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War Production Board - "War Progress:", August 14, 1942 - October 16, 1942
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War Production Board - "War Progress:", August 14, 1942 - October 16, 1942
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PRESIDENT'S SÉCRETARY'S FILE
Subject File
War Production Board:"War
Progress":8/14-10/16/42
Box 172
BLANK PAGE
6
CONFIDENTIAL
WAR PROGRESS
Thus, production is rapidly resolving
For all manufacturing, the July quit
itself into a battle between ingenuity
rate rose to 40 per 1,000 workers, from
and growing shortages of materials.
38 in June. But largely because of a
drop in shipbuilding quits (chart, page
War Progress Notes
20), 11 selected war industries showed
their first decline since November,
1941--to 35 perl,000, from 36 in June.
WOODSWOMEN
Reflecting continued job opportunities
IT WASN'T many months ago that women
in war plants, quit rates all manu-
were taboo around logging camps and saw-
facturing increased 70% since the be-
mills; they couldn't even get jobs as
ginning of the year, versus 50% for
cooks. But forest labor has become so
the war industries.
short that around 7,000 women--roughly
5% of total workers--are now employed in
FASHIONS FOR GUNS
felling, tallying, tying, and stacking;
THE WELL-DRESSED field artillery or
running trucks and yard locomotives;
antiaircraft gun is currently wearing
operating power saws, trimming machines,
tailored protective covers secured by
and conveyor belts. Preferred are "husky"
jumbo slide fasteners. The new zipper
women weighing around 150 pounds.
has teeth eight times the weight of those
used in heavy civilian garment zippers.
SPLICING SEDANS
Prior to the perfection of the jumbo
SOME 20,000 four-door sedans out of our
zipper, there was no continuous closure
400,000 "frozen" passenger cars have
rugged enough for satisfactory artillery
been set aside for cutting up and splic-
use. The new zippered coverings are
ing together into 15-passenger buses.
practically dustproof and may be removed
They'll be used primarily to transport
much more quickly than the old-style
war workers to and from their jobs. The
covers made with snap fasteners, lac-
sedan bodies and chassis are cut in half,
ings, etc.
a six-foot center section-made largely
of hardwood lumber and building board--
AXIS VACATIONS
is built in, and three additional three-
THE BERLIN RADIO bragged last week that
passenger seats installed. Sidelight:
German workers will get two weeks' va-
These sedans are equipped with 6.00x16
cation this year and that thousands of
tires, which are relatively scarce; in
armament workers are now on vacation.
conversion, they're changed over to the
The London radio amplified the boast,
larger--and more plentiful--7.00x16's.
saying that workers in many German plants
MORE JOB SWAPPING
would get more than two weeks' vacation
--until factories blasted by the R.A.F.
DURING JULY, llout of every 1,000 work-
are rebuilt.
ers went from jobs in war plants to
the armed forces, compared with 9 per
FARM PRICES
1,000 for all manufacturing--thus con-
FARMERS RECEIVED about 10% more for
tinuing the trend since Pearl Harbor.
their products on August 15 than on March
Since many war industries employ large
15. Truck farmers were the largest ben-
numbers of draft-age males, military
eficiaries--prices received by truck
separations will probably continue to
farmers rose 90%. Miscellaneous farm
outstrip those in all manufacturing.
goods and chickens and eggs (partly be-
SEPTEMBER II, 1942
CONFIDENTIAL 7
SCORECARD ON MERCHANT SHIPPING
United Nations tonnage rose again last month, as sinkings dropped to the low-
est level since January and construction continued to rise.
2000
2000
Sinkings vs. Construction
1000
1000
Sinkings
Construction
0
0
*1000
+1000
Net Loss (or Gain) - Monthly
THOUSANDS OF DEADWEIGHT TONS
Goin
0
o
Loss
THOUSANDS OF DEADWEIGHT TONS
-1000
-1000
0
o
The Cumulative Deficit
2000
2000
4000
4000
6000
6000
8000
8000
10,000
10,000
1940
1941
1942
1943
WAR PROGRESS
ADDITIONAL SHIP SINKINGS WHICH OCCURRED AS LONG AS
RISING AND FOR TWO MONTHS HAS EXCEEDED SINKINGS.
À YEAR AND MORE AGO HAVE BEEN RECORDED WITHIN THE
EVEN so, IF SINKINGS CONTINUE AT RECENT LEVELS AND
PAST FEW WEEKS, RAISING THE CUMULATIVE NET LOSS OF
CONSTRUCTION COMES UP TO SCHEDULE, IT WILL TAKE MORE
UNITED NATIONS SHIPS, SINCE MID-1940, TO ALMOST
THAN 16 MONTHS-INTO JANUARY, 1944-TOWIPE OUT THE
9,500,000 DEADWEIGHT TONS. NEW CONSTRUCTION IS
CUMULATIVE TONNAGE DEFICIT.
8 CONFIDENTIAL
WAR PROGRESS
cause of seasonal factors) showed the
talline form-which will supplement the
next highest increases. Fruits and meat
dozen "sulfa" tablets carried' by every
animals had modest rises, while cotton
soldier inthe field--is a direct result
made no gains and grain farmers actually
of Pearl Harbor experience.
received less in August than in March,
AUGUST MUNITIONS DATA
as the following table shows:
PRELIMINARY ESTIMATES of munitions de-
Aug.15
Mar.15
Change
livered or in place in August indicate
Total prices
107
97
+10%
a 6% gain over July. Month-to-month
Meat animals
200
180
+11
comparisons by major categories follow:
Truck crops
256
136
+90
Miscellaneous
173
132
+31
p August
July
Chickens & eggs.
156
130
+20
(millions of dollars)
Fruits
126
111
+14
Airplanes, parts
Dairy products.
151
144
+ 6
and accessories $ 578
$ 549
Cotton
151
151
o
Ordnance
954
904
Grains
....
115
122
- 6
Naval ships
517
451
Merchant ships
182
187
ARMY'S MAGIC CRYSTALS
Other munitions
ALL SOLDIERS in combat areas are now
and supplies
909
864
receiving a brand new item for their
Total munitions
$3,140
$2,955
first-aid kits--5 grains of crystallized
P Preliminary
sulfanilamide. Purpose: On-the-spot
self-medication by sprinkling on open
Checks paid by the Treasury for war
wounds. The decision to provide indi-
activity in August were $4,882,000,000,
vidual packets of sulfanilamide in crys-
as compared with $4,494,000,000 in July.
THE WAR PROGRAM- Financial Summary
300
300
250
250
200
200
BILLION DOLLARS
150
150
PROGRAM
(Appropriotions and Net Authorizations)
BILLION DOLLARS
100
100
50
50
CONTRACT AND
OTHER COMMITMENTS
VALUE OF PRODUCTION
o
o
J A S 0 N D J F M A M J J A S o N D J F M A M J J A S 0 N D
1940
1941
1942
WAR PROGRESS
SEPTEMBER 11, 1942
CONFIDENTIAL
9
WAR PROGRESS SERIES
TOTAL WAR PROGRAM IN THE UNITED STATES
Cumulative 6/11/40 to
Monthly
End lst
End of
End of
full year
December
June
May
June
July
h
6/30/41
12/31/41
6/30/42
1942
1942
1942
TOTAL WAR PROGRAM IN THE U.S.ᵃ
(Million
dollars)
Program-Pending
P 9,525
Program-Enacted
40,861
80,604
P 174,384
0
P 5,615
P. 44,471
Uncommitted balance
9,274
23,979
P 40,290
-
-
-
Contracts and other
commitments
31,587
56,625
p 134,094
P.,
9,731
P 12,098
n.a.
Value delivered and/or in
place
b
8,547
18,573
P 39,222
p 4,060
P 4,602
n.a.
Checks paid
C
8,536
17,965
p 37,562
3,925
P 4,156
P
4,824
MUNITIONS PRODUCTION.& WAR CONSTRUCTION.
TOTAL
Program
37,027
69,305
P 156,214
0
P 5.358
P 32.543
Uncommitted Balance
7,597
18,281
P
33,761
-
-
-
Contracts and other
commitments
29,430
51,024
P 122,453
P 9,107
P 9,999
n.a.
Value delivered and/or
in place
b
6,795
14,750
p 32,184
P 3,465
P 3,882
n.a.
Value not delivered nor
in place
22,635
36,274
P 90,269
-
-
-
PRODUCTION OF MUNITIONS
Program
28,566
53.738
P 124,097
-25
p 4,756
P 29,952
Uncommitted balance
4,901
13,929
p 29,106
-
-
I
Contracts and other
commitments
23,665
39,809
P 94,991
P 6,668
P 6,942
n.a.
Value delivered and/or
in place
b
4,290
8,940
20,449
2,248
2,638
P 2,955
Value not delivered nor
in place
19,375
30,869
p 74,542
-
-
I
WAR CONSTRUCTION
Program
8,461
15,567
P 32,117
25
p
602
P
2,591
Uncommitted balance
2,696
4,352
P 4,655
I
-
-
Contracts and other
commitments
5.765
11,215
P 27,462
P 2,439
P 3,057
n.a.
Value delivered and/or
in place
b
2,505
5,810
P 11,735
P 1,217
P 1,244
n.a
Value not delivered nor
in place
3,260
5,405
P 15,727
-
-
-
NON-MUNITIONS WAR ITEMS, TOTAL
Program
3,834
11,299
P 18,170
0
P
257
p 11,928
Uncommitted balance
1,677
5,698
P 6,529
-
-
-
Contracts and other
commitments
2,157
5,601
p 11,641
P
624
P 2,099
n.a.
Checks issued
1,752
3,823
P
7,038
P
595
P
720
n.a.
Graph appears on opposite page.
For footnotes see Page 22.
Table continued on Page 11.
10 ... CONFIDENTIAL
WAR PROGRESS
MUNITIONS PRODUCTION- Financial Summary
54
150
150
125
125
100
100
BILLION DOLLARS
PROGRAM
(Appropriotions and Net Authorizations)
75
75
BILLION DOLLARS
50
50
CONTRACT AND
25
OTHER COMMITMENTS
25
0
VALUE OF PRODUCTION
0
J A S 0 N D J F M A M J J A S 0 N D J F M A M J J A $ 0 N 0
1940
1941
1942
WAR PROGRESS
SEPTEMBER 11, 1942
CONFIDENTIAL
...
=
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End lst
End of
End of
SUMMARY
full year
December
June
May
June
July h
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million dollars'
BREAKDOWN OF MUNITIONS PRODUCTION
MUNITIONS PRODUCTION, TOTAL
Program
28,566
53.738
P124,097
-25
P 4,756
p 29,952
Uncommitted balance
4,901
13,929
P 29,106
-
-
-
Contracts and other
commitments
23,665
39,809
P 94,991
P 6,668
P 6,942
n.a.
Value delivered and/or
in place
b
4,290
8,940
20,449
2,248
2,638
P 2,955
Value not delivered nor
in place
19,375
30,869
P 74,542
-
-
1
AIRPLANES, PARTS & ACCESSORIES
Program
8,582
15,072
P 37.586
0
p
-215
p 9,737
Contracts and other
commitments
7,381
13,298
P 33,945
P 2,409
P 2,838
n.a.
Value. delivered
1,010
2,265
4,752
471
510
P
549
ORDNANCE
Program
7,778
17,488
P 36,400
0
P
285
P 9,548
Contracts and other
commitments
5,418
10,354
P 26,873
p 2,278
P 2,360
n.a.
Value delivered
700
1,685
4,998
6966
731
P
904
NAVAL SHIPS
Program
6,796
9,605
P 18,460
0
P
2,922
P
0
Contracts and other
commitments
6,442
7,930
P 12,276
275
P
276
n.a.
Value delivered and/or
in place
810
1,665
3.383
3996
404
P
451
MERCHANT SHIPS
Program
1,442
3,288
P 8,653
-25
P 1,054
P
C
Contracts and other
commitments
1,484
2,381
p 6,880
p
607
P
618
n.a.
Value in place
240
510
1,188
131
176
187
OTHER MUNITIONS AND SUPPLIES
Program
3,968
8,285
P 2,998
0
P
710
p 10,667
Contracts and other
commitments
2,940
5,846
P
15,017
P 1,099
P
850
n.a.
Value delivered
1,530
2,815
6,128
551
817
P
864
Graph appears on opposite page.
For footnotes see Page 22.
Table continued on Page 13.
12 ... CONFIDENTIAL
WAR PROGRESS
WAR CONSTRUCTION- Financial Summary
50
50
40
40
30
30
BILLION DOLLARS
PROGRAM
(Appropriations and Net Authorizations)
BILLION DOLLARS
20
20
CONTRACT
AND OTHER
COMMITMENTS
10
10
VALUE OF PRODUCTION
o
0
J A S o N D J F M A M J J A S 0 N D J F M A M J J A S 0 N D
1940
1941
1942
WAR PROGRESS
SEPTEMBER 11, 1942
CONFIDENTIAL ... 13
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
June
May
June
July h
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million dollars)
BREAKDOWN OF WAR CONSTRUCTION
WAR CONSTRUCTION, TOTAL (LAND, BLDGS., EQUIP.)
Program
8,461
15,567
P 32,117
25
P
602
P 2,591
Uncommitted balance
2,696
4,352
P 4,655
-
I
-
Contracts and other
commitments
5,765
11,215
P 27,462
p 2,439
P 3,057
n.a.
Value in place
2,505
5,810
P 11,735
P 1,217
P 1,244
n.a.
Value not in place b
3,260
5,405
P 15,727
-
-
-
INDUSTRIAL FACILITIES (LAND, BLDGS., EQUIP.)
Program
5,120
8,112
P 17,610
25
p
707
P
172
Contracts and other
commitments
2,865
6,318
P 16,697
p 1,047
P 1,592
n.a.
Value in place
960
2,800
P 5,990
P
629
P
615
n.a.
INDUSTRIAL FACILITIES, BUILDINGS ONLY
Program
1,607
3,137
P 6,660
p
389
P
768
n.a.
Value in place
575
1,753
p 2,990
P
287
P
307
P
344
POSTS, DEPOTS, STATIONS
Program
2,849
6,063
P 13,115
0
P -105
P 2,419
Contracts and other
commitments
2,625
4,381
P 9,890
P 1,317
P 1,390
n.a.
Value in place
1,430
2,670
P 5,179
P
545
P
580
P
845
DEFENSE HOUSING
Program
492
1,392
P 1,392
0
P
0
P
O
Contracts and other
commitments
275
516
P
875
P
75
P
75
n.a.
Value in place
115
340
P
566
P
43
P
49
P
52
BREAKDOWN OF
NON-MUNITIONS
NON-MUNITIONS, TOTAL
Program
3,834
11,299
P 18,170
0
P
257
P 11,928
Uncommitted balance
1,677
5.698
P 6,529
-
-
I
Commitments
2,157
5.601
P 11,641
P
624
P 2,099
n.a.
Checks issued by agencies
b
1,752
3,823
P 7,038
P
595
P
720
n.a.
STOCKPILE
Program
983
2,399
P 2,713
o
P
0
P
0
Commitments
470
1,050
P 1,140
P
30
P
0
n.a.
Checks issued by agencies
192
488
P
1,011
p
102
P
100
n.a.
Graph appears on opposite page.
For footnotes 800 Page 22.
Table continued on following page.
14
CONFIDENTIAL
WAR PROGRESS
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 tc
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
h
SUMMARY
December
May
June
full year
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million
dollars)
BREAKDOWN OF NON-MUNITIONS (Continued)
AGRICULTURAL EXPORTS (LEND-LEASE)
Program
625
1,522
P 2,138
0
P
0
P
0
Commitments
66
561
P
1,143
P
65
P
149
n.a.
Checks issued by agencies
1
211
P
629
87
P
90
n.a.
PAY, SUBSISTENCE & TRAVEL
f
Army Military
Program
944
3,013
P
3,904
o
P
0
P
8,534
Commitments
934
2,030
P
3,849
P
281
P
285
n.a.
Checks issued
696
1,510
P
2,744
P
220
P
315
n.a.
Navy Military
Program
378
963
P
2,478
o
P
232
P
o
Commitments
334
610
P
1,143
P
110
P
104
n.a.
Checks issued
388
642
P
1,042
P
70
P
98
n.e.
Civilian Payroll
Program
32
247
P
299
0
P
46
p
542
Commitments
32
140
P
255
P
15
P
20
n.a.
Checks issued
356
682
P
1,115
P
79
P
80
n.o.
MISCELLANEOUS NON-MUNITIONS
Program
872
3,155
P
6,638
0
P
-21
P
2,852
Commitments
321
1,210
P
4,111
P
123
P 1,541
n.a.
Checks issued by agencies
119
290
p
497
p
37
P
37
n.a.
P Preliminary
Table continued on following page.
For footnotes see Page 22.
SEPTEMBER 11, 1942
CONFIDENTIAL ... 15
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
June
May
June
July h
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million
dollars)
d
BREAKDOWN OF
AGENCIES
UNITED STATES FINANCED WAR PROGRAM
Program
37,075
76,508
P 170,288
0
P 5,615
P 44,471
Uncommitted balance
9,274
23,979
P 40,290
-
-
:
Contracts and other
commitments
27,801
52,529
p 129,998
P 9,731
P 12,098
n.a.
Checks paid
6,431
15,251
P 34,510
3,880
2 4,123
P
4,794
U. S. ARMY
Program
13,134
31,981
P 84,468
o
P
0
P 42,090
Contracts and other
commitments
P 70,402
p
11,404
23,334
6,138
P 8,397
n.a.
Checks paid
3,636
7,889
15,649
1,497
1,662
n.a.
U. S. NAVY
Program
12,308
20,024
2 47,990
o
P 4,355
P
0
Contracts and other
commitments
11,182
16,327
P 32,325
P 1,971
P 2,361
n.a.
Checks paid
2,217
4,726
10,128
1,229
1,237
n.a.
LEND-LEASE
Program
7,000
12,985
2 18,410
0
P
0
P
O
Allocations
5,177
11,345
14,085
508
-281
n.a.
Contracts and other
commitments
2,458
6,282
10,665
305
484
n.a.
Checks paid
21
910
4,099
626
665
n.a.
U. S. MARITIME COMMISSION
Program
784
2,734
P 7,654
0
P 1,070
P
0
Contracts and other
commitments
886
1,724
P 6,333
608
P
631
n.a.
Checks paid (Net)
44
156
642
93
114
n.a.
RFC AND SUBSIDIARIES
Program
2,623
5,130
p 7,704
0
P
0
P
0
Contracts and other
commitments
1,151
3,569
P 7,916
P
509
Pt
0
n.a.
Checks issued by RFC
350
956
P 2,510
327
P
300
P
300
OTHER U. S. AGENCIES
Program
1,226
3,654
P 4,062
0
P
190
P
2,381
Contracts and other
commitments
720
1,293
P 2,357
p
200
P
225
n.a.
Checks paid
163
614
1,482
108
145
n.a.
FOREIGN ORDERS
Program (Orders)
3,786
4,096
P 4,096
0
P
0
P
0
Commitments
3.786
4,096
P 4,096
0
P
0
P
0
Checks issued by
Purchasing Missions
2,105
2,714
P 3,052
45
P
33
P
30
For footnotes 880 Page 22.
AUGUST 14,1942
CONFIDENTIAL
9
War Progress Notes
months, the index hovering around 90.
Utilization of machines has averaged
110. Shortages of materials, skilled
WHO GETS THE INCOME?
labor, and equipment have been impor-
AN INCREASING PROPORTION of national
tant factors retarding expansion in
income is going into salaries andwages,
around-the-clock operations.
which accounted for 68% of income pay-
LABOR TURNOVER
ments in June, compared with 66% in
June last year, and 64% two years ago.
THE NUMBER of industrial workers quit-
The war's effect on the economy is
ting their jobs has been rising stead-
clearly indicated by the statistics.
ily since last November and in June was
The share of total wages and salaries
at a new all-time high of 3.85 per hun-
in the distribution and service indus-
dred workers. Workers have left jobs
tries dropped from 40% in June, 1941,
primarily for higher wages or better
to 35% this year. But the proportion
working conditions, including better
of wages and salaries going to miners,
housing and transportation facilities.
farmers, and construction and factory
Among war industries, the highest
workers (asyou'd expect, with increased
quit rates were reported for shipbuild-
factory and farm production) has risen--
ing (5.71), firearms (4.29), and alu-
from 44% last June to 46% this June.
minum manufacture (3.88).
Two years ago, the proportion was 38%.
Separations to join the armed forces
Expansion in the federal government
also rose, and total separations from
also is duly reflected in the figures.
manufacturing industries in June were
In June, 1941, government workers col-
6.46 per hundred, up 75% from June,
lected 14% of total wages and salaries;
1941. Because of adecline in layoffs,
this June it was 18%.
however, total June separations were
slightly lower than the May figure.
PLANT UTILIZATION
(Chart, page 20.)
SHIPYARDS made a big gain in spreading
New employment jumped sharply, and
the work around the clock last month-
net accessions rose to 1.79 per hun-
and as a result, the index of plant
dred in June, from 0.75 in May. In 11
utilization shot up five points to 82.0.
selected war industries, the net acces-
Whereas total employment in yards em-
sion rate June was 4.17 per hundred.
bracing 50% of the industry rose 7%, the
Shipbuilding (7.97) andaircraft (6.77)
number of workers on the first shift
continued to show the greatest gains.
increased only 3%-on second and third
The smallest expansion in recent
shifts the gain was 15%. More Saturday
months has been in brass, bronze, and
and Sunday work also contributed to the
copper products, and in blast furnaces,
increase in plant utilization.
steel works, and rolling mills; fact,
Pearl Harbor brought a sharp increase
gains in some months have been partly
in plant utilization in private ship-
offset by declines in others. In the
yards. But after reaching a peak at
brass, bronze, and copper industries,
73.0 in February the utilization curve
conversion towar production has forced
leveled off. Since May it has been ris-
layoffs; in steel, present plants have
ing again.
been operating close to capacity and
In the machine tool industry, plant
increases in employment must come large-
utilization has held steady for four
ly in new plants:
16 CONFIDENTIAL
WAR PROGRESS
MORE TON-MILES IN A CARLOAD
As a result of heavier loading and longer houls, railroad freight car
utilization has risen sharply
200
16
Total Carloadings
Ton-Miles per Carload
14
INDEX 1940 AVERAGE 100
150
Ton-miles
12
Carloadings
THOUSAND TON-MILES
100
IO
50
8
800
2000
L.C.L. Loadings
Miscellaneous Loadings
70C
600
1500
500
400
THOUSAND CARLOADINGS
300
1000
1600
500
Coal, Coke and Ore Loadings
Grain, Livestock &
THOUSAND CARLOADINGS
Forest Products
Loadings
450
1200
400
800
350
400
300
1940
1941
1942
1940
1941
1942
WAR PROGRESS
SEPTEMBER 11, 1942
CONFIDENTIAL
17
ECONOMIC ACTIVITY RELATED TO THE WAR
Note: Certain statistical series included in these tables are nonconfidential and are
published in such public documents as the Federal Reserve Bulletin, Survey of Current Busi-
ness, etc. Obviously inclusion here should not be construed as a limitation on their use.
1940
1941
1942
Wk.ending
July
July
June
July
August
Sept. 5
BLS PRICE INDEXES
Strategic materials
123.6
140.3
147.6
147.7
P
147.8
147.8
Critical materials
8/39
107.5
115.2
123.2
123.9
P 124.0
124.0
Basic commodities
=100
108.5
148.7
166.4
167.2
166.9
167.3
Machine tools
108.7
117.6
118.0
118.0
I
I
All commodities (1926=100)
77.7
88.8
98.6
P
98.7
P 99.0
P 99.1
ELEC. POWER PROD. (mil. kwh.)
12,094
r 14,323
15,182
16,004
P 16,415
WAR BOND SALES (mil. dollars)
-
342
634
901
697
167
TRANSPORTATION
Freight carloadings (thous.
Total
per wk.)
706
853
846
830
870
Coal, coke, and ore
198
236
269
255
267
All other
508
617
577
575
603
Miscellaneous
273
356
382
379
400
Less than carload lots
142
151
94
86
90
Grain and livestock
61
67
50
59
59
Forest products
32
43
51
51
54
Freight carloadings as
percent of capacitya
Total
80.0
91.6
85.9
83.7
87.5
Coal, coke, and ore
80.5
90.0
97.3
91.7
95.4
All other
77.6
90.2
79.4
78.6
82.5
Unloads for export (no. per
Total
mo.)
49,781
54,982
73,188
72,102
80,412
Atlantic coast ports
32,598
37,842
44,170
39,566
36,566
Gulf coast ports
13,724
12,207
14,317
13,702
11,579
Pacific coast ports
3,459
4,933
14,701
18,834
22,267
Freight equipment (1st of mo.
Total cars
thous.)
Owned
1,645
1,661
1,731
1,736
1,737
Serviceable
1,492
1,576
1,668
1,679
1,682
Active
1,365
1,496
1,588
1,597
1,615
Coal, coke, and ore cars
Owned
785
797
820
824
825
Serviceable
701
749
790
796
799
Active
655
722
781
782
793
All other cars
Owned
860
864
911
912
912
Serviceable
791
827
878
883
883
Active
710
774
807
815
822
Graph appears on opposite page.
r Revised
P Preliminary
la Peak capacity represents full utilization ofall serviceable cars at the highest utili-
zation rate since the beginning of the defense program. See issue #100, page 22.
18 CONFIDENTIAL
WAR PROGRESS
THE FOREIGN TRADE SITUATION
800
800
How Much We Export, And To Whom
700
700
600
600
500
500
MILLIONS OF DOLLARS
Africa
400
400
USSR
MILLIONS OF DOLLARS
300
All Other
300
200
Latin America
200
Canada
100
100
United Kingdom
C
0
J F M A M J J A 5 0 N D J F M A M J J A S o N D J F M A M J J A S o N D
1940
1941
1942
400
400
How Much We Import, And From Whom
300
300
Africo
MILLIONS OF DOLLARS
200
200
All Other
MILLIONS OF DOLLARS
Philippine is. a Netherlands
100
British Malaya 8 India
100
Lotin Americo
Conodo
o
o
J F M A M J J A S O N D J F M A M J J A S o N D J F M A M J J A S 0 N D
1940
1941
1942
WAR PROGRESS
SEPTEMBER 11, 1942
CONFIDENTIAL
19
ECONOMIC ACTIVITY RELATED TO THE WAR
1940
1941
1942
July
July
March
April
May
June
UNITED STATES FOREIGN TRADE
Domestic exports dollars)
312
355
603
688
519
By economic classes
Crude materials
32
30
24
36
Crude foodstuffs
8
7
5
6
Mfd. foodstuffs & bev.
13
38
65
97
Semimanufactures
75
54
75
90
Finished manufactures
184
226
434
459
By countries
Canada
60
65
101
108
94
Latin America
58
66
79
75
57
United Kingdom
109
129
196
183
167
U.S.S.R.
5
3
101
169
73
Portugal and Spain
4
2
1
1
a
India and dependencies
7
5
28
32
25
British Malaya
2
2
a
a
0
China
7
4
10
13
5
Philippine Islands
7
8
0
0
o
Netherlands Indies
4
7
1
Iso
In
Japan
15
5
0
0
0
Oceania and Australia
8
8
28
31
30
Africa
12
39
46
53
47
All other
14
12
12
23
21
Imports for consumption(mil
218
264
252
223
P
192
P
223
By economic classes dol.)
Crude materials
85
119
95
76
Crude foodstuffs
25
23
36
35
Mfd. foodstuffs & bev.
23
24
25
25
Semimanufactures
45
62
58
51
Finished manufactures
40
36
38
36
By countries
Canada
37
44
58
52
P.
46
P
51
Latin America
52
72
96
87
P
78
P
106
United Kingdom
16
10
11
10
p
7
p
10
U.S.S.R.
1
3
1
a
p
1
p
3
Portugal and Spain
2
3
1
2
P
2
P
2
India and dependencies
10
11
14
13
P
9
P
10
British Malaya
23
32
11
7
P
2
P
1
China
9
9
3
4
P.
4
all
Philippine Islands
8
8
1
1
P
1
In
Netherlands Indies
14
23
18
9
P
2
p
1
Japan
13
9
di
a
a
a
Oceania and Australia
2
11
13
14
P
20
P
16
Africa
14
13
15
11
P
11
P
12
All other
17
16
10
13
P
9
P
11
WATER BORNE FOREIGN COMMERCE
Exports (thous. long tons)
4,834
4,983
3,163
5,021
P 5,405
P
5,821
Foreign countries
4,533
4,614
2,853
4,760
p 5,030
p 5,525
Noncontiguous territories
301
369
310
261
P
375
P₁
296
Imports (thous. long tons)
3,531
4,339
2,533
2,639
P 2,245
p
2,273
Foreign countries
3,323
4,097
2,386
2,493
P 2,085
P
2,169
Noncontiguous territories
208
242
147
146
P
160
P
104
Graph appears on opposite page.
P Preliminary
a Less than $500,000.
el
July, 1940 and July, 1941 figures are the monthly averages for the years 1940 and 1941.
Data do not include cargoes destined for use by the U.S. Army or Navy.
20 CONFIDENTIAL
WAR PROGRESS
WAR TRENDS IN LABOR TURNOVER
Aircraft
Shipbuilding
15
25
Total Accessions
Total Accessions
20
RATE PER 100 EMPLOYEES
10
15
Net Accessions
Net Accessions
10
RATE PER 100 EMPLOYEES
5
Total Separations
Total Separations
Other
Other
5
Layoffs
Layaffs
Quits
Quits
0
0
1940
1941
1942
1940
1941
1942
WAR PROGRESS
ECONOMIC ACTIVITY RELATED TO THE WAR
1940
1941
1942
July
July
May
June
July
August
EMPLOYMENT (Thousand workers)
Total civil nonagricultural
36,800
40,200
41,400
41,800
42,300
42,800
Selected industries
Locomotives
6
13
20
20
21
Railroad cars
32
56
62
62
57
Chem. fire extinguishers
1
3
5
6
6
UNEMPLOYMENT
Number of unemployed( thous.)
9,300
5,700
2,600
2,800
2,800
2,200
Cumulative 6/11/40 through
Monthly
1941
1942
1942
June
June
July
May
June
July
VALUE OF FACIL. ON APPLIC.
FOR CERT. OF NECESSITY
(Million
dollars)
Total approved
1,030
3,441
3,603
170
296
162
Private funds
829
2,996
3,101
164
258
105
Public funds
201
445
502
6
38
57
Pending
387
554
n.a.
-
-
-
SEPTEMBER 11, 1942
CONFIDENTIAL
21
ECONOMIC ACTIVITY RELATED TO THE WAR
1940
1941
1942
July
July
April
May
June
July
LABOR TURNOVER
ALL MANUFACTURING
(Rate per 100 employees)
Total accessions
4.77
6.00
7.12
7.29
8.25
8.29
Total separations
3.35
4.24
6.12
6.54
6.46
6.75
Quite
0.85
2.25
3.59
3.7,
3.85
4.03
Layoffs
2.25
1.40
1.31
1.43
1.21
1.06
Discharges
0.14
0.29
0:35
0.38
0.38
0.43
Military separations
n.a.
0.19
0.68
0.68
0.78
0.93
11 MAJOR WAR INDUSTRIES
Total accessions
5.09
7.11
8.86
8.92
10.09
9.71
Total separations
1.85
3.09
5.32
5.93
5.92
5.96
Quite
0.84
1.90
3.22
3.51
3.61
3.50
Layoffs
0.73
0.52
0.68
0.77
0.64
0.53
Discharges
0.15
0.34
0.43
0.47
0.48
0.49
Military separations
n.a.
