Milford chronicle. [volume] (Milford, Del.) 1878-1974, 1950-10-06
The Stockpiiing
Speed-Up

WASHINGTON - The long lag
cling stockpiling program seems at
last ready to speed into high gear.
The new vigor and haste with
which the munitions board is act
ing in acquiring a national store OF
strategc and materials for use in
wartime is revealed in two recent
developements:
/. The proposed regular and sup
Elemental appropriations for stock
piling for the year ending June 30,
1851, total 81 ,1S9 100000. Last year
the appropriation was only S565- !,
GOO, 900.
2. The hoard has announced that
hereafter domestic producers OF
needed materials night be paid any
amount above the world market
price If such payments we're justi-
fled Gin terms Of urgent national
security need.
The second item is OF particular
interest. The stOckpiling program
is subject to the terms Of the Buy
American Act Of 1888. That act re-
duires that when the government
does any purchasing, it shall buy
American goods unless their cost
is unreasonable as compared TO
foreign goods. The government has
defined a domestic price as unreas-
enable If 1t is more than 70 per
cest above that for the same mater
iaI purchased from foreign sources.
Although the board all along
could have paid American pro-
ducers. as much as Is per cent
above the world price, actually It
has awarded orders to American
bidders only when their price was
equal to or below that Of foreign
producers. The intent of Congress,
according to the boards interpeta-
ton. was that it should pay no
more than the prevailing market
price.
Now under the new policy the
board NOT only is prepared to pay
a differential on American goods
but the differential won't even be
limited to % per cent.
The authority to pay the differ.
entail without any limit was con.
tanned in q recent letter from Johr
z. Steelman, the assistant TO th'
President, to Hubert HI Howard
former chairman Of the board
The reason for the new policy i
the need for steamed up stockpilin'
caused by the present emergency
An official OF the National Securit.
Resources Board, which work
closely with the Munitions Boar
on stockpiling, says certain wa
materials are needed Quic XII
which would NOT be available 500
enough under policies hitherto fol
lowed. Higher prices for certain
materials will encourage dOmesti
producers to supply the demand
He wouldn't say on what material
the board might pay a differentia
The Munitions Board has no in
tentions Of paying general sui
sidy for all materials which can
produced domestically. 1t viii pa
the differential only in case whe
the payment viii enable the boar
70 I'LL urgent needs.
There are two angles to that. III
high prices NOT only win produC
the goods ttat are wanted IN th
stockpile, out they also viii PR
vide mIpz operators and other prs
ducers with capital and incentiI
70 develop domestic sources not b
therto profitable Some critical mi
terials-m manganese. for instance
are purchased chiefly from abroa
because domestic ore supplies a,
Of low quality But If enoDe
money IS spent processing the
shey can be made as useful as al
foreign product.
One objection that Preside
Truman has had to such progra
however. is that It viii tend to
plete national resourceh: As lOl
as the ores are ia the ground,
says, they can always be put to u
IN an emergency.
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