Evening star., 1940-10-20
Activity Boosted
By Arms Plant
Contracts
U.S.. Industry Heading
Into One of Busiest
Winters in History
By FRANK MacMILLEN,
Associated Press Financial Writer.


buttressed by nearly a quarter of a
billion dollars record total of heavy
construction contracts this week,
mostly for war plants. industry ap-
peared to be headed today into one
of the busiest winters in the Ma
tons history.
Observers believed this rush to
get defense construction under way.
with much more to come, was the
first ripple of an widening cir
Gle of developments which promised
to spread through business and in
dustry and to cut unemployment b.
millions.
AS the construction phase of the
defense effort was ushered in. ii pre-
saged more men on pay rolls of the
KEY building industry. one of the
chief economic devastated areas
| inherited from the post 1929 de-
preston.
1t also foreshadoWed many thou
sands more jobs to workers as the
new and existing plants. next year,
swing finally into production of
planes. tanks. light and heavy met
ais, chemicals and other products OF
a wartime economy.
Little LuII Expected.
The rush to house a growing mill
tary force before the SHOWS fly. and
to provide its industrial sineVs,
made it almost certain. building au-
thorities pointed out. that this i'm
portant sector would see little of
the usual winter quiet.
Comparing the physical quantity
of goods to be produced with the
boom winter of l928-29. most OBJ
servers thought the earlier record
period would be eclipsed. although
improved machines would allow it
to be done with fewer workers.
Even so, the Bureau of Aericul-
tural Economics, pointing out that
defense spending in l94l is to be
$1,000 .000.00 greater than this year.
estimated a net reduction of 2.500.-
900 in the unemployed total next
year.
Further contributing TO the ludg-
ment of business analysts that the
full force of the arms drive was yet
TO be felt were reports from many
business fronts that forward buying
| to protect normal civilian needs
later still far overbalanced actual
arms business.
Iron Age said this week Orders
for national defense projects are
increasing. but they still form only
a small part of aggregate business,
though the indirect influence of the
: defense program on orders for nom
military manufacture is difficult to
measure Although British orders
for steel have recently slumped. the
difference has been more than made
up by much more active buying
by nearly all consuming industries
Wholesalers Rushed.
| What was true of the steel in
dustry appeared also to be the case
elsewhere. While retail trade, yet
to feel the full force of growing
pay rolls. showed only mild improve
ment from the previous week. whole
sale markets were said to be busy.
With building rapidly assuming
the character of a keystone in the
/ developing business structure. OBJ
+ servers noted home construction. for
many months in a boom of its own,
was continuing at swift pace.
/ Whether or not it could hold in
/ definitely at these high levels as
labor and materials were increas-
ingly absorbed by arms needs,
building men said, appeared an
! open question. 1t was noted that
building costs. especially lumber
in demand for cantonments-were
gested that this might later re-
strain home builders.
Warnings continued to flow from
influential quarters of the danger
of precipitous price rises as re-
suit of the armament plans. Defense
Commissioner William S. Knudsen
cautioned an audience in Detroit,
where much defense work will CEN
ter. that an upward spiral of prices
would work to the detriment of
industry and public. The Bureau Of
Agricultural Economies thought run
away prices unlikely now. but sug-
gested 1941 would see a material
rise in the general level of whole
sale quotations.
Auto Show Opened.
AS the Associated Press index of
industrial activity this week jumped
to the highest point since the
autumn of 1929. another important
section of industry got ready for a
busy winter
The 1941 auto models were for
mally launched at the National
Automobile Show. and production
experts for the industry reported
plans laid for sales 10 per ceH
greater than this year.
If their calculations prove cor
rect, it would make the new model
season third best in the industry's
history.
With the Government reported
in trade quarters nibbling at s175.-
900 900 truck order, and with auto
plants Offering to do some tool and
die work for swamped plane-makers.
observers thought dollar volume of
the industry might approach record
levels.