Evening star., 1951-04-27

recommend that the Congress
Iextend for two years the Defens
Production Act of 1850, which is nov
scheduled to expire on June 3(
1851. I also recommend that tn
Iact be strengthened in certain re
: Ispects.
The Defense Production Act wa
enacted in September, 1950-tw,
months after the Communist at
tack on free Korea had made clea
the peril in which all free nation
: stand. 1t was legislative expires
sion of the national resolve to NEE
the worldwide Communist threa
, with a vast increase in our nilitar,
and economic strength.
The act provides the basic author.
Iity for our defense mobilization
program. 1t contains specific pro.
visions for expanding production
and for maintaining economic
Istability-the two essentials of the
defense program.
j Since last summer, we have made
la strong beginning in getting de-
Ifense production started, and we
lhave laid the basis for an effective
program to stabilize prices and the
fcost of living.
II We have doubled the number OF
men in our active Armed Forces
Isince last June. We have nearly
doubled the rate of production OF
military planes during the past
year. Monthly deliveries of mill
Itary equipment and supplies have
doubled since last June. In Europe
We have joined our associates in
the North Atlantic Treaty in estab-
Fishing a unified defense force, to
be made up of units from the treaty
countries, under the command of
Gen. Eisenhower. The Mutual De-
fense Assistance Program has been
stepped up substantially and other
free nations, particularly in Europe,
are rapidly enlarging their defense
establishments, as We are. -.
| For at least the next two years we
shall be driving urgently forward in
our defense mobilization program.
Therefore, it is of the greatest i'm
lportance that the Defense Produc-
| ton Act be extended for that period.
Defense Production.
Titles I, II and III of the act
relate to production.
Since June, 1850, the Government
has placed orders for planes, tanks,
guns and other military equipment,
facilities, and supplies in the amount
of over $26 billion. AS yet, only a
small part of these orders have been
filled and the goods delivered. Fur
Ithermore, over $58 billion more in
orders have yet to be placed before
lthe end of June, 1852
This is a tough production pro-
gram because we must build our
strength as rapidly as we can. The
world situation could explode at any
time, and we must make every day
count.
Consequently, the Government is
using extensively the powers grant,
ed in the Defense Production Act
to divert materials and plants from
less important to more important
uses. Under these powers, impor-
tant metals, chemicals, and other
materials - including such basic
materials as steel, copper, and
aluminunl-are being controlled and
channeled to the places they are
most needed.
For the next year, at least, it is
obvious that controls over materials
will have to become tighter and
tighter, as more and more of them
will be diverted to essential pro-
duction. Consequently, the alloca-
tions and priorities systems author
lied in the Defense Production Act
will be even more necessary than
they are now.
There is much more to our pro-
'duction program, however, than
simply diverting scarce materials
and converting existing plants to
defense production. =.
For example, the capacity of the
steel industry. which was 100 million
tons a year last June, will be ex-
panded, within two years, to at
least lit million tons a year. The
aluminium industry has a capacity
last June of 10000 tons a year;
by 1853 it should rise to 10000, 900
tons. The electric power capacity
of the nation-67,5 100000 kilowatts
at the beginning of this years.
being rapidly increased; we need to
add at least 100000 more kilo-
watts in the next three years.
Even with the existing production
aids, it may not be possible to obtain
the supplies and equipment needed
unless the Government is given
one power to help expand defense
production which it does not now
have. That is the general power,
which was used extensively and sue
cessfully in World War II, to build
defense plants. :.
To help expand defense produc-
ton, the Government also needs the
power to give special financial aid
to high cost producers in order to
obtain essential production from
them without increasing price CELL
ings. ="
In summary, to accomplish our
defense production goals, the De-
fense Production Act should be ex-
tended and strengthened. and
adequate funds to carry out its pro-
visions should be authorized.
Economic Sterilization.
Titles w, v, and vi of the De-
tense Production Act relate to
stabilization.
1t will be a tough job to accom-
plish the production goals of our
defense effort. 1t will, in many re-
Spects, be even harder to prevent
our defense effort from resulting in
|skyrocketing prices-with increased
defense costs. disruption of produc-
ton, and hardship for millions of
families.
If We are successful in preventing
another world war, at the end of
two or three years we should be
able to close the infiationary gap
by producing enough civilian goods
to match the buying power of busi-
IneSSes and consumers This can be
done when our expenditures for
military purposes and for new plants
will have leveled of-and the vastly
increased productive power of the
country can be devoted in greater