Evening star., 1943-11-14
Plans for Peace
A-Making
By Ope,1 L. Scott.


High officials continue to warn the
country that 1t must look forward to
a long, hard war. Yet ohicial planning
suddenly has shifted from emphasis on
war to emphasis on the problems OF
postwar adjustment.
President Roosevelt Is discussing the
postwar problems with business lead
ers. James F. Byrnes, as war mobilizer,
Is turning more and more OF his atten-
tion to postwar demobilization. Con-
gress is shifting its attention from war
problems to problems of postwar times.
There already is agreement on sew
eral points involved in the shift from
war to a peace basis. Studies are
under way designed to provide policy
and an agreement on other points of
dispute involved in the adjustment to
come.
1t now is accepted by almost everybody
that this war will end in two stages,
with Germany defeated first and Japan
later. Plans are being made on that
basis. They are made somewhat easier
for that fact. The reason is that while
war spending now Is running at a rate
of about $4,000 900 900 a year, it can
be eased off to about $65 ,000, 900 900 a
year when the German war ends. That
step down will have far less effect than
would a sudden drastic curtailment Of
all war spending.
On this basis the first problem of de-
mobilization will involve the Army. The
Navy and Air Forces will push ahead
with little reduction in overall plans,
although the emphasis in types Of
equipment may change.
Army demobilization already is the
object Of much White House study.
Congress is being asked to provide de-
mobilization payments for soldiers who
are unable to find jobs on getting out
OF the Army. 1t is being asked to pro-
vide year Of schooling for at least
100000 men released from service
In order to help those men and to
cushion the shock Of large-scale de-
mobilization. There Is some considera-
ton Of plan to continue base pay to
men leaving service for q period Of
several months If they are unable to
find work. Release Of men will be on
the basis, first, Of dependency, then Of
age, then Of length of service.
Demobilizing men may involve fewer
problems than demobilizing industry.
Industry demobilization is to involve
cancellation Of vast war orders. The
White House is favoring quick settle
ment Of contract claims in order to as
sure industry that 1t will not be caught
with all its capital tied up in war in
ventories and in commitments that will
take long time to settle. Then there
are all the problems of converting in
dustry back to peacetime basis that
went along with the conversion of in
dustry to war. Decision will have to be
made concerning which industries can
return to peacetime production first and
which shall be entitled to allotment of
material and on what basis. Industry
will have its raw materials rationed for
many months after the war.
Then billions of dollars worth of
. Government-owned plant and equip
ment must be disposed Of or placed in
standby condition, leaving behind a
problem of where to find work for the
! men and women who were employed in
those plants. Studies now under way
are directed at fifsding7 uses for as many
OF the war plants as possible. s.--
{ Civilians are to find that the end
either of one war or of both wars will
not result IN immediate removal of re-
strictions under which they now live.
Food will continue to be rationed in
order to assure at least a modest sup
ply for export to Europe where supplies
will be inadequate. Gasoline probably
will become much more abundant, but
a tire shortage problem is likely to con-
tinue for several months. When auto
mobiles and refrigerators and other du-
rable goods become available again they.
too, will have to be rationed because
the supply at first will be far short of
demand.
The official intent is to keep price
and wage controls in effect for a con-
siderable period after the war. The
reason is that the volume of money
available for spending will continue for
some time to be far in excess of the
volume of goods on which money can
be spent at the existing price level.
1t remains to be seen, however, whether
Congress will 60 along with continued
controls on individuals If war is ending
and an election is near at hand.
Official plans call for a postwar
change in taxes that would involve
continued taxation of individual income
at a very high rate, to siphon off sur
plus funds, while giving concessions to
corporations. The excess profits tax
probably will be the first tax to 60.
Studies now are being made of various
plans for incentive taxation that would
encourage industry to expand its peace
time production.
On top of these plans for demobiliza-
ton and reconversion at home, the Gov
ernment is working on plans for sta
bilization of world currencies and for
creation of facilities to foster invest
ment banking on world basis.
Altogether, it can be said that the
planning for peace now is in the ad-
vanced stage that planning for war
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