Milford chronicle., 1939-09-22
Economic Highlights
HAPPENINGS THAT AFFECT THE DINNER
Paris, DIVIDEND CHECKS AND TAX
BILLS OF EVERY INDIVIDUAL
National and International Problems
IHSeParGblr from Local Welfare

! day might be phrased like this
How is the European war going Il
affect meas an individual, as 6
worker and as a factor in our SO
ciety?'
The answer to that must naturally
vary with the work you do, the way
you earn your living, in what sec
tion of the country you live, and
what your station in life is. And
the hazards of forecasting at this
early stage are obvious. But, going
by the experience of the past. it is
the safest bet imaginable that the av-
erage man and woman is going to be
affected by the European explosion
and in certain definite ways.
First. war is almost certain TO
have an influence on the cost of liv-
ing in this country-and an unfav-
Orable influence, looking at it from
the point of view of the householder
who has to pay the bills. However,
there is no reason for believing, as
thousands of people apparently did
in the first days of the struggle, that
prices are due for a prolonged trip
TO the economic stratosphere. All
over the country people rushed into
stores to lay in heavy supplies of
sugar, flour and other staples. AS
result, many localities reported
themselves practically sold out of
these commodities. Stores were for
ced TO ration dwindling stocks. This
was panic buying, which naturally
created highly artificial price sit
uation. Prices Immediately scared
to completely unreasonable levels
from which, at this writing, they
have begun TO drop.
The truth is that we have, and
have long had, a heavy surplus of
most commodities. Sugar stocks on
hand recently touched an all-time
high. This years world wheat crop
was the greatest on record, and the
U. S. crop, while it did not set
record for us, was very large We
have an excess of flour in storage
Don't forget that the government
has actually been paying out money
in export subsidies in an effort to
find market for some of these sur
plus commodities.
AS result. even with heavy war
demand, considerable time must
pass before commodity supplies are
reduced to normal" much less be-
low normal The moral of it all is
that the consumer has no immedi-
ate real worry about greatly soaring
prices. Prices will tend upward,
and if the war goes on
long enough a very serious price
problem could result But sudden
price boOms can only follow mass
hysteria. And the government has
certain controls, long-established,
which can be used effectively to curb
and constituencies spec
llation at the consumers expense.
Second, what about the effect of
he war on business? There is no
need to go into the armament pic
lure here-if. as the President de-
'ires, the arms embargo is repealed
IN favor of the cash-and-carry plan,
he munitions industries, and the
basic Industries supplying their
needs. will obviously boom. The out
oOk for other business is highly var
able. For example, a prolonged war
would create an Unsuitable British
French demand for wheat, hides.
wool and similar necessities. The
producers of these commodities
~ould find unlimited markets and
good prices, and they and their areas
would prosper.
Foreign consumption of other i'm |
lOrtant commodities, not so neces- |
sary to the prosecution of war,
would decline. Cotton and tobacco |
ire cases in point You can live a |
Ong time without either of these
but you can't live |
without grain. The result is that /
he cotton people, who have long
aced a drastic problem of rising
urpluses and narrowing foreign !
markets, may be struck another Sc
ere economic blow This would be |
5 disastrous TO the South as the /
Ioom in wheat would be beneficial /
o the plains states.
On top of that, 19l4-lS experience |
indicates that even at home in a
eutral country people buy less in
var time. They make their clothes
asst longer, build fewer houses, as
esult of uncertainty as to the flu
ure. And certain industries suffer.
Thus. the economic effects of the
iar are regionally very different
is possible that one section of the
ountry would undergo a severe de-
ression while another section a
hOusand miles away experienced an
lfated prosperity
One thing TO remember-War
oOms are entirely artificial. They /
train the resources of neutral ex-
oIting powers to the utmost if they
ist long enough, and when the war
over, the most drastic kind of de-
alton must soon result. That hap ,
ened to us last time, when war
me demand had developed our pro-
uctive facilities far beyond any con-
eivable peace-time consumption. 1t
] said that the government is study
IL ways ami means to prevent its
appening aeain--if so, ii has set
bout difficult task.
-oOO-
England announces she is prepar-
for a war of three years dura-
on.
However, there are some hopes il
lay be a relatively short war. I'm
lensely significant factor is that
his time none of the nations went
} war willinsly-they went grim ,
:. with worried faces. to do what
9th Germans and Allies think is
necessary and distasteful job.
hat attitude doesn't create senti-
lent for prOlcnging the glorious !
dventure."