0.17
0.83
0.82
0.93
1.13
AIRCRAFT
Total accessions
12.40
12.68
10.31
10.38
11.91
12.21
Total separations
3.57
3.36
5.29
5.67
5.14
5.77
Quits
2.96
2.48
3.79
4.06
3.60
3.76
Layoffs
0.15
0.19
0.14
0.07
0.05
0.03
EXPLOSIVES
Total accessions
4.30
5.95
3.85
4.66
4.83
5.12
Total separations
1.32
2.16
3.50
3.17
4.05
3.95
Quite
0.73
0.95
1.92
1.93
2.43
2.25
Layoffs
0.40
0.35
0.26
0.11
0.02
-
FIREARMS
Total accessions
n.a.
12.50
8.88
10.81
6.38
5.95
Total separations
n.a.
3.28
4.75
6.13
6.10
5.58
Quite
n.a.
2.70
3.88
4.85
4.29
3.65
Layoffs
1.a.
0.28
0.04
0.10
0.46
0.62
SHIPBUILDING
Total accessions
13.00
15.53
16.44
16.56
17.38
15.70
Total separations
5.40
5.63
7.25
9.22
9.41
8.36
Quits
1.14
2.65
4.29
5.20
5.71
4.67
Layoffs
3.71
2.05
1.29
243
1.37
1.22
MACHINE TOOLS
Total accessions
3.05
5.17
7.48
7.05
7.69
6.53
Total separations
2.09
2.79
4.84
4.56
4.35
4.73
Quite
1.28
2.02
3.50
3.17
2.86
3.02
Layoffs
0.21
0.12
0.07
0.12
0.09
0.10
Graph appears on opposite page.
n.a. Not available
a Includes aircraft; explosives; firearms; shipbuilding; machine tools; brase, bronze,
and copper products; engines and turbines; electrical machinery; blast furnaces, steel
works, and rolling mills; aluminum; and foundries and machine shops. Data for July,
1940 are for seven industries excluding engines and turbines, aluminum, explosives, and
firearms.
22 CONFIDENTIAL
WAR PROGRESS
FOOTNOTES
WAR PROGRESS SERIES
n.a. Not available
P Preliminary
r Revised.
a Total war program includes all funds and authorizations made available for
war purposes by the United States Government plus foreign orders placed in
this country since November 1939. The major portion of the existing pro-
gram has been approved since June 11, 1940, but some authorizations (par-
ticularly portions of the naval expansion program, the merchant shipbuild-
ing program, and the stockpile program) were made available even earlier.
All funds are shown during the fiscal year in which they are available for
obligation.
b Value delivered and / or in place includes (1) value delivered and/or in
place for ships and value of production for other munitions, (2) value in
place for war construction, and (3) checks issued by finance officers for
non-wunitions items.
c Checks paid include (1) all checks paid out of the Treasury General Fund;
(2) checks issued by the Reconstruction Finance Corporation and subsidiary
Government corporations;(3) checks issued by foreign purchasing commissions.
a United States financed program includes the war activities of all United
States Government agencies (including Lend-Lease) plus the war activities
of government owned corporations, but does not include foreign orders.
e Report on checks paid by the Treasury for the account of the Maritime Com-
mission makes allowance for receipts credited to the Construction Loan Fund.
f Program and obligations for pay for civilians and for the Navy include
only that specifically mentioned in appropriation bills, while the cash
disbursement figures include, in addition, executive war pay which cannot
be separately distinguished in the appropriation bills.
B Ordnance and naval ships figures revised back to January 1942. In compar-
ing these with prior figures. ordnance and naval ships should be combined.
h For data now available for August see War Progress Notes on Page 8.
the Expirations
WAR PROGRESS
5
Confidential
(British Secret)
% $
go - is
- - to -
Russia Now Biggest "Lend-Leaser"
Checking Up on Workers' Morale
British Plant Concentration
Number 105
September 18, 1942
CONFIDENTIAL
NUMBER 105
WAR PROGRESS
SEPTEMBER 18, 1942
Lend-Lease Shipments Keep Rising
And go to more corners of the earth. Russia
parts of the British Empire which are
passes Great Britain for first time in
under attack or directly menaced by the
dollar volume, gets bulk of munitions.
Axis are being increasingly reinforced.
Middle East is bolstered.
Thus, Egypt now ranks next to the United
Kingdom as a lend-lease recipient, fol-
LEND-LEASE EXPORTS are increasing at a
lowed by India, Australia and New Zea-
slightly accelerating rate. Last month
land, Canada (which receives lend-lease
they reached a peak of $422,700,000-7%
goods to replace munitions she has man-
above July, compared with a 6% July gain
ufactured for the United Kingdom), and
over June. About half the shipments in
Iran and Iraq. The following table in-
July and August consisted of munitions;
dicates the rankings--with Russia and
a third industrial and other commodities;
Britain far in the lead:
the remainder agricultural products.
August
July
In August, Russia became our biggest
(in millions)
lend-leaser. About $148,500,000 of goods
U.S.S.R.
$148.5 $103.4
went to the U.S.S.R., compared with
United Kingdom
146.3 154.6
$146,300,000 to the United Kingdom. In
Egypt
35.8
30.5
the previous month, Russian shipments
India
30.7
22.9
totaled $103,400,000; the United King-
Australia & New Zealand
23.9
25.6
dom's, $154,600,000. However, other
Canada
12.1
12.5
LEND-LEASE EXPORT SUMMARY
500
500
Total Military Exports
Total Exports
All Others
400
Other British Empire
400
Russia
United Kingdom
MILLIONS OF DOLLARS
300
300
200
200
MILLIONS OF DOLLARS
100
100
o
0
Jan.
Feb
Mar
Apr
May
June
July
Aug.
Jon.
Feb.
Mor
Apr.
May
June
July
Aug.
1942
1942
WAR PROGRESS
LEND-LEASE EXPORTS HAVE RISEN SHARPLY SINCE THE THE UNITED KINGDOM REACHED A PEAK IN JUNE, HAVE
ABRUPT DECLINE IN MAY. MILITARY EXPORTS ARE NOW SINCE DECREASED, WHILE EXPORTS TO OTHER PARTS OF
PREPONDERANT. IN JANUARY, THEY WERE ONLY 35% OF THE BRITISH EMPIRE HAVE NEARLY DOUBLED. EXPORTS
THE TOTAL: IN AUGUST, THEY WERE 53%. SHIPMENTS TO TO RUSSIA ARE STILL SLIGHTLY UNDER THE APRIL HIGH.
2
CONFIDENTIAL
WAR PROGRESS
August
July
totaled $6,900,000 or nearly twice those
(in millions)
in the first half year.
Iran & Iraq
10.9
7.9
Russia still gets the bulk of lend-
Union of S. Africa
3.9
3.2
lease munitions, the United Kingdom most
Gold Coast
3.0
9.5
of the agricultural products and indus-
British E. Africa
0.3
5.9
trial commodities (WP-Aug21'42,p1).
Brazil
2.5
4.4
The major items in Russia-bound cargoes
Turkey
2.3
1.0
are bombers, fighter planes, tanks,
China
2.1
8.3
trucks, automatic weapons, and ammuni-
tion. In August, the U.S.S.R. obtained
Mounting aid goes to the South Pa-
43% of all lend-lease ordnance and stores,
cific area, but only a trickle reaches
58% of the aircraft and parts, and 41%
unoccupied China, now virtually a land-
of the tanks and other vehicles. (See
locked nation. Meanwhile, new countries
chart, page 3.)
are becoming prominent the lend-lease
picture. The Gold Coast of Africa, on
MOST OF FOOD TO BRITAIN
the aerial route from the United States
We also ship Russia quantities of av-
and South America to the Middle East,
iation gasoline and lubricants, fabri-
received $12,500,000 oflend-lease goods
cated metals, chemicals, tools, food, and
during July and August. Monthly ship-
clothing. In August, for instance, Rus-
ments to British East Africa, along
sia got 1,400,000 pounds of bacon, 5,-
the Red Sea link between the Mediter-
300,000 pounds of pork, 7,500,000 pounds
ranean and the Indian Ocean, rose from
of canned meat, 18,400,000 pounds of
$2,600,000 in the first six months of
vegetable oils, 500,000 pounds of refined
1942 to over $6,000,000 in July and
sugar, 300,000 yards of cotton duck,
August. Brazil is also getting increas-
750,000 pounds of sole leather, and 186,-
ing lend-lease assistance. Exports in
000 pounds of cigarette paper. (The
July and August--mostly ordnance, ammu-
Russian usually rolls his own.)
nition, aircraft, tanks, and metals--
The United Kingdom is getting about
80% of lend-lease agricultural products,
45% of industrial and other commodities,
IN THIS ISSUE:
25% of ordnance and ammunition, and
lesser proportions of aircraft, tanks,
LEND-LEASE SHIPMENTS KEEP RISING
1
and other vehicles. Agricultural ship-
ments alone averaged about $57,000,000
"PRODUCTION WILL WIN THE WAR"
4
in July and August. The bulk consisted
of meat (fresh, cured, and canned), milk
CONCENTRAT 10N-FOR SPACE AND LABOR
6
products, cheese, dried egg products,
canned fish, canned and dried fruits
BEFORE CONCENTRAT ION-AND AFTER
8
and vegetables, and lard.
WAR PROGRESS NOTES
9
ARMS FOR EGYPT
Other parts of the British Empire
FINANCIAL DATA
11
receive from the United States chiefly
war materials, foodstuffs, and metals
ECONOMIC DATA
19
for munitions. The leading items in
Egyptian lend-lease for the last two
10 CONFIDENTIAL
WAR PROGRESS
THE WAR PROGRAM- Financial Summary
300
300
250
250
200
200
BILLION DOLLARS
150
150
PROGRAM
(Appropriations and Net Authorizations)
BILLION DOLLARS
100
100
50
50
CONTRACT AND
OTHER COMMITMENTS
VALUE OF PRODUCTION
o
o
J A S 0 N D J F M A M J J ASONDJFMAMJJASON D
1940
1941
1942
WAR PROGRESS
SEPTEMBER 18, 1942
CONFIDENTIAL
3
WHO GETS WHAT IN LEND-LEASE
Military Goods
Nonmilitary Goods
100
160
Ordnance and Stores
Agricultural Commodities
80
All Others
140
Other British Empire
Russio
60
United Kingdom
120
40
100
20
RRI
80
###
o
60
Jon
Feb
Mor
Apr
May
June
PDO
July
Aug
1942
100
40
Aircraft and Aircraft Material
88
80
20
MILLIONS OF DOLLARS
60
o
Jan
Feb
Mar
Apr
May
June
July
Aug
1942
40
160
Industrial and Other Goods
MILLIONS OF DOLLARS
20
140
on
o
120
Jan
Feb
Mor
Apr
May
June
July
Aug
1942
100
100
Tanks and Other Vehicles
80
80
60
60
40
40
20
20
88
o
0
Jon
Feb
Mor
Apr
May
June
July
Aug
Jon
Feb
Mor
Apr
May
June
July
Aug
1942
1942
WAR PROGRESS
THESE CHARTS INDICATE INCREASED LEND-LEASE EMPHASIS
AND OTHER GOODS (INDIRECT WAR) ALSO CLIMBED TO NEW
ON MUNITIONS IN RECENT MONTHS. TANK AND AIRCRAFT
HIGHS. HOWEVER, CONTRARY TO THE OVERALL TREND,
SHIPMENTS REACHED NEW HIGHS IN AUGUST; AND THOUGH
EXPORTS OF AGRICULTURAL COMMODITIES-805 OF WHICH
ORDMANCE ON THE WHOLE WAS DOWN SLIGHTLY, SUCH CAR-
ARE CONSIGNED TO THE UNITED KINGDOM-DROPPED FOR
GOES DESTIMED FOR RUSSIA WERE UP 70%. INDUSTRIAL
THE THIRD MONTH IN A ROW.
4
CONFIDENTIAL
WAR PROGRESS
months have been tanks, trucks, aircraft,
plate, cloth, and drugs are added; food-
ordnance and ammunition, gasoline and
stuffs are absent. To India go consid-
lubricating oil, shipping containers,
erable quantities of food and metals,
canned and dried foods (easily trans-
in addition to munitions, while lend-
ported with the armies), and iron and
lease exports to Iran and Iraq have been
steel manufactures.
virtually confined to the requirements
The composition of exports to Aus-
of the armies poised to defend those
tralia is similar to Egypt's, except
countries againsta German break-through
that such things as metal ores, tin
on the Nile or in the Caucasus.
"Production Will Win the War
Survey indicates workers believe munitions
with their present rate of pay; 20% more
output alone will beat Axis. Men like
were satisfied, but with reservations.)
first - hand reports on how their products
Only 13% of the workers expressed
function in combat.
outright approval of wage freezing; an
additional 49% approved with qualifica-
SURVEYS CONDUCTED by the Office of War
tions. The two chief qualifications
Information suggest that many war work-
were (1) that wage differentials be
ers have become obsessed withthe notion
ironed out before freezing and (2) that
that production is all-important; they
wages be adjusted to the cost of living
seem to think that mere volume of Amer-
(chart opposite).
ican munitions output-of and by itself
--will inevitably overwhelm the Axis.
OPPOSE JOB FREEZING
The typical war worker isn't worried
Generally, workers opposed job freez-
about keeping his job during the war,
ing even though one-third feltit would
but a substantial number--30%--expect
speed production. But 40% objected to
a. serious depression and unemployment
it as an invasion of individual rights.
after the war. Only about 20% antici-
And the type of job-freezing plan fre-
pate postwar prosperity and continued em-
quently governed a worker's attitude.
ployment, and most of these are in in-
A flexible plan, in which the worker
dustries which have been on the up-
could shift his job if approved by an
grade-such as aircraft and chemicals.
appeals board, won favor. A rigid plan
was vigorously opposed. Workers in
TWO MAIN CLASSES
high-paying jobs were not so opposed to
The survey divided workers into two
job freezing as those in low-paying ones.
main classes: those who are satisfied
with their jobs; those who aren't. To
WHY PRODUCTION LAGS
satisfied workers, wages were less im-
Approximately one-third of the work-
portant than working conditions in de-
ers voiced no criticism of the rate of
termining their attitudes toward the
war production in their plants. Among
war and management (chart, page 5).
those who felt that production was be-
On the other hand, when workers were
ing impeded, the following causes were
dissatisfied, their chief grievance was
most frequently cited: shortage of
usually wages. (About half of the work-
materials, lack of skilled workers, va-
ers questioned said they were satisfied
rious management deficiencies (such as
SEPTEMBER 18, 1942
CONFIDENTIAL 5
THE WAR WORKER'S POINT OF VIEW
The Office of War Information has taken a sample survey to discover how workers feel
about their war jobs, their bosses, their working hours, wages, etc. The object was to
evaluate that hard-to-measure commodity-morale. These are some of their findings:
1. Ask a worker what's most important to him about his job and he'll say:
A. If he's o satisfied worker;
B. If he's dissatisfied.
50
50
25
25
0
o
Managements
Working
Wages
Woges
Management's
Working
Treatment of
Conditions
Treatment of
Conditions
Workers
Workers
2. Workers disapprove of both job freezing and wage freezing with about equal vehemence;
Job Freezing
Woge Freezing
Approval
Undecided
13%
4%
Qualified
Approval
33%
Approval
% OF WORKERS
49%
38%
Disopprovel
40%
% OF WORKERS
Disopproval
23%
Qualified
Approval
3. When workers feel that war production is going well, they chiefly credit the government;
when they feel it's slow, they largely blame management. Here's how workers distribute their
(A) proise or (B) blame:
A. If they think production is good;
B. If they think production is slow;
40
40
30
30
20
20
10
10
0
0
Govern-
General
Monage-
Workers
Combinations
Manage-
General
Govern-
Workers
Combinations
ment
Public Morole
ment
of These and
ment
Public Morole ment
of These and
Others
Others
4. And when OWI investigators tried to measure morale, their findings showed this:
The higher the wages, the higher the morole.
High wages
High wages
$66 and up
High Morale
Medium Morole
Low Morole
$66 and up
(Weekly)
(Weekly)
Medium wages
Medium wages
$46 $65
$46 $65
Low woges
Low wages
$16- $45
$16 $45
0
20
40
60
80
100
% OF WORKERS
WAR PROGRESS
6
CONFIDENTIAL
WAR PROGRESS
poor organization of work, distrust of
products they turn out. But only one
management, poor use of skills, etc.).
out of every five interviewed had been
War workers get the biggest lift from
exposed to this particular type of pro-
reports on combat performance of the
duction incentive.
Concentration--For Space and Labor
Need to (1) conserve man-hours, (2) obtain
Five procedures have been followed:
storage room, and (3) speed conver
(1) the agency method--nucleus firms
sion prompts industry and government to
manufacture and keep alive trade lines
adopt nucleus-plant production.
of closed firms as well as their own;
(2) pooling--all firms share profits
DESPITE NEWSPAPER HEADLINES heralding
with closed firms; (3) transfer of quo-
the concentration of our stove, type-
tas-nucleus firms pay for right to pro-
writer, and bicycle industries, concen-
duce wartime quotas of closed firms;
tration in the United States is still
(4) compensation by royalty--nucleus
in the planning stage.
firms pay closed firms a royalty on prod-
It's true that War Production Board
ucts made; and (5) mergers, which lead
orders have forced certain stove, type-
to permanent concentration.
writer, and bicycle companies out of
normal production; it's true, also, that
UNLIKE LAST WAR
what production was left went to the
difference between British concen-
remaining companies. But, by defini-
tration in this and the last war is that
tion, that is not concentration; for
in 1914-18 it was uncontrolled and
the firms put out of production retained
led to postwar monopolies. Now, however,
no participating interest in the indus-
return to the prewar status is envi-
try.
sioned. The government is trying, as
much as circumstances permit, to protect
FIVE WAYS TO CONCENTRATE
the "little man" but talways achiev-
Great Britain's formula indicates
ing this objective. And when it comes
what concentration isand how.it devel-
to starting up anew after the war, many
oped. After the war started, nonwar
businessmen may prefer to sell rights
industries had a hard time getting raw
to functioning firms, as some are al-
materials; they had to operate at part
ready doing. It might be a sale of post-
time, and machines and workers were idle
war nuisance value, so to speak.
many hours per week. Concentration was
English firms closed out of accus-
designed to save labor, create addi-
tomed lines are not all necessarily
tional storage space--especially for
doomed to inactivity. Premises may be
foodstuffs--and to improve overall in-
retained by the government for vitally
dustrial efficiency.
needed storage, or the firms may convert
Industries were at first permitted
to war work. Income received from new
to work out their own concentration--
sources, however, reduces claims on nu-
selecting certain firms to stay in busi-
cleus firms.
ness and certain other firms to "retire"
When war began, the British nonfood
for the duration. Later, the govern-
industries subsequently concentrated
ment felt it necessary to impose plans.
had about 1,000,000 registered workers;
SEPTEMBER 18, 1942
CONFIDENTIAL
7
THE THEORY OF CONCENTRATION
Suppose you have eight plants in a durable consumer-goods industry; some produce war
goods, some don't; but all are operating only part time. And
Two, in a tight labor area,
Four, in a fairly balanced labor area, are on this
Two, in a surplus labor area,
are on this work schedule:
work schedule:
are on this work schedule:
Idle
Idle
Idle
Idle
Civilian
Civilion
Civilion
Civilian.
Workers
in area
70,000
Workers
160,000
Workers
110,000
in areo
in area
Civilion
Civilign
Idle
Ide
Civilion
Idie
IFIN
Civilion:
And now you concentrate those plants and this is what you get:
Tight labor area
Balanced labor area
Surplus labor area
Idle and
Idle and
Conv.
Idle
Convertible
Civilion
Civilian
Workers
in area
Workers
20,000
Workers
in area
in area
160,000
160,000
Idle and
(Idle and
Conv.
Conv.
Full time Civilian
Closed
Civilian
Civilian
Production
WAR PROGRESS
CONCENTRATION ADHERES TO NORIGID FORMULA. BUT SOME
ITS EXPANSION WILL BE LIMITED. BOTH PLANTS IN THE
GENERAL PURPOSES ARE CLEAR: TO FREE WORKERS IN
SURPLUS LABOR AREA ARE WORKING FULL TIME. IN THE
TIGHT LABOR AREAS FOR WAR WORK; TO REDUCE DEMANDS
IN-BETWEEN AREA ONE PLANT HAS BEEN FREED FOR COM-
FOR POWER AND TRANSPORTATION IN CERTAIN REGIONS;
PLETE CONVERSION TO WAR WORK. OBSERVE THE HYPO-
TO SPEED CONVERSION OF PLANTS, TO WAR OUTPUT.
THETICAL SHIFT IN EMPLOYMENT. IN PLANTS IN THE
IN THE ABOVE EXAMPLE, CONCENTRATION HAS ELIMI-
TIGHT-SUPPLY AREA IT DECLINES FROM 70,000 TO 20,000
MATED CIVILIAN PRODUCTION IN THE TIGHT LABOR AREA
WORKERS; IN THE LOOSE AREA IT RISES FROM 110,000
AND THE NEED FOR NEW HOUSING, UTILITIES, ETC. HAS
TO 160,000; IT IS UNCHANGED IN THE BALANCED AREA.
BEEN REDUCED. ONE PLANT IN THAT AREA HAS BEEN
IN THE CHART, THE AMOUNT OF CIVILIAN OUTPUT IS THE
CLOSED ENTIRELY, THE OTHER CONTINUES TO PRODUCE
SAME AFTER CONCENTRATION AS BEFORE. BUT IT IS FEA-
WAR GOODS, BUT BECAUSE LABOR IS SCARCE, PRESUMABLY
SIBLE TO CUT CIVILIAN OUT PUT WHILE CONCENTRATING IT.
8
CONFIDENTIAL
WAR PROGRESS
early rawmaterial shortages and limita-
tion orders planlessly cut this working
Before Concentration--and After
force 30%-to about 700,000. But 300,-
ALREADY, 40 manufacturing industries
000 of these were already operating on
have been concentrated in Britain--
war work; of the 400,000 engaged in ci-
31 nonfood, 9 food; 9 additional in-
vilian operations, about 190,000 were
dustries and retail distribution are
released by concentration (with about
awaiting early concentration.
30,000 more scheduled to go). The ex-
The following table indicates how
perience of the food industry was sim-
concentration has varied from indus-
ilar. Candy companies, for example,
try to industry. Bedding, for exam-
had about 55,500 workers before the
ple, started with 50 establishments,
war. Shortages and limitation orders
now has 35--a plant curtailment of
reduced employment to about 30,000; con-
30%. Umbrella plants were cut 63%.
centration cut this down to 20,000.
Open
Before
After
EFFICIENCY NOT SOLE STANDARD
Concen-
Concen-
Industry
tration
tration
Closed
Efficiency has not been the sole
Bedding
50
35
15
standard for staying in business; the
Bicycles
7
3
4
Boots, shoes
653
408"
245
most efficient plants frequently have
Braces
27
18
9
been drawn into war production, and
Carpets
61
17
44
Corsets
57
39
18
smaller and less up-to-date firms have
Cotton, rayon
.1,988
1,364
624
Cutlery, razor
remained to carry on. In concentrated
blades
171
98
73
Fellmongery
industries one-third of the plants have
(sheep pelts)
103
53
50
Fountain pens
13
11
2
been closed; but the remaining two-
Glazed tiles
22
11
11
thirds have less than 50% of total ca-
Gloves
141
98
43
Hösiery
956
441
515
pacity.
Iron and steel
49
29
20
Jewelry
22
16
6
About half the British concentration
Jute
104
91
13
Leather goods
197
100
97
has been at the expense of cotton tex-
Linoleum
14
8
6
Musical instruments
7
7
-
tiles. This industry released about
Paper boxes
113
54
59
Paper mills
200
188
12
100,000 workers; it closed 624 estab-
Photography
24
22
2
lishments, leaving 1,364 in operation,
Pianos
23
10
13
Pottery
201
90
111
partly on government contracts; it freed
Silk
104
59
45
Sports goods
29
20
9
26,000,000 square feet of floor space
Tollet preparations
79
39
40
Toys
35
18
17
out of a total of 52,000,000. Hosiery
Umbrellas
44
16
28
Woodworking
made the next largest contribution; it
347
344
3
Wool
782
713
69
closed 515 out of 956 plants, releas-
6,623
4.420
2,203
ing about 30,000 workers and 5,250,000
76 partly closed
square feet of floor space.
25 partly closed
4 partly closed
piano production just ceased.
SPEEDED BY BOMBINGS
Scheduled for early concentration
Bombings of London speeded up British
are: bacon curing, soap manufactur-
concentration. Businessmen were con-
ing, edible fat melting, and egg
vinced the country was imperied, that
packing; also brushes, casein but-
drastic measures were needed. However,
tons, printing ink, patent medicines,
coincidentally, resistance developed,
clothing and retail distribution.
especially on special industry problems.
To cope with this, each industry con-
SEPTEMBER 18, 1942
CONFIDENTIAL
9
centration plan incorporated special
(2) concentration programs should be
provisions to meet special problems.
accompanied by standardization and sim-
The farm machinery and equipment in-
plification; (3) firms remaining in
dustry has been named as the first can-
business should compensate those going
didate for concentration in the United
out, as in Great Britain.
States. Others under tentative consid-
eration are warm air furnaces, boilers,
War Progress Notes
cutlery, dairy machinery, enamel kitch-
en utensils, flatware and hollowware,
HAIRLINING THE TANK
pulp and paper, milk can production,
THE ARMY is now using cattle hair felt
railroad cars, sugar refining, cork
instead of foam rubber for interior pad-
products and unit heaters.
ding in tanks and for seat cushions of
jeeps. Approximate savings of crude
U. S. POLICY UNLIKE BRITISH
rubber (foam is about 85% crude) per
In its embryonic stage, American
vehicle are as follows:
concentration leansmore heavily toward
Combat Vehicle
Pounds
the capital goods andmetal-working in-
Aero tank
14
dustries than does British concentra-
Assault tank
19
tion. British capital goods industries
Light tank
14
had largely been converted to war work
Medium tank
19
when concentration started. Consumers'
1-ton jeep
12
goods almost wholly dominate the Eng-
The switch is expected to save some
lish concentration picture. The U. S.
2,997,000 pounds--or 133 long tons-of
has hardly yet approached these indus-
crude rubber next year.
tries with concentration in mind. Thus
concentration in this country is, in 8.
GRAVEYARD RUBBER
sense, aimed more directly at conversion.
DETERIORATION SETS IN early on idle rub-
ber, so the OPA and the WPB are making
GUIDING PRINCIPLES
a sample checkup of auto graveyards in
The prescription for American con-
several large cities to determine the
centration calls for (1) the designation
number of tires available either for
of smaller firms as nuclei to produce
use on cars or as scrap.
for themselves and for larger firms on
a cooperative, profit-sharing basis and
PLASTIC PENNIES?
(2) the selection of nucleus firms as
GLASS AND PLASTICS are being considered
much as possible in "loose" labor areas
for the content of the penny, which now
and in regions where warehouse and power
consists of 95% copper and 5% tin and
facilities are not strained. The elim-
zinc. The mint hasn't received copper
ination of railroad crosshauling must
for pennies since May; last year it used
also be taken into consideration in
4,000 tons to produce more than 1,400,-
selecting nucleus firms.
000,000 pennies.
Guiding principles for U. S. concen-
Machinery to make a glass cent would
tration are as follows: (1) concentra-
require about six months to build, but
tion programs must not foster postwar
existing plastic button-making equip-
monopolies--plans that facilitate the
ment, which might be suitable for turn-
re-entry of the largest possible number
ing out a "synthetic" cent, could prob-
of firms after the war are preferred;
ably be made available much sooner.
10 CONFIDENTIAL
WAR PROGRESS
Mint metallurgists have been trying to but had no interest or experience in
find substitutes for critical metals in
factory work.
minor coins since February; the new sil-
About 40% of the women queried would
ver-copper-manganese 5-cent piece, for
have to provide for care of children
example, eliminates all the nickel and
outside the home. Most of these-42,000
25% of the copper formerly used.
--said they would not be available for
war work.
SAME AS USUAL
THE COST OF LIVING INDEX rose about
200,000 GUINEA PIGS
0.5% from July to August. Nonfood com-
ADD GUINEA PIGS to the list of wartime
ponents of the index remained stable,
shortages. Normal requirements for
food costs continued to rise.
testing serums, antitoxins and viruses
are roughly 200,000 guinea pigs a year;
INEXPERIENCED WOMEN
but demand for biologicals, chiefly from
LACK OF EXPERIENCE in factory work is
the armed forces, has jumped require-
retarding the employment of women in war
ments some 50% over last year's levels
industries. Of 158,000 women questioned
--and supply is trailing. There are
in a Detroit survey, one out of three
only three or four large producers of
said they would and could take factory
guinea pigs in the United States but
war jobs, but less than half of these
schoolboy breeders are an auxilliary
had previous experience. Some 14,000
source of supply. Guinea pigs bring
others could qualify for clerical jobs
$3.50 today-only $1.25 a year ago.
THE WAR PROGRAM- Financial Summary
300
300
250
250
200
200
BILLION DOLLARS
150
150
PROGRAM
BILLION DOLLARS
(Appropriations and Net Authorizations)
100
100
50
50
CONTRACT AND
OTHER COMMITMENTS
VALUE OF PRODUCTION
0
0
J A S 0 N D J F M A M J J A S 0 N D J F M A M J J A S 0 N D
1940
1941
1942
WAR PROGRESS
SEPTEMBER 18, 1942
CONFIDENTIAL
II
WAR PROGRESS SERIES
TOTAL WAR PROGRAM IN THE UNITED STATES
Cumulative 6/11/40 to
Monthly
End let
End of
End of
full year
December
June
May
June
July h
6/30/41
12/31/41
6/30/42
1942
1942
1942
TOTAL WAR PROGRAM IN THE U.S.ᵃ
(Million dollars)
Program-Pending
P
9,525
Program-Enacted
40,861
80,604
P 174,384
o
P 5,615
P 44,471
Uncommitted balance
9,274
23,979
P 40,290
-
-
-
Contracts and other
commitments
31,587
56,625
P 134,094
F 9,731
P 12,098
n.a.
Value delivered and/or in
place
b
8,547
18,573
P 39,222
P 4,060
P 4,602
n.a.
Checks paid c.
8,536
17,965
P 37,562
3,925
P 4,156
P
4,824
MUNITIONS PRODUCTION.& WAR CONSTRUCTION, TOTAL
Program
37,027
69,305
P 156,214
o
p 5,358
P 32,543
Uncommitted Balance
7,597
18,281
P 33,761
-
-
-
Contracts and other
commitments
29,430
51,024
P 122,453
P 9,107
P 9,999
n.a.
Value delivered and/or
in place
b
6,795
14,750
P 32,184
P 3,465
P 3,882
n.a.
Value not delivered nor
in place
22,635
36,274
P 90,269
-
-
-
PRODUCTION OF MUNITIONS
Program
28,566
53.738
P 124,097
-25
P 4,756
P 29,952
Uncommitted balance
4,901
13,929
P 29,106
-
-
-
Contracts and other
commitments
23,665
39,809
P 94,991
p 6,668
P 6,942
n.a.
Value delivered and/or
in place
9
4,290
8,940
20,449
2,248
2,638
P 2,955
Value not delivered nor
in place
19,375
30,869
P 74,542
-
-
-
WAR CONSTRUCTION
Program
8,461
15,567
P 32,117
25
P
602
P
2,591
Uncommitted balance
2,696
4,352
P 4,655
-
-
-
Contracts and other
commitments
5,765
11,215
P 27,462
P 2,439
P 3,057
n.a.
Value delivered and/or
in place
b
2,505
5,810
P 11,735
P 1,217
P 1,244
n.a
Value not delivered nor
in place
3,260
5,405
P 15,727
-
-
-
NON-MUNITIONS WAR ITEMS, TOTAL
Program
3,834
11,299
P 18,170
o
P
257
P 11,928
Uncommitted balance
1,677
5,698
P
6,529
-
-
-
Contracts and other
commitments
2,157
5,601
P 11,641
P
624
P 2,099
n.a.
Checks issued
1,752
3,823
P 7,038
P
595
P
720
n.a.
Graph appears on opposite page.
For footnotes see Page 22.
