Evening Star Newspaper, July 5, 1936, Page 49

Classified Ads Pages 4 to 9 Part 5—10 Pages MLACHLEN BANK OPENS SOUTHWEST| P OFFICE TOMORROW New Building Erected as U. S. Takes Over Site of Former Branch. 70 PER CENT RISE SEEN IN JUNE BUILDING HERE Corby, Bank Association Head, Optimistic on Outlook for Last Half Year. BY EDWARD C. STONE. Lanier P. McLachlen, president of the McLachlen Banking Corp., an- nounced yesterday that the new Southwest branch will be opened to- morrow for both business and inspec- tion, between 8:30 am. and 5:30 p.m. The bank’s new branch has just been constructed and equipped to take the place of the office which has been operated for several years at 310 Four- teenth street southwest, the new quar- | ters being located at the corner of Twelfth and Maryland avenue. . | The building, located on the %ou‘h- west corner, is of brick construction of Colonial design and contains every modern banking facility. The bank is situated on a most historic site, as 1t stands upon the exact spot on which once stood the home of the first Mayor ©of Washington, Robert Brent. The interior of the banking room is finished in lead blue and is equipped with silver indirect lighting fixtures. Counters and other interior woodwork are of maple. This is the second time McLachlen bank officials have con- | structed & new home for the South- west branch, being obliged to move from former locations because of the Government building program. The original branch was at 1350 B street southwest, and was opened to serve | the bank’s customers in Government service in that section of the city. Bank Established in 1891. The branch has enjoyed steady growth. The office to be opened to- morrow is considered more convenient for both Government employes and mer banking quarters. The main office has been located at Tenth and G streets northwest ever since the McLachlen Banking Corp. was found- | ed in 1891. The bank is under super- | vision of the controller of the cur- yency, is a member of the Federal De- | posit Insurance Corp., and assets on | June 30, 1935, were in excess of $5,- 000,000, Officers of the bank include L. P. McLachlen, president; Firman R.| Horner and John A. Massie, vice presi- dents; Archibald McLachlen, secretary | and treasurer; Guy D. Cowl, ssm'mv. treasurer and branch manager; E. L. | W. Goldney, auditor, and William M. McClure, assistant branch manager. | In addition to the senior officers, the directors include Thomas R. Harney, Edwin H. Etz, Lee C. Corbett, George | Miller, E. H. McLachlen and A. H. Brewood. 70 Per Cent Building Gain. The building industry in Wash- ington enjoyed unusual activity during | the month of June, with the value of | building permits climbing to a total | of $3,087,250 and a gain of 70.3 per cent, according to the Commerce De- partment’s weekly review. This was & 42.2 per cent pick-up over the month of May. Department store sales here during | the past week maintained their gain | over 1935 with a 2 per cent increase, but receded from the previous week with a 6 per cent decrease. Bank | clearings jumped 17.1 per cent over the previous week and gained 2.5 per| cent over the like 1935 week. | Tourist activities here have not hit their full Summer stride yet, although well ahead of last year, as indicated by the 56,800 registrations at the Smithsonian Institution. Spending of bonus money is said to have helped many branches of busi- ness all over the fifth Federal Re- serve district, including Washington. | Merchants state that this money has prevented any real Summer setback | in trade, which usually occurs at this | time. Corby Cheerful on Outlook. Karl W. Corby, president of the Dis- trict Bankers' Association, is highly optimistic on the outlook for Washing- ton during the rest of the year, believ- ing that business and financial condi- tions should continue the notable im- provement scored in the six months Just ended. He cites increased activity in con- #truction, demand for automobiles, electric power output, substantial in- creases every month in retail trade and constant growth in bank clearings as some of the reasons for his encouraging predictions. A study of national conditions in the first half of 1936 reveals many im- portant gains in industry. Buying power has held up well, stimulating ex- cellent activity in consumer goods lines. All these improved conditions elsewhere are being reflected here, ‘where recovery has made much more striking progress than in most other large cities. Heard in Financial District. ‘The Washington branch of the New York Life wrote 1,335 applications for & total volume of $3323,000 in the first six months of 1936, according to Earl D. Krewson, agency director. This is about 5 per cent increase in paid production over the like period of 1935. A remarkable increase in policies pro- viding old-age income was shown, in- dicating the desire of the public