The Mahnomen Pioneer

INTERNAL STRENGTH NEEDED

At a time when every American is considerably interested—quite properly—in the physical defense of our country, it is not inopportune to listen to careful but wise words about our internal economic strength. For without economic strength, we cannot be physically strong.

On this point the recent views of Phillip D. Reed, Chairman of the Board of the General Electric Co., aptly point up the situation.

As an example of the disintegration that results from lack of strong internal defense, Mr. Reed cites the tragic experience of France. "The battle of France was not won on the battlefield," he said, "nor was the much-vaunted French Army defeated in any real sense. Indeed, the battle was not won at all; it was lost before it began, and the real victor was economic anaemia and social dissention in the French Republic."

Analyzing our present economic condition, Mr. Reed points to both the advantages and the problems resulting from the sudden stimulation to industry of our national defense program.

Thus, though the current high level of activity has resulted from defense production, a brand new set of problems is at hand. In discussing these problems, Mr. Reed states:

"The elements are with us that make for inflation and a war-time boom in prices. Government and industry alike are determined that this shall not occur. It can be prevented without government compulsion if, and only if, every company, every industry and every organized group in the country will firmly embrace and accept the principle that prices and wages shall not be advanced arbitrarily to take advantage of the situation created by the defense activity.

"Although profit margins on defense work will be narrow indeed—too narrow to be justified under normal circumstances—we are here faced with very special conditions which call for cooperation and for sacrifice by all."

We concur in Mr. Reed's statement that it is the responsibility of all Americans "to exert at the proper time and place the full weight of our strength, our ideals, and our leadership toward a realistic, economic, and therefore lasting peace."