Evening star., 1944-01-16
New Headache:
RecOnyerSiOn
BIZ Owen L, Scott.

AU ACuoV 1,VOO AAlAAluAdNtAA Liz PAdAAto
In the United States are ready to start
back to work producing durable goods
for civilian consumers They have ac-
cess to abundant raw materials, they
possess adequate machinery or can OBJ
tain that machinery and, as a rule, they
have workers at hand Yet they are
being held back.
In this situation is revealed the Ma
tion's next big problem 1t is the prob
lem Of demobilizing industry from war
work just at the time when mobiliza-
ton is being completed. Demobilization
is becoming Ia problem because sof the
fact that military needs for many types
OF war materials are rapidly being Allied
and orders are being Cancelled on an
important scale This new problem OF
shifting from war work back to civil
ian production is offering more dif1icul-
ties than did the problem OF shifting
to war production.
Involved In the shift is the necessity
OF deciding whether one manufacturer
should be allowed to have a head start
In producing trade-marked goods for
VAC S1NAldIl IldlhCt OelOTE dIlOJQCI
manufacturer. Involved also is the ques-
tion Of whether industry In the East
is to be permitted to get head start
over industry in the West In the event
that the German war ends this year
and the japanese war goes on for an
other year or more. Then there is the
broad question of whether a war-ex-
panded industry with it's war orders
being Cancelled should be allowed to
start making products that 1t is fully
capable of making. but which formerly
had been produced by another industry
which remains tied up on war orders.
To complicate matters further, 1t is
only natural that the military services
should want to cancel contracts of the
least efficient producers when the time
comes to cut down on war production
That leaves the question of whether
the manufacturers who have done the
least satisfactory job of war production
should be allowed an advantageous head
start in getting back into the civilian
markets This whole situation is to be
aggravated by the prospect that some
industries will have to go on producing
war materials as long as the japanese
war lasts. while others will be shifting
out of war production as soon as, or
even before. the German war ends.
These are not academic problems even
today They are problems with which
the ONCE OF War Mobilization in the
White House is having to face almost
daily. They are problems that the War
Production Board. to date, has sue
ceeded in side-stepping. for the most
part, by denying the right of manufac-
turers who have completed war orders
to go back into civilian production with
out specific authorization from WPB
This authorization then is given very
sparingly.
AS one example, several hundred
small plants with capacity freed from
war work, sought authorization to use
their materials, machinery and man.
power to start making goods for the
civilian market Blanket authorization
has been denied pending a determina-
tion Of policy.
In another case. two typewriter COM
panies found war orders running out
and sought the right to start making
typewriters. This right was granted to
limited extent but only on condition
that the typewriters not go to the or
dinary civilian market. The Govern
ment heSitates to permit two companies
to get the jump on the others.
In third instance it was decided that
about 10000 trucks would have to be
made for civilian use in this country
and for export. Two or three truck
makers could have filled the orders from
available capacity but it was decided
that the orders must be divided equally
among all manufacturers on the basis
of 1910 production. The industry wanted
to be sure that no one manufacturer
got start on the others, even though
some truck makers must 60 to great
effort to make trucks for both military
and civilian markets.
Then there is the situa ton in some
big shipyards and in other war indus
tries where production faces cutback
The makers of ships. for instance, want
the right to start making other products
which they are capable of making and
for the making of which they have
materials, machinery and manpower.
However, WPB hesitates to say whether
they should be permitted to start making
products that would compete with the
products of manufacturers who still are
tied up with war work
All OF this does no more than touch
the surface of problems that 60 along
with reconversion of industry from war
to peace. The task Of reconversion is
further complicated by the fact that
it is to be necessary for part of Ameri-
can industry to continue with war work.
in order to provide supplies for the war
with Japan even after the war with
Germany ends. In that period, some
industries inevitably will gain an adj
vantage over competing industries as
they move back to production for the
civilian market while their competitors
must 60 on working for the Government.
There already is sizable and grow
ing surplus of many raw materials and
OF plant capacity. 1t is probable that
during the year much labor will be re-
leased from war industry. This means
that the elements will be present for
production of consumer durable goods
to be resumed. Government will try to
delay that production in order to avoid
the problems that it entails Just as long
as possible.