Evening star., 1940-04-07
Business Starts
RecoveryAfter
Big Decline
Spring Orders Spur
Steel, Textile and
Other Markets
BY FRANK MacMILLEN,
Associated Press BUSINESS Writer.


NEW YORK, April 6.-After .
hard fall in the first three month,
of this year, the Nations business
curve pointed upward today.
With steel, textiles and other key
markets feeling springtime reviva
of buying, Wall Street hopes fol
broader industrial expansion were
mirrored in the heaviest demand
for stocks and bonds since the
autumn war boom briefly flashed
on the speculative stage.
Completing the busiest week o.
the year on the stock exchange
leading steels, motors and misceI.
laneous industrial shares rose to new
tops for the spring upturn in todayi
short session. The war business
angle was spotlighted by a rise in
shipbuilding shares, apparently or
expectation American yards were liz
for more orders to help fill a void
in the world market for cargt
carriers.
AS explanation for the rejuvena.
tion of bullish feeling. Wall Stree
commentators cited various develop.
ments in business the past week, in.
dlcating possible lasting turn
Among these were the widest ad.
vance in steel production since Jan.
uary. brisk ordering Of textiles. the
biggest rail equipment order of tn.
new year, reports of surprisingly
good automobile sales and a Fed,
eral Housing Administration officia.
forecast home construction in 19A
would be the greatest in IL years.
A. p. Index Rises.
The Associated Press index. o.
industrial activity, partly based or
data for the preceding week. re.
versed the three months downtrene
and made small gain. 1t hae
fallen for 10-year peak around II.
to 96.3 per cent of the 1929-a
level. The latest figure was 96.s
against 876 year ago.
Many Wall Streeters thought poll.
tics played a part in the week,
revival of the buying urge in sensi.
tive markets, like textiles and stocks
but it was difficult to put a finger
on the political factor
| Making a coincidence, at least.
large-scale buying wave in stocks
and bonds followed the Wisconsin
primary vote. The Dewey triumph
was widely interpreted in financia,
circles as signifying a Republican
| groundsWell.
However, security markets prior t.
the Wisconsin balloting had beer
responding to outcroppings of bush
ness improvement and spreading be.
lief industry was ready to resums
its forward motion after liquidat.
ing the autumn war boom. Reviva'
of demand in textiles and otheI
markets became noticeable as pro.
duction barometers approached thu
August pre-war levels.
Complicated by War.
The effect on business of presi.
Dental election year long has beer
a subject of debate among eco.
nomic analysts. This year analyst,
| is complicated by the war, which
many judge to be of surpassins
Importance in stimulating buying
to maintain inventories at relatively
high levels and bringing expansion
in certain industries, such as ship.
| building and aircraft.
Secretary of Commerce Harry L
Hopkins said inventories held the
answer to the immediate future
If businessmen resume buying fol
inventory, following the winteri
dearth of new orders. instead oi
continuing to draw upon stocks ac.
cumulated on the autumn buying
rush, then industry may expand
soon, explained the Commerce De.
partment head.
Trade observers in steel and tex.
tiles. particularly, profeSSed to seq
evidence of a seasonal rise in new
orders, anyway, for replenishment
of rundown stocks. Steel and tex
tile markets felt the full force of the
September scramble to acquire in.
ventories for protection against q
possible war squeeze on prices and
deliveries.
AS for the 1910 political factor, DR..
Claudius T. Murchison, president Of
the Cotton Textile Institute, Inc,
forecast unprecedented prosperity
for the United States after the No
vember election, regardless of which
party wins.
Some analysts noted a powerful
combination of peace and war busi-
(See BUSINESS, Page E-3.)