Evening star., 1940-04-28
War Purchases Exert
Growing Influence
On j. ). Business
Orders in First Year
Expected to Reoeh \
Two Billions
BY FRANK MacMILLEN,
Associated prAss nusina.s uyrItsS

BY FRANK MacMILLEN,
Associated Press Business Writer.
NEW YORK, April 27-war
orders were rated by some business
authorities today as an increasingly
powerful force pointing to an up.
ward turn in the Nations industrial
trend.
The trade magazine Factory" In
a war communique" to American
industry, estimated allied buying
would provide a $4,000, ,000, 900 "im-
pulse" for business in this country
in the first year Of the war.
THE $4,000, 900, 900 are beginning
to tug sharply at the outlines of our
peacetime economy, producing a sort
OF jagged, uncertain recovery" the
magazine said.
Reporting the allies have been
moving slowly except in aircraft in
tapping the immense productive ca
pacities of American industry, "Fac-
tory" observed:
I'VE are definitely holding the
towel for the allies and have a big
stake in the outcome.
War business still largely ten
tatlve, still not big Tin the 19l4-15
sense), has nevertheless taken its
hold on our economy.
Slump Is Avoided.
The economists who last fall
warned lndustry-and wisely-to
concentrate on tine domestic upturn
then IN the making have been COM
PEELED by changing circumstances to
admit that war trade has begun to
haul us out of what might have been
a serious slump"
Chemicals, lumber, copper and
leather, the magazine added, have
been among raW-material industries
feeilng the lift Of war buying, partly
IN supplying needs of the busy air.
craft, Woodworking and shipbuild.
ing industries.
Weighed against the war orders.
however, were loss of Scandinavian
trade since Germany invaded Den
mark and Norway and fears that q
war move in the Balkans and Medi-
terranean might close another big
area to foreign trade.
united States commerce figures
showed exports in the first three
months OF the year topped S1,OO0,-
100000 for 81 per cent gain over
the comparable 1889 period. Much of
tnls was accounted for by expansion
OF trade with Canada and Latin
America.
Striking shifts in this country's
trade with the United Kingdom were
SHOWN In an analysis by the Ma.
tlonal Foreign Trade Council of the
enects on exports and imports OF
the far-reaching economic controls
adopted by England since the out
break of the war.
Offset by Losses.
Expansion in British purchases Of
aircraft, metals and machinery. it
was noted, largely have been of.
set by curtailment in buying here
OF tobacco, fruits and other COM
modities.
The British controls, some trade
quarters said, appear to have been
eHectlve in giving trade with the
United States an increasing war
character" and bringing about cor
responding shifts in factory activity.
surveying prospects, the National
Association of Purchasing Agents re-
ported war industry had contributed
to an uneven appearance on the
home industrial fronts.
| "a
port OF the men who do most of the
buying for big business, business
conditions are showing some better
ment from manufacturing plant ex-
tensions, the continued high rate of
aircraft production and improve
ment in home building.
In Canada further increases are
a result of war orders.
The rapid drop in production
and distribution in major lines Of
trade in this country since the first
OF the year has been retarded II
not stopped.
The Midwest is holding its busi-
ness volume steady at the moment
and the East is experiencing a
slight decline.
Moderate Rise Forecast.
The concensus seems to be that
any change from the present levels
would tend toward a moderate up
ward Improvement during the next
couple of months"
Further stimulus to shipbuilding
was seen in trade circles as result
OF allied buying of old ships in the
United States and diversion of Nor
wegian and Danish vessels from
some trade routes since the fight
ing started in Scandinavia.
Norway's big tanker fleet was ex-
pected to 60 mostly into allied serv-
ice. The trade journal Iron Age
said American oil companies plan.
ned to order considerable mum.
ber' of oil carriers from shipyards.
Shipbuilding and aviation we're
pictured set for further expansion Of
payrolls. Aircraft employment was
estimated at 10000, with factory ca
pacity nearly tripled.
Munitions Ordered.
The war aspects were further
spotlghted this week by Bethlehem
Steels first quarter earnings report,
showing the largest profit for the
period since the World War years,
and the report American Car e.
Foundry Co., a leading rail equip
ment maker, planned to reopen its
Buffalo plant to handle "substan-
tial' contract for munitions from a
foreign power.
A revival of inventory buying came
In paper and pulp since the Scandi.
navian fighting broke out and the
northern supply of wood products
quickened business for domestic and
Canadian paper companies.
But in most markets, trade re-
ports said, buyers continued to or
der. leisurely while manufacturers
and dealers worked of inventories
accumulated in the autumn buying
rush.
At retail counters, on the other
hond cnriY,o favS, v1a~o {,,~>. l..