Evening star., 1941-12-14
Business Faces
Giant Task in
About War
Expansion 3 to a Times
Present Arms Rate
Reported Necessary
BY FRANK MacMILLEN.


Industrial men, economists, finan-
ciers, all agreed today that, with
the country menaced in two oceans,
we were far from the total organiza.
ton for war which the conflict I'll.
timately promised to demand.
They said England and Canada
had advanced much closer TO the
ideal" war situation in which the
demands of the struggle had 100 per
cent priority over any other call on
the economy.
Canada, it was pointed out, all
ready had clamped ceilings on the
prices of all kinds Of goods; had
frozen wages and granted a war
time living allowance" bonus to
wage earners to take care Of rising
costs.
England, in addition to roughly
similar steps, had met shortage OF
man power for the factories by a
bill, expected to become law within
a few days, registering all able
bodied man and woman power. some
Of 1t destined eventually for armed
service use, some for the plants and
mills.
SURPRISES Near End.
Yet, industrialists here said, We
appeared to be approaching the
point where the whole advantage OF
surpluses-of men to work the fac
tories, brains to direct them and
materials to keep them going
seemed about to disappear.
The magnitude of the effort was
indicated by Business Week, widely
read by management men, when 1t
said
To-day. our war effort Is running
at the rate of 81 500 900 900 a month.
That is 10 times what it was when
France fell, but 1t is only one-third
to one-quarter of what will be nec-
essary to attain victory.
To-day, 20 per cent of our national
energies are going into war: before
we get through, one out Of every
two man-hours of work, one out Of
every two miles Of transportation
will be going, directly or indirectly.
into the war effort-50 per cent Of
the country's production and distri-
button.
And even that may not be
enough.
For the one thing we know
about war is this: You never are
| producing fast enough or we'll
enough. The only test of your effort
is final victory and. until you have
final victory, you are short Of your
goal"
Inevitable Steps Seen.
Some Of the steps which industrial
men thought were inevitable here
as the country entered the new
phase Of active combat included:
1. A cessation of war production
stoppages by voluntary agreement
between labor and management as
in the last war; by legislation or by
combination Of the two. Presi-
dent Roosevelt day before yesterday
called a conference of labor and
management groups for considering
this problem.
! 2. A further limitation on profits,
by corporate taxation, by rising
costs, by reduced consumer spend
ing in many lines because of higher
individual taxes. and by sheer in
ability in some businesses to obtain
the materials to produce for sale.
3. A further sharp expansion in
facilities to produce war goods, piled
on top of the already heavy new
construction under way Steel, alu-
minum, other non-ferrous metals
and chemicals were some of the
fields where a hike in the produc.
ton potential seemed certain.
4. Additional restriction on the
amount Of labor, materials, perhaps
even electric power and manage
ment supervision, which will be
available for the production Of non
essential" civilian goods.
Early Price Curb Foreseen.
Until last Sunday 1t looked as
though Congress would pass nothing
more than flaccid form of price
control law-and that so tardily
that imitation would have already
made serious headway, but now ad-
ministration leaders believe they
Will get about what they want. and
a little sooner" states Business
Week.
organized labor viii continue TO
resist wage ceilings, farmers will
continue to fight for high floors and
no ceilings. and both interests will
almost certainly win out. An In.
crease in rail rates, practically Ger.
tain to follow the rail wage boost.
will give all prices a new upward lift.
Pending enactment Of price
control legislation, o. p. A. will
extend its present control over in
dustrial raw material prices to
finished goods In the hands of
manufacturers, wholesalers and-in
acute situations-retailers. However,
until adequate enforcement pro.
visions are vested in o. p. A.. con.
troll over prices will become in.
creasingly precarious.
Don't look for a huge new tax
bill Immediately. The administra-
ton may ask for the moon, but
congressional leaders expect to have
their hands full in delivering a bill
OF the proportions originally pro-
posed last month by the Secretary
Of the Treasury Morgenthau-in the
neighborhood of $4,000 900 900. This
is $1,500, 100000 larger than any
previous single levy. Later next year
when war needs have sunk home,
supplementary taxes may be voted
but that possibility is clouded by
the congressional elections.
! War Now In Command.
"The Japanese attack on Pearl
3 Harbor did not change the pattern
of things to come in the United
States. but it did-and does-inten-
sify and vivify that pattern" says
the magazine.
Ever since the fall of France in
June, 1910, war has been gradually
taking command over our economy.
Now war is in command. For busi-
ness, the meaning Is instantaneously
clear Henceforth production will