Evening star. [volume] (Washington, D.C.) 1854-1972, 1944-01-02

IS calling on American industry fol-
continued top production in the
new year.
Nevertheless, there seems to be
little question that if Hitler is
licked in 1914. there will be some
far-reaching changes made in the
production picture.
For one thing, it will not be nee
essary to supply so vast an army
of ground troops as We now need
Then again, we will mass oui
fighting ships and planes in the
Pacific for an about war on Japan
instead of spreading them over the
globe, and it is probable We may be
able to ease production in many
lines.
Leveling OF Indicated.
Even as the fighting in Europe
intensifies, there is some indication
Of q leveling of in a few branches
Of war industry, such as the recent
decision OF the Maritime Commits
sion to end Sunday work on cargo
ships and discontinuance by several
plants Of the manufacture of small
arms and ammunition.
Estimates of the cutback in wal
production which would follow Ger
manys defeat vary. One economist
puts 1t at 80 per cent. Others say
1t would be nearer Is per cent.
In l943 the Nation produced ap-
proximately $4,000 600, 1000 worth OF
war goods. Overall industrial pro-
duction was climbing toward three
times as much as the country's out
put average for 1935-l939.
The aircraft industry. for instance
turned out approximately $4,000
planes, and as the year drew to a
close production was at the rate of
100000 planes year. In 1889 we
made only $500 planes.
Vast Naval Construction.
Merchant ships estimated at 49,.
600, 900 tons left the Nations ship.
yards, and naval construction was
on such vast scale it was fore
cast that by July, 1914. the United
States Navy would have more thar
41.000 vessels, representing almost
20 times the 2.136 it had in July
1941.
Production of steel, aluminium
copper and other vital necessities
of war was on the same high level
In spite Of four strikes in the coal
industry which temporarily slowed
industrial operations. In the Ions
run, the output of bituminous coal
vital to industry, was not too fal
under the goal set by Solid Fuel.
Administrator Ickes. The bituml.
nous Coal Institute estimated 1874;
production at 583, 1000, 900 tons; Ickes
had asked for 100000, 900.
Payment for all this torrent Of
war materials boosted the nationa
income over the $4,000 900 O0t
mark. The aggregate of corporate
and private savings bulged toware
$l00, O00, 100000, a tremendous res.
ervoir Of buying power for postwar
years.
Taxes, boosted five and six or more
times prewar levels, siphoned of
something like $4,000, 600, 900, but
this was still below the Govern.
ment's original goal of paying Al
least half the war cost in taxes.
Pay-Go Tax Begins.
The Nation went on a pay-as-you.
go tax basis and millions of new tax.
payers were added to the rolls. Sec.
rotary Morgenthau asked for So.
500, 100000 in additional taxes, put
Congress chopped this down tt
around $4,000. 100000.
To help pay the cost of the war
the Government borrowed nearly
$40, 900, 100000 in the Second anc
Third War Loan drives and an
nounced fourth for January, 1914
The national debt passed $4,000
000, 900.
Despite sharply curtailed civilian
economy, buyers with war fattened
pocketbooks sent retail sales to the
historical peak Of So billions. Manu-
facturers, although plagued by short
ages in manpower and raw ma
terials, produced an almost un-
believable amount of merchandise
for the Nations storekeepers.
The New York Stock Market, rid
Ing the crest of the mounting pro-
duction wave. was on the upgrade
most of the year. until peace psy-
chology" brought prices downward
in the closing months of the year
after they had reached their peak
in mid-July.
Imitation = Problem.
As the year drew to a close the
biggest problem confronting the
Government was that Of imitation
The owl issued report saying the
tsee CONVERSION, FaSs -