Browning chief. [volume] (Browning, Mont.) 1941-1953, 1944-07-21
Washington Digest
Small Business 10 Feel
Benefit of Re(onversion
WPB Release of Aluminium for Civilian Pur-
poses Turns Tide in Favor of
Little Plants.
BY BAUKHAGE
Ne,us analyst and Commentator.

I'd Commentator.
are being taken to provide field
engineers with information nee
essary for plants which have
never worked with aluminium to
learn how. Not many plants are
familiar with this work and that
is why we can't expect many
pots and pans right away. And,
of course, any and every plant
which does start civilian produc-
ton of any kind must first run
gauntlet" as the saying goes
at headquarters. The "gaunt-
let" is series of tests to eS-
tablish unequivocally that such
use of plants facilities and
manpower will in no way inter-
fere with the war production.
Let us look at the question Of
these idle and excess inven-
tories" of steel SURPRISES and
see what the argument for their
availability for civilian manu-
facture is. I am told that there
are some 21a million tons Of
such inventories. That means
that there is that much iron and
steel being held over and above
the possessors' needs for 60
days ahead.
The holders, generally speak
ing, are the large manufactur-
erS.
Willing to Release Surpluses
And they are willing to let the
SURPRISES go. First, because they
know they. can get all the prime
steel they need from the mills. Sec
ond, because most of these inven-
tories are made up of odd lots. Big
industries use large lots. They can
not very well start an operation on
one small lot and then when it runs
out adjust their machinery to an
other lot of different specifications.
The smaller plants are perfectly
adapted to do just this. They nor
mally buy in small lots. They are
more elastic.
The difficulty in utilizing this ma
terial is not only in the acquisition
of the steel but in the restrictions
against iiieahliiS "Ldt you "oiit wv
of it. This requires a relaxation of
rules, too, for the manufacture of
many articles is still forbidden, and
that is another thing that the Small
er Plants corporation is working on.
Process Will Take Time
1t is not a short and easy process
but the big thing is that it has start
ed, for small business has reached
the stage where its very existence
as an institution is threatened.
This is due, first, to nationwide
tendency on the part of the big
plants to cancel their subcontracts
which covered most of the work of
the smaller plants. This was done
for two natural reasons and one I'M
natural and evil one. The first two
we're: because of termination of
some of their own contracts by the
government and because of greatly
increased efficiency which made it
possible to take care of additional
work without having to sublet it to
smaller concerns.
But the third and evil practice
which had grown up was the use of
RECOMMENDATION facilities to du-
plicate work of a type which in
peacetime only small plants do.
With these new facilities and with
out the small plants know-how, the
larger factories wasted precious
labor and took the little mans bread
out of his mouth.
Another reason why the small
business mans position has been
growing critical is the delay in col
lecting pay at the termination of the
contract. He was left without in
come and without the funds to carry
on. And restrictions made it i'm
possible to earn money, meanwhile,
by making civilian goods.
Reasons for Reconuersion
On the other hand, as Mr.. Nav
erick's associates and the senators
and congressman who have worked
so hard (and, until now, with COM
paratively little success) point out,
there is whole list of reasons for
reconversion to begin here Tin the
little planD and now.
They list them in various orders
but this seems to be as good as
any:
(D To preserve small business as
an institution; (2) To form pattern
by trial and error for reconversion
on grand scale; 90 To prevent in
flation; az To provide replacement
of vital wornout products; (5) To
prevent unemployment which is
springing up in many localities.