SiebenbuÌˆrgisch-Amerikanisches Volksblatt. [volume] (Cleveland, Ohio) 1917-1971, 1939-09-28
Economic Highlights

| wal uSHldHu, CONSIDERABLE time
must pass before commidity sup
plies are reduced to normal,
much less below normal. The
moral of it all is that the consum.
er has no immediate real worry
about greatly soaring prices.
Pr-ces will tend upward, un-
doHbtedly, and if the war goes
on long enough very serious
price problem could result. But
sudden price booms can only fol.
low mass hysteria. And the go
vernment has certain controls.
,lons-established, which can be
used effectively to curb pro6teer-
ing and conscienceless specula-
tior at the consumers expense.
Second, what about the effect
OF ,he war on business There is
no need to go into the armament
pic:ure here-if, as the President
desires, the arms embargo is re.
pe2lcd in favor of the cash-and.
Carry plan, the munitions indus.
tries, and the basic industries
suppl lying their needs, will OBJ
viously boom. The outlook for
other business is highly variable.
For example, prolonged war
would create an Unsuitable Bri-
tish-French demand for wheat.
hides. wool and similar necessi.
ties. The producers of these com.
mod'ties would find unlimited
markets and good prices, and
they and their areas would pros
Pc.
Foreign consumption of Other
commodities. not so necessary tn
the prosecution of war, would
decline. Cotton and tobacco ara
cases in point You can live a
loEg time without either of these
commodities, but you cannot live
without grain. The result is that
the cotton people. who have long
faced a drastic problem of rising
surp'uses and narrowing forgeign
markets, may be struck another
severe economic blow. This
would be as disastrous to the
South as the boom in wheat
wonld be beneficial to the plains
states.
ON top of that, lol4-lS ex-
| peri"nces indicates that even at
home in a neutral country peo.
pie buy less in war time. Thev
make their clothes last longer,
build fewer houses. as a result of
unc -rtainty as to the future. And
certain industries suffer.
Thus. the economic effects of
the war are regionally very diff
terent-it is possible that one
SECTION of the country would un-
derso a severe depression while
another section a thousand miles
away experienced an inuated
prosperity.
One thing to remember-war
boo:ns are entirely artificial. They
strain the resources of neutral ex-
porting powers to the utmost il
theu last long enough. and when
the war is over. the most drastic
kind of location must soon re-
suit. That happened to us last
time when wartime demand had
developed our productive facilities
far Beyond any conceivable peace
time consumption. 1t is said that
the government is studying wavs
and means to prevent its happen
ing dsain-if so, it has set about
a difficult task.
England announces she is pre-.
pared for a war of three wears
duration.
However. there are some hopes
it mav be a relatively short war.
Immensely significant factor is
that this time none of the nations
went to war willingly-they went
grimly, with worried faces. to
do what both Germans and Allies
think is necessary and distaste-
full lob. That attitude does not
create sentiment for prolonging
the GLORIOUS adventure"