Evening star., 1939-12-24
Christmas Rush
Boosts Retail
Trade Sharply
Big Bock|ogs Keep
Industry Moving
In High Gear
BY SMITH REAVIS,
Associated Press Business Writer.

the top OF the business heap this
week while backed-up orders kept
industry whirring at near-record
levels for this time of year.
In most sections of the country
yuletide shoppers scurried to the
stores for gifts In throngs such al
haven't been seen for a long time,
Some executives reported "the best
Christmas volume we have ever
had others that it was the finest
season since 1929, and many that
1t equaled or surpassed 1887.
AS proof of the flow of gifts and
messages, the New York post office
said it handled on Wednesday the
largest array of letters and parcels
ever to pass through any post office
IN the world in single day.
Throughout the country record
postal business accumulated.
AS the Nation gave, it travelled.
Alrlines had unprecedented passen.
ger, express and mail business, run.
ming, for some of them, between so
and IS per cent above that for the
corresponding week of last year,
The railroads were put to it for
equipment to handle the moving
crowds.
Normal Lull Felt.
Buyers, preoccupied with inven.
tory taking, let new orders drop
away again, but this was said by
analysts to be in line with the nor
NAL year-end trend. Wholesale
markets settled down to their Gus
tomary lull for this season.
The week witnessed the first break
in the steady mounting of agricul-
tural commodity prices in the fu.
lures markets that has been going
on since early this month, wheat
and cotton losing a considerable
portion OF their recent gains. In
the cash markets, however, the ten
dency was still upward. The Dun e.
Bradstreet food price index moved
a trlf1e higher to equal the figure
for the comparative 1888 week.
In industry the slight falling of
IN production was about as usual,
The Associated Press index of ac.
tlvlty, adjusted for seasonal varia.
tlons, slipped to I'LL per cent Of
the 1929-30 average from l12.1 the
preceding period and compared
with 934 year ago. Steel mill and
automobile output were down
little, as were residential building
awards, but cotton mills stepped up
and electric power production
touched a record for the second
period in succession. Railroad
freight carloadings for the week
ended December 16 declined less
than seasonally and carrier officials
were quoted as saying December
revenues were resisting the usual
pre- Christmas decline.
Other Lines Advance.
In other lines there were advances.
Rayon weaving increased its rate
and glassware and sheet glass plants
were described as extraordinarily"
busy. Paper making fell back bit.
One fly in the ointment was con-
tinuation of the drought in the VIM
ter wheat belt. where the Depart
ment OF Agriculture estimated the
crop at SIS per cent of normal and in
the poorest condition ever reported.
This. 1t was asserted, meant a re-
duction in form purchasing power
next summer when the grain is har-
vested.
Symptomatic of the Christmas
buying rush was the fact that bank
clearlngs in leading cities outside
New York were at their peak for the
year, while bank debts to individual
accounts, which represent money
spent. were 9 per cent higher than
Tor the similar period of 1898. Bank
loans to commerce, industry and
agriculture in l0l cities of the Fed.
eral Reserve system rose S38, 900 900,
Helping to lift the ability of the
individual to play Santa Claus was
the TACT that in November, accord
ing to the Department of Labor,
factory employment and pay rolls
were at the highest figure in two
years. From mid October to No
vember the decline in all non-agri.
cultural employment was only 100.
700 as compared with normal $50.
900.
Quality in Demand.
Store owners reported a demand
Tor better merchandise at higher
prices" and that people were easy
to wait upon
Practical gifts remained in high
favor. said Dun e. Bradstreet in its
weekly review, and sales of occa-
slonal furniture pieces and electrical
appliances were we'll ahead of last
year. JeWelry sections found most
OF their business in lower-priced
merchandise, but also an exception
ally strong demand for better grades.
which averaged 10 to Is per cent
more than last year in dollar volume
The mild weather impeded apparel
sales. but furs. we'll in the luxury
class, were still leaders.
Inasmuch as retailers have been
cautious in their buying policies for
the season 1t was predicted the usua.
January sales would be of lesser i'm
portance than normal, with many
stores cutting down their white
sales" to two or three days from ss:--
ordinary five.
Wholesalers were preoccupied with
last-minute deliveries. There were
a few hurry recorders on gift mer-
chandise, but business was largely
In January promotional and early
spring goods.
An indication of the activity in
the woolen industry was the an
nouncement that more than 10000
workers in New England mills would
receive pay increases next month
ranging from 7 to 10 per cent.
The war proved more Of a benefit
to the machine tool and aircraft
makers than to industry in general.
In many instances machine tool
backlogs were extended until near
the end OF 1910. The British gov.
ernment was said to be negotiating
with a single companv Cnouo,aeI