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Show Tuesday, August 1, 1950 PAGE TWO WEEKLY ECONOMY: NEWSANALYSIS American Troops Continue to Withdraw Slowly in Korea; Mobilization of U.S. Manpower and Industry Forecast As the Korean battle went Into the fourth week it became apparent to every American that U.S. troops (Editor's Netei Whea pinions art eelsmns, they expressed (aof IbtH art thosenews WtstoraandNewspaper not necUnion's analysts essarily et this newspaper.) were taking a beating. They were outnumbered; tanks were inferior and too few; guns and bazookas could not pierce the armor of the Russian made tanks. They were pinned to foxholes by tanks, artillery and morri " tars; - overwhelmed by . massed infantry, sniped at from the sides and rear by infiltrating columns. Taejon, provisional capital of South Korea, was abandoned after the Kum river line was broken by thousands of fanatical Communists wno charged American positions without regard to casualties. They overran first aid stations, killing patients and chaplains, and for every one the Americans killed, ten took his place. American forces began a slow withdrawal which appeared would Lt. General Walton II. Walkhalt some 35 miles southeast of er, a tank expert from Texas Taejon where a range of hills ofcommander of the Eighth and position. fered a natural-defens- e Army, has been named to the Whether or not they held this ppsi-tio- n top command post in Korea. would depend upon reinforceWalker gained fame as comments and the continued flow of mander of the 20th corps In guns, tanks, and ammunition. Pattons Third Army. No matter how optimistic a view an observer was inclined to HOME FRONT: take, the situation appeared serious. As has often been the case in Controls Likely the past, Americans greatly underObservers on the home front are rated North Koreas military predicting limited controls to back strength and fighting determination. up an intensified military campaign Facts --of , ,the,;ituation indicated: ' North Korea had 10 to 15 divisions imKorea.., At this writing the controls had 100,000 to 250,000 men, with renot been asked for, but observers placements handy from the armies of Communist China when needed. pointed out that At least 200 tanks, with replace- action, was becoming more urgent ments also available from Russia, with each day. They predicted and almost unlimited supplies be- President Truman would ask for hind the lines in Siberia and in them within a very short time. A request for higher, taxes, to Manchuria. United States would need eight cover an expected jump In milifull divisions, perhaps 250,000 men. tary spending, was held to be inThe inadequate supply of tanks and evitable. heavy artillery in the Pacific would Government officials were prehave to be remedied. President dicting privately The one bright spot in the picture Truman would ask congress:. was the work of the U.S. air force 1. Power to allocate by volunwhich had knocked out tanks, means, or more drastic meabombed and strafed troop concen- tary sures if necessary steel and a few trations and supply lines, and driv- other basic metals. en the North Korean planes from 2. Authority to put quantity ceilthe air. But military observers pointed ings on the production of automoout that air power will 'greatly in- biles, television and radio sets and crease the chances of victory, but other civilian products consuming the Korean war, as has been the large quantities of metal, so that will be won by the the demands of these industries will case In all wars, v not interfere with arms production soldier who fights through mud or create a gray market in and rain and cold and heat. The foot soldier has not been replaced prices. 3. Restoration of consumer credit with push-butto- n warfare, as yet. controls. By tightening up on credit for automobiles and EDUCATION : other consumer goods, it is hoped No One Flunks that some of boom-levbuying deA new trend in education 100 be mand removed from the percent promotion of pupils in the market.may lower grades is reported by edu- Korea Commander 12-ln- ch i - s -- anti-inflationa- ry . that easy-payme- nt el cators. Educators wont come right out and say no one flunks any more in the lower grades on the ground that some elementary pupils still need the threat of failing to spur them on, but its truerthai fewer are flunking. The new trend seems to be based on four points: 1. Little is learned by repeating. 2. Failure merely discourages and does not aid pupils. 3. There is no ; reliable way of determining failures. 