UNITED STATES INDUSTRY

Press, Volume LXXIX, Issue 24124, 7 December 1943, Page 4

UNITED STATES INDUSTRY

CONVERSION TO WAR

BASIS

RECONSTRUCTION PLANS OUTLINED

Problems of post-war reconstruction in the United States and the mobilisation of industry to meet the needs of war were described by Dr. Allan Nevins, professor of American history at Columbia University, and special representative in New Zealand of the United States Office of War Information, at a luncheon held in Christchurch yesterday. Dr. Nevins was the guest of the Canterbury Chamber of Commerce, the Canterbury Employers’ Association, and the Canterbury Manufacturers’ Association.

The president of the Chamber of Commerce (Mr R. V. White), who welcomed Dr. Nevins, said that New Zealand owed much to the United States. She had been saved from the worst shocks of war, first by many thousands

of miles of ocean, and then by the ships of the United States Navy and »ig Americans who had gone to and die in lands in which their country was not interested, for the cause of the United Nations. Dr. Nevins said that Americans had always been deeply conscious of what they owed the great British democracies, The greater part of the American people realised that the New Zealand troops, in Greece and Crete had stood between the enemy and the Americans themselves. Also, the American people knew that several of the smaller nations, such as Sweden, Switzerland, and New Zealand, had much to teach the larger nations, and in social and political matters they had been glad to sit at the feet of New Zealand teachers. War Weapons

How the United States converted its manufacturing capacity to the output of war weapons after Pearl Harbour was described by Dr. Nevins. He said that the country had the necessary raw materials, but there were shortages of skilled manpower and machine tools. There were not nearly enough skilled mechanics, so all the engineering and technological schools were set to work training men on shortened courses. Dr. Nevins said that the United States had had large stores of raw materials, but it had leaned upon them to such an extent that there was a shortage in the actual reserves in sight. The United States had drawn upon its petroleum to such an extent that by 1930 or 1965 the end of all petroleum reserves would be in sight. The great iron ore beds of Lake Michigan and Lake Superior would be exhausted m 1955 or 1960 unless . consumption was lowered. Critical shortages of. aluminium and magnesium had been met by erecting new factories and increasing production. New aluminium production was expected to reach 1,000,000 tons a year, and magnesium production was expected to reach 360,000 tons. The immense shortage of rubber had been met by the erection of synthetic rubber mills, which would soon be producing 800,000 tons of rubber a year, whicti was one-third more than the pre-war consumption of natural rubber. Tne great steel-making capacity of the United States was not great enough, and production had had to be brought up to nearly 100,000 tons a year. Present capacity was 98,000,000 tons. Government Direction

“All this has been carried out under comprehensive Governmental direction,” said Dr. Nevins. "There is much more rigid and detailed national direction than there was in the last war. It is largely exercised, through experienced business executives who have been called into the service of the Government. The whole industrial effort, has been geared to a hign pitch of production, and on the whole is running comparatively smoothly, largely because the Government has handled business with considerable tact. It has written war contracts on liberal terms, and generally has asked business to work with it rather than under it. Also, it has allowed business leaders and corporations to show their initiative and special capacity in solving large problems.” TT .. , Dr. Nevins said that the United States had to face the great problems of post-war demobilisation and what was to be done with the industrial mechanism and the labour force that had been built up. Already the problem had been given careful consideration, and there were 200 agencies of a national character studying post-war reconstruction. From what he knew of American businessmen, they were going to insist on relaxation of Government control, and they, were anxious to do as much planning for post-war development as the Government. Planning Report The National Resources Planning Board had proposed after the war rather stringent Government control over certain sections of American economic life, a national repair and reconstruction campaign, and the starting of a large series of public works. It also proposed that all industries vital to national defence should be under mixed Government and private control, and that the Government should take control of the right of way and terminals of the railroaps, leasing them to the companies. The report had not been well received, as American opinion was rather hostile to the continuance of Government control which it suggested. ' ... Dr. Nevins said that the National Association of Manufacturers and the United States Chamber of Commerce wanted private enterprise to be encouraged after the war so that great numbers of people would make investments, which would enable industry to give employment to a large number. The plan of the Committee on Economic Development contemplated keeping the national income at a very high level. If the national income was kept at 125,000,000,000 dollars the committee considered it would be perfectly easy to solve all problems of employment. The committee had suggested a programme of study industry by industry to find what each should i contribute to maintain the national in--1 come at this level, and what were the economic requirements. , > “It is encouraging that private , industrial enterprises in the United States are undertaking alongside the . Government planning for post-war re- ’ construction.” said Dr. Nevins. “They are undertaking to make constructive proposals.”