The Waterbury Democrat., 1942-12-07
Heavy Goods Industries Set
 New Records
nrnited Press Financial Editorl


 New York, Dec. 7-(UP)-Amer- ican industry in the year since Pearl Harbor has been transformed to . complete wartime machine turning out record amounts of steel. airplanes, munitions, ships, tanks, and other related equipment.
 Tlse transition has been at the expense of consumer goods indus tries which have been shrunk as the war program expanded. sup piles of purchaseable goods have been cut down while payrollS have risen to record highs. To prevent those with cash from bidding high pricss for the available supplies, the government has introduced re- strictions, including rationing. high taxes, and price ceilings. And more are to come in l943.
 Industrial production stood at l66 per cent of the l935-l939 average when Japan attacked Pearl Harbor. Today it is at a new all-time record of is8 per cent and steadily rising. Employment which stood at 4l,S75,- 900 on December 2, l94l, is now well above 5s,00O,000. Unemployment has yanished and in its stead is an ad- cition to the working force of near ly 100000 persons not ordinarily classified as part of the working force.
 Steel Output at New High
 Steel production has broken all records. Rate of output when the war broke out between the United States and Japan was 976 per cent. By the beginning of November, this year, 1t had reached l0l.l per cent of a higher capacity figure. Other heavy goods industries have made similar gains. Electricity output reached new records. Construction, mainly for the war plants, reached all-time highs, 50 per cent above last year which in turn broke all former records. Car loadings on tonnage basis have set a rev top
 First reactions of the markets 10 the war declaration were declines all along the line. The lows in the stock market were touched on April 28. this year. Thereafter a steady recovery set in lasting until NOV 9 when the market turned down on the usual year-end influences mainly selling to establish tax losses and gains.
 The Department of Commerce estimates that total of 9,7OO,0Ou persons must be added to the man. power force between July, i942 ano December of l943. Of this amount 4.SO0. 900 will be to increase the armed forces; 4,100,000 for manu- featuring and mining: 100000 TOT transportation and utilities, ano coo 900 for other lines. These Will be drawn from the following sources HOO. 900 from construction indus tries: 100000 from trades and serv' ives: 100000 now self-employed 100000 from agriculture: l,8OO.0l from reduction in unemployment 100000 from natural increase 1T labor force, and 3,900,000 from ex' traordinary accessions to the laooi force required from non-worKel groups.
 See 63 Billion Deficit
 Monthly war expenditures have steadily been mounting and ar' now around S6000. .000, ,000. Tht fo42 revenue act and prior legisla' ton are estimated to produce aboul S2I GOO. 100000 revenue for tht royernment's fiscal year ending June 30, 1943. Total budget ex uenditures are estimated at ESQ., l5DO .000. GOO and non budgetarl expenditures at $5,000. .000, 900 SC nat there is expected a fedora deficit of s63.000 100000 for th' flscal year. This is four times thC deficit in 1919. The public deb ix now near the $loo.00O 900 marl ar,d 6 expected to cross $l5O.OOO,' 0o0,0O0 before the end oi June
 Hieher taxes are anticipated fol sarly next year, including com ns,lsory savings pian, and a sal <ax Present taxes include VIC 4crv tax of per cent ot wages ane zalsries to be withheld by employ IF. Corporation excess profit fewes are placed at 90 per cent witf z 10 per cent kickback after th' T1,a Treasury is attempting tt 6ssI,nn off excess spending power " faxation to prevent imitation <saassu,s1ile. the government financ' IFS nf file war through banks to g inFue extent is said to be building x esnnutic imitation potential that ssar hs a major problem after the