Evening star., 1942-03-15
War Trend Ec|ipses
All Other Factors
For Business
Test Of U. 5. Troops
In Major Offensive
Is Anticipated
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March 14-The
impending test of armed strength
overshadows all other business con-
sidera cions. says Business Week in
its ANALYSIS of the business outlook
today. For today war is America S
business it is stated, and the move
nnents of armies as well as the speed
of production lines in the months
ahead will determine not only the
outcome of the Second World War
but also its length. For 1912 is the
year in which the United Nations
must either win or lose.
That fact this week overshadowed
such purely domestic developments
as the course of the tax bill, the
War Production Boards order to in
dustry calling for monthly reports
on conversion to arms work. the in
sistent demands of labor for wage
boosts in such a diversified group of
industries as steel. automobiles, tex
tiles, aluminium and mems cloth
ing; the Office of Price Administra-
tion's ceiling on pork prices as part
of its fight to curb imitation. passage
in the House of bill authorizing an
increase in the Federal debt limit
to SIPS .O0O.O 100000. which should
take care-for this year, at least
of the war costs. and finally the
continued decline in the stock mar
ket.
Major Test Foreseen.
Transcending all else in the buSi-
ness outlook is the further fact that
some time this year-perhaps sooner
than expected - American troops
will get a major test in modern
combat. either in Europe or the
Far East or both.
So far our forces have partiCi-
pated in rather limited land opera
tions, and those primarily defensive.
But with Japans position in the
indies being steadily expanded and
consolidated, with Germany getting
set for an assault against Russia
and the Near East, an offensive
diversion may become strategically
necessary for the United Nations.
Such an offensive might mean
large scale use of American troops
And then for the first time this Ma
ton would obtain measure Of
whether the Army has mastered the
technique of modern attack warfare,
embracing the simultaneous use Of
air, tank and infantry forces.
And that test, more than any
thing else. will provide an answer
to these critical questions: Can We
win? And how soon?.
W. p. B. Bears Down.
Meanwhile on the production
front the w. P. B. is putting the
screws on: it is not trusting to en-
thusiasm alone. The order to indus
try to report monthly on CONVEX
sion to war work indicates as much.
If companies have to make out writ
ten statements on their progress,
they are bound to step on it" to
make a good showing Similarly,
War Production Chief Nelson has
called on labor and management
ElOuHS III lllbN0ply W 4Cl"AG w
April / on just how far they have
gone in establishing Joint commit
tees to speed up production. Here
again Nelson is getting down to
cases.
The problem of price stabilization
end imitation control has been ia
ken-at least temporarily-ou of
Leon Henderson's hands. What the
National War Labor Board decides
on the Steel Workers Organizing
Committees request for a dollar-a-
day boost in Little Steel plants is
bound to influence the immediate
price trend.
What makes the labor price ques-
ton so critical now is that nu-
merous wage contracts are up for
negotiation during the spring
months. This coming week the Tex
tile Workers Union is opening ne
gotiations with cotton and rayon
manufacturers and-in keeping with
the times-is seeking a boost.
Indeed, it is possible that the
union may ask o. P. A. to raise tex
tile ceilings in order to permit mills
to raise pay. If that happened, you
would have the case of one labor
groups lowering the purchasing
power of all other consumers in
order to improve it's own purchas-
ing power through the price ad-
vance.
Incidentally. retail sales will prob
ably take a sudden, though tempo
rary, drop. Reason: March l6-"Tax
Monday"