Evening star., 1939-11-12
Trade Boosted
byFast Tempo
AtFactoriies
Best Yeor-to-Yeor
Increase for 1899
Shown in Week
BY SMITH REAvIS,
Press Financial Writer,

since November, 1929. Orders on
their books insured virtual capacity
operations for three to six months
If deliveries are to be made as
promised.
While the improvement continued
in the heavy industries, laggard dur
ing the years after the big bust
of 1929 and the depths of 1882,
retail trade, measure of the peoples
buying power. perked up to such an
extent that Dun & Bradstreet re-
ported the year-to-year improve
ment was the best for any week this
year.
In the meantime businessmen and
bankers considered how much the
accelerated hum of industry was
due to purely war causes and there
fore subject to stoppage should
peace or an armistics in the conflict
abroad suddenly intervene. In many
quarters 1t was felt the movement
was a continuation .of the recovery
from the recession, started last May,
which was boosted a little, arti-
ficially, by rush to buy ahead
In the early days of September, but
which later settled down to sup
plying the country's needs.
Old Customers Put First.
While orders for goods poured in
from countries deprived by the war
and shipping conditions Of their
usual sources of supply, they were
not always accepted. Wall Street
observers said the ordinary business
man saw no reason why his normal
customers at home should lack quick
deliveries to satisfy what might turn
out to be temporary demand from
abroad,
AS far as could be determined
purely war purchases from the fight
ing nations did not come in very
heavily. France ordered nearly a
million dollars worth of sub-machine
guns, and horses and mules for her
cavalry and artillery The bellig-
erents likewise bought trucks and
their inquiries to the manufacturers
indicated about what might be ex-
pected later. A considerable amount
OF ammunition Is expected to be
booked IN this country at an early
date, but later Canada Is expected
to furnish the bulk of the British
supply, at least. Machine tools
army blankets, certain types of
woolen goods and hospital supplies
were In most demand In the latter
field. it was said, orders have piled
up sufficiently to keep factories at
work for 80 months unless facilities
are expanded.
Prices remained within control as
for the fifth successive week the
Associated Press index of commod-
ity prices showed decline. There
were threats of increased costs in
certain lines, however, and farmers
benefited from boosts in wheat and
cotton.
Inventories Not Excessive.
While much of the weeks factory
production went into inventories, it
was recalled stocks were lower than
normal when the upturn started
and many analysts said the situation
had not yet become topheavy.
In this connection Standard Sta.
tlstlcs Co., in its review of the busi-
ness prospect, said:
Consumer demand is rising and
the prospective consumption trend
is upward. Public purchasing power
this month will be at new monthly
peak with the single exception Of
June, 1896 (when the soldiers. bonus
was distributeO. Thus goods should
move from producers and distribu-
tors stockrooms at a high rate over
the next few months.
This, in conjunction with the
cautious forward buying now being
practiced, should relieve the inven-
tory situation"
The whir of mills and factories
may be measured by the Associated
Press index Of industrial activity.
which stood at 1886 per cent of the
l92S-30 average, compared with 1O7 S
the preceding week and 86.5 a year
ago. The figure was exactly that of
the May, 1887 level, which was the
highest since November, 1923. More
1nan seasonal increases in automobile
output and cotton textile production
were heavy contributing factors. as
was the virtually capacity turning
out OF ingots by the steel mills.
Power Output Dips.
Electric power production tapered
OH from the record peak Of the pre-
ceding week, but the dip was small,
\ Lumber operations dropped slightly,
as did bituminous coal production
and the manufacture of flour. paper
and apparel.
Steel operations continued at the
high rate that has persisted since
early September. Iron Age placed
the ingot rate at SO per cent of
theoretical capacity, which is really
about the highest practical operat-
Ing rate except through employment
OF outmoded equipment.
THE outstanding factor in the
present steel situation" the periodi-
cal said, "is the continued urgent
demand for the hurrying Of ship
ments. 80 Such an urgent need for
steel is at variance with commonly
accepted beliefs that there is q reck-
less building up Of inventories"
Contributing to the steel com.
pany's prosperity was renewed or.
dering Of railway equipment, some
Of 1t destined for Portugal, Argen-
tina and Brazil. The carriers, faced
with trafac congestion, demanded
new cars, particularly Of special
types.
Freight carloadings for the week
ended November dipped . little,
In line with the usual trend at this
season Of the year, but the fall was
slight. Rail employment, 1t was
estimated. reached the million mark
for the first time In two years.
The electrical equipment industry
(see TRADE, Page Esq