to make old age secure. James M. Landis has been re-elected chairman of the Securities and Ex- change Commission for his second term. This action would seem to end all rumors that he might resign from the commission this Fall and return to the Harvard Law School faculty. He was first elected chairman on August 21, last year, taking the place of Chairman Joseph P. Kennedy. The dollar volume of retail financing »f new passenger automobiles shows an increase of 76 per cent for May, &8s compared with May, 1935, and an increase of 78 per cent compared with ' Bank Chief I LANIER P. McLACHLEN, President of the McLachlen Banking Corp., which opens a new branch office in the southwest section of the city tomorrow. The former office had to be abandoned to make way for the Government’s building program. The new bank is located at Twelfth street and Maryland avenue. —Harris-Ewing Photo. WAR FEARS CHECK RECOVERY TREND ON LONDON MART Monetary Situation Eases, Gold Purchases Back Larger Note Issue. BY LEONARD J. REID. By Cable to The Star. g LONDON. July 4—The turn of the half-year was negotiated comfortably with the London money market and the Bank of England’s large gold +| purchases backing the increased note |issue easing the monetary situation, business men than either of the for- | e €08 n T AT S W, de- clining rates for discounts for short money. British government bonds were firm, but they did not fully respond to this money development because interna- tional politics were continuously ob- trusive. The latest example was fear of a Danzig coup, which threatened new dangers to the peace of Europe, while the Geneva proceedings were constructively inconclusive, the only positive effect being to irriate Germany and Italy. Turnover Restricted. The stock market's impressively cheerful tone was obviously ready to respond to good foreign political news, but the turnover was restricted. Spec- ulation was concentrated on promising new Rand gold mines and a few- favored industrials. Meanwhile, a good feature of the past week was the uni- formly successful oversubscriptiorn of a | series of néw industrial capital issues. The Bank of England’s note circu- lation will likely make new records weekly until the August holiday is over. The domestic demand for cur- rency has increased through more em- ployment and high wages, while the substantial volume of notes, hoarded | by nervous Europeans, has not yet re- turned. Home Indices Good. All home indices remain good; for example, the half-year rail reports and retail sales revealed an expansion in spending, production and distribution. General opinion is that the level of industrial share values would quickly recapture the February peak if inter- national anxieties were allayed. but there is little immediate hope in that direction. The heavy fall of the New Zealand bonds was due to the premier’s state- ment that the finance minister, who is visiting London, will ask for a curtail- ment of the interest rates, but this will be rejected by the bondholders and probably will not be fully pressed by New Zealand, in view of the grave damage to her credit involved in any such demand. Conditions in France, Palestine and Egypt were all quieter, with leading foreign exchanges temporarily steady, but foreign politics will dominate the situation for good or ill. (Ccpyright 1936, by the Noath American Newspaper Alliance Inc.) e ADVANCE MAINTAINED BY TRANSIT REVENUES By the Associated Press. NEW YORK, July 4—Continu- ing improvement in transit revenues was shown for the week ended June 27, when totals topped those of the like 1935 week, the Transit Journal reported. The magazine's indicator stood at 109.27 compared with a year ago. In the preceding week 108.00 was registered. | ever saved much by continually pil- | FINANCIAL AND CLASSIFIED he Sunday Star WASHINGTON, D. C, BONDS REGISTER 1| DOWNWARD CURVE IN DULL TRADING Federal Government Issues About at Standstill During Week. DOW-JONES AVERAGE OFF AGAIN SLIGHTLY Morgenthau Statement Contains Nothing New—Interest Sav- ings Declared Illusory. BY BYRON SELLER, i Staft Correspondent of The Star. NEW YORK, July 4.—After getting close to the highs of February and March, the bond market has rounded off, with the curve slightly downward. Trading has been dull, with little to mark the dealings in corporate issues, while United States Governments have come just about to a standstill. This week the 40-bond average com- piled by Dow-Jones shows a decline of about the same proportions as in the previous week; that is, around ;. And again the second-grade rail group was down about a half point. High- grade rails and utilities were only a shade lower, while the industrials turned a small fraction higher. Secretary of the Treasury Morgen- thau's fiscal year-end statement con- tained nothing new, his promise of an ultimate reduction in the total national debt, through recoveries on