Evening star., 1944-07-23

The difficulties of industrial recon-
version to the making of peacetime
goods will be great, but not nearly so
great as suggested by the careless tossing
around of $25,0O0, 900 ,000-the amount
of new Government construction since
1940-as a total with which we shall
have to deal in determining the future
relationship between the Government
and private enterprise.
Both by those who want the Govern
ment to stay in business on large scale
and those who want 1t to get out of
business as fast and as far as possible,
the potentialities of the $25, 900 900, 900
construction investment have been ex-
aggerated. The "leftists" have built ex-
cessive hopes on the total, and it has
caused excessive fear on the part Of
some of the 'rightists."
A breakdown of the figure which has
been prepared by Secretary of Com
merce Jesse Jones shows, to begin with,
that 40 per cent, or $4,000 OOO,0 900, has
gone for the building of militay camps,
airf1elds, supply depots, etc. These as
sets will have small recovery value and
will not enter into the competitive sit
uation after the war.
Also, to arrive at what may be called
the competitive assets in the S25 5,000,-
100000 total, there should be deducted
$4,000, 100000 spent on additions to our
naval bases and establishments and
more than $4,000 100000 which the Gov
eminent has invested in manufacturing
facilities for explosives, ammunition,
guns, combat vehicles, ETC. Some of
these facilities doubtless will be retained,
but, as Secretary Jones points out they
will not be a primary factor except
perhaps as to some of the buildings and
power equipment, in the production OF
peace time goods.
About 8 Billions Left.
The balance that remains, in Jones
calculation, is about billion dollars
worth of Government plants and facili-
ties, which is no more than the average
annual rate of expenditures for con-
struction in the United States during
the four years preceding the war.
Moreover, the peak of Government
construction has passed. Only about
$4,000, 100000, it is estimated, will be
spent in this category this year, and q
lower level will follow The present con-
struction expenditures of the Govern
ment. indeed, are less than the normal
peacetime depreciation and obsolescence
of the country's structures. Practically
no money is now being invested by
private industry in this field
Some of those who speak for industry,
Secretary Jones says, have been magni-
flying its plight" at the end of the war.
1t should always be remembered, he
says, that while Government controls
and taxes have limited profteering,
American industry lis certainly not
operating at loss, or at disadvantage
to its cash and credit position"
Studies of the Department of Com
nlerce show that the working capital of
business at the end of 1943, including
cash, Government bonds, inventories,
work in progress, etc. amounted to SAT-
000,0000 900. The maximum charges
against this, for depreciation, taxes,
claims, etc, we're about $4,000, 600, 900,
leaving $1,000, 100000 as a net backlog
which producers, manufacturers and
distributors have at their disposal for
.reconversion. Secretary Jones thinks
that these figures represent comfort
able financial position.
What Government will be required
to do" Jones said in a recent speech,
cannot be definitely stated now. It
will depend in large measure on indus
try and private lending-What each is
willing to do. Some who would paint
dark picture are motivated by a de-
sire for assured profits for industry.
Some are motivated by a desire for the
extension of Government operation in
the field of private enterprise.
"It is not my intention to minimize