4. Real failures cannot do the work, no matter how' . often they re- - 'peat. ' This Is a long jump from the days of reading, writing and arithmetic and the rule of the hickory stick. The educators sum up their re- port: Nonpromotion is an admission of an inadequate school program and has no place in a school where children are motivated properly and work to the level of their capacities. What is looked on as a pupil failure may be a teacher, supervisor, or administrator failure. SOVIET UNION: An OliVe Branch Although no official announcement has been made, it is believed in many quarters the Soviet Union has offered terms for settling the Korean war. It is a bloody and wilted branch the Russians are holding out to the United Nations. After the sugar coating of diplomatic language is penetrated, lt seems Russia would be willing to call off the affair-afte- r China Is seated In the United Nations. Most observers agree lt is nothing other than international blackmail on the part of Russia to the war weary peoples of the world. And many remember the Russians are not very good at keeping their word even if such an odoriferous proposition was accepted. However, no one sees the possibility of such a settlement. Such an agreement would undermine the United Nations to a point of total collapse. The pals of the Kremlin have forgotten one of the great virtues of this nation it will not be bullied or blackmailed. In what observers believe to be in one of the strangest line-up- s Many observers are wondering if complete mobilization of this countrys manpower and industrial strength is in prospect for the nfear future. Some believe it is, unless the world situation takes a sudden and unexpected turn for the better. Within a matter of hours after this writing, Prfsident Truman was expected to go before congress and outline for th$ American people steps deemed .urgent to cope with the Korean war. He was also scheduled to speak over a nation-wid- e radio hookup and tell Americans just where we stand. One official' predicted the President would: 1. Request new military funds or contract authorizations totaling $5,000,000,000 to $6,000,000,000. modern political history, the house killed, 210 to 134, the proposal that would .have m a d e a presidential election more nearly reflect the popular vote. The senate approved the constitutional amendment last spring. The measure needed a twe thirds vote. Had it passed, it would- have needed approval by states. The amendment would have done away with presidential electors. But there would have been no change in the system of each states having electoral votes. A presidential candidate winning a majority of popular votes would no longer have taken all that states electoral votes. He would have a portion of them based on his percentage of popular votes. The other candidates, too, would have their portion. Had Jhe system been in effect in 1948, Truman still would have won, but by fewer electoral votes. Propose legislation authorizing 160.000 more men for the army above the present legal limit of BRITAIN: 837.000 and 60,000 more for the Navy, which now cannot exceed May Send Troops 668,882. An increase may also be Many observers have remem502,000-maair bered past aid the United States ordered for the force. ,, has. rendered Great Britain on ocj casions and have been wbndering when that country might send troops to Korea. Such aid now apCalled a Liar pears likely. A qualified informant said: More Senator Joseph McCarthy, who publicity than just a token force is needed has had more front-pag- e in the American press than any one from us and other United Nations man in a number of years, has members in the long campaign that made the front pages again, but seems to lie ahead in Korea. We are committed to helping. This not to his liking. still screaming country does not shirk its commitThe senator, charges ofcommunism.in. the state ments. thr -- Brussels. . Pact Meanwhile, department, was called a liar by three Democratic members of powers Britain, France, the Netherlands, Belgium and Luxembourg a senate investigating subcommitcalled an unexpected meeting. It tee. Reporting their conclusions from is possible, some observers said, h 8 inquiry, they attacked they might consider sending troops. the Wisconsin Republican in terms By acting together they might be of harshness rarely ' used in the able to get together more than a senates history. They accused him token force, political observers of conscious falsehood and of serv- hinted. ing the interests of the Communists by raising baseless suspicion among the people of the country. They cleared every person McComCarthy accused of being munist. The Republican members of the Senators Hicken-ioopsubcommittee, and Lodge, declined to sign the report. The Democrat members termed McCarthys charges a fraud and a hoax perpetrated on the senate of the United States and the American people Their report said, in part: They (McCarthys charges) represent perhaps the most nefarious campaign of half truths and untruth in the history of this republic. For the first time iir our history we have seen the totalitarian technique of the big lie employed on sustained basis. The result has been to confuse and divide the American people, at a time when they should be The realities of the Korean a to in war were impressed on