The Cold War and Civil Rights 247that the United States would undertake the development and produc-
tion of an even more terrible weapon, the hydrogen bomb. The annihi-
lation of civilization had now become a real possibility.
In recognition of the new world that had dawned with the arrival of
nuclear weaponry, Congress enacted the Atomic Energy Act on Au-
gust 1 , 1946 , transferring authority over atomic energy from the War
Department, which had developed the bomb, to a civilian committee
of five members appointed by the President. Overseeing the activities
of this committee was a Joint Commission on Atomic Energy consist-
ing of nine members from the House appointed by the Speaker and nine
members from the Senate appointed by the president of the Senate.
The United States also agreed to the twelve-nation North Atlantic
Treaty, ratified on July 21 , 1949 , which declared that an attack on any
one member nation would be considered an attack upon all. The twelve
nations included Britain, France, Spain, Canada, Belgium, Luxem-
bourg, the Netherlands, Italy, Portugal, Denmark, Norway, and Ice-
land. In addition, this treaty established the North Atlantic Treaty
Organi zation (NATO), headed by a council to draw up plans for the
defense of the member nations. Later, in 1952 , Greece and Turkey joined
NATO. It was an historic agreement for the United States. This was the
first time the country had joined a peacetime European alliance.
On the domestic front the end of the war witnessed an explosion
of economic demand. Four years of sacrifice had made Americans hun-
gry for all the goods and services that had been denied them for so
long. Individual and corporate savings approached $ 50 billion. Unfor-
tunately, there were not enough homes, automobiles, appliances, and
other commodities to go around. Demand outstripped supply, causing
prices to skyrocket. Then, when Congress reduced taxes by some $ 6
billion, it only provided additional money in the hands of consumers,
which added to the pressure.
When the G.I.’s returned home they were eager to resume their ci-
vilian lives, but they had trouble finding adequate housing or adequate
living conditions. Many of them began or returned to college to com-
plete their education, thanks to the G.I. Bill. Others pursued profes-
sional degrees or borrowed money to purchase homes where available.