various loans to individuals and institutions and through eventual application of the stabilization fund to debt retire- ment, is something long taken into account. And talk that Federal ex- penditures are on the decline needs to be backed by a little more evidence and experience before it will be taken | seriously. Savings on interest rates | are an illusory saving, for no one has ing up debt, even in a cheap mmey‘ market. Continuation Foreseen. Another voice has been added to the | chorus of those who are convinced | that interest rates are to remain low— “until.” In an address before 400 bank offi- | cials at Rutgers University, Harold G. | Moulton, president of the Brookings Institution, said that “this situation (low interest rates and yields on securi- | ties) will continue until such time as the flotation of mew securities for pri- vate capital development furnishes a normal outlet for corporate and indi- vidual savings. As soon as new corporate issues reach considerable volume, interest rates will begin to rise and the prices of high-grade securities—and of Gov- emment bonds—will decline. In view of still existing business uncertainties, it may be quite some time before a significant thnmgeI occurs.” Talk is again rife in the financial district of impending action—some | say perhaps this month—to reduce top-heavy excess reserves by raising | reserve requirements by 25 or 50 per cent. since credit extension shows not the slightest sign of growing up to present possibilities, it is doubtful if any such cut would be of more than academic interest. It would be some- what like a family's deciding to shut off an unused attic. The real significance of such action, if it comes, may be an intention to bring surplus reserves down to con- trollable proportions in advance of an easing of margih requirements on stock collateral loans. Flotations Decline. With total new flotations this week somewhat under half those of last week, the aggregate for the past fort- night exceeds $250,000,000. Corporate financing, including re- funding, for the month of June, 1936, totaled about $451,300,000, compared with around $237,000,000 in May and about $138,000,000 in June, 1935. July is expected to record some decline. For the first six months of this year the total was $2,246,176344, against only $665,338,556 for the first half of last year. (Copyright. 1956.) TUBIZE EXPANSION VOTE TO BE TAKEN JULY 30 By the Associated Press. HOPEWELL, Va, July 4—Pro- posals to expand plants here and at Rome, Ga. at a cost of approxi- mately $2,800,000, will be laid before class A and preferred stockholders of the Tubize Chatillon Corp. in New York July 30. Plans for the expansion were out- lined by Roland L. Taylor, chairman of the board, in an open letter to stockholders. The tentative proposals call for & new unit to the viscose plant at Rome and the revamping of equipment in the present mill there. DROUGHT BECOMES PRINCIPAL THREAT 10 U. S. RECOVERY Loss May Be as Great as in 1934—Imposes Big Load on Government. FOOD INDEX AT PEAK, LIKELY TO GAIN MQRE L Farm Income During May Sets Highest Mark in Six Years. Dry Areas Hit. BY CHARLES F. SPEARE. Special Dispatcn to Tne Star. NEW YORK, July 4—The only seri- ous menace to business recovery at present is the drought which afflicts portions of the Northwest and South- east. The loss from it may be as great as in 1934, when the Government granted $500,000,000 for relief to dis- tressed farmers and stock raisers. The cycle of flood and famine has appar- ently not run its course. Fortunately it has manifested its most serious phases toward the end of the industrial and agricultural de- pression. However, it imposes a serious tax on the Federal Government, which always has to shoulder the load placed on States when they face an extraordi- nary emergency. The shortage of grain and of cattle two years ago caused a sharp rise in the cost of foodstuffs. It would not be surprising if this were the effect of the present drought. With the advance in June, the food index is now ut the highest of the year, but only slightly above that of the same period in 1935. Farm Income Sets Record. Grain markets this week have been at times buoyant on the Western weather situation. Farm income in May was the highest for that month in six years. For the first five months of 1936 the cash received was $300,- 000,000 greater than the year previous. For the first half of June a further price advance of several points added to the farm products’ return. There is as yet no decline noted in sales of agricultural implements, of general merchandise, or indications of a falling off in railroad car loadings from the distressed districts. On the other hand, retail transac- tions have declined. The loss in farm- ers’ buying power will be most evident in the drought States later in the season. Expectation of it has already changed sentiment somewhat toward