Evening star., 1939-10-15
Business Scores
Further Gains
During Week
Advance Is Extended
Despite Increasingly
Cautious Attitude
BY SMITH REAvIS,
Press Financial Writer.

tions war-needled business made
further gains this week despite an
apparently more cautious attitude
on the part of consumers, middle
men and producers than was visible
in the first days after hostilities
broke out in Europe.
Measured by the standard indices,
1t cantered at its best gait since May,
1887, before the now well-remem-
bered recession" officially had set
in.
Mills and factories, choked by or
ders for quick delivery, worked at
capacity or near-capacity speed and
some industries even complained of
a shortage of skilled workmen to
handle the load put upon them.
At the same time the heavy for
ward purchasing movement initiated
in September seemed to be leveling
off as buyers lost some of their
fear of future higher prices or
judged Europe's peace offensive"
might result in defation before al
ready booked inventories could be
worked off.
However, future needs were being
discounted until the year-end or
even later in some of the consumers
goods groups and as far as eight
or nine months in machine tools and
railroad equipment.
Commodities Down.
Wholesale commodity prices
drifted little lower and there was
a downward tendency to the cost of
many articles as delivered to the
ultimate consumer. This trend was
spotty, however, as prices rose in
some cases.
An increased price consciousness
was noted among shoppers in the
majority of centers, Dun & Brad
street reported in its weekly sur
vey, and resistance was strong to
sharp mark-ups on food items" Re-
tail food prices fell about rs per
cent, according to the Department
of Labor.
The flood of war orders from
belligerents and neutral nations de-
prlved CT their usual sources of sup.
ply in Germany, France and Brit
ain, which have been expected by
many and not looked for by others,
failed to materialize to any great
extent. Inquiries, however, poured
in especially from Latin America.
Price considerations were said to
have lnterfered with bookings from
France and Britain, although both
countries have large reserves of gold
in this country wherewith to pay
their bills. Difficulties of prompt
settlement on Latin American or
ders because of the dearth of
United States exchange south Of
the Rio Grande slowed actual or.
ders from that area.
| Warn Against Boom.
A few observers continued to
warn against the possibilities of q
war boom. Benjamin M. Ander.
son, jr., professor of economics,
University of California at Los
Angeles, told the Investment Bank
ers Association of America that
England and France will have
enough cash to pay for what they
need. But will they buy as much,
as eagerly and with as little regard
for price as they did in the last
war?
Il think certainly not in the be-
ginning. They already have stores
OF many kinds that they did not
have in 1914 They will buy only
absolutely necessary things if they
carry out their present policies of
restricting civilian consumption
from the very beginning"
For the thirteenth week in sue
cession the Associated Press index
OF industrial activity rose, touch
ing its peak in nearly two and q
half years. 1t stood at 1867 per
cent of the 1929-3O average, COM
pared with 1868 last week and
1910 year ago.
Cheering was an advance in resi-
dental building to the years high
point, more than seasonal rise.
In engineering construction, private
awards outweighed public contracts
for the first time in 18 months,
which pleased those who assert the
renaissance in this field should
come from business rather than
governmental or municipal agen-
cies. A number of plans for in.
duStrial extensions were announced,
including expansion of steel plants
and utility electric generating ia
cilities.
Steel Mills BUSY.
While the rush of orders for steel
products seemed to die down a lit
tie, the mills, solidly booked for
many months ahead, were working,
Iron Age estimated, at 80 per cent
of capacity and some individual
plants and even entire districts at
100 per cent of theoretical capacity.
Pressure for early delivery of steel
to railway equipment makers and
OF rails to the carriers helped to rush
operations. Tinplate mills were at
their highest speed in years. Au-
tomobile companies took heavy
shipments. The sensitive price of
steel scrap which has risen almost
unprecedently in the past i've weeks
slipped, although purchases were
heavy.
At the rate of approximately L.
209 900 tons of ingots which it was
estimated would be completed, out
put was said to be at it's highest
weekly volume on record.
Awards OF new cargo vessels by
the United States Maritime Com
mission, totaling $l6,0OO,OO0 in value,
brought the commissions program
up to 137 ships built, on the ways
or contracted for. Army buying
gave an order of approximately So
100000 for airplane engines and
parts, an arms maker contracted to
furnish rifles to the extent of So
100000 and miscellaneous Army
bookings totaled another $4,000 900.
Bituminous coal shipments fell
OF, but production continued at a
high rate. Railway freight car
loadings for the week ended Octo- Z"