Evening star., 1939-11-19
Industry Sets
Fastest Pace
In 10 Years
Consumer Buying
Reflects Increased
Employment
BY SMITH REAVIS,

BY SMITH REAVIS,
Associated Press Business Writer.
NEW YORK, Nov. 18- United
States industry whirred at a 10-yeaI
peak production level this week with
here and there a symptom of littls
dampening of the enthusiasm which
pushed it sharply ahead after the
outbreak of the European war.
Mills and factories pounded away
at an accumulation of orders that
will carry them at near-capacity out
put until well into next year.
On the other hand the flood Of
forward orders SO noticeable in Sep
tember and October decreased lit
tie in volume. indicating business,
in many cases, considered itself
bought ahead far enough for the
time being.
Consumer buying, however, held
up well, rejecting the hundreds of
thousands of new jobs created in the
past few months, increased divi-
dends paid by companies whose busi-
ness has rapidly improved since the
turn to an unsWing last spring, and
higher prices given farmers for their
cash crops.
Opinions Differ.
There was general recognition thai
one of the fastest recoveries in the
Nations history had been needed
by the conflict abroad, but leaders
were at variance as to what effect a
peace or armistice might have
T. NJ Girdler, chairman of Repub-
lie Steel Corp. asserted: Il am not
one of those who believe that the
whole or our present increased IN
dustrial activity is due to the war in
Europe and that peace in itself would
bring complete collapse. There is
danger that the dramatic events OF
the war will so absorb the attention
of the American people that their
thoughts will be diverted from do
mestic problems.
THE war has affected our emo
tions and economy temporarily. 1t
has brought no permanent solution
to any of our problems. They are
with us today just as they were last
August"
Another authority, Col Leonard P.
Ayres, economist for the Cleveland
Trust Co., said:
Industrial production has in
creased in volume by nearly 20
per cent in the past two months,
and that is almost the largest two
months increase ever recorded.
There is no room for doubt about
the genuineness of this industrial
revival, but there is real doubt
about the possibility of keeping it
going Apparently there are only
three sources from which it could
receive enough motive power to sus-
tain it's upward progress for any
considerable number of months.
One of them is genuinely big war
orders; another is increased large
scale pump printing; and the third
is an important increase in the num-
ber of new capital issues"
The week was marked, it was re-
ported unofficially, by the placing
of some important" war orders by
England. France and Canada. For
eign business, displaced from its
usual channels by the fighting, con-
tinued to come to these shores.
Sweden, it was declared was a SUBJ
stantial buyer of pig iron as was
Norway; Japan ordered ordnance;
and Brazil bought machinery. Lat
n-American nations increased pur-
chases of goods usually bought from
Germany. Finland, Belgium and
Canada booked many of our raw
and finished products. Italy sought
special steels which she used to OBJ
tain from Germany.
The Associated Press index of in
dustrial activity, measure of the
pace of business, stood at 1901 per
cent of it's 1929-30 average, COM
| pared with 1885 last week and 1913
year ago. 1t was the highest fig
ure since November 1929.
Steel was at the front of the ex-
panded effort. with mills operating
at 93.5 per cent of theoretical ca
pacity to turn out an all-time rec.
ord output for the period of ap-
proximately 1,276,600 tons of ingots.
Last week the production was at
924 per cent and year ago 626 per
cent.
Railroad freight carloadings for
the week ended November IL, de-
clined slightly, but the drop was
far less than is usual at this sea-
son of the year and the total load
ings were the highest for the SINH
lar week since 1880. Electric power
production fell off little and au-
tomobile output, hampered by the
closing down of many Chrysler
plants, gained less than had been
expected. Textile activity was MAIN
tanned at about the level of the
preceding week while lumber pro-
duction, shipments and orders
dropped a bit Bituminous coal
mined was off but still 26 per cent
above the corresponding week last
year.
The volume of retail trade was
slightly reduced from the previous
week, but buying continued on q
broad basis and turnover was ac-
tive. Dun & Bradstreet in its re-
view of business said a number of
stores opened Christmas depart
ments and gift merchandise began
to move in promising quantities"
with purchases largely in the more
expensive brackets.
PROMOTIONS emphasizing special
prices" declared the review, "at-
tracted considerable buyer atten-
ton, and price consciousness was
said to be particularly evident
among these early shoppers
Sales declined among wholesalers
but remained at a considerable ad-
vantage over last year at this time.
Store buyers were declared to be
budgeting for an average increase
over the 1898 Christmas trade of
from 8 to IL per cent.
Prices remained steady in most
retail lines, but wholesale commod-
| ity prices tended downward for the