Evening star., 1940-04-14
u. ). Business Faces
New Adjustments
As War Spreads
Annual Trade Of Nearly
$500, ,000, 900 Threatened
In Scandinavia
BY FRANK MacMILLEN,
Associated Press Business Writer.

| Associated Press Business Writer.
NEW YORK, April 13.-Recently
showing signs Of spring pickup.
American industry today faced the
problem Of making new adjustments
to wartime shifts in commerce as
result Of the blackout of Scandi-
pavia from the trade map.
The German invasion Of Den
mark and Norway blocked shipping
lanes to the northern nations car
rying exports from the United States
amounting to nearly 5000, 900 900 an
nually at the war-expanded trade
rate.
Prospects Uncle Sam may lose
much or all this business if Ger
many consolidates her grip in Nor
way and forces Sweden into the
Nazi economic system drew atten-
ton to the wars far-reaching ef-
fects on industrial trends in this
country.
The immediate reaction In the
market place this week to the swift
German move in the north echoed
family the spectacular stampede of
war buying at the start of the strug-
gle last September. Demand for
metals and textiles increased. Some
commodity prices advanced. Bond
prices fell.
After the first buying furry, how.
ever, uncertainty ruled in security
markets as financial circles pom
dered whether increased war trade
with the allies would offset losses
Of business with Scandinavia. The
fighting in Norway, casting doubt
on her future status, added to the
confusion.
Two Trends Apparent.
Heavy buying in paper, meat
packing and shipping shares gave
these groups independent strength
in the stock lists and emphasized
two major industrial trends in the
United States emerging from the
war:
Cd Relative rapid expansion In
certain war industries, notably air
craft manufacturing, shipping and
metals, and rise of exports in these
lines.
CD New impetus to development
of self-sufficiency in some indus
tries, recalling the World War stim-
ulus to growth of home industries,
as in chemicals and shipbuilding.
Norway, Sweden and Finland
have been big suppliers of wood
pulp and paper to this country. I'M
ports of wood pulp from these
sources amounted to IA per cent of
domestic consumption last year and
64 per cent of all pulp purchases
abroad.
Many Wall Streeters, therefore,
concluded the severing of trade
lines into Scandinavia would open
opportunity for further develop
ment of pulp sources in the United
States, particularly in the South's
growing industrial sectors and in
Canada This belief was evident in
the scramble for shares Of paper
and pulp companies.
Shipping men studied possibilities
that the United States, now In a
shipbuilding boom, may be called
upon the replace inthe worlds mar
kets many cargo carriers from the
huge Scandinavian merchant fleets,
totaling more than 1000 900 tons.
Denmark was England's break
fast larder," one of the chief sellers
of foods. in the European market.
Exporters saw chance the allies
might turn to Canada and the
United States for some of the bacon,
butter and other foods formerly
obtained from Scandinavian sources.
Other Purchases Curbed.
On the other hand, trade authori-
ties pointed out, the allies have been
curtailing purchases of farm prod
ucts in order to conserve dollar ex.
change for aircraft, tools, metals,
trucks.
This aspect of war trade was
shown in an analysis of trends in
the first five months of the struggle
by the National Foreign Trade Coun-
Gil. Gains ranging from 81 to more
than 300 per cent were recorded
in exports of iron and steel. aircraft,
copper, aluminium and industrial
chemicals compare with the like
1889 period.
Showing losses up to 10 per cent
were exports of tobacco. wheat,
fruits, passenger automobiles.
limiting speed-up of allied war
purchases because of the spread Of
the fighting to the north were
Washington reports that British and
French agents had accepted Amer
ican terms for large additional plane
contracts.
Industry Still Lays.
Most industrial barometers con.
tinued to drag this week, showing
Iess-than-usual gains for the sea.
son. After modest upturn tho
previous week, the first advance fol-
lowing II weeks of decline, the As.
sociated Press index of industrial
activity resumed its fall.
The index now stands at e5.2
per cent of the 1929-30 level, COM
pared with 96.5 the previous week
and 1854 year ago. From q 10
year peak around 112 in December,
it has dropped back close to the
pre-war level.
Despite the increase its exports
estimated at Is per cent of total
shipments lately, the steel industry
renewed its struggle for volume to
keep big mechanical sheet mills
going. Prices on sheets, used mostly
by automobile makers, were cut $4
ton, the first important weak spot
in the steel price lists since the
autumn buying splurge.
Trade circles 6n,1hfad u,h A. = 49, 49,
recurrence of price-cutting on rolled
products would lead to a general
slash in steel prices, considering
Improvement In metal buying on the
news Europe's war had gone into q
heavy fighting stage. Brisk export
demand for copper was observed and
prices tended to stif1en.
Many analysts concluded the war
news would impel manufacturers
and dealers to expand forward h,1v-