Evening star., 1939-08-13
Aircraft Contracts
Provide Business
Spur for Week
Ordnance Department
Prepares to Place Orders
Above $100, 100000
BY THOMAS e. FLANAGAN,
AS6QciafRd Press Rusinass IHxitar

<oooSiatco FIesS business writer.
The War Department made 'front.'
page business news this week when
1t speeded its expansion of the Ma
ton s air forces by awarding con-
tracts for more than 1000 aircraft.
The order-termed by Acting Sec
retary Of War johnson the largest
peace-time aircraft outlay-amount-
ed to about $85 ,00O, 900.
Business analysts took time out
from their study of generally i'm
proving trade and industry around
the Nation to recall that the Gov
ernment's rearmament program
promises another boost to private
industry within the next several
weeks.
They cited the fact that within
the near future the Army Ordnance
Department will let contracts
amounting to more than 100000
0OO-for arms and munitions. OF
Importance to business, it was said
said, was the fact that about rs per
cent OF this amount will flow into
the Golfers of private firms.
s16,00O,0 900 'Educa tional" Orders.
These developments stressed the
mounting Importance to business
men OF the defense program as q
factor in trade and industry. Sew
eral weeks ago the Government an.
nounced that some 5000 900 would
be spent for educational" orders
the purpose of which is to help pri-
Vate manufacturers tune up plant
and equipment for production of
munitions.
This week a group of industrial
Leaders joined with Army and Navy
ofhclals to draft plans for mobiliza-
ton OF the Nations economic forces
IN the event of war. Under this
program about 10000 industrial con-
Germs already have been given tenta-
tive wartime assignments.
AS Congress went home. various
wall Street financial experts in
dulged in Interpretation of the de-
feat OF the administrations works
financing bill and the proposed ap-
preparation OF an additional $780,
000,0OO for the United States Hous-
ing Authority. Most agreed that
this meant a definite shift awav
from Government spending Of bor-
ro"ed money as an experiment In
stimulating business recovery.
Hopkins Sees Brisker Business.
FROM Secretary of Commerce Hop
klns came a report that the pace of
business is brisker than a year ago
IN all important lines. The outlook
for the third quarter has improved,
he said, and business policies gen.
orally reflect less hesitancy.
This opinion was borne out by re-
ports from authoritative private
business sources. Some cited i'm
proved sentiment, generally
healthy inventory situation, a rela-
lively sound level of industrial costs
and sizable profit gains scored in
the frst half year. The rising profit
trend was particularly pronounced,
1t was noted, in iron and steel.
building equipment, electrical equip.
ment, the motor industry and mis-
cellaneous manufacturing lines.
Earnings improvement in the rail-
road and utility divisions was some
what less impressive for the first six
months.
Factors carefully weighed by busi-
ness circles at the end of the
week included: The great diversifi-
cation of steel orders and the con-
tinued rise in scrap steel prices.
the width of the gain over 1888 in
sales OF new passenger automobiles.
expanding engineering construction
awards, the rise in idle money in
banks to new high record of about
S4530.O .OO0,O 900 and predictions of a
4,OO0 ,OOO-unit year for the new mo-
tor production season-which would
mean a profit to all makers.
Review of So Cities,
In Its weekly review of business,
in 36 cities, the Commerce DEPART
ment said:
General business activity main.
tanned the recent contra seasonal
gains. While retail trade expert
enced some midsummer slacken-
ing, volume as whole exceeded
that Tor the comparative period last
year. Wholesale markets reflected
increased fall purchasing and en-
larged industrial commitments,
Wholesale markets were generally
more active, with a good volume
OF fall and winter commitments. as
well as recorders in evidence,
though there was little speculative
buying"
Statistics on Industry.
The following statistics on indus
try were issued during the week:
The Associated Press index of in.
dustrial activity, rising for the
fourth consecutive week, gained tn
932, a new high for the wear. This
compared with 92.8 the week previ-
Gus and TAI in the like week a
year ago.
The American Iron and Steel In
stltute reported steel operations I'D
little to 60.l per cent of capacity,
This compared with 1913 the week
before. 49.7 a month ago and 1914 In
the like week of 1898. y
Wards Automotive Repotts said
motor production dipped to 24s75
units from 28,250 the preceding week
and compared with 1890. in the
like week last year. s.
Production of electric power to-
tailed 1925 085 900 kilowatt hours in
the week ended August S. accord
ing to the Edison Electric Institute.
This represented small-and more
than seasonal-downturn from the
previous week. The total was 90 per
cent ahead of the like 1888 week.
The Association of American Rail-
roads reported that carloadings in
the week ended August totaled
661 ,136, a modest rise over the preu-
Gus week and 1872 per cent ahead
of the corresponding week q year
ago.