From reliable sources comes word that Krupps declared they can start immediately and offered guarantees that they are able to finance the job According to a story current some time ago, Japan also asked Brazil for the steel industry monopoly. They would set up furnaces and rolling mills, and would build shipyards anc ammunition factories to be worked jointly by Japan and Brazil. Material for the army and navy and for the government would be invoiced at cost. The Japanese figured that the control of the monopoly was sufficiently advantageous to afford that, and, in fact, they sought control of the Brazilian market and the near South American market and thus freeze out all competition. The story died a natural death after a Tokyo denial and the opposition it met from among the Brazilians themselves.
Recent reports were that Great Britain also was bidding for the monopoly following the lines of the proposal to the United States Steel crowd.
The prospect of increased demands for Canadian products gave a big stimulus to industry, War contracts valued at over $54,000,000 were, by the end of the year, placed by ' the Canadian War Supply Board, the British Government contracted for 80 per cent, of Canada's copper output and for all of its exports of zinc and lead, as well as for a supply of bacon up to a maximum of 5,600,0001b. weekly, The Empire air training scheme had not had time to produce much effect on industrial activity last year, but it will undoubtedly provide a big stimulus in due course, owing to the large amount of construction work involved. Over the 3% years of the agreement the cost is estimated at $600,000,000, of which Canada will contribute $350,- 000,000.
But although war orders, and the prospect of orders, were important factors in the business expansion there can be little doubt that the increased purchasing power of the farming community, consequent upon bountiful crops, was an even greater factor, The value of the principal field crops was much higher that in 1938, and was estimated to be close to that of 1930—$662,000,000.
The Bank of Canada continued its cheap money policy with the result that there was a further expansion in the chartered banks' deposits and short-term securities. In the last quarter of the year the demand for loans expanded sharply, Retail Prices in Tokyo Show Decline Tokyo, May 26.
Retail prices in Tokyo during the month of May were 1.5 per cent. lower than in April according to a survey made by the statistics bureau of the Tokyo Municipality.
It is understood that this was the first decline in the bureau's retail price index since November, 1938. The decline, it was believed here, is probably the result of a seasonal increase in the amount of fresh vegetables, fruit, fish and other commodities—Domei.
Text read from the printed page and cleaned; old type leaves the occasional error.