The Kennewick courier-reporter and the White Bluffs spokesman. [volume] (Kennewick, Wash.) 1938-1939, 1938-10-27
ECONOMIC H1GHL1GHTs

ECONOMIC HIGHLIGHTS
The announcement of the Admin
istration,s great rearmament pro-
gram has finally given credence to
rumors that have been making the
rounds for many weeks. At the
same time, it has given a consid-
cradle fillip to basic industry.
In the words Of an Associated
Press dispatch, "The broad plans
now being worked out in conference
between business executives and
government officials :. were de-
signed to become the dominating
factor in the recovery picture.
"The huge scope of the program,
they (the businessmen involved)
added, was not yet fully realized by
the country as a whole"
Complete information on the
pending program is not yet avail
able, and probably will not be for
some time to come. But, accord
ing to forecasts, it will cause the
spending of at least SIS 5000, OOO. 900 in
the next fifteen months. The Pres
ident contemplates adding $1,000,-
100000 to the next budget to take
care of part of it. The balance will
consinst of private spending, plus
some nonbudgeted federal loans to
industry.
It is stated that hte rearmament
program will cover every phase Of
our national defense. Material addi-
lions will be made to the navy. The
peace-time strength of the army
will also be. increased. Coast de-
lenses which are now largely obso-
lete will be revamped with modern
weapons and devices. And, if the
generals and admirals have their
way, we will proceed to build the
worlds greatest air force. The mill
tary staffs believe that our best de-
tense against aggression is the
creation Of q military machine sec
ond to none in the world. And that.
for country as large as this, with
borders on the two great oceans,
means a navy Of unprecedented
size, speed and power, buttressed by
thousands Of fighting airplanes
which will be constantly replaced
as they become obsolete and the
Life Of such plane is very short
indeed.
So much for the defense phase Of
the program. From the economic
standpoint, 1t implies an almost
revolutionary change in the Admin
istration's general recovery plan. In
the past, the government has plac-
ed principal emphasis on aiding, in
various ways, the consumers goods
industries. The heavy goods indus
tries, partly as a consequence Of
this, have been the slowest to re-
spond to favorable trends-and the
quickest to react to unfavorable
trends The rearmament program
viii throw q tremendous volume Of
business to the heavy industries
cement, steel, copper, lumber, etc.
And Of equal Importance, to quote
the A. p. again, "a fundamental
goal will be the removal from WPA
payrolls to gainful private employ
ment Of a major portion of the UNI
employed by the end Of the period
lin 1940.'
This vast program now being
planned by the President and his
aides, in company with unnamed
big business leaders, win Of course
have to be approved by congress be-
fore it can become effective. But
there seems to be little chance Of
any snp-up there. Senators and
Representatives, appalled, and dis
mayed by the spectacle of chaotic,
terror-ridden Europe, are eager to
do anything possible to make this
nation immune to attack either
from Europe or from South Ameri-
ca, where naI influence is steadily
enthusiastically in Brazil, largest
and richest of the South American
republics.