railroad securities. Not only will the “Granger” roads have less wheat and corn to move, but, as in all similar crises, they are pressed to grant lower rates on shipments of livestock from the drought regions. Low, evendwhen at the prescribed tariffs, the rates in emergencies allow little if any profit to the carriers. Steel, Power Outputs Up. Iron and steel production took a sharp jump at the end of June, when it reached 74 per cent of capacity, another high record since 1930, and comparing with less than 33 per cent a year ago. Then occurred the turn in the steel industry which Gen. Charles G. Dawes had predicted as the signal for universal business revival. Opin- fon in the trade is that this may be the top level for 1936 and that it re- flects an abnormal demand prelimin- ary to higher prices and the pmmbuny of labor troubles. The output of the power and light industry also is at about its best fig- ures, while railroad car loadings in June were 15 per cent more than a year ago. Eastern lines that petitioned the Interstate Commerce Commission to rescind their lower passenger fare order, and then took their case to court, find that they have not been | hurt as much as expected; in fact, have gained revenues in spite of the 2-cent rate. It is too early to estimate or even approximate the amount of profit achieved by American corporations in the second quarter of the year. About all that can be said is that a large number did better in the three months ending June 30 than in the March quarter, when a substantial group of industrial concerus showed a gain of about 50 per cent over the same period in 1935. And dividends declared for the six months were 20 per cent more than last year. This, it must be un- derstood, followed a record in 1935, marked by a 50 per cent rise in profits of about 1800 concerus, compared with those of 1934. Receipts Qutrun Profits. So the momentum of return on capi- tal invested in business is increasing. But in many cases, an expansion in gross receipts is in contrast to a fall- ing unit of profit on turnover. A striking example of this is given in the recently published annual re- port of the Great Atlantic & Pacific Tea Co. of America. In the 12 months to February 29, 1936, this closely held (Continued on Third Page.) July Is Famous for Steep Upturns in Wheat; Drought Situation Recalls Stampede in 1934 BY JOHN P. BOUGHAN, Assoclated Press Market Edicor. CHICAGO. July 4.—Friends of higher prices are citing history to show July is famous for steep upturns in wheat markets, and July, 1936, is not an exception. A special instance given is that in the Summer of 1934, very much as during this Summer, Europeans largely disregarded crop-damage reports from North America. Starting about mid- July, 1934, however, a stampede of trans-Atlantic buyers started that ran Liverpool wheat prices up 18 cents a bushel in approximately three weeks’ time. With Europe now apparently depending on Canada to furnish the bulk of wheat needed overseas in the next six months, some leading special- May, 1934, according to preliminary estimates by the Department of Com- merce, ists assert bullish factors will be em- phasized tremendously if there is any further adverse crop development in ¢ Canada’s main source of supplies, the three prairie provinces. Responsive in great degree to Cana- dian news, wheat prices in Chicago are now 7 cents to 7% cents a bushel higher than a week ago, corn 5%:86% up, oats 3a3% advanced and rye show- ing 4%a5% cents jump. In provisions there is a gain of 20 to 30 cents. It is especially being pointed out that current reports suggest a rapid decline in Canadian wheat crop con- dition if hot, dry weather precedes gen- erous rains. Aside from forebodings about Canada’s crop prospects, much interest is being manifested in talk that the United States Government report July 10 is expected to show more than 50 per cent of the estimated 19,000,000 acres seeded to wheat in the Dakotas, Minnesota and Montana has been abandoned as worthless. State- ments are added that even under the most favorable conditions hereafter, the Spring wheat efop south of the 4 Canadian border will be a relatively light one this year, except possibly for the North Pacific Coast. On the other hand, the Winnipeg July wheat closing price last night, 87, cents—29 cents lower than the Minneapolis market—is regarded as undoubtedly putting Canada on an export basis to this country, in spite of 42 cents duty. Meanwhile, the first large increase of the United States wheat visible supply is expected on Monday. With today’s holiday and a Sunday intervening, very heavy do- mestic receipts of wheat Monday ap- pear certain. Advances in hog prices are placing a big premium on heavy farm feeding of corn. Stocks of that grain display only small increases. Oats and rye have been hit hard by crop losses. Provisions show themselves sensitive to upturns of cereals as well. as of hog values. 