Evening star., 1941-04-13
Business Nerves
Shock-Proofto 10
War Events
Role of Industrial
U. S. Emphasized by
Balkan Drive
Sy FRANK MAC MILLEN,
Associated Press Business Writer.

NEW YORK. April 12.-When
Germany opened its spring offensive
in the Balkans this week it both
anew Americas role as
the industrial warehouse of democ-
racy and showed business nerves in
this country to be virtually shock
proof.
The stock market, sensitive cardio-
graph of the business organism,
hardly faltered as Reich forces
swept into Yugoslavia and Greece.
Marked was the contrast with
the spring of 1910, when the Low
Countries were invaded. Then share
prices on the average lost a third
of their value in little over
month.
Now prices, for long in side
wise movement. have dipped only
about per cent since the first OF
this month, and have quickly levelled
off.
To number of business observers
the events in the Balkans, admit
tedly of great significance in the
world struggle, nevertheless. ap-
peared inconclusive as factors in
the trade and industrial situation
here for the next few months.
German Risks Greatest.
One commentator suggested Brit
ain could not lose the war solely
in the Balkans, although Germany
conceivably could if things went
badly for her.
Business Week, commenting on
this aspect of the growing struggle
in Southeastern Europe, said:
UNLESS the Germans conclusivelv
demonstrate that they can first
knock out the British. not just their
Balkan allies, the war will not be
over and this country will continue
in the role of the arsenal of democ-
racy.'
Moreover, an out -and-out Ger
man victory would simply intensity
the armament effort here.
Therefore, it is the lesser part
of wisdom to consider our current
high level of production tempor-
ary thing-dependent on the out
come of the Balkan campaign"
The production level remained
very high indeed, despite dips in
some of the indices which business
analysts use to measure the trend
of production and trade.
Strikes in the automobile and coal
industries were reflected in the As
sociated Press index of production.
which stood at the lowest of the
year TO date at 1908. but even the
latter level-it represents 120 per
cent Of the average for the relatively
active period. 1929 -30-promised to
be only temporary.
Strikes Are Settled.
The Ford strike ended as the week
closed and a settlement of the coal
difficulty was reached, affecting a
major part of the mines.
The question of general wage
levels, with the closely intertwined
ones of living and production costs.
however. were being widely dis
cussed among businessmen and in
Washington. Most observers ap-
peared agreed that in that economic
area lay some of the most complex
of the problems still to be solved
in the Switch-over from a peaceful
to a war-dominated economy.
The cost of living in March, as
estimated by the National Industrial
Conference Board. a private statis-
tical organization, showed its fourth
successive creeping increase and the
index figure now stands about 2
per cent higher than year ago.
In the perennial problem of the
pay envelope, these two important
developments occurred during the
week:
l. The part settlement in the coal
fields included a boost of 81 a day
for miners.
2. National Steel Corp. with about
per cent of the industry's CAPACITY
but an important supplier of the
automobile companies, raised paw 10
cents an hour. The move was of
wide interest because the giant
United States Steel Corp. produc-
ing more than half of the countrys
steel. has a similar wage demand
from its men now pending.
Business analysts fastened on these
two developments as of more than
usual significance because of the
basic nature of the industries in
volved.
Easter Trade Brisk.
Meantime, both higher pay scales
here and there and the growing
number of men getting Jobs in ex-
pandlng industry gave stores their
best Easter season in a dozen years,
Shoes, hats, blouseS, dresses. chill
drens wear and mems suits topped
the lists of spring shoppers. but
store men were impressed with the
good sale of many other items not
traceable to the demands
of the season.
Merchants thought not only ths
fatter pay envelopes of customers,
but, more significant, their willing.
ness to spend, we're reflected in un-
usually good demand for such things
as housewares, refrigerators. auto
and second hand
washing machines and vacuum
cleaners.