The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1941-10-02
Economic . . .
National and International Problems
Inseparable from Local Welfare

Inseparable from Local Welfare
Big news for long time has been
the vast amount of new employment
|created by the multi i-billion dollar ma.
|tional defense and aid-to-the Allies
programs. Now considerable pub
licity and thought is being given to
the unemployment which these same
programs are creating.
AS everyone knows, we have finally
reached the point where defense
needs are severely dislocating our
|peace-time economy. The period of
business as usual is definitely over
The dislocations will grow greater as
time moves on and more and more of
our resources are turned into the in
|struments Of war. Way the wind
blows is indicated by the fact that
automobile production for December
will be cut. 48 per cent below that of
the same month last year. And most
economists believe that it will be
necessary to make substantially
ISIGdIcI GUS Ill CIl6 IuIuTc.
The result is that tens of thous-
|ands of men are being discharged by
factories which have a low priority
rating and cannot obtain supplies, for
the reason that they are not engaged
in defense work. Some of these men,
of course, find jobs elsewhere. But a
Very high proportion of them cannot.
And, as consequence, this "war un-
employment" is becoming a serious
problem.
The bulk of the businesses affected
lin this instance are relatively small.
Big businesses, for the most part, are
able to more readily turn to defense
work, and naturally are in a better
position to obtain favorable attention
from the powers-that-be in Washing
ton. SO definite movement has start
ed on the part of little business to
put up fight for it's survival-and
the survival of the jobs of it's en-
|ployes. A short time ago, Confer
ence on Unemployment Due to Priori-
ties was held in Chicago. Delegates
came from II Midwestern states, and
included mayors, manufacturers, men,
bers of Congress, labor leaders, etc.
Action taken consisted Of requesting
that larger proportion of defense
work be allotted to small business,
and that a new system of priority al
lotment be established with view to
maintaining employment in "peace"
industries until they could change
over to war basis.
So far, government defense heads
seem to have done little to solve the
problems of small business and it's
workers. According to Newsweek, top
defense executives Donald Nelson,
Leon Henderson, and Floyd Odlum
rejected bids to the Chicago meeting.
1t is apparently t13f Washington view
that maximum results in minimum
time can be obtained by alocating de-
Tense production primarily to large
industry, which is geared to top pro-
duction, and which has the machines,
the plants, the skilled workmen, and
the engineering talent necessary.
There is, obviously, a great deal Of
logic in this point, of view. At the
same time, it is also obvious that our
American economy cannot be perpetu-
ated if this vast defense effort re-
suits in the death of "little business" !"
And in some informed quarters, there
is a strong belief that the priorties
System can undergo considerable
Ioverhauling without slowing or en-
|dangering the arms drive. 1t is clear
that there has been excessive over
buying in some quarters-and over
buying is only one step short of
boarding. Some companies, according
ito authoritative surveys, have been
ALLOWED to make purchases of stra-
Itegic materials in quantities which
they cannot use up for years. In the
meantime, other businesses must go
without. In short, there has been 3
lack of equitablity in the distribu-
ton OF supplies.
The tremendous haste that has
characterized the development of the
defense program is Of course partly
responsible for this. There has been
waste and there has been much con-
fusion. Also, many think, there can
not be maximum efficiency until there
is consolidation of the multitudinous
defense boards, and until real power
lis placed in the hands of one man. In
the meantime, there is fast grow
ling demand that something be done
to keep war priorities from complete
ly disrupting the American industrial
system. The head of musical in
|strument company recently declared
that his industry "could run on the
scrap the armament industries in this
state throw away, but | can't even
get that Many an observer believes
1t is time stern corrective measures
were applied.
x X
The growing number of imprison-