IF WAR ENDS SOON

Dominion, Volume 38, Issue 268, 10 August 1945, Page 9

IF WAR ENDS SOON

Effect On American Economy

UNEMPLOYMENT PROBLEM (By Telegraph -Press A«sHl>.-Copyright.)

(Received August 9. 11.55 p.m.) NEW YORK, August 8. The American Press is alarmed at die prospect of tlie sudden end of the Japanese war. Labour commentators have been warning Americans that Congress had made no plans for tlie reconversion of industry from war to peace, and as the atomic bomb brings the prospect of early peace their criticism is* receiving wide support. Congress went into recess last week. but. it may be recalled to deal with the problems that would arise. The United States. News” says: “The end of the war, if it comes soon,, will give this country a severe jolt. Unemployment will sky rocket, industry's production will plummet, incomes will drop, trade will slacken, and prices will lend to decline, temporarily at least.” The end of tlie war is expected to reduce munition production by 64 per cent. Automobiles, refrigerator, washing machine and other similar plants are hopefully expected to take up the slack, but they are still in the throes of conversion and" will not 'be in reasonable production before Christmas. Should the war end in October, it is estimated that civilian production would not get back to the 1940 peak levels till June next year. Observers estimate that unemployment in the first three months of next year would reach 9.000.000. They do not see the restoration of tlie domestic situation till the first, three months of 1917. when they expect output to climb to 154 per cent, of the best pre-war level.