The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1940-02-01
Economic +. d. :.


United States NaVy'S tremendous pro-
posed expansion plan-as embodied in
Representative Vinson's bill for ap-
|propriating $1,300,000,OOO for the
floating branch of our fighting forces
is designed largely to meet problems
that might arise if the totalitarian
governments come out on top in
Europe's and Asia's wars. If the
democracies win, the Admirals figure,
we will have nothing to fear-it is in
conceivable that England and France
would take up arms against us. But
if the dictators won, the United States
would be the only great democracy
left, and it would be surrounded by po-
ltential enemies.
This danger was brought frankly
into the news by Chief of Naval OPP
erations Admiral Stark, testifying be-
fore the House Naval Affairs Com
mittee on behalf of the Vinson bill.
The Admiral said: "What we have
asked for, which we believe for the
present will maintain the So ratio in
the Pacific (that is, five tons of u.
IS. fighting craft for every three tons
of Japan's), is not sufficient to defend
our home waters, the Monroe doctrine
our possessions, and our trade routes,
against coalition of Japan, Russia,
Germany and Italy,"
To the layman, the possibility of
such coalition of powers joining up
to sack us may seem remote, but navy
men are convinced that we must pre-
pare to meet it. And all you need to
do to get realization of the difficult
ties Of defending all our interests, is
to take a look at a map Of the world.
Primary area of defense will be out
lined if you will draw gigantic tri-
angle, running from Alaska to the
Hawaiian Islands, then back to the
mainland at Panama. Here we are
today supreme, so far as any military
experts can see-the great Pearl
Harbor Naval Base is believed ade-
quate to hold off any invader from the
East and, even if it were taken, the
enemy fleet would be so far from it's
bases by the time it reached the con-
tinent that it would be in no position
to wage a long fight. And defense
precautions are now being taken in
Alaska, including construction of air
bases. But beyond the area bounded
by the triangle lie trade routes and
other island possessions. The Phillip
pines, for instance, are some 5000
miles from Pearl Harbor, and theory
has it that no fleet can be highly eff
fective if it must fight over 5000 miles
away from major base of supply and
maintenance. Guam is in a similar
position, being only 1,5O0 miles from
Japan.
If we are to be ,aile to really en-
force the Monros-r. Etssarine, if and
when it is violated by some alien
power, the problem becomes more
difficult still. A vast southern fleet,
able to control the waters of Latin
America and northern South America
would be required.
This gives you an idea of the
strong arguments the big navy ad-
vocates can summon. On the other
hand, the doubters have good argu-
ments too. They say that there is
little chance of dictatorship over-run-
ming Europe. And, they continue
even if it does, the victorious totali-
tartan powers would be so exhausted
that decades would have to pass be-
fore they could hope to achieve any
success in going to war against us
and by that time any ships we might
build now would be completely obso-
lete. They point out that the cost of
building war ships, great as it is
doesn't end the financial drain by a
long shot-these ships are extremely
Expensive to operate and maintain in
fighting trim. And they feel that the
chance of the dictators ever getting
together, Judging by the differences
which have now appeared between
them Utaly and Russia, for instance)
is hardly worth considering.
SO, no matter what your own views
on naval expansion are, you can sec
that the groundwork is laid for d
first-class, knock 'em-down- and drag.
'em-out fight in Congress.
X X
The economists have been busy get.
!, ting out their forecasts of future
business activity. They think that
the spring decline will be very mod
erate--that it will be less than was
: forecast a few months back. Prices
they say, will hold firm, production
will sag but slightly, and sales will be
good.
So far as security values are con
cerned, most of the economists frankly
say they don't know. Practically al
of them think the stock market is go
: ing counter to what should be the
= trend, and is not at this time acting
s. as a reliable barometer of business
conditions and prospects. They ex
pect relatively little change in the
prices of grade A bonds.
1t is an old theory that an election
year is bad business year, but some
, doubt that will be the case in 1910