Evening star., 1939-09-17
Trade Rise Speeded;;
Heavy Industries
Prepare for Rush
Thousands Are Recalled
To Work as Activity
Expdnds Sharply
BY SMITH REAvIs,
Associated Press Financial Writer.

kOdOo, AldNll1lCly dllu AlsCo,
speeded up this week to the accom-
paniment Of a flood of wartime
Enquiries" from belligerents and
neutrals who may have need Of our
goods.
AS result thousands Of men were
recalled to work In the mine pits,
the steel mills, the carriers, the air
plane factories and even in Wall
Street, which, hard hit by months
Of inactivity, had dismissed thou
sands and then found itself short
handed as the stock market sud-
denly came to life and produced
3,0OO,000 and 100000 share days.
Wholesale commodity prices rose
for the fourth straight week, with
the Associated Press daily index OF
IS staples touching new high level
since January IT, 1898. The costs
OF some products sold direct to the
consumer were boosted in anticipa-
ton of higher raw material figures.
Upturn Is Cautious.
The recovery upswing, however,
=" 40 SoNeioho III ITO lldlul d1lu llldlly
brakes were put on to prevent a
runaway. Such persons as President
Daniel Willard of the Baltimore g.
Ohio Railroad warned that recovery
had set in during the summer with
out reference to war and that the
heavy traffic increases of the carriers
was normal continuation Of the
business movement.
President Roosevelt raised the
quota on imports of sugar as unof-
f1clal rationing began and prices
jumped skyward. There was imme-
dlate deflation. He indicated that
while other steps were not contem-
plated at the immediate time, II and
when conditions should arise neces-
stating them, they would be taken.
Attorney General Murphy said
there had been some instances of
profiteering, but they were not wide
spread throughout the country and
that, even with war demand being
created, 1t might be healthy thing
to let normal economic laws work,
for the time being, at least.
Administration officials expressed
pleasure that retail stores were at
tempting to stem unwise buying
rushes and that the wholesalers
and manufacturers were guarding
against premature inventory accu-
mutations.
A. P. Index Advances.
The push of business, however,
sent the Associated Press weekly in
dex of industrial activity to 97.0 per
cent of its 1929-3O average, COM
pared with $50 the preceding week
and 1872 a year ago. 1t was the
highest level since October, 1887.
Steel mill output bounced sharply
higher to 70.2 per cent of capacity,
against 586 the previous period,
which included Labor Day, and 453
at this time in 1888. The mills
watched orders carefully to see that
no unnecessary" business was be-
ing placed, and while orders from
| neutral countries. ordinarily served
by the belligerents, were booked, it
was made plain this country would
take care of its own requirements
first before selling abroad to speed
up its pace. Big inquiries from bel
ligerents were reported, few actual
orders
Despite the apparent rush for
bookings. subsidiaries of the United
States Steel Corp. and a number of
other companies reaffrmed present
prices for the fourth quarter Of the
year and this action was expected to
be followed pretty we'll throughout
the industry. Thus thescost Of the
all-important industrial material
was virtually insured against q rise
until December 81, when conditions
will be reviewed
Pig-iron sales were reported at the
heaviest volume in several years and
steel scrap prices, barometric of the
needs Of the steel industry, hit
high since October, 1887.
Freight Gains Large.
While the weeks railroad freight
carloadings for the country will not
be known until next week. prelim-
mary reports showed the main roads
had achieved fairly large gains over
| the preceding week and that the
margin over year ago would be
widened considerably. In anticipa-
ton of continued increases, the New
York Central, Louisville & Nash
vile. Pennsylvania and Chesapeake
& Ohio and other systems ordered
huge quantities of steel rails and
booked many new freight cars and
other equipment.
In some plants machine tool max
ers increased their output to ca
pacity to take care of the flood Of
orders, many of which came from
abroad after let-down in August.
Wards automotive reports asserted
the automobile industry made the
strongest rise yet recorded in the
fall production season with an In
crease of more than so per cent
over the previous week. New-model
production is just getting under way.
Coal production expanded, and
mines reported receipt of orders
| from England, unusual except at
times of strikes in the British fields.
Some companies were considering
orders from South America. usually
supplied from across the Atlantic.
On the whole, analysts said, in.
quiries in all industries outnum-
bered actual orders from abroad,
but many of them indicated pretty
strongly that bookings would fol-
low. Neutral countries, cut of by
shipping conditions and lack Of
supplies from France, Germany and
Britain, were the principal sources
Of these queries.
Textile Rate Boosted.
The textile trade recorded some
of its best production advances,
with the cotton mills abandoning
their voluntary curtailment pro-
gram, adopted a few months ago,
to catch up with the sharply grow
ing pile of orders. Some mills were
reported to be sold out through
october and November output.