Evening star., 1939-07-23
Many Indices Reach
Peaks for 1889
In Weekly Period
Government Economists
Make Predictions of
Continued Improvement
BY THOMAS E. FLANAGAN,
ASSnciAted Press Ru sineks Writar


predictions from Government econo-
mists OF continued improvement.
Figures showing new 1899 peaks
were reached in steel and power pro-
duction, and in carloadings, topped
the statistical news. The Associated
Press index of industrial activity
jumped to 904 from SO the previous
week and compared with 69.2 in the
like 1898 week.
Attracting as much, or more. at
tention in the business world, how
ever, was a statement from Presi-
dent Roosevelt that a prominent
businessman had told him that Con-
gress failure to act on neutrality
was killing the incest little business
boom you ever saw
Mr.. Roosevelts remark at his press
conference Friday was too late to
have much reflection in the weeks
business picture. However, stocks
continued to gain on the New York
Exchange Saturday in the busiest
short session since April 8.
Look for Continuation.
And 1t was apparent in Washing
ton that whatever effect neutrality,
may, or may not. be having on busi-
ness, most administration economists
| look for continuation of the BOOM"
II that be the name for it.
The Governments record on cur
rent business conditions, as pre-
sented by the Department of Com
merce, said:
After allowing for the usual sea-
sonal fluctuations, business has
made further progress recently.
Normal midsummer dullness marked
retail trade. but volumes in prac-
tlcally all cities were ahead of the
comparative period of 1898. Whole
sale purchasing is much larger than
year ago and current volumes are
| indicative Of confident attitude
| toward fall business on the part of
retailers. ''' Operations in durable
goods lines were reported far ahead
! OF those OF a year ago.
A leading Commerce Department
economist reported: I'VE are pretty
optimistic here so far as the next
| AcNA w oth hSOho dlC lOll(Cl llCO.
| After that there should be a pretty
definite upturn. The profit set-up
| has been fair. Raw material costs
have continued rather low, purchas-
ing power has held up we'll. The
| past spring provided fairly sound
basis, particularly III the price-cost
relationship and in inventories. The
construction industry is now very
high and should help the capital
| goods division. One question mark,
| Of course, is the automobile indus.
/ try and its probable demand for
STEEL
Reserve Board ANALYST.
A Federal Reserve Board ANALYST
offered the following observations:
Il think the general feeling around
here is that conditions are likely
to hold steady or improve slightly
the balance of the year There are
a number of indications pointing
upWard-not strikingly. but enough
to make us feel hopeful of some
moderate uptrend'
For the past several weeks the
stock market-usually an important
Weather-vane for trade winds-has
swung back and forth indecisively.
And short time ago Wall Street
indulged in speculation as to why
it had not followed the direction Of
improving business. This week.
however, the market hinted it had
made up its mind to catch up with
business. Prices on the New York
Stock Exchange spurted, piling up
gains of 81 to 50 or more a share.
Observers said some traders had
probably taken a more hopeful view
of the European situation
There were many miscellaneous
reports which got close scrutiny as
the week ended. Iron Age predict
ed that steel output may 60 so per
cent or higher in August. (The
industry can turn in a profit Of
around so per cent? The Associ-
alton of American Railroads report
ed that class l railroads of the
United States had a deficit of about
$50 100000 in the first five months.
compared with loss of sl64, 200 900
in the like 1888 period.
Bank Clearings Down.
Bank clearings in the latest week
were down nearly 10 per cent from
the like week year ago Public
offerings of new securities rose
sharply to 19l 100000, the second
highest for any week of the year
Lumber output was per cent above
last year. The Federal Reserve
Board reported commercial. indus
trial and agricultural loans of re-
porting banks had recovered all
losses Of the last year.
Industrial statistics issued this
week follow:
The American Iron and Steel In
stitute estimated production of steel
up to 56.4 per cent of capacity from
49.7 the previous week and COM
pared with S. a month ago and 1854
in the like week last year.
Electric power production rose to
24,l8l 900 kilowatt hours in the
week ended July Is, according to the
Edison Electric Institute. The rise.
which was a more than seasonal
gain from the previous holiday
week, brought the total to level II 5
per cent above the corresponding
week year ago.
The Association of American
Railroads reported carloadings
jumped 205 per cent in the week
ended July Is. The total, 6738l2,
was 11.8 per cent higher than last
year.
Wards automotive reports said
motor production was down to
47,420 units from 616l0 the previous
week and compared with 34,570 in
the like week last year.
C&oeLe of Pr~u Wo@I