The Chronicle-star combined with the Moss Point advertiser., 1946-01-04

IS i~NN~N ~ Aidhe
the machine work. Many also
placed a lifting of controlled price
levels in the necessary-to-suecess
category. There was controversy
on this point.
Conversations with business
men across the country neyerthe-
less indicated a strong majority
opinion that the question marks
would be dissolved, perhaps not
in the early months, but almost
certainly in time to, make 1916
a banner business year.
If nothing else, l945 proved
that the industrial machine it
self was strong enough to stand
plenty of bouncing around with
out breaking up.
In prize fight language, in
dustry took a S63, 500, 000, 900 sock
on the whiskers-that was the
total of terminated war contracts
-~but shook off the blow and
came back strong as the bell rang
for the end of the year.
The index of industrial produc-
ton, which dropped like a plum
met throughout virtually the en-
tire year. finally began to level
off and showed signs of recovery
at the year end. Widespread
strikes, of course, buffeted against
this swing.
Reconversion Well Started
The job OF physical reconver-
sion from war to peacetime pro-
duction-a problem that gave
many a business man the filters
as VI day neared-proved to be
less of a problem than almost
anyone expected. Well before the
start of the new year reconver-
sion was SO nearly completed that
it ceased to be discussed as a ma
jor problem, and the word it
self began to drop out of every
day language.
But with the physical job al
most completed and the whole
country crying for goods, Amef-
lean business found itself at one
of the strangest crossroads in
its history.
The conundrum at the cross
roads was which way to go on
wages and prices. Labor leaders
throughout the country asked for
higher wages Immediately to
cushion the drop from wartime
take-home pay. The government
favored wage increases where
possible without increasing prices,
and with price relief to follow
in six months n justified. Scores
of manufacturers baked. They
| pressed for higher prices to meet
higher wage costs and get the in
dustrial wheel to turning.
Intricate Industrial Machine
The result was strikes, some
| big, some small, and the public
began to realize almost for the
first time how intricate the indus
trial machine had become. New
| sleeping ears for soldiers were
held up because OF a relatively
obscure strike in a mattress fac
tory. A whole big automobile
plant was shut down because of
a walk-out in a gear making shop
hundreds of miles away.
The General Motors strike was
felt across the country, not only
because of the large number of
GIN plants involved, but also be-
cause the concern supplied parts
used. by other automobile manu-
facturers. The threat of a major
steel strike in January caused
even more concern.
Some considered it significant
that the calling Of a 700,000-man
strike, unless wage increases were
forthcoming, was announced in
l945 to be effective in l946.
Manufactures Accused
From both labor and govern
mental quarters, and from some
segments of business as well,
came charges that manufacturers
were holding back on production
in order to realize a greater prof
it by selling under a more favor
able tax setup in 1916. John w.
Snyder. director of War Mobili-
cation and Reconversion, was one
of the first to make the charge
openly. John l.. Lewis, president
of the United Mine Workers,
criticized the calling of the Gen
eral Motors strike in l945 for
somewhat the same reasons.
Despite all difficulties, the big
gest of which was the tremen-
dous wholesale cancellation of
war contracts, business men were
still able to put the brakes on
the swiftly falling curve of indus
trial production. The drop be-
gan to slow down in October.
On the basis of Federal Re-
servd Eank figures, with the
l935-l936 average taken as 100,
the production figure stood well
above go early in the year. 1t
went down to 30 in July, 1877 in
August and III in September,
when the full effects of VI daF
were felt. In October the figure
fell below 10 but the drop vas
less and thereafter the curve be-
gan TO flatten out.