1 SHOPPING HABITS | average American family? | to this question, if any adequate reply | ernments which are always trving to SUNDAY MORNING, JULY 5, 1936. HARVESTING THE CROPS / | y / /,g'(J i \ l ) ) /g //” / /////f// N = = XN e % G\//// N AT \ " \\ 1. P «/ | / /" \a DRAW ATTENTION W. P. A. Project on Larger Scale Than Before—Busi- ness Vitally Interested. BY HARDEN COLFAX. What are the spending habits of the ‘The reply can be obtained, will be of real vital interest not only to the average family | itself, but to the business men who serve Mr. and Mrs. Average Citizen and to local, State, and national gov- regulate their conduct and improve their status. An attempt to do this sort of thing has already been made several times and the income studies of the Depart- ment of Commerce and the National Industrial Conference Board have thrown some light on it. However, this new project is on a larger scale. Labor Officials in Charge. Known as the study of consumer purchases, the W. P. A. is carrying it out under the technical direction of the Bureau of Labor Statistics of the Department of Labor and the Bureau of Home Economics of the Department of Agriculture. Some of its objectives and benefits have been summarized by Dr. A. D. H. Kaplan, who is in charge of the section de- | voted to urban investigation. He said recently that “there is no disputing the fact that a knowledge of what families with different in- comes and occupations are buying is of vital importance to business men.” | Moreover, social agencies and civic groups need more information about the relationship between income, health and education, whensthey plan welfare programs, help fagilies with budget problems, raise money for com- munity chests and undertake hous- ing programs. Finally labor groups, which in the past have had to rely on limited data for wage and salary negotiations, now will have complete infomation which will “help to prevent maladjustments in wage levels and the labor market.” 400,000 to Be Included. It is proposed to collect informa- tion from some 400,000 families in various parts of the country with an- nual incomes ranging from $250 to $20,000. This information will be broken down later, on the basis of size of family, income, nativity, color and occupation. From a smaller num- ber of families, details will be ob- tained as to food consumption. The first actual work on this proj- ect was begun last January when the first allocation of funds was made. Officials in charge believe that the tabulation on results will be ready by January 1 next, and publication of these results by the following June. (Copyright, 193¢ ) STATE-OWNED CARRIER SHOWS $22,769 LOSS By the Associated Press. RALEIGH, N. C, July 4—An an- nual financial report of the Atlantic & North Carolina Railroad, filed with the State Utilities Commission, shows the concern concluded its first month and a half as a State-owned utility with an operating deficit of $22,769. North Carolina now owns 12,666 shares of stock in the concern. Craven County is the next largest stockholder with 1,293 shares. Total par value of the outstanding stock is $1,797,200. STOCK OFFER EXTENDED. NEW YORK, July 4 (#).—Ameri- can Zinc, Lead & Smelting Co. has extended to September 30 its ex- change offer of one share of new prior preferred stock and six shares of common for each share of out- standing old preferred. Deposits Mount To All-Time Peak In Chicago Banks Ey the Associated Press. CHICAGO, July 4.— Deposits in Chicago banks reached a new high| record in figures made public in re-| sponse to calls from the controller of the currency and the State auditor. Figures for 52 Chicago banks, 23 of them national, showed deposits June 30 totaled $3.143,904,000, compared | with $2.796,153,000 three months ago. A yvear ago deposits totaled $2,626,- 932,000. Records show that never before in Chicago's history, even during the peak of the 1929 boom, have bank deposits here exceeded $3,000,000,000. 'RECOVERY FACES TWO BIG OBSTACLES Standard Statistics Stresses Drought Conditions and Grow- ing Labor Unrest. Spectal Dispatch to The Star. NEW YORK, July 4—In its weekly summary of the general business situa- tion, the Standard Statistics Co. of New York, currently comments as follows: “Continuing drought conditions in | the Northwest.and growing labor un- rest have tended to cloud an other- :wwe bright business picture. “There have been only scattered rains in the dry areas recently. with the results that further deterioration in crops doubtless has taken place. Not only has the Spring wheat crop been severely damaged, but the small grains (oats, rye and barely, have been adversely affected. and yields will be well below earlier expectations. The corn crop likewise has started off poorly, although final harvest of this grain will depend largely upon the weather this Summer. “Complaints