Evening star., 1940-09-16
Far ar-Reaching Change
4 In Sight for u. ).
>Despite Neutrality
Twenty-Five Major
Developments From
War Listed
BY PAUL d. GESNER,
Associated Press Business Writer.

Associated Press Business Writer.
NEW YORK, Sept. 16.-The
United States stands neutral in a
war-torn world, but repercussions
from the conflict abroad are reap
ing kaleidoscope and far-reaching
changes in the domestic economy.
Here are 25 firSt-Water develop
ments which have been wrought
by the conflicting forces in world
power politics.:
beginning of $10,0O0,0O0. 900
United States defense spending
with the chances good that such
OUTLAWS in the next five or six years
may aggregate between $4,000 0O0,-
2 900 and S40000O0O 900.
2-Closing of continental Euro
pean market to United States eX-
port trade by the war and sea
blockade.
3-Dissolution of the 5000, 900 900
London peace-time import-export
market, in which the United States
shared handsomely.
4-Military conScription in the
United States. which will cost
around 100000 annually.
Suggest domestic steel produc-
ton in 10 years or longer to supply
needs in connection with home de-
fenSe. and fill British orders for
metal here which aggregate between
600. 900 and 100000 tons monthly.
Aircraft Records Set.
6-FasteSt aircraft production in
history, with plants expanding IA
cilities to produce $4,000 military
planes by April, 1912. of which $4,000
are slated for Great Britain and.
10000 for the United States.
7-One hundred per cent capacity
operations at machine tool plants,
turning out tools and dies essential
to preparing industries for making
of armaments. as we'll as usual
peacetime needs.
8-FaSteSt building construction
since 1929 as. new industrial plants
and adequate housing for factory
workers are sped in key industrial
areas.
9-Top production in armor plate
plants turning out materials for
new warShips to enlarge the United
States Navy.
Interpretation of continued
heavy surplus cotton supplies un-
less new foreign customers are found
to replace lost European markets.
11-Expectation of heavy domes-
tic storage of surplus wheat unless
new foreign customers are found for
our grains.
12-Expectation of dwindling
South American purchases in the
United States-Latin American
countries are reported lacking ade-
quate funds to buy United States
goods. due in great part to their
loss Of European export outlets, and,
consequently, foreign trade income
since the war abroad started.
Buying Power Rises.
13. Exceptation of broad increases
in retail buying as wider employ
ment and bigger pay envelopes for
mament production brings hike in
consumer purchasing power.
IA. Heavy 1941 automobile sales,
due to coming broadened defense
industrial employment-the major
market for automobiles is among
workers making $40 to $50 week,
the experts say.
Is. Continued low prices for gaso-
line, before taxes, due to closing OF
The foreign export market-gaso-
line supplies continue very heavy.
Is. Stoppage by Government order
IF all shipping on United States
Tag vessels in war combat waters.
IT. Widened purchase Of new
-"eight cars by the railroads to pro-
Eide adequate rolling stock for han
ding defense goods traffic. and per-
nit railway equipment companies in
coming months TO concentrate on
outtuYn of tanks, guns. shell cases,
and other defense needs.
18. Concentration OF over S20,000.-
100000 OF gold in vaults in this
country, much of it driven here for
safe haven by the war abroad
10. Building up of Government
reserves of strategic defense ma
terials, such as tin and rubber, in
case shipping at a future date be-
comes SO disrupted that movement
of such staples 10 our shores is
jeopardized
Markets Depressed.
20. Depression of speculative Sc
cO,,on,0Git,-
var uncertainties.
Il. Widcned plans for public utili-
lies plant construction to provide
adequate electric power facilities
rnder the yardstick OF defense
standards.
%. Growing tendencies to de-
Ccntralize key industries, moving
plants out of highly concentrated
factory locations, especially in costal
cities, to straegically scattered in
terror points, for reasons of defense
%. Rising home furnishings sales.
said, in part, to be stimulated by the
increase in marriages accompany
ing consideration of military draft
legislation in Congress.
"a. Scramble among private in
dustrial companies for skilled work.
ers to man machines in defense
goods production. AS a result, it's
expected the Government, through
Federal training programs. will play
larger role shortly in increasing
skilled labor ranks.
25. Expectation of higher taxes in
the future to pay home defense
costs.