◆ SpookStack

x wt, PASADENA. THE ) COMMITTEE FOR - _ feo ae Of a reveucnie AND WORLD DISAMALENT 545 East 46th St. New York 17, N.Y. . 7 . Cn August 10, 1959, the Rew York Stock Exchango experienced its sharpest decline since September 26, 1955, the first tradinz day following President Eisenhoworts « heart attack. The on-paper loss to stockholders anotmted to about $6.8 billion. + What was the reason for the decline? According to newspaper reports, many Wall . Street observers citscd as-the reason a growing concern over the then forthcoming ex change of visits between President Eisenhower and Soviet Premier Khrushshev. Said . tho Kew York Times: "This wes said to have produced "peace jitters' snong some tre- ders who, perhaps in a rash of optinism, had concluded that an easing in the inter- = national scene was in the works. That, in turn, it was hold, night well result in : 4 cutback in military spending, affecting large segments of the economy." Radio * Koscow was, of course, quick to point out that the stock break was due to "a panic j Smeng arns race profitesrs."_ : The responsiveness and the sensitivity of the stool market to peace flurries has “in fact led many people to fear a lessening of tensions which misht bring e cut in deferse expenditures. The plain fact is that, of all things, talk of peace brings * fear to the mind of the average men. Hoe is relieved that he and his family srea't " going to be blow to bits after all, but he is also conesrned that with peaco his \ livelihood may be blown to bits, particularly if he works on military contracts, . Recently, Seactor Philip A. Hart, Michigan, said: "When the question is asked, ‘Whet do you think would happen if ¢merica disarred?' meny of us have hoard er sn- sver which goes something like this: ‘We would have the darndest depression you ever | sexy! The person meking such a n enswer would havo in mind the sometines dranatio - ané alweys evident ripple of troubles in a towm which suddenly finds that tho plat vhich has been turning out a tool of war for the Government has its contrast tsi~ nineted." It is true, of course, that cutbacks in military contrcotts ns sulted in um- erployrent, employment shifts, a n@ a fear that general disSim@ln! ward bring wide- spread depression. ‘herever cutbacks havo taken pleco and the employment of indi# viduels has been affooted, concern has been oxpressod about disarianont ond its ie pach on the economye If small cutbacks = s:mll in rclation to tho total = cen causa snsivo employment dislocations, may people wonder what would bo the cffect ‘of amejor reduction in our arma nents expenditurese After oll, thoy point out, you Gantt suddonly stop sponding $20, $30, $40 billion and not expect sonoshing 46 hap pen to the economy. Gig individeal wh nesters). Resentiy, he poi fonse rad related prom Cm wk and amis eantrol mitcersa muct owt that treu-thirds of the 1 “aderrl budect wes for adiod: eer”