how to get capital into the hands
OF men operating small business.
Secretary of Commerce Hopkins
said he expected to offer a plan to
this end "in the very near future"
He did not give details. It was
noted, meanwhile, that the Federal
Reserve Board reported the demand
OF businessmen for bank loans had
declined in the latest week.
Steel Buyers Cautious.
One Of the best cross-section views
Of industry is the steel trade. This
week Iron Age reported that the
recent advance of scrap steel prices
has halted. Observers took this as
a sign that buyers are proceeding
cautiously. Railroad buying is
showing no signs Of important pick
up" the survey said Statistics COM
piled by Engineering News-Record
indicated that the building industry
"a major steel consumer-suffered
a slump Of q per cent in new con-
tracts, but held 81 per cent ahead of
the like week last year.
There were other reports which
held the business spotlight. The As
sociation of American Railroads re-
ported that class / systems reduced
their loss for the first four months
under the like 1888 period. Sears.
Roebuck & Co. reported the highest
gross sales for any four weeks in its
history. The United States and
Great Britain agreed to swap Ameri-
can cotton for British rubber. Public
offerings Of new securities gained
sharply.
The Commerce Department said
in its review of business in 36 cities:
Activity has continued to improve.
although the aggregate gains have
not been large = = Wholesale trade
was characterized by replacement
orders for summer items and q linn
tied volume of advance purchases
for fall requirements was in evi-
dence. Price in the primary mar
kets displayed stronger tendency,
though price changes. were not
large"
A. p. Index Advances.
Industrial statistics included:
The Associated Press index of
industrial activity rose to 88.6 from
87.l the previous week and compared
with 67.9 in the like week last year.
The American Iron and Steel In
stitute estimated production up to
IS per cent of capacity from 53.1 the
preceding week. A month ago it
stood at 48.5, a year ago %.
In the week ended June IT, pro-
duction OF electricity rose slightly to
2264, ,719 600 kilowatt hours, the Edi-
son Electric Institute reported. The
total was 1877 per cent ahead of the
corresponding period of 1898.
The Association of American Rail-
roads reported car loadings at 637.-
873 in the week ended June II. This
was moderate gain over the pre-
vious week and 14.8 per cent over a
year ago.
Wards automotive reports put
production at II ,370 units, compared
with "a. .305 the rrevioa,s week and