Table continued on Page 13.
12 CONFIDENTIAL
3481
WAR PROGRESS
MUNITIONS PRODUCTION- Financial Summary
150
150
125
125
100
100
BILLION DOLLARS
PROGRAM
(Appropriotions and Net Authorizations)
75
75
BILLION DOLLARS
50
50
CONTRACT AND
25
OTHER COMMITMENTS
25
o
VALUE OF PRODUCTION
o
J A 1940 S 0 N D J F M A M J J A S o N D J F M A M J J A S o . N Γ
1941
1942
WAR PROGRESS
AUGUST 14,1942
CONFIDENTIAL
II
WAR PROGRESS SERIES
TOTAL WAR PROGRAM IN THE UNITED STATES
Oumulative 6/11/40 to
Monthly
End lst
End of
End of
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
TOTAL WAR PROGRAM IN THE U.S.ᵃ
(Million
dollars)
Program-Pending
P 9,525
Program-Enacted
40,861
80,604
P 174,384
0
P 5,615
P 44,252
Uncommitted balance
9,274
23,979
P 40,290
-
-
-
Contracts and other
commitments
31,587
56,625
p 134,094
P 9,731
P 12,098
n.a.
Value delivered and/or in
place b
8,547
18,573
P 39,222
P 4,060
P 4,602
n.a.
Checks paid c
8,536
17,965
P 37,562
3,925
P 4,156
P 4,824
MUNITIONS PRODUCTION.& WAR CONSTRUCTION,
TOTAL
Program
37,027
69,305
P 156,214
o
P 5,358
P 32,543
Uncommitted Balance
7,597
18,281
P 33,761
-
-
-
Contracts and other
commitments
29,430
51,024
p 122,453
p 9,107
p 9,999
n.a.
Value delivered and/or
in place
b
6,795
14,750
P 32,184
P 3.465
P 3,882
n.a.
Value not delivered nor
in place
22,635
36,274
P 90,269
-
-
-
PRODUCTION OF MUNITIONS
Program
28,566
53.738
P 124,097
-25
P 4,756
P 29,952
Uncommitted balance
4,901
13,929
p 29,106
-
-
-
Contracts and other
commitments
23,665
39,809
P 94,991
P 6,668
P 6,942
n.a.
Value delivered and/or
in place
b
4,290
8,940
20,449
2,248
2,638
P 3,039
Value not delivered nor
in place
19,375
30,869
P 74,542
-
-
-
WAR CONSTRUCTION
Program
8,461
15,567
P 32,117
25
P
602
P
2,591
Uncommitted balance
2,696
4,352
P 4,655
-
-
-
Contracts and other
commitments
5.765
11,215
P 27,462
P 2,439
P 3,057
n.a.
Value delivered and/or
in place
b
2,505
5,810
P 11,735
P 1,217
P 1,244
n.a
Value not delivered nor
in place
3,260
5,405
P 15,727
-
-
-
NON-MUNITIONS WAR ITEMS, TOTAL
Program
3,834
11,299
P 18,170
0
P
257
P 11,709
Uncommitted balance
1,677
5,698
P 6,529
-
-
Contracts and other
commitments
2,157
5,601
P 11,641
P
624
P 2,099
n.a.
Checks issued
1,752
3,823
P 7,038
P
595
P
720
n.a.
Graph appears on opposite page.
For footnotes see Page 18.
Table continued on Page 13.
SEPTEMBER 18, 1942
CONFIDENTIAL
13
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
Ind lst
End of
Bad of
SUMMARY
full year
December
June
May
June
July
h
6/30/41
12/31/41
6/30/42
1942
1942
1942
Million dollars
BREAKDOWN OF MUNITIONS PRODUCTION
MUNITIONS PRODUCTION, TOTAL
Program
28,566
53.738
P124,097
-25
P 4,756
P
29,952
Uncommitted balance
4,901
13,929
P 29,106
-
-
-
Contracts and other
commitments
23,665
39,809
P 94,991
P 6,668
P 6,942
n.a.
Value delivered and/or
in place
b
4,290
8,940
20.449
2,248
2,638
P 2,955
Value not delivered nor
in place
19,375
30,869
P 74,542
-
-
-
AIRPLANES, PARTS & ACCESSORIES
Program
8,582
15,072
P 37.586
0
P
-215
P 9,737
Contracts and other
commitments
7.381
13,298
P 33,945
P
2,409
P 2,838
n.a.
Value delivered
1,010
2,265
4,752
471
510
P
549
ORDNANCE
Program
7,778
17,488
P 36,400
0
P
285
P 9,548
Contracts and other
commitments
5,418
10,354
P 26,873
P 2,278
P 2,360
n.a.
Value delivered
700
1,685
4,998
6964
731
P
904
NAVAL SHIPS
Program
6,796
9,605
P 18,460
0
P
2,922
P
0
Contracts and other
commitments
6,442
7,930
P 12,276
275
P
276
n.a.
Value delivered and/or
in place
810
1,665
3,383
3994
404
P
451
MERCHANT SHIPS
Program
1,442
3,288
P 8,653
-25
P 1,054
P
0
Contracts and other
commitments
1,484
2,381
P 6,880
P
607
P
618
n.a.
Value in place
240
510
1,188
131
176
187
OTHER MUNITIONS AND SUPPLIES
Program
3,968
8,285
P 22,998
o
P
710
P 10,667
Contracts and other
commitments
2,940
5,846
P 15,017
P 1,099
P
850
n.a.
Value delivered
1,530
2,815
6,128
551
817
P
864
Graph appears on opposite page.
For footnotes ⑉ Page 22.
Table continued on Page 15.
14 CONFIDENTIAL
WAR PROGRESS
WAR CONSTRUCTION- Financial Summary
50
50
40
40
30
BILLION DOLLARS
30
PROGRAM
(Appropriations and Net Authorizations)
BILLION DOLLARS
20
20
CONTRACT
AND OTHER
COMMITMENTS
10
10
VALUE OF PRODUCTION
0
0
J A S 0 d D J F M A M J J A S 0 N D J F M A M J J A S o N D
1940
1941
1942
WAR PROGRESS
SEPTEMBER 18, 1942
CONFIDENTIAL 15
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
May
June
June
July h
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million dollars)
BREAKDOWN OF WAR CONSTRUCTION
WAR CONSTRUCTION, TOTAL (LAND, BLDGS., EQUIP.)
Program
8,461
15,567
P 32,117
25
P
602
P 2,591
Uncommitted balance
2,696
4,352
P 4,655
-
-
-
Contracts and other
commitments
5,765
11,215
P 27,462
P 2,439
P 3,057
n.a.
Value in place
2,505
5,810
P 11,735
P 1,217
P 1,244
n.a.
Value not in place b
3,260
5.405
P 15,727
-
-
-
INDUSTRIAL FACILITIES (LAND, BLDGS., EQUIP.)
Program
5,120
8,112
P 17,610
25
P
707
P
172
Contracts and other
commitments
2,865
6,318
P 16,697
P 1,047
P 1,592
n.a.
Value in place
960
2,800
P 5,990
P
629
P
615
n.a.
INDUSTRIAL FACILITIES, BUILDINGS ONLY
Program
1,607
3,137
P 6,660
P
389
P
768
n.a.
Value in place
575
1,753
p. 2,990
P
287
P
307
P
344
POSTS, DEPOTS, STATIONS
Program
2,849
6,063
P 13,115
0
P
-105
P 2,419
Contracts and other
commitments
2,625
4,381
P 9,890
P 1,317
P 1,390
n.a.
Value in place
1,430
2,670
P 5,179
P
545
P 580
R
845
DEFENSE HOUSING
Program
492
1,392
P 1,392
0
P
0
P
o
Contracts and other
commitments
275
516
P
875
P
75
P
75
n.a.
Value in place
115
340
P 566
P
43
P
49
P
52
BREAKDOWN OF NON-MUNITIONS
NON-MUNITIONS, TOTAL
Program
3,834
11,299
P 18,170
0
P
257
P 11,928
Uncommitted balance
1,677
5,698
P 6,529
-
-
-
Commitments
2,157
5,601
P 11,641
P
624
P 2,099
n.a.
Checks issued by agencies b
1,752
3,823
P 7,038
P 595
P
720
n.a.
STOCKPILE
Program
983
2,399
P 2,713
0
P
0
P
0
Commitments
470
1,050
P 1,140
P
30
P
0
n.a.
Checks issued by agencies
192
488
P 1,011
P
102
P
100
n.a.
Graph appears on opposite page.
Table continued on following page.
For footnotes see Page 22.
16 CONFIDENTIAL
WAR PROGRESS
WAR PROGRESS SHRIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUNMARY
full year
December
June
May
June
July h
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million
dollars)
BREAKDOWN OF NON-MUNITIONS (Continued)
AGRICULTURAL EXPORTS (LEND-LEASE)
Program
625
1,522
P 2,138
0
P
0
P
0
Commitments
66
561
P 1,143
P
65
P
149
n.a.
Checks issued by agencies
1
211
P
629
87
P
90
n.a. B.
PAY, SUBSISTENCE & TRAVEL f
Army Military
Program
944
3,013
P 3.904
0
P
0
P 8,534
Commitments
934
2,030
P 3,849
P
281
P
285
n.a. a.
Checks issued
696
1,510
P 2,744
P
220
P
315
n.a.
Navy Military
Program
378
963
P 2,478
0
P
232
P
0
Commitments
334
610
P 1,143
P
110
P
104
n.a.
Checks issued
388
642
P 1,042
P
70
P
98
n.e. be
Civilian Payroll
Program
32
247
P
299
0
P
46
p
542
Commitments
32
140
P
255
P
15
P
20
n.a.
Checks issued
356
682
P 1,115
P
79
P
80
n.a.
MISCELLANEOUS NON-MUNITIONS
Program
872
3,155
P 6,638
0
P
-21
P 2,852
Commitments
321
1,210
P 4,111
P
123
P 1,541
n.a.
Checks issued by agencies
119
290
P
497
P
37
P
37
n.a.
P Preliminary
Table continued on following page.
For footnotes see Page 22.
SEPTEMBER 18, 1942
CONFIDENTIAL
17
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End lst
End of
End of
SUMMARY
full year
December
June
May
June
July h
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million dollars)
d
BREAKDOWN OF AGENCIES
UNITED STATES FINANCED WAR PROGRAM
Program
37,075
76,508
P 170,288
0
P 5,615
P 44,471
Uncommitted balance
9,274
23,979
P 40,290
-
-
-
Contracts and other
commitments
27,801
52,529
P 129,998
P 9,731
P 12,098
n.a.
Checks paid
6,431
15,251
P 34,510
3,880
P 4,123
P
4,794
U. S. ARMY
Program
13,134
31,981
P 84,468
0
P
o
P 42,090
Contracts and other
commitments
11,404
P 70,402
P
23,334
6,138
P 8,397
n.a.
Checks paid
3,636
7,889
15,649
1,497
1,662
n.a.
U. S. MAVY
Program
12,308
20,024
P 47,990
0
P 4,355
P
0
Contracts and other
commitments
11,182
16,327
P 32,325
P 1,971
P 2,361
n.a.
Checks paid
2,217
4,726
10,128
1,229
1,237
n.a.
LEND-LEASE
Program
7,000
12,985
P 18,410
0
P
0
P
0
Allocations
5,177
11,345
14,085
508
-281
382
Contracts and other
commitments
2,458
6,282
10,665
305
484
n.a.
Checks paid
21
910
4,099
626
665
n.a.
U. S. MARITIME COMMISSION
Program
784
2,734
P 7,654
o
P 1,070
P
0
Contracts and other
commitments
886
1,724
P 6,333
608
&
631
n.a.
Checks paid (Net)®
44
156
642
93
114
n.a.
RFC AND SUBSIDIARIES
Program
2,623
5,130
P 7,704
0
P
o
P
0
Contracts and other
commitments
1,151
3,569
P 7,916
P
509
P
0
n.a.
Checks issued by RFC
350
956
P 2,510
327
P
300
P
300
OTHER U. S. AGENCIES
Program
1,226
3,654
P 4,062
0
P
190
P
2,381
Contracts and other
commitments
720
1,293
P 2,357
P
200
P
225
n.a.
Checks paid
163
614
1,482
108
145
n.a.
FOREIGN ORDERS
Program (Orders)
3,786
4,096
P 4,096
o
P
0
P
0
Commitments
3,786
4,096
P 4,096
0
P
0
P
0
Checks issued by
Purchasing Missions
2,105
2,714
P 3,052
45
P
33
P
30
For footnotes see Page 22.
18 CONFIDENTIAL
WAR PROGRESS
WOMEN IN WAR WORK
40
40
Total Metal Products Industries *
Iron and Steel Products
Nonferrous Metal Products
(Except blost furnoces, rolling mills, etc.)
(Excludes smelting, refining)
30
30
20
20
10
10
o
0
Oct. 1939
May 1942
Aug. 1942
Oct. 1939 May 1942 Aug. 1942
Oct. 1939
May
1942
Aug. 1942
40
40
Electrical Machinery
Machinery
Motor Vehicles
(Except electrical and machine tools)
WOMEN WORKERS AS % OF TOTAL WORKERS
30
30
20
20
IO
10
WOMEN WORKERS AS % OF TOTAL WORKERS
O
o
Oct 1939
May
1942
Aug.
1942
Oct.
1939
Moy
1942
Aug.
1942
Oct.
1939
May
1942
Aug.
1942
40
40
Aircraft
Shipbuilding
Other Transportation Equipment
(Private)
30
30
20
20
10
10
o
o
Oct. 1939 May 1942 July 1942
Oct. 1939 May 1942 Aug. 1942
Oct. 1939 May 1942 Aug. 1942
Excludes primary smelting, refining, etc., machine tools, and government employment
WAR PROGRESS
FROM OCTOBER, 1939, TO AUGUST, 1942, THE NUMBER OF MAY AND AUGUST, HOWEVER, WOMEN WENT INTO THESE IN-
WOMEN EMPLOYED IN THE METAL PRODUCTS INDUSTRIES
DUSTRIES IN SUCH NUMBERS THAT THE PROPORT ION TO TO-
MORE THAN DOUBLED, AND THE PROPORTION TOTOTAL WORK-
TAL WORKERS ADVANCED TO A NEW HIGH-ALL LINES IN-
ERS ROSE FROM 11.4% TO 12.7%. FROM OCTOBER, 1939,
CREASING EXCEPT NONFERROUS METALS.
TO MAY, 1942, THERE WAS A SHARP RISE IN THE NUMBER
THE MOST SIGNIFICANT GAINS DURING THE 34-MONTH
OF WOMEN ENTERING THE METAL PRODUCTS INDUSTRIES;
PERIOD WERE IN IRON AND STEEL PRODUCTS, AIRCRAFT,
BUT MALE EMPLOYMENT INCREASED AT SUCH A RAPID PACE
AND OTHER TRANSPORTATION EQUIPMENT (CHIEFLY RAIL-
THAT THE PROPORT ON OF WOMEN FELL TO 10.45. BETWEEN
ROAD EQUIPMENT).
SEPTEMBER 18, 1942
CONFIDENTIAL
19
ECONOMIC ACTIVITY RELATED TO THE WAR
Note: Certain statistical series included in these tables are nonconfidential and are
published in such public documents as theFederal Reserve Bulletin, Survey of Current Busi-
ness, etc. Obviously inclusion here should not be construed as a limitation on their use.
1940
1941
1942
July
July
May
June
July
Aug.
BLS COST OF LIVING INDEX
All items
1935-39
100.3
105.3
116.0
116.4
116.9
117.4
Food
- 100
97.4
106.7
121.6
123.2
124.6
126.1
Rent
*104.6
106.1
109.9
108.5
107.7
107.6
AVERAGE HOURS WORKED PER WEEK
All manufacturing industries
37.3
40.3
42.6
42.6
42.4
Durable goods
37.9
41.5
45.0
45.1
44.7
Nondurable goods
36.7
39.0
39.7
39.6
39.6
11 selected war industries
combined
39.3
43.1
46.5
46.5
46.2
Machine tools'
47.5
50.9
54.1
53.8
52.8
Aircraft
42.0
44.8
47.5
47.2
46.7
Shipbuilding
39.3
44.8
48.8
48.4
48.5
AVERAGE HOURLY EARNINGS (Cents)
All manufacturing industries
66.7
74.4
83.1
84.0
85.0
Durable goods
72.7
82.6
92.3
93.3
94.6
Nondurable goods
61.5
65.7
72.2
72.7
73.2
11 selected war industries
combined
78.6
88.9
98.7
99.7
101.2
Machine tools
76.8
84.1
96.5
97.4
97.3
Aircraft
73.8
81.2
97.8
99.8
99.7
Shipbuilding
86.2
101.3
109.0
108.9
113.3
AVERAGE WEEKLY EARNINGS (Dollars)
All manufacturing industries
25.25
31.22
37.43
38.00
38.52
Durable goods
28.52
35.84
43.40
44.02
44.61
Nondurable goods
21.87
25.07
28.24
28.33
28.61
11 selected war industries
combined
30.76
38.66
45.92
46.43
47.12
Machine tools
36.45
42.80
52.24
52.47
51.58
Aircraft
30.48
36.57
45.81
46.92
46.27
Shipbuilding
34.03
45.54
53.67
52.74
55.19
EMPLOYMENT (Thousand workers)
Total civil nonagricultural
36,800
40,200
41,400
41,800
42,300
42,800
War industries
Private, 18 selected ind.
1,663
2,560
3,603
3,738
P 3,879
Private contractors,
public construction
13
412
834
940
988
Public
117
225
371
400
417
Total
1,793
3,197
4,808
5,078
P
5,284
Deep sea merchant vessels
51
50
47
47
45
Total WPA employment
1,655
1,055
786
698
525
UNEMPLOYMENT
Number of unemployed (thous)
9.300
5,700
2,600
2,800
2,800
2,200
Graphs appear on following page.
June, 1940.
P Preliminary data.
20 CONFIDENTIAL
WAR PROGRESS
TRACING PAY RISES
COST OF LIVING
130
130
Increase in average weekly earnings
and cost of living,Jan 1941-July 1942
120
120
50
50
Shipbuilding
Engines and Turbines
110
110
40
Duroble Manufactures
40
1938-42
Aircraft
100
100
Bross, Bronze a Copper Prod
Stort of Wor
GAIN JAN. 1941-JULY 1942
Automobiles
30
Elect Mochiry, Apporatus
30
Iron and Steel and Produ. -
GAIN JAN. 1941-JULY 1942
INDEX
INDEX
excluding mochinery
Nondurable Manufacf -
90
90
20
Women's Clothing
20
Stone,Gioy a Gloss Products
1913-18
COST OF LIVING
80
80
Wholesole Trode
Poper and Printing
10
Retail Trode
IO
Stort of Lost War
70
70
0
o
60
60
JAN.
JULY
1938
1939
1940
1941
1942
1941
1942
1913
1914
1915
1916
1917
1918
WAR PROGRESS
WAR PROGRESS
HOW WAR AFFECTS OUR SPENDING:
Expenditure patterns of persons in the $1500 to $2000 income class in 1941
and in the first quarter of 1942 #
35
35
30
30
25
% OF INCOME GOING TO EACH OBJECT
25
1941
1st Qtr. 1942
20
20
15
15
10
% OF INCOME GOING TO EACH OBJECT
10
5
5
O
o
Food
Shelter
Clothing
Home
Furnishings
Automobile
Other
Savings, Gifts
# No odjustment has been mode for seasonal influences, which
Expenditures & Personal Toxes
are especially important in the shelter cotegory.
WAR PROGRESS
THE WAR'S EFFECT UPON AMERICA'S CONSUMPTION PATTERN
FURNITURE, OUTPUT OF WHICH IS DOWN SHARPLY.
IS EVIDENT IN. THIS COMPARISON OF 1941 EXPENDITURES
CREASED FEDERAL FINANCING SHOWS UP IN INCREASED PRO-
WITH EXPENDITURES IN THE FIRST QUARTER OF 1942 BY
PORTIONS OF INCOME GOING TO SAVINGS AND TAXES. THE
PERSONS IN THE $1,500-$2,000 INCOME BRACKET. THE
RELATIVE RISE IN FOOD PRICES EXPLAINS THE PROPOR-
SHARPEST DECREASES ARE IN DURABLES-AUTOMOBILES AND
TIONATE INCREASE IN EXPENDITURES FOR FOOD.
SEPTEMBER 18, 1942
CONFIDENTIAL
21
ECONOMIC ACTIVITY RELATED TO THE WAR
1940
1941
1942
Week Ending
July
July
July
August
Sept. 5
Sept. 12
BLS PRICE INDEXES
Strategic materials
123.6
140.3
147.7
P
147.8
r
148.7
148.7
Critical materials
8/39
107.5
115.2
123.9
P 124.0
124.0
124.1
Basic commodities
m100
108.5
148.7
167.2
166.9
167.3
168.1
Machine tools
109
117
118
118
-
-
All commodities(1926=100)
77.7
88.8
P
98.7
0
99.0
P
99.1
P 99.2
TRANSPORTATION
Carloadings (thous. per wk.)
706
853
830
869
889
815
Unloads for export (dly.av.)
Atlantic & Gulf ports(no.)
1,494
1,614
1,718
1,876
1,899
- 1,908
Pacific ports (no.)
112
159
608
718
626
.
653
Surplus cars (dly.av.thous.)
Total
132
77
77
64
53
Box cars
55
30
47
42
37
Coal Care
48
27
12
6
5
Bad order cars, total
first of month (thous.)
153
85
57
55
(Sept.1) 53
ELEC. POWER PROD. (mil. kwh.)
12,094
14,323
16,004
₱ 16,415
3,673
3,571
WAR BOND SALES (mil. dollars)
I
342
901
697
167
151
1941
1942
June
April
May
June
July
August
PLANT UTILIZATION
Shipbuilding (Private)
(Equivalent hours of full capacity operation
61 yardab
61.1
72.9
76.4
77.0
78.5
P 79.7
Three best yards
77.3
97.9
108.4
112.0
111.6
P 111.5
Machine tools
Plant utilization
All plants
76.1
90.3
89.7
90.7
89.9
90.4
Three best plants
111.6
138.9
138.7
144.0
144.0
138.2
Machine utilization
All plants
n.a.
110
109
110
110
110
Three best plants
n.a.
167.2
167.3
167.7
167.7
167.3
. Friday unloads
P Preliminary
n.a. Not available
r Revised
a Total man-hours in one week divided by the number of workers on the first shift.
[c']
61 private shipbuilding yards having approximately 80% of total employment in private
shipbuilding and repair.
22 CONFIDENTIAL
WAR PROGRESS
FOOTHOTES
MAR PROGRESS SERIES
n.a. Not available
P Preliminary
r Revised.
a Total var program includes all funds and authorizations made available for
war purposes by the United States Government plus foreign orders placed in
this country since November 1939. The major portion of the existing pro-
gram has been approved since June 11, 1940, but some authorizations (par-
ticularly portions of the naval expansion program, the merchant shipbuild-
ing program, and the stockpile program) were made available even earlier.
All funds are shown during the fiscal year in which they are available for
obligation.
b Value delivered and / or in place includes (1) value delivered and/or in
place for ships and value of production for other munitions, (2) value in
place for war construction, and (3) checks issued by finance officers for
non-wunitions items.
c Checks paid include (1) all checks paid out of the Treasury General Fund;
(2) checks issued by the Reconstruction Finance Corporation and subsidiary
Government corporations;(3) checks issued by foreign purchasing commissions.
d United States financed program includes the war activities of all United
States Government agencies (including Lend-Lease) plus the war activities
of government owned corporations, but does not include foreign orders.
. Report on checks paid by the Treasury for the account of the Maritime Com-
mission makes allowance for receipts credited to the Construction Loan Fund.
1 Program and obligations for pay for civilians and for the Navy include
only that specifically mentioned in appropriation bills, while the cash
disbursement figures include, in addition, executive war pay which cannot
be separately distinguished in the appropriation bills.
5 Ordnance and naval ships figures revised back to January 1942. In compar-
ing these with prior figures. ordnance and naval ships should be combined.
h For data now available for August 866 War Progress Notes on Page 8, Is-
sue 104.
12 CONFIDENTIAL
WAR PROGRESS
MUNITIONS PRODUCTION- Financial Summary
150
150
125
125
100
100
BILLION DOLLARS
PROGRAM
(Appropriations and Net Authorizations)
75
75
BILLION DOLLARS
50
50
CONTRACT AND
25
OTHER COMMITMENTS
25
o
VALUE OF PRODUCTION
o
J A S o N D J F M A M J J A S 0 N D J F M A M J J A S 0 N D
1940
1941
1942
WAR PROGRESS
the Myst
WAR PROGRESS
Confidential
(British Secret)
6
1
Which Cargo Planes and Why 7
Eight Critical Metals
New Production Data
Number 106
September 25,1942
CONFIDENTIAL
NUMBER 106
WAR PROGRESS
SEPTEMBER25, 1942
Which Cargo Planes and Why
Need to cover large distances emphasizes
yanked from the assembly line minus some
importance of low fuel consumption
armor, armaments, and bomb racks. Al-
and high payloads. But production is
together, some 20% of the heavy and med-
ium transports and multi-engined bombers
concentrated in a short-hop craft.
scheduled for production in 1942 and
ON MAY 10, shortly before Rommel began
1943 will be turned into cargo planes.
his push towards Egypt, almost one-
The cargo plane, however, cannot be
fifth of the R.A.F. fighters and bombers
regarded as a substitute for the mer-
in the Middle East were grounded for
chant ship. If all cargo planes sched-
lack of spare parts. Cargo planes could
uled for production through 1943 were
have transported the necessary parts
now available, their freight-carrying
from England in four or five days (chart,
capacities would amount to only 3% of
page 3). But they weren't available--
our dry-cargo space requirements.
and the ship voyage around the Cape of
Good Hope to Suez takes 48 days.
FOR CRITICAL SUPPLIES
Because of its relatively limited
BUILDING A FLEET
capacity, the cargo plane is not de-
To meet such contingencies in the
signed for full freight haulage. Its
future, the United States is beginning
purpose is chiefly to carry critical
to assemble a fleet of cargo planes.
supplies to points of immediate need.
All of our cargo craft are converted
And for that purpose, the most effi-
passenger planes or bombers--such as
cient, economical craft, which can span
the Consolidated 4-engine Liberators-
great ocean or land masses, are needed.
INTRODUCING A NEW STATISTICAL FORMAT:
WITH THIS ISSUE, War Progress revises
carloadings are omitted, but petro-
its statistical presentations. The
leum loadings--because they reflect
old War Progress value-in-place se-
gasoline rationing and rubber-tire
ries, which appeared weekly, are re-
troubles--are presented. Steel oper-
placed by a more detailed group of
ations are shown as a percentage be-
tables and charts. The tables will
low capacity--to suggest to what ex-
be presented once amonth, and charts
tent resources are not fully utilized.
will be shown in weekly rotation by
Monthly economic data do not ap-
object, that is, overall summary one
pear in this issue butwill be shown
week, aircraft the next, ships the
next week. Chart series heretofore
third, and so on.
presented, plant utilization, Federal
Weekly statistics-heretofore shown
Reserve production figures, etc. will
-will be limited to "Key Statistics
appear as usual. Financial data re-
of the Week" which relate directly to
lating to the war effort will appear
the war effort (page 8 ); thus total
once a month.
2
CONFIDENTIAL
WAR PROGRESS
Yet, as our building program is now con- schedules represent only 11.4% of total
stituted, we seem to fall short of max- production.
imum efficiency in cargo planes.
The six tests which have been used
Some 15 types of cargo and transport
to measure payload efficiency are: (1)
planes have reached the production
or
the ratioof cargo weight to total weight
experimental stage. And more than 60% at take-off for 2,400-mile hops (the
of total 1942-43 production is concen-
longest scheduled flight for air car-
trated in the Douglas DC-3 type medium
riers); (2) also for 750-mile hops; (3)
transport. Although this is extremely
the ratio of cargo weight to fuel weight
serviceable as a troop carrier on short
at 2,400 miles; (4) also for 750 miles;
hops, it ranks extremely low in cargo-
(5) pounds of cargo per ton of critical
carrying efficiency. The Glenn L. Mar-
materials--steel, nickel, chrome, etc.
tin Mars, which rates highest as a freight
--used in the plane; and (6) pounds of
carrier, is not even on the production
cargo per $1,000 of cost. On that basis,
line, and it may take 15 to 20 months
the ranking of the planes as cargo car-
to get it into production. So the Mars
riers-notas combat personnel carriers
is not an immediate answer to the cargo
--and their proportion of production
plane problem.
schedules, would be as follows:
MARS ON TOP
Cargo-Plane
% of
If, for example, we were to assign
Efficiency
1942-43
points for the rating on each of six
Type
Points
Production
tests of payload efficiency-12 for the
PB2M Mars*
70
highest rating in each test, 11 for
C-46 Commando
67
11.4%
second place, etc.--the Mars would have
C-87 Liberator
61
1.3
a top score of 70 out of a possible 72
C-54
53
3.3
points. The C-46 Commando would rank
JR2S
45
0.5
next with 67 points. Yet the Commando
PB314 Clipper*
42
PB2Y Coronado
35
0.1
C-69 Constellation
30
0.9
IN THIS ISSUE:
C-75 Stratoliner*
22
PBM3 Mariner
20
0.2
DC-3 Type
16
62.9
WHICH CARGO PLANES AND WHY
1
Lodestar
5
9.7
INTRODUCING A NEW STATISTICAL FORMAT
1
C-62
**
1.4
C-76
GASOLINE SALES ARE DOWN EVERYWHERE
4
**
7.6
C-93
**
0.7
DIVERGENT TRENDS IN CRITICAL METALS
5
100.0
KEEPING TRACK OF THE WAR EFFORT
7
*Not in production
**Data not available
KEY STATISTICS OF THE WEEK
8
BARNS, ATTICS, CLOSETS
9
As the table shows, about 90% of
WAR PROGRESS NOTES
9
1942-43 production is concentrated in
12 planes for which performance data
PRICES HERE AND ABROAD
10
are available, and most is in low-rated
PRODUCTION PROGRESS (CHARTS, TABLES)
12-16
models. Next to the Commando, the sec-
ond most desirable type of plane now
SEPTEMBER 25, 1942
CONFIDENTIAL
3
in production is the C-87, a cargo ver-
especially below the ice belt.
sion of the B-24 Liberator heavy bomber.
At the bottom of the scale are the
But under present plans, the Liberators
C-69 Constellation, C-75 Stratoliner,
will account for only 1.3% of the total
the PBM3 Mariner, the Lockheed Lodestar
cargo plane output in 1942 and 1943.
and Douglas DC-3, which is the smallest
of the air freighters and, next to the
SEAPLANES BELOW ICE BELT
Lodestar, is rated least efficient of
The Douglas C-54, a 4-engine heavy
the 12. On the 2,400-mile haul--the
transport, is next on the list but its
distance, for instance, from San Fran-
current production schedule calls for
cisco to Hawaii-the DC-3 type consumes
only 3.3% of the whole program. The
three to four times as much fuel per
converted seaplanes, JR2S and PB2Y, are
ton-mile as the Commando or Liberator;
less efficient, though they carry the
has a lower cargo capacity per $1,000
same gross weight. Seaplanes, however,
cost; and can carry only about one-fifth
may be used to greater advantage than
as much freight.
landplanes in certain combat theaters,
On the 750-mile hop, the DC-3 type
DISTANCES AND TIME; BY SHIP, BY PLANE
MILES
TIME (DAYS)
15,000
10,000
5,000
o
o
25
50
75
By Ship
--
By Ship
Son Francisco-Sidney
By Plane
By Plone
New York-Liverpool
New York-Gibroltor
New York-Persion Gulf (Basro)
New York-Colcutta
New York-Eritrea
London-Suez
London-Colcutta
London-Gibraltar
15.000
10,000
5,000
o
o
25
50
75
TIME (DAYS)*
4
CONFIDENTIAL
WAR PROGRESS
GASOLINE SALES ARE DOWN EVERYWHERE;
BUT MOST SHARPLY IN THE EAST
% change from year ago
DAS
-
Rocky Mountoins
to
10
will
0
# DAK
-
LOSS
10
Middle West
i
to
20
1
HI
30
NESS
di
M
4.