Ameritheir unity, strong degree cans in every walk of life as far beyond the hopes of the Communists themselves, whose stock this countrys soldier went into in trade is confusion and division. action in Korea. Scenes like the one above, were grim reminders to Americans that the LABOR: foot soldier is still the workMobilisation Urged horse of war. A group of U.S. At least one labor leader, Wilsoldiers above are nearing the liam Green, president of the front. American Federation of Labor, has demanded all-opreparedness for HENRY WALLACE: any eventuality, including moboli-zatio- n What Now, Little Man? of labor. Henry Wallace, who calls himself We find ourselves facing a situ- a progressive but who has been the ation with the implication of a third of the Communist press darling If war Is localized since his world war visit to Russia, now finds now, we know it is only'a question himself consigned to the ranks of of time until the inevitable happens. Wall Street buccaneers by the Daily Only adequate preparedness can Worker. safeguard us, Green said. pbservers are wondering what He added: We cannot send our will be the next utterance of this soldier to the fighting front with- muddled thinker who was once the out training equipment and .reguof the United States We must prolar supplies and greatly liked? vide quick transportation which will Recently he -- supported the poliThere will cies of the United increase mobility States and be no side lines secure from bomb- United Nations in Korea. As the a reThere must be mobilizaing sult the attack by the Communist tion of labor. press. 2. n McCarthy: four-mont- Into Battle er ut .... -- .... .... .... Vice-Preside- nt Profits and Prices As the Korean war roared into Its fourth week much of the news was being made on the home front in the form of profits and prices. Government agencies announced after-ta- x profits of American manufacturing firms as a whole were nearly five percent higher in the first quarter of 1950 than in the fourth quarter, of 1949. At the same time the prices of foods, especially meat and, coffee, took an upward swing that made many consumers catch ' breaths. At least one congressman. Representative Klein of New York, demanded an investigation of high living costs and profiteering. He went so far as to charge bakers and dairies with soaking the consumer without conscience. Meat prices are threatening to turn this country into a nation of vegetarians and ruin the cattle raising states, he said. What has happened to coffee is sinful and could be criminal. Also on the economic front, the Federal Reserve Board said preliminary figures show that industrial production reached a new postwar peak in June. Production was estimated at about one percent higher than the prer, vious postwar peak of 1948, and 17 percent above thfe level of June, 1949. Some highlights on the net pro- their October-No-vembe- fits report: were profits 1. After-ta- x higher in first-quart- $100,-000,0- 00 1950 er than the preceding quarter, but unchanged from the 1949 mark of $2,400,000,000. 2. he rate return .,Qn stock12 percent in was holders, equity first-quart- er against 11.6 In last year's fourth quarter and 12.8 firstquarter in its first-quarte- 1950 r. 3. Dividend payments to stockholders totaled $1,000,000,000 against $1,700,000,000 in last year's fourth quarter and $900,000,000 in first-quart- er 1949. Profits per dollar of sabs rose to 6.2 cents from 6 in last years fourth quarter and 6.1 in its first 4. quarter. Setasides for federal - income taxes amounted to $1,500,000,000 in both the 1950 and 1949 first in 5. fourth-quart- er 1949. ESPIONAGE: Another Spy For the fourth time In the past two months the F.B.I. has arrested an American citizen and charged him with spying for the Soviet Union. The latest Is Julius Rosenberg, former member of the army signal corps, and a New York manufacturer. He is accused of being a member of the group that gave atomic-bom- b secrets to the Russians. Others arrested during the past two months were Harry Gold, Philadelphia biochemist; Alfred Dean Slack, Syracuse, N.Y., scientist, and David Greenglass, former U. S. 32, army sergeant Each of the group is alleged to have collaborated with Dr. Klaus Fuchs, the top British atomic scientist, who has been sent to prison in Great Britain for giving atomic secrets to Russia. F.B.I. Director J. Edgar Hoover called Rosenberg another important link in the Soviet espionage apparatus "and said he gave Greenglass specific Instructions as to the type of information Russia desired on the atomic-bomRosenberg was employed before the war as junior engineer in 4he war departments signal service in Brooklyn. He was transferred to the signal corps in Philadelphia as an assistant engineering inspector in 1940. He was removed in February 1945, on the recommendation of his commanding officer on the basis of information indicating Commu nist party membership. b. Released by WNU Feataree |