Evening star., 1944-09-10
DemobiIizution
Continued From First Page }

nouSenolo equipment and gadgets
To speed up the procedure, he said,
this formula will provide, as an
initial pricing means, q percentage
increase over earlier prices that re-
fiect, roughly, the greater cost to
manufacturers Of such things as
labor and materials.
Provision will be made to take
care Of hardship cases on appeal.
AS production is achieved. he said.
competition should cause some
prices to drop quickly, and well be-
low the fixed ceilings.
= Vent Estinuate Cot Rises
Mr.. Byrnes said the new price
program will make certain that
the reconversion to civilian produc-
ton IN any industry VIII not be
delayed by lack of information as to
prices" He declined to make even
q general estimate as to how much
more civilian goods will cost than in
prewar days.
In declaring that fear of unem-
ployment after defeat of Germany
has been exaggerated" Mr.. Byrnes
pointed out that continuation of
the war with Japan will demand
the continued production of great
quantities Of war materials. He
said basic industries, such as steel
and textiles, will not be affected
He added that he was sure we will
speedily return to civilian produc-
ton in the remaining industries for
the pent-up demand for goods
will come from a people who have
money with which to buy them"
He warned, however, there would
be many temporary employment
dislocations, and declared the great
est danger would come from war
production curtailments in "Gov-
ernment-owned plants engaged en-
tlrely IN war production and having
no plans for civilian production"
Seeks to Lease Plants.
Mr.. Byrnes pointed out that last
week he established an interagency
committee which would try to in
terest private enterprise in the pur-
chase and operation for civilian
production of Government-owned
plants. kilograms were sent to the
present operators of the plants to
appraise their interest, and he said
replies already received were very
gratifying"
Describing unemployment COM
penSation as ''our first line of de-
fense against unemployment" Mr..
Byrnes urged Congress to recon-
slider his proposal for a maximum
weekly compensation of $50 for as
long as 26 weeks. He said the States
should increase their benefits, add
ing that the States now have ac-
cumulated $500 900 900 in reserves
which should be used for its true
purpose and not held, as in a
bank" He said several influential"
Members of Congress sought post
ponement until after Election day
OF consideration of d bill liberaliz-
ing such benefits because they
feared the effect of q bidding for
votes"
Arrival of We day will result
In increasing the supply of gaso-
line for motorists in certain
areas" Mr.. Byrnes said, although
it probably will not be possible to
discontinue rationing. Presumably.
he referred, among others, to the
East Coast area where allowances
are below those for the rest of the
country. End of the war in Europe
should release the strain on eastern
supply lines. He also predicted the
removal of additional foods from
rationing.
encouragement to Capital.
encouragement should be offered
capital to enter civilian production.
Mr.. Byrnes declared. As to taxa
tion, he said that while the excess
profits tax cannot be removed until
Japan is defeated, the administra-
ton and congressional committees
should announce an intention to
urge its elimination at that time.
AS a further encouragement to
industry. he said manufacturers
should be allowed to depreciate new
factory machinery substantially In
the years in which machinery is
purchased, particularly II 1t Is Coy
ernment-owned. This would en-
courage new enterprises and make
sure that American industry win
keep ahead Of the rest Of the world
In production
Discussing the large cancellation
Of war contracts to come with We
Day, Mr.. Byfnes stated that the