Evening star., 1940-09-26
Banks Ready 10 Lend
$3,000,000,000 for
Defense Plants
Test Mobilization by
Reserve Boord Shows
Funds Available
By BLAIR BOLLES.

BY bLAlH bOLLESs
The country's banks are ready to
promote the preparedness drive and
have $3,0OO,0O0 900 to lend on short
notice to manufacturers for emer-
gency defense plant construction.
The Federal Reserve Board OBJ
tanned this information in 48-hour
~test mobilization" of bank credit
ut the instance of the National De-
tense Advisory Commission.
Credit Is a necessary lubricant for
the vast industrial upturn which Is
gradually getting under way in the
interest Of making the United States
invulnerable against any military
threat.
The availability of these funds,
William S. Knudsen, commission
member, said today, means that in
dustry can undertake the necessary
plant expansion for defense needs
with no loss of time.
New Labor Plan Outlined.
Mr.. Knudsen added that the test
Shows that the commercial banks
Of the country are eager to do their
part IN the national defense rro-
gram.
"They stand ready with funds far
in excess of the amount needed for
this purpose
At the same time, the commits
sion's Labor Division, headed by
Sidney Hillman, made public the
outline of a program for a speed
up of operations in the defense
plants through highly specialized
assignment of skilled craftsmen to
their work.
Arms contracts totaling more
than $205 100000 were awarded at
the War Department yesterday
S171 TAG ,293 for airplanes and air.
plane engines and S33,86l ,34329 for
the Signal Corps, ordnance depart
ment and the Quartermaster Corps.
Work on Bases Speeded.
Preparation of the Nations mill
tary posts and bases for the great
est test they have been put to in
20 years went forward through the
assistance of the w. P A.. which
announced today that "A additional
national defense projects approved
during the first two weeks of Sep
tember brought the total w. P. A.
ALLEGATIONS for similar projects up
to S6O,O0O,O0O.
Borrowings from banks, Mr.. Knud-
sen said, would be made by defense
manufacturers in connection with a
new form of contract developed by
the commission after consultation
with the War and Navy Departments
and the controller general.
Legislation now pending in Con-
greSs to permit the assignment of
claims against the Government
would allow manufacturers to assign
the contract as security for borrow
ings needed for defense plant con-
struction.
Because of the security thus af-
forded, Defense Commission experts
believe. interest rates should be
lower than on the usual type of
commercial loans.
Labor Advancement Planned.
The R. F. c. has lent s52S,OOO 900
for industrial defense expansion,
and the Government soon will have
available, on the passage of pend
ing legislation, $3.50, ,000,0 900 to finance
aforementioned munitions fac
tories
To insure the greatest possible eff
ficiency from labor in the defense
plants. the Defense Commission an
nounced the development of a pro-
gram to enable every American
worker in the arms and associated
industries TO make "the fullest use
Of his highest skill
The program is known as the up
grading" plan and is expected to
fulfill skilled labor requirements for
the expanding defense program as
they arise. The new policy will be
carried out in accord with the COM
mission labor divisions emphasis on
employing the unemployed' as the
primary step in meeting defense
labor needs.
Sponsors of the up-grading plan
said yesterday it will probably make
employe advancement more rapid
than ever before. They pointed out
that the top-notch mechanic who
often devotes Is per cent of his time
to the most skilled part of his work
and rs per cent to its less precise
and eXacting phases, will benefit
now by being able to give his atten-
ton exclusively to the more skilled
aspects OF his job.
New Employees Affected.
The labor system is arranged to
affect the intermediate and new en-
ployes as well as the skilled men.
The new employe will be taught
not only single basic operation but
also its relationship with other op-
erations in the total process. and
will thus prepare himself to move
up rung by rung on the ladder of
promotion and progress" according
to c. r. Dooley, director of the De-
fense Commissions training within
industry department of the Labor
Division.
The decision to apply this up
grading plan throughout defense in
dustries was made after close study
of similar methods used by leading
optical, toolmaking and other es-
tablishments.
District representatives are now
being appointed to supervise estab-
lishment of the plan in some 20
industrial areas. They will be
assisted by four advisers-two from
management and two from labor
together with a panel of personnel
experts and training specialists.
Management Delegation.
These decisions were reached at
the Training-Within-Industry De-