Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-09-04
Industrial Activity
Expected 10 Reach
High Levels
Fall Operations Likely
To Equal or Exceed
1929 Records
BY PAUL d. GESNER,
Associated Press business Writer


NEW YORK, Sept. Fast fall
industrial operations, possibly equal
ling or exceeding the record-break-
ing activity of 1929, were forecast in
trade circles today.
Aircraft. steel, machine tool and
many other heavy industry lines
turning out armament essentials
were expected to step up output to
the highest in history.
Acceleration of factory activity to
new tops, however, was said to de-
pend in part on continued success
full resistance Of Great Britain to
German war attacks, assuring unin-
terrupted flow of British orders here
for airplanes, guns, ammunition,
steel and other war sinews.
A large part of the falls extra
ordinary business, on the other hand,
is anticipated from Army and Navy
orders in connection with the Ma
tons projected $4,000 900, 900 de-
tense program Federal project
likely to carry through regardless of
whether there is war or peace in
Europe.
Major Factors Seen.
Expected to give home business a
push shortly are:
/. Expenditures of around $1,000
100000 annually to train the Nations
first peace-time drafted Army. AL
though CONSUMPTION, approved by the
Senate, has not yet been voted by
the House, the President already
has called up 10000 National Guards
men for active military service. The
Guardsmen are to form the nucleus
around which the draft Army will
be trained.
2. Spending of hundreds of mil
lions for thousands of training and
battle aircraft.
3. A rise in steel operations to pos
sibly new historic high. Mills just
prior to the Labor Day holiday were
speeding along at over 80 per cent
of capacity, and most leaders think
war orders, plus domestic business.
will boost activity above the 94.4 per
cent high of last November before
snow flies.
T. Continued fast automotive &C
tivity. Auto executives anticipate
production in the 1941 model year
will be at least equal to 1910 out
turn. Meantime, the motor vehicle
plants will be widening production of
tanks, aircraft parts, and other goods
needed in connection with national
defense arming.
@Brisk cotton and wooden mill
activity. Already busy turning out
Army and Navy goods, textile mill
men see production demands of the
fall rising to the point where some
civilian orders may have to be de-
layed to make way for essential
Government needs.
Freight Loadings Heavier.
6tHeavier freight loadings. Al
ready touching a new high for the
year at over 761 900 cars in the
latest reported week, freight move
ment is expected to top 100000 cars
weekly by October.
bigger industrial construction.
Federal loans running into the
hundreds of millions already have
been awarded for new plants for
production of ammunition and other
war essentials. Decentralization of
present industry, with the moving
of many plants from highly con-
centrated seaboard industrial areas
to widely scattered inland towns, is
giving added impetus to factory
building.
8Broader retail trade. Increase
in income payments to individuals
to the rate of around $4,000. 900 900
annually, contrasted with s70,070,-
600, 900 in 1889, plus larger farm cash
income are expected to swell retail
sales this fall 10 to 20 per cent above
last year on the average, with sales
in some industrial cities rising IS
to so per cent.
Security markets to date this year
have failed to reflect the improved
domestic business outlook. Investors
as a group have preferred to cling
to idle cash, rather than extend
commitments at a time when the
European war outlook is still un-
certain. Dealings in the New York
Stock Exchange have been extremely
small 1t has been the hope of
brokers that successful resistance
of Britain to German air thrusts
would before long break down buyer
timidity. A rise in share values on
the eve of Labor Day pleased many
in Wall Street.