Automatic Age

Issue: 1944 September

WPB Clears X-Day Program
The following statement by
J. A . Krug, acting chairman,
W ar Production B o a r d , was
made before the Senate W ar
Investigating Committee, Sep­
tember 8, 1944.
W e have completed the over­
all blueprint which was pre­
sented to a full meeting of the
W a r Production Board a n d
unanimously approved. T h e
Board instructed me to give it
quick and full publicity, so that
business, labor, and the public
should be able to proceed with­
out delay in the development
of specific post-X-Day plans.
I am pleased to be here again
to discuss the activities of the
W ar Production Board. When
I appeared before you on Mon­
day, August 28, you asked me
w h e n the W a r Production
Board would be ready with a
plan of action f o r increased
civilian production a f t e r the
defeat of Germany, I said that
work had been going on for
many months to develop an X
Day program and that we were
busy bringing those studies in­
to focus and getting ready for
operation.
W PB has a twofold responsi­
bility. First, we must maintain
the production schedules need­
ed by the armed forces. Second,
we must adopt policies which
will generate maximum recon­
version a n d
re-employment
after X-D ay. Much thought has
been given as to how we can
best do that. Our plan is simple.
W hen X-D ay comes, W PB will
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strip down as follows:
1. All limitation and mater­
ials conservation orders that
can possibly be removed will be
stricken from our books. A line­
up of the orders to be eliminat­
ed has been worked out. W e
will however, have to retain a
specific control on those mat­
erials which are likely to be
tight even after the defeat of
Germany and which are essent­
ial to production of munitions.
These tight materials, as they
now shape up, include cotton
textiles, crude rubber, tin, lum­
ber, cordage fibers, some chem­
icals, and a few other items
may be added to the list.
2. To protect military pro­
duction, military programs will
be given a p r i o r i t y rating,
which will give them a green
light in all plants. W e will also
retain our present A A A rating
for emergencies, both military
and civilian. This is an over­
riding priority which is tanta­
mount to a motorcycle escort
through traffic and which has
been used only in urgency pro­
grams.
Thus the plan gives consider­
able f r e e d o m of individual
choice. A n y manufacturer or
contractor will be able to carry
on any operation he s e e s fit
provided he can get the neces­
sary manpower, m a t e r i a l s ,
components, machinery, and
plant. W e do not i n t e n d to
program civilian production.
Under the program, the Con­
trolled Materials Plan will be
retained only for the quarter
for which CMP checks are out
standing. W e will want to pro
tect manufacturers’ orders that
have already gone to the mills.
W e will still keep our hands
on the steering wheel and a
ready foot on the brakes. The
W ar Production Board will re­
tain its Industry Divisions and
its Industry Advisory Commit­
tees. They will make certain
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that no one is permitted to pro­
cure unreasonable amounts of
materials or products and thus
tie up o t h e r companies. W e
must be sure that needed ma­
terials a n d components a r e
available to essential civilian
activities, such as transporta­
tion, fuel, public utilities. W e
will also make c e r t a i n that
small business has equality of
opportunity in procuring ma­
terials and supplies.
I want to make it clear that
I do not mean that the W ar
Production Board will attempt
detailed direction of the flow
of materials and components.
That is just what we are get­
ting out of. But we w i l l be
ready to step into emergencies.
And to handle those emergen­
cies we do not have to regiment
the entire economy. The object
of our plan is to go back to a
market-place economy in which
the individual decisions of thou­
sands of businessmen and mil­
lions of people will determine
what is bought, sold and pro­
duced.
I’d like to say a few words
about the thinking that under­
lies this plan. The W a r Produc­
tion Board, as you know, has
received indications from the
various procurement agencies
— the Army, the Navy, Mari­
time Commission and the Air
Forces— of what cutbacks will
take effect after the defeat of
Germany. W e have made cal­
culations of what t h a t will
m e a n in released resources.
And these suggest (1) t h a t
f r o m 4,000,000 to 5,000,000
persons will be released from
direct and indirect war work
within a year after X -D a y ; (2)
that large quantities of steel,
copper, and o t h e r materials
will become available— enough
to raise civilian production to
the levels of 1939. And 1939,
I don’t need to remind you, was
one of the top years in our na­
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tion’s history— on a par with
1929. From this, we could not
help but conclude that there
would be plenty of resources
available; the problem is to use
them and to use them fast, so
as to maintain maximum em­
ployment.
W hat is the best plan for
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accomplishing t h i s purpose?
Could it be done through de­
tailed centralized d i r e c t i o n
with c i v i l i a n programming
from Washington, or could it
be done better with a minimum
of central control and with the
detailed planning left to the in­
dividual initiative of business
5
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