Bonded Payoff

"A very important thing is going to happen [to the U.S. economy] beginning about 1952. Nothing comparable to it has ever happened in the history of the U.S."

This big event, Harvard Economist Sumner H. Slichter told the Magazine Advertising Bureau in Manhattan last week, will begin when World War II's bonds fall due and are paid off. The bonds will create billions of new purchasing power. In 1952 alone, almost $4 billion will be paid off, in the following year just short of $5.6 billion, in 1954 a peak of $6.3 billion, in 1955 another $5 billion. Slichter did not think that all of this would be spent; some would be reinvested in U.S. bonds. But he expected that part would go to buy goods.

Slichter thought that 1951 might be a "problem year" because the demand for new housing and automobiles would probably slacken. But by 1952 the tremendous new stimulus from E-bond cashing would help take up the slack. He thought that the bonds, rising productivity and an increase in demand from a fast growing population made prospects for the '503 look pretty good.

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