Evening star., 1940-02-25

Following their declaration of war
against Germany last September
Great Britain and France brought
their national economic system
under totalitarian regimentation
Plans for industrial mobilization in
the United States also provide for
far-reaching governmental controls
In war over the Nations economy
A determination of the material
needs of the Army and Navy is the
first step in planning for economic
mobilization. AS a result of the
studies made in recent years, these
requirements have been computed
for most of the important items and
more than 10000 American factories
have been given their war time al
locations. The second step is to
provide for a quick and orderly
transition from peace to war
economy to avoid dislocations and
profiteering.
The industrial mobilization plan
was first published by the War De-
partment in 1881 and has been re-
vised several times since then. The
latest published revision, that of
1889, proposes to use recently Gre
ated agencies, such as the National
Labor Relations Board, as part OF
the emergency setup to be created
by the President on the outbreak of
war. The plan, prepared by the
Army and Navy Munitions Board,
has the approval of the War and
Navy Departments. In keeping
up-to-date its plans for economic
mobilization, the board has con-
suited with many business and in
dustrial leaders. Like the selective
service system, administration of
the proposed industrial mobilization
plan would largely be in the hands
of civilians.
Key Superagency.
AS the key superagency" for di-
recting the Nations wartime in
dustrial effort, it is proposed to es-
tablish a war resources admins
tration, responsible directly to the
President. One of its major duties
would be to coordinate the NUM-
tions requirements submitted by the
Army and Navy with the essential
needs of other Government agencies
and those of the civilian population.
In accomplishing this mission, the
War Resources Administration
would be authorized to reduce the
activities of non-essential indus
tries and order their conversion
into war plants.
The personnel to fill positions OF
responsibility in the War Resources
Administration should be obtained
from the patriotic business leaders
of the Nation" says the latest re-
vision of the plan. They must be
men who command the respect OF
the American people, as well as
capable executives, thoroughly IA
miliar with our resources. The effect
of strong and intelligent leadership
is more important and will do more
to secure voluntary cooperation OF
industry and the civilian population
than will any arbitrary regulations
or organization charts that may be
prepared, no matter how they may
appear
AS part of the War Resources Ad-
ministration, it is proposed to set
up four co-ordinating agencies-the
facilities, commodities, power and
fuel, and transportation divisions.
The staffs of each will include both
Army and Navy officers. When ex-
listing productive capacity is in
adequate to fill the Governments
orders, the facilities division will
apply priorities, construct factories
and convert to war production
plants engaged in the production of
non-military items.
Division of Work.
To secure a full supply of the
materials needed by the armed
forces and the civilian population
will be the special responsibility of
the commodities division. Where
the division will take steps
to boost production, encourage con-
servation and the use of substitutes.
It will also have the authority to
apply price control measures.
To assure an adequate supply OF
power and fuel for war industries
and civilians will be the job of the
power and fuel division. 1t will
have the power to ration both power
and fuel and impose other restric-
tions on their use.
Coordination of transportation
in the zone of the interior
will be undertaken by the transpor-
tation division. If the railroads and
other transportation systems are
it will lay down pri-
critics for the use of their facilities.
The first call, of course, will 60 to
shippers of Government orders.
Another proposal is war finance
administration, stated by repre-
sentatives of existing public and
private financial agencies. 1t will
advise the President on fiscal poll
cies and coordinate the financial
needs of the Government with those
of private enterprise. Tax policies.
credit and imitation. the effect of
the issue of securities, both Gov
ernment and private, and the flow
of capital are some of the matters
that will come under its jurisdic-
ton.
Other Agencies.
To regulate imports and exports
will be the task of the war trade
administration. Control measures
include the issuance of export and
import licenses, and reciprocity and
trade negotiations with allied and
neutral countries.
Two other super agencies are pro-
posed-one a war labor administra-
ton, and the second a price-con-
troll authority. The war labor ad-
ministration will provide the ma
chinery "for the equitable and VOL
untary distribution of labor to in
dustry and agriculture" Indus
tries will be classed as war and
non-war industries. First priority
will be given to war industries.
The price-control authority will