Evening star., 1940-09-29
Trade Expansion
Widened by Big
Arms Orders
Further Disruption
Of Export Channels
Indicated by Pact
BY FRANK MACMILLEN,
Associated Press Financial Writer.

WlOeIleu lIle ClIClc VI lIluuoCildl ch
pansion today while business Lead
ers studied the prospects for fur
ther disruption of foreign trade as
a result of the hookup between the
axis powers and Japan.
Weekly economic indiceS again
portrayed the Nations heavy in
dustry climbing vigorously to new
wartime peaks in the drive to equip
war plants and speed the output of
existing facilities.
Increasing employment and pay
rolls at military and industrial CEN
ters sent the defense millions roll
ing along retail trade counters.
Most indices. including the weekly
Associated Press index of indus
trial activity rated factory produc-
ton the highest for this season
since 1929.
At first glance. many commodity
| traders and exporters feared the
triple alliance would bring addi-
tional trade realignments and
| shrinkage in Far East outlets for
certain basic products, notably
( metals and cotton.
! With the closing of the big con-
| tinental market in Europe to farm
exports, Japan and England re-
manned as the chief takers of cot
ton, long Uncle Sans No. export.
/ Trouble in the Pacific, it was noted,
/ threatened to curtail to still lower
/ figures the already shrunken export
/ trade in agricultural staples and
/ industrial raw materials.
Losses to Be Offset.
| Nevertheless. Englands accelerat-
ing demand for war supplies was
expected to overshadow largely
losses elsewhere. The bulk of the
August gain in exports, some an
alysts said, probably was accounted
for by heavier arms shipments to
England. Total exports for the
month were nearly 500, 100000 over
the August, 1889, figure in spite of
the blackout of shipments to con-
tinental Europe.
Chances United States supply
lines to the Far East might be i'm
periled by Japan's adherence to the
axis lineup started minor buying
wave in rubber. silk and wool, ma
jor products obtained through the
Pacific commercial lanes.
Demand for commodities, how
ever, slackened at the week end to-
day and many spectators weTa
content to await clarification OF
this countrys position. An eXcep-
tion was the wool market, where
contracts for future delivery jumped
about 2 to more than s cents
pound.
Allaying apprehension was the
steady accumulation of strategic re-
serves of rubber, tin and other ma
terials and the development of syn
thetic substitutes for such imports
as rubber and silk.
Meanwhile, the tendency Of the
huge defense program to take up
business slack in various directions
was marked by fresh industrial
gains Railroads. entering what
some rail executives expected would
be the heaviest traffic period in
decade, placed the largest orders
for rolling equipment since last
autumn.
Growing capital expenditures for
private and Government accounts
were translated into demand for
steel, copper, scrap and other vi
tails of machine industry. Steel
operations slowed a trifle this week
but the industry geared its plants
to assumptions of prolonged phase
of high production.
Towering backlogs of untitled or
derS in aircraft, shipbuilding, en-
gines, tools, munitions and other
lines working for United States and
British defens, continued to rise
with the flow of orders from WASH
ington. Aircraft orders were re-
ported to have passed 50 1000, 900 .000
Producers worked against time to
bring new Army centers and manu-
featuring plants into being. En-
gineering News-Record, trade
publication. said heavy construction
awards for the second week ran
above $l000O0O00 and were more
than double the comparable 1889
figure Defense awards were the
main factor in hosting construc-
ton figures. along with increased
private outlay for plant improve
ments and extentions.
Citing the Governments August
employment report. analysts said
factory pay rolls seemed headed for
record figures. although growth of
the working population in the last
decade still left millions to be alb
sorbed into private industry. The
United States Labor Department re-
ported 100000 were added to non-
] farm pay rolls in August, making
a gain of 100000, compared with
August, 1899.
Store Sales Climb.
Latest Federal Reserve depart
ment store sales data showed retail
turnover holding a lead of about
10 per cent over last year. The
widest year-to-year gains in recent
weeks have been registered in North
/ Central and Southeastern centers
sharing the boom in arms industry
and the influx of workers and Army
men into defense activity.
Good retail demand was felt down
the line in automobile assembly
plants, textile mills and other fac
tories catering to the needs of the
man on the street. The motor in
dustry raised its assemblies of 1941
machines to $500 units, according
to trade estimates, compared with
81 1865 the previous week and 1890
in the like 1899 week.
There were a few signs, as in
stiffening of metal prices and pres
sure on textile mills for delivery of
Army goods, that the defense pro-
gram was approaching a test Of
business ability to handle both civil
ian and military orders without de-
lay. But the general feeling in