Evening star., 1939-09-13
Relaxing Of Curbs
On Production Gives
Spur 10 Industry
Analysts Soy
Rush of Buying
Will Boost Employment
BY FREDERICK GARDNER,
Associated Press Financial Writer.

wide movement to meet war needs
by relaxing depression curbs on
mechanized industrys vast capacity
to produce gave American business
managers a cue today in planning
work for idle men and dollars.
The surge of war buying in this
country and preparations for the
struggle in Europe, commodity OBJ
servers noted, have brought the most
sweeping reversal in production re-
strictions since controls were de-
vised to halt the depression accu-
mutation of surpluses
Quick in the wake of the war
boom have come the raising of
world quotas on tin and rubber, the
suspension of sugar quotas by the
United States, boost in the output
for the East Texas oil field and a
dash to gather iron ore for the steel
industry before the Great Lakes
shipping season ends.
More Jobs to Open.
Experienced business analysts said
these indications clearly pointed to
more jobs for the United States
estimated 100000 unemployed.
But distinct note of caution was
evident in some quarters. Mining
circles said the stampede to buy in
copper and other non-ferrous metals
at least represented largely haste
to get orders on the books for pro-
lection against higher prices in event
OF real wartime initiation in prices
such as occurred in the World War
years.
The spectacular wave of advance
! orders, some mining executives de-
clared, probably will not be felt
at the production end until actual
consumption increases and indus
trial managers are convinced the
buying is more than a temporary
flash in the pan, partly caused by
speculation for higher prices.
Nevertheless. the huge orders
placed for textiles, metals and other
basic materials have stirred cho-
rus OF industrial expansion forecasts
in financial circles.
Nuoh dNtoIy IMPROVEMENTS.
Combined with the forward buying
In sensitive commodity and whole
sale markets which usually signal
business upturns, it was pointed out,
have been signs of quickening in
expenditures for factory improve
ments, machinery and rail equip
ment. The move of the United
States Maritime Commission to
speed its shipbuilding program also
was cited.
Carried far enough, expansion in
these heavy industrial lines would
represent the improvement in metal
consumption which the mining ex-
ecutlves insisted must form the
basis Of any worthwhile upturn IN
production, jobs and pay rolls.
AS illustration of the complexities
OF the war situation for domestic in
dustry, mining official cited copper
Sales prospects for copper abroad it
was explained, have been dimmed by
the fixing of metal prices in Eng
land, the closing of the Central
European market and shipping
hazards.
Rely on Empire.
England and France, it was said.
apparently are relying on sources in
the British Empire to supply a good
part of their immediate war de-
| mands for basic industrial materials,
especially copper. from the prolific
Canadian and African mines devel-
oped since the last war.
On the home front. business OBJ
servers reminded, industry had been
showing distinctly upward trend
for three months before hostilities
III Europe began.
Some veteran commodity men at
trlbuted the trenzied war buying
wave partly to recognition in busi-
ness circles that stocks of certain
staples in the United States we're
smaller than normal" Foreign
curbS on shipments. uncertainty
over war and sub-normal industrial
activity here all had tended to cur
tail stocks, they said
Stocks on Hand.
The New York Commodity Ex-
change reported the following stocks
in the United States, based on con-
sumption for three months prior to
the date of the figures:
No. Months
Supply.
Hides, leather r-------------- $50