After Two Years

By one criterion, the second anniversary of World War II found the U.S. economy almost unchanged this week. Prices on the New York Stock Exchange, according to the Dow-Jones industrials average, were 127.70, against 134.41 when war began. But the Stock Exchange was an eccentric criterion. Two years of war have brought radical change in every other phase of U.S. business:

> In August 1939 the U.S. produced no tanks, only 256 military airplanes including trainers; last month arms spending totaled $1,100,000,000, tank production was about 350, airplanes an estimated 1,500.

> In August 1939 the Federal Reserve Board index of production stood at 104, steel operations were around 60% of capacity; now the FRB index is in the 160s and steel plants operated last week at 97% of a capacity to which 2,000,000 tons have already been added this year.

> National income in 1939 was $71,016,000,000, unemployment that August (A.F. of L. estimate) was 9,832,000; this year's national income is estimated at $86,000,000,000, the latest A.F. of L. unemployment figure was 5,333,000.

> Just before war started, the Department of Labor's brand-new index of 28 basic commodities was 100, its cost of living index 100.6, average weekly factory wages $24.53. The commodity index last week hit a high of 152.7; latest figure on cost of living was 105.2, factory wages $31.84.

> In 1939 the U.S. still had a surplus economy; No. 1 problem of business was selling. Now businessmen are sure of a market for almost anything they can make; the problem is to find materials.

> When war began, the normal corporation income tax was 18%. Under the tax law now in effect, corporations pay a normal income tax of 24%, plus as much as 50% on excess profits. The new bill will hit them even harder.

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