Evening star., 1941-08-27


feet that these manufacturers had
actually lost money thus far on the
aviation contracts placed with them
bv Uncle Sam. In getting at the
reasons for this. 1t was discovered
that Americas aircraft production,
in which President Roosevelt eX-
pressed pride the other day IN his
controversy with Senator Byrd,
would never have been as far along
as it is except for British cash in
vested in American plants and in
American orders.
Certainly if America today has the
beginnings of a substantial supply
of aircraft and if in July, 1912, we
reach q desired goal, it is because
Britain with her money made 1t
possible within that time limit.
Congress Indifferent.
In 1899, when the war clouds were
rising abroad, the Army and Navy
were asking for increased appro-
priations from Congress for aircraft.
Shortly before that Congress re-
jected a Navy recommendation for
fortification Of Guam. In Decem-
Der, 1889. even after the Euro
pean war had broken out, the War
Department asked for money for
several hundred airplanes for re-
placement. This would have given
the American aircraft companies
business to keep them going and eX-
panding But Congress was indlt-
ferent and in April, 1910, when the
American plants were moving into
production and fulfilling orders for
huge production with money sup
piled by the French government,
the House of Representatives au-
thorized money for only 81 planes
and the Senate moved it up by just
9 more to the enormous" total of
Sc planes.
Later in the year Congress came
along with more orders, but the
American aircraft industry would
have collapsed if it had waited for
its own Government. Instead 1t
was being given funds for expansion
by the British and the French.
When in the summer of 1910 France
surrendered, the British government
promptly took over all the French
contracts and guaranteed to pay for
their fulfillment.
Gave Running Start.
1t is on the basis of these funds
furnished by the British and earlier
by the French that the American
aircraft program today has gotten
as far as it has. Experts estimate
that except for the advance of mil
lions of dollars by the British in
1910, the productive capacity of the
aircraft industry would not be much
more than half of what it is this
year.
The same thing to a large extent
IS true in ordnance, machine tools
and with other defense materials
vitally needed by the British. The
public presumably has the impress
sion that the $1,000 900, 900 of lease
lend funds are giving America and
Britain their present aircraft pro-
gram. This legislation, however,
was not passed until early in 1941
and many of the aircraft companies
are still working on British orders.
The lease-lend money is just begin
ming to come into the aircraft
picture.
Uncle Sam, as consequence of
British funds, is getting his aircraft
at lower prices because the plant
development and productive capac-
ity which makes possible quantity
production arose out of orders
placed by the British and French
governments with funds advanced
generously against future delivery.
Morgenthau Dared Criticism.
The cooperation of American
officials in making the British and
French program possible has been
very important. No man in America
deserves more credit than Secre-
tary of the Treasury Morgenthau,
who at the risk of criticism cut red
tape and steadfastly helped the
British and French to get their pro-
duction going. Since the lease
lend policy was adopted, MIR. Nor
genthau has performed another
service deeply appreciated by the
aircraft industry. He has stood
watch over the British funds de-
posted here so that these would not
be committed in other directions in
the haste of war operations. He has
insisted that sufficient of the British
securities put up as collateral in
America be segregated to take care