V-E Day for Industry

When the Battle of the Bulge knocked all reconversion plans galley-west, WPB's "spot authorization" plan for civilian pro duction was one of the casualties. The plan, which had started up a trickle of new civilian goods, was summarily choked off by the Army demands. Last week, WPB decided that the time had come to put the spot plan into full operation again. This meant that, as fast as plants finish up their war contracts, they can get into produc tion on a limited number of civilian goods.

The resurrection of the plan was only a part of the great step WPB took toward reconverting U.S. industry. Without wait ing for a formal announcement, WPB quietly put into effect its own plans for V-E day. As fast as it could, WPB began to lift the system of controls from indus try and turn loose manpower and materi als for big-scale civilian manufacture.

Items : P: The bans on the making of dozens of civilian items (e.g., telephones, fire apparatus, sunglasses) were lifted as WPB dropped 41 more of its production control orders. In a few months, almost a third of some 733 controls which now strait-jacket industry will be dropped. Only enough controls will be kept to make sure that the armed services get what they need.

P: The job of cutting back war production some 15%, the first phase in shifting the U.S. from a two-front to a one-front war economy, has already started. WPBoss Julius Krug told a Senate committee: the cutbacks will take place within the next three or four months.

P: WPB doubled its estimate of the amount of steel which can be used for civilian production in the first big cutback period, the first quarter. There may be 3,000,000 tons -- enough to start mass pro duction of cars, refrigerators, etc.

All these moves, WPB cautioned, did not mean that a flood of civilian goods will be turned out tomorrow; tight controls will still be kept oh the three basic materials, copper, steel and aluminum.

Controls on the last will be lifted this week. Nor did it mean that some of the most pinching shortages (e.g., textiles, leather and lumber) will end. Army requirements for the Japanese war may well keep such items short for months.

But these first great steps to shift the U.S. from a two-front war to a one-front war did mean that, as war contracts are canceled, the manpower and materials freed will be shunted into civilian plants with a minimum of red tape. WPB still held up the go-ahead for the making of autos, refrigerators and washing machines.

But it is handing out so many top priori ties for reconversion tools and minor new construction that it is confident the plants will be ready when the signal comes.

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