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Show j ECONOMIC"; j HIGHLIGHTS j i i National and International I Problems Inseparable Great changes have taken place in this country since Pearl Harbor. Har-bor. New and unprecedented economic ec-onomic controls have been imposed. im-posed. A considerable proportion of the nation's man power has either entered military service or left peace industry for war industry. Very heavy increases in taxation have been applied to industries and individuals. In short, we have definitely movsd in the direction of a "total war economy." But, as many authorities are now pointing out, this is only the beginning and a comparatively compara-tively small beginning at that. Inside the next year, unless the world military situation changes radically and unerpectedly, , the adjustments that will take place in American life will be absolutely abso-lutely revolutionary. The man power situation is a case in point. High selective service ser-vice officials have recently said flatly that within about a year, the great majority of able-bodied men under 45 and over 18 wlil be in the Army, the Navy, the Coast Guard or the Marines. Already Al-ready the nation's reserve of 1-A men is about exhausted and in many areas draft boards are calling married men without children into service. By the first of the year, many boards will probably begin calling married men with children. Men who were pievioui-ly classified as 1-B (that is, handicapped by minor physical physi-cal disabilities) are being reclassified re-classified into 1-A and inducted It is believed certain that, directly direct-ly after the elections, if not before, be-fore, the draft law will be extended ex-tended to include 18 and 19 year olds- That, however, will not increase in-crease the 1-A class as greatly as might be anticipated, for the reason that a considerable percentage per-centage of the youngsters have enlisted with the consent of their parents. War industry has been told to start training draft-exempt people tc take the place of physically-fit technicians now employed. That means that a big share of war production will fall in the future on the shoulders of women, of men physically unfit for military service, and on men past draft age. That will require great readjustments, re-adjustments, and an immense expansion ex-pansion of vocational training facilities. fa-cilities. War .industry executives, in this connection, say that women have done surprisingly well in jobs that were once considered con-sidered the exclusive prerogatives of men, sucE as welding, wiring, pipe-fitting, etc. The new and strict "anti-inflation'' controls which the President announced on Labor day have long been expected. Inflation comes when consumer purchasing purchas-ing power exceeds the volume of goods available and that is precisely pre-cisely what has been happening to an ever-increasing extent in this country. Fast OPA price policy pol-icy was not adequate because many commodities were exempt from control, and because wages, farm prices and other costs continued con-tinued to rise merrily. Excess purchasing power led to the establishment es-tablishment of a growing "black market," which bootlegged proscribed pro-scribed or scarce goods to the highest bidder. Many economists are convinced that inflation cannot can-not be prevented unless the most stringent kind of restraints are placed upon wages and salaries and, in addition, wage-earners in the low income as well as the higher income brackets are taxed to the limit. Soon after the first of the year, widespread commodity rationing is to be expected. In most warring war-ring countries, a food or clothing ration coupon is far more desirable de-sirable than mere money, and that may come to pass here. The future of what is called "non-essential" business is shroud- ed in mystery. The official list of "critioal" and "essential" industries indus-tries is brief, and involves only businesses which produce war materials or basic civilian supplies sup-plies and services. The wnrst blow is falling upon small bus-i nesses which were unable for one reason o ranobher to adapt them-Felves them-Felves to war business or seiure war orders. Thousands of businesses busi-nesses have closed their doors, and it looks like a great many more will have to follow suit in the future. The small industry problem is one of the worst that war has produced, and no one, despite all the talk, has appeared with a solution. How far taxation will go is any man's guess. Some influential members of Congress are alarmed at what pending taxes may do to the American industrial structure flie proposed excess profits taxes, tax-es, for instance, might make it impossible or next to impossible for some big war industries to keep on operating as private enterprises. en-terprises. There is no question but what more and more legislators legisla-tors are reluctantly turning to the sales tax as one way out. And the enforced savings idea is also gaining headway. These are but a few of the revolutionary influences now at work. Never in history has war demanc-ed so much of the nation's money, resources, energies and man power. From an economic as well as a military point of view, this war is without precedent-It precedent-It is swiftly reaching into every home, and directly touching the life of every citizen. It is a rash man indeed who will forecast what the ultimate consequences will be. The convay system is working better in protecting merchant shipping in the Atlantic. Support Sup-port for that assertion comes, by intimation, from the marine insurance underwriters. The' other day they substantially reduced their insurance rates, after months of steady increases. According Ac-cording to the Navy, ship losses in August totaled 31 as against 63 In July. |