State of Business

Biggest U. S. Boom

On its way toward full production, shortages and possible inflation, the U.S. economy last week knocked over many old statistical mileposts. The war boom had become definitely bigger than the biggest peace boom in U.S. history. Items:

> National income for May was at the rate of $86,000,000,000, the Department of Commerce reported. This was not only the best May ever, but the first time the annual rate in any month had passed the $84,250,000,000 total income of 1929.

> Unemployment for May dropped to 3,962,000, said the National Industrial Conference Board, lowest since September 1930. Bureau of Labor Statistics' estimate of total employment (excluding farmers and soldiers) reached a record 38,278,000 at May's end, or about 1,400,000 above the 1929 peak.

> Typical of the capital goods makers who scarcely felt the '37 boom (thus helping to abort it), American Car & Foundry declared a dividend on its common stock for the first time since 1937, earned $5,161,130 (compared with a $10,777 loss the year before) for the year ended April 30. A. C. & F. was one of the first heavy-industry companies to convert its plants to war use. It is producing about $200,000 worth of tanks (twelve) a day.

> Even Wall Street, No. 1 nonparticipant in the arms boom, stirred to partial life last week. With two 1,000,000-share days in a row on the New York Stock Exchange, the Dow-Jones industrial average gained 3% for the week, from 124.18 to 127.80.

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