More Aluminum

The impelling needs of defense last week drove the U.S. Government into the aluminum business. Jesse Jones's RFC arranged to put up $250,000,000 for new aluminum plants. They will be owned by the Government, operated by three private companies (Aluminum Co. of America, Reynolds Metals Co., Bohn Aluminum & Brass Corp.).

Reason was that all concerned, having badly under-guessed aluminum requirements (TIME, May 26), now recognized that what had been done before was not enough. RFC had already put up money for Reynolds to build two plants in competition with Alcoa. Its near-monopoly gone or going, Alcoa depended heavily on Government electricity from TVA and Bonneville Dam for additional new plants of its own. Resultant U.S. capacity (by 1943): 700,000 tons a year, probably not enough for military needs, let alone civilian and semimilitary requirements.

What made additional aluminum capacity absolutely necessary was a decision to expand big-bomber production. RFC last week set aside $350,000,000 to finance new bomber plants. Unless these plants have aluminum, they cannot make bombers. At the belated best, Mr. Jones's Government-owned aluminum plants may be operating by late 1942 (if they can be rapidly tooled, if sufficient power can be found, if enough bauxite--now mostly imported by Alcoa from Surinam--is at hand).

Bombers also take a lot of magnesium alloys. U.S. magnesium production in 1940: 13,000,000 lb. Jones's RFC last week stepped farther into this field as well, put up $50,000,000 to build new Government-owned magnesium plants' However the supply of such vital military materials may fare this year and next, defense is already changing the industrial face of the U.S.

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