Evening star., 1944-02-27
Surplus War Goods Big Problem
Economic Future of U. S. Hinges Orderly Disposal

.
William l.. Clayton will run the greatest
auction sale in world history, one in
volving the economic future of the
country and countless billions Of dollars
in everything from ships to sealing
wax" as the Baruch report expressed it.
The significance of this aspect of the
changeover from war to peace was en-
phasized in a recent meeting of the
Senate Postwar Committee. member
could possibly be more important post,
affecting not only the well being of
America but all of the civilized world"
than that of surplus property admins
traitor. Mr.. Baruchs answer was mo"
The Nations chances of avoiding
postwar depression rest very largely on
the way Mr.. Clayton, who rose from an
$8-a-week stenographer to be the
worlds largest cotton merchant, han
dies his new job. BY injudicious dump
ing of vast surpluses he could stifle our
economy. BY establishing wise policy
for selling the properties, he could pre-
vent postwar taxes from skyrocketing.
The billions in war properties would
write off sizable portion of the ma
tional debt.
Pattern Is Prepared.
With all of this in mind it might be
well to examine the pattern which has
ben laid down for the administrator to
follow, to consider some Of the problems
pointed out in the Baruch report and
the solutions suggested for them. This
pattern forms striking contrast to
the planless, wasteful disposal of sur
pluses after the last war
In the 120-page blueprint for recon-
version and rehabilitation that Mr..
Baruch wrote in collaboration with
John M. Hancock some of the qualities
the administrator must possess were
outlined. 1t was stressed that boldness,
caution and wisdom will all be needed
in disposing of surplus goods and
plants
"Boldness will be needed in disposing
of surpluses promptly while civilian
shortages are acute" the report stated;
caution to obtain the full value and to
slow sales when they threaten to disrupt
normal trade; wisdom to give proper
balance to longtime security factors.
Proper handling of surpluses will be
a most significant factor in preventing
imitation, speeding reconversion and
avoiding serious unemployment. 1t
could make difference of billions in
the size of the national debt"
High Qualities Required.
AS to the qualifications of the admin
istrator, Mr.. Baruch said he should be
man of proven executive capacity and
business sagacity, "a man of character,
unquestioned integrity and great cour-
age to fight off all of the selfish interests
that will be seeking to exploit these sur
pluses."
Friends say Mr.. Clayton comes about
as close to those measurements as one
could find. He had remarkable success
in the business world, where his judg-
ment and integrity we're highly re-
spected.
Born in Tupelo Miss, 64 years ago,
Mr.. Clayton went to New York when he
was Is and took job as stenographer
for the American Cotton Co. few
years later he was assistant general
manager. In 1904 he left New York for
the Southwest to form his own business
of Anderson & Clayton e. Co. The firm
subsequently opened branches over the
world.
Mr.. Clayton served with the cotton
division of Mr.. Baruchs War Industries
Board in the last war. He returned to
Washington in 1910 with the Office of
Co-ordinator of Inter american Affairs.
Shortly afterward he went over to the
Commerce Department as deputy Fed
eral loan administrator. He was named
Assistant Secretary of Commerce in 1912
"a post he relinquished last week to
assume his new duties in the Office of
War Mobilization.
Many "Ifs" in Problem.
So many intangibles are involved that
1t is impossible to estimate with any ac-
curacy the size of the pile of surpluses
Mr.. Clayton will handle. The best Of
f1cial guess places the value from 40 to
30 billion dollars. Determination of the
actual size involves such questions as
when the war will end; whether it will
end suddenly on both fronts, or grad
ually, enabling fairly accurate tailor
ing of war production to actual needs:
size OF the armed forces after the war,
and other factors impossible to appraise
now.
Some indication of the tremendous
problems facing Mr.. Clayton in even