Evening star., 1941-02-10
1941 Defense Outlay
May Climb Above
7BiIIions
Recent Speeding Up
OF Orders Roises
Estimates for Yeor
By PAUL ID. GESNER.

Associated Press BUSINESS writer.
NEW YORK. Feb. 1O-Spending
In the Nations $28, 500 100000 defense
program this year may aggregate
more than s700O,0 100000 as a re-
suit of rapid expansion in the plac-
ing of orders for needed goods,
financial circles estimated today.
The stimulus of faster consumer
spending at KEY defense industry
centers already has lifted retail
trade to the highest levels for this
season in II years. Still further
increase in the pace Of store sales
is anticipated.
Residential building during l94l
may exceed $4,000 900 000 This fig
ure includes both regular peacetime
home building and outlays that may
be coming along for emergency
housing at factory cities where
homes are needed quickly for added
new workers. A $1,000 900 900 resi-
dental construction figure would
represent a gain of S800000000 to
$1,000 900 900 over home building
totals for 1910.
Refunding to Lag.
January yielded up brisk run
Of corporate refunding bond offer
lngs. but at the moment it looks
as if the capital markets are going
to see relatively light business for
q few weeks. The only large issue
currently being talked about is the
prospective $l06.500000 of bonds of
Republic Steel Corp, for which
registration statement may be filed
with the Securities and Exchange
Commission this week.
New State and municipal bond Of
ferings this week are expected to
total Sl7.9698l2. compared with S26.-
$4,000 last week, according to the
Bond Buyers.
Financial circles are wondering
who will head the New York Stock
Exchange If William McChesney
Martin, jr., president. is called to
military service. He is Of draft age,
and this past week he received and
returned his QUESTIONABLE under the
Selective Service Act.
Rail Outlook Improves.
Railway freight loadings at 7l4,323
cars in the last week were the high
est recorded thus far in 194l and the
largest for any comparable week in
10 years. The improved freight-load-
ings picture, rail executives say, may
make earnings for the initial 194l
quarter the best in a decade.
Movement of materials in connec-
ton with the national defense pro-
gram is giving an added boost to
traffic. Miscellaneous loadingS in
the latest week at 3O4 1877 cars, for
instance, were the largest for any
comparable week since 1890 Coke
lOadings were the best for any seven
days since March. 1926. The highly
favorable traffic trend is expected
10 continue this week.
Defense is expanding railway ac-
tivlty in many directions. Even the
marine departments are not exempt.
A Baltimore e. Ohio Railroad sub
sldlary, for example, is planning to
oouble its car ferry service between
Rochester and Canada to widen that
gateway for the flow of American
goods TO Canadian soil.
Too Busy for Holidays.
Llncons Birthday is coming
along this week. and George Wash
lngton's next week. Normally these
two days are holidays in many COM
munities throughout the Nation.
This year, however, due to defense
activity. they probably will be cele-
brated to a lesser degree than in
any year since 1918 Factories are
simply too busy-too rushed with
orders TO slow down production.
New England. for instance, has al
ways been a rock-ribbed celebrator
OF patriotic holidays A check by
the Connecticut State Chamber of
Commerce, in the heart of New
England, however indicates that in
the States 81 largest cities and
towns almost all industries will have
factory machines running full speed
on both holidays this year. More
stores and Offices, too, are slated to
remain open.