Evening star., 1941-09-05
HendersonIs Expected
To Tighten Curbs
On Civilian Buyers
Efforts to Restrict
Non-Defense Demand
Likely to Succeed
Special Dispatch to The Star.

Special DlSpalCn 10 Inc CJhT.
NEW YORK, Sept. 6.-More
money to spend and fewer things
to spend it on is the situation today
and it will not soon be altered, says
Business Week in its analysis today.
In fact, it is stated, the very
changes which have been made in
the setup of Washington's ma
chinery for priorities and civilian
allocations will tend to accentuate
rather than minimize the scarcity
of many things the consumer now
can afford to buy for the first TIME
in over a decade.
This follows from the fact that
the production policies OF Leon
Henderson, thwarted somewhat by
Office of Production Management
officials in recent months, Will be
very much more evident in the i'm
mediate future.
To be sure, Henderson is one of
the New Deals consistent advocates
of production and more production
on the theory that, if you produce,
consumption will take care of itself.
He will continue to argue for eX-
pansion of productive capacity until
civilian as well as defense needs are
met. But he will argue as strongly
for curtailment of civilian lines
Immediately rather than ultimately
so long as they compete with
national defense for raw materials.
Nelson Favors Plan.
While it is true that Henderson
is not the head of the new Supply
Priorities and ALLEGATIONS Board,
Donald Nelson, the executive di-
rector of S. P. A. B.. comes closer
TO seeing eye to eve with Henderson
than any of the other fbusiness men
in the defense organization.
Hereafter Henderson will not be
issuing civilian ALLEGATION programs
in order to see the Priorities Di-
vision either put them on the spike
or hold them up for month or
six weeks.
Consequently, business planning
should at once be altered to make
more allowance for Henderson's
ideas. He's a great hand at coming
out f1atfooted for more than he
thinks he is going to get. AS head
of the Office of Price Administration
and Civilian Supply he persistently
called for drastic curtailment of
various industries which were
competing with defense for raw
materials.
Usually he can be counted on to
accept something just a little bit
less Severe-although not very much
and then, after he has succeeded
in getting an agreement, he is likely
to urge ALLEGATION of slightly more
than the stipulated materials to the
affected industry in order to ease
the impact on both workers and
consumers.
Rationing Eased Later.
Thus he was among the first to
insist on sharp reduction in the
use of cork when supplies got tight
last spring. Then, after 40 manu-
facturers had been ordered, late in
May, to cut their consumption to
half their April use of cork, Hender-
son came forward in few days with
plan for a somewhat more liberal
rationing of the material during the
transition period.
He is always sensitive to the lay
offs. faced by labor due to shortage
of supplies and, with his associates
will probably continue sympathetic
to such problems.
Meanwhile, as the new priorities-
and-supply organization begins to
formulate the policies which will
shape the future course of business
the current developments are al
together in line with expectations
There is further modest decline in
the Business Week Index which re-
fleets the recession of construction
awards from the recent extraor-
dinarily high levels.