of poor pasturage also have been received. Consequently, the flow of milk has been reduced and raw milk prices have firmed. In fact, quotations for all dairy products have strengthened in reflection of the pros- pective lower supplies. “The drought situation at the moment is serious, and although it is not nearly so widespread as in 1934, it will have the effect of reducing the purchasing power of a large number of individual farmers, even though FPederal relief will be forthcoming.” GOLD CURRENCIES GAIN IN LONDON DEALINGS | By the Associated Press. LONDON, July 4—Gold currencies were firmer in a quiet foreign ex- change market today. ‘The United States dollar gained 3 /16 and closed at 5.021/16 to the pound, against the overnight New York rate of 5.02%. The French franc finished at 75.69 francs to the pound, as com- pared with 75.81 yesterday. CLOTHING ORDERS From 10 to 20 Per Cent Above Year Ago. Special Dispatch to The Star " NEW YORK, July 4—Reaching a greater degree of stability during the |last two years, the men's clothing | trade has been able to make more progress thus far in 1936 than for any | comparative period since 1930, accord- ing to a survey by Dun & Bradstreet, Inc. consumer demand, retail sales during the elapsed five months ranged from 10 to 20 per cent larger in dollar volume than in 1935, with the peak selling season yet to be reached. Orders to wholesalers for Summer merchandise were 15 to 20 per cent more than a year ago, while early commitments for Fall goods have gone ahead by 20 to 30 per cent. “Manufacturers have booked orders at the best rate in six years, with an advantage over the 1935 comparative of 25 to 35 per cent. In spite of the moderate price increases, more in- terest has been shown in the medium and better grade of garments. One of the most noteworthy changes has been the trend toward lightweight fabrics. “This has been caused to some extent by efforts to avoid increased retail prices, but chiefly by the shift in consumer preference, closed auto- mobiles and long hours spent in | heated offices eliminating the need for heavy fabrics. “Manufacturing costs have shown a | decided tendency to increase, which soon may result in abrupt upward re- visions in retail prices. This has been due, in part, to industrial conditions and also to government regulations, including the pay roll tax, which in itself will advance the labor costs of manufacturers by 3!z per cent for 1937. “The ultimate pyramided effect of this item on costs and prices un- doubtedly will be considerable. CONSTRUCTIbN JOBS IN VIRGINIA INCREASE Ey the Associated Press. RICHMOND, Va., July 4—Frank P. Evans, statisticlan of the State Industrial Commission, reported that hours of employment in the con- struction industry during June were more than 40 per cent above the same month of 1935. Commercial enterprises and manu- facturing showed more than a 15 per cent increase, he said, while an in- crease of more than 10 per cent was noted in clerical occupations. Coincident with the increase in hours worked, occupational injuries rose to a point higher than for any month since August, 1930. Railroads Spend $452,859,000, No Sign of Slackening Appears By the Azsociated Press. CHICAGO, July 4—“No sign of a let-up” in the swift upsurge of railroad spending in the first six months of 1936 was seen today by Harry G. Taylor, chairman of the Western Association of Railway Exec- utives. ‘The magazine Railway Age yester- day computed the bill for new loco- motives, cars, rails, material and sup- plies and fuel to date this year at $452,859,000, described as the biggest outlay since 1929, and noted that purchases were ‘made almost entirely out of earnings, whereas two years ago the lines bought with bon'owed money. Total freight car orders of 26, 550 during the period more than tripled | the 7,108 ordered in the first ha'f of 1935. The roads bought 122 loco- motives, more than in any year since 1929. New rail tonnage reached 470,~ 485, nearly twice the comparable 1935 figure and almost equa. to the 499,- 948 total for all of last year. “The tremendous volume of buying today indicates two things,” Taylor said, “a return of buying power with increased traffic, both freight and passenger, and a determination to put the railroad plant in order with new, modern equipment that will gain busi- ness.” BEST IN 6 YEARS Men’s Apparel Sales Rise “Favored by the constantly widening | l Part Five I BUSINESS FORGES STEADILY AHEAD DESPITE BARRIERS Store Sales Total Gains Sharply, Although Drought Areas Are Off. INDEX OF INDUSTRIAL ACTIVITY AT NEW PEAK Wholesale Centers Busy With Fall Lines, as Buying Starts Earlier Than Expected. BY THOMAS E. FLANAGAN, Associated Press Financial Writer. National industry last week rounde ed the midyear post with another burst of contra-seasonal speed as retail trade, although hampered in some sectors by drought, enjoyed wide gains