The Republican. [volume] (Oakland, Md.) 1877-current, 1941-12-04
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By JAMES PRESTON

The priorities system is on its way
out. 1t is being superseded by a
new arrangement designed to correct
the shortcomings of priorities and to
allocate strategic metarials more eff
fectively.
The priorities system is based on
the simple proposition that first
things come first. Certain defense
projects and foreign orders which the
government deemed most important
are given preference ratings These
serve as notices to the supplier of
raw materials that such orders are to
be filled first. This is to be done by
Withholding or deferring deliveries
on other contracts and orders. The
trouble is that soon everyone was hold
ing preference orders, and that jam
med up the works. Under the alloca.
lions system-now being whipped into
shape-all the emphasis is placed OH
actual delivery of goods where they
are most needed. SPAB is working out
1912 production program for each
industry. When that is done, the OPM
will have to devise a system for hand
ling raw materials so that the indus
tries can fulfill these programs.
In line with this change, another
reorganization of SPAB is due shortly.
This will mean more centralized au-
thority in the hands of Executive Di.
rector Donald Nelson Those who have
been working with Mr.. Nelson feel
that if anyone can make the new allo-
cations program work, he can. For the
most part, Washington business men
are cooperating to further alloca-
tions, for it is the general opinion that
this is the best solution of the prob
lem. Many, however, are reserving
judgment, aware that ALLEGATIONS
raise new problems not met under the
priorities system.
There is a general feeling that the
ALLEGATIONS system, once the emergen-
cy need for it is over, offers a back
door to planned economy. No one
speaks of it that way yet, but both
the Administration and business rec
ognize the possibility Of danger. Sen
ators and Representatives are warn
ing of the major alterations to TIC
economic system that are looming. l;
is said, privately, that the United
States Government is embarking, via
the ALLEGATIONS system, upon its bold
est venture in the field Of Government
controlled economy.
Although there is no indication
that government officials intend to
use the ALLEGATIONS system in this man
ner, it is admitted that such a posi-
bility is not too remote in view of the
published thoughts of New Deal lead
ers and the endorsement which the
Philip Murray plan for industrial
councils has received from some of the
Administration men. 1t would certainly
be in keeping with New Deal philoso-
ply.
In some quarters it is predicted that
consumer rationing is the next step
under the ALLEGATIONS program Gov
eminent officials are able to deter
mine what industries must curtail OPP
Grafton; and, when necessary, what in
dustries must cease to operate. Under
the guise of conserving materials,
the Government will be able to under
take studies of consumer needs and
through ALLEGATIONS shape policy for
industrial production, and, directly OF
indirectly, for civilian consumption
designed to meet what Washington
officials think the country should
have.
Much suspicion is directed at the
change in status Of the Army ana
Navy Munitions Board. Up to the
present, this Board has been able to
determine its own priorities and thus
regulate the size and production speed
of its own program. Now it must APP
pear before SPAB and, in the same
manner as any industrial group, apply
for it's materials. Many Army and
Navy men have expressed their dis
pleasure with the new arrangement
in private No public statement has
been made.
Questions as yet unanswered are
whether ALLEGATIONS will be given to an
industry as a whole or whether, as
now appears to be the plan, they viii
be based on the requirements OF ind
vidual units whether yardstick WI
be established at the outset; what
the position of the Industry Advisory
Committees will be in The new ar
rangement; whether there is any de-
gree of assurance that the promised
materials will be delivered, and how
long it will take to decide partic-
ular ALLEGATION problem once an in
dustrial branch has developed pro
gram.
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