Detroit evening times., 1945-07-13
War Hinders
Re(OnverSiOn
BY LEWIS HANEY


Professor Of Economics y y. University
Delays in the transition 10 q
civilian basis of production, and
fears Of unemployment, became
somewhat more pronounced last
week. Maybe that had something
to do with a secondary reaction
In the stock market.
But further progress was made
toward a freer production by pri-
vate enterprise and the final steps
we're taken in the elimination from
the Truman administration Of
most New Deal hangoverS.
on my way 10 work this morn
Ing l passed a long crowded troop
train evidently carrying men from
Boston 10 the West Coast, and
when / got TO the office, ! noted
the Jump in war spending for the
latest week. CThe week. war cost
ran considerably above a year
ago.
CUTBACKS SLOW
These reminders that a big war
goes on help one 20 understand
Why the CutbackS IN government
procurementS have been slower
Than anticipated. BY the same
token the actual ottectlNe-recon-
version Of industry 10 civilian pro-
duction is still slow. This condition
causes uncertainty and hesitation,
which affects both employers and
employees. and total production is
temporarily reduced little.
Strikes are a factor.
Last week steel production was
considerably lower. The output oil
lumber and paper declined little.
Electric power sales were some
What smaller. With the exception
Of steel. it is probable that most
Of The decline was seasonal,
caused by the July a holiday.
LABOR SHORTAGE
But there were rather big
strikes in the rubber and steel IN
dustries. Growing labor shortage
handicaps cotton textile produc-
ton. which indicates one impor-
tant difficulty. Many laborers fear
unemployment after the war, and
are refusing to 60 into Industries
such as textile manufacturing
which they think will not prosper
In the postwar period.
The American Federation OF
Labor is out with demand for a
72-cent minimum wage. In gen.
.ral. the trend is toward striking
10 obtain higher basic hourly wage
rates, with the idea that this VIII
enable labor 10 maintain the in
hated take-home earnings OF war
time.
SOARING PRICES
II becomes. very clear. first,
that all government statistics TO
the contrary. cost Of living and
actual prices have been soaring,
and. second, that the price OF
labor is so inflated that other
prices (e. 6, cotton CLOTH must
rise too.
The last vestige Of high New
Deal officialdom was weeded out
of Washington last week. Harry
Hopkins and Henry Morgenthau
20. Vinson is slated for the treas
ury. Schwellenbach is actively
taking over Madam Perkins job.
Above all. Byrnes now looms as
the Presidents main adviser and
rabinet member.
II should not be forgotten that
Sidney .fHIilimsn tGf0t-t turned
thumbs down on Byrnes for vice
president. and his emergence at
the top of the heap shows that
radical labor is not so omnipotent
politically as some had feared.
NO CHANGE YET
The substitution of Vinson for
Morgenthau seems TO promise no
great immediate change in treas
nry policy, but the new mans
recently stated ideas about taxa
ton are being recalled with re-
doubled interest on tho whole,
these are sound and favorable TO
private business. NInson. however,
retains some pretty radical ad-
viSers.
Last week, the WIPE removed OF
relaxed many production controls.
and Ford actually began assem-
bling 1916 model passenger cars.
And information came out about
OPA studies as 10 how 10 begin
releasing selected commodities