The Waterbury Democrat., 1938-11-16


 wrought so much havoc with the British rearmament program, ty- ing production into knots. and skyrocketing prices. The two edged still hasn't been solved by the Chamberlain government de- spite 8 number of cabinet changes and placing big orders with U. s. and Canadian manufacturers.
 This last experiency is out of the question here, first because the country wouldn't stand for it, and second, because one basic objective of the armament pro- gram is to stimulate business and Unemployment. It is to be the new big-spending plan of the ad- ministration.
 Under the previous plans of na- tionwide construction of schools, hospitals, civil centers, armories, highways, benefits were spread out more or less evenly the length and breadth of the country. But armament production is limited to a relatively few localities and industries, such as steel, ship building, munitions, motors, air- planes.
 Steel and motors are basic in- dustries and money spent in them will have wide economic effect. But the others are speciality industries, and stimu- lating them will not spread far beyond their own spheres.
 How to avoid such economic bottlenecks", at the same time maintain a steady and rapid flow of material, also avoid profiteer- ing, is the brain-cracking conun- drum the experts are trying to solve.
 One possible solution is being pushed by Assistant War Secretary Louis Johnson. In the secret de- Alterations he is urging $45,- 100000 appropriation for so-called experimental orders" for army goods to be given plants scattered all over the country.
 The last Congress voted $2,000,- GOO for this purpose. Johnson argues that by greatly expanding this sum the military prepared ness of larger number of plants would be improved, and the econ- omic benefits of the defense pro- gram would be more widely distri- buted.
 Five Phases
 The defense program is of far greater scope than is generally realized. It consists of five major phases:
 1. Expansion of the fighting forces and their reserves, both technical and combat.
 2. Great increase in both of- fensive and defensive combat equipment. This includes me- chanization of the army, establish ment of mobile and stationary anti-aircraft batteries and new naval air bases.
 3. Tripling of the Army Air Corps and the development of a system, modelled after the Ger mans, for mass production of training and fighting planes.
 4. Adding 5,OO0.0oO kilowatts of power producing facilities to the fifteen key "war material centers". so that there will be sufficient juice for high pressure production in any emergency. This phase alone will cost over $2,500, ,000, 900. 5. Developing close economic, political and military ties with South America and possibly Aus tralia and Canada. This is the most closely guarded and complex angle of the defense program, but definite moves already are under way to establish such bonds. This is the principal reason why Sec retary Cordell Hull is going to the Pan-American Conference at Lima next month.
 Not Interested
 Emerging from last Fridays Cabinet meeting, the first after the election, Jim Farley was asked by newsman, Did Harry Hopkins explain how he came to be SO far wrong on the outcome of the balloting?"
 Cant say" replied Far ley, who secretly dislikes the WPA boss, T didn't wait for that"
 Lame Ducks
 The Republican election sweep has already begun to plague the President, even though the new Congress is still seven weeks off. The horde of lame-duck Demo- cratic senators and congressman are literally beseiging the White