Evening star., 1940-03-17
Easter Expected
10 Boost Store
Sales Sharply
Biggest Buying Rush
Since Christmas
Is Anticipated
BY FRANK MacMILLEN.
Associated Press Business Writer.

ny MANN WIACMkLLEN.
Associated Press Business Writer.
NEW YORK, March 16.-Business
hitched Its sales chart to the Easter
shopping parade today as merchants
prepared for the biggest buying rush
at retail counters since Christmas.
Taking the trade spotlight away
from the worlds roaring business
IN war machines, Americas sellers
OF 1aunty Easter hats, spring coats
and the latest fashions in women's
dresses stepped to the front of the
economic stage.
The swirl Of Easter shopping
along Main Streets of the Nation
gave business a needed stimulus.
Liquidation of the short Lived
autumn war boom of industry con-
tinued the past week and manufac-
turing activity generally showed less
expansion than usual for the season.
Countering the production trend,
the retail sales curve spiralled up
ward in many communities. In the
remaining week before Easter, the
rise was expected to make the high
est March peak in retail sales in
years. partly because of the earliest
Easter date in quarter-century.
Surveying Easter trade prospects,
the National Retail Dry Goods
Association said big-scale buying
would be compressed within the
coming week.
DELAYED bv Weather.
RAW weather in many parts of
the country in recent weeks has
caused millions among the popula-
ton to delay the purchase of spring
wardrobes," the association observed.
I'm many cases purchases will be
made the coming week regardless Of
the weather.
THE early arrival of Easter this
year-March "a compared with April
9 in 1939-may be expected to make
sales comparisons with last year
appear phenomenal"
Assuming the same general level
of business conditions as year
ago. the association estimated the
Easter spurts would lift department
store sales 20 per cent for the week
compared with the like 1889 period.
with employment and purchas-
ing power on a higher plane than a
year ago." it added, "the normal
sales increases for the coming week
and the month will add materially
to the wide gains created by the
variance in the Easter dates"
Indicating the Easter buying rush
was taking OF from higher point
than last year, the Federal Reserve
Board estimated the Nations de-
partment store sales In the week
ended March were II per cent
higher than year ago. The gains
ranged from 4 per cent in the New
York area to 10 per cent in the
Cleveland and 26 in the Philadelphia
reserve districts.
Inventories Watched.
Manufacturers and wholesalers
eagerly watched the ascent of the
retail sales curve in hope the buying
would be great enough to force quick
replacement of sold-out stocks.
The start of Europe's war last
September was followed by tre-
mendous surge of buying for ex-
pansion of inventories. With the
cessation of this demand and the
reduction of untitled orders, industry
has been curtailing its production
rate, causing the last two months
the sharpest fall of industrial acti-
witty since 1887.
Latest date showed q retardation
Of the rate of decline under the lift
of March trade and seasonal ex-
pansion in automobile assemblies,
outdoor construction and develop
ment Of certain war-stimulated in
dustries, particularly aircraft, ship
building and tools.
Whether this was anything more
than temporary check on the down
trend was debated in financial
circles.
Security markets, after being
wedged in a rut for sometime,
shifted to the downside the past
few days. Spectators sold aircraft
and other shares carrying the war
label on revival of rumors Of peace
drive by Germany. The Russo-Fin-
nish agreement started the peace
talk.
Export Sales Expand.
Expanding export markets for
steel, copper and other metals por-
trayed the scope of the worlds war
economy" but export demand was
insufficient to change the trend Of
heavy industry in the United States,
reacting from the heights Of the
autumn upswing.
While steel production increased
slightly after two months of rapid
decline, the gain there was offset
by less than seasonal improvement
IN other important industries, In.
cluding home building. Errati6
March weather, bringing wintry
storms and heavy rains, was blamed
in part for the poor seasonal start
in outdoor activity. ...
Meanwhile, the Associated Press
index Of industrial activity sagged
for the ninth week.
The index has come down from
the late 1889 peak around 112 to
100 per cent Of the 1929-30 level,
representing loss Of most Of the
September December rise. A year
ago 1t was 87D.
Steel men eyed expanding export
demand In hope It would help re.