Evening star., 1942-01-25
Nation 5 Biggest Task
Is 10 Fill War Needs,
Jones' Report Says
Secretary Cites Progress
In Speeding Output;
Cooperation Stressed

Pointing out that only one-eighth
OF the goods and services produced
in the United States were going into
defense use at the end OF the last
fiscal year, Secretary Of Commerce
Jones, in his annual report made
pubr~ yesterday. declared the coun-
trys "one impelling task" is to in
crease this proportion to the level
required by the war program.
The bulk of the Secretary's re-
port was devoted to a review of
economic developments for the 12-
month period ending June 30, 1941.
I'm meeting the great demands
made upon us, 1t Is essential that
the new problems arising from the
intensive mobilization of our re-
sources be faced squarely and solved
promptly" Secretary Jones warned.
Usual methods must more and
more give way to speedier devices,
and the guiding beacon must be the
national interest. Decisions should
be directed toward the realization
OF the paramount objective-in-
creased output. The task before us
requires cooperation of business.
labor and consumer with the Gov
eminent"
National Income Doubled 1885.
The Nations economy, for the
first time in many years, during the
12-month period. gave an indica-
tion OF its full strength. Secretary
Jones said. Defense efforts were
the driving force behind the
economic upswing, which pushed
national income to a new high OF
$4,000 900 ,OOO-double that of the
1888 fiscal year.
In July. 1910, total defense ex-
penditures, including those made by
the British government, amounted
to approximately 100000 900, or 6
per cent Of the months gross prod
uct. BY June, 1941, the national
product had reached $4,000, 900 900,
of which defense expenditures ac-
counted for 81 200 ,000, 900, or 13 per
cent.
The expansion in national output
was due chiefly to the increase in
man hours worked. Secretary Jones
explained. Throughout the year,
non-agricultural employment stead
lily increased. with manufacturing
contributing the largest part of the
increase, about so per cent.
The labor force did not, of course,
turn out the increased national
product unaided" Mr.. Jones said
the marked increase in the utiliza-
ton OF existing capital equipment
and the tremendous addition of new
capital facilities also played signifi-
cant roles in the record output"
During the year, $1,000 ,0O0, 900 worth
OF new equipment and $500, 900 900
IN new plants were added to the
countrys productive facilities.
Business Profits Scared.
Net business profits, despite cost
increases, were the highest in many
years, Secretary Jones said. Other
significant developments of the year
were the rise in prices and living
costs, the changes in the pattern of
foreign trade and the shift of the
country to defense economy.
Exports of United States mer-
chandise totaled s4,043 ,000, 900, the
largest since 1929. while imports
were valued at $2,925 900 900. the
highest since 1897.
After making adjustments for
changes in the price level and the
increase in population, the 1941 ma
tional income per capita was 8 per
cent above that of 1929, measured
IN terms of dollars of constant
purchasing power, according to the
report.
Manufacturing contributed over
one-fourth Of the 1941 national in
come. an even larger share than
in 1929. Government, which ranked
In seventh place as a contributor
to national income in 1929, moved
up to second place last year, ac-
counting for more than l3 per cent
of the total. Employees had a larger
share of national income than in
1929.