The people's voice. [volume] (Helena, Mont.) 1939-1969, 1941-04-16
BY UNCENSORED

When Hermann Goering uttered his
famous remark about gums or butter"
some years ago, the issue was a re-
mote one for most Americans Too
many had forgotten World War prices
and priorities, and the stratagems
they employed in 1918 to procure an
extra pound Of sugar. Moreover, the
day when Goering spoke was in an
other era At that time Americans
had not yet been completely reab-
sorbed by European politics In this
spring of 1871 everything has changed.
Not only is the U. S. arming itself in
the midst of a world in arms and
taking daily steps toward military
participation in the war, but 1t has as
sumed the responsibility of arming
half the world against the other half
Consequently, guns are replacing but
ter in large sections of the U. S. econ
omy. To repeat the many ways in
which this grim choice could have
been avoided is Monday-morning quar-
terbacking at this late date. But to
point out how the consequences of
choosing guns can be minimized is
still worth paper and ink.
One of the evils of 1917-1920 was
the initiation born of exigencies of a
war economy Initiation already has
commenced this time, though it may
still be headed off Last week UNI
CENSORED explained how the choice
of guns over butter might result in
initiation by reducing the production
of consumer goods while the purchas-
ing power of consumers was rising.
An oversimplified but graphic picture
Of how 1t happens is the one given
by Bernard NJ Baruch, chairman of
the War Industries Board % years
ago. In the spring issue Of the Har
ward Business Review. Baruch, who
should know more about the working
of priorities than anybody else, illus
trates it this way:
If production is at an annual rate |
of IS billion dollars, 10 billion dollars |
of this may represent munitions. The |
public, therefore, is left only rs billion |
dollars Of consumer goods to buy with
its IS billions of purchasing power.
The result is inevitably rising prices
unless some restraints are exercised"
Unless, of course, the full industrial
and raw material power of the U. S.
were actually put to work - which
would have a disturbing effect on
monopoly economics. However, it is
no secret that new taxes, along with
the defense stamps and new baby
bonds which go on sale next month,
will be designed to curtail civilian
to finance arms production for the
U. S. and Britain. These measures
could be catalogued as modified
form of the famous plan for compul-
sorry savings which John Maynard
Kenyes used to propose for Britain
Nobody escapes the impact of an
arms conomy-whether it be sim
pie matter of priorities or whether
it includes initiation as an added fea-
ture. However, the impact is not felt
in the same degree by all sections {
of the population at the same time. {
Capital actually profits at first be-
cause armament profits come easily
in the early stages and mounting {
profits are a part of inflation's fatal {
ascending spiral" But later come
the mounting taxes-and perhaps a
final collapse. So far as initiation is
concerned, organized labor may ac- I
tually beat the game-for a while {
if it retains the bargaining power to s
keep wages in step with rising prices. t
The people to feel the full power of
the blow first are those with fixed '
incomes, such as pensions and annui- 6
ties, which can be increased only by f
legislation or by other even more diff i