The Daily Alaska empire., 1940-01-03

 and public works.
 Industrial production came up
 close to 1929 levels by the
 spring Of 1937. A speculative
 "bccm" was feared. Strikes
 swept through automotive, steel
 and other industries. Govern
 ment spending was curtailed.
 Bank reserve requirements were
 increased. Autumn of that year
 saw an abrupt relapse in in
 dustry and speculative mar
 kcts. Business began to revive
 in the summer of 1898. as the
 government adopted new
 "spend- lend" program.
 The threat of war in Europe then jared the American economy, to be banished, briefly, after the Munich pact of autumn, 1888. It arose threateningly again early in 1889, with Hitler's absorption of Czechoslovakia. After some hesi- tancy, however, business began to improve again in the summer.
 Actual outbreak of war in Sep tember, instead of precipitating panic conditions as in 1914, brought pack visions of the World War boom, at least of rising prices. Merchants and manufacturers hast ened to build up their inventories. Industrial production in the Unit ed States came up again to 1929 evels, with ingot production in the great steel industry surpassing all previous boom time records.
 Millions JoblegS
 But despite the quickening Tn in- dustry, America faces 1940 soberly Some 8,000,000 or more remain un- employed. (More than 5,000,000 new workers have become available since 1929).
 The private capital pump has not been effectively primed. The national government debt has risen more than 20 billions during the depression years, and its deficit spending has lately been running around quarter of billion month. New capital raised in the secur- tiles markets the past year came to only about $365 100000, com pared with an average of 5la bil- lions annually in 1925-29.
 Huge surpluses of farm products remain in warehouses, and pros perity prices for the farmer still are not in sight.
 Outlook is Good
 Despite the widely acknowl- edged gravity of the problems fac ng economic America most busi- ness men looked for at least fair ly good year in l940.
 The hazards of war, and the
 uncertainties of the impending
 national political campaign,
 made predictions difficult, yet
 many analysts say that the inn
 petus of the autumn and early
 winter acceleration Of manu-
 featuring and trade should
 keep wheels spinning well into
 the new year.
 Some warned that inventory ac- emulation might bring a fresh slump, but thus far available sta- tistics are interpreted as indicating that supplies of goods generally are still far from burdensome.
 Heavy industry, such as railroad equipment and industrial plant building, laggards in previous re- covery efforts, have shown some sharp stirrings.
 The effects of war on industrial price levels have been minimized, and corporation financing. in the securities markets, brought to a standstill in the early weeks of war, has been resumed on a small scale.
 U. s. Gets War Orders
 Althoug buying of war na- Jerials by belligerent powers out side of aircraft and machine tools has not amounted to much, most of the experts agree that fair volume of business is bound to come to American factories, both from belligerents and neutrals whose former sources of supply have been interrupted.
 The Federal Reserve estimated that the Allied powers at the end of August had bank deposits, se- curities and gold in the United States worth s8,440, 100000, pro- viding a substantial basis of pay ment
 The very fact that Americas factories are once more turning out the largest volume of goods since 1929. brings hope that once more the various wheels of the na- tional economy may be coming into mesh.
 THE MEMBERS of Host tribe" living on Chimney Rock in Ruth erford County, North Carolina,