Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-09-08
War Lifts Pay Rolls,
Trade Advances on
Broad Front
Best Autumn Demund
In Decade Forecast
BY Some Observers
BY FRANK MacMuLLEN,
Press Business Writer,


Associated Press Business Writer.
NEW YORK, Sept. 7.-War-swol-
len factory pay rolls have helped
to give autumn retail and whole
sale business one Of the best starts
in many years, trade reports indi-
Gated today.
The population flow back to the
cities since Labor Day brought with
it big wave of buying at the
Nations retail counters. In textile,
metal and other wholesale mar
kets.
Counting on further stimulus from
mounting arms spending and ex-
pansion of pay rolls in war indus
try, some trade observers forecast
+ the greatest autumn demand for
consumers goods and factory ma
terials in a decade.
The United States defense out
lay and British war purchases in
this country, is was calculated, may
boost the national income to about
$50, 000, 100000 annually, compared
with an estimated current rate Of
about $4,000 100000.
Post-Labor Day business took of
from a high level. Steel, building.
ship construction, electric power,
machine tools were at or near peak
figures since 1929.
Retail trade at industrial CEN
tiers. particularly, had begun to feel
the quickened pace of arms spend
ing, although the $4,000 900 900
United States defense program was
just starting.
Store Sales Up Sharply.
August department store sales in
the New York, Philadelphia, Cleve-
land and Richmond areas ran IL
to Is per cent ahead Of the COM
parable 1889 period. the Federal
Reserve Board reported.
Impressed by the retail figures,
many merchants increased orders to
keep up with the trend Dun &c
Bradstreet said the wholesale buy
Ing appeared TO be mostly geared
to retail demand rather than for
stocking inventory, as in the wild
rush to buy at the start of the war
last September
In textile and metal markets, too,
actual contracts for Government
and industrial needs appeared to
have fastened purchases, in con-
trast with excited speculative buy
ing In basic commodities when
markets resumed after Labor Day
last year to find Europe at war.
Commodity men cited Thursdays
record-breaking copper sales, total
ing lib, los tons, as evidence manu-
facturers were covering anticipated
war material needs. Metal users
were moved to place orders quickly
by hoist in prices of copper and
steel scrap.
Commodities Improve.
Commodity prices generally
showed stiffening trend, making
up some of the loss in the spring
and summer, when the closing Of
European outlets raised fears West
ern Hemisphere surpluses would
overburden the home markets.
But there was none of the spec
tacular boosting of prices witnessed
In the initial war buying scramble
year ago.
Getting into motion after a pro-
longed summer stalemate. stocks
and bonds likewise rose after Labor
Day in a sedate advance. Wall
Street spectators seemed to be ami.
mated by hope England would con-
ttnue to beat OF the Nazi air as
saults. as well as by expectation of
more business gains on the home
front.
The buying squirt in wholesale
and security markets, rather than
the weeks industrial reports, was
taken in financial circles as the best
indicator of how autumn business
winds were blowing.
Labor Day shutdowns cut factory
output after the busiest summer
heavy industry has seen in II years.
Steel men took a "breather," Drop
ping production schedules to s2.s
per cent of capacity from sl.3 the
previous week.
I The American Iron a. Steel In.
stitute estimated August steel pro-
duction topped 5000 900 tons, the
third largest monthly output In his
tory of the industry.
Steel Upturn Expected.
Trade observers looked for a quick
rebound in steel and probab bly, ca
pac1ty operations before the autumn
production drive slackens. Ship
building and military works were
growing sources of metal demand.
In addition, export sales were said
to represent from 20 to Is per cent
OF the business of some producers.
Also headed for higher September
and October operations was the
automobile industry, encouraged to
expand output of 1871 models bv
unusually good summer sales.
The drop in steel was less than
allowed for on a seasonal basis in
the calculation of the Associated
Press weekly index Of industrial ac-
tiv1ty. Nor was a gain in the auto.
mobile component sufficient 20 off,
set losses In cotton manufacturing.
electric power and rail loadings.
The index, consequently, held un-
changed at 1898 per cent Of the
1880 level. The late spring and
summer rise lifted 1t from a Nav
low around %. A year ago it was
$50.
Huge untitled orders in steel, tools,
shipbuilding, aircraft and other in.
dustries getting the bulk of arms
spending were considered strong
support for the rising industrial
curve over the longer term.
| AVIATION, a trade magazine, re.
ported untitled aircraft orders an.
proximated $500, 900 900 and would
be increased by about $500 900 900
more through additional defense or
ders for some 1000 planes.
In preparation for huge new
United States and possibly British
military orders, the industry Is rush
ing construction that in most cases
again will double present plant ca