Evening star., 1940-07-07
U. 5. Industry Faces
Busiest Summer
In Ten Years
Huge Defense Orders
And Freer Spending
Assure Activity
BY FRANK MAC MILLEN,
Associated Press Business Writer.

Dy fhANh MAJ MlLLEN,
Associated Press Business Writer.
NEW YORK, July 6.-Riding a
rising tide of war orders and retail
trade, the Nations industry seemed
headed today for the busiest sum-
mer in a decade.
Factories and merchants, business
sources reported, faced a powerful
combination OF huge Government
orders for battle equipment and
freer spending by Mr.. and Mrs.
Average Consumer for clothes,
household goods, automobiles, lux.
ury items.
Trade analysts linked the cheerful
ring of cash registers at the retail
counters directly with the stir Of
heavy industry at Pittsburgh, Chi
cago, Birmingham. Cleveland and
The wartime production rush in air.
craft, shipbuilding, tool and miscel-
laneous machine making plants.
Business reports said employment
in many places was on the upgrade,
with prospects pay rolls would con-
tinue to expand as industry be-
comes more extensively engaged on
the United States proposed slO,-
900 100000 defense program.
A quick rebound in steel and other
plants was forecast for the coming
week following a holiday let-down
over Fourth of July.
Allowing for the usual Independ.
ence Day Interruptions of work, pro.
longed in numerous factories and
Offices through the week end to per-
| NIT workers time off for summer
play, analysts pictured business en-
tering the second half of the year at
the highest production level since
1929.
Index Extends Rise.
Up for the ninth consecutive week
in the recovery from the winter and
early spring slump, the Associated
press index of industrial activity
now stands at 1857 per cent of the
l929-30 level compared with 85.5
year ago 1t has been climbing from
the years low of 93.6 in April.
Hints of leveling off in the pace
of improvement at least for the va
| cation period, were noticeable in
late trade data.
Many businessmen were disposed
to move cautiously pending the
| heralded German smash against
England.
Peace talk in financial circles. at
its height following the capitula-
ton of France. lost much of its
tone of assurance when the Brit
ish Navy pounced on French ships
to prevent them from falling into
Nazi hands.
Business commentators reminded
that successful German blitzkrieg
against the British Isles might be
felt quickly by American industry
because England's war orders have
become an important prop for many
plants here.
British Orders Placed.
British purchasing agents an
nounced the placing of $1,000 900
in additional orders in the United
States. making total of $1,000 000.-
900 since the war began. Most OF
this sum is for aircraft, but the
scope of buying has broadened in
recent weeks, it was indicated. Steel
orders were said to involve about
| 100000 tons.
The magazine Business Week sug-
gested the United States Govern.
ment probably would take over most
British war contracts in event OF
a Nazi victory.
But the ultimate amount of mu-
nitions business would be diminished
by the absence of foreign demand"
the publication added.
And with domestic industry abls
to turn all its attention and re-
sources to domestic defense, there
would be that much less urgency
to build new plants and buy new
equipment
Moreover, American business
men, because of the war in Europe,
have been building up stocks. Once
the end of the war is in sight they'll
change this policy. Businessmen
probably will prefer to let their
stocks run off. So internal orders
within the domestic business struc-
ture would drop"
Tax Plans Feared.
Administration proposals for
steeply graded excess profits taxes
supplemented the German threat
against England in restraining
speculation for the rise in the stock
~, I'll of hrolyorc evp1oiroI Tro dive
in stocks ebbed to about the lowest
of the year as the July Fourth
weekend emptied trading rooms.
On the other hand the improve
ment in business at home appeared
to have stimulated investment de-
mand for bonds. The bond market
advanced leisurely, but consistently,
while stocks idled.
The rise in rail bonds particularly,
brokers said, acknowledged the def
mite turn for the better In that
major industry. With the wheat
crop moving to market in volume,
rail loadings pushed up to the high
est point since last autumn's squirt
in traffic.
1iiIiCdoCu iiduldsc VI Ole anu coal
to meet demands of expanding
heavy industries, notably steel, was
rated the chief force behind the
advance in loadings. The resulting
gain in financial strength enabled
many carriers to plan equipment
purchases and property renovation
in anticipation Of industrial needs
when the United States defense pro-
gram gets into full stride, probably
some time next year.
Time Element Stressed.
A. w. Robertson, chairman OF
Westinghouse Electric g. Manufac-
turing Co., volunteering his COM
pany's services for defense, esti-
mated it would take from to "a
months to- get into mass produce
(See INDUSTRY, Page BID