Evening star., 1940-08-04
Expanding Pay Rolls
Of War Industries
Bring Free Spending
Sales Run Well Ahead
or Lost Yeur in Chain
And Department Stores
BY FRANK MacMILLEN,
Associated Press Business Writer.

ny MANN NIdCpVILLLN,
Associated Press Business Writer.
NEW YORK, Aug. 3.-Consumers
thousands of them added to the
pay rolls of expanding war indus
tries-have been crowding retail
counters in the freest spending
mood in recent years, trade reports
indicated today.
Chain and department store re-
ports for July generally revealed
sales running well ahead OF last
year, in step with the rise in fac
tory and mill production to the
highest summer levels in a decade.
The greatest increases were re-
corded in industrial areas, where
pay rolls have been swollen by the
boom in shipbuilding, aircraft, ma
chine tool and other plants sharing
the hundreds of millions of dollars
being poured into war equipment.
Richmond Among Gamers.
Federal Reserve Board figures
credited the most striking gains in
store sales to Philadelphia, Cleve-
land and Richmond reserve dis
tricts, centers of shipbuilding and
machine-making plants. For the
four weeks ended July 81 depart
ment store sales in these areas were
up 10 to 13 per cent over the like
period last year, compared with
Nationwide gain of per cent. In
the Chicago area, where steel and
other heavy industries likewise are
busy, the increase over last year was
8 per cent.
July retail gains were rated in
trade circles at least the best for
the month since 1887, at the peak
OF fve-year recovery cycle from
the depression lows.
Although most types of merchan-
disc were said to be participating
in the improvement, some of the
widest increases appeared in the
costller items of household equip.
ment, like refrigerators and furni-
ture. Automobile sales, too, were
well ahead of 1899, and in july
topped the June total, contrary to
the usual seasonal trend.
Trade analysts cited Government
estimates of growing employment in
shlpbuilding, aircraft, machine tools.
engine and allied supply industries
as at least part explanation of the
upswing in retail business at indus
trial centers. In shipbuilding. for
instance, employment was esti-
mated at $500 in June. compared
with $1,000 in 1887, the previous
banner year of the recovery from
the 1928 depression depths,
Steel Adds $4,000.
The steel industry in June added
25,OO0 workers to its lists. raising
pay rolls to s77,388, 900 from s61,15o,-
600 in June, 1899, the American Iron
and Steel Institute reported.
Latest trade reports pointed to
continuation of expansion in nav
rolls in steel, construction and other
heavy lines leading the advance.
Elsewhere slowing was visible. The
big motor industry reduced automo-
bile assemblies further while retool-
ing for the shift to 194l models.
Steel operations climbed to a new
high for the year, above 80 per cent
OF capacity, and were close to the
peak set last autumn on the first
wave OF war-stimulated industrial
expansion. United States Steel
Corp.-biggest producer in the in
dustry-announced it was working
above "a per cent of capacity, the
highest since August, 1929.
More Avenues of Employment.
Housing and defense projects
opened more avenues for EMPLOY
ment in construction, one of the
chief absorbers of man power. Resi-
dental building was the busiest in
10 years.
The Associated Press index Of
home construction jumped to 1884
per cent of the 1929-3O level, com.
pared with 995 per cent the pre-
vious week and 916 a year ago, on
basis of latest data.
With steel, residential building
and electric power consumption
more than making up for losses in
automobile, cotton manufacturing
and rail loadings, the Associated
Press weekly index of industrial ac-
t1vity moved up another notch to
the highest since early January.
This gauge of factory activity
stands at 1918 per cent of the 1929
80 level, against 1867 the previous
week and 928 year ago.
Gesture at Upswing.
Wall Street stock and bond mar
kets-inert for weeks-made a ges-
ture at following the upswing of
industrial barometers and corporate
profits, but the move was short
lived.
Brokers said Spectators still were
wary of buying on the war industry
boom because they expected higher
Federal taxes to take much of the
anticipated increase in corporate
earnings and because many feared
a sudden business setback in event
OF a truce between Germany and
England.
Washington efforts to end confu-
sion over tax prospects reached a
stage on the excess profits levy and
the question of writing off war plant
costs, which encouraged financial
quarters to look for considerable
new investment of both private and
Government money to increase
armament facilities.