Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-03-11


requirements under existing lease
lend agreements, for stock pile war
reserve, or for other governmental
needs, so far as possible in areas
where the replacement of war pro-
auction by peacetime activity is
likely TO be slow and difficult and
where sudden termination of con-
tracts, therefore. would cause undue
hardship and disruption of COM
munity life,
4. Arrange for the liquidation of
all other war contracts as speedily
as is consistent with economic and
social welfare, and with reasonable
regard to employment conditions
and liabilities of contract holders.
in order to:
tA) Prevent unnecessary use of
labor and materials, since the sup
ply OF finished munitions on hand
would then be ample for a peace
time army and since experimental
production would be devoted to the
making of improved military equip
ment.
CD Stimulate rapid conversion Of
plant and machines to peacetime
production.
5. Assist small producers and dis
tributors and small enterprises
which are war casualties. This as
sistance should include technical
advice, marketing aids and favor
able terms of financing.
s. Develop new industries, new
processes and improved products, by
research work within the Govern
ment, increased assistance for re-
search to private activity: aid in the
dissemination of information on new
materials, new processes and new
uses, and by maintaining free access
to the use of both old and new ma
terlals and processes unhampered
by misuse of the patent system.
Provision should be made for access
to those new inventions which are
brought out by publicly supported
or tax-exempt institutions.
New Joint Partnerships.
7. Extension and new forms of
Joint private and governmental
partnership, through use of mixed
interpretations, granting or insur-
ance OF loans, or other joint ven-
lures, etc. Government is already
taking considerable part in the
management of the many war in
dustrles which have been greatly
expanded by the use of Government
funds.
Consideration should be given to
the deslrability of various types of
partnership in the direction of those
industries OF crucial importance in
both wartime and peacetime
economy and in which the Govern
ment has made great investments.
In this category are aluminium,
magnesium, shipbuilding and air
craft. Government has a direct
responsibility and should participate
in the decisions as to what areas
and what concerns should continue
to operate in these industries.
c, Rehabilitation of Wartime
Economic controls.
We recommend for consideration.
The relaxation, modification or
retention OF wartime controls is de-
pendent fundamentally on the
length of the war. The longer the
war continues, the more rigorous the
economic controls will become, since
war demands will absorb more and
more Of our productive effort Even
With the Attempts to maintain the
essential plant in good working con-
dltlon. large inroads will be made
on our capital goods.
Even with fiscal policy favorable
10 rapid transition to a peacetime
economy and closely integrated to
other methods of control, it would
seem highly probable that for a
time ALLEGATIONS of scarce raw ma
terlals will have to be retained ra-
tioning of scarce consumer goods
will have to continue, and some
price controls, and wage controls.
Will have TO be retained.
l. The policies for economic sta
bilization and production control
developed during the war will of
necessity be modified after HOSTILE
ties cease. Many of the policies af-
fecting present controls will be re-
Versed. Instead Of endeavoring to
restrict the consumption economy.
the attempt will be to spread exist
ing supplies as far as possible both
at home and abroad For at least
a short period of time it will be
necessary to draw on American pro-
ductive capacity for most of the sta
pies. The extent to which this can
be done will, however, depend upon
the extent to which inroads are
made on American supplies and
stock piles. AS supplies become more
adequate, the rigorous character of
controls can be relaxed.
2. The regula tons which limit the
production Of certain goods can be
radically changed almost immedi-
ately. The expansion of enterprises
concerned with the production of
peacetlme goods will be the first in
order OF Importance. Thus the elm
lnation OF restrictions in this sphere
can be expedited
Probab Continuance of Rationing.
B. Commodity consumer goods
rationing will probably continue. not
only in order to secure more euui-
table distribution Of scarce supplies.
but also to prevent violent increases
IN prices The inability to shift
fiscal policy quickly suggests the
possibility of runaway prices even
after the war, such as the infia-
tom that took place in 1920.
T. The demands for durable con-
summer goods may be very difficult
TO satisfy because Of deferred de-
mands and the time necessary to
provide adequate plant capacity and
to produce new supplies. Hence it
may be necessary to continue ra-
tionlng durable consumer goods
probably for longer period than
other consumer goods
5. ALLEGATION of scarce raw ma
terials should be retained until do
mestic and foreign producers have
been able to supply sufficient guam