Evening star., 1939-10-01
u. 5. Industry Sets
Fastest Fall Pace
In Ten Years
Activity Nears Peaks
Of 1887, With Heavy
Lines in Leod
BY SMITH REAvIS,

NEW YORK, Sept. 3o.-The whir
Of United States industry ap-
preached its progression, 1887 pitch
this week, with the heavy industries
leading the way in accelerated OUT
put.
Seasonally the level was the best
for autumn since 1929, although the
wartime stimulation still seemed
to lag and the bulk of orders was
for domestic use. 1t was the elev-
enth successive period in which the
various business indices pushed
ahead.
Steel mills, cotton textIie p-ssR
railroad carloadings, resi6ef-4
building and automobile production
all benefited from the upsurge. Fac
tories and coal mines continued to
rehire workers and total industrial
employment was estimated at only
slightly under the 1887 peak.
Few orders from the fighting ma.
tions Of Europe, except in the mae
chine tool division, were reported,
but inquiries flooded sales staffs.
Bookings from neutral companies,
old customers of the belligerents,
poured in at better rate than in
the preceding week. The Commerce
Department put a special crew to
work Sitting" inquiries from abroad,
and appraisal agencies advised ex.
porters as to the possibility of pay.
ment Tor the goods wanted.
Excitement Fades.
In the meantime, however, the
excitement and perhaps over-en-
thusiasm which marked the first
days of the European conflict seemed
to die away under the caution Of
leaders who warned war business
wouldn't pay in the end.
Wholesale commodity prices In
clined downward for the first time
since early September, and prices
Of some primary materials, such as
cotton gray cloth, were shaved a
little. In other words. boom psy-
chology seemed a bit quenched.
Woolen textiles, kraft pulp, leather
and hides moved up, however.
Out in Seattle at the annual con-
vention of the American Bankers
Association, the Resolutions Com
mittee reported:
Most of the sudden expansion OF
business activity that has taken
place during the present month has
come because of the anticipation of
war orders rather than the result of
orders that have actually material
iZed.
THE policies of American banking
should be resolutely directed toward
restraining and restricting any ex-
cessive war boom in trade, industry,
agriculture or the securities mar.
kets."
Domestic Needs Cited.
Arthur A. Ballantine, former I'm
dersecretary of the Treasury. told
New York bondmen the recent ex-
pansion was due not merely to war
orders, but to domestic business
touched off" by prospects Of in
creased needs abroad.
IF proper action is taken a more
substantial and firmly founded for
ward move may perhaps be made to
outlast the tragic forces that gave
it origin" he said.
For the week as a whole, however,
the Associated Press index of in
dustrial activity rose to 104.8 per
cent of its l929-30 average. compared
with 1910 the preceding period and
78.4 a year ago.
Coal output increased and there
was some raising of prices. Auto
mobile production was at its high.
est level for the particular calendar
week since 1929 and dealers reported
they were selling the new 1910 models
rapidly. Railroad freight carload
ings jumped to a new high since
1887. The carriers therefore ordered
new equipment, including rails. fas-
Jennings and cars, which meant hum
dreds of thousands of tons of steel
would be employed in the next few
months.
One fairly large railway equip
ment order came from Brazil and
France and Canada were in the
market.
Steel operations, swamped by or
ders from domestic sources and neu.
trail countries. moved up to 1873 per
cent of capacity from 1913 the pre-
ceding week and compared with 467
last year. Many mills were booked
selidly for months and some "obso-
lete" equipment was being put into
shape. Republic Steel Corp. an
nounced it would spend $4,000, 600 in
plant expansion and renovation and
smaller programs were made public
by other companies.
Scrap Steel Rises.
No belligerent business was re-
ported, but purchasing agents were
said to have been demanding op-
tions on semi-finished material for
the foreign market. Prices were held
at the domestic level. :
Scrap steel prices rose again and
worried steelmakers. who said costs
were rising too rapidly. Some of the
smaller companies dependent largely
upon scrap as raw material raised
quotations, but the general struc-
ture Tor the fourth quarter was not
affected.
Consumers pressed mills to sched-
ule prices for the first quarter Of
1910, as much selling has been done
on the basis Of delivery then at the
prices then prevailing" 1t was ex-
pected the big companies would
make their announcements before
the middle Of October.
Machine tool makers reported
night shifts in many instances and
said their orders were coming from
the construction industries, rail-.
roads. electric appliance manu-
facturers. textile and food ma
chinery companies and the automo-
tive industry as well as from abroad.
Chemical companies experienced .
sharp upturn, with many inquiries
coming from other countries, where
Germany did $263, ,0O0, 900 business
In 1888. Buyers were obtaining pro-
lection on requirements as far ahead
as DOSSible Iilnnher r,rodllcfion ens1