Evening star., 1942-07-12
WPB Prepares
For Still Larger
Production
Bottle News Declared
Proof Thot Output
Is inadequate
Special Dispatch TO The Star.

outlook today.
Achievements in the battle Of
production nave already been re-
markable. But, as Robert Nathan,
WPB's Planning Committee chief.
put 1t this week: The big Job Is
ahead of us and not behind u.s.
"In the last analysis" the maga-
zine states, production can only be
evaluated against the course of the
war. And the German push this
week in the Kursk-Kharkov sector,
the Japanese capture Of another link
on the all-rail route to Southeastern
Asia, and the continuing threat to
Alexandria and Suez, are proof that
we have far from enough material
yet to take the offensive to victory.
"Keynoting the new drive, Nathan
says, Our resources must be used
to the limit To attain the goals
set. we must more than double our
output of planes, ships. tanks and
trained troops. From, here on IN.
that means WPB has to squeeze the
last ounce Of raw material out OF
ouf capacity, cut military specifica-
tions for supplies to minimums and
synchronize the flow OF raw and
semi-finished products so that final
arms assembly moves at top speed.
OPA Has Big Job.
Here the once Of Price Admin-
istration has part to play. OPA
is working out pricing formulas for
armament products. Ceilings have
been set on industrial machinery,
and an aircraft price regulation Ii
In the works
THE WPB, the Government buy
ing agencies, and now OPA are con.
tinually pressing for lower produc-
ton prices. What's involved is more
than the danger of inflated war
costs. Price control is one way to
stimulate efficiency, to achieve the
necessary maximum of arms output.
That's one reason why admins
trative economists get so upset by
the kind of pressure politics now
hampering the imitation fight-the
job is tough enough as 1t is. The
President is urging congressional
leaders to take up some Of the slack
In the imitation tight rope. But
more permanent damage will have
been done.
Business was reconciled to sub
sides In the first place only because
Henderson had said again and again
that no relief from the squeeze
could be expected by puncturing re-
tail ceilings. But canned fruit and
East Coast gas" ceilings have been
cracked. Now, even II OPA should
get subsidy funds soon. its job In
getting business to accept them tn
lieu of further punctures win be ten
times harder.
Confidence 1T Stake.
"And what II prices were raised,
slowly but surely? The price level
might 60 up only s or 10 per cent
in the next few months. But public
confidence in price control-perhaps
the chief factor In its success
! might collapse. In any case, politi-
cal bargaining for economic advan-
tage would be harder to stop, con-
sumner and retailer evasions Of cell
ing and rationing regulations would
mount, and new buying waves might
be touched on.
Right now, OPA has more prob
lens with farm prices. Vegetable
Gamers want the higher pricess fruit
Gamers got last week. And pack
ers are being caught in squeeze.
Pork products are limited by CELL
ings, but live hog quotations. spur
red by Army and lend lease buying,
continue rising. OPA alternatives,
lacking subsidies. are to freeze hog
prices or puncture another Of it,
cherished ceilings.
'Cattlemen have . different com.
plaint-that beef ceilings are too
low for profitable finishing Of AMI
mails in the feed lots. and the Ma
tion's meat production will suffer.
Meanwhile, Congress continues to
battle over 100 per cent Of parity
loans and Commodity Credit Corp.
power to sell feed wheat below
parity. All of which implies that
the farmer is far from being the
economic problem he was in the
"thirties' Indeed, income from
marketings and Government pay
ments In the first five months of this
year ran 81 500 900 900 ahead Of the
total for the same period In 1942,
and farm income totaled $l1 800 000,-
600 last year. This points to q new
record in 1912, higher even than
the $l4,600. 900 900 peak Of 1919.
VY,,~~ D~~N,atl~. 0>~~
"But these gains are not founded
on higher prices alone. Production
also will outstrip past highs. Tho
Food for Freedom program calls
| for sharpest boosts in oil crops,
canned vegetables and meat and
dairy products. The 1s42 hog crop
is now estimated at los 500 900 head,
Il per cent more than in record
1899: egg and poultry production
has been running Is per cent above
last year. and beef and veal
slaughter has been ahead Of sched.
uled boosts
Fortunately, the weather thus far
has been remarkably favorable to
| pastures, and wheat, hay. oats and
other crops. And, 50 far, the Ma
tions farms are employing more
workers than last year. But agri-
culture in the San Francisco Federal
Reserve district already Is being
pinched by lack Of farm hands.
Estimates Of corporate profits
for the first quarter Of 1o42 have
been compiled by the Department
Of Commerce, showing . slight gain
over the first quarter Of last year,
but more than seasonal decline
from the last. Railroad and retail
trade groups Jared best. and manu-.
featuring, power and gas and whole.
sale trade worst"