HEAVY ALLIED WAR PURCHASES

Timaru Herald, Volume CXLVIII, Issue 21575, 10 February 1940, Page 9

HEAVY ALLIED WAR PURCHASES

America May Exercise Control United Press Association—By Electric Telegraph—Copyright (Received February 9, 11.50 p.m.) WASHINGTON, February 8. The Administration’s policy to meet the long range effects of continued large war purchases from the United States is likely to result in a conference between President Roosevelt, Mr Cordell Hull (Secretary of State), Mr Harry H. Woodring (Secretary of War), Mr Charles Edison (Secretary for the Navy) and departmental heads at White House to-day.

It is feared that foreign purchases may rapidly increase the prices of materials needed at home and also that the financing of expanded aeroplane factories with foreign capital may be carried too far and result in a post-war collapse of industry. President Roosevelt is reported to be anxious to formulate a policy of keeping the war demands within reasonable bounds. / The Secretary of the Treasury (Mr Henry Morgenthau Jr.) declared that he favoured letting industry formulate their own policies. Atlas Powder Company officials disclose that Britain advanced money for the construction of an explosives plant, the total output of which will be consigned to England and France. It is understood that payment will be gauged according to tonnage. It is officially stated that the production capacity of United States aero engine plants is 1000 monthly, will reach 1500 by mid-July and 2000 by the end of the year. It is estimated that a year’s production will be about 15,000 motors of an average of 1000 h.p. of which the United States army and navy will require 7500 to 8000. The Allies have contracted for virtually all the remainder.