Evening star., 1940-05-17
Bi|Iion.D Dollar Defense
Program Expected
To Spur Industry
Roosevelt's Economists
Predict Production
Pickup by Midsummer
By the Associated Press,

By the Associated Press.
Administration economists pre-
dicted today that President Roose-
velts billion-dollar defense program
would have q substantial stimulating
effect on American industry by mid
summer.
At the same time, they prophesied
that 1t would make little change In
w. P. A. rolls, because millions Of
unemployed men outside relief ranks
may get first call on the new private
jobs.
Employment for billions Of dollars
OF idle money in banks also was
envisioned, as officials indicated that
Treasury borrowing probably would
be the principal method Of financing
the new program, even though it
might involve increasing the $45,.
600 0,000, 900 debt limit.
Immediate Pickup Expected.
one economist, who is q frequent
consultant Of the President, said his
colleagues believed that business al
ready was recovering from the slump
which set in after Christmas and
We're optimistic about the years out.
look even before the new defense
expenditures were requested.
He added that, while some phases
OF the Presidents program might
take many months to get under way.
Mr. Roosevelt had suggested a num-
Der OF activities which could be
translated into immediate work.
IN shlpyards, airplane factories,
motor factories, parachute plants
and munitions plants, this econo-
mist said, the pickup should be
noted quickly. In such places, he
explained, work won't have to wait
altogether on building new factories,
because the President contemplates
doubling or tripling the shifts al
ready at work.
The Aeronautical Chamber of
Commerce said in New York that
expansion of the aircraft industry
to produce $4,000 warplanes a year
was relatively q simple matter"
involving a threefold increase in
personnel.
Construction Gain Expected.
Later on, Washington officials ex-
planned, there will be much work
for other kinds Of laborers, such as
construction workers needed to build
new factories or annexes to existing
ones. Labor officials and Govern
ment sources gave assurances that
the Nations supply of skilled labor
was sufficient to handle the pro-
gram.
Steel and other important ma
terials to go into the new planes and
shells and tanks can be ordered
almost Immediately, SO that they
will be ready by the time new
factories are erected to fabricate
them. 4.,,~
Some Of the proposed steps viii
take small amounts Of labor out of
the labor market, such Is the enlist
ment Of mQre men for the Army
and the sending Of thousands Of
others to aviation schools.
Besides industries plainly allied
with armaments, officials cited q
number Of others which might
benefit. For instance, the Presidents
recommendations call for the pur-
chase OF huge quantities of blankets
and similar items normally produced
for civilian purposes.
Foreign Buying Continues.
To date, Federal economists point
ed out, the only real stimulation to
business from the war has come
from foreign customers, particularly
the allies and Latin America. These
heavy purchases are expected to
continue and to be supplemented by
the United States Governments
orders
American factory production, as
measured by the Federal Reserve
Boards index of industry, was sag
ging at 90 a year ago. Slight i'm
provement was made during the
summer, but when the war broke
out speculative production and or
ders boosted factory output to a