Evening star., 1940-04-21
Spurt in War Buying
Turns Commodity
Prices Upward
HeroIds Of Fall Boom
In Factory Activity
Again Climb
BY FRANK MacMILLEN,
Associated Press Business Writer.

ity prices, among the first to herald
the autumn boom in factory ac-
tivity, pointed upward today on a
new wave of war buying.
In markets tinged with war spec
ulation, wheat, corn, hogs, sugar,
rubber and other staples moved
higher this week and some sold at
the best quotations recorded in two
years or more.
Rising tendencies continued in
today's brief trading session on COM
modify exchanges, causing some an
alysts to look for a late spring
industrial upturn.
The advance in farm prices, It
was pointed out, means expanded
purchasing power for the rural con-
sumner if the gains hold. In addition
an uptrend in raw material costs
was counted potential stimulus to
renewed inventory buying by manu-
facturers and dealers. The first
stampede of war buying in Septem-
Der was followed by one of the
quickest upswings in factory pro-
duction on record in this country.
Industry, however, yielded all the
autumn war gains as result of the
winters lull in new buying and de-
cline in untitled orders on factory
books.
The spring upturn in commodities
started on the news of the German
drive into Scandinavia, opening
northern theater for fighting and
raising fear Of more aggression in
the Balkans and the Mediterranean.
Mediterranean Fears Ease.
While Paris reports of a friendlier
understanding between France and
Italy on Mediterranean problems al
layed the fears somewhat, war buy
Ing seemed to have taken a firm
grip on commodity markets.
1t was manifest, brokers said. In
the weeks advance in such staples
OF world trade as grains, sugar and
rubber, regarded in speculative
tive reflections of wartime economic
forces.
Higher shipping costs on with
drawal of Scandinavian bottoms
from cargo markets, fear of wider
disruption of trade routes if the
| hghting spreads, diversion of sup
ply and demand to new channels
and speculation for the rise on war
news were mentioned as among the
factors at work in the upturn of raw
materials and foodstuffs.
Most commodities, having slipped
curing the winter lull in demand.
remained under top prices of the
September-October advance.
Certain markets directly affected
by loss of Scandinavian trade. in
Guiding exports of nearly 5000 900 900
annually from the United States.
were boosted sharply by the latest
war events. Pulp prices were raised
because the German invasion of
Denmark and Norway severed an
important source of paper and pulp
supply.
| ShScIt tduitS heUdluS.
Although the advance in commod-
| ltles clarified the situation some
what, analysts still were uncertain
what the full effects of the shifting
foreign trade would be on business
IN this country. Some assumed the
loss IN northern trade would be off,
set by gains in purchases by the
allies, stimulus to domestic produce
t1on as result of renewed ordering
for inventory and expansion of home
output to make up for deficiencies in
imported goods.
There was plenty of evidence,
aside from the rise in commodities,
that Uncle Sans business chariot
was hitched to the war steeds,
| The much-talked $1,0O0,0O0 900
allied aviation program in the United
States materialized in part with
the signature of contracts which
were expected to ado more than
$500, 100000 in orders to the already
big backlogs of aircraft manufac-
turers. The placing of the orders
appeared to have been hurried by
events in Scandinavia.
Business, too, was looking up for
shlpbuilders and owners. The SEN
ate approved big Navy bill The
Matson Navigation Co placed orders
for four 12,o00-ton cargo boats.
American merchant tonnage was in
demand to fill places of withdrawn
Scandinavian boats, scores of which
have been held in ports to wait
decision on their status.
The American merchant marine.
many Wall Streeters thought, was
hearing the loudest knock of op-
portunity since the World War
years. That belief was reflected in
buying of shipping shares on the
stock exchange.
Sound War Note Also.
! The war note also sounded in de-
mand for paper, aircraft, wooden,
sugar and other stocks responding
to rising commodity prices and shifts
in foreign trade. These countered
the main down trend in the weeks
share trading and headed a rally
today, with steels Ginning in on the
rise.
The German coup in Scandinavia
nipped a spring advance in stocks,
diverted speculation largely into
commodities and such war babies"
as shipping and paper stocks. Cor
porate bonds also sagged SIS sta
Piles took the spotlight in tradition
al pattern of war speculation.
The initial reaction of uncertainty
registered in security markets on
the break in Europe's stalemated
struggle also was mirrored in latest
trade statistics.
Continuing its recession from the
tops of the autumn war boom, the
Associated Press index of industrial
activity dropped to 94.8 per cent of
the 1929-30 level from 95.2 the
previous week. A year ago it was
85.3.
Steel production dipped. Fresh
hl1yirp in steel trodo ohc oruore s,;l