Index

A heavy gale accompanied April to Manhattan. Wall Street ran with water. Offices were lighted all day. It was dismal, not exciting, on the floor of the New York Stock Exchange. Most traders kept an eye on Post 2, where United States Steel is traded in. Shortly after noon Steel sold at $138, one-eighth above its previous 1931 low. It was evident that what had a few weeks before seemed a runaway Spring market had petered out.

Traditionally, April 1 is the day when bankers and businessmen can look about them, size up the state of business. All last week figures were being issued which showed that the Spring recovery in business did not exceed the usual seasonal gain, and was giving signs of dying away. Perhaps most frightening, so far as the stockmarket is concerned, have been the many dividend reductions and omissions, although these reflect past business, not future. During March, 114 dividends were omitted, as against 57 such actions in March 1930; 115 dividends were reduced, against ten last year.

Insolvencies during March came to $60,386,000, a 6% gain over March of last year and the largest for the month since 1924. Insolvencies during the first quarter were $214,000,000 against $218,000,000 in 1922, $169,000,000 last year.

March is the best month for Steel Production. The only years in which April did not start with a drop in production were 1928 and 1922. 1931 proved no exception, as last week steel production fell from 57% of capacity to 55%, the first decline of the year. Said Iron Age: "This set-back is not regarded as signifying anything more than exaggerated caution." Steel prices remain firm, highish, but it is well known that naming a price and doing business at it are not the same thing in the steel industry.

Car Loadings remain smaller than at any time since 1921, but the end of March showed an unexpected, unusual increase. Nevertheless, totals remain 15% below 1930. 22% below 1929, and the first 75 railroads to issue February reports showed a 53% drop in operating income. New freight cars ordered during March came to but 2,166 against 4,464 a year ago, while only eight locomotives were ordered against 43 last year. But orders for rails totalled 14,850 tons against 5,000.

Automobile Production for March showed the gain expected over February, and April is looked forward to with considerable hope of further gains. Chevrolet increased its April schedule last week from 81,000 to 85,000 against 75,000 in March, and is running ahead of Ford. Cadillac and La Salle showed an unusual gain, being 26% ahead of March 1930, 20% over 1930's first three months. Many motor-makers are very cautious, shift their plans from week to week. Total April production is expected to run to 350,000 cars against 444,000 in April last year.

Bank Clearings in 125 leading cities last month came to $38,921,000,000. a drop of 23.9% from March 1930. Clearings for the first quarter were 22% below last year. Statements of 21 leading Manhattan banks last week showed a 10% drop in deposits since the end of 1930, although the total of 89,049,000,000 compared well with $8,230,000,000 the previous year. A feature of bank reports was the return to Second Biggest of National City Bank whose resources of $1,842,885,000 bettered Guaranty Trust's $1,806,380,000. Still on top is Chase National Bank with resources of $2,517,816,000.

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