Evening star., 1944-09-10

plants engaged in war production to
seek employment where they believe
civilian production will be quickly
resumed II q worker remains in
war production, and is allowed toll
work 48 hours with time and a half
for the extra eight hours, his weekly |
take-home will be larger than the
weekly take-home Of the worker |
engaged in civilian production and
working only 40 hours. The financial
incentive thus provided may induce
workers to remain in war produc-
ton.
Public Works.
The Public Works Administration
has obtained from States, counties
and cities much information as to
work projects planned by such gov
ernments. The demand for con-
struction projects exists. AS q rule
those governments have the funds
for the projects. In communities
where there is no unemployment
following We day it would be un-
fortunate If large public works were
undertaken. It would be more un-
fortunate if they were not under
taken in communities where there
Is unemployment.
Prices for Reconversion.
When a manufacturer has been
advised Of the curtailment Of q war
contract and that he can resume
civilian production, he probably will
not move until he ascertains what
ceiling price will be placed upon
his goods. The price of civilian
goods which have been produced
throughout the war has been fixed
by OPA and takes into account in
creased production costs. But ar
ticles not now produced, such as
automobiles, radios, refrigerators,
may have to be priced somewhat
above the prices prevailing in 1941
when civilian production of these
articles was stopped.
1t is entirely possible that on We
day, as result of the curtailment
of contracts, several hundred pro-
ducers would at the same time ask
OPA for a decision as to q ceilina
price. Obviously, If a decision is
delayed until investigation can be
made of production costs of all such
articles at this time, it would In
crease the ranks of the jobless.
One practical way would be to
authorize a percentage increase -.
over earlier prices for articles which
have been out of production for
some time, with the right and duty
developing upon OPA to adjust
such prices upward or downward in
the light Of experience. This per-
centage can be quickly computed
on the basis of increased material,
labor and other costs. Provision
can be made to take care of hard
ship cases on appeal. As manufac-
turers return to production COM
petition should cause some prices
to drop quickly and substantially
below the fixed ceilings.
The sterilization director and
the price administrator are engaged
In determining the formula to be
applied in arriving at the percent
age increase to be allowed.
Taxes.
The excess profit tax is a war tax
With the ending of the war there
should be an end to excess profit
taxes. 1t cannot be done upon We
day because we will still have war
production and war profits, but the
administration and the leaders of.
the congressional committees might
well announce an intention to urge
the elimination of the excess profit
taxes when the war with Japan is
at an end.
We should consider, also, the ad-
visibility of allowing manufactur-
ers to depreciate new machinery
substantially in the years in which
such machinery is purchased. Great
Britain has incorporated such a
plan IN its current budget. This
action would induce many compa-
nies to hazard new ventures. there
by increasing employment. It would
give real incentive to companies
to keep our industry ahead of the
rest of the world technologically.
1t would provide steady domestic
market of substantial proportion for
capital goods and would 20 far to
provide a stable basis for emplov-
ment in that field in the postwar
readjustment.
Controls.
1 have requested a survey to be
made to determine what war con-
trols can be modified after We
day. To enforce controls requires
personnel. When the controls are
released, Government employes
should be released. The scheduled
reduction of procurement In the
War Department, the removal of
controls by the War Production
Board, and other agencies, should
make 1t possible for many Gov
ernment workers to return to their
homes when Germany surrenders.
The justification for rationing is
the short supply of a commodity.
When the supply is suficient for
normal demands rationing should
cease. Many foods have already
been removed from the ration list.
Others will be removed as soon as
supplies justify removal.
We day will result in increas-
ing the supply of gasoline avail
able for the civilian population. It
is impossible now to make a def
mite statement. My opinion is the
increase will not permit the dis
continuance OF rationing but the
allowances can be increased in Ger.
tain areas.
There are many commodities.
however, that are still in short sup
ply and must continue to be ra.
toned.
! Eeea