M
,
0
East Coost
COLD
20
LOSS'S
ID
West Coost
10
20
8
-
o
8
30
it
à
,
*
A
.
,
o
LOSS , $40
o
y
20
10
NREA
X
8
TEX
,
F
E
A.
ARE
M
#
"
30
,
E
.
c
will
:
,
Gulf Coost
20
LA
10
LOSS CAIN
o
&
PLA
8
20
30
#
,
&
1
,
# East Coost 85% retioned
WAR PROGRESS
GASOLINE CONSUMPTION IS DOWN THROUGHOUT THE UNITED
WOULD BE HARD TO GET. BIGGEST DROP HAS TAKEN PLACE
STATES. IN JUNE, FOR EXAMPLE, AUTOMOBILISTS WERE
IN THE EAST, FIRST AS A RESULT OF RESTRICTION OF
CONSUMING ONLY 86% OF THE MOTOR FUEL THEY USED IN
GASOLINE SHIPMENTS TO DEALERS, THEN MORE PRECIPI-
JUNE, 1941. DECLINES IN CONSUMPTION SET IN AFTER
TATELY AFTER FORMAL RATIONING OF CIVILIANS TOOK
PEARL HARBOR, ONCE IT BECAME CLEAR THAT RUBBER TIRES
PLACE. TODAY THE EAST IS ABOUT 85% RATIONED.
makes a better showing. And since this
needed small troop-transport planes
model accounts for about 63% of the en-.
which could land in open fields. In this
tire cargo-plane program--more of these
capacity, the large cargo plane, such
are coming off the assembly line than
as the Commando, will not do. It needs
of all others combined--we must use it
prepared air bases. Hence, the small
as a work horse, to make up for the
plane, capable of landing in an open field
critical shortage of larger air carriers.
or on a small runway, is still an essen-
Most cargo planes can be used inter-
tial part of the military accoutrement.
changeably.as troop transports. For ex-
ample, in one week a plane can be uti-
DC-3 AS TROOP CARRIER
lized to move spare airplane parts; the
For this reason, the current expan-
next week, fitted out with wooden seats,
sion of facilities for manufacturing
it may be employed to haul troops. By
DC-3's must be assumed to be in their
and large, the same criteria of payload
capacity as troop carriers and not as
efficiency apply to both. But there
freighters, in view of their low effi-
is an exception.
ciency rating for long-distance haulage.
In Crete, for instance, the Germans
Also, they are old-line planes and pro-
SEPTEMBER 25, 1942
CONFIDENTIAL
5
duction bugs have been killed. But if
considerable output is scheduled--into
cargo considerations are uppermost, it
cargo planes; (2) abandon production
might be desirable to divert some of the
plans for some of the less efficient
materials to increase plant facilities
models; and (3) develop a new and simple
to manufacture Commando planes.
cargo plane, using engines for which we
We might also correct the imbalance
have surplus capacity and noncritical
in the cargo-plane program in other ways,
materials, such as low-carbon steel
such as: (1) convert a larger propor-
tubing with fabric covering for the fu-
tion of the B-24 heavy bombers-of which
selage, and poplar plywood wings.
Divergent Trends in Critical Metals
Steel, copper, zinc, and lead production
ingot output have declined. Steel op-
are flattening out, limiting war ef -
erations are right up close to capaci-
fort. Aluminum, manganese, magnesium,
ty; labor shortages have held back min-
and tungsten are still headed up.
ing of copper, lead, manganese,and zinc.
Copper, steel, and zinc-the old-
DOMESTIC PRODUCTION of critical metals
established metals--have already ap-
--as might be expected--hasrisen sharp-
proached their peaks and today are lim-
ly since the 1937-38 depression. Among
iting factors in production. (Produc-
eight key metals, increases to date have
tion and consumption of lead are more
ranged from 120% for lead to 1, 500% for
nearly in balance, but expected increases
magnesium; but from now to the end of
in demand next year may exhaust the
1943, gains can hardly be as steep, as
the following table shows:
KEY METALS UP ONE-THIRD,
Since
FABRICATION TRIPLES
1937-38
Now to
300
300
Metal
Lows
1943 Peak
Aluminum
445%
85%
Copper
230
15
250
250
Lead
120
Nil
Magnesium
1,500
395
Fobricated Metal
200
Products
200
Manganese
840
240
Steel ingots
280
16
July 1940*100
July 1940*100
Tungsten
280
105
150
150
Zinc
145
16
Basic Metals
100
100
Dates for peak capacity vary. Zinc
will reach maximum output in January,
1943; steel, manganese, and magnesium
50
50
1939
1940
1941
1942
around six months later; copper, alumi-
num, and tungsten in December, 1943
(charts, page 6).
SINCE JULY, 1940, OUT PUT OF BASIC METALS-STEEL, COP-
PER, ZINC, ETC.-INCREASED 36%. BUT FABRICATED PROD-
But estimates of increases may be
UCTS-MACHINERY, GOVERNMENT-ARSENALS OUTPUT, ETC.-
overoptimistic. In recent months, cop-
ROSE 180%. INFERENCE: WAR PRODUCTION REQUIRED MORE
per, lead, manganese, zinc, and steel
WORK PER TON OF METAL THAN PEACETIME PRODUCTION.
6 CONFIDENTIAL
WAR PROGRESS
MIXED TRENDS IN U.S. METALS PRODUCTION
I. The output of these is scheduled to flatten out:
IO
120
Copper
Steel Ingots
8
THOUSANDS OF NET TONS
80
6
4
40
MILLIONS OF NET TONS
2
0
0
1937
1938
1939
1940
1941
1942
1943
1937
1938
1939
1940
1941
1942
1943
80
100
Lead
Zinc
80
60
THOUSANDS OF NET TONS
60
40
40
THOUSANDS OF NET TONS
20
20
o
o
1937
1938
1939
1940
1941
1942
1943
1937
1938
1939
1940
1941
1942
1943
2. But the output of these is scheduled to rise sharply:
200
50
Aluminum
Magnesium
40
150
MILLIONS OF POUNDS
30
100
20
MILLIONS OF POUNDS
50
10
o
0
1937
1938
1939
1940
1941
1942
1943
1937
1938
1939
1940
1941
1942
1943
50
2.0
Manganese
Tungsten
(Ore containing of leost 35% manganese)
40
1.5
THOUSANDS OF LONG TONS
30
1.0
20
MILLIONS OF POUNDS
.5
IO
0
0
1937
1938
1939
1940
1941
1942
1943
1937
1938
1939
1940
1941
1942
1943
WAR PROGRESS
SEPTEMBER 25, 1942
CONFIDENTIAL 7
present stockpile.) Since July, 1940,
ported. But exploration has resulted
fabrication of metal products has risen
in extensive developments. Manganese
nearly 300% whereas the increase in key
output next year will cun to about one-
metals has been only about 30% (chart,
third of estimated new supply; in tung-
page 5). But to achieve large increases
sten, the proportion will be around two-
in munitions output scheduled from now
thirds.
on, either substitutes must be found
or conservation practiced. For capac-
ALUMINUM. MAGNESIUM
ity cannot quickly be expanded.
New plants are lifting aluminum
schedules from almost 100,000,000 pounds
A DIFFERENT CLASS
this month to over 180,000,000 pounds
Aluminum, magnesium, manganese, and
at the end of 1943. The situation in
tungsten are in a different class. Ex-
magnesium is similar-with monthly out-
pansion in these metals is developing
put scheduled to rise from 8,800,000
rapidly. Prior to 1941, practically
pounds to almost 44,000,000 pounds by
all our manganese and tungsten were im-
August, 1943.
Keeping Track of the War Effort
New statistical series provides detailed
week it will publish charts to show
figures on nation's production progress:
graphically what has happened, is hap-
value of plane output, tanks, ordnance,
pening, and is scheduled to happen on
etc. Parts can be related to whole.
the production front. These charts will
appear in sequence: aircraft, ground
THIS WEEK War Progress introduces a new
ordnance, naval ships, merchant ships,
and more detailed set of statistics on
etc.
the value of war production. Whereas
the former data prepared by the Muni-
CUTTING DOLLAR VALUES
tions Branch of the Statistics Division
The statistical principles behind
covered only eight major categories--
these new data are comparatively simple.
aircraft, combat vehicles, ordnance,
The Munitions Branch collects item-by-
naval ships, the new data are di-
item dataon the physical output of war
vided into more than 60 individual cat-
materials-how many planes, tanks, rounds
egories. Thus, we can now examine the
of ammunition, etc., and of what type
relative production progress of the war
are produced each month. Then each of
effort's minor as well as major parts,
these items is assigned a "unit cost"
in relation to the whole. For these
value. An M3 tank costs so much, a
data have a common denominator: they
20mm. shell so much, and so on. Then
are expressed in dollar terms.
deliveries of each item are multiplied
by the unit cost, an allowance is made
A GRAPHIC SEQUENCE
for incomplete coverage, and that gives
For executives in the war agencies
the dollar value of physical output of
concerned witha quick, overall view of
tanks, planes, guns, etc.
what goes on, War Progress each month
That procedure does not apply to na-
will present tables of the more signif-
val vessels or merchant ships, for these
icant categories (page 12); and each
oftentimes take months to produce, yet
8
CONFIDENTIAL
WAR PROGRESS
KEY STATISTICS OF THE WEEK
Latest
Preceding
Month
6 Months
Year
Week
Week
Ago
Ago
Ago
War program - Checks paid (millions of dollars)
1.311
1,123
1,107
643
304
War bond sales (millions of dollars)
163
151
143
117
48
Commodity prices (Aug. 1939 . 100)
28 Basic commodities
168.4
168.0
166.8
166.0
155.8
Controlled
161.3
161.2
161.4
161.7
155.3
Uncontrolled
186.2
185.2
180.5
177.5
156.6
Nonferrous metal scrap
115.8
115.8
118.3
132.5
133.2
Petroleum carloadings (no. of cars)
Total
54,644
53,523
53,748
54,056
47.077
Movement into East
28,557
27,948
27,266
14,453
2,396
Exports (no. of freight cars unloaded for export daily)
Atlantic Coast ports
1,569
1,664
1,574
1,708
1,476
Gulf Coast ports
818
653
711
297
139
Pacific Coast ports
323
244
330
450
366
Strikes affecting the war effort
Number in progress
11
18
25
n.a.
n.a.
Man days lost
24,706
63,333
50,236
n.a.
n.a.
Unused steel capacity (% operations below capacity)
3.8
2.8
2.7
1.0
3.2
n.a. Not available.
work goes on all the time. So, instead
Army, Navy, Joint Aircraft Committee,
of handling ships on a delivery basis,
and the Maritime Commission, and it is
they are treated on a work-done basis--
based upon (1) schedules already under
"value put in place" is the technical
contract; (2) the estimated output of
term. If 10% of a ship costing $5,000,-
planned facilities-new plants, ship-
000 is completed in a month, the value
yards, etc. Forecasts are revised month-
put in place would be $500,000.
Con-
ly, in the light of actual accomplish-
struction is treated in similar fashion.
ments. (Thus, if schedules are set too
high for one month, they may be revised
PAY AND SUBSISTENCE
downward. Or, conversely, what some-
The value of nonmunitions items (pay,
times happens is that if a schedule is
subsistence, travel, etc.) is handled
not made in one month, the deficit is
just as the businessman would expect--
pushed forward to a future month-thus
on an actual expenditure basis: how
the forecast tends to pile up on it-
much the Treasury pays out in any month
self.) There are no monthly forecasts
for food, traveling, and shelter (other
of nonmunitions items.
than construction) for troops, and so on.
In addition to compiling actual fig-
WHAT ARE OBJECTIVES?
ures of past production (the retrospect),
In addition to forecasts, the Muni-
the Munitions Branch also calculates
tions Branch also computes the dollar
what production is scheduled to be (the
value of the production objectives of
forecast). This forecast represents
the armed services. These go a step
expected production as reported by the
beyond the forecasts, and will be pre-
SEPTEMBER 25, 1942
CONFIDENTIAL
9
sented in War Progress' new series of
eight weeks in the nation's steel mills.
tables and charts. The objectives (page
Asyou might readily guess, most of the
12) take into account what the armed
household scrap (83%) is in rural attics
services strategically may want--how
and farmyards. It's chiefly located
many tanks, guns, etc., but they also
west of the Mississippi.
are adjusted for feasibility: how many
About one-third of the families in
tanks, guns, etc., can be produced on
the United States have scrap rubber to
the basis of raw materials supplies and
dispose of. Again, the farmers and res-
plant capacity.
idents of small villages are the big
However, objectives for individual
scrap owners (70%). About 97,000 tons,
items are not always available. In the
of scrap rubber are collectible--enough
case of the Navy, there is no separate
to keep rubber reclaiming plants going
announced objective. The Army, on the
two or three months.
other hand, estimates what type of equip-
The survey indicated that American
ment and how much are required, based
housewives are still far from being tin-
upon the number of men under arms, shifts
can conscious. Two out of every three
in the Army's organizational structure,
families are not putting aside cans for
and tables of basic allowance. Then,
salvage, primarily because they aren't
procurement officers proceed to adjust
aware that they're supposed to save them.
production schedules to meet the ob-
As for grease, the survey revealed
jectives. In the War Progress tables
that more is available in urban homes
published today, separate objectives
than in rural, probably because city
are given for army items, but no sepa-
dwellers consume more meat per capita
rate objectives are shown fornavy items.
than persons living on farms.
And in computing the overall relation-
ship of total war program to total ob-
jective, the navy forecast is assumed
War Progress Notes
to be the objective.
SPEEDUP FOR INVASION?
Barns, Attics, Closets
AUGUST PRODUCTION of tank landing craft
--similar to the type used at Dieppe--
Survey of the American home takes meas -
exceeded schedules by 55%, thus mark-
ure of available supplies of scrap. Form-
ing the first significant output of
ers are biggest source of steel and rubber,
these vessels since launching of the
program last spring. Some 95% of the
city dwellers of grease.
entire programis slated for completion
THE MARKET RESEARCH DEPARTMENT of Young
this year, the balance by April, 1943.
& Rubicam has just completed for the
Statistics Division, WPB, a sample sur-
NINE PASSENGERS: TWO TIRES
vey of American homes to determine how
A SMALL TRAILER that carries nine pas-
much salvageable scrap is hidden in
sengers and mounts only two 7.00x15 tires
barns, attics, and overcrowded closets.
is the latest suggestion to meet the
Here are the findings:
possible pinch in war-worker transpor-
Some 3,900,000 tons of steel scrap
tation next year. Dimensions: length,
can be rounded up. Though it took years
8 feet; width, 6-feet-4-inches; head-
for farmers and housewives to build up
room, 5-feet-6-inches. Motive Power:
such a scrap pile, it would last only
any passenger car. Around half of its
AUGUST 14,1942
CONFIDENTIAL ... 13
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million dollars'
BREAKDOWN OF MUNITIONS PRODUCTION
MUNITIONS PRODUCTION, TOTAL
Program
28,566
53.738
P124,097
-25
P 4,756
P 29,952
Uncommitted balance
4,901
13,929
P 29,106
-
-
-
Contracts and other
commitments
23,665
39,809
P 94,991
p 6,668
P 6,942
n.a,
Value delivered and/or
in place
b
4,290
8,940
20,449
2,248
2,638
P 3,039
Value not delivered nor
in place
19,375
30,869
P 74,542
-
-
-
AIRPLANES, PARTS & ACCESSORIES
Program
8,582
15,072
P 37,586
0
P
-215
P 9.737
Contracts and other
commitments
7,381
13,298
P 33,945
P
2,409
P
2,838
n.a.
Value delivered
1,010
2,265
4,752
471
510
P
565
ORDNANCE
Program
7.778
17,488
P 36,400
0
P
285
P 9,548
Contracts and other
commitments
5,418
10,354
P 26,873
P
2,278
P 2,360
n.a.
Value delivered
700
1,685
4,998
696
731
P
918
NAVAL SHIPS
Program
6,796
9,605
p 18,460
0
P
2,922
P
0
Contracts and other
commitments
6,442
7.930
P 12,276
275
P
276
n.a.
Value delivered and/or
in place
810
1,665
3,383
399°
404
P
494
MERCHANT SHIPS
Program
1,442
3,288
P 8,653
-25
P 1,054
P
0
Contracts and other
commitments
1,484
2,381
P 6,880
P
607
P
618
n.a.
Value in place
240
510
1,188
131
176
P
182
OTHER MUNITIONS AND SUPPLIES
Program
3.968
8,285
p 22,998
0
P
710
P 10,667
Contracts and other
commitments
2,940
5,846
P 15,017
p 1,099
P
850
n.a.
Value delivered
1,530
2,815
6,128
551
817
P
880
Graph appears on opposite page.
For footnotes see Page 18.
Table continued on Page 15.
10 CONFIDENTIAL
WAR PROGRESS
PRICES HERE AND ABROAD
A comparison of wholesale markets, cost of living, and common stocks in Great
Britain, Canada, and the United States.
I80
180
Wholesale prices
160
160
United Kingdom
140
140
Conodo
120
120
United States
100
100
80
80
60
60
1939
1940
1941
1942
180
180
Cost of living
160
160
140
140
AUGUST 1939 100
United Kingdom
120
120
Conodo
United States
AUGUST 1939* 100
100
100
80
80
60
60
1939
1940
1941
1942
IBO
180
Common stock prices
160
160
140
140
120
120
United Kingdom
ЮО
100
Conodo
United States
80
BO
60
60
1939
1940
1941
1942
WAR PROGRESS
WAR AFFECTS PRICES IN SIMILAR WAYS, THOUGH NOT AT TROLS HAS CAUSED THESE INDEXES TO FLATTEN OUT. STOCK
THE SAME TIME. FIRST IN ENGLAND, THEN IN CANADA PRICES FELL MENGLAND UNDER THE PRESSURE OF SEVERE
AND THE UNITED STATES, RISING WAR EXPENDITURES,
CORPORATE TAXES AND MILITARY DEFEATS; RELAXATION
SHIPPING SHORTAGES, LABOR SHORTAGES, ETC. PUSHED UP
OF TAXES AND IMPROVEMENT OF THE WAR OUTLOOK AFTER
WHOLESALE PRICES AND THE COST OF LIVING. FIRST IN
DUNKIRK HAVE PRODUCED SOME RECOVERY. BUT U. S.
ENGLAND, THEN INCANADA, AND ONLY RECENTLY AND PAR-
STOCK PRICES ARE STILL IN THE SAG STAGE THE BRITISH
TIALLY INTHE UNITED STATES, THE IMPOSITION OF CON-
PASSED THROUGH OVER A YEAR AGO.
SEPTEMBER 25, 1942
CONFIDENTIAL
=
1,250-pound weight is metal (principal-
in white. To cover military and civilian
ly for floor base, axle, springs, and
requirements, at least 55,000 new stu-
brake) but less than 5% is in critical
dents should enter training in the cur-
alloy steels; the rest is wood. Some
rent academic year, 65,000 next. New
25 of the units--which can be mass-manu-
students in the 1941-42 academic year
factured at a price of about $400-may
approximated 45,000.
soon be built for "sample" operation
around war plants.
BY-PRODUCT OF CONCENTRATION
IN GERMANY, the process of concentrat-
SHOT BY FEMALES
ing production in fewer and bigger units
INCREASINGLY, ammunition is getting the
has produced scrap. Authorities have
feminine touch. Women are being taken
ordered the scrapping of all idle indus-
on by ammunition makers for jobs requir-
trial equipment which is not likely to
ing quick eyes and nimble fingers, as
be brought back into production within
the following table suggests:
a short time. The rapid increase of
concentration in German industry is in-
Women as %
dicated by the rise of compensation for
Plants
of Total Workers
overhead paid to eliminated firms. In
Tanks and parts
5%
1940, such compensations averaged 67,-
Guns (over 60 cal.)
6
000 marks a month; in the first six
Firearms (60 cal.
months of this year, they averaged 270,-
and under)
18
000 marks.
Fighting and fire
control equipment
18
PROBLEM OF THE WEEK
Ammunition--except
AIR RAID PRECAUTIONS authorities are
for small arms
27
studying ways to prevent the escape,
Ammunition-60 cal.
during bombings, of criminals from pris-
and under
38
ons, insane from asylums, and wild an-
Explosives
10
imals from zoos.
The labor shortage took care of the
MORE CLAY, LESS CAST IRON
prejudice against women in arsenals:
CLAY PIPE--already being used by the
Navy's Bureau of Yards and Docks in
DOUBLING THE CEILING
fields and other open spaces--is now
A HOTEL PROPRIETOR figured out a way to
being specified for all structures,
beat price ceilings. To get a room,
floor load permitting. Maximum savings'
guests were required to register twice
of cast-iron soil pipe are estimated at
and pay for each registration. OPA
6,000 to 8,000 tons per month.
figured out a way to beat the proprie-
tor-got an injunction.
PAPER IN PLANES?
PAPERBOARD instead of metal for pack-
WOMEN IN WHITE
ing shells has been commonplace for
LOVE-STORY PULPS have been asked to
about a year. But now new military uses
glamorize the nursing profession. The
for paper are being studied. Possibil-
object is to get eligible young women
ity at present is a plastic-treated
to choose nursing as a career, thus off-
paperboard that may become a basic ma-
setting the current shortage of women
terial in aircraft construction.
12
CONFIDENTIAL
WAR PROGRESS
PRODUCTION PROGRESS
General Summary (Value of production, in millions of dollars)
Total
Total
Total
Total
Non-
Munitions &
Program
Munitions
Construction
Construction
munitions
1942
Jan.
2,435
2,043
1,435
608
392
1942
Jan.
Feb
2,586
2,140
1,516
624
446
Feb.
Mar.
3,068
2,521
1,763
758
547
Mar.
Apr.
3,709
3,068
2,091
977
641
Apr.
May
4,166
3,459
2,366
1,093
707
May
June
4,571
3,882
2,637
1,245
689
June
July
5,097
4,356
2,907
1,449
741
July
Aug.
P5,473
p4,713
p3,141
p1.572
p760
Aug.
Sept.
5,834
4,306
1,528
Sept.
Oct.
6,264
4,759
1,505
Oct.
Nov.
6,721
5,216
1,505
Nov.
Dec.
7.034
5,532
1,502
Dec.
1943 Jan.
7,181
5,846
1,335
1943 Jan.
Feb.
7.347
6,013
1,334
Feb.
Mar.
7,603
6,272
1,331
Mar.
1942 Estimate
1942 Estimate
(Actual plus Forecast)
62,325
52,035
37,669
14,366
10,289
(Actual plus Forecast)
1942 Objective
64,723
54,434
40,064
1942 Objective
1943 Forecast
110,484
92,349
81,049
11,300
18,135
1943 Forecast
1943 Objective
111,488
93.353
82,053
1943 Objective
1942 43 Estimate
1942 43 Estimate
as % of Objective
98%
98%
97%
as % of Objective
Aircraft &
1 Total
Naval and
*Combat
Merchant
Aircraft
Munitions
Ground Army
Army Vessels
Vessels
Munitions
Munitions
& Equip.
1942
Jan.
1,031
381
236
335
79
1942
Jan.
Feb.
1,091
442
241
310
98
Feb.
Mar.
1,306
525
313
374
94
Mar.
Apr.
1,,'16
560
397
460
129
Apr.
May
1,776
649
4444
536
147
May
June
1,957
713
490
568
186
June
July
2,202
753
629
623
197
July
Aug.
p2,401
p834
659
p699
p209
Aug.
Sept.
3,433
1,153
1,003
1,054
223
Sept.
Oct.
3,854
1,260
1,211
1,144
239
Oct
Nov.
4,220
1,365
1,418
1,181
256
Nov.
Dec.
4,507
1,470
1,568
1,197
272
Dec.
1943 Jan.
4,839
1,636
1,741
1,177
285
1943
Jan.
Feb.
5,005
1,745
1,795
1,177
288
Feb.
Mar.
5,259
1,907
1,877
1,185
290
Mar.
1942 Estimate
1942 Estimate
(Actual plus Forecast)
29,324
10,105
8,609
8,481
2,129
1942 Objective
(Actual plus Forecast)
32,256
12,950
8,472
8,707
2,129
1942 Objective
1943 Forecast
68,747
27,939
22,936
14,350
3,522
1943 Forecast
1943 Objective
69,933
32,531
20,162
13,718
3,522
1943 Objective
1942 43 Estimate
as % of Objective
9 1
84%
1942 43 Estimate
110%
102%
100%
as % of Objective
*Fighting Items: Includes aircraft and aircraft munitions; ground aray ordnance and ground signal equipment:
naval, aray, and merchant ships and equipment. f Ground army ordnance and ground signal equipment.
P Preliminary.
NOTE: Dotted line separates actual figures from forecast figures.
SEPTEMBER 25, 1942
CONFIDENTIAL 13
PRODUCTION PROGRESS
General Summary - Munitions, Construction, Nonmunitions
Total War Program
Total Munitions and Construction
10,000
10,000
1942-43 Objective
$147.8 Billion
8000
8000
Deficit
1942 43 Forecast
6000
1942- 43 Objective
$ 144 4 Billion
6000
$ 176.2 Billion
4000
4000
Deficit
1942-43 Forecost
2000
2000
$ 172.8 Billion
O
0
1942
1943
1942
1943
Total Munitions
Total Construction
2000
VALUE DELIVERED OR PUT IN PLACE MILLIONS OF DOLLARS
8000
1942-43 Objective
$122.1 Billion
1600
6000
Deficit
1942-43 Forecost
1200
$118.7 Billion
4000
800
2000
400
VALUE DELIVERED OR PUT IN PLACE MILLIONS OF DOLLARS
o
0
1942
1943
1942
1943
Total Combat Munitions
Total Nonmunitions
6000
1500
1942-43 Objective
$1022 Billion
5000
Deficit
4000
1000
1942-43 Forecost
$ 98.1 Billion
3000
2000
500
1000
.
Includes aircraft and aircraft munitions, ground army
ordnonce and ground signal equipment, noval, army,
and merchant ships and equipment.
0
o
1942
1943
1942
1943
WAR PROGRESS
14
CONFIDENTIAL
WAR PROGRESS
PRODUCTION PROGRESS
Aircraft-Ordnance (Value of production, in millions of dollars)
Combat
Artillery &
Aircraft
Aircraft
Artillery
Tank Cannon
Planes
Armament
Ammunition
& Equip.
Ammunition
1942
Jan.
151
14
28
15
42
1942
Jan.
Feb.
179
17
27
18
48
Feb.
Mar.
210
20
43
36
72
Mar.
Apr.
197
23
38
42
84
Apr.
May
241
29
47
29
88
May
June
260
29
50
27
99
June
July
276
29
56
48
118
July
Aug.
28L
29
59
56
102
Aug.
Sept.
385
31
104
81
161
Sept.
Oct.
426
33
120
125
180
Oct.
Nov.
444
34
156
167
211
Nov.
Dec.
487
36
160
184
231
Dec.
1943 Jan.
547
37
169
198
234
1943
Jan.
Feb.
610
43
170
201
240
Feb.
Mar.
704
43
173
208
241
Mar.
1942 Estimate
1942 Estimate
(Actual plus Forecast)
3,542
324
888
528
1,436
1942 Objective
(Actual plus Forecast)
4,936
278
988
958
1,244
1942 Objective
1943 Forecast
11,427
506
1,984
2,455
2,835
1943 Forecast
1943 Objective
14,107
668
1,850
1,821
2,653
1943 Objective
1942 43 Estimate
1942 43 Estimate
as % of Objective
79%
88%
101%
118%
110%
as % of Objective
Antiaircraft
Antiaircraft
Small Arms
Small Arms
Guns &
& Infantry
Combat
Ammunition
& Infantry
Equip.
Weapon
Vehicles
Weapons
Ammunition
1942
Jan.
17
16
14
33
87
1942
Jan.
Feb.
16
11
14
38
Mar.
6
Feb.
20
8
19
54
89
Mar.
Apr.
26
21
23
$
111
May
40
21
Apr.
30
84
June
123
52
21
May
36
89
137
June
July
65
30
30
Aug.
115
171
78
July
28
30
113
Sept.
177
Aug.
99
28
37
198
297
Sept.
Oct.
125
30
47
230
361
Nov.
151
45
Oct.
55
Dec.
265
406
160
60
Nov.
62
289
459
Dec.
1943 Jan.
186
57
71
Feb.
327
200
530
58
1943
Jan.
75
Mar.
331
212
560
63
Feb.
78
346
595
Mar.
1942 Estimate
(Actual plus Forecast)
849
1942 Estimate
319
402
1942 Objective
1,577
993
2,507
227
479
(Actual plus Forecast)
1,497
2.373
1942 Objective
1943 Forecast
2,382
604
1943 Objective
955
4,473
2,585
7,834
1943 Forecast
580
763
3,790
6,705
1943 Objective
1942 43 Estimate
as % of Objective
90%
115%
1942 43 Estimate
109%
114%
114%
% of Objective
SEPTEMBER 25, 1942
CONFIDENTIAL 15
SUCIORS
PRODUCTION PROGRESS
Selected Items - Aircraft, Ground Army, Ships
untanoO-aqida
Aircraft and Aircraft Munitions
Total Ground Army Munitions
2500
2000
1942-43 Objective
1942-43 Objective
$45.5 Billion
$28.6 Billion
2000
Excess
Deficit
1500
1500
1942- 43 Forecost
1942-43 Forecost
$38.0 Billion
$31.6 Billion
1000
1000
500
500
*Ground army ordnonce and ground signal equipment.
o
o
1942
1943
1942
1943
Merchant Vessels
Naval and Army Vessels and Equipment
VALUE DELIVERED PUT IN PLACE - MILLIONS OF DOLLARS
350
1200
300
1000
250
800
200
1942-43 Objective
$5.6 Billion
600
150
400
1942-43 Forecost
100
$5.6 Billion
DELIVERED OR PUT IN PLACE MILLIONS OF DOLLARS
OR
200
50
0
0
1942
1943
1942
1943
Major Combat Vessels
Minor Combat Vessels
VALUE
350
350
300
300
250
250
200
200
150
150
100
100
50
50
o
o
1942
1943
1942
1943
WIR PROGRESS
16
CONFIDENTIAL
WAR PROGRESS
PRODUCTION PROGRESS
Ships-Construction-Nonmunitions (Value put in place, in millions of dollars)
Battleships,
Antisub-
Cruisers &
Destroyers
Submarines
marine
Transports
Carriers
Vessels
(Army, Navy)
1942
Jan.
63
76
26
42
2
1942
Jan.
Feb.
55
62
18
41
1
Feb.
Mar.
67
63
18
49
1
Mar.
Apr.
72
68
18
62
3
Apr.
May
73
75
23
79
4
May
June
75
81
20
91
11
June
July
68
81
21
86
7
July
Aug.
R71
D73
p25
p102
D9
Aug.
Sept.
120
117
39
171
10
Sept.
Oct.
123
113
45
191
12
Oct.
Nov.
120
113
43
209
15
Nov.
Dec.
116
112
40
226
16
Dec.
1943
Jan.
116
106
45
201
17
1943
Jan.
Feb.
115
102
45
211
20
Feb.
Mar.
114
98
45
221
21
Mar.
1942 Estimate
1942 Estimate
(Actual plus Forecast)
1,023
1,034
336
1,349
91
(Actual plus Forecast)
1942 Objective
1942 Objective
1943 Forecast
1,293
1,004
506
3,261
247
1943 Forecast
1943 Objective
1943 Objective
1942 43 Estimate
1942 43 Estimate
as % o Objective
as % of Objective
Industrial
Aircraft
Landing
Clothing &
Personal
Military
Facilities
Fields &
Vessels
Bases
Equip. 1
Pay -
1942
Jan.
