Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-10-21
Rubber Firms Ready
For Big Increase
In Demand
Plants Reported Able
To Meet Defense and
Normal Needs
BY PAUL d. GESNER.

BY PAUL d. GESNER,
Associated Press Business Writer.
NEW YORK, Oct. 21.-The Ma
lions rubber companies are reported
ready to handle production Of
peaceti1ne goods plus needs arising
from the Nations defense program
without any hitch in operations.
Trade sources estimate rubber
consumption during the rest Of
the year may be little over $4,000
tons monthly. principally the result
OF demand for new tires for the 1941
automobile models. The new cars
are now being assembled at q rate
OF close to $4,000 vehicles weekly.
Around three-fourths Of all rubber
used In this country goes into auto
mobile tires.
Even though $4,000 tons monthly
Is q fairly rapid rate Of consump-
ton, executives in the field say out
turn Of rubber to meet such a de-
r,1and will in no way tax productive
facilities. Plenty of plant capacity
still Is standing by to handle de-
tense orders.
In the case Of highly specialized
items for the Government there
may be some temporary delay while
machine tool installations are put
In preparation for production, but,
aside from these isolated proba-
bilitieS. no major "bottlenecks' are
anticipated in handling defense
rubber goods requirements.
Farm Price Rise Hinted.
Wars usually hike prices of farm
products. If the current conflict
In Europe doesn't it will be the first
major war in history that hasn't
stimulated farm prices.
A hint that better relative values
Tor the farmers cash crop may be
In store appears in Bureau Of Agri-
cultural Economics survey.
The agency says that while 1t is
not contemplating any great price
Increases in manufactured con-
sumers goods" such as automobile,
agricultural values may move nearer
to parity" with factory produced
goods, improving the purchasing
power Of farm income
While cotton exports from the
United States are reported proceed
Ing at the sloWest rate in so years,
domestic consumption this season
may be the highest in history. Cot
ton use may total between 8,250.000
and 8.750,000 bales, compared with
7,750 900 last season and the previous
high of almost 100000 bales in the
1861 season. Home consumption
of the fiber is being stimulated at
the moment by the large United
States purchases Of textiles for the
Army. Navy and the coming draft
trainees. Shirts, underwear. sheets
and other allied items bulk large
in the Government contracts.
Funds Leave U. S.
Movement of Swiss funds from
New York vas reported olt'nuinc
loday as var tension in Southern
Europe he'll at a high pitch. Should
Switzerland be invaded all Swiss
accounts in the United States would
be frozen" by executive order as
small neutral European countries
this year, money men assumed.
Foreign exchange circles reported
that as the repatriation Of Swiss
funds continues, evidence mounts
that funds of nations other than
Switzerland are involved under the
name of Swiss balances" Shift of
some Swiss capital" from New
York to South American nations has
been reported.
The Argentine peso, for example,
has been strong in foreign exchange
dealings. Bankers hint that gen.
eral European funds from variety
of sources reposing in Swiss bal
ences' here may recently have been
moved to the Argentine to insure
mobility and escare the freezing
In New York that would probably
accompany an invasion of the Swiss
confederation.
Extremely cold weather in several
sections of the country the past few
days has stimulated sales Of heavier
apparel, trade observers report.
However, Chief Jerry Blueyes, IS
year-old Cayuga Indian, thinks the
winter of 1941 will be a mild one.
He has told Canadian Railways a
mild winter is indicated by Cd the
scarcity of hickory nuts, CD slim
ness of corn, 90 lateness Of the
southern movement of ducks and
geese and a. the late-season agil-
ity of frogs. Not taking any chances
on the weather outlook, it might be
added, American oil companies are
reported to have stored sufficient
fuel oil stocks throughout the
United States to provide adequate
fuel needs through winter even
more severe and prolonged than last
season.