The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1952-03-01
.oduy's
Business
Mirror
By SAM DAWSON

NEW YORK LR-The debate over
whether the United States is re
arming too fast for its economi.
health is taking a curious twist.
Many businessmen appear tC
have reversed their views recent
lily. Formerly they said America
was trying TO rearm too fast-poilr,
ing too great share OF critict:
materials into arms, and threaten
ing slow death TO many civilian
industries.
But now they say that defnn'-
prOduciicr -. : III. beariy as
~.,-; Il ,::ooi Of the critical metals
and other materials as first
thought They are asking for more
metal for civilian goods and
Washington has been handing out
bonuses of steel and aluminium to
non-defcnse industries. Many now
believe there's enough for all.
The businessmen arc making
still another complaint now. They
say That defense spending isn't boz
STEERING tte economy nearly as
much as il had been tOuted. The
money it was suDnosed TO put irtc
consumers pockets isn't showing
UP at the retail stores the way il
was supposed to. Defense initiation
is l,ugabO0 they no longer take
seriously.
Industries are using these argu.
ments in their drive to hasten de.
controls. They argue that if ma.
terials were allowed to go where
the customer could be found-rath.
er than by government order to
where the materials may not be
needed as much as once thought
the economy would right itself nor
mally. They contend that produc-
ton would squirt in some cut-back
plants, so that laid-off workers
could be rehired.
A few skeptics note that in some
industries the prime difficulty
seems to be to sell all the goods
the industry has capacity to make.
They. wonder if decontrol of ma
terials would solve many prob
lens there.
Another curious twist today is
that some industries which have
been offered bonus of more met
al by the National Production Au-
thority apparently aren't taking it.
NPA says the auto industry was
offered an additional 10 per cent
of steel for the present quarter, but
said ii had all the steel il could
use unless it could get more
copper.
NPA is offering this steel - cold
rolled steel sheet and strip, hot.
rolled strip and tin mill black
plate - to many other Industries.
Makers of Ill different products in
| lie consumer goods industries will
get chance at the extra metal.
Steel makers report they have
excess supplies of these forms of
steel and thcirsorder books have
big gaps in them. The steel scrap
shortage also has suddenly eased,
and steel mill operations are much
Tess frenzied than at the start of
the year.
| Extra aluminium is also showing
up unexpectedly
| Copper stills remains the prof.
lem child for many manufacturers
like auto makers--who have 10
gear their production to how much
of this metal the government will
let them have. But even here there
are many signs of easing in The
not too distant future.
The shortages that were very ap.
parent at the start of the year
we're major factor in the stretch.
out of the arms programme keep
from strangling the civilian econ.
omy. Now the shortages are melt.
ing-at least for the time being
and the latest question is:
| Is the stretched-ou. defense bro.
gram big enough 10 stave off a
solteping' in the economy as a
whole?