WAR BOOM DISCUSSED BY HANSEN IN BROADCAST

"The United States is being held in reserve as the residual source of supplies for the Allies," Alvin H. Hansen Lucias N. Littauer Professor of Political Economy at the Business School, declared in the Guardian broadcast Saturday on "The Problem of the War Boom."

Professor Hansen analyzed the war as "an economic blockade with preparation for the eventuality of a really aggressive military campaign," and pointed out that the expectations of American business for a quick expansion of exports following the outbreak of the war have not thus far been realized.

Colonies Supplying Britain

A significant difference in the situation today from that in 1914 is that England is much less dependent now on American exports. As never before, the colonies are supplying Britain with her much-needed food and raw materials.

"With reference to our trade with European neutrals," Professor Hansen said, "we counter a rigorous Allied rationing of the imports into these countries." He also showed the dangers threatening our South American trade.

"In contrast to 1914 conditions, present-day American industry has a very high level of productive, capacity, and does not need to build huge plants and buy a great deal of equipment, as it did 26 years age." Professor Hansen declared as he outlined the various changes which have taken place in American since World War days.

"Thus," he concluded "for the present we are still confronted with the task of securing full recovery and full employment.