Evening star., 1939-09-24
Foreign War Orders
Not Materializinu,
Financiers Say
Purchases Here Not
increased. Although
Cash Is Available

increased. Although
Cash Is Available
~ the Associated Press.
NEW YORK, Sept. 23.-The ex-
pected flood of allied purchasing or
ders has not yet materialized, lead
Ing financial sources said today.
A sizable business upturn now
Under way was stimulated in great
part, they said, by expectation of
such orders.
England and France, however,
have not yet placed orders in the
United States for legally permissible
essential war supplies on q scale in
dicating anticipation Of prolonged
war, they said.
Although those countries have
at hand billions of dollars Of cash,
convertible securities and legally
permissible commercial credit, and
can under present laws take out Of
the country practically unlimited
supplies Of such war essentials as
foodstuffs, clothing, steel and SO
on, their purchases here have not
materially increased since the out
break Of war, these sources said.
While this seeming delay has
puzzled some leading financiers, they
pointed out there might be logical
explanations for the phenomenon.
Afraid of Opposition.
One such explanation offered was
that England and France did not
want to stir up isolationist opposi-
ton at time when Congress would
be debating on the question of
whether we should sell munitions
of war.
Those who offered this explana-
ton said that the Federal admin
istration has not yet taken the
broad steps toward mobilization of
industry and manpower which pre-
sumably would follow a. conviction
that we are menaced by war, and
that this delay might be due to an
equal distaste for stirring up con-
RreSSiOnal hornets.
Allied purchases of machinery and
some raw materials have been on a
fairly extensive basis since the first
of the year. Upon the Presidents
proclamation of our neutrality,
parallel purchases of such NUM-
tions of war as airplanes ceased, but
according to well-informed financial
quarters, there was no corresponding
increase in purchases OF non-pro-
hibited essential war supplies.
While England was last summer
reported to have acquired large
stores of essential commodities
enough for six months in some cate
gories-it was generally assumed
here that England and France would,
If they expected long war, as an
nounced, add to these stores as
quickly as possible.
Powers Made Inquiries.
The outbreak of the war was in
deed followed Immediately by in
quiries from England and France on
q vast, wartime scale.
These inquiries were reliably re-
ported to be of enormous" propor-
tions. One steel company said the
English inquiries constituted one of
the largest single potential orders
ever received.
However, as weeks passed, the
orders were not forthcoming. Many
Of the inquiries were at price levels
prevailing in the buyers market" of
early last summer, and there was
no apparent disposition to move up
to the levels of the present sellers
market.
Nor has there been marked dis
position to hurry in the setting up
and functioning of British and
French purchasing commissions. they
said. Since weeks and possibly
months might elapse between the
placing of orders by such commits
sions and the delivery of supplies in
European ports, the delay has caused
some further speculation.
One episode cited was the re-
ported informal proposal weeks ago
that England and France buy for
cash the huge stores of surplus COM
modities bought by and taken over
by the government. in its aid to agri-
cultural districts. The proposal was
that the allied countries buy these
supplies at what the government
paid for them. Plenty Of available
cash was ready here for the purpose,
without impairing further credit.
Presumably it would have helped the
United States Government to wipe
out losses entailed by its agricultural
program. However, it was said, the
project has been only rather list
bessly discussed.
u. S. Defense Program Lays.
In our own defense program a
number of expected steps have not
materialized, they said. It had been
reported the Reconstruction Finance
Corp. was going to assist railroads
needing such assistance to bring
their roadbeds and rolling stock to
D minimum preparedness" basis
within a given deadline. However,
J check of rail sources available
here indicated no such general pro-
kram had been undertaken, although
considerable spending along this
line is now being done by solvent
carriers.
Similarly, defense elimination of
electric utility "bottlenecks" re-
putedly has dwindled to the ex-
pected spending of a few millions
NU-HAIR .THERAPY
c IT,