3
342
54
59
138
1942
Jan.
Feb.
1
358
54
53
157
Feb.
Mar.
2
392
68
66
175
Mar.
Apr.
3
one
485
86
78
228
Apr.
May
6
524
129
79
259
May
June
14
565
160
95
287
June
July
48
604
228
101
p320
July
Aug.
P98
P660
P259
p105
R 350
Aug.
Sept.
138
586
270
105
Sept.
Oct.
169
534
344
110
Oct.
Nov.
174
533
345
110
Nov.
Dec.
150
533
344
110
Dec.
1943 Jan.
150
517
267
110
1943
Jan.
Feb.
150
517
267
110
Feb.
Mar.
150
516
266
110
Mar.
1942 Estimate
1942 Estimate
(Actual plus Forecast)
806
6,116
2,341
1,071
4,458
(Actual plus Forecast)
1943 Objective
697
1943 Objective
1943 Forecast
1,800
4,000
2,250
1,320
9,107
1943 Forecast
1943 Objective
1,499
1943 Objective
1942 43 Estimate
1942 43 Estimate
as % of Objective
109%
as % of Objective
Based on checks issued. |Value delivered. P Preliminary.
NOTE: Dotted line separates actual figures from forecast figures.
School The
WAR PROGRESS
Confidential
(British Secret)
I
- - - WM
per A
Europe's Food Plight
Number 107
October 2, 1942
CONFIDENTIAL
NUMBER 107
WAR PROGRESS
OCTOBER 2, 1942
Europe's Diminishing Food Supply
Germany takes best of bare subsistence fare
--may decline a good deal.
as spread of war cuts crops, but sees to
Germany continues to be better fed
it that industrial workers in occupied lands
than any country in Continental Europe
get enough to keep going.
for two reasons: (1) It has attained
a high degree of self-sufficiency in
CONTINENTAL EUROPE enters the fourth
agriculture; (2) it draws on the re-
year of war facing famine, as in Greece,
sources of occupied and satellite coun-
and bare subsistence, as in Germany.
tries.
In every country--neutral or belligerent
Until the invasion of Russia, most
--the' food situation has deteriorated.
Germans managed fairly well. Rationing
The severe winter of 1941-42, the in-
had been in effect for several years,
"creasing draft of peasants into the Axis
as Hitler prepared for war. So people
and Russian armies, the growing shortage
were getting used to a sparse diet. But
of seed, fertilizer, horses, and machin-
war with Russia changed things. Not
ery, the diminution of food reserves,
only did grain and vegetable oil imports
dislocation of transportation, and naval
cease, but German armies required in-
blockade of the Continent have put many
creased quantities of food. More than
countries on less than subsistence ra-
that, Soviet resistance was stronger
tions (map, page 4).
than expected and Hitler had to dig in
The most serious deficiencies in the
for a long war.
next year will generally appear on the
protein and fatty side of the diet.
BELOW PREWAR CALORIES
Meats, eggs, and dairy products will be
Last spring, the German government
scarcer than in the first three years
decided to conserve the food supply by
of war, especially in northern Europe,
cutting the meat and fat rations 20% to
because many regions, unable to import
25% and the bread ration 10%. Simul-
feeds, have had to slaughter much of
taneously, consumption of potatoes--the
their livestock, particularly pigs and
big staple in central and eastern Euro-
poultry.
pean menus-was restricted. This brought
the German workers' diet down to between
LESS GRAIN, FEWER VEGETABLES
87% and 96% of prewar calories. But
Grain will be less plentiful, too.
recently promises ,ere made to raise
This year's wheat and rye harvest is
the bread and meat rations somewhat. No
believed to be less than in normal, pre-
serious shortages--such as those which
war years. The supply of potatoes and
appeared in 1918--are immediately in
sugar--which bulk larger in the conti-
prospect. But quality is exceedingly
nental diet than in the United States--
low,with bread and potatoes constituting
is expected to equal last year's. But
the principal items, garnished with
the vegetable output is off, despite
artificial vitamins, fancy concentrates,
greater plantings and more intensive
and ersatz meats and beverages (WP-Sept-
truck gardening, and fruit production--
4'42,p6).
never so great as in the United States
Italy is living on a lower standard
2
CONFIDENTIAL
WAR PROGRESS
than Germany. Decreased production,
France is not much better off than
army requirements, and greater exports
Italy. Severe food shortages continue
to Germany-which in 1940-41 took four-
in many regions. Here, too, the peasants
fifths of all the vegetables shipped
refuse to sell their crops at the low
out of Italy and two-thirds of the fruits
government prices. The black market
--only partially account for this. Of
flourishes, and local authorities (now
equal importance is the breakdown in the
rather independent of the central ad-
distribution system.
ministration) encourage the farmers in
their bailiwicks to disobey regulations.
DEBASING BREAD
The movement of the supplies that are
The sale of nearly every food item
collected is hindered by the shortage
is controlled by the government. But
of rolling stock, much of which has been
high black market prices induce farmers
taken over by the Germans.
to divert considerable produce from the
open market, despite severe penalties.
BALKANIZING THE FRENCH DIET
Only people who can afford to buy in
German levies have also cut into the
the black market, or who live on farms
French diet. It is estimated that the
or have connections with farmers, get
Nazis have requisitioned, for shipment
a decent food supply. The consumer who
to Germany and feeding the army of OC-
depends on the official rations gets
cupation, about 8% of the 1941-42 wheat
only from half to two-thirds as much
crop, 20% of the meat output, and 20%
bread as in Germany, and one-fifth to
of the fats and oils production. And
one-half as much meat and fats (chart,
the French, once the best-fed nation in
page 3). And, as in other countries,
Europe, are now on a level with some of
the Italian bread has been debased--
the traditionally underfed Balkan peo-
by government edict-with rice, barley,
ples. Incidentally, unoccupied France
and other flours to conserve wheat.
isno better off than the occupied zone.
Potatoesare also restricted,and cheese,
once plentiful, has become relatively
BELGIUM AND HOLLAND
scarce owing to the decline in the milk
Belgiumand Holland present somewhat
output.
contrasting situations. Holland, an
important agricultural country before
IN THIS ISSUE:
the war,is still eating relatively well,
EUROPE'S DIMINISHING FOOD SUPPLY
1
although it has to feed an army of oc-
SHELLS WITHOUT CASES
cupation and large numbers of Nazi sol-
5
diers sent for rest and recuperation.
"THE FORECAST* IS NOT A "PREDICTION"
8
In Belgium, a highly industrialized
WAR PROGRESS NOTES
9
country, there are serious food deficits,
owing partially to German confiscation
FIVE-STAR FINAL
9
of considerable amounts of meats and
KEY STATISTICS OF THE WEEK
9
vegetables. The Germans see to it,
ECONOMIC TRENDS
however, that those employed in facto-
10,12
ries working on German orders get more
CONTRASTS IN PRODUCTION (CHART)
11
than the scanty normal rations.
STRIKES IN ALL INDUSTRIES (CHART)
13
Among Scandinavian countries, Norway
and Finland have been hardest hit. In
PRODUCTION PROGRESS (CHARTS)
14-16
Norway the official rations, as in other
14 CONFIDENTIAL
WAR PROGRESS
WAR CONSTRUCTION- Financial Summary
50
50
40
40
30
30
BILLION DOLLARS
PROGRAM
( Appropriotions and Net Authorizations)
BILLION DOLLARS
20
20
CONTRACT
AND OTHER
COMMITMENTS
10
IO
VALUE OF PRODUCTION
0
o
J A S o N D J F M A M J J A S 0 N D J F M A M J J A S o N D
1940
1941
1942
WAR PROGRESS
OCTOBER 2, 1942
CONFIDENTIAL 3
HITLER TAKES CHARGE OF EUROPE'S CUPBOARD
Input of food is graded according to output, as rations are related to workers' needs.
France fores better than Italy.
200
200
Breod
150
Very Heavy
150
Worker
Heavy Worker
100
Normal
100
Consumer
50
50
o
o
Germony
Italy
Netherlonds
France
U.S.*
Belgium
Finland
Hungory
Norway
Sweden
40
40
Meats
OUNCES PER WEEK
30
30
20
20
OUNCES PER WEEK
10
10
N.A.
NIL
o
o
Germany
Holy
Netherlands
France
U.S.*
Belgium
Finlond
Hungory
Norway
Sweden
20
20
Fots
15
15
10
10
5
5
0
0
Germony
Italy
Netherlonds
France
U.S.*
Belgium
Finland
Hungory
Norway
Sweden
# Per capita. n.a.Not Avoilable
WAR PROGRESS
GERMANY RATIONS WORKERS ON THE BASIS OF ENERGY RE-
STUFFS IS LOWER THAN GERMANY'S, BUT THAT IS A MAT-
QUIRED FOR JOBS AND SEES TO IT THAT WORKERS IN OC-
TER OF CHOICE. THE U. S. DIET IS FAR BETTER BAL-
CUPIED COUNTRIES GET ENOUGH FOOD TO KEEP THEM PRO-
ANCED THAN EUROPE'S. (HITLER HAS RECENTLY PROMISED
DUCING. NOTE THAT U. S. BAR IN CHART IS ON A PER
TO RAISE BREAD AND MEAT RATIONS BUT THIS HAS NOT
CAPITA BASIS. AMERICA'S PER CAPITA SUPPLY OF BREAD-
BEEN PUT INTO EFFECT AS YET.)
4 CONFIDENTIAL
WAR PROGRESS
countries, are meager enough, but often
disappeared entirely, and the flour is
not even these are purchasable, and the
very poor.
black market provides the only possi-
The position of Finland is the worst
bility of buying food. Most of the
among Axis allies. In 1941 the wheat
available fish--a major item in the
and rye crop was down 25%, the potato
normal diet--is reserved for the occu-
crop 43%, the feed-grain crop 33%, and
pation troops; cheese and butter have
hay 50%. By March, 1942, the number of
ONE-FOURTH OF A WORLD, ILL-FED
The Continental diet ranges from near-famine to subsistence.
Subsistence
Bore Subsistence:
Neor-Famine
SWEDEN
FINLAND
NORWAY
EST
DENMARK
LATVIA
LITH
GREAT
BRITAIN
U.S.S.R.
PRUSSIA
NETH
BEL
GERMANY
POLAND
CZECHOSLOVAKIA
FRANCE
SWITZ
AUSTRIA
HUNGARY
RUMANIA
YUGOSLAVIA
SPAIN
BULGARIA
ALBANIA
GREECE
WAR PROGRESS
THIS MAP ATTEMPTS TO EVALUATE THE FOOD SUPPLIES OF
WAR, ARE NOW IN BAD SHAPE. FINLAND, OCCUPIED RUS-
CONTINENTAL EUROPE. GERMANY AND THE ANSCHLUSS
SIA, NORWAY, POLAND, BELGIUM, AND GREECE ARE PUT
COUNTRIES-AUSTRIA, CZECHOSLOVAKIA, AND DENMARK-
IN THE NEAR-FAMINE CLASS. QUALITATIVELY, THOUGH
FARE FAIRLY WELL. BUT HOLLAND, FRANCE, ITALY, AND
NOT QUANTITATIVELY, SWEDEN'S FOOD SITUATION IS SU-
THE BALKANS, HARDER HIT BY THE DISLOCATIONS OF
PERIOR TO GERMANY'S.
OCTOBER 2, 1942
CONFIDENTIAL
5
cows had declined by 25%, thus under-
sition has deteriorated because of poor
mining the important Finnish dairy in-
crops in 1940 and 1941 and the dwindling
dustry. Imports of foodstuffs from the
of imports. Large stockpiles of grain
usual sources--chiefly other Scandina-
and feedstuffs cushioned the impact un-
vian countries and Russia-were almost
til this year, but only a good harvest
entirely cut off. As a result, Finland
will raise the Swedish diet--now, as
relies on Germany for food supplies in-
official rations show, somewhat lower
stead of contributing to it.
in quantity but higher in quality than
In the Balkans, bad weather, draft-
Germany's.
ing of peasants into Axis armies, and
continual fighting have cut down the
SPAIN'S PLIGHT
Axis' usual large food haul. Last year,
Portugal still gets some supplies
the wheat, rye, barley, and oat crops
from overseas, but the Portuguese menu
were about 7% below normal; and this
is not up to prewar standards. Spain,
year about 10% to 15% less acreage was
since its Civil War, has suffered griev-
planted. The people of the Balkans are
ously. Grains and livestock supplies
feeling the war sharply. Rumanians and
are low, despite imports from Argentine
Bulgarians eat scantily (chart, page 4),
and Portugal. The Germans, too, take
and parts of Yugoslavia are on the verge
out some food from the country. And
of starvation.
here, as elsewhere, the farmers hoard
their crops and the black market deprives
GREEKS STARVING
many poor people of even their official
In Greece, the loss of grain-produc-
rations.
ing regions to Axis countries, havoc of
war, and exactions of the occupying
armies have brought the nation to a state
Shells without Cases
of famine. Ration allowances have been
steadily reduced, until normal consumers
Production of fuses outruns cartridge cases
get about 28 ounces of bread a week
while inventories of components pile up.
(compared with 122 before the war). But
Meantime, finished rounds of ammuni-
even this is not available for days at
tion log behind schedule.
a time. People are dying from hunger
MOST FREQUENTLY CITED EXAMPLE of pro-
on the streets of Athens, and the few
duction maladjustment or imbalance is
grain ships which do reach the country
ammunition. Typical case is faster pro-
through the International Red Cross
duction of fuses than of cartridge cases.
scarcely alleviate the situation. About
Consider what has happened since Pearl
700,000 persons--one-seventhof the en-
Harbor.
tire population--get their only warm
Production of projectiles and fuses
meal each day at the soup kitchens.
for 20mm. to 105mm. ammunition has out-
Greece's hope is that the Axis will sup-
run cartridge cases, with the result
ply seed and planting facilities to en-
that today some $155,000,000 of steel,
able the country to produce sufficient
copper, aluminum, man-hours, and wear
food to keep the people alive.
and tear on machinery are tied up in
The neutral countries, except Spain,
unused components-waiting for cartridge
are among the best fed in Europe, though
cases. And the relationship is getting
living only at, or near, bare subsistence
worse, not better.
levels. Sweden's favorable prewar po-
Between now and the end of the year,
6 CONFIDENTIAL
WAR PROGRESS
X PROJECTILES + y FUSES + z CARTRIDGE CASES =
The situation since Pearl Harbor in 20mm to 105mm ammunition:
I. We've produced this volume of projectiles, fuses, and cartridge coses:
155
I64
114
PROJECTILES*
FUSES
*
CARTRIDGE CASES' *
2. This volume of projectiles, fuses, and cortridge cases has gone into finished rounds
100
100
100
PROJECTILES
FUSES*
CARTRIDGE CASES*
3. Result: Inventories of projectiles, fuses, and cartridge cases have been built up like this:
Inventory
14
55
64
Finished Rounds
Finished Rounds
Finished Rounds
PROJECTILES
*
FUSES
*
CARTRIDGE CASES #
# Weighted index of production of ammur ition components; complete rounds # 100.
WAR PROGRESS
OCTOBER 2, 1942
CONFIDENTIAL 7
PRODUCTION IMBALANCE AND TIED-UP RAW MATERIALS
And schedules covering the last four months of the year are even more askew.
4. This volume of projectiles, fuses, and cartridge coses is planned:
188
153
77
PROJECTILES
*
FUSES
CARTRIDGE CASES*
5. This volume is scheduled to go into finished rounds:
100
100
100
PROJECTILES *
FUSES
*
CARTRIDGE CASES*
6. And here is the year-end inventory (note the deficit in cartridge cases!) :
Inventory
53
88
23 Deficit
Finished Rounds
Finished Rounds
PROJECTILES
*
FUSES
CARTRIDGE CASES #
. Weighted index of production of ammunition components; complete rounds . 100.
WAR PROGRESS
8
CONFIDENTIAL
WAR PROGRESS
"THE FORECAST" IS NOT A "PREDICTION"
MUNITIONS PRODUCTION in August (WP-
ambitious. They represent the sched-
Septl1'42,pl) ran true to form. New
ules laid out by the various procure-
highs were reached, but actual output
ment agencies--Army, Navy, Joint Air-
--at $3,141,000,000--ran 14% behind
craft Committee, and Maritime Commis-
the first-of-the-month forecast. This
sion. And they seem to be considerably
accords with past performance. As War
more than the nation's plant, materi-
Progress noted three weeks ago, "plan-
als, and manpower capacity are up to.
ning eyes have been bigger than our
If forecasts were low in one or
production stomach."
two items, it might be assumed that
This is graphically indicated in
this or that particular production
the series of aircraft charts in this
performance was out of line; but since
week's issue. On page 14, for in-
forecasts generally are above actual
stance, the August forecast called
results, it must be assumed that it
for $332,000,000 of combat planes;
is they that are out of line. Thus,
but actual output was $286,000,000, a
forecasts-as now made up-cannot be
14% shortage. Similarly with other
regarded as realistic predictions of
aircraft items-service planes, arma-
what is apt to happen In a rough
ment, ammunition, etc.
way, they indicate the trend of our
Apparently our forecasts are too
production, not the level.
production schedules call for still
semi-armor-piercing projectiles ran to
faster deliveries of projectiles and
51% of what had gone into completed
fuses than of cartridge cases--so much
rounds; the 105mm. H.E. howitzer pro-
so, indeed, that an actual inventory
jectile inventory was 67% of input.
deficit in cartridge cases is indicated;
These two items alone accounted for al-
that is, we will produce fewer cartridge
most 40% of the dollar value of total
cases than completed rounds called for
projectile production during the first
in the schedule.
eight months this year.
Without exception, fuses were way
EXCESS INVENTORIES
ahead of schedule.
in the first eight months of this
In contrast, most cartridge cases
year, out of "ry 10 projectiles pro-
are loaded as they come off the produc-
duced, six went to finished rounds,
tion line, with two notable exceptions:
four into inventory. And for every
Output of the 105mm. shell cases ran
three fuses inserted in rounds, two more
24% ahead of loadings on August 31, and
went to the stockpile. Cartridge-case
output of 37mm. antiaircraft shell cases
stocks on August 31, on the other hand,
was 44% ahead of loadings.
amounted to only 14% of those used .in
completed rounds, scarcely more than a
THE ALTERNATIVES
normal inventory (i.e., necessarily in
To bring about production balance,
transit or in pipelines of production).
either we must step up cartridge-case
Practically all types of projectiles
deliveries or cut down on output of fuses
show large inventories. On August 31,
and projectiles. Though the latter would
inventories of 75mm. armor-piercing and
correct production imbalance, it would
OCTOBER 2, 1942
CONFIDENTIAL
9
mean abandonment of our ammunition fore-
casts and objectives.
FINAL
The Army is well aware of this prob-
THE UNITED STATES produced more than
lem and already is setting up controls
1,000,000 tons of merchant ships in
to obtain closer balance.
September and broke a world's record.
According to preliminary figures, 93
War Progress Notes
ships were delivered; this was 37%
over August's 68 ships and 5% above
the September forecast. The ships
OIL FOR EASTERN FURNACES
totaled 1,016,000 deadweight tons,
A YEAR AGO, the Eastern Seaboard was
35% above the August tonnage and 11%
getting most of its oil by tanker; only
above the forecast. No country here-
7% of the petroleum tank cars loaded
tofore has turned out a million tons
each week moved into the East. But now
of shipping in a single month.
that tankers are needed for overseas,
the East has become dependent on the
tank cars now moving between Midwest
tank car, and loadings are up corres-
points will be freed to carry additional
pondingly. Half of the tank cars loaded
oil into the East.
with petroleum products--27,851 out of
55,788 in the week ended September 26-
MANPOWER AND STATISTICS
now move across the Alleghenies (table,
FROM 20 TO 100 CABLES a day go from
below). And when gasoline rationing
Washington to London asking for hurry-
is extended to the rest of the country,
up statistical information. But fre-
KEY STATISTICS OF THE WEEK
Latest
Preceding
Month
6 Months
Year
Week
Week
Ago
Ago
Ago
War program - Checks paid(millions of dollars)
1,308
1,311
1,135
681
318
War bond sales (millions of dollars)
196
163
151
113
57
Commodity prices (August 1939 = 100)
28 Basic commodities
169.4
168.4
166.9
166.7
155.5
Controlled
161.2
161.3
161.4
162.0
155.0
Uncontrolled
190.0
186.2
181.1
178.9
155.8
Nonferrous metal scrap
115.8
115.8
118.3
132.5
133.2
Petroleum carloadings (no. of tank cars)
Total
55.788
54,644
55,234
54,056
47,032
Movement into East
27,851
28,557
27,442
15,743
3,135
Exports (no. of freight cars unloaded for export Friday)
Atlantic Coast ports
1,354
1,569
1,635
1,947
1,690
Gulf Coast ports
271
323
320
470
282
Pacific Coast ports
829
818
724
407
175
Strikes affecting the war effort
Number in progress
13
11
18
n.a.
n.a.
Man days lost
18,674
24,706
31,628
n.a.
n.a.
Unused steel capacity (% operations below capacity)
2.7
3.8
2.4
1.2
3.1
10
CONFIDENTIAL
WAR PROGRESS
ECONOMIC TRENDS
Production-Labor Disputes - Employment
Same
Same
Latest
Preceding
2 Months
6 Months
Year
Month
Month
Month*
Month
Ago
Ago
Ago
1939
1937
PRODUCTION (1935-39 = 100)
Industrial production-total
p186
181
177
167
163
106
119
Durable Manufactures
p257
252
245
220
199
105
131
Iron and steel
196
200
196
193
185
110
142
Pig iron
190
192
193
189
182
113
153
Aircraft
p2,728
2,542
2,374
1,872
1,113
190
105
Railroad cars
p265
264
284
304
236
75
170
Locomotives
p493
492
487
438
306
103
199
Shipbuilding - private yards
pl,887
1,718
1,537
1,040
485
126
112
Copper smelting
160
153
170
141
135
all3
145
Zinc smelting
178
177
180
189
175
95
112
Zinc shipments
132
139
143
151
143
99
115
Lead shipments
186
193
202
198
200
96
115
Nondurable manufactures
p144
139
136
138
142
110
109
Cane sugar meltings
78
69
73
88
117
120
126
Rubber products
D75
75
72
89
133
112
94
Rubber consumption
83
77
61
102
156
107
100
Minerals
p138
132
132
125
135
94
120
Copper production
175
165
181
160
152
al16
152
Zinc production
132
138
143
138
125
90
105
Lead production
127
134
128
131
110
95
118
Government (1939 = 100)
Mfg. in gov't arsenals and
quartermaster depots
2,185
2,003
2,003
1,639
1,178
95
n.s.
Shipbuilding-g yards
1,878
1,757
1,757
1,272
771
105
n.a.
LABOR DISPUTES
All industries
Number of strikes in progress
475
520
440
245
698
448
746
Workers involved (thousands)
100
100
117
63
305
119
239
Man-days idle (thousands)
450
450
550
353
1,825
1,101
2,270
Strikes affecting the war effort
Number in progress
229
222
192
57
n.a.
n.a.
n.a.
Workers involved (thousands)
79
81
85
23
n.a.
n.a.
n.s.
Man-days idle (thousands)
266
234
255
119
n.a.
n.a.
n.a.
EMPLOYMENT (thousands)
Nonagricultural-total
p37.789
37.234
36,665
35,062
35.457
29,955
30,920
Manufacturing-total
p14,978
14,641
14,302
13,693
13.337
10,117
11,175
Durable goods
p8,298
8,082
7,880
7,244
6,789
4,290
5,220
Nondurable goods
p6,680
6.559
6,422
6,449
6,548
5,827
5,955
Construction
p2,131
2,108
1,991
1,594
2,173
1,587
1,360
All other
p20,680
20,485
20,372
19.775
19,947
18,251
18,385
"Angust, except the following production indexes, which are for July: Lead shipments, cane sugar meltings, rubber
consumption, sinc production, lead production, and government production. a Average for 1939. n.a. Not available.
P Preliminary.
OCTOBER 2, 1942
CONFIDENTIAL II
quently replies don't come back for
metal furniture, electric fans and irons,
weeks. The war's demand for men has
or radio receiving sets are being made
cut downBritain's home-front supply of
for civilian use; but Montgomery Ward's
statisticians and accountants.
catalog offers such items for sale.
Among curiosities revealed by the
BELT-TIGHTENING
catalog: A priority is necessary to buy
EVIDENTLY, real civilian belt-tighten-
an electric motor, but none is needed
ing is still some months off. No more
for certain items having electric motors
CONTRASTS IN PRODUCTION
War booms aircraft, iron and steel, machinery, etc., depresses rubber, silk, gold, silver
3000
250
2500
2000
200
1500
Iron and Steel
Aircraft
1000
150
Shipbullding
Nonferrous Metals
500
o
100
1940
1941
1942
1940
1941
1942
400
200
UNADJUSTED INDEX, 1935-39-100
Railrood Equipment
Rubber Products
300
150
Machinery
200
Gosoline Production
100
100
UNADJUSTED INDEX, 100 1935-39-100
o
50
1940
1941
1942
1940
1941
1942
150
175
Cone Sugar Meltings
125
150
Gold
100
125
75
Silk Deliveries
Silver
100
50
75
25
o
50
1940
1941
1942
1940
1941
1942
WAR PROGRESS
BUSINESS NEVER MOVES IN UNISON. SOME INDUSTRIES,
PACIFIC, SUCH AS RUBBER AND SILK. LACK OF SHIPPING
LIKE GOLD MINING, THRIVE ON BEAR MARKETS, AND THERE
HAS DEPRESSED SUGAR AND GASOLINE. PART ICULAR BOT-
ARE ALWAYS SOME THAT FALL OFF IN A BULL MARKET.
TLENECKS AFFECT OTHER BUSINESSES. BUT THE EMERGENCE
IN THIS WAR BOOM, THE FIRST AND HARDEST HIT WERE
OF THE GENERAL, UNBREAKABLE BOTT LENECK-LABOR-IS
INDUSTRIES DEPENDENT UPON SUPPLIES FROM THE WEST
SEEN IN GOLD AND SILVER.
12
CONFIDENTIAL
WAR PROGRESS
ECONOMIC TRENDS
Prices - Retail Sales - Transportation - Foreign Trade
Latest
Preceding
2 Months
6 Months
Year
Same
Same
Month
Month
Month
.
Month
Ago
Ago
Ago
1939
1937
COMMODITY PRICES (1926 = 100)
All commodities (wholesale prices)
p99.2
p98.7
p98.6
96.7
90.3
75.0
87.5
Farm products
106.1
105.3
104.4
101.3
87.4
61.0
86.4
Foods
100.8
99.2
99.3
94.6
87.2
67.2
86.7
All other than farm products
and foods
p95.6
p95.7
p95.6
94.9
90.8
80.1
86.1
Raw Materials
101.2
100.1
99.8
97.0
57.6
66.5
84.8
Semimanufactured goods
92.7
92.8
92.8
92.0
89.5
74.5
86.6
Manufactured goods
p98.9
p98.6
p98.6
97.0
91.5
79.1
89.0
Producers' goods (1929 - 100)
105.3
105.1
105.8
103.5
96.1
79.7
95.9
Durable
106.8
108.8
106.8
106.1
104.1
94.6
102.0
Nondurable
104.0
103.6
104.9
101.1
89.9
67.4
91.4
Consumers goods (1929 = 100)
102.7
102.9
102.7
96.5
89.9
76.9
88.2
Durable
115.1
115.2
115.3
112.9
101.9
92.6
93.0
Nondurable
100.8
101.0
100.8
96.3
88.0
74.4
57.4
RETAIL SALES (million dollars)
Total
p4,679
4,428
4,506
3,842
4,718
3,399
3,442
Durable goods
D857
818
842
693
1,258
852
979
Nondurable goods
p3,823
3,610
3,663
3,149
3,459
2,547
2,464
TRANSPORTATION
Freight carloadings
(thousand cars weekly)
876
870
830
793
885
776
803
Less-than-carload
87
90
86
146
154
156
167
Miscellaneous
412
400
379
369
382
309
321
All other
377
380
365
278
349
311
315
FOREIGN TRADE (million dollars)
Exports-total
p610
525
696
653
330
236
265
Lend-Lease
a375
295
403
155
33
-
-
Other
p235
230
293
498
297
236
265
By countries
Canada
p100
97
110
128
74
40
47
Latin America
D63
58
76
140
70
50
51
United Kingdom
p208
168
185
187
103
36
34
U.S.S.R.
pll7
73
169
27
3
b
3
India, Australia, and Oceania
D37
56
63
25
11
9
11
China
D8
5
13
8
6
AS
5
All other
p77
67
80
138
63
96
114
Imports-total
p223
192
223
338
261
178
278
By countries
Canada
P51
46
52
57
47
26
38
Latin America
p106
78
87
123
82
E
68
All other
p66
68
84
158
132
108
172
*Commodity prices, August, except producers' goods and consumers' goods, which are July. Retail sales, August.
Transportation, September. Foreign trade, June. a Lend-lease exports were $397,000,000 in July and $423,000,000
in fugust. b Less than $500,000. P Preliminary.
AUGUST 14,1942
CONFIDENTIAL ... 15
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million dollars)
BREAKDOWN OF WAR CONSTRUCTION
WAR CONSTRUCTION, TOTAL (LAND, BLDGS., EQUIP.)
Program
8,461
15,567
P 32,117
25
P
602
P 2,591
Uncommitted balance
2,696
4,352
P 4,655
-
-
-
Contracts and other
commitments
5,765
11,215
P 27,462
P 2,439
P 3,057
n.a.
Value in place
2,505
5,810
P 11,735
P 1,217
P 1,244
n.a.
Value not in place b
3,260
5.405
P 15,727
-
-
-
INDUSTRIAL FACILITIES (LAND, BLDGS., EQUIP.)
Program
5,120
8,112
P 17,610
25
P
707
P
172
Contracts and other
commitments
2,865
6,318
P 16,697
P 1,047
P 1,592
n.a.
Value in place
960
2,800
p 5,990
P
629
P
615
n.a.
INDUSTRIAL FACILITIES, BUILDINGS ONLY
Program
1,607
3,137
n.a.
P
389
n.s.
n.a.
Value in place
575
1,753
P 3,165
P
260
P
278
n.a.
POSTS, DEPOTS, STATIONS
Program
2,849
6,063
P 13,115
O
P
-105
P
2,419
Contracts and other
commitments
2,625
4,381
P 9,890
P
1,317
P 1,390
n.a.
Value in place
1,430
2,670
P 5,179
P
545
p
580
n.a.
DEFENSE HOUSING
Program
492
1,392
p 1,392
0
P
0
P
0
Contracts and other
commitments
275
516
P
875
P
75
P
75
n.a.
Value in place
115
340
p
566
P
43
P
49
n.a.
BREAKDOWN OF
NON-MUNITIONS
NON-MUNITIONS, TOTAL
Program
3,834
11,299
P 18,170
0
P
257
P 11,709
Uncommitted balance
1,677
5,698
P 6,529
-
-
I
Commitments
2,157
5,601
P 11,641
P
624
P 2,099
n.a.
Checks issued by agencies b
1,752
3,823
P 7,038
P
595
P
720
n.a.
STOCKPILE
Program
983
2,399
P 2.713
0
P
0
P
o
Commitments
470
1,050
P 1,140
P
30
P
o
n.a.
Checks issued by agencies
192
488
P
1,011
P
102
P
100
n.a.
Graph appears on opposite page.
Table continued on following page.
For footnotes see Page 18.
