The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1940-06-17
BY LOUIS NJ. SCHNEIDER

NEW 1Onh - mlsglNlnss over
what business would do If the war
came to an abrupt end are now
overshadowed by thoughts of what
about business prospects because
of our war-preparedness program ?
The National Association of Pur-
chasing Agents urges autumn buy
ing caution in face of the knowl-
edge that domestic arms spending
this year will double that of last
year. Retail merchants are act
ing accordingly.
In all circles its agreed that in
dustrial activity Will benefit
smartly because Of the war-pre-
paredness drive. But there's some
doubt as to retail sales volume. II
has yet to be seen how John Public
will benefit.
What is behind the war-prepar-
edness misgivings is explained by
Fred J. Heaslip, purchasing agent
of Fairbanks, Morse & Co. He
finds that despite war and threats
OF higher prices there's no real
demand for coal, steel, copper or
oil, and even wheat is down in
price with famine looming abroad
Cautious-Corporate and bank
ing executives confirm your cor
respondents disclosure of Tuesday
that the federal reserve board
production index for June will
reach the 10 figure. 1t will COM
pare with los for May. But they
realize the sharp increase will be
due mostly to better figures for
the steel industry and war ma
terial suppliers. Therell be no
general business optimism until
payrolls show sharp increase and
unemployment totals show a
marked decline.
Supplies US partnership
with Germany spells out decline
in American scrap steel shipments
to that country and a larger de-
mand for western hemisphere oil
by the Allies.
Near East sources have been
supplying the Allies with about
200, 900 barrels of oil daily. That
volume of flow will now come from
North and South America-if the
Allies supply the tankers.
Italy has a 1859 annual
average import of about $50, 900
tons of American scrap steel. For
the first four months of 1910 the
volume was 205,0O0 tons. Some
5000 tons of scrap steel already
ordered is ready to 60 If Italy will
supply freighters.
New Plants - The Automobile
Manufacturer association pune
lures the general impression that
auto makers are set to do war
work. The association says few
plants are set to produce anything
but autos. The word is that 1t
would be best to build new plants
to take care of armament orders
since civilian needs can't be neg
lected. New facilities, say the as
ISOLATION, can be made ready in
less than rs working days-about
three months.
Doubleday - Out OF regular
army supplies, the United States
government sold to the allies last
week $4,000 Browning machine
guns, $50 British 75MM artillery
pieces, 100000 Enfield rifles and
5000 Stokes trench mortars.
Government regulations don't
allow the army TO sell to foreign
countries. To overcome this OBJ.
stacle, the baseball double-play was
used. The supplies were sold to
private interests. who in turn re-
sold to the allies-for which they
received brokerage commission
Reports Are That: Kroger Gro
Gerry & Baking management to
continue liberal dividend policy
same heard Of Nehi Corporation
management; sells Royal Crown
Soft-Drink Syrup General Mo-
tors shares meet scale-down buy.
ing: company active in numerous
industries to benefit from national
defense program Loft insiders
not disappointed by action OF
shares pricewise; look for in
creased returns from Pepsi-Cols
share holdings.