Evening star., 1944-07-16
Need for War Supplies
Returds Reconversion

NSN0u0S S1VtU
Writer Sees Army, Navy Chiefs
Controlling Industries
By OvsH l.. Scott
Two things about which civilians now
can be quite certain are these: First,
no important shift back to production
Of types Of durable goods Of the kind
civilians most want VIII occur until the
German war ends Next, when the shift
from war TO clvilien production does,
start, It will be on the basis OF every man
for himself.
There Is great and growing pressure
at this time to permit nonwar industry
to use idle machinery and surplus raw
materials for start Of production or
for preparation to produce some Of the
things consumers are demanding. This
pressure comes from industry. from
consumers and from Congress. It is
being resisted by top Army and Navy
commanders, who viii have their way
20 long - both WARS are going on.
Military objection to even q modest
shift Of attention from war output to
peace output is based upon q funda.
mental fact. That fact Is the presence
Of real shortage Of labor in some key
war industries. This shortage Of labor,
In turn. traces to the start Of migration
OF labor away from war industries and
back to peacetime industries and it is
based upon the obvious desire of work.
ers to try to get set in jobs that will con-
tinue in peace and to avoid jobs that
will evaporate with the German wars
end.
Labor shortage Is accounting for the
failure Of industry to meet military pro-
duction quotas. This country lacks q
national service law that could be used
to overcome the shortage of workers in
war industry. As . result there is no
other form Of pressure that can be
exerted than that Of denying civilian
industry chance to start making civil
ian goods that could be made on the
basis Of available material and available
machinery. Military officials cannot do
anything to encourage even q small
number Of workers to shift away from
industries making war goods.
Opposition Of Army and Navy ofiicials
to any preparation for reconverting in
dustry to peacetime basis, where that
reconversion would involve use of labor,
will continue until it is certain that a
German surrender is imminent. 1t is
likely to continue up to the day that
| Germany surrenders because military
services cannot base plans upon ex-
pectations.
When the German war does end, how
ever, the lid probably will come of in q
hurry.
On the basis Of policy decisions now
reached, there is going to be no use Of
Government power to assure that all
| concerns in an industry get an even
start when production Of civilian dura-
BILE goods is resumed. Today's WPB
will not be turned into q revived NRA
to do job of planning for industry.
The intent Is not to use present Govern
ment power over materials to give al
lotments that will assure each company
its particular share of material for
civilian production and to deny mate
rial to newcomers.
Instead, the decision is to revive COM
petition at the earliest possible moment
and to permit companies to obtain ma
terial pretty much on hrst-come, first
serve basis. Companies that still are
tied up with war orders for the war with
Japan will have to take their chances
later, while other companies that have
orders Cancelled when the German war
ends can 60 back Immediately to civil
ian production
This approach to the problem Of re-
conversion is dictated by the fact that
any effort at carefully planned recon-
version, designed to protect the position
OF individual companies within indus
tries, would be attended with a good deal
OF unemployment and of delay. The
Government prefers not to take respon-
sibluty for keeping one factory closed
down in order to assure that q compet-
ing factory, still tied up with war orders,
is given an even start in production for
the civilian market.
All OF this suggests that the period to
follow the German wars end will be
rather hectic. Ofncials recognize that
1t probably will be. Yet they see no
practical alternative to the earliest DOS
sible return to competitive situation
after the German war even If 1t does
mean hardship for some concerns that
will 60 on supplying Army Navy needs
for the war with Japan.
| - %4
Actually, the period between wars NAV
not be so disturbed as surface indications
suggest. The reason Is that almost all
companies In the automobile industry
and most companies in other industries
are in q position to 60 ahead with war
work and to start civilian production at
the same time. War demand will con.
tract sharply after the German war ends
with production centered in large air.
craft and in naval and merchant vessels.
There will be an immense inventory of
many kinds Of equipment that can be
shifted from one war theater to the
other.
| Some companies that normally pro-
ouce trademarked goods for general ci-
villain consumption may find that they
still must 90 ahead using all of their
facilities for war production. Generally.
however, the civilian industry will be
able to find way to get back into tho