Evening star., 1952-01-08
The Production Battle

Defense Mobilizer Charles E.-Wilson, in his
fourth quarterly report to the President, has
drawn an encouraging picture of our rearma-
ment progress in 1851 and of the outlook for
the year ahead. At the same time, however
he has emphasized that "the battle for produc-
ton" though it has been going well, has yet
to be won and that the Nation can suffer
serious reverses in it unless there is a con-
tinuing earnest effort to keep things in good
order on all fronts. including particularly labor
management relations and control of inflatonary
presSures
The nature of the battle has been summed
up by Mr.. Wilson in these words: "Never before
on so vast a scale has any nation attempted
to build military strength and at the same time
expand its basic economy maintain high levels
OF production of consumer goods and assist in
the arning of allies throughout the world"
Moreover, although there have been cutbacks in
civilian output, and although the pinch" in
that particular will continue into 1858, this
unprecedented guns s-and-b butter undertaking,
despite its magnitude and complexity, has been
successful enough thus far to. make Mr.. Wilson
feel justified in describing it as tremendous
achievement"
An impressive array of statistics can be
cited on that score. During 1851 for example,
investment in factory expansion throughout the
country was 48 per cent higher than in 1856
a great gain for our productive potential.
Similarly, our all-important steel industry has
boosted It's annual rate of output to 108, 900
1ngot tons compared to less than 100000
prior to the Korean war, and it is building now
toward capacity of 120,0000O0. In the same
period, our aluminium production has increased
by more than 100000 tons to total of 900
year, and by 1854 it will be double the mid-195O
figure, or twelve times that of 1889.
These are merely few of the many evidences
of how our basic economy has been undergoing
steady enlargement as the tempo of our
rearmament has been stepped up. AS far as
defense itself is concerned the progress achieved
can be measured by the fact that in the past
year the armed forces were provided with equip
ment, supplies and construction valued at SIC
billion, bringing the total to $40 billion since
June, 1850. LAS Of now deliveries are running at
about 81 billion a month or $24 billion yearly.
The deliveries are made up chiefly of "hard
goods like aircraft, tanks, ships and guns. The
"hard goods" according to Mr.. Wilson, are being
delivered at present at rate five times that of
the first three months after the outbreak of
the Korean aggression.
But these and similar gains, including huge
expansion work in the atomic field, do not mean
that the production battle is over. Far from
it. AS Mr.. Wilson has explained, the past year
has been essentially year of making ready,
tooling up, doing the myriad preliminary things
that must be done before the assembly lines
can roll out the "hard goods" in great volume
That is why some of the most important items
in our rearmament program-such as the COM
plex new tanks and aircraft of advanced design
will not be delivered until next winter or
later. In this connection, the shortage of ma
chine tools will continue to be limiting factor
for many months to come.
Yet Mr.. Wilson has left no room for doubt
that the whole program will be very far ad-
vanced by this time next year If there are no
serious work stoppages and if the line is held
to keep wages and prices stable. He has placed
particular emphasis on the fact that accelerated
military expenditures will soon be pouring
vast amount of additional purchasing power into
our economy at time when the supply of
civilian goods is limited. Accordingly, warning
that this is likely to revive the infationary
pressures that have been quiescent during 1851,
he has urged that Congress improve the present
controls law, and enact new taxes to prevent
possibly runaway situation.
Needless to say, such situation, plus few
big strikes would gravely affect the entire re-
armament effort. For then vital output would
be lost and the defense dollar would buy much
less than it is buying now. On the other hand,
if the imitation threat is held in check and If
labor management peace prevails, the produc-
tion battle will surely be won in way that
should make the Kremlin abandon whatever
plan it has for breaking up and mastering
the free world
ALI this activity of Mr.. Barkley seems to look
to one thing: If there is no proverb that Vice
Presidents shouldn't be snapped IN midstream,
he intends to coin oneA