IS SLUMP COMING IN U.S.?

Chronicle (Levin), 22 March 1949, Page 5

IS SLUMP COMING IN U.S.?

Reces$ion Not Thought To Be Very Serious Received' Monday, 8.50 p.m. LONDON, March 21, The discussion , in American newspapers-' as to whether there is golng to be an economic depression in the United States is being foUowed with interest in Britain. It is noted 'with interest that while •American economists think there may be some reeession in trade they are convinced that a real collapse sueh as occurred in the thirties is out of the question in- the foreseeable future. It is stated that 1949 has, sofar, fo.llowed a simiiar pattefn to the early months of 1948. Then there was "a slowing up and falling off of the boom. It proved a temporary falling - off, however, and thereafter eontinued to break all records. American economists point out that today while unemployment is higher than a- year ago there are now more | people employed in the United States than in the first mOnths of any year in American history. Real unemployment as eompafed with casual unemployniem is less than 3 per cent. of the total, work foree. It is not considered as a seriously- dangerous eiement xn the nation 's ecohomy yet. It is also obsei'ved that steel production in America is at its peek, farm and food prices .iave begun to rise as they did at this time last year, and money\for new eon '' struction is 8 per cent. xnoi'e .than that set aside in 1948. Orders for machine tools aie higher. Though American economists, it is reported, feel there is little real feason to anticip'ate a slump, they don't overiook the psyehological factor that if people believe the boom is endiiig it generally does. But the Kremlin's forecast that a capitalistic ecotiomie bli^zard is inevitable is discounted.