Detroit evening times., 1945-11-20
BEHIND
.THE NEWS
BY Paul
Mal4on

WASHINGTON, Nov IS The
w course of business continues
10 run counter to the positions
taken by some of the nations
leading political factions.
Here you hear continuously
expressed worries about defla-
tion. lack of purchasing power
among the people, widespread
unemployment, impending de-
preston and whatnot.
This worrying of course, IS
built up to push the full en-
ployment bill for a permanent
spending policynn a government
which is already spending sew
eral times the amount Mr.
Roosevelt spent in his utmost
years.
But the purchasing power OF
the people, as anyone can zee
who goes into a store these
days. is not only beng MAN.
tanned at terrific pace, but IS
growing stronger. You can con-
firm this rather clearly visible
fact by statistics.
IN NEW YORK, department
L store sales for the week
ending Nov. II were 20 per cent
above last year, in Boston 10
per cent greater; Chicago up Z
per cent: Cleveland, 10 per
cent: Atlanta. Is per cent;
Kansas City, Is per cent, MIN
neapolis. IL per cent. and In
san Francisc heavily in
creased" according 10 Federal
Reserve Board reports.
ST. Louis was reported about
the same and one or two cities
suffered a decline as compared
with year ago, but all the
others were not only ahead Of
last year but ahead Of the week
before.
The increa Sc d purchasing
power in other cities was OBJ
-vIOuSty GvGn greater because the
national average was up l9
per cent.
If anyone wants 10 worry
lcCitimatcly about purchasing
power. it looks like he had
better worry about il running
too high into initiation, in view
Of the shortage Of goods and tho
delay of the nation IN reaching
full production.
The deflatlon argument has
r a h or obviously been over
stressed 10 the point whore il
has actually become a mjsgmd-
ing influence in the economic
planning of the nation.
VHE high-powered propaganda
l. organizations trump up these
economic fictionS at times tor
legislative or other purposes
without thinking of the -eonSc-
quences of their deceptions on
the public
SO also with the general buSi-
ness index. The graph line has
been running up and down
weekly in a rather dizzy manner
such as you see presented IN the
comic supplements, but II has
been working gradually lower.
Yet. with all the strikes, de-
lays in rCconVerSlon and other
setbackS. il IS now roughly,
months after the war. only 10
per cent off from the year s war
peak. Certainly II furnishes no
solid ground Yet for worries
about depression. Personally l
was amazed TO find It as high as
it is.
OF course. no one can know
about the future for certain. but
certain economic clements are
visible TO give us a guide Tor
sound expectations.
The decline should gradually
work lower for a few months
until ~ oduCtion gets INTO swing.
Certainly, with all this pur-
chasing power in the hands OF
the people. II cannot decline be-
yond that point.
HERE now we have great pur-
IL chasing power dlscernlblc,
we have a shortage of goods and
We have vast pOtcntalltleS OF
production.
To me. these seem 10 make the
ingredients for stable economy
at very high level for many
years 10 come.
I say many years because
these elements should all be
present for that long a time at
least.
II is a we'll recognized fact that
we cannot possibly pr o d u @
everything every one needs Tor a
long time
There are many coIntcr-ele-
mcntS visible which could break
IN these expectations. One is
initiation. You hear people say
they are afraid Of what IT I'M
pcndS.
4 CTTALLY ve arc in a condi-
n ton Of price initiation due
10 purchasing power which Is
T really excessive when measured
with the shortage of goods
II seems then. that TIE sound
est cause for genuine worry IS
that the great forces of propa-
gllda VIII exert their Influences
30 increase purchasing power