The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1940-02-22

When the first World War broke out,
a spectators holiday followed in this
country. By the end of 1914, the al
lied governments were seeking war
materials from American factories on
vast scale, and the sky was the limit
so far as price was concerned. The
allies even bid against each other, thus
sending prices zooming. A long time
passed before buying became even
comparatively orderly and efficient.
If anyone thought that mad scram-
BILE was due to be repeated when the
current war came into being, they
were just about 100 per cent wrong.
Before the war was actually declared
both France and Britain had purchas-
ing commissions in this country. These
commissions worked comparatively not
at cross purposes. Purchases were
made by direct contact with manufac-
turers, thus eliminating the need for
brokers. And when, late in January,
the two commissions were merged un-
der the name of the Anglo-French
Purchasing Board, it became evident
that the allies were out to get the most
for their money, and are working as
closely together in business matters as
they are in military affairs.
One purpose Of the new board is to
eliminate rice-boosting competition
and overlapping Of functions. Another
very important purpose is to keep in
friendly contact with the U. S. gov
ernment and to eliminate possible fric-
ton that might occur if Allied pur-
chases seemed to hamper our own pre-
paredness program. The heads of the
Board are we'll known business men
long experienced with American fl
nance and industrial methods.
Biggest Allied demand is still for
airplanes - so far Britain alone has
placed orders for some $90,OO0,O0O
worth. According to Wall Street
Journal article, Allied total aircraft
buying may run to the astounding
figure of 81, 100000. Inasmuch as
our total aircraft output last year was
only 1925 100000, this, if it material
ICES will call for tremendous expansion
of our aircraft industry. 1t is believed
that the Allied purchasing agents will
attempt to get part of the work done
by ubcontractors-such as automobile
concerns - in order to speed matters
up.
This government is obviously con-
cerned lest Allied war buying reach
the point where there would be an in
adequate supply of war materials left
for us. To prevent this, the President
has appointed committee, headed by
Secretary Morgenthau, representing
the Treasury, War and Navy Depart
ments, whose duty is to coordinate for
eign war buying with our own defense
program Mr. Morgenthau has said
that our own needs must be filled first
has expressed the opinion that our
capacity for producing airplanes en-
gines for fighters, is insufficient to
meet the demand. The Allies may thus
be forced to pare their exceedingly
ambitious present program.
Even as the makers Of war mate
rials have benefited from the war, the
producers of other commodities have
suffered. British demand for tobacco,
for instance, has practically disappear
ed-Europe has no gold to spend for
luxuries. Severe restrictions have
likewise been placed on fruit purchas-
ing, at the expense of American agri-
culture. Despite this, however, and
despite the almost complete loss of
German and Polish trade, our exports
have been remarkably high. The Eu-
ropean neutrals, no less than the bel
ligerents, have significantly upped
their purchases from us.
Summing up, it looks as if the war
will not dislocate our economy at this
time, or materially affect prices. But
when war ends, it doesn't seem posi-
BILE that we can avoid slump-many
great factory geared to war produc-
ton will find that its reason for exist
ence has vanished overnight. War
booms make postwar depressions.
s.+*-.a4 !.