Evening star., 1941-09-21
U.S.. Defense Speeded
By Capitalization
Under :. p. 4. B.
Business Week Says
Nelson Clearing Way
For ReuI Results
spet isl Dispatch to The Star.


NEW YORK. Sept 22.-The pre-
dicted reintensification of the de-
fense effort-after the Roosevelt
Churchill sea meeting-is here.
Business Week points out in its
analysis of the business outlook.
Last week, it is stated. President
Roosevelt named Edward R. Stet-
tinius, jr, as special assistant, to
accelerate lease lend deliveries to
Britain. That follows hard upon
the establishment of the Supply
Priorities and Allocations Board
designed to Streamline and CEN
tralize defense production. In thus
delegating authority at long last. Mr.
Roosevelt removed himself as bot
tle-neck-in-chief of the armament
drive. And that comes under the
head of important business news.
1t means that critical defense
policies can be determined without
hardto-get conferences with the
President. And things are already
happening. This week S. P. A. B.
ordered a concentrated effort to
boost aluminium magnesium and
copper production; is considering
Q. P. M recommendation to cut
refrigerator and washing machine
output 10 to so per cent: set De-
cember passenger-car output down
48.4 per cent from last year (as
compared with the 26.5 per cent
quota for August through Novem-
ber).
These are plain indications that
Donald NJ. Nelson. executive director
OF S. P. A. B, is taking hold of both
his Job and the national economy.
And seemingly the question of but
TER versus guns has finally been re-
solved. Thus, S. P. A. B. ruled that
steel plates were more urgently re-
CURED for ships than for an oil pipe
line to the Eastern seaboard. On
the same tack, the defense board is
now studying ways and means of
eurtalllng nOn-defenSe consumption
OF copper. Clearly defense now
comes first, civilian needs second.
Arms Output to Soar.
Actual volume of business is not
apt TO be seriously altered by these
oeVeIopmentS, says Business Week
On the one hand. production of pas
senger car and other durable con-
sumer goods will be ourtailed hut
on the other hand. the integration
OF the defense effort under CEN
trallzed control is likely to boost
armament output. Right now. as an
example, o. P. NJ is directly con-
cerned with shifting workers in dur
aole consumer goods production to
defense industries. The purpose is
tWotold: - To cushion the result
ing unemployment dislocations as
auto, refrigerator, etc. plants lay
men of. and ~ to provide skilled
and semi-skilled workers for speed
Ter arms output.
Labor disputes. however. NAV cut
Into the defense production in the
near-term future. The steel rate
dropped modestly this week from
969 per cent of capacity to 96.1 per
cent, partly because of minor strikes
and SlowdoWns. But far more i'm
portant Is the possibility that the
United Mine Workers strike in cap
tive mines may cause a coal short
age and pull down the steel ingot
operating rate-as in April and MAY
Moreover, efforts of the Steel Work.
ers Organizing Committee to win
union shop status in four of the lit
tie steel panies-Bethlehem, Re
public. Youngstown and Inland
may further endanger output.
Demand Exceeds Supply.
Fundamentally, however. there is
plenty of business around to sup
port the current level of industrial
sctivity-or better Demand is far
outrunning supply. Such non-de-
fense industries as cottons. woolens,
shoes, household furnishings are
pushing up toward capacity along
with such armament leaders as air.
planes, ships. machine tools, tanks,
ordnance and so on.
And though labor disputes may
be troublesome they are not likely
to produce any long -drawn-out drop
in the production curve. The far
larger issue. speedy aid to Britain
and Russia, is bound to force res
olution of key strikes, even if the
Army and Navy have to take over
as at North American Aviation
and Federal Shipbuilding. Mean
while the Business Week Index has
started up again-to regain lost
ground. If strikes don't interfere,
the probability is that it will edge