Evening star., 1940-01-07
Bargains Draw
Retail Buyers;
Factories Busy
Industry Debates
How Fast to Cut
Order BockIogs
BY SMITH REAVIS,
Associated Press BUSINESS Writer.

/
NEW YORK, Jan. 6-While busi-
ness peered ahead for 1910 portents
this week, bargain hunters helped
clean off the shelves of retail stores
and industry made a quick snap
back after the New Year Day holi-
day.
The rebound was not sufficient to
keep it at the almost unprecedented
production figures of the last month
or so, but it was sound enough to
maintain high daily average Of
output New orders did not equal
shipments of goods, however, and
the manner of pulling them in was
first-week-of- -the-year puzzler for
executives.
At the same time the leverage ac-
cumulated in the past four months
left enough work on the books to
force factories to high capacity OPP
erations for the next two or three
months at least. The men directing
jobs and sales debated whether to
steer a fast course now when unit
production costs are low because Of
the high rate of operations, or to
take the middle fairway of spacing
today's business over a longer period
so as to avoid let-down later on
should consumers find their needs
satisfied and quit buying.
Hopkins Gives Warning.
Secretary of Commerce Hopkins
noted warning in this respect. He
said:
"As industrial activity is not being
fully supported currently by incom-
ing business or corresponding vol.
ume, some readjustment in produce
tive activity can hardly be avoided
as the backlog of orders is reduced"
He added the extent Of the neces-
sary readjustment could be deter
mined by the attitude taken toward
inventory holdings which have been
and still are being enlarged through
previous commitments.
"The advance in prices, especially
retail prices" he said. has not been
so large as seemed likely two
months ago. Hence an expanded
volume of goods should continue to
be taken off the market by consum.
ers."
During the week, prices of COM
modities, especially in the agricul-
tural classifcations. tended to ad-
vance. Gamers included hides, tur.
pentine, sugar, -four, butter, cattle,
wheat, corn, oats and cotton. For
the first time since the European
war began Britain entered the ex-
port copper market with inquiries,
and prices for shipment abroad
rose little.
Some steel jobbers increased quo
tations on certain lines. although the
mills stuck by the figures they had
for this quarter some weeks ago.
A few retail prices on depleted lines
were boosted and the Dun g. Brad
street wholesale food index went up
a trifle for the first time since late
November.
Intensified by War.
Recognizing that the present re-
covery, which really began to get
up steam last May and was intensi-
fed for a while by the outbreak OF
war, is a durable goods recovery.
that is, one repairing the deficiencies
in the Nations plants, productive
capacity and equipment, the most
serious problem for executives is to
keep it so. They reason that if the
durable goods industries are kept
busy, there will be steady employ
ment, higher pay rolls and more
buying power on the part of the
housewife and man in the street,
and therefore consumers goods will
likewise be taken care of.
There were quite a few signs this
week that the process of rehabilitat-
ing the capital material structure
worn down by long years OF de-
preston was continuing.
In the field of railway equip
ment-the railways suffered hard
and are now beginning to pick up
(See TRADE, Page E-3.