in the aggregate with the aid of vigorous buying of Summer merchandise. The Associated Press index of ine dustrial activity pushed forward to a new high for the year at 92.3 per cent | of the 1929-30 average. Its gain from 91.3 per cent the previous week was the fifth consecutive advance for 1935, Last year the index stood at 72.0. The Department of Commerce weeke ly business survey of 35 cities said: “Retail trade was on advanced ground in all sections of the country despite conflicting factors of drought. bonus, weather and vacations. Wholesale trade is now on Fall lines, with earlier Autumn buying than had been exe pected. Labor Troubles Feared. “The publicity given labor probe lems was chiefly responsible for the rise in steel purchases. Advance buy= ing incident to 1937 automobile plans has already stimulated some induse trial orders.” Generating power from within the | fuel provided by recent forward mo- mentum, the four major divisions of industry—steel, electricity. automobiles and freight carloadings —hummed along at a faster than normal clip | for this season of year. Steel mill operations rose to 74 per cent of capacity, up from 70.2 last | week and the best rate since May, 1930. It was the twenty-first consecue tive week in which steel makers kept production ahead of 1935 The rate, experts said, reflected the effort of the industry to score a good turnout in the week shortened by the holiday and buying in anticipation of third-quarted price increases. New Power Peak Set. Flectricity production boomed to a peak never before touched—2, 029.639.- 000 kilowatt hours, up 145 per cent from the corresponding week a year | ago. Power analysts said the unusual- |1y energetic steel output, sustained household demand and heavy irriga- tion pumping on the West Coast had | boosted the total. Cram's reported output of automo- biles last week rose to 100,697 units | from 99,695 the week before and 59.380 |a year ago. Automobile circles said ;bctter than expected buying of pas- | senger cars bad brought June sales at least up to May's total or possibly better. They said bonus spending had | helped turn the trick, but emphasized the growth of buying power in the hands of those not veterans. Heavier shipments of freight. pare ticularly coal, grain and miscellaneous, helped lif* the carloadings total 3.3 per cent over the preceding week to 713,639. The gain over the like week of 1935—15.7 per cent—afforded & measure of both general business im- provement and better income for the carriers. . | The heavier loadings were studied |in conjunction with estimates which indicated class 1 railroads for June would have revenue of about $330.« | 000,000, an improvement of about $11,000,000 over May and nearly $50,« 000,000 ahead of June, 1935. C. & O. Places Order . That railroad managements were in a better frame of mind was seen in | such items as the order of Chesapeake | & Ohio for 20,000 tons of rails and the | order of Southern Pacific for two 12« car light-weight streamlined trains. A bright spot on the trade horizon was the drop in commercial failures to the lowest for any week since the Fall { of 1920 and a total 28.3 per cent under Ithe like week last year. according to Dun & Bradstreet Retail trade experts attached cone siderable importance to the faster movement of heavy types of merchan« ldi-e into consumer channels. Demand for furniture. household equipment and radios showed, they said, that wants long deferred in the past seve eral years are beginning to be satise fied more aggressively. In the theater of international ree lations, which commands the atten= tion of trade and financial quarters ycharting the long-term course, one factor stood out: Worry over the stae bility of the French franc abated. Banking circles noted the upswing of $230,000,000 in excess reserves to $2,670,000,000 and the jump in mone~ tary gold to the unprecedented high of $10,612,000,000. Swelling surplus bank funds, they said, implied continued low money rates. The bulge in gold stocks was seen as an aftermath of the flight of gold to this country from France following recent political and financial troubles. Measured by the Associated Press average of 60 shares, the stock market was unchanged at 64.0. Financial | circles said its action was inconclusive. Prices wer; a little under the April Detailed Reports Given. | Detailed reports on business in Fed« eral Reserve districts follow: BOSTON.—Textile plants reported an active demand for finished goods, with many retailers making a belated attempt to cover seaconal require= ments. The Commercial Bulletin re- ported a let-down in wool activity, but said prices were steady. NEW YORK.—Merchandise moved into retail channels at a pace 12 to 15 per cent ahead of last year. The demand for Summer apparel was strong and vacation needs stimulated activity. PHILADELPHIA.—Trading fell off (Continued on Third Page.) 1)