Evening star., 1940-07-22
Money Circles Wait
In Suspense Over
Battle Of England
Vast Economic Fortunes
Seen at Stoke in.
Coming Fighting .-
BY FREDERICK GARDNER,
Associated Press Financial Writer.

Associated Press Financial Writer.
NEW YORK. July 22.-Seeing
vast economic fortunes at stake in
the battle of England, Wall Street
has waited with anxious suspense
for a decision in the test of strength
between the two greatest industrial
powers OF Europe.
The stock market-regarded in
financial circles as the best barom-
eter Of shifting economic currents
has had an air of breathless ex-
pectation the last month.
Since the fall of France share
prices have varied little in contrast
with a strong climb in retail trade
and factory production under the
stimulus of the $4,000, 100000 de-
fense program and British war pur-
chases in this country.
While many factors enter into
stock speculation, most market
commentators seem to agree the
chief cause of the suspense is the
desire of traders to wait for the
threatened Nazi lightning blow
against the British Isles.
Sharp Contrast Seen.
Rarely has the financial district
seen such contrast between stock
market and business trends. Lead
ing industrial indices have risen to
the highest levels for this season
since 1899.
AT time when industry usually
is curtailing for the vacation in
period, payrolls and employment
have been gaining at many indus
trial centers.
Actual or expected increases in
Federal taxes on corporate profits
are blamed in part for the re-
luctance of investors to buy stocks
on the climb in business. But these
are held to be secondary compared
with the prime Importance at
tached to the battle Of England.
The financial district - closely
tied since Colonial days to the
financial system centering at Lon
don-senses that history-making
economic changes may be in store
Tor the world if England goes down.
Chancellor Hitler's speech last
week. forecasting war of ami
hllation unless England came to
terms. kept the attention of the
market focused on the struggle be-
tween two mighty industrial DOW
ers. Even such an historic event
at nome OF the nomination of Pres
ldent Roosevelt for a third term
TOOK back place in Wall Street
comment compared with the en-
phasls placed on the battle of Eng
land and the economic stakes in
volved.
Just as one item of immediate
consequence, business analysts cited
the scope of British war purchases
IN the United States. England's
buying agents were estimated to
nave placed more than $4,000, ,OO0,-
oo0 IN orders here, largely for air.
craft. since the start of the war. .
Trade Future Debated. s.sf
However. from longer term, the
contest was discussed mainly in
light Of what might happen to the
United States foreign trade and
the system OF free exchange of goods
and services on a broad scale in the
world markets built up before to-
talitarlan regimes rose to challenge
old trade concepts.
Taking first place among the
United States foreign markets and
sources of supply have been Eng
land and her dominions and posses.
sions, comprising the British en-
plre trade area. Since the closing
OF the European continent to Amer
lean trade, exports to England, Cam
ada and other empire markets have
assumed an even larger relative
place in Uncle Sans trade.
Also taken into consideration
were the United States big invest
ments in Canada and other Sec
tions Of the empire and the organ
ization of the Western Hemisphere's
economy to supply raw materials
and food to industrial Europe.
There has been a lot of talk in
Wall Street of a few highly self
sufficient economic areas emerging
from the proposed new orders" in
Europe and Asia, including con-
tinental system dominated by Ger