Evening star., 1942-04-17
Production Economy
Urged by Arnold as
Scarcity Alternative
Anti Trust Division
Chief Argues Against
increased Output Feors
nv wide World News.

~ wide World Nevr
NORMAN. Okla. April i7.-Thur-
man w. Arnold. Assistant Attorney
General In charge OF the Anti Trust
Division, condemns the economy OF
scarcity in Democracy and Free
Enterprise" a book Just released by
the University Of Oklahoma Press.
IF the war" he writes, can blast
the theory of scarcity out of our
economy. II we have two tons OF
steel and aluminium and copper and
zinc where we had one before. and
two yards Of cloth and two bushels
OF grain and two hundredweight of
meat where we had one before.
where Is the loss that offsets the
obvious gain7
out OF this war there may grow
production economy rather than a
restrictive price economy"
Cites Auto Industry.
University Press arranged for pub
lication of Mr.. Arnold's exposition
on postwar economy through the
University OF Omaha. where It was
delivered In lectures under he
Baxter Memorial Lecture Foundat on
last February and 6.
Mr.. Arnold offers chapter and
verse for his theory that free enter
prise-shorn Of restrictions of cartelS
and other instruments of MONOPOLY
can survive on diet OF production
In plenty.
"a 1fnad Ia L.
Is found in the automobile industry.
Ihat industry has never been afraid
OF production .. 1t has never
depended on patent monopolies. It
never needed the warnings OF
economists that the market for
automobiles was reaching the satura-
ton point"
When that point seemingly was
reached. the industry installed huge
financing companies and sold cars
on credit right on through the de-
preston even though incomes were
sharply reduced, even though people
were on relief"
Sees Plenty Compelling EXCHANGE.
IF after the war" Mr.. Arnold
argues, we can remove the restric-
tlons TO the production and distribu-
ton OF basic materials, such as steel.
aluminium and chemicals. the same
pressure OF full production is going
10 compel the exchange of these
goods for the product of the farm"
But even with the Nation in a
war 10 the death. Mr.. Arnold asserts
there are forces at work, prodded
by the fear of the economy OF plenty,
TO insure controls to restrict post
war production and boost prices.
AS a remedy, he proposes the same
bitter medicine in wartime that he
dosed out in peace-"the long
range economic policy OF the Sher-
man Act-to prevent existing private
groups from getting sufficiently into
control OF our vast war production
to shut 1t down when the war is
over"
Never before" the Assistant At
torney General adds, has there
been such chance to restore free
enterprise in this country. All we
need to do is to catch the vision of
now surpluseS distribute themselves
In the absence OF restricted control f"
Nor did the psychological handi-
cap" OF fear of production vanish
after Pearl Harbor, MFR. Arnold de- |
elares. saying corporation control
ing zinc process patents refused to |
release them TO new producers un-
less they agreed TO 90 out of busi-
MSS after the war.
Cites Unions Reaction.
This was the same philosophy, he |
says, that prompted a New York
local painters union ito call on the
parent union in this time of emer- |
gency to clamp down on the reck- |
less admission of new members"
We must get rid of the fear which |
now obseSSes labor and industry and
agriculture that every increase of
productive capacity deprives them of
economic security"
Instead, Mr.. Arnold insists. every
laborer and technician must be
brought TO the point of view that
he is contributing to a situation
In which there will be more goods
for every one in the future"
"Once we catch that vision" he
summarizes. our problems of CO.
operation with labor, industry and
agriculture will be solved. All of
these groups are patriotic. They
need only TO be assured that eco
nomic collapse will not follow their
present efforts to produce.
Then they can stop trying to pro-
tect their future positions and give
their whole heart to the work at
hand"