Index

The familiar phrase "scraping bottom" was heard whenever businessmen last week stopped discussing the President's credit plan to talk about trade. Just as a man can cut his diet down only to a certain point, apparently U. S. business had reached the lowest possible level of consumption. While general business held at the same level (68.6% by one index) three big industries showed the following:

Automobile Production in September was estimated last week by National Automobile Chamber of Commerce to have been 142,651 units, 25.6% below August, 37-7% below September 1930. For nine months, production has been 2,196,000 units, or 28% under the same period of last year. October schedules are reported greatly curtailed in most cases.

September production of pig iron and steel ingots were both at the lowest monthly level since 1921. Steel production last week however was around 29% of capacity, a slight gain over September's 28.2% average. Unfilled orders of United States Steel Corp. at the end of the month showed a decrease of 24,624 tons and stood at 3,144,833 tons. The industry remains hopeful of: 1) increased building construction if credit facilities become easier; 2) real buying from the railroads after the I. C. C.'s rate decision; 3) bigger demand from, the automobile industry in November. A disturbing factor was the new low price for steel scrap registered last week, $8.03 per gross ton against $9 the week before.

Carloadings for the week ended Sept. 26 (reported last week) amounted to 738,029 against 742,628 the week prior. A seasonal rise would have been usual, so adjusted indices of carloadings last week fell again, reached new lows. Complete August operating figures for 171 Class I roads last week showed net operating income (before bond interest) for the eight months of 350 million dollars against 556 millions in the same period last year. This was a 2.14% rate of return on book value. The decline in gross operating revenues was 19% and in operating expenses 17.1%. August alone showed a book value return of only 1.90% against 3.33% in August 1930.

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