Evening star., 1939-04-23
Caution Dominates
Quiet and Spotty
Trade Picture
Industrial Operations
Log, While Retail
Pace Is Uneven
BY THOMAS E. FLANAGAN,
Associated Press Financial Writer. q

Associated Press Financial Writer.
The Nations business shufded
along at an uneven pace this week.
Major industrial indices dragged.
Retail trade was spotty. Business
caught its breath from recent war
scares abroad, but experts said eau.
ton was still prevalent. 4
How the domestic business situa.
ton may become linked with tho
turn Of events In Europe had ono
striking Illustration In the weeks
business news. Iron Age reported
that Great Britain is canvassing
steel mills In this country for Ger.
tain types of munitions. 4,
Inquiries have been received in
the United States for sizable ouan.
titles Of shell steel and other mum.
tions materials" the trade publ.
cation said.
Analysts, noting the current de.
cline IN steel production in this
country; stressed that a tighter steel
situation is developing In Great
Britain. The fact that Britain's steel
mills are not turning out enough
steel to satisfy the governments
armament needs injected new fac.
tor into the domestic outlook. ,
A. P. Index Declines. =
Bearing witness to the continued
slackening Of industrial output was
the decline Of the Associated Press
index Of industrial activity to 85.3,
the lowest since last October. A
week ago 1t stood at 1854. q year
ago 69.4.
Business experts on the lookout
for hints Of general trends turned
toward indicators of general pur-
chasing power. Current Govern
ment estimates showed that in the
last three months there has been
a slight chipping away of income
received by individuals in the form
OF wages, interest payments, divi.
dends and rents. On the other hand,
these payments are holding consid-
erably above last year.
Government economists said these
income payments are closely related
to the international situation. Bar
ring unforeseen shocks to domestic
business from foreign war scares,
they said, income payments are ex-
pected to hold comparatively steady
during the next two months.
Income analysts said they have
been giving particularly close study
to the building industry. If gains
~ this field continue, they said,
this should augur we'll for the tone
OF general business and income to
the man In the street.
Building Trades Busy. ~1
There were two straws in the wind
relating to the building industry:
Turnover Of builders supplies in
some centers was brisk: the Ameri.
can Telephone & Telegraph Co.
reporting that installations had
reached a record peak of 100000
telephones, disclosed a plant expan-
sion program of $1,000 900 for the
current year, rise Of $37,00O,0OO
over last year.
Income economists were heartened
by the report of the Agriculture De-
partment OF cash income received by
farmers IN March. The total-in-
Guiding Government benefit pay
ments--rose to s582, 900 900, gain Of
l3 per cent over February. Nor
mally the trend Of farm income is
down at that season.
Included in the March income
total was sos, 600, 900 in Government
benefit payments. In this connec-
ton 1t was noted that in the first
nine and one-half months Federal
expenditures exceeded income by
about 1864 100000.
Other significant entrees on the
business ledger included: Bank
clearings rose sharply, new financing
expanded, corporate earnings Tor
the first quarter jumped, bank loans
were up, Westinghouse Electric G
Manufacturing Co. announced
bonus for $4,000 workers, wholesale
commodity prices held steady, tears
OF war In Europe brought brisk ex-
port demand for wheat and sugar.
Volume Above Year Ago.
The Commerce Departments re.
port on business in SO cities said
retail sales showed the usual post.
Easter lull," but volume made a 1av.
orable comparison with last years
trade. Cold weather and storms IN
many sections aggravated the Gus.
tomary downturn following Easter,
In wholesale markets hand-to-
mouth purchasing policies i. await
ed more settled world conditions and
seasonabie weather" the report SAID.
Industrial statistics issued during
the week follow:
The American Iron and Steel In
stitute reported production declined
slightly to 500 per cent OF capacity.
A month ago the rate was 55.4, q
year ago 32.4.
The Edison Electric Institute re.
ported that in the week ended April
18 electric power production totaled
2,170671 900 kilowatt hours, q small
drop from the preceding week, but
1O.9 per cent ahead OF last year.
Wards automotive reports said
production gained to 90,28O units.
compared with 88,O5O the previous
week and 57,363 in the like week last
year. Sales OF new passenger cars
at Wayne County, Mich, as reported
by the Commerce Department, de.
clined to 1892 units from LIS the
preceding week and GIG in the like
week year ago.
The Association Of American Rail.
roads reported carloadlngs totaIed
547,8l6 in the week ended April l8.
rise Of 2.3 per cent over the week