CHANGE OVER AFTER WAR

Dominion, Volume 37, Issue 280, 23 August 1944, Page 6

CHANGE OVER AFTER WAR

U.S. Industry’s Problems

(Received August 22, 10.50 p.m.) WASHINGTON, August 22.

While service leaders are worrying over the “peace fever” among American war workers, fearing that the trend will dangerously affect war production, the Administration is trying to carry out gradual reconversion of industry to prevent sudden widespread unemployment after the war.

The first step, which has aroused strong opposition from military men, has been taken by Mr. Donald Nelson, war production chief, who authorized the manpower officials to permit the resumption of the manufacture of 79 groups of items under a set of rules designed to safeguard war production, aud competition for materials and manpower. Mr. Nelson estimates the surrender of Germany will necessitate the restriction of the current war output by 40 per cent. This will still leave the output of civilian goods at the 1939 level. The problem is the absorption into industrial economy of lhe remaining 60 per cent, of war production when Japan 'is defeated.

Economists are warning that if the nation is to avoid catastrophe and enter a prosperous peace, some 65,006,000,000 dollars of extra civilian production must he found and integrated into the naliot.nl economy, but doubts have been expressed whether even the most lavish post-war employment plans could absorb this volume of productive capacity. Business men are arguing that every possible opportunity should be taken to resume civilian production and prompt measures taken to expand peacetime industries “to take up the slack” in idle manpower, materials and facilities.