Evening star., 1940-06-16
u. ). Business Centers
Attention on Home
Defense Drive
CuImer War Attitude
Apparent as OfficioIs
Speed Program
BY FRANK MacMILLEN,
Press Business Writer.

cover of the exciting events in Eu-
rope, change occurred this week
in business and speculative psychol-
ogy which may mark turning point
in the American chapter of the eco
nomic history of the world struggle.
While political decisions Of the
gravest importance for the Ameri-
can people still hung in the balance,
there was growing evidence that
Wall Street and the industrial COM
munity had turned their primary
thoughts and energy to the home
front, where a $4,000 100000 arms
program dominated the scene.
In security markets, where every
reverse of the Allied cause for
months had been the signal for
nervous selling, the fall of Paris and
the officially admitted desperate
plight of the French defense was
met with calm price strength in all
sections of the list.
Among businessmen was increas-
ing preoccupation with the problems
of the defense program and frank
admission in some quarters that
industry had underrated the speed
with which Washington was pre-
pared to move in creating the
sineWs of war.
EXPANSION Continues
Industrial activity. led again bv
steel and the heavy industries, con-
tinued to climb, and the retail field
began to show signs of starting to
catch up with industry's climb. as
higher pay rolls, greater employment
and an increased flow found its way
to merchants hands.
Another token that the war had
lost some Of its power to shock the
American consumer was the con-
tlnued rise in home building, which
in May reached the greatest monthly
total since the summer of 1929, &C
cording to F. w. Dodge Corp, build
ing statisticians.
Factory wheels were turning at a
rate equal to that of February,
which was relatively active period
Some observers thought that with
the momentum afforded by the huge
arms spending here for American
! and Allied account it would soon
reach the near-boom level of late
fall after the start of hostilities.
The Associated Press average for
the latest week stood at 1921, while
the peak in mid-December was
1121.
Steel operations started the week
at 84.6 per cent of theoretical ca
pacity. and trade observers thought
1t was rapidly approaching its prac-
tlcal maximum, which most set in
the neighborhood of 80 per cent.
Everybody in a Hurry.
/ A factor in growing steel orders,
as we'll as in many other raw and
seml-flnlshed material lines, was the
fear many manufacturers shared
that priority granted to Government
arms orders might make it difficult
/ TO get deliveries for less essential
products. AS one steel authority
SAID: Everybody is in a hurry to
get his name on the books
4 Inc sWlftneSS of WASHINGTON s
moves into position as No. Gus
toner convinced many business OBJ
servers that the Presidents in
dustrial advisory group, headed by
Edward R. Stettinious, lr., and Will
liam S. Knudsen, had been given a
free hand and orders to shoot the
works
Some of the quick-paced buying
/ included: Placement of s327,-
100000 order, largest in history, for
% naval vessels within few hours
OF the approval OF the appropria-
ton; opening of bids for big guam
titles OF blankets and uniform ma
terlal; word that the Navy Depart
ment was prepared to order shortly
the entire 5000 aircraft provided
IN l94l fiscal year appropriation.
AT the same time came word from
London that that government was
prepared to 60 "all OUT in its sup
| ply purchasing here and had freed
funds earmarked for purchases
originally scheduled months. or
even years, from now.
The Allied purchasing mission re-
vealed it had received delivery on
approximately 5000 of the 5000
planes it has ordered here since last
fall, and said it was prepared to
spend many millions" more imme-
diately for additional aircraft and
supplies.
French Order Trucks,
Buyers here for the French group
| this week ordered 10000 motor
trucks, valued at between sl5,0oO,-
600 and s20,000,0o0. The British
were said to be inquiring for a SIM
liar number.
In Wall Street, analysts agreed
that security prices appeared, 81
least for the time being, to have
discounted the possibility of French
collapse. Repeatedly during the
week Wall Street heard unfounded
rumors that France had sued for
peace.
Yet after the market. as measured
by the Associated Press average of
60 stocks, had hit low on Monday
since April, 1888, it turned about
and managed to give good account
OF itself on the rising side. The low
was 81, and by Saturdays close the
average was back to 40e The high
this year was 522 on January 3, and
the peak for the fall war boom was
539 on october 25.
The bond market, especially in the
hlgh-grade category, moved sharply
upward as Secretary Morgenthau,
saying the market had behaved
beautifully under stress, announced
the Government would go ahead
with plans for its June financing.