The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1940-11-14
Economic
M9hA9hA
Happenings That Affect the Dinner
Pals, Dividend Checks and Tax
Bills of Every Individual. National
and international Problems Insep-
arabic from Local Welfare.

huu liIcINdtlOHdI ITODleWS lnSep-
arabic from Local Welfare.
Near the end of October, a note
worthy event occurred. The Business
Week industrial activity index, which
| is one of the standard business baro-
meters, touched 1876. That was seven
tenths of a point higher than the pre-
vious all-time record, which was
reached during the week of July 27,
back in tabled and fabulous 1929.
What this obviously means is that
we are in the midst Of a boom-and
a boom that will undoubtedly reach
giddy heights before it is done. Equal
ly obvious, it is not healthy boom.
1t is based upon one thing, and one
thing only-war. 1t will stop when
war and war preparations stop. And,
like all war booms, it is inflationary in
tendency.
Dismissing that for the moment, it
seems clear that a period Of consider
able artificial prosperity lies ahead of
us. Practically all business will be
affected. Modern war and modern
preparedness programs call for an un-
precedented degree of national effort
For every soldier in uniform, there
must be half-a-dozen men or more
behind him in factories and supply de-
pots, producing, distributing and hand
ling the hundred and one articles that
today's soldier must have if he is to
be an efficient destroyer. In modern
war, in brief, the civilian population
is as much involved as the actual
armies in the field.
Some industries will probably ex-
pand at a tremendous rate during the
next few years. We have seen signs
of that already in aircraft manufac-
ture-the principal makers are work
ing "a hours day, are building new
plants as fast as the necessary labor
and materials can be obtained, and
have gigantic quantities of untitled
orders on hand. 1t was lately reported
that Britain will buy 10000 additional
military planes in this country, and
that our government will place orders
for an equal number.
Railroad carloadings will be going
up. Electric power output will neces-
sarily follow the surging industrial
production indices. And such basic
heavy industries as steel will find
their principal problem in figuring
how to keep output up to demand.
Normally, a great jump in pro-
duction such as this would involve gi-
gantic profits. That will not be true
this time. This year, for instance,
many industries expect that net earn
ings will be under the 1889 level, even
though production is substantially
greater. There are a number of
reasons for that. One is that COM
modify costs are rising. Still another
is that it will be necessary to put
larger proportion of gross income back
into plant facilities. And the most
important reason of all is taxes. We
are starting twenty or thirty-billion-
dollar arms program on top of
$45,0OO,O 100000 national debt, and in
the face Of the fact that Federal in
come has been under Federal spend
ing for eight years. The tax boosts
put into effect by the current Con-
gress are generally regarded as but
a modest start. 1t seems inevitable
that far larger increases will be
necessary next year and during the
years to follow. At the same time,
government will probably do all it
can to hold down prices of finished
products, and to force industry to alb
sorb as much of the higher costs as
it can. Profits must be adequate, but
they won't be great.
1t isn't pleasant to think of the de-
preston that, in the view of most
economists, will follow the war boom.
History shows us again and again that
prosperity based on arms production
is eventually disastrous. But force of
circumstance is forcing us to follow
the rest of the world in the race to-
ward military supremacy. So, until
business is going to be booming in
America
The "BattIc Of Britain" is at least
temporarily slowing in tempo. The
Battle of the Empire" has begun.
Starting point was Italy's invasion Of
Greece.
Whoever controls Greece, its islands,
and its many undeveloped sea and
naval and submarine bases, largely
controls the Mediterranean - Muss-
olini's "Mare nostrum." The Italian
attack on Greece is obviously designed
as the first step in carefully planned
Axis effort to destroy Britain's inhu-
ence in that area. If that attempt
should succeed, the Axis would have
taken a long step toward eventual VIC
tory in the war.
Whether it will succeed is the ques-
ton now. Best answers seem to be
that it will fail. For one thing, the
Italians, as in the past, have shown
themselves to be poor fghters-the