Evening star., 1950-11-16
New Drastic Pattern
OF Material Controls
Due Within Months
More Time Being Given
Producers to Arrange
ALLEGATION Of Supplies
Bv David Laurence

Bv David Laurence
The mood of Washington often
shifts with the winds of inter-
national affairs. Just now there
are apprehension and genuine fear
that the Chinese Communists.
with Soviet connivance, may be
trying to start a large scale war
in the Far East.
A short time ago, when it looked
as if the North Korean opposition
was being mopped up by the U.'N.
military forces, there was some
concern here lest the armament
program become begged down
through complacency.
The Government as yet has not
succeeded in impressing on the
country that a 1ong-range re-
armament program is in process
which must necessarily cut back
goods for civilian use and take
more and more raw materials for
military purposes.
The political campaign which
ended last week caused the post
ponement of many decisions that
are involved in the conversion of
the peacetime economy to "a new
pattern.
Period Differs From 1910.
There is one difference, how
ever, between 1910 and the pres
ent period. In this instance, more
time is being given for adjust
ment-more time for individual
producers to arrange for the al
location of their supplies.
But this very effort to do the
Job in a more orderly way than
before is bringing its complica-
tions. It is obvious that the idea
OF letting each seller of a product
In short supply determine how
much he will give to particular
customers will inevitably raise
howl from those who are not
getting the amounts they want.
Those businesses which are en-
gaging in war work for the first
time will be complaining If they
find themselves up against a dis
criminatory situation because they
happen not to have established
relations with suppliers.
Predictions are being made that
the wartime method of ALLEGATION,
such as the controlled materials
plan" will have to be applied by
the middle of next year, if not
sooner.
What is happening, of course, is
that the basis for a peacetime
system Of control has not been
laid by the international situa-
ton. The fluctuations in the
headlines make the problem more
and more difficult daily. Plainly
the President will have to call in
the Republican and Democratic
leaders of Congress soon and, after
an agreement is reached as to the
size of the military program, the
esential facts will have to be
given to the country.
Already there are industrial
layoffs due to shortages of ma
terials. While the statisticians
and the economists can explain
all this away by the statement
that defense orders will be coming
soon to take up the slack, the
interim period will not be made
any less painful.
No Way To Avoid Gaps
The truth is the United States
doesn't have an economy that
can be managed either by the
Government or by private industry
in such a way as to avoid these
gaps. Some def1ationary inf1u-
ences will set in even as more in
f1ationary influences are at work.
It is significant that the cost-of-
living index is receding slightly,
and this may apply restraint on
the demands for wage increases
which in themselves have been
adding to the inf1ationary spiral.
But 1t Is growing more and
more apparent every day that the
shortages of materials and the
Tightening of credit are directly
and indirectly affecting the en-
ployment picture. While much
Of the idle manpower will be
absorbed, there is always the geo.
graphical factor-new businesses
with defense orders do not arise in
the very localities where the lay
offs occur. Home-owners do not
move to other areas instanta-
neously.
UnqueStionably in few weeks
the members of Congress will be
hearing from their constituents
about the manner in which con-
trolls are applied, and the prob
lem then will be to find some more
equitable system of ALLEGATION
than the method now being used,
where the producers make the
decisions. So long as the COM
plants are few in number, the
present system will drift on but
those who are familiar with war
time experience say it is only a
question Of months when a more
drastic and sweeping pattern of
controls will have to be imposed.
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