The Waterbury Democrat., 1944-02-19

It urged immediate preparation of an emergency "X'' day reconver- sion plan to enable the nation, in event of sudden German collapse, ito go on with our crusade against Japan"
 The program was prepared after weeks of research and conferences by Bernard M. Baruch, head of the advisory unit for war and postwar adjustment in Byrnes' office, and his old friend and associate, John M. Hancock, a partner in the New York Banking House of Lehman Brothers.
 It appeared probable that the Baruch Hancock report will be ex- amined carefully by the newly cre- ated special house committee on postwar economic policy and plan ming, which is holding its first meet ing today.
 The reports authors expressed confidence that if reconversion is conducted in the national interest, with special groups held in check, this country can look forward to "a prosperity sound and lasting" in world one-half of which twill need rebuilding"
 American Standards
 Winston Churchill has said he did not accept his portfolio in order to liquidate his majesty's empire" {" the report said. NO American should accept portfolio to hqui- date American living standards"
 The reports salient recommenda- tions included:
 Appointment in Byrnes' office of work director to develop integrat- ed programs, study demobilization programs of other nations and de- velop adequate machinery for as- sisting in job placement and coun- sel for veterans and demobilized war workers.
 Appointment of surplus prop erty administrator, also in Byrnes' office, to direct disposition of war time SurpluSeS. A surplus property policy board composed of represen- tativeS of government agencies con- cerned would be created. Withdrawal of government from business as soon as possible, after the war. The report recommended that this be done through quick and full payment of war contracts, re- moval of federal materials from plants to make room for equipment and materials for civilian produc- tion, and centralization of control and disposal of surpluses to bring them into ready and effective use and insure orderly markets.
 Drafting of a postwar tax bill calling for sharply reduced business taxes to stimulate business and em- ployment.
 Unification of government forces on two fronts-the executive and legislative-dealing with the human problems of demobilization. Care to avoid use of contract set clement for punishment or reward
 Reports by the armed services or their inventories, stocks and store: of most critical civilian items to de. termine what can safely be released for civilians without hurting the war.
 Termination of war contracts b, procurement agencies which nego. tiated them in consultation with the I armed services and the war produc. ton board.
 Price Control
 Prompt extension of the price con. trol law, the priorities and alloca- tions powers on which the function. ing of WIPE rests, and the reuuisi. tioning power of the president. All expire this year.
 Early review of programs for pro- duction of raw materials, and fol stockpiling, imports, subsidies anc premiums to marginal producers.
 The report also said that: Basic wartime controls must be retained as long as necessary. But all controls and the war agencies ad- ministering them should be liqui- dated when no longer necessary.
 There should be no excessive profits or strikes in wartime. Preferential treatment in the re- conversion program should be given to small business whenever possible The smaller war plants corporation should be permitted to m k c "changeover" loans to little enter prises.
 The report emphasized what many consider one of the most vital of all postwar problems-disposition or surpluceS. It warned that "the na- tional interest must govern" and that heavy losses will have to be taken on some kinds of property be- cause inflated wartime costs will have little relation to peacetime values.
 Baruch set up these basic prin-