Evening star., 1939-10-29
Trade Recovery
Still Widens
During Week
Factories Operating
At Top Speed as
Orders Mount
BY SMITH REAVIS,
ted Press Financial Writer.

PAOuSllcO It's IcCOVeTy 1uIIOW ulClc
deeper this week, with the pull of
past orders and many new ones at
the traces.
The tendency, induced by fears
OF higher prices and costs, to pur-
chase for anticipated needs far
ahead leveled off bit, but the stim-
illus of bookings from belligerents
in the European war, as we'll as
neutrals, was sufficient to keep mills
and factories whirring at pretty
close to top speed.
Some industrial plants exceeded
their theoretical capacity by utiliz-
ing old equipment, idle during the
depression years.
AS measured by activity, the
pace was the best since May, 1897.
The Associated Press index, ad-
Justed for seasonal trends, climbed
to 1863 per cent of its 1929-3O aver.
age. compared with 1864 the pre-
ceding week and 81.8 a year ago.
New buying dropped a bit from tho
rate OF the past two months, but
still held at sizable figure.
Heavy Industry Leads.
Heavy industry, represented by
steel mill output. construction, rail-
way and electrical equipment man.
ufacture and the like, was in the
van Of the procession, but con-
sumers' durable goods, such as au.
tomobiles. washing machines, re-
frigerators, furniture, clothing and
shoes, held to the level of recent
weeks. or bettered it. The latter
activity, plus increased farm in
come and general purchasing power.
maintained retail trade we'll above
its mark for the similar 1888 period.
Alarm over possibly higher prices
was allayed to some extent by an
other dip in quotations for COM
modities essential to industry. Low
er were such staples as hides, rub
Der, linseed oil, flour, lard, hogs,
cattle, lambs, wool and sheep. The
wholesale food price index was
cents below its peak in the latter
part Of September, but still % cents
above the figure Immediately pre-
cedlng the outbreak of hostilities.
Dun & Bradstreet's trade review
said determined resistances to
price advances was frequently en-
countered," although the feminine
element showed little particular re-
action to the higher hosiery prices
put into effect recently"
British Place Orders.
First buying from the United
States by the British Government
Purchasing Commission, now in
Canada, was recorded. 1t took 10O,-
600 tons of pig iron, 25,OOO tons of
steel in ingot and finished form,
and many other things needed on
the tight little isle. Its orders were
more restricted than those of the
French government. which was def
nltely in the market for q wide
range of goods.
Bookings increased from neutrals,
especially Japan and Latin Amer.
lea, the former desiring especially
petroleum products, machinery, iron
and steel. Non-fghting nations
We're likewise good customers.
Warnings against war prosperity"
were sounded by leaders in high
places, such as Alfred P. Sloan, jr.
chairman of General Motors Corp.
and E. G. Grace, president of Beth
lehem Steel Corp. President Roose-
velt expressed the belief that every
one wanted stabilized prosperity
with profits but without increased
prices.
A. w. Robertson, chairman of
Westinghouse Electric & Manu-
featuring Co., went bit further and
said that most of this improves
ment IN business is due not to war
or the stimulation of war, but to
sound, steady recovery in the Ma
tons economy" Profits resulting
from conflict are short lived, he
added.
Expansion Planned.
A reflection of the view that re.
covery was here more or less to stay
was seen in plans for manufactur.
ing and other plant expansion, an
nounced during the week. Most
prominent in this were the public
utilities, followed closely by airplane
manufacturers and steelmakers.
Small business" it was reported.
was also stepping out in this direc-
ton. Railroads, doing the heaviest
hauling since 1880, continued to or
der equipment to replace that out
worn or broken down in the lean
depression years.
Bookings from the carriers for
new cars, rails, fastenings and other
equipment were reported daily, and
1t was asserted the amount of steel
involved in programs already under
was in excess of 100000 tons.
Freight carloadings for the week
ended October 81 totaled 861 1873
units, a peak since November, 1890.
Estimates for this week were haul
ings that would be at or near this
figure, which would be against the
long-term seasonal trend. Local
car shortages were noted in some
instances as loadings of miscellane-
GUS freight-indicative of movements
OF production into consumption
coal, coke and iron ore mounted.
These shortages prompted the In
terstate Commerce Commission to
chide the carriers for allowing loaded
coal cars to stand on sidings. Penn
sylvania anthracite operators began
consideration of a proposal to cur.
tail production to prevent accumu-
lation of surplus and to halt price
cutting. The price of hard coal
dipped 81 to IS ton at some points.
Plants Hard Pressed.
The steel industry worked at 90.l
per cent Of theoretical capacity COM
pared with 90.2 per cent the pre-
ceding week, but many obsolete mills
were in operation to achieve that
result. Bookings well into the first
quarter were made and the trade
thought there was very little possi-
bility of much Of a letdown before
the end of the year at least. Every
blast furnace In Alabama was roar
ino