OCTOBER 2, 1942
CONFIDENTIAL
13
--even items with detachable motors. A
women "back home" in such volume that
priority is necessary to buy a painter's
distributors fear possible shortages in
brush, but a power paint sprayer, com-
certain items by Christmas. In the in-
plete with electric motor and rubber
terests of "morale," post exchanges and
hose, can be bought without a priority.
ships' stores are copiously supplied
with all the toiletries and cosmetics,
COFFEE CANS FOR TANKS
despite production restrictions that
RECENT ELIMINATION of metal cans for
went into effect last summer. So if
packaging coffee will save around 130,-
your wife or sweetheart can't buy her
000 tons of steel, enough tobuild some
favorite lipstick or toilet water, the
3,600 medium tanks. Around 70% of all
chances are a friend in the Army, Navy,
coffee now crossing retail counters goes
or Marine Corps can.
into paper bags--four-fifths of it in
a specially designed unit that seals in
BUYING SHIFTS
essential oils; the other 30% is pack-
AS PREDICTED, consumers unable to buy
aged in glass containers.
durable goods are spending increasing
sums on nondurables. Sales of durable
TRY THE ARMY
goods stores in August were one-third
MEN IN THE armed services have been buy-
less than a year ago (table, page 12);
ing toiletries and cosmetics for the
nondurable goods store sales rose 11%.
STRIKES IN ALL INDUSTRIES
8000
8000
Bituminous
Cool Strike
6000
6000
Bituminous
Automobile
Cook Strike
MAN-DAYS IDLE THOUSANDS
Strike
Steel Strikes
4000
4000
Captive Mine and
MAN-DAYS IDLE THOUSANDS
Sympothy Strikes
2000
2000
Strikes Affecting
the War Effort
0
o
1937
1938
1939
1940
1941
1942
WAR PROGRESS
THERE WERE MORE STRIKES AND MORE STRIKERS IN THE
YEARS EARLIER. BUT QUICK DENUNCIATION OF "OUT LAW"
FIRST EIGHT MONTHS OF THIS YEAR THAN IN THE FIRST
STRIKES BY UNION LEADERS, QUICK ACCEPTANCE OF LABOR
EIGHT MONTHS OF 1940, WHEN THE U. S. WAS AT PEACE
BOARD DECISIONS, AND-IN A FEW CASES-ARMY SEIZURE
-2,88% STRIKES INVOLVING 600,000 WORKERS, COMPARED
OF PLANTS KEPT THE STRIKES SHORT. RESULT: FEWER
WITH 2,604 STRIKES INVOLVING 481,000 WORKERS TWO
MAN-DAYS WERE LOST THAN IN ANY OTHER RECENT YEAR.
14 CONFIDENTIAL
WAR PROGRESS
PRODUCTION PROGRESS
Aircraft and Aircraft Munitions
Aircraft and Aircraft Munitions
Total Planes
Combat, Service, and Trainer
2500
1200
1942-43 Objective
1942-43 Objective
$ 45.5 Billion
$ 22.6 Billion
1000
2000
Deficit
Deficit
800
1500
1942-43 Forecost
1942-43 Forecast
$ 38.0 Billion
$ 17.6 Billion
Forecost
Forecost
600
1000
400
Actual
Actual
500
200
o
o
1942
1943
1942
1943
MILLIONS OF DOLLARS
Combat Planes
Service Planes
1000
80
1942-43 Objective
1942-43 Objective
$ 19.0 Billion
$ 2.4 Billion
800
Deficit
Deficit
60
MILLIONS OF DOLLARS
Forecost
600
1942-43 Forecost
1942-43 Forecost
$ 15.0 Billion
Forecost
$ 1.4 Billion
40
400
VALUE DELIVERED
Actual
20
200
Actual
VALUE DELIVERED
o
0
1942
1943
1942
1943
Trainers
Gliders and Lighter-than- Air Craft
100
80
1942-43 Objective
1942-43 Objective
$1.2 Billion
$.74 Billion
80
Deficit
60
1942-43 Forecost
$ 1.2 Billion
60
1942-43 Forecost
$ 46 Billion
Forecost
40
40
Forecost
Actual
20
20
Actual
=
0
0
1942
1943
1942
1943
Based on schedules of procurement agencies
WAR PROGRESS
OCTOBER 2, 1942
CONFIDENTIAL 15
PRODUCTION PROGRESS
Aircraft and Aircraft Munitions (Continued)
Spare Engines, Propellers, Parts
Aircraft Ordnance - - Total
600
250
1942-43 Objective
1942-43 Objective
$12.9 Billion
13.8 Billion
500
Deficit
200
Deficit
400
1942-43 Forecost
Forecost"
1942-43 Forecost
150
$10.1 Billion
$3.7 Billion
300
Forecost*
100
200
Actual
Actual
50
100
0
0
1942
1943
1942
1943
MILLIONS OF DOLLARS
Aircraft Armament
Aircraft Ammunition
50
200
1942-43 Objective
$2.8 Billion
MILLIONS OF DOLLARS
40
Forecost
150
Excess
Forecost
30
1942-43 Forecost
1942-43 Objective
$2.9 Billion
4,95 Billion
-
100
Actual
20
Deficit
VALUE DELIVERED
1942-43 Forecost
50
10
$.83 Billion
Actual
VALUE DELIVERED
0
o
1942
1943
1942
1943
Aircraft and Airbase Equipment
Aircraft Maintenance and Operation'
Including Signal Equipment
350
100
1942-43 Objective
1942-43 Objective
$3.6 Billion
$1.8 Billion
300
Excess
80
Forecost
250
1942-43 Forecast
Forecost
$1.8 Billion
1942-43 Forecast
60
200
$4.5 Billion
150
40
100
Actual
Actual
20
50
o
o
1942
1943
1942
1943
*Based on schedules of procurement agencies
I Based on checks issued
WAR PROGRESS
16 CONFIDENTIAL
WAR PROGRESS
PRODUCTION PROGRESS
War Construction
Total War Construction
Industrial Facilities
2000
1000
800
1500
Forecost
600
Actual
1000
Actual
Forecast
400
500
200
o
0
1942
1943
1942
1943
Aircraft Fields and Boses
Troop Housing
600
600
VALUE PUT IN PLACE - MILLIONS OF DOLLARS
500
500
400
400
300
300
.
Forecast
Forecost
200
200
Actual
Actual
VALUE PUT IN PLACE - MILLIONS OF DOLLARS
100
100
o
0
1942
1943
1942
1943
Defense Housing
All Other Nonindustrial Construction
100
600
500
80
Forecost
400
60
300
Actual
40
Forecast
200
Actual
20
100
o
0
1942
1943
1942
1943
.
Bosed on schedules of procurement agencies
WAR PROGRESS
The Indust
WAR PROGRESS
Confidential
(British Secret)
X s
$
ST - MAR 210 1973
Building the Navy
September War Output
Scorecard on Merchant Shipping
Cutting the Metals Pies
Number 108
October 9, 1942
CONFIDENTIAL
NUMBER 108
WAR PROGRESS
OCTOBER 9, 1942
The Biggest Navy Grows Bigger
Construction of combat ships outpaces losses, 250,000 tons. The British fleet before
and tonnage since Pearl Harbor is up one-
Pearl Harbor was about 1,370,000 tons.
third Shortages of men and materials
On the basis of current plans for
and low plant utilization slow program.
combat ships, the size of the Navy will
more than quadruple (not allowing for
THE ANNOUNCED LOSSES of U. S. combat
sinkings and transfers to other nations).
ships now amount to about 125,000 tons.
Schedules call for the addition of an-
But naval construction since Pearl Har-
other 6,000,000 tons, bringing the total
bor more than offsets this damage (chart,
projected combat tonnage by 1946 to
page 3).
And today the combat fleet
about 8,000,000, exclusive of converted
is not only the biggest in the world,
vessels.
but also bigger than ever.
Through August, 8% of the authorized
tonnage of combat vessels had been de-
NAVY SCHEDULED TO QUADRUPLE
livered, another 6% had been launched
It aggregates more than 1,750,000
and 14% more is on the ways. But for
tons, about one-third larger than in
over two-thirds of the combat vessels,
the summer of 1940, when the big naval
the keels have not been laid. That's
construction program really got under
primarily because the program has been
way just after the fall of France. It
greatly expanded in the last few months.
compares with a pre-Pearl Harbor Japan-
The importance of the airplane car-
ese fleet of 990,000 tons. Losses since
rier has been accentuated. By sinking
then have brought the Japanese total the Prince of Wales and Repulse, the
down considerably, perhaps as much as
Japanese showed that heavy ships with-
THE NAVAL PROGRAM-1942-43
Work on ships is scheduled to rise into the middle of next year
800
800
VALUE PUT IN PLACE MILLIONS OF DOLLARS
600
600
Forecost
400
400
Actual
200
200
VALUE PUT IN PLACE MILLIONS OF DOLLARS
0
0
1942
1943
Based on production schedule 01 of August 1, 1942
WAR PROGRESS
2
CONFIDENTIAL
WAR PROGRESS
out adequate air protection are an easy
and (2) combating the submarine menace.
prey. The battles of the Coral Sea and
To save fast destroyers and cruisers
Midway, in which the opposing warships
from the job of convoying slow freight-
never came within firing range, also
ers, the 1,575-ton destroyer escort
emphasized the power of the aircraft
vessel has been designed and 866 are to
carrier.
be constructed (WP-Aug28'42,p4). This
item alone accounts for almost half the
CARRIERS, SUBS, SMALL CRAFT
minor combat vessel tonnage. Over 100
As a result, plans for five battle-
units of a new type of ship, the aux-
ships of 60,500 tons each and four large
iliary aircraft carrier, are also on
cruisers of 27,000 tons each were in-
order. And demands for ships equipped
definitely postponed, and the number of
with listening devices and depth charges
aircraft carriers was increased by over
have increased many fold.
150%. It takes about 40 months to build
a 60,000-ton battleship, only half that
TOTAL CONSTRUCTION BEHIND FORECASTS
to construct acarrier (WP-June19'42,p1)
Construction of major combat vessels
A 225% increase in heavy cruisers
has made the most progress. The Navy
also offset the drop in battleship and
has had little difficulty in meeting
large-cruiser plans. In addition, sched-
the schedules for battleships, cruisers,
ules called for the tripling of sub-
carriers, destroyers, and submarines.
marine units, and building of almost
But in the last few months, total vol-
10,000 landing vessels. (Only about
ume of work completed (as measured by
1,700 landing vessels were on order be-
value in place) has fallen behind fore-
fore Pearl Harbor.)
casts. Through August, 410,000 tons,
Other changes in the naval program
or 11%, had been delivered and put into
since our entry into the war largely
service; another 324,000 tons were
reflect the need of (1) convoying ships
launched; and keels were laid for 711,000
tons more. Some 2,264,000 tons or 61%
were still in the pre-keel laying stage.
IN THIS ISSUE:
MINOR COMBAT VESSELS
The minor combat vessel program--
THE BIGGEST NAVY GETS BIGGER
1.
especially the antisubmarine types--has
FOURTH, AND CRUCIAL, QUARTER FOR PRP
5
been slower, partly because precedence
CLAMPING DOWN ON CIVILIAN PRODUCTION
8
was given to the landing craft program
PRODUCTION SPOTTY IN SEPTEMBER
9
in allocating materials. Pre-Pearl
SCORECARD ON MERCHANT SHIPPING
10
Harbor forecasts have not been met.
CARRYING COALS TO NEWCASTLE
11
Through August, only 109,000 tons, or
RAIL TRAFFIC PEAK FLATTENS OUT (CHART)
13
4% of the entire program, had been com-
WAR PROGRESS NOTES
14
pleted; 3% of the tonnage had been launched
KEY STATISTICS OF THE WEEK
14
and another 7% was in the keel-laid
FARM PRICES LEAD THE REST (CHART)
15
stage, while 86% had not yet been start-
WHERE THE PAYROLLS GO (CHART)
16
ed. However, completion of minor com-
ECONOMIC TRENDS
17,18
bat vessels is due to rise sharply.
RETAIL INVENTORIES PAST PEAK (CHART)
18
Forecasts call for delivery of some 500
PRODUCTION PROGRESS (CHARTS)
19,20
ships in the last four months of 1942--
more than the total delivered in the
OCTOBER 9, 1942
CONFIDENTIAL
3
NAVAL CONSTRUCTION OUTPACES SINKINGS
Announced losses far below additions to combat fleet so far this year.
Battleships, Cruisers, Corriers
Destroyers and Submarines
150
150
100
100
50
50
o
0
Construction
Construction
Sinkings
Net
Construction
Construction
Sinkings
Net
July I, 1940
1st 8 mos.
Through
additions
July I, 1940
Ist 8 mos.
Through
additions
Through 1941
1942
Aug.
to fleet
Through1941
1942
Aug.
to fleet
Minor Combat Vessels
Auxiliaries
120
120
THOUSANDS OF DISPLACEMENT TONS
80
80
40
40
THOUSANDS OF DISPLACEMENT TONS
0
0
Construction Construction Sinkings
Net
Construction Construction Sinkings
Net
July I, 1940
1st 8 mos.
Through
odditions
July
I,
1940
1st 8 mos.
Through
additions
Through 1941
1942
July
to fleet
Through 1941
1942
July
to fleet
Landing Vessels
Total
40
600
30
400
20
200
10
o
0
0
Construction Construction Sinkings
Net
Construction
Construction
Sinkings
Net
July 1, 1940
Ist B mos.
Through
additions
July 1,1940
lst 8 mos.
Through
odditions
Through 1941
1942
Aug.
to fleet
Through 1941 1942
Aug.
to fleet
Note: Figures do not include converted ships and do not toke into occount tronsfers to other notions.
WAR PROGRESS
NAVAL CONSTRUCTION IN THE FIRST EIGHT MONTHS OF
95,000 TONS CUT NET GAINS BELOW THAT OF DESTROYERS
1942 WAS TWO AND A HALF TIMES ANNOUNCED SINKINGS.
AND SUBMARINES. ANNOUNCED SINKINGS OF MINOR COMBAT
NET ADDITIONS TO THE FLEET SINCE JULY, 1940, WERE
VESSELS-SUBCHASERS, MINE VESSELS, MOSQUITO CRAFT,
542 000 TONS. BATTLESHIPS, CRUISERS, AND CARRIERS
ETC.-TOTALED ONLY 4,000 TONS, BUT CONSTRUCTION LAGS
LED IN TONNAGE COMPLETED-239.000-BUT LOSSES OF
KEPT NET ADDITIONS BELOW EXPECTATIONS.
4
CONFIDENTIAL
WAR PROGRESS
AMERICA'S PLANS FOR A FIVE-OCEAN NAVY
Size of combat fleet is slated to increase fourfold before end of 1946.
Batileships, Cruisers, Carriers
Destroyers and Submarines
4000
1800
1500
3000
1200
2000
900
600
1000
300
0
0
Fleet
Net Gain
Fleet
Fleet
Fleet
Net Goin
Fleet
Fleet
July 1, 1940
to Aug. I
Today
Dec. 31, 1946
July 1, 1940
to Aug.I
Today
Dec. 31, 1946
Minor Combat Vessels
Auxiliaries
THOUSANDS OF DISPLACEMENT TONS
3000
1200
900
2000
600
THOUSANDS OF DISPLACEMENT TONS
1000
300
0
0
Fleet
Net Goin
Fleet
Fleet
Fleet
Net Gain
Fleet
Fleet
July I, 1940
to Aug. I
Today
Dec. 31, 1946
July I, 1940
to Aug. I
Today
Dec. 31, 1946
Landing Vessels
Total
800
10000
8000
600
6000
400
4000
200
2000
o
o
855500
000000
o
Fleet
Net Gain
Fleet
Fleet
Fleet
Net Goin
Fleet
Fleet
July 1, 1940
to Aug. I
Today
Dec.31, 1946
July I, 1940
to Aug. I
Today
Dec. 31, 1946
Note: Figures do not include converted ships and do not take into occount transfers to other nations.
WAR PROGRESS
THE FIVE-OCEAN NAVY, WHEN COMPLETED, WILL HAVE BAL-
MAJOR COMBAT VESSELS-BATTLESHIPS, CRUISERS, CARRI-
ANCED OFFENSIVE AND DEFENSIVE POWER. CHIEF INCREASE
ERS, DESTROYERS, AND SUBMARINES-WILL TRIPLE AND
-2, 000%WILL BE IN MINOR COMBAT VESSELS USED FOR
THAT OF AUXILIARIES DOUBLE. LANDING VESSELS FORM
ANTISUBMARINE, CONVOY, AND PATROL WORK. TONNAGE OF_
A SMALL BUT SIGNIFICANT PART OF THE PROGRAM.
OCTOBER 9, 1942
CONFIDENTIAL
5
first eight months.
has been completed, 9% has been launched,
Although relatively few deliveries
and keels have been laid for 20%. Half
have been made, the landing-vessel pro-
the tonnage has not been started.
gram has managed to make somewhat better
Altogether, two-fifths of the fore-
progress in terms of meeting schedules.
cast for 1942 naval construction (in
This program had not been formulated
dollar value) was delivered in the first
until early thisyear. Through August,
eight months. But September deliveries
about 39,000 tons, or 6% of the program,
were about 50% greater (indollar value)
had been completed. Delivery of most
than August's, and deliveries are ex-
of the remainder is scheduled for next
pected to pick up speed in the next few
year.
months, reaching a peak in December, 1943.
The auxiliary ship schedule is nearer
However, scarcity of labor, shortages
completion than any other part of the
of raw materials and machinery, and
naval construction program. About one-
low plant utilization have slowed up
fifth of the authorized 762,000 tons
work. These are continuing problems.
Fourth, and Crucial, Quarter for PRP
Unlike three months ago, Requirements Com-
to Allocation
mittee sets firm industry-by- industry al-
Metal
to Request
locations of critical metals. Military items
Alloy steel products
80%
favored, civilian products cut.
Brass and bronze
77
Carbon steel products
72
UNDER THE PRODUCTION REQUIREMENTS PLAN
Stainless steel products
70°
for distributing critical metals, the
Zinc
70
Requirements Committee is charged with
Copper products
64
the responsibility of apportioning sup-
Aluminum
64 to 96
plies by industries. That responsibil-
Magnesium
100
ity the Requirements Committee did not
assume in the third quarter. Applica-
Manufacturers of military products
tions on PD-25A forms were processed be-
took the lightest cuts, ranging from
fore the committee acted.
13% in alloy steel to 20% in carbon steel
And because data were incomplete,
products; and the allotments for m²li-
the recommendations were liberal. Total
tary end products were greater, both in
allocations exceeded third-quarter sup-
volume and in percentage, than the ac-
plies by 10% to 15% (WP-July10'42,p5).
tual use in the second quarter (charts,
pages 6,7).
COPPER REQUESTS CUT 36%
Civilian type goods were cut severe-
This quarter, Requirements Committee
ly. For instance, carbon steel alloca-
recommendations hewed to the supply line
tion amounts to only 46% of requests in
and were issued in time to be effective.
the case of agricultural machinery; to
Cuts in requests run from zero in the
30% of requests for textile machinery; to
case of magnesium to 36% in copper prod-
25% of requests for metal bottle caps.
ucts. This the following table, showing
In brass and bronze, manufacturers of
percentage of allocations to requests,
food products machinery got only 41% of
indicates:
what they requested; lighting fixture
16 CONFIDENTIAL
WAR PROGRESS
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million
dollars)
BREAKDOWN OF NON-MUNITIONS (Continued)
AGRICULTURAL EXPORTS (LEND-LEASE)
Program
625
1,522
P 2,138
0
P
0
P
0
Commitments
66
561
P 1,143
P
65
P
149
n.a.
Checks issued by agencies
1
211
P
629
87
P
90
n.a.
PAY, SUBSISTENCE & TRAVEL 1
Army Military
Program
944
3,013
P
3,904
0
P
0
P
8,534
Commitments
934
2,030
P 3,849
P
281
P
285
n.a.
Checks issued
696
1,510
P
2.744
P
220
P
315
n.a.
Navy Military
Program
378
963
P
2,478
0
P
232
P
0
Commitments
334
610
P
1,143
P
110
P
104
n.n.
Checks issued
388
642
P
1,042
P
70
P
98
n.e.
Civilian Payroll
Program
32
247
P
299
0
P
46
p.
534
Commitments
32
140
P
255
P
15
P
20
n.a.
Checks issued
356
682
P
1,115
P
79
P
80
n.a.
MISCELLANEOUS NON-MUNITIONS
Program
872
3,155
P
6,638
o
p
-21
P
2,641
Commitments
321
1,210
P
4,111
P
123
p 1,541
n.a.
Checks issued by agencies
119
290
P
497
P
37
P
37
n.a.
P Preliminary
Table continued on following page.
For footnotes see Page 18.
V
6 CONFIDENTIAL
WAR PROGRESS
THE REQUIREMENTS COMMITEE CUTS THE METAL PIES -
Apportionment for military end items in fourth quarter greatly exceeds use in second quarter;
Alloy Steel Products
2nd Quarter Use
4th Quarter Allocation
04%
Other* 2,3%
17.3%
Indirect
Milltory and
Civilion Type
29.9%
65.0%
Products
Military End
173%
Products
2343
Intermediate
Products
1,075,000 short tons
1,839,923 short tons
Stainless Steel Products
2nd Quarter Use
4th Quarter Allocation
0.2%
0.3%
21.3%
29.2%
45.0%
58.2%
203%
25.5%
78,578,928 pounds
99,656,915 pounds
Carbon Steel Products
2nd Quarter Use
4th Quarter Allocation
15.8%
10.0%
2317
26.7%
374%
33.7%
27.4%
25.9%
11, 122,000 short tons
11,108,000 short tons
#
Maintenance, repoir, and construction of nonfobricating industries.
WAR PROGRESS
MOVEMENT OF METALS INTO MILITARY PRODUCTS IS BECOM-
WILL GO MAINLY INTO FIGHTING STUFF-ALLOY STEEL
ING INCREASINGLY PRONOUNCED. IN THE SECOND QUARTER
(65%) AND STAINLESS STEEL (58%). ALLOCATIONS FOR
ONLY ONE METAL GROUP-BRASS AND BRONZE-WAS USED
MILITARY AND INTERMEDIATE PRODUCTS LEAVE RELATIVELY
TO A GREATER EXTENT IN MILITARY THAN IN CIVILIAN-
SMALL SUPPLIES FOR CIVILIAN-TYPE PRODUCTS-12#5 OF
TYPE PRODUCTION. BUT THIS QUARTER TWO OTHER METALS
ALL ALLOCATED BRASS AND BRONZE, 20% EACH OF ALLOY
OCTOBER 9, 1942
CONFIDENTIAL
7
-AND ALLOTMENTS TO "FIGHTING STUFF" INCREASE SHARPLY
intermediate products bulk large, however.
Copper Products
2nd Quarter Use
4th Quarter Allocation
Other*
Indirect
Militory and
8.5%
Militory End
62%
12.9%
Civilian Type
Products
Products
8132%
20.3%
814.5%
65.4%
Intermediate
59.0%
Products
341,751,000 pounds
319,287,000 pounds
Bross and Bronze
2nd Quarter Use
4th Quarter Allocation
1.5%
2.8%
10.8%
3140%
15.0%
214%
61.8%
72.7%
836,991,000 pounds
1,118, 793,000 pounds
Zinc
2nd Quarter Use
4th Quarter Allocation
0.4%
04%
172%
38.2%
289%
42.7%
39.7%
32.5%
105,597,825 pounds
96,854,094 pounds
Maintenance, repair, and construction of nonfabricating industries.
WAR PROGRESS
STEEL, STAINLESS STEEL, AND COPPER PRODUCTS, AND
INDUSTRY TO WAR. HOW MUCH FURTHER WE SHALL HAVE TO
ABOUT 35% OF CARBON STEEL AND ZINC. AND, OF COURSE,
GO ON THAT ROAD WILL BE REFLECTED IN THE ALLOCA-
MANY CIVILIAN-TYPE PRODUCTS GO TO THE ARMED SERVICES.
TIONS FOR THE FIRST QUARTER, 1943, WHETHER OR NOT
THE INCREASING TREND OF METALS TOWARD MILITARY
PRP OR SOME OTHER MATERIALS CONTROL SYSTEM IS THEN
END PRODUCTS IS AN INDICATION OF THE CONVERSION OF
IN EFFECT.
8
CONFIDENTIAL
WAR PROGRESS
manufacturers were allocated 29% of re-
Allo-
Non-
quests, and producers of electric appli-
Products
cations
Exports
coverage
ances 18% of requests. And so it went
Magnesium.
100.0
No
set
limits
(table, below).
Aluminum.
90.0
-
10.0
In setting up allocations, the Re-
Steel:
quirements Committee sets aside reserves
Stainless
85.2
4.0
10.8
for exports and reserves for noncover-
Alloy
83.4
8.1
8.5
age. This last includes an allowance
Carbon
77.2
15.4
7.4
for metals used in construction, for
Copper
81.6
9.5
8.9
metals used by small businesses (users
Zinc
52.1
41.9
6.0
of less than $5,000 worth of metals per
*
Includes
copper
content of
brass,
quarter), and an allowance for emergen-
bronze, and copper products.
cy allotments and late-arriving appli-
cations. Fourth-quarter allotments were
Except for military end products, PRP
as follows:
processors willfollow Requirements Com-
Clamping Down on Civilian Production
WHAT PART OF CIVILIAN PRODUCTION is
are illustrated below.
Severe
as
essential? The answer to this ques-
these cuts are, they do not constitute
tion will vary at different stages of
the last word in fourth-quarter cur-
the war. But what is essential now--
tailment of civilian-type production.
in the fourth quarter of 1942-has
The Office of Operations will scruti-
been quite definitely indicated by
nize allocations, and, where it is
the Requirements Committee's alloca-
possible, make further curtailments
tion of metals to the producers of
or withdraw allocations altogether--
civilian-type goods.
The cuts made
just in case the requests have been
in the metal requests for such goods
unduly inflated.
% BY WHICH ALLOCATIONS WERE LOWER THAN REQUESTS
Carbon Alloy Stainless
Brass &
Steel
Steel
Steel
Copper
Bronze
Zinc
Metal bottle caps
75%
48%
90%
62%
46%
46%
Tin cans
51
42
84
34
36
36
Sheet metal work
61
62
80
69
60
60
Lighting fixtures
56
66
71
70
71
71
Electric appliances
70
50
30
82
82
82
Household refrigerators
87
100
|
90
90
90
Domestic laundry equipment
68
70
93
33
53
53
Metal office, mess furniture
72
52
90
51
50
50
Agricultural machinery
54
62
90
51
57
57
Oil field machinery equipment
50
57
70
53
45
45
Food products machinery
65
65
90
64
59
59
Textile machinery
70
73
90
80
72
72
OCTOBER 9, 1942
CONFIDENTIAL
9
mittee industry-by-industry allocations.
though the total quantity stays fixed.
Thus, the allocation of 85,000 tons of
Thus, in the fourth quarter, 4,152,000
carbon steel to manufacturers of inter-
tons of carbon steel are allotted to
nal combustion engines may not be in-
military end products. That total may
creased; however, one manufacturer may
not be raised, but at the request of the
get a smaller proportion of his request
armed services and the Maritime Commis-
than another, if his inventories are
sion, shifts may be made within end-
high.
product groups. Thus, steel allocated
In the case of military end products,
to tanks may be increased while steel
interindustry shifts can take place,
for guns may be decreased, or vice versa.
Production Spotty in September
Airplane production shows 10% gain in dollar
cast level, and 13% above the August
volume, less than 1% in units, but is for
rate. Most of the light tanks made good
below the forecast. Minor combat vessels
showings, as did scout cars and large
drop. Ordnance results are mixed.
personnel carriers.
Antiaircraft guns, generally, were
PRELIMINARY FIGURES on September muni-
up to or better than forecasts, though
tions output suggest a decidedly spotty
the important 90mm. mobile unit fell
performance. As might be expected,
21% short, failing for the first time
gains over August were general; but once
in many months to approach or exceed
again actual results fell far behind
expectations. The 105mm. howitzers were
forecasts for a majority of items. No
far below forecast, but the 75mm. tank
overall estimate of output was possible
gun ran 17% above. Small arms and in-
as War Progress went to press, but it
fantry weapons also ran generally be-
hardly seemed likely that the increase
low the forecasts. Aircraft armament
over August would run much above last
was for the most part up to schedule.
month's 6%.
Acceptances of airplanes were up
AMMUNITION, NAVAL SHIPS
less than 1% over August. Forecasts,
Ammunition for field, tank, andanti-
however, continued to climb sharply,
tank guns was loaded fairly close to
and physical output came to only 86% of
schedule. During September, several
the schedule. In dollar terms, the gain
types of rounds for heavy pieces--8-inch
over August was 10%. This reflects the
guns and 240mm. howitzers--were deliv-
increasing proportion of heavier and
ered for the first time. In most cases,
more expensive types of planes, espe-
loadings of aircraft ammunition exceeded
cially bombers.
forecasts.
Total deliveries of major combat ves-
M-4 TANKS
sels exceeded schedules and August ac-
Urdnance was marked by sharp ups and
tuals, but minor combat ships failed' to
downs. Most types of combat vehicles
keep pace either with forecasts or Aug-
were produced insatisfactory quantities,
ust deliveries. Fewer minesweepers,
even though a continuing shortage of
subchasers, and mosquito craft were
tracks wasa handicap. M-4 medium tank
turned over to the Navy than in August.
assemblies were just about atthe fore-
The same was true of naval auxiliaries
WAR PROGRESS
10 CONFIDENTIAL
SCORECARD ON MERCHANT SHIPPING
Construction of United Nations ships continues to rise. Sinkings drop sharply
in September, but later reports may cut indicated gain in tonnage.
2000
2000
Sinkings vs. Construction
1000
1000
Sinkings
Construction
0
0
+1000
+1000
Net Loss (or Gain) - Monthly
THOUSANDS OF DEADWEIGHT TONS
Gain
o
o
Loss
THOUSANDS OF DEADWEIGHT TONS
-1000
-1000
o
0
The Cumulative Deficit
2000
2000
4000
4000
6000
6000
8000
8000
10,000
10,000
1940
1941
1942
1943
WAR PROGRESS
ADDITIONAL SINKINGS REPORTS RECEIVED RECENTLY HAVE
GAIN NOW INDICATED CAN BE ENTIRELY WIPED OUT. THE
CONVERTED AN AUGUST GAIN IN MERCHANT SHIP TONNAGE
SEPTEMBER RISE IN CONSTRUCTION FROM 1,000,000 TO
INTO A LOSS. LOW SINKINGS INITIALLY REPORTED FOR
1,265,000 TONS IS A FIRM GAIN; AND IF SINKINGS AV-
SEPTEMBER ARE LIKELY TO GR OW SIMILARLY AS MORE NEWS
ERAGE NO HIGHER THAN IN THE PAST SIX MONTHS, THE
COMES IN. BUT IT IS UNLIKELY THAT THE BIG TONNAGE
MERCHANT FLEET WILL MORE THAN HOLD ITS OWN.
OCTOBER 9, 1942
CONFIDENTIAL
=
and of most types of landing craft.
As previously noted, deliveries of
Tank landing craft deliveries were sub-
merchant ships set a world's record in
stantially larger than the forecast,
September (WP-Oct2'42,p9). Fifteen
however, and were three times greater
more Liberty ships were delivered than
than inAugust. Large infantry landing
in August. Deliveries of badly needed
craft were delivered for the first time.
tankers were up from four to seven.
Carrying Coals to Newcastle
Crisscrossing of freight shipments wastes
by in October-one-third normal mileage.
materials and manpower both nationally
The WPB directives accounted for 170,-
and locally. How England and Germany
000 of these car-mile savings; the bal-
handle crosshaul problem.
ance was worked out by the industry it-
self. Top saving possible in these four
IN WARTIME, crosshauling is a luxury.
products is 400,000 car-miles per month.
