Evening star., 1940-06-09

Spurred by a realization that 4 Nazi
victory over France and Britain would
present serious threat to New World
democracies, Congress is speeding action
on the emergency national defense pro-
gram. Including amounts previously
voted for the Army and Navy, national
defense appropriations this session will
run close to $4,000, 100000. Though the
equation has many imponderables, Fed
eral economists seem to be in substan-
eial agreement on one point-the huge
Increase in Government expenditures for
armaments will dominate the business
picture for many months to come In
employment, in higher national income,
In increased industrial production and a
possible development of new industries,
the arms program will have important
enects on our national economy.
Geographically the expenditures will
be widely distributed. Though large
part of the Nations industries are To-
Gated in the North Central States, other
sections also have many plants, fac
tories and raw materials that will be
used in the manufacture of armaments.
Alrplane factories, for example, are
scattered from Paterson, N. j., to South
ern California. Hundreds of individual
Items go into the construction of a mod
ern battleship or cruiser
In addition to labor at the site, war
ship construction produces employment
IN the industries supplying the many
materials needed
Under the emergency arms program,
the United States will build an air feet
second to none. President Roosevelt has
asked American industry to turn out
10000 alrplanes year. This will mean
the expansion of existing plants, the
establishment of new factories and per-
maps the diversion of some automobile
and other plants to the manufacture of
srplanes and accessories. To provide
homes for workers in aircraft production
centers, new construction may be needed
IN many places, for the aviation indus
try will employ thousands of additional
mechanics and other workers
Planes an Economic Force.
In addition to aviation, other indus
tries will directly benefit by the Govern
ments arms expansion program Among
these are the metals and Woodworking,
machlne tool, machinery and shipbuila-
ing industries. In providing equipment
for the Army's mechanical and motor-
lied units, the automobile industry also
Will contribute to rearmament
With their increased personnel. the
Army and Navy will buy more clothing.
foodstuffs blankets, pup tents and can
teens. The economic effects of such
purchases as these will be less, however,
than the stimulus given the so-called
heavy goods industries through the con-
structlon OF warshlps, tanks, field guns
and so on. The American people buy
about 4000O0,oOO pairs of shoes a year.
Though the Army and Navy will buy
more shoes, the additional purchases will
represent but small factor in national
consumption. A sudden increase in the
popularity of hiking as an outdoor rec
reatlon would give the shoe industry a
bigger boost
How much employment will the new
arms program create? Federal experts
are now seeking an answer to this ques-
lures are revealed, they will be unable
to answer this question with any exact
ness. The average wage of workers in
American industry runs about s25 a
week. Using this wage as yardstick,
the expenditure of a billion dollars
would give employment to about 85O,OO0
people, If two billion dollars are spent
on national defense enterprises during
the coming year, over and beyond the
amounts provided in the January budget,
the preparedness drive therefore would
create employment for about 100000
persons.
Other Factors in Picture.
Other factors, however must be given
due weight. One of these is the speed
with which the appropriations are &C
tually spent. 1t may be year, perhaps
longer, before all the money appropri-
ated by Congress will be translated into
armament orders The amount of en-
ployment varies, too with the type OF
expenditure. Until a complete break
down of the proposed expenditures is
available, estimates of employment may
be wide of the mark
That the arms program will provide
hundreds of thousands of new Jobs is
nevertheless certain. The Navy alone
by $4,000 workers, most of them in Navy
yards and shore stations. Unemploy-
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