The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1940-12-05
GEN RAJ
HUGH S.
JOH N SON
..ydHc:.
wNU Srss
Washington, d. C.
CURRENT TRADE PICTURE

AASiiiAS oJ obClii III oWiiSli6 INV GA
upward surge of consumption, pro-
duction and employment. AS those
statistics do not show, we amt seen
nothin' yet. Neither the mere ap-
preparation of federal money, nor
even the letting of contracts pro-
duces these results. They come
from the actual out-pouring of
money in payment by the govern
ment for goods delivered, or by con-
tractors in preparing to produce
those goods. This process has
scarcely started. Yet it has already
resulted in a vast unemployment,
not merely in the war industries,
but in all industries to which the
increased payrolls trickle down to
supply all those human wants so
long deferred.
AS this column has tried to show
from studies of our experience in
the World war and the experience in
other countries, this is SNOWFALL
rolling-doWnhill process. We have
started it. There are ways-not of
stopping it-but of regulating and
controlling it. If it isn't regulated
and controlled it could create COM
plete and explosive disaster.
Let's skip that for a moment.
The point to make just now is that,
judging from results of meager
spending to date, by next summer,
American business-all of twill be
running at the highest rate it has
ever known. Beyond that, and de-
pending on the course of war, which
no man can foresee, the sky is the
limit. So what?
Let me quote from a UP dispatch,
recent colloquy between Robert
Garner, a banker, and Rex Tugwell,
the administration "spend" enthusi-
asst, who was dropped into a fox
hole until after election, and who
now emerges unabashed.
"Garner-If the administration
knows how to create employment,
why hasn't it done so in the past
eight years?
"Tugwen - 1t always required
from II to Is billion dollars of gov
eminent spending year to do
the job, not two or tire billions.
Interruption by Thurman Arnold
DO you mean that, from an eco
nomic point of view, it's a grand
war?
"Tugwell-Yes, if we don't get
into it,
In other words, this necessary but
hectic war extravaganza was our
only way out. 1t was Hitler's way
out-absorb his unemployed by the
forced draft of vast industrial re-
armament, labor battalions and into
the army, navy and air force. It
worked to the point where it could
work no longer without war-'ex-
port or die, conquer or die"
For century it was truly said:
''The principle business of Prussia
is war" But modern war is no
longer good business. 1t costs too
much in capital investment to leave
any room for revenue. 1t destroys
too much of the conquest to make
the game worth the candle.
A people prosper when their Ia
DOIS CIGdIS pIOOuCLIOIl lOI tIlSlr use
and the instruments of greater pro-
duction. War production is not for
use but for destruction and for Gre
ating instruments of still more de-
struction. 1t may bring momentary
industrial activity and employment,
but that blows a bubble the very
existence of which depends wholly
on greater wars or the threat of
them.
If peace came tomorrow and his
industrial war bubble blew up in
Hitler's face, the whole economy of
Germany would collapse in greater
unemployment, bankruptcy and des-
peration than her people have ever
known. If, without proper wisdom
in controls and regulation of our war
effort, we gear up our industrial ma
chine in complete dependence on the
continuance of war, we shall be in
exactly the same position.