Evening star., 1940-08-25
Industrial Activity
Al Highest August
Levels Since 1929
Domestic and British
Arms Orders Offset
Blockade Losses
BY FRANK MAC MILLEN,
Associated Press Business Writer.

NEW YORK, Aug. A-DeSplte D
drop in export trade since the closing
of the big continental market in
Europe, major business indices to-
day showed further gains in the
rise Of the Nations industrial ac-
tivity to the highest August levels
since 1929.
Growing arms expenditures in this
country both for United States and
British accounts, analysts said, ap-
peared to have more than offset loss
Of business with France, the Scan
dinavian, Netherlands and other
markets cut of from American COM
merce.
Where industry is getting much Of
its push was evident in building
figures. Large Federal contracts for
military works jumped the weekly
total of construction awards COM
piled by the Engineering News
Record, trade publication, to
s128 ,449 900, the second highest Of
the year.
The figure was more than double
the total in the same week last year.
Fleet operating base, San Pedro,
Calf, $18.0130O0; a tank factory
near Detroit, $40 900 900; a powder
plant at Radford, Va, $4,000 900;
Edgewood Arsenal Improvements,
Maryland, $5.898.O0.
Steel BackIogs Huge.
Aside from construction-now at
the highest in 10 years-the war
boom note sounded in steel and
machine-making industries.
Although steel output has hovered
around 90 per cent Of capacity the
past month and many mills have
been up to the hilt in business. trade
reports said producers still had
plenty of untitled orders on hand.
The bulk of these were attributed
to inventory building and peace
time, rather than actual defense, re-
quirements.
Squirting upward after SLOW
down in July and early August. the
Associated Press weekly index Of
industrial activity climbed to 109
per cent of the 1929-30 level, COM
pared with 1918 the previous week
and 95.1 year ago
Since April. this index has risen
from 936 and recovered most of
the drop following the first war
inspired business expansion last au-
tumn. The rise in recent months
has accompanied the launching of
the $4,000 100000 defense program
and increase in the productive ca
pacities of some war industries,
especially aircraft and shipbuilding.
Indicating growing dependence Of
| business on the flow of money into
war lines, analysts noted, were Com
merce Department figures on July
foreign trade. Exports dropped to
s317 ,0l5 900 from $3.50 900 900 in June
with the elimination of France.
which took $4,000, 900 of the June
exports.
Exports Above 1889.
The flow of war supplies to Great
Britain and Canada, together with
heavier merchandise sales to Latin
America. kept exports we'll above the
July, 1889, total Of $3.50 900 900
Expansion Of industrial activity
in the United States, necessitating
| larger supplies of raw materials and
the building of reserves of strategic
materials for defense needs were
reflected in greater imports.
July imports amounted to $232.-
25s 900. against s21l 800 900 in June
and sl68,9l0.000 in July, 1899.
With no sign of a break in the
European trade blockade or of an
end to the momentous battle of Eng
land, exporters looked for new mar
kets to make up for the loss Of
business on the Continent.
| Exporters of cotton goods planned
| aggressive sales efforts in Latin
America, India and other markets
to increase foreign outlets for Amer
lean textiles. They were encouraged
to make a harder fight for trade by
subsidy on cotton products, designed
to help increase the consumption OF
American cotton.
Cotton Hardest Hit.
Cotton seems to have been hardest
hit by the closing of continental out
lets. Some exporters forecast sales
of the raw staple abroad this season
would be less than half the 1939-40
shipments.
Retailers found their home market
growing under the stimulus Of de.
fense and British war expenditures.
| Financial sources estimated arma-
ment spending, now at the rate Of
nearly $200,0OO000 monthly, would
mount sharply in the next six
months.
Against the growth in pay rolls
at shipbuilding, aircraft, tool, muni-
tions and other war industry centers,
merchants had to weigh the poten-
tial effects of the drawing of hun
dreds of thousands of young men
into Army and Navy services.
Latest Federal Reserve Board data
on department store sales showed
retail trade running about per
cent ahead of last year. with wider
increases in districts where arma-
ment money is being felt most. For
the week ended August II depart
ment store sales were up IL to II
per cent over 1899 figures in the
Cleveland, Philadelphia and Rich
mond reserve districts.
What arms plants may mean to
some communities was hinted when
| Curtiss-Wright Corp. announced 1t
would rush construction of a huge
airplane engine factory at Lockland.
Ohio, near Cincinnati, to employ
between $4,000 and $4,000 workers.
In financial quarters it was esti-
mated the aircraft industry alone
may spend as much as $500 900 900
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