Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-11-12
Allied War Buying
or Billions in Year
To Begin Soon
Britain, France Plan
To Avoid Runaway
In U. S. Prices
~ the Associated Press.

In U. 5. Prices
Bs the Associated Press.
NEW YORK, Nov. 11.-Leading
Wall Street financial sources said
today British and French purchases
Of American products In quantity
have begun, and will swell to high
volume during the next seven weeks.
A number of French purchasing
commissions already here have &C
cepted and approved the first orders,
which are now being placed through
Maurice -Dombasle, veteran
commercial counsellor of the French
Embassy.
Today's announced placement of
an order for 1000 cavalry and 1000
artillery horses for France was lex
cept for previous orders in the air
plane field merely the beginning of
vast program, which may run into
billions, they said.
The British War Supplies Com
mission Is expected to open up
shop" here in the next week or so.
Already some orders have been
placed through the Ottawa ONCE,
Wall Street sources said, and con-
versations were held here during the
past few days in which participants
included members of French and
British buying agencies, bankers and
political representatives of those
countries and leading United States
f1nanciers and manufacturing repre-
sentatives.
Volume Buying in Prospect.
Also except for airplanes. British
war orders in volume may be ex-
pected before the end of the year or
shortly after, they said.
These responsible financial sources
said there now remains no doubt
that British and French war orders
for munitions, supplies and pro-
visions-are likely to be a major
factor in the United States economy
during 1910.
Estimates vary, but it seems prob
able that total of not less than
$4,000 900 900 for non-normal re-
quirements would be spent by the
two countries here in the next IL
months, these quarters suggest.
In addition, they said, England is
studying monumental plans to invest
further amount exceeding that
total in capital development of Ca
madam industries, primarily for mu-
voifiNpS c11nNlv, for rHntor, RI "a 1yy 1Nno
war, but also of nature so that
Canada after the war could become
the foundation of the British En-
pire's industrial structure.
Gigantic Project in Prospect.
Negotiations were described as al
ready nearing completion. between
Canada and the United States, for
creation of the great st. Lawrence
River rapids hydro electric project
which will rival Tennessee Valley
Authority-and between Canadian
officials and financiers and United
States utility and financial leaders
for the development by United
States corporations of the hydro
electric possibilities of the many
fast-rushing streams leading down
into the st. Lawrence from the
North.
In addition Niagara Hudson Corp,
worlds largest producer of electric
power, was said to be examining ex-
listing facilities for transmitting
more industrial power into Canada
from its United States plants.
A goodly part of the British cap
ital outlay in Canada-which may
reach or even exceed $1,000 900 600
will find its way into United States
pockets. they said, since negotiations
are now under way whereby the
British will lend large American
manufacturers money to build plants
in Canada, owned by subsidiary cor
porations.
Where England and France will
get the five billions or so contem-
plated Of course is an interesting
subject for speculation in Wall
Street.
However, these Wall Street sources
said it was believed the two coun-
tries have now in the United States
assets convertible into cash totals
of not less than $4,000, 10000 and
some estimates, including real and
personal property held here by ma
tionals of the two countries, in
crease that total by several times.
May Bring in Bargain Luxuries."
French officials were now said to
be discussing with United States
Government agencies and Wall
Street financiers the possibility of
Immediately bringing into the
United States French luxury prod
ucts in large volume in order to
supply the Christmas trade. If the
plan goes through, French cham
pagnes, gowns, hats, perfumes, laces,
linens and so on might be available
for United States Christmas shop
pers at bargain counter prices.
Financial sources Aaid not only
did the two nations hold off from
quantity buying during the recent
session of Congress for obvious rea-
sons, but also they have-following
advice given them by Wall Street
flnanciers-gauged all activities tc
avoid driving up United States prices
as their hasty buying here did in the
last World War.
BY conducting their buying in 9
way that would prevent runaway
price situation in the United States
the French and British may save
themselves $1,000 900, 900 or more il
the long run. Such policy is alst
tacitly encouraged by the Unitee
States Government, they said, which
\ does not want to see a war boom
with all the disastrous after effect
OF the last wars boom"
In consequence, the two nation
have consulted each other CAREFUL,
before .placinR any orders and al