Evening star., 1939-10-08
Fast Industrial
Revival Boosts
Buying Power
Employment Expands,
Low Inventories
Are Restocked
BY SMITH REAVIS,
Associated Press Financial Writer.

working on ear-passenRer
schedule in continuation of its
three months recovery.
| AS result, employment and con-
sumer buying power were lifted and
depleted inventories were restocked.
In actual productive activity the
period was the best for October since
1929 and at the highest rate In
more than two years.
The heavy industries again were
to the fore. Buying, which was large
in the first days of the European
conflict, subsidized to an extent, but
steel mills, factories, cotton and
woolen textile plants and rail equip.
ment manufacturers found them
selves with such an avalanche of
orders that speeding up was neces-
sary.
In nearly every case, it was re.
ported in the trade, the steelmakers
were booked solidly through to the
END OF the year and orders were
being taken for the first quarter of
1910. Machine tool factories, with
substantial portion of their sales
destined for foreign countries, were
operating on a basis of IL weeks
ahead for deliveries instead of the
usual six to eight.
Ordered in Advance,
New orders for finished cotton
goods were not being accepted for
shipment before January and in
dustrlal fabrics and bags were sold
up to February.
railroads, anticipating further in
creases in freight hauling. were re.
pairing damaged equipment as rap
IDLY as possible and were pressing
Tor delivery of many millions of dol
lars worth of new equipment.
Estimates were that nearly / 900 900
tons of steel were involved in book.
lngs already made.
AS hasty buying dried up. the
tendency OF commodity prices to
skyrocket leveled off. While they
gained on the week they were on
the average under those for the
first week of hostilities. Prices Of
semi-flnished and finished goods
were advanced in some instances.
but the movement in mAny instances
was not passed on to the consumer,
Whether or not the accelerated
pace Of recovery was due to the war
or was a normal continuation of
the upswing that carried through
July and August, most authorities
agreed the stimulus was largely from
the domestic market. Export orders,
while they played big part for the
machine tool makers and a few
others, had only small part in ths
upturn. In steel, 1t was estimated
that about 10 per cent of production
was intended for shipment abroad,
and there were again denials that
any bookings had come in from
belligerents.
Such orders were expected soon,
however.
Regarded as Carryover.
In support of the thesis that q
major portion of the industrial ex-
pansion was carryover from the
summer, it was pointed out the
Associated Press index of industrial
:
a row to its highest level since the
first of June, 1887. 1t stood at 1863
per cent of the 1929 80 average, COM
pared with 1048 the preceding
period and 1910 a year ago.
Another important indicator was
the Federal Reserve Boards indus
trial production index which rose
during September to ITO per cent of
the 1923-25 average and was even
higher at the month end. The De-
partment of Commerce reported
mine and factory output continued
to advance, but consumption did
not show similar rise.
This was taken to indicate that
inventories were being built up after
many months of hand-to-mouth
buying. In the steel trade it was
estimated about Is per cent of the
new production was going to build
up low stocks against future de-
mand.
About the same percentage was
figured in other industries. In
creaSing commercial bank loans
were considered a sign that more
supplies were being carried.
Steel production was at 87.5 per
cent of capacity this week against
1913 the preceding period and 47D
a week ago. The capacity figure
given is theoretical, and steel men
said the trade was really about at
practical capacity.
Auto Output Climbs.
Orders were not pouring in at
the rate of last week, but as one
analyst said there's no point in
ordering for next year until you
know the prices that will prevail
then"
| Automobile manufacturers, work.
ing at high speed on pleasing sales
reports, advanced their production
during the week to 76,095 units,
compared with 62,755 last week and
33,165 year ago.
Electric power production for the
third week in succession registered
q record peak. Cotton mill activity
was boosted. Residential building
increased smartly. For the week
ended September 30 railroad freight
carloadings rose to 834,640 cars,
exceeded only twice in the last nine
years. Lumber production dropped
slightly but new orders were the
heaviest for any week since 1880.
Bituminous coal output was higher
and the demand for anthracite was
50 great, price advances were made.
Retail trade, Dun & Bradstreet
said in its weekly survey, was mod
erately higher, with the country's
improvement over 1898 running be-
tween and IA per cent. Midwest
ern cities had the largest relative
boost.
Wholesale markets." the survey
said, had q comparatively quiet
week, with turnover the smallest
since the opening of hostilities
abroad. Forward orders dwindled as
! u.