The Germans eliminated it almost auto-
Some industries are honeycombed with
matically with their militarized economy
crosshaul patterns. Shipments of 55-
that put an end to free movement of con-
gallon steel drums are 15% crosshauled.
sumers' goods and appropriated the bulk
During March, April, and May of this
of the country's transportation facil-
year, 28,416 tons of these drums out of
ities for shipments to war fronts. Eng-
total shipments of 182,693 tons were con-
land resorted to zoning to cut out cross-
sidered crosshauled. In other words,
hauling, compellingall consuming areas
they went to or through zones where lo-
to draw supplies from producers near at
cal producers could amply supply the
hand and forbidding shippers to ship
receiver.
across zone lines. In this respect,
Beer is another case of crosshauling;
concentration of British industry helped
the nationally distributed brands fre-
simplify the problem.
quently move between two points at the
same time. For every Milwaukean who
BIG SAVINGS ALREADY
likes Ruppert's, there's a New Yorker
Precise studies of crosshauling are
who must have his Pabst (map, page 12).
still to be made in the United States,
Because they involve the return of empty
but preliminary soundings indicate that
bottles, beer shipments really amount to
overall savings of from 5% to 15% are
a double crosshaul.
possible. In sugar, for example, a re-
cent OPA order aiming to spread avail-
COAL CROSSHAULS TO BE CUT
able supplies by means of distribution
Major items of railroad freight-like
zones coincidentally eliminated 400,-
bituminous coal, iron and steel--are
000,000 ton-miles of rail crosshauling
subject to widespread crosshauling, as
per year-a saving of 16%.
yet of undetermined amount: In normal
Paper pulp offers another example of
times differences in grade and perform-
what can be done. WPB, working with
ance result in zigzag movements of bi-
actual orders of paper mills, has re-
tuminous coal, -but war needs may over-
directed them to nearer sources of sup-
ride considerations of optimum efficien-
ply in four grades of paper pulp and
cy in production in order to achieve
will save about 225,000 car-miles there-
optimum efficiency in transportation.
12
CONFIDENTIAL
WAR PROGRESS
BALLANTINE'S TO MILWAUKEE, PABST TO ST. LOUIS, BUDWEISER
TO NEW YORK - A study in crosshauling of beer.
Milwoukes
New York
St Louis
- PROGRESS
BEER IS RELATIVELY ONLY SMALL BEER IN THE TRANSPOR-
CROSSHAULING AND INVOLVES ALSO AN OUTSHIPMENT OF
TATION PICTURE. MORE IMPRESSIVE TONNAGE TOTALS, AND
91% WATER AND THE RETURN SHIPMENT OF EMPTY BOTTLES.
POSSIBLY MORE CROSSHAULING BOTH IN VOLUME AND IN
THE MAP ABOVE SHOWS HOW THREE BRANDS OF BEER-PABST
PERCENTAGE, CAN BE SHOWN FOR COAL, IRON AND STEEL,
(MILWAUKEE). BALLANTINE'S (NEWARK) AND ANHEUSER-
PETROLEUM, ETC. BUT BEER IS A PAT EXAMPLE OF PURE
BUSCH (ST. LOUIS)-SHIP INTO EACH OTHER'S BAILIWICKS.
The iron and steel industry is the big-
differentials are involved, but a num-
gest contributor of long hauls and prob-
ber of crosshauled branded consumers'
ably also of crosshauls on a tonnage
goods are identical in price as well as
basis--partly because of the basing-
type.
point system of pricing and old estab-
lished trade relationships. ODT charts
REDUCE LOCAL CROSSHAULS
of iron and steel movements suggest the
Crosshauling is a local problem, too.
possibility of reallocating orders among
By consolidating deliveries, Hartford,
rolling and finishing mills to bring the
Conn., milk truck mileage, for example,
actual consumer nearer the supplier.
could be cut more than 85%-from 5,000
There is considerable interpenetration
to 700 miles daily. In New York City,
of markets in this field.
it was found that by consolidating de-
A seasonal crosshaul situation exists
liveries of 12 department stores, 53
in oranges; Florida and California grow-
trucks would do the work of 100; mile-
ers compete for eastern markets between
age could be cut 60%, helpers 17%, and
October and May. In the case of this
stops 20%.
commodity, considerable price and quality
If the United States comes around to
OCTOBER 9, 1942
CONFIDENTIAL
13
concentration of industry (WP-Sepl8'42,
the consumers' goods field. Here "L"
p6) considerable curtailment of cross-
and "M" orders have curtailed output,
hauling would follow almost as a matter
thereby reducing the aggregate volume
of course-as in England, concentration
of waste railroad and truck motion,
would tend to zone production, hence
though not necessarily the percentage.
shipments. This applies especially to
Direct transportation allocations
RAIL TRAFFIC PEAK FLATTENS OUT
Freight car squeeze is avoided as total carloadings run below last year, due largely
to drop in L.C.L.
Total
Miscellaneous
1000
500
900
1942
400
1942
800
1941
1941
700
300
1939
WEEKLY FREIGHT CARLOADINGS-THOUSAND CARLOADS
600
1939
500
200
Jon. Feb. Mor. Apr. May June July Aug. Sept Oct Nov. Dec
Jon Feb. Mor. Apr. May June July Aug. Sept Oct. Nov. Dec.
Less-than-Carload Lots
All Other
175
400
1941
WEEKLY FREIGHT CARLOADINGS-THOUSAND CARLOADS
1942
150
300
1939
1941
125
1939
!942
200
100
75
100
Jon Feb. Moc Apc Moy June July Aug Sept. Oct. Nov. Dec.
Jon Feb. Moc Apr. May June July Aug. Sept Oct Nov. Dec.
WAR PROGRESS
U. S. RAILROADS GOT PAST THE FALL TRAFFIC PEAK LAST
TRACTIVE POWER THAN LAST YEAR. CHIEF REASON FOR
YEAR WITHOUT ANY ACUTE SQUEEZE, AND THIS YEAR THEIR
THE DROP IN NUMBER OF CARS LOADED IS THE LARGER
PROBLEM IS A LITTLE EASIER. FREIGHT CARLOADINGS IN
AMOUNT BEING CARRIED IN EACH L.C.L. CAR UNDER THE
RECENT WEEKS HAVE BEEN RUNNING SLIGHTLY LOWER THAN
ODT ORDER OF LAST SPRING, WHICH REQUIRED A STEPUP
A YEAR AGO: LAST WEEK, THEY WERE 1.1% LESS THAN IN
TO SIX, EIGHT, AND THEN TEN TONS MINIMUM LOAD.
THE LIKE WEEK OF 1941. TO HANDLE THE LOAD, THE
TIGHTER LOADING OF OTHER CARS AND ANTICIPATION OF
RAILROADS HAVE ABOUT 5% MORE CARRYING CAPACITY AND
COAL NEEDS HAVE ALSO HELPED FLATTEN THE AUTUMN PEAK.
14 CONFIDENTIAL
WAR PROGRESS
would out to the heart of the problem,
than it is today--if and as a central
but they would require intensive study
allocations board directs the flow of
of order books, and certainly are not on
materials to particular industries and
the docket as yet.
factories--transportation routes will
However, as centralized control over
unquestionably be taken into account and
raw materials develops into a finer art
crosshauling reduced considerably.
War Progress Notes
used under all conditions--because water.
AFTER DEHYDRATION, COMPRESSION
is not everywhere in adequate supply,
FOOD DEHYDRATION has been a great ship-
as in desert operations.
ping spacesaver. Now science is trying
to go a step farther-by compression of
MINES NEED MEN
dehydrated products. Problem istocom-
U. S. OUTPUT of several critical metals
press before foods are thoroughly de-
lags from 5% to 25% for lack of labor
hydrated and later to rehydrate. For
to mine them. Better-paying war jobs--
instance, powdered eggs have not been
and also the armed services-are pulling.
compressed because they cannot be re-
men outof themines. Adequate manpower.
hydrated satisfactorily. Dehydration
could increase copper production 5%,
of meat is being studied and 40 tons
molybdenum 16%, manganese 20%, zinc 20%,
have been produced as a sample. De-
and tungsten 25%.
hydrated and compressed foods cannot be
Incidentally, miners around Climax,
KEY STATISTICS OF THE WEEK
Latest
Preceding
Month
6 Months
Year
Week
Week
Ago
Ago
Ago
War program - Checks paid (millions of dollars)
1,253
1,308
1,254
690
335
War bond sales (millions of dollars)
243
196
167
126
67
Commodity prices (August 1939 = 100)
28 Basic commodities
169.9
169.4
167.5
167.2
155.3
Controlled
161.3
161.2
161.2
162.0
155.4
Uncontrolled
191.4
190.0
183.5
181.0
156.1
Nonferrous metal scrap
115.8
115.8
115.8
132.5
133.2
Petroleum carloadings (no. of tank cars)
Total
52,848
55,788
54,312
54,750
48,848
Movement into East
25,389
27,851
27,495
16,335
4,099
Exports (no. of freight cars unloaded for export Friday)
Atlantic Coast ports
1,317
1,354
1,612
1,823
1,687
Gulf Coast ports
304
271
287
434
Pacific Coast ports
423
787
829
626
306
243
Strikes affecting the war effort
Number in progress
7
13
24
Man-days lost
n.a.
n.a.
9,505
18,674
36,095
n.a.
n.a.
Unused steel capacity (X operations below capacity)
1.4
2,7
3.6
1.4
1.9
n.a. Not available
OCTOBER 9, 1942
CONFIDENTIAL 15
Col.-our leading molybdenum-produc-
ing region--have beenleaving their jobs
FARM PRICES LEAD THE REST
for higher-paying work atnearby Panda,
where the Army is building a camp for
They started lower and now they are
ski-troopers.
much higher; what's more, the trend
is still up.
STEEL PLATE SLIPS
no
110
STEEL PLATE SHIPMENTS in September to-
taled 1,062,000 tons, the second drop
100
in a row since October, 1941, when ship-
100
ments of 593,150 tons started a succes-
sion of monthly peaks. The trend this
90
Other than Form
90
year has been as follows:
1926=100
Products and Foods
1926*100
Approx. Shipments
80
80
Month
(thousands of tons)
All
January
755
Commodities
February
759
70
70
March
Foods
879
April
896
Form Products
May
1,021
60
60
June
1,051
1940
1941
1942
July
1,124
WAR PROGRESS
August
1,098
EVER SINCE PRICE CEILINGS WERE INSTITUTED IN MID-
September
1,062
MAY, PRICES OF INDUSTRIAL COMMODITIES, WHICH ARE
COMPLETELY CONTROLLED, HAVE BEEN STABLE. HOWEVER,
The dècline in August reflecteda
FARM PRODUCTS, LARGELY UNCONTROLLED, HAVE CONTINUED
TO RISE SHARPLY. THE EFFECT HAS BEEN NOT ONLY TO
flood which curtailed production at one
INCREASE THE COST OF LIVING (NOTE THE MOVEMENT OF
plant; September shipments were down
FOOD PRICES) BUT ALSO TO PUSH UP ALL COMMODITIES.
because of heating-furnace troubleat
another.
lieve our shortage. Australia's lead
deficit would be made up by shipments
from our growing government stockpile--
IF AT FIRST YOU DON'T SUCCEED
now around 225,000 tons, or some three
SARAN, ONE OF Dow Chemical's newer plas-
months' supply.
tics, has great tensile strength and re-
sistance to water. Considered as a pos-
RETAIL STOCKPILE
sible substitute for metal in cold-water
IN CONTRAST to lastyear, when the scram-
pipe, it was put to a test by WPB, which
ble to build up inventories continued
placed it near rats. The rodents made
through the summer, stocks of goods in
a meal of the first experiment.
distributors' hands have been declin-
ing. Wholesalers' stocks continued to
TRADING LEAD FOR ZINC
rise until February of this year, when
UNDER A PROPOSAL now being studied, Aus-
the combination of heavy stocking by
tralia--one of the largest zinc-lead
retailers and limitation of production
producers in the British Empire-would
on a long line of civilian goods finally
mine more zinc (at the expense of lead)
reversed the trend (chart and table,
and ship it to the United States to re-
page 18). By drawing on wholesalers,
AUGUST 14,1942
CONFIDENTIAL ... 17
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million
dollars)
d
BREAKDOWN OF
AGENCIES
UNITED STATES FINANCED WAR PROGRAM
Program
37,075
76,508
P 170,288
0
P 5,615
P 44,252
Uncommitted balance
9,274
23,979
P 40,290
-
-
-
Contracts and other
commitments
27,801
52,529
P 129,998
P
9,731
P 12,098
n.a.
Checks paid
6,431
15,251
P 34,510
3,880
P 4,123
P
4,794
U. S. ARMY
Program
13,134
31,981
P 84,468
0
P
0
P 42,090
Contracts and other
P 70,402
P
commitments
11,404
23,334
6,138
P 8,397
n.a.
Checks paid
3,636
7,889
15,649
1,497
1,662
n.a.
U. S. NAVY
Program
12,308
20,024
P 47,990
0
P 4,355
P
0
Contracts and other
commitments
11,182
16,327
P 32,325
P 1,971
P 2,361
n.a.
Checks paid
2,217
4,726
10,128
1,229
1,237
n.a.
LEND-LEASE
Program
7,000
12,985
P 18,410
0
P
0
P
o
Allocations
5,177
11,345
14,085
508
-281
n.a.
Contracts and other
commitments
2,458
6,282
10,665
305
484
n.a.
Checks paid
21
910
4,099
626
665
n.a.
U. S. MARITIME COMMISSION
Program
784
2,734
P 7,654
o
P 1,070
P
o
Contracts and other
commitments
886
1,724
P 6,333
608
P
631
n.a.
Checks paid (Net)e
44
156
642
93
114
n.a.
RFC AND SUBSIDIARIES
Program
2,623
5,130
P 7,704
0
P
0
P
0
Contracts and other
commitments
1,151
3,569
P 7,916
P
509
P
0
n.a.
Checks issued by RFC
350
956
P 2,510
327
P
300
P
300
OTHER U. S. AGENCIES
Program
1,226
3,654
P 4,062
0
P
190
P.
2,162
Contracts and other
commitments
720
1,293
P 2,357
P
200
P
225
n.a.
Checks paid
163
614
1,482
108
145
n.a.
FOREIGN ORDERS
Program (Orders)
3,786
4,096
P 4,096
0
P
0
P
0
Commitments
3,786
4,096
P 4,096
0
P
0
P
0
Checks issued by
Purchasing Missions
2,105
2,714.
P 3,052
45
P
33
P
30
16 CONFIDENTIAL
WAR PROGRESS
retailers have managed to keep pace
sale stocks, which cannot readily be:
with consumer buying. Though the amount
rebuilt. Manufacturers' stocks continue
of goods on merchants' shelves is below
to mount; the rapid expansion in war
the May peak, it has not changed for
production has demanded increased inven-
three months; however, it may soon be-
tories of raw materials and goods-in-
gin to reflect the depletion of whole-
process.
WHERE THE PAYROLLS GO
Industrial and Government wage and salary payments rise, while service and
distributive industries are squeezed.
Total
Monufacturing, Mining, Construction,
(Including Work Relief)
and Agriculture
7000
4000
6000
3000
5000
2000
4000
WAGES AND SALARIES- MILLIONS SALARIES- MILLIONS OF DOLLARS
3000
1000
1939
1940
1941
1942
1939
1940
1941
1942
Government
Service and Distributive Industries
1200
2600
WAGES AND MILLIONS SALARIES-MILLIONS OF DOLLARS
2400
1000
2200
800
2000
600
1800
400
1600
1939
1940
1941
1942
1939
1940
1941
1942
WAR PROGRESS
PAYROLLS HAVE RISEN SHARPLY SINCE THE OUTBREAK OF BEEN ADVANCING, BUT NOT so RAPIDLY. NOW THE RISE
THE WAR. SALARIES AND WAGES PAID_TO MANUFACTURING,
HAS STOPPED-WITH MEN BEING LOST TOTHE ARMED SERV-
MINING, CONSTRUCTION, AND FARM WORKERS TODAY CON-
ICES AND TO WAR INDUSTRIES AND WITH LESS GOODS TO
STITUTE 35% OF TOTAL INCOME PAYMENTS, AGAINST ONLY
DISTRIBUTE. THIS TREND IS LIKELY TO CONTINUE. GOV-
26% IN AUGUST, 1939. UNTIL RECENTLY, PAYROLLS IN
ERNMENT PAYROLLS, WHICH HAVE NEARLY TRIPLED IN THE
SERVICE AND DISTRIBUTIVE INDUSTRIES HAD LIKEWISE
PAST THREE YEARS, KEEP ON RISING.
OCTOBER 9, 1942
CONFIDENTIAL
17
ECONOMIC TRENDS
National Income - Federal Finances - Construction
Same
Same
Latest
Preceding
2 Months
6 Months
Year
Month
Month
Month
Month
Ago
Ago
Ago
1939
1937
NATIONAL INCOME
Gross national product-annual rate
(seasonally adjusted-billion dollars)
p155.4
p152.2
149.0
136.7
124.4
88.2
.n.a.
War
p62.7
P58.0
49.9
29.4
15.4
-
-
Nonwar
p92.7
p94.2
99.1
107.3
109.0
88.2
n.a.
Income payments (million dollars)
p9.269
9,435
9.553
5,002
7,518
5,501
5,897
Salaries and wages-total
p6.721
6,545
6,498
5,746
5,263
3,724
3,862
Manufacturing, mining,
construction, agriculture
p3,228
3,114
2,998
2,611
2,420
1,416
1,579
Service industries, including
railroads and utilities
p958
959
959
942
909
760
775
Distributive industries
pl.303
1,298
1,298
1,250
1,218
992
1,010
Government
p1,197
1,129
1,190
871
636
421
385
Work relief wages
p35
45
53
72
80
135
113
All other income payments
p2,548
2,890
3,055
2,256
2,255
1,777
2,035
Income payments - annual
rate (billion dollars)
p116.3
114.1
112.0
105.5
94.8
71.3
73.9
FEDERAL FINANCE (billion dollars)
Expenditures-total
5.9
5.2
5.2
3.4
1.9
.7
.6
War
5.4
4.9
4.5
2.8
1.3
-
-
All other
-5
.3
-7
.6
.6
.7
.6
Receipts total
2.5
.6
.8
3.6
1.1
.7
+7
Income tax
2.1
.2
.3
3.1
.8
.3
-5
All other
.4
.4
-5
.5
-3
F
.2
Federal debt
Gross debt
86.5
81.7
77.1
62.4
51.4
40.9
36.9
Balance in general fund
4.3
3.2
3.3
3.5
2.3
2.2
2.9
Net debt
82.2
78.5
73.8
58.9
49.1
38.7
34.0
Guaranteed obligations (exclud
ing those owned by the Treasury
4.6
4.6
4.6
5.7
6.9
5.4
4.6
Net debt and gtd. obligations
86.8
83.1
78.4
64.6
56.0
44.1
38.6
War bond sales total funds rec'd
(million dollars)
755
697
901
558
232
-
-
Series E
510
454
508
338
105
-
-
Series F
61
52
74
41
18
-
-
Series G
184
191
319
179
109
-
-
CONSTRUCTION (million dollars)
Facilities applications for
certificates of necessity
Total approved
p194
162
296
442
46
-
-
Private funds
p176
105
258
431
42
-
-
Public funds
p18
57
38
11
4
-
-
Pending
n.s.
n.a.
-554
785
673
-
-
*August, except Federal Finance, which is for September. n.s. Not available. P Preliminary.
18
CONFIDENTIAL
WAR PROGRESS
ECONOMIC TRENDS
New Orders, Shipments, Inventories
Latest
Preceding
2 Months
6 Months
Year
Same
Same
Month
Month
Month*
Month
Ago
Ago
Ago
1939
1937
NEW ORDERS, SHIPMENTS,
INVENTORIES
New orders-mfrs. (Jan. 1939 = 100)
p245
256
314
292
196
105
Durable goods
p361
399
545
463
257
107
Nondurable goods
p170
163
166
182
157
103
Shipments mfrs. avg. 100)
p213
207
202
199
168
95
Durable goods
p274
264
256
232
192
89
Nondurable goods
p166
163
160
173
149
100
Inventories (1939 avg. = 100)
Manufacturers-total
p175.4
174.2
172.9
163.0
140,0
98.8
Durable goods
p198.6
195.8
193,2
180.8
155.8
98.0
Nondurable goods
p155.0
155.3
155,1
147.4
126.2
99.5
Raw materials
p198.6
197.5
196.8
185.5
150.3
93.7
Goods in process
p263.0
258.1
256.1
240.2
205.9
102.4
Finished goods
pl18.4
118.7
117.0
110,9
103.7
101:5
Wholesalers
p124.2
128.0
132.5
139.2
124.0
98.6
Retailers
pl47.8
147,8
147.7
132.0
121.8
98.0
"August. P Preliminary.
RETAIL INVENTORIES PAST PEAK
Five-month decline in wholesalers' stocks foreshadows downtrend in merchandisers
supplies. Monufacturers' inventories continue to rise.
20
20
15
15
INVENTORIES-BILLIONS OF DOLLARS
Monufocturers
10
10
Retailers
INVENTORIES-BILLIONS OF DOLLARS
5
5
Wholesolers
o
o
1939
1940
1941
1942
WAR PROGRESS
OCTOBER 9, 1942
CONFIDENTIAL 19
PRODUCTION PROGRESS
Ground Army Munitions
Ground Army Ordnance and
Ground Signal Equipment
Combat Vehicles and Equipment
2000
1000
1942-43 Objective
1942-43 Objective
$28.6 Billion
$9.8 Billion
Excess
800
1500
Excess
Forecost
1942-43 Forecast
1942-43 Forecast
600
$31.5 Billion
$11.2 Billion
1000
Forecost*
400
500
Actual
200
Actual
o
o
1942
1943
1942
1943
Combat Vehicle Signal Equipment
Combat Vehicles
and Tank Cannon
60
800
1942-43 Objective
1942-43 Objective
VALUE DELIVERED - MILLIONS OF DOLLARS
$074 Billion
$9.1 Billion
Excess
Excess
600
40
Forecost*
1942-43 Forecast
1942-43 Forecast
$0.86 Billion
$10.3 Billion
400
Forecast"
20
VALUE DELIVERED - MILLIONS OF DOLLARS
200
Actual
Actual
o
0
1942
1943
1942
1943
Army Ground Signal Equipment
Army Ammunition - Total
100
800
1942-43 Objective
1942-43 Objective
$1.2 Billion
$ 10.0 Billion
Excess
BO
Forecost
600
1942-43 Forecast
$1.2 Billion
60
1942-43 Forecost
Forecost"
$11.2 Billion
400
40
200
20
Actual
Actual
0
o
1942
1943
1942
1943
Bosed on schedules of procurement ogencies.
WAR PROGRESS
20 CONFIDENTIAL
WAR PROGRESS
PRODUCTION PROGRESS
Ground Army Munitions (continued)
Artillery and Equipment
Artillery and Tank Cannon Ammunition
250
250
1942-43 Objective
1942 43 Objective
$28 Billion
$3.9 Billion
200
200
Excess
Excess
Forecost
150
1942-43 Forecast
1942-43 Forecost
150
$3.3 Billion
$43 Billion
100
Forecost
100
Actual
50
Actual
50
0
o
1942
1943
1942
1943
Antiaircraft Guns and Equipment
Antiaircraft Ammunition
250
100
1942.43 Objective
1942. 43 Objective
$36 Billion
$081 Billion
VALUE DELIVERED - MILLIONS OF DOLLARS
200
Excess
Deficit
75
Forecost
.
150
1942-43 Forecost
942-43 Forecast
$32 Billion
$092 Billion
50
Forecast
.
100
VALUE DELIVERED - MILLIONS OF DOLLARS
Actual
25
50
Actual
O
o
1942
1943
1942
1943
Small Arms and Infantry Weapons
Small Arms and Infantry Weapon
Ammunition
100
400
942-43 Objective
1942 43 Objective
$12 Billion
$53 Billion
80
Excess
Excess
300
60
1942-43 Forecost
Forecost
.
1942 43 Forecost
$14 Billion
Forecost
.
$61 Billion
200
40
Actual
Actual
100
20
0
o
1942
1943
1942
1943
.
Bosed on schedules of procurement agencies
WAR PROGRESS
in
WAR PROGRESS
Confidential
(British Secret)
cash
2A - 23. bell - - -
- 5. Birth
War Production-Nine
Months' Roundup
the
Number 109
October 16, 1942
CONFIDENTIAL
NUMBER 109
WAR PROGRESS
OCTOBER 16, 1942
Big 1942 Production Deficit Looms
A 72% gain in fourth quarter output of combat
have to rise $8,000,000,000 to meet the
munitions - fighting stuff"-is needed 10
year's objective. Thus the inference
meet year's forecast; September rise of
is that 1942 output will fall farshort
only 13% indicates prospect is poor.
of the overall schedules or objectives
of procurement agencies, especially
IN THE FIRST QUARTER of this year, pro-
since overall production last month ran
duction of fighting items-total combat
about 20% behind the forecast as of Aug-
munitions-amounted to $3,425,000,000;
ust 1. On the basis of the September
in the second quarter, production jumped
1 forecast, the showing may be less dis-
$1,850,000,000--or 54%-to $5,280,000,-
couraging.
000; and in the third the rise was $2,-
000,000,000-or 38%-to $7,300,000,00C.
SEPTEMBER PROJECTION
Thus quarterly gains have held steady-
Lifted principally by mounting naval
about $2,000,000,000; but percentagewise
and army ship construction, combat mu-
they're going down.
nitions output jumped about 13% in Sep-
And to meet the forecast for the last
tember. If similar month-to-month gains
quarter, combat munitions output will
could be achieved in the last quarter,
have to jump more than $5,000,000,000-
overall combat munitions output would
or 72%-to $12,580,000,000. It would
be 21% short of the quarterly forecast,
PRODUCTION VS. THE FORFCAST
I. Here is the way combat munitions output
2. And here are the actual monthly gains
has jumped.
as % of the forecast gains.
3.0
150
1942 Estimate
2.5
Jon.- Sept.
Actual
Oct-Dec.
2.0
Forecast*
100
BILLIONS OF DOLLARS
1.5
% OF FORECAST GAIN
1.0
50
0.5
+
+
+
+
0
o
J
F
M
A
M
J
J
A
S
J
F
M
A
M
J.
J
A
5
* Bosed on schedules of procurement agencies os of August 1.
T No "forecast" ovoilable
WAR PROGRESS
COMBAT MUNITIONS OUTPUT, MONTH-BY-MONTH, PRESENTS
FIGHTING STUFF-GROUND ARMY MUNITIONS, AIRCRAFT AND
A NICELY PROPORTIONED STATISTICAL PICTURE OF STAIR-
AIRCRAFT MUNITIONS, NAVAL AND ARMY VESSELS AND EQUIP-
STEP INCREASES. BUT THE PRECISE PATTERN FALLS FAR
MENT, AND AIRCRAFT AND AIRCRAFT EQUIPMENT-HAVE BEEN
SHORT OF THE FORECAST TEMPO. EXCEPT FOR MAY, GAINS
SHARPLY UNDER THE INCREASES CALLED FOR IN SCHEDULES
IN OVERALL VALUE (DELIVERED OR PUT IN PLACE) OF
LAID OUT BY PROCUREMENT AGENCIES.
2 CONFIDENTIAL
WAR PROGRESS
though some categories--if they main-
% Still to be
tained their September rate of gains--
Done to Achieve
might go over the top: naval and mer-
Group
1942 Forecast
chant ships and small arms and infantry
Combat vehicles
weapons, for instance.
& equip
49
And for the most part, output in the
Artillery & equip
59
fourth quarter must rise considerably
Antiaircraft guns
to approach the year's forecast. Thus,
& equip
52
in artillery and equipment and antiair-
Small arms & infantry
craft guns and equipment, final quarter
weapons
40
production would have to exceed that of
Army ammunition
48
the first nine months if the full-year
Merchant vessels
36
schedule is to be met.
Naval & army vessels
42
The following table indicates the
Although output of combat munitions
percentage of 1942 output which must be
was spotty in September (WP-Oct9'42,p9),
crammed into thefinal quarter to achieve
the month-to-month gain, at13%, showed.
the forecast.
a sharp pickup over the July-August in-
% Still to be
crease of only 9% in combat munitions.
Done to Achieve
Group
1942 Forecast
UPTURN IN NAVAL SHIPS
Total combat
A large part of the increase was
munitions
46%
accounted for by naval ships. In this
Aircraft & aircraft
category, however, the figures are of
munitions
42
a highly preliminary nature, so later
Combat planes
39
returns may force a readjustment. Big
Service combat planes.
45
factor in the naval upturn has been
Trainers
30
the construction of landing craft,
Ground ord. & ground
schedules of which have been advancing
sig. equip
50
sharply. Actual deliveries in Septem-
ber fell below the forecast, but in
August they were above expectations.
IN THIS ISSUE:
And the program as a whole is moving
forward rapidly.
BIG 1942 PRODUCTION DEFICIT LOOMS
1
The estimated August-September gain
PRODUCTION PROGRESS
3
in naval and army vessels and equipment
was better than 20% (the July-August
WAR BUILDING MINDS ITS METALS
6
advance was only 12%). But September
IS A JOB "FREEZE" NEEDED?
8
value in place is estimated about 16%
WAR PROGRESS NOTES
9
below forecast. On a value-in-place
basis, merchant vessels gained 10% to
KEY STATISTICS OF THE WEEK
9
exceed the forecast by 3%.
HERE'S THE STATUS OF OUR LABOR FORCE
10
In contrast, ground army munitions
were only up 4%, as compared with a
IS STALINGRAD A STOCK MARKET TURNING POINT?
11
July-August advance of 5%. Ground army
ECONOMIC TRENDS
12.13
munitions recorded an exceptionally
PRODUCTION PROGRESS
14-16
sharp spurt inJuly, which showed a 28%
gain. Thus, recent performance may to
OCTOBER 16, 1942
CONFIDENTIAL
3
PRODUCTION PROGRESS-Preliminary
Value delivered or put in place in September-millions of dollars.
September
September
August
%
September
Preliminary
Preliminary
Actual
Change
Forecast*
as % of
Forecast
Total munitions
n.a.
3,141
--
4,306
--
Combat munitions (a)
2,702
2,401
+13
(0)3,392
80
Aircraft and aircraft munitions
937
834
+12
1,153
81
Ground army munitions (b)
687
659
+4
1,003
68
Naval and Army Vessels and equipment
848
699
+21
(c)1,013
84
Merchant vessels
230
209
+10
223
103
Combat planes
321
286
+12
385
83
Aircraft armament
28
29
-3
31
90
Aircraft. ammunition
56
59
-5
104
54
Artillery and equipment
54
56
-4
81
67
Antiaircraft guns and equipment
86
78
+10
99
87
Small arms and infantry weapons
43
37
+16
41
105
Artillery and tank cannon ammunition
110
102
+8
161
68
Antiaircraft ammunition
33
28
*18
28
118
Small arms and infantry weapon ammunition
127
113
*12
198
64
Combat vehicles
184
177
+4
297
62
*Based on schedules of procurement agencies as of August 1. (a) Fighting Items: Aircraft and aircraft muni-
tions: ground aray ordnance and ground signal equipment: naval. army, and merchant vessels and equipment.
(b) Ground aray ordnance and ground signal equipment. (c) Adjusted. n.a. Not available.
some extent represent a so-called mark-
proportion of four- and two-engined bomb-
ing time at a sharply higher-than-in-
ers, the gain in airplane acceptances
June level of output. However, the
was 10%. Production of aeronautical
fact remains that ordnance deliveries
and air base equipment has been rising
as a whole are running sharply below
somewhat faster than aircraft output,
forecasts.
and the month-to-month gain for air-
Some items are not getting into in-
craft and aircraft munitions and equip-
itial production on schedule.
Though
ment was about 12% over August. (The
on the September docket, armored cars,
July-August gain was 11%.) September
for example, are still to be turned over
overall output lagged 19% behind the
to theArmy. (That, in the nation which
forecast, combat planes, 17%.
has produced 5,000,000 motor vehicles
in ayear!) Of 16 ordnance items sched-
SCHEDULES T00 LIBERAL
uled to come into production in Septem-
It is now clear that production of
ber, only four were actually delivered,
planes for the year will fall 7% to 10%
and none of these four was produced in
short of scheduled output, and more than
anywhere near the quantity anticipated.
