Evening star., 1941-01-01
War Biggest Factor
In Financial Moves
During Year 1910
Domestic Business
Watches Every Turn
In World Affairs
By JOHN L. BECKLEY,

By JOHN L. BECkLEY,
Associated Press Stausuc,an,
NEW YORK. Jan. 1.-Fmance
and Industry danced TO the ,une OF
international events in 1910.
Not since World War days has
domestic business followed so
closely every twist and turn OF world
affairs.
Industry entered the year with
factory wheels turning at a fast
pace working on orders carried over
from the 1889 inventory boom,
Operations slowed down steadily
during four months OF staiemate on
the western 'front.' then picked up
to the highest level on record as
smashing German victories aWak-
ened America 10 a fCyeuSh drive for
national defense.
The stock maj kGt Waded through
dismal year rcplCte with fears OF
German WOrl0 domination, oppres-
sly2 taxation. tremendous deficits
and vanishing private initiative
The crushing defeat OF France sent
shares tumOling into one Of the
I,
WnlCn they had but half recovered
at year end Trading volume was
the smallest since 1921.
Years Important Events.
A chronology Of important events
which shaped The course Of business
throughout the year follows:
January - Fnns InGict severe
losses or attacking Russians.
Roosevelt budget asks S1.800.O0O.O 600
for defense, S46000O 900 new taxes.
SETS 1941 deficit at S2OOOO0O 600.
Japanese American commercial
treaty expires; stocks marking time;
new orders and industrial activity
turning downward
FebruaTy-BT British treasury reQui-
sitions nationals holdings Of 60
American securities for liquidation.
Finnish defense Weakeus. RoOSe-
welt signs S252O30OO0 emergency /
defense appropriation. New orders
down 10 preWaT levels, industrial ac-
tivity still tanering. Export excess
largest since November. 1929 Stock
market virtually unchanged
March-FInland Yields TO Russian
peace terms. Assistant Secretary
Of State Weilcs returns from special
mission to Europe; Roosevelt pre-
diets nc early peace. Stocks gain
s.lEhlly; factory operations s,iu
slowing down.
Huge Naval Appropriation Passed.
ADrlI-Nazis seize Denmark: in
wade Norway. British reQuisition
more United States securities owned /
bv Engl.Shmeu. announce war bud /
get of S1O7O0O0 the largest /
ever. Congress passes billion dollar /
Navy appropriation. Manufacture
erS' orders rise. decline in indus /
trial activity levels out. Western .
front stalemate still holds stock .
market in rut.
Nav-AIlias abandon Southern
Norway. Germany jnvadcs Low
Countries: breaks through French .
defense. Stocks plunge ON fears of .
German victory. Bonds fall sharp
II. Grain prices crash as short
war appears probable. Grain prices
pegged. Other commodities de /
cline. Allied war purchases speed /
up. Roosevelt asks additional ST.
$4,000 900 for Army ana Navy, and +
plane capacity Of $4,000 per year. /
President appoints National Defense
Advisory Commission. Scared for
eign gold p0urs II. FractOry Oper-
ations turn sharply upward, led by
steel.
June-Italy enters war. Paris falls,
French surrender. French balances
frozen. National defense drive gets
under way. Congress passes $780,
100000 supplemental defense apprO-
priation, provides $1,000 100000 IN
new taxes. raises debt limit to S49,-
600 100000. Wendell Willkie nOmi-
mated by Republicans. Stock market
RECEIVERS moderately from May re-
lapse. industrial activity expands
rapidly.
Stocks Deadest Since 1918.
JuIy-Gold imports push none
tary stock past $4,000 100000 mark.
President calls for steeply graduated
excess profits tax. r. F. c. sets up
corporations to acquire strategic ma
terials. President puts petroleum
products and scrap metal under eX-
port license system. Defense work
boosts heavy engineering COnStruc-
ton and stimulates industrial aC-
tivity. Stock market marks time.
with volume Of trading lowest for
anv month since August, 1913.
Roosevelt nominated for third term
August-InduStry continues to
gain speed while stock market re-
mains virtually dormant. United
states and Canada conclude joint
defense pact. Excess profits tax and
defense plant amortization debate
drag on. Congress passes acts CIV
ing S. Z. c. regulatory control Of
investment trusts and investment
cOunselors.
September-Roosevelt swaps so
destrovers to Britain for naval bases.
beginning Of intensive bombing Of
London depresseS stock market.
President signs S. ,25OO0O0OO supple
mental defense bill providing for
two-ocean Navy and mechanical
ARMY. declares embargo on ship
rnents of iron and steel scrap to all
countries except Great Britain.
Construction Reaches Peak.
c1cecser-Third supplemental de-
fense bill for S1,482O00,00O signed.
Knudsen says machine tool output
sold out for 1941. Roosevelt approves
establishment Of priorities board.
italy invades Greece. Factory out
nut still climbing. Heavy engineer
ing construction and steel produc-
ton set new records. EXCESS prohtS
bill finally passes.
November-Roosevelt reelected.
Government, bonds spurt to new rec
ord highs in expectation of contln-
led easv money policies. Morgen-