The Waterbury Democrat., 1945-01-03
BY JESSE H. JONES
 Secretary of Commerce Written for NEA Service

Washington, Jan 3-Nineteen for ty-four was year of real achieve ment in both the military and econ- oInic spheres, testifying to the strength, vigor and determination of this country and it's Allies. This year of large-scale victories, the year in which we continued to enlarge and transport our huge Army and Navy, was also year of sustained produc- tion at the highest volumes ever att tained. Not only were astounding numbers of weapons of war turned out and our support to the Allies in- creased, but this was done with out significant deterioration in the general standard of living.
 The experience of the last year has many implications for the fu- ture. This is the first time in his tory that we have achieved so high a degree of utilization of our re- sources. In looking to the postwar years we do not intend, nor can we afford, to go backwards. The sights for the future must be set with the achievements Of the war years in mind.
 Industry and labor responded to the military needs by producing one-eighth more munitions in 1914 than in 1943. The gross national product is estimated at $l97,00 ,000,- 900.
 The development of the mili- tary campaigns, experience in &C., ton, technological innovations and other factors caused the creation of new, urgent programs requiring i'll a short time greatly increased pro- duction of selected items of combat material. Undoubtedly further new requirements will arise as the war develops, requiring all our energies to boost production of special types of material-and we will respond to these future needs as well as we have before.
 DEMANDS MET
 Most striking evidence of the wealth of our resources was the ability of the economy to supply at the peak of the war effort much larger volume of consumers goods and services than in pre-War years. The diversion of resources for war naturally prevented the meeting of all consumer demands created by the high income of recent years. The remarkable accomplishment, how ever, is how well these demands have been met.
 Consumers expenditures for goods and services were approximately $e7 O,O0OO00 in l944-6 per cent above the preceding year, and more than half again as much as in 1889. Increased prices accounted for portion of the gain in expenditures. Tie high volume of consumer eX- perditureS has meant record busi- ness and profits for retailers and other distributors, just as govern ment purchases and this same con- sumer demand resulted in similar records for manufacturers.
 The economic outlook for l945 is conditioned by the size Of gov ernment expenditures. These will CDIlLIlue very ldl 6C uAAASA "A.y circumstances, but they may drift lower. Business will be good and profits high.
 Our goals for the future are clear-high employment and an ever-increasing standard of living "rtk.ir. tEe framework of free en- terprise system. The experience of the past three years has proved what is feasible when the demand is underwritten by war. As the gov ernment leaves the market, however, there will be large gap for busi- ness to fill. The magnitude of thls gap will bC enormous as final mili- tary decisions are reached. The plans made and steps taken in l94o by government, business and labor will play an important role in the final attainment of our aims.
 While optimistic on the potan- tialities of economic progress. 1t is important also to be realistic about the problems ahead. Vigor- ous action, sound planning and the discarding of outmoded preconcep- tions are necessary in order to maintain the flow of income and
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