20% short of the year's original objec-
In all, ground ordnance and signal equip-
tive. As the table shows, 39% of com-
ment were 32% below the forecast.
bat plane output must be jammed into
As previously noted, airplane accept-
the last quarter to meet the schedule.
ances in September were up less than
The overall 20% lag behind forecast in
1% in number over August. In value
September re-emphasizes that scheduling
terms, largely because of the greater
of production has been far too liberal,
4 CONFIDENTIAL
WAR PROGRESS
U.S. COMBAT MUNITIONS OUTPUT KEEPS GOING UP-
Changes from August range from a 4% decrease for artillery and equipment
Aircraft and Aircraft Munitions
Combat Planes
14
14
1942 Estimate
1942 Estimote
12
12
Jon-Sept
Jon-Sept
Actual
IO
Actual
10
8
8
Oct-Dec
Oct-Dec
6
Forecost*
Forecast
6
4
4
2
2
o
o
J
F
M
A
M
J
J
A
S
J
F
M
A
M
J
J
A
S
Service Planes
Ground Army Munitions
14
14
1942 Estimate
1942 Estimote
% OF 1942 ESTIMATE (ACTUAL PLUS FORECAST)
12
12
Jon-Sept
Jon-Sept
Actual
Actual
10
10
8
8
Oct-Dec
Oct-Dec
6
Forecost
Forecost
6
4
4
% OF 1942 ESTIMATE (ACTUAL PLUS FORECAST)
2
2
o
0
J
F
M
A
M
J
J
A
S
J
F
M
A
M
J
J
A
S
Combat Vehicles and Equipment
Artillery and Equipment
14
14
1942 Estimate
1942 Estimate
12
12
Jon-Sept.
Jon-Sept
Actual
Actual
10
10
8
8
Oct-Dec
Oct.-Dec.
6
Forecast
Forecast'
6
4
4
2
2
0
0
J
F
M
A
M
J
J
A
S
J
F
M
A
M
J
J
A
S
.
Bosed on schedules of procurement agencies os of Aug I
WAR PROGRESS
finited
WAR PROGRESS
Confidential
(Brilish-Secret)
- -
- -
1
War Output Picks up Speed,
Despite Materials Shortages
Number 100
August 14, 1942
18 CONFIDENTIAL
WAR PROGRESS
FOOTNOTES
WAR PROGRESS SERIES
n.a. Not available
P Preliminary
r Revised.
a Total war program includes all funds and authorizations made available for
war purposes by the United States Government plus foreign orders placed in
this country since November 1939. The major portion of the existing pro-
gram has been approved since June 11, 1940, but some authorizations (par-
ticularly portions of the naval expansion program, the merchant shipbuild-
ing program, and the stockpile program) were made available even earlier.
All funds are shown during the fiscal year in which they are available for
obligation.
b Value delivered and / or in place includes (1) value delivered and/or in
place for ships and value of production for other munitions, (2) value in
place for war construction, and (3) checks issued by finance officers for
non-wunitions items.
c Checks paid include (1) all checks paiá out of the Treasury General Fund;
(2) checks issued by the Reconstruction Finance Corporation and subsidiary
Government corporations; checks issued by foreign purchasing commissions.
d United States financed program includes the war activities of all United
States Government agencies (including Lend-Lease) plus the war activities
of government owned corporations, but does not include foreign orders.
e Report on checks paid by the Treasury for the account of the Maritime Com-
mission makes allowance for receipts credited to the Construction Loan Fund.
f Program and obligations for pay for civilians and for the Navy include
only that specifically mentioned in appropriation bills, while the cash
disbursement figures include, in addition, executive war pay which cannot
be separately distinguished in the appropriation bills.
E Ordnance and naval ships figures revised back to January 1942. In compar-
ing these with prior figures. ordnance and naval ships should be combined.
OCTOBER 16, 1942
CONFIDENTIAL 5
-BUT ITEM-BY-ITEM GAINS ARE FAR FROM UNIFORM
to a 20% gain for navy and army ships.
Antiaircraft Guns and Equipment
Small Arms and Infantry Weapons
14
14
1942 Estimate
1942 Estimate
12
12
Jon. Sept.
Jon-Sept.
Actual
Actual
10
10
B
8
I
Oct-Dec
Oct-Dec
6
Forecost
Forecost*
6
4
4
2
2
0
o
J
F
M
A
M
J
J
A
S
J
F
M
A
M
J
J
A
S
Army Ammunition
Naval and Army Vessels and Equipment
14
14
1942 Estimate
1942 Estimote
% OF 1942 ESTIMATE ACTUAL PLUS FORECAST)
12
12
Jon Sept
Jon-Sept
Actual
Actual
10
10
8
8
Oct-Dec
Oct-Dec
6
Forecast*
Forecost
6
4
4
% OF 1942 ESTIMATE (ACTUAL PLUS FORECAST)
2
1
2
0
0
J
F
M
A
M
J
J
A
S
J
F
M
A
M
J
J
A
S
Merchant Ships - Totol
Tankers
14
14
1942 Estimate
1942 Estimate
12
12
Jan Sept
Jon. Sept.
Actual
Actual
10
10
8
8
Oct-Dec
Oct-Dec
6
Forecast
Forecast
6
4
4
2
2
0
0
J
F
M
A
M
J
J
A
S
J
F
M
A
M
J
J
A
S
Based on schedules of procurement agencies 05 of August I
WAR PROGRESS
6
CONFIDENTIAL
WAR PROGRESS
and it reiterates the need for more
smaller amounts of critical materials
careful analysis of what our facilities
are going into construction and civilian
can and cannot dowith the raw materials
goods; it may also suggest that we are
at hand.
beginning to get more military end prod-
At the same time, the 13% increase in
ucts out of the factory "pipelines" into
output of fighting items indicates that
which we have been pouring critical rea-
more rawmaterials are now going direct-
terials-the starting inventory for new
ly into munitions. This suggests that
plants-for 80 long.
War Building Minds Its Metals
Simpler designs, substitutes save steel,copper,
16,200 tons to an estimated 8,000 tons).
zinc as construction volume is scheduled
unanges in the composition of the pro-
to drop 25% in 1943. But further con-
gramwill be a factor inthe greater-than-
servation is needed.
dollar-value declines. War plant con-
struction--which requires heavy struc-
PRELIMINARY ESTIMATES of 1943 construc-
tural materials--will be down 50%. But
tion of barracks, airfields, defense
standardization, simplification, substi-
housing, shipways, war plants, defense
tution, and lower specification require-
highways, etc. (both in and out of con-
ments are also potent influences.
tinental United States) approximate
$10,700,000,000 (excluding industrial
SHEDDING THE FRILLS
machinery and equipment)--some 25% below
New specifications permit higher
the record-breaking 1942 total (chart,
stresses, thus requiring lighter struc-
page 7). But the use of critical build-
tural members to support given live and
ing materials is expected to decline
floor loads; standardization of building
even more sharply--from 29% for lead to
codes reduces requirements for plumb-
45% for structural shapes-as follows:
ing, thus demanding less lead and cast
iron; simplifications of design cut down
% Decline in
on frills, thus eliminating copper and
Construction Use,
steel. Clay for soil pipe saves cast
Material
1942 to 1943
Cast iron
iron, reinforced concrete for storage
32%
tanks saves steel plate, lumber for in-
Copper
31
dustrial plants saves structural and
Lead
29
reinforcing steel.
Lumber
34
Steel plates
In some instances, substitutes them-
35
Structural shapes
selves have become scarce; lumber is a
45
Zinc
30
case in point (WP-Aug21'42,p5). Conse-
quently, further economies have become
In defense housing and public works,
necessary. The Army, for example, em-
to be specific, dollar value will de-
phasizing temporary-type structures in
cline from $1,900,000,000 in 1942 to
its barracks program, will be using 1888
around $1,300,000,000 in 1943--a fall
than 1,000 board feet of construction
of 31%. The use of steel, however, will
lumber per man in 1943, compared with
drop 48% (from 375,000 tons to 195,000
more than 2,000 board feet in 1942.
tons) and copper will be down 51% (from
But despite reduced requirements for
OCTOBER 16, 1942
CONFIDENTIAL 7
war construction--togetherwith conser- indicated by the following table:
vation--the supply of critical building
Cut in
Increased
materials will remain tight. Direct
1943 War Needs, 1943
munitions demandfor copper, steel, etc.
Construction
Munitions
is greater than in construction. And
Material
Program
Program
while war construction next year will
(thousands of tons)
be down approximately one-fourth, muni-
Copper
55
750
tions production (output of planes,
Lead
65
120
tanks, ships, guns, etc.) is scheduled
Steel plates..
500
2,000
to more than double-from around $38,-
Zinc
25
160
000,000,000 to more than $80,000,000,-
000. Thus, savings on war construction
Moreover, except for steel plates--
account will be gobbled up quickly, as
where a small margin of surplus exists
WAR CONSTRUCTION PEAK PASSING
Comparison of building estimates - 1942 and 1943
Military Housing
Aeronautics Focilities
Total War Construction
(excluding machinery and equip.)
3.0
3.0
15.0
2.0
2.0
1.0
1.0
o
0
1942
1943
1942
1943
Other Military.
Industrial Facilities
10.0
4.0
4.0
BILLIONS OF DOLLARS
3.0
3.0
2.0
2.0
BILLIONS OF DOLLARS
1.0
1.0
o
o
1942
1943
5.0
1942
1943
Defense Housing and
Public Works
All Other
2.0
2.0
1.0
1.0
o
0
0
1942
1943
1942
1943
1942
1943
-
WAR PROGRESS
8
CONFIDENTIAL
WAR PROGRESS
IS A JOB "FREEZE" NEEDED ?
Four out of every hundred factory workers quit their jobs each month;
o fifth goes into the Army - and the rate is rising.
5.0
50
40
4.0
RATE PER 100 EMPLOYEES
30
30
Ouits All Monufacturing
RATE PER 100 EMPLOYEES
20
20
I.O
I.O
Military Separations All Monchacturing
o
o
1940
1941
1942
Quit rotes in most wor Industries are below average,
60
60
4.0
4.0
2.0
20
RATE PER 100 EMPLOYEES-AUGUST 1942
o
o
Foundry
Bross,
All
Iron
Ship-
Engines
and Moch-
Bronze,
Monu-
Aircraft
Firedrms
Mochine
and
Aluminum
Explosives
Electrical
and
building
line Shops
Copper
facturing
Tools
Sheel
Mochinery
Turbines
But the draft takes 0 larger proportion of war than of nonwar workers.
RATE PER IDO EMPLOYEES AUGUST 1942
2.00
200
150
1.50
I.DO
1.00
50
50
o
o
from
Engines
Bross,
Foundry
All
Aircraft
Explosives
Ship-
Firearms
and
and
Bronze,
and Moch
Mochine
Electricol
Monu-
Aluminum
building
Steel
Turbines
Copper
in Shops
Tools
Mochinery
focturing
WAR PROGRESS
OCTOBER 16,1942
CONFIDENTIAL
9
-estimated new supply of these key ma-
creased use of glass, asbestos board,
terials next year (including lumber)
laminated fiberboard, and certain types
will be insufficient to meet the total
of plastics, which can be substituted
demand for war construction, munitions
for steel, lumber, and other short ma-
production, essential civilian produc-
terials.
tion, and export.
BRICKS FOR BOARD
War Progress Notes
Hence, war construction will be forced
to seek further methods of conservation,
ADD "TREMENDOUS TRIFLES"
particularly by using building materials
AS A RESULT of a suggestion made by a
that are relatively plentiful, such as:
government arsenal's metal-shop foreman,
1. Brick, tile, and concrete block:
the hang wire container in 1,500,000
Increased utilization would save more
parachute flares will be made of pressed
than 3,000,000,000 board feet of lumber
wood plus a thin metal rim, instead of
and 50,000 tons of steel nails annually.
all metal. Savings: 1,900,000 pounds
2. Clay and concrete sewer pipe:
of steel and 9,300 pounds of cadmium.
Increased utilization could save about
Cost: 5 cents perunit, versus 30 cents
300,000 tons of cast iron and steel an-
for the all-metal job (WP-Aug28'42,p8).
nually.
3. Gypsum board: Increased utili-
CHOCOLATE SOLDIERS-'42 VERSION
zation would save upwards of 750,000,-
REGULAR SUBSISTENCE allowance in the
000 board feet of lumber annually.
Army ranges from 62 to 64 cents a day
And that doesn't take account of in-
for enlisted men to $1 a day for avia-
KEY STATISTICS OF THE WEEK
Latest
Preceding
Month
.6 Months
Year
Week
Week
Ago
Ago
Ago
War program Checks paid (millions of dollars)
1,278
1,253
1,123
680
372
War bond sales (millions of dollars)
184
243
151
114
66
Commodity prices (August 1939 = 100)
28 Basic commodities
169.6
169.9
168.0
167.2
153.8
Controlled
161.4
161.3
161.2
161.7
155.5
Uncontrolled
190.0
191.4
185.2
181.7
149.6
Nonferrous metal scrap
115.8
115.8
115.8
132.5
128.4
Petroleum carloadings (no. of tank cars)
Total
52,691
52,548
53,498
54,245
47,345
Movement into East
25,306
25,389
27,948
18,243
4,322
Exports (no. of freight cars unloaded for export Friday)
Atlantic Coast ports
1,343
1,317
1,664
1,885
1,490
Gulf Coast ports
363
304
244
322
441
Pacific Coast ports
847
787
653
418
189
Strikes affecting the war effort
Number in progress
9
7
18
n.a.
n.s.
Man-days lost
48,280
9,505
63,333
n.a.
n.a.
Unused steel capacity (X operations below capacity)
-.2
1.4
2.5
2.8
1.6
n.a. Not available.
10
CONFIDENTIAL
WAR PROGRESS
HERE'S THE STATUS OF OUR LABOR FORCE
There are fewer mole workers available, and almost all are already employed,
50
50
Mole Lobor Force
40
40
30
30
Employed
20
20
10
10
Unemployed
o
0
1940
1941
1942
But more women are taking jobs,
20
20
Femole Labor Force
MILLIONS
10
10
Employed
MILLIONS
o
Unemployed,
o
1940
1941
1942
And maintaining the total labor force.
60
60
Total Labor Force
50
50
40
40
30
Employed
30
20
20
10
10
Unemployed
o
0
1940
1941
1942
WAR PROGRESS
OCTOBER 16, 1942
CONFIDENTIAL II
tion cadets. Members of the Women's
though plastics might be substituted.
Auxiliary Army Corps are allowed the
Also, governors cut down "pick-up" em-
same amount as enlisted men. The low-
ployed in passing other cars and might
est cost ration is the so-called Type
send the accident ratio soaring before
"D" emergency. It consists of three
drivers got the feel of them.
special chocolate bars, costs 25 cents.
TURNABOUT
SPEED CEILING
BRITAIN'S LUMBER is BO tight-imports of
SPEED LIMIT of 35 miles per hour to save
soft timber are down to 5% of the prewar
wear and tear on tires could be automat-
volume-that wood is not available as a
ically enforced country-wide if the na-
steel substitute. On the contrary, steel
tions 27,000,000 motor cars were equipped
nust be diverted into such uses as coal
with governors--standard equipment for
mine props, shelving, barracks, etc. In-
years with many truck fleet operators.
cidentally, the symbolic British umbrella
Hitch is that governors require alumi-
has been cut from 16 and 12 ribs to
num and copper in their manufacture--
eight to save steel.
IS STALINGRAD A STOCK MARKET TURNING POINT?
Russion resistance to German attacks coincides with upturn in share prices on New
York Stock Exchange.
150
150
125
125
Germons invode Poland
COMMON STOCK PRICES-1935-39=100
Germony siezes
Czechoslovokio
Germons invode
Hiller
Holland and Belgium
repudiates
Versoilles treoty
100
Foll of France
100
Anschluss
Lend-Leose enocted
Siege of Statingrod
COMMON STOCK PRICES-1935-39=100
Germans invode
Pearl Harbor
Norway and Denmork
Corregidor
75
Japs sink U.S.S. Ponay
surrenders
75
Germons invode Russio
Munich Conference
Dunkirk
Singapore surrenders
U.S. Morines invode Solomons
50
50
1937
1938
1939
1940
1941
1942
WAR PROGRESS
LATELY, WALL STREET HAS HAD A BURST OF EXCITEMENT.
THE WORST HAD HAPPENED. SHARES ROSE. BUT OVER
STOCK PRICES HAVE RISEN SHARPLY, AS THE UPTILT AT
HERE, PRICES DROPPED. OSSIBLE U. S. ENTRY INTOTHE
THE END OF THE CURVE SHOWS. AND VOLUME OF DAILY
WAR WAS BAD NEWS TO WALL STREET, THREATENING AS IT
TRADING HAS DOUBLED AND TRIPLED. OBVIOUS EXPLANA-
DID GOVERNMENT CONTROL OF BUSINESS, KIGHER TAXES,
TION IS THAT STALINGRAD HAS HELD OUT. STALINGRAD
LOWER PROFITS. NOW. HOWEVER, THE WAR, ITStLF, DE-
MAY BE TO WALL STREET WHAT DUNKIRK WAS TO "THE
TERMINES THE FUTURE OF STOCKS. AND THE RECENT UP-
CITY." BEFORE DUNKIRK, THE BRITISH FELT THAT ANY-
TURN IN PRICES MAY BE A REFLECTION OF INCREASED
THING COULD HAPPEN; AFTER DUNKIRK, THEY FELT THAT
SPECULATIVE CONFIDENCE IN VICTORY.
12
CONFIDENTIAL
WAR PROGRESS
ECONOMIC TRENDS
Labor Turnover - Labor Force
Same
Same
Latest
Preceding
2 Months
6 Months
Year
Month
Month
Month
Ago
Ago
Ago
Month
1939
1937
LABOR TURNOVER (rate per hundred)
All manufacturing industries
Accessions
7.90
8.29
8.25
6.02
5.43
5.06
3.36
Separations-total
7.06
6.75
6.46
4.82
4.14
3.01
3.99
Quits
4.31
4.03
3.85
2.41
2.46
0.82
1.23
Layoffs
0.87
1,06
1.21
1.39
1.13
2.05
2.57
Discharges
0.42
0.43
0.38
0.29
0.30
0.14
0.19
Military separations
1.13
0.93
0.78
0.56
0.14
11 Selected war industries
Quits
Aluminum
3.17
3.51
3.88
1.91
3.47
0.54
1.35
Aircraft
4.29
3.76
3.60
2.68
2.87
1.45
1.22
Brass, bronze, and
copper products
4.53
3.78
3.15
2.45
2.66
0.56
Electrical machinery
2.76
2.36
2.27
1.78
2.05
0.75
1.02
Engines and turbines
1.53
1.67
1.50
1.55
1.45
0.65
1.44
Explosives
2.92
2.25
2.43
1.94
1.91
0.92
1.07
Firearms
4.11
3.65
4.29
2.27
3.97
n.s.
n.a.
Foundry and machine shop
4.54
4.15
3.75
2.30
2.71
0.49
1.12
Iron and steel
3.34
2.78
2.72
1.52
1.50
0.40
1.17
Machine tools
3.41
3.02
2.86
2.23
2.55
0.79
1.43
Shipbuilding
5.77
4.67
5.71
3.27
2.35
0.78
1.68
Military separations
Aluminum
1.00
1.19
0.34
0.88
0.17
Aircraft
1.84
1.34
0.93
0.74
0.13
Brass, bronze, and
copper products
1.28
0.95
0.84
0.67
0.15
Electrical machinery
1.15
1.03
1.02
0.75
0.13
Engines and turbines
1.33
1.11
0.74
0.51
0.08
Explosives
1.83
1.07
0.91
0.56
0.12
Firearms
1.55
1.16
1.20
0.60
0.03
Foundry and machine shop
1.25
0.93
0.55
0.51
0.13
Iron and steel
1.50
1.24
1.04
0.68
0.17
Machine tools
1.22
0.95
0.74
0.40
0.06
Shipbuilding
1.58
1.07
0.91
0.56
0.10
LABOR FORCE (millions)
Employment toL
52.4
54.0
54.0
50.9
50.3
n.a.
n.s.
Male
38.2
39.7
39.9
37.6
38.0
n.a.
n.a.
Female
14.2
14.3
14.1
13.3
12.3
n.a.
n.s.
Unemployment total
1.7
2.2
2.8
3.6
4.5
n.a.
n.s.
Male
1.0
1.4
1.7
2.4
3.0
n.a.
n.a.
Female
0.7
0.8
1.1
1.2
1.5
n.a.
n.a.
Total labor force
54.1
56.2
56.8
54.5
54.8
n.a.
n.a.
Male
39.2
41.1
41.6
40.0
41.0
n.a.
n.a.
Female
14.9
15.1
15.2
14.5
13.8
n.s.
n.a.
*Labor turnover. August: labor force, September. n.a. Not available.
OCTOBER 16, 1942
CONFIDENTIAL 13
ECONOMIC TRENDS
Plant Utilization - Commodity Prices
Same
Same
Latest
Preceding
2 Months
6 Months
Year
Month
Month
Month
Month
Ago
Ago
Ago
1939
1937
PLANT UTILIZATION
Airframes
All plants
89.2
87.1
86.3
87.3
76.2
Three best
113.4
111.6
105.8
102.7
90.0
Aero engines
All plants
105.9
106.1
106.0
106.3
93.8
Three best
123.8
129.7
124.8
126.3
109.2
Aircraft propellers
All plants
107.7
106.8
103.1
98.8
89.8
Three best
131.0
131.7
135.2
135.9
114.0
Shipbuilding and repair
All private construction yards
79.1
78.3
77.3
72.7
a62.0
Three best
plll.5
111.6
112.0
99.8
a80.2
Major repair yards
75.3
74.2
70.5
73.1
a63.7
Tanks
All plants
p76
73
72
80
a69
Best plant
n.s.
90
93
109
a97
Machine tools
All plants
90.4
89.9
90.7
85.1
a77.9
Three best
138.2
144.0
144.0
127.1
all3.9
Large plants
97.1
96.3
97.5
89.7
a79.2
Medium plants
80.0
80.0
80.4
77.7
a67.2
Small plants
67.4
67.2
66.3
62.5
a58.4
Machine utilization in machine
tool plants
All plants
110
109
109
103
n.a.
Three best
167.3
167.7
167.7
164.7
n.s.
Large plants
121
121
120
114
n.a.
Medium plants
99
98
99
92
n.a.
Small plants
74
75
74
67
n.a.
COMMODITY PRICES
Producers' goods (1929 = 100)
105.4
105.3
105.1
104.1
97.5
79.2
94.3
Durable
108.9
108.8
108.8
108.4
105.2
94.7
102.2
Nondurable
104.0
104.0
103.6
102.1
91.6
66.8
88.4
Consumers goods (1929 = 100)
103.8
102.7
102.9
99.9
92.0
76.9
88.7
Durable
116.3
115.1
115.2
114.1
102.6
92.3
96.2
Nondurable
101.9
100.8
101.0
97.6
90.3
74.5
87.5
machine "August. utilization figures are based on machine operator hours. a September, 1941. n.s. Not available.
t Number of man-hours weekly divided by the number of workers on the largest shift, Monday through Friday:
P Preliminary.
14 CONFIDENTIAL
WAR PROGRESS
PRODUCTION PROGRESS
Naval, Army, and Merchant Ships anc Equipment
Total Naval Vessels
Battleships, Cruisers, Carriers
600
125
Forecost
Forecost"
100
400
75
Actual
Actual
50
200
25
o
o
1942
1943
1942
1943
Destroyers
Submarines
125
60
VALUE PUT IN PLACE MILLIONS OF DOLLARS
Forecast
100
Forecost"
40
75
Actual
50
20
Actual
25
VALUE PUT IN PLACE - MILLIONS OF DOLLARS
0
o
1942
1943
1942
1943
Antisubmarine Vessels
Other Minor Combat Ships,
Naval Auxiliaries, and Conversions
250
150
Forecast
200
100
150
Forecost*
100
Actual
50
Actual
50
0
0
1942
1943
1942
1943
.
Bosed on schedules of procurement agencies as of August 1.
WAR PROGRESS
AUGUST 14,1942
CONFIDENTIAL
19
ECONOMIC ACTIVITY RELATED TO THE WAR
Note: Certain statistical series included in these tables are nonconfidential and are
published in such public documents as the Federal Reserve Bulletin, Survey of Current Busi-
ness, etc. Obviously inclusion here should not be construedas a limitation on their use.
1940
1941
1942
July
June
Week ending
July
July
Aug. 1
Aug. 8
BLS PRICE INDEXES
Strategic materials
123.6
140.3
147.6
p 147.5
147.5
147.5
Critical materials
8/39
107.5
115.2
123.2
P 123.9
123.9
123.9
Basic commodities
=100
108.5
148.7
166.4
167.2
166.4
166.9
Machine tools
108.7
117.6
118.0
118.0
-
-
All commodities (1926=100)
77.7
88.8
P 98.6
P 98.7
P 98.6
P 98.6
ELEC. POWER PROD. (mil. kwh.)
12,094
14,226
15,179
P 15,975
3,649
3,637
WAR BOND SALES (mil. dollars)
-
342
634
901
205
194
EMPLOYMENT (thous.)
Total civil nonagricultural
35,904
39,908
P 41,415
War industries
Private, 18 selected ind.
1,663
2,559
P 3,690
Private contractors,
public construction
13
412
P 882
Public
117
225
400
Total
1,793
3,196
P 4,972
Deep sea merchant vessels
51
50
47
Total WPA employment
1,655
1,055
698
525
UNEMPLOYMENT (WPA ESTIMATE)
Number of unemployed (thous)
9,300
5,600
2,800
2,800
1941
1942
June
March
April
May
June
July
PLANT UTILIZATION
Shipbuilding (Private)
(Equivalent
hours of full
capacity
operationa)
61 yardeb
61.1
72.7
72.9
76.4
77.0
P 82.0
Three best yards
77.3
95.1
97.9
108.4
112.0
P 115.0
Machine Tools
Plant utilization
All plants
76.1
r 85.0
r 90.3
r 89.8
r 90.2
P 88.9
Three best plants
111.6
r 134.1
r 138.9
138.7
144.0
P 144.0
Machine utilization
All plants
n.a.
106
110
109
110
110
Three best plants
n.a.
166.6
167.2
167.3
167.7
P 167.6
P. Preliminary
n.a. Not available
r Revised
a Total man-hours in one week divided by the number of workers on the first shift.
61 private shipbuilding yards having approximately 80% of total employment in the
shipbuilding industry.
OCTOBER 16, 1942
CONFIDENTIAL ... 15
PRODUCTION PROGRESS
Naval, Army, and Merchant Ships and Equipment (Continued)
Transports, Landing Vessels,
and Army Auxiliaries
Transports
250
30
200
Forecost*
20
150
Forecost'
100
10
Actual
50
Actual
o
o
1942
1943
1942
1943
Landing Vessels
Army Auxiliaries
200
30
VALUE PUT IN PLACE - MILLIONS OF DOLLARS
150
Forecast
20
Forecost"
100
10
50
Actual
VALUE PUT IN PLACE - MILLIONS OF DOLLARS
Actual
o
o
1942
1943
1942
1943
Naval Guns and Fire Control
Naval Gun Ammunition
125
150
Forecost"
100
Forecost
100
75
Actual
50
50
25
Actual
o
o
1942
1943
1942
1943
. Based on schedules of procurement agencies os of August 1.
WAR PROGRESS
16 CONFIDENTIAL
WAR PROGRESS
PRODUCTION PROGRESS
Naval, Army, and Merchant Ships and Equipment (Continued)
Naval Torpedoes, Depth Charges,
Noval Equipment and Maintenance
and Mines
Including Signal Equipment
30
200
Forecost"
150
20
Forecost
100
Actual
10
50
Actual
o
0
1942
1943
1942
1943
Merchant Ships-Total
Dry Cargo Vessels-Ocean Going
300
250
VALUE PUT IN PLACE - MILLIONS OF DOLLARS
Forecost
Forecast
200
P.
200
1942-43 Objective
1942-43 Objective
$5.7 Billion
$4.4 Billion
150
Actual
Actual
1942-43 Forecast
1942.43 Forecost
100
100
$5.7 Billion
$4.4 Billion
50
VALUE PUT IN PLACE- MILLIONS PLACE-MILLIONS OF DOLLARS
o
0
1942
1943
1942
1943
Tankers-Ocean Going
Other Merchant Vessels
60
25
1942-43 Objective
1942-43 Objective
$0.90 Billion
$0.35 Billion
20
40
1942-43 Forecost
1942-43 Forecost
Forecost
$0.90 Billion
10.35 Billion
Forecast"
15
10
20
Actual
Actual
5
0
0
1942
1943
1942
1943
Bosed on schedules of procurement agencies 01 of August I. P Premium
WAR PROGRESS
20 CONFIDENTIAL
WAR PROGRESS
WAR TRENDS IN LABOR TURNOVER
All Manufacturing
Foundries and Machine Shops
10
10
8
8
Total
Accessions
Total
Accessions
6
6
Net Accessions
Net Accessions
4
Total
Total
4
Separations
Separations
Other
Other
Layoffs
Loyoffs
2
2
Quits
Quits
RATE PER 100 EMPLOYEES
o
o
1940
1941
1942
1940
1941
1942
Blast Furnaces , Steel Works,
RATE PER 100 EMPLOYEES
Bross, Bronze, and
and Rolling Mills
Copper Products
6
10
Total Accessions
5
8
Net Separations
Total Accessions
4
6
Net
Separations
3
Layotfs
Net
A
Other
Accessions
Net Accessions
4
2
Total
Total
Separations
Separations
Layoffs
Other
2
I
Quits
Quits
o
o
1940
1941
1942
1940
1941
1942
WAR PROGRESS
AUGUST 14,1942
CONFIDENTIAL
21
ECONOMIC ACTIVITY RELATED TO THE WAR
1940
1941
1942
July
June
March
April
May
June
LABOR TURNOVER
ALL MANUFACTURING
(Rate per 100 employees)
Total accessions
4.77
6,31
6.99
7.12
7.29
8.25
Total separations
3.35
3.71
5.36
6.12
6.54
6.46
Quits
0.85
2.06
3.02
3.59
3.77
3.85
Layoffs
2.25
1.03
1.19
1.31
1.43
1.21
Discharges
0.14
0.26
0.33
0.35
0.38
0.38
Military separations
n.a.
0.26
0.63
0.68
0.68
0.78
11 MAJOR WAR INDUSTRIES
Total accessions
5.09
6.97
8.90
8.86
r 8.92
10.09
Total separations
1.85
3.09
4.91
5.32
r 5.93
5.92
Quits
0.84
1.73
2.91
3.22
r 3.51
3.61
Layoffs
0.73
0.62
0.61
0.68
0.77
0.64
Discharges
0.15
0.29
0.42
0.43
0.47
0.48
Military separations
n.a.
0.26
0.73
0.83
0.82
0.93
AIRCRAFT
Total accessions
12.40
10.77
9.54
10.31
10.38
11.91
Total separations
3.57
3.21
5.60
5.29
5.67
5.14
Quits
2.96
2.33
3.70
3.79
4.06
3.60
Layoffs
0.15
0.32
0.12
0.14
0.07
0.05
EXPLOSIVES
Total accessions
4.30
7.82
4.48
3.85
4.66
4.83
Total separations
1.32
2.47
3.04
3.50
3.17
4.05
Quite
0.73
1.16
1.95
1.92
1.93
2.43
Layoffs
0.40
0.55
0.09
0.26
0.11
0.02
FIREARMS
Total accessions
n.a.
15.47
10.24
8.88
r 10.81
6.88
Total separations
n.a.
1.54
4.90
4.75
r 6.13
6.10
Quite
n.a.
1.20
3.79
3.88
r 4.85
4.29
Layoffs
n.a.
0.20
0.06
0.04
0.10
0.46
SHIPBUILDING
Total accessions
13.00
12.12
18.15
16.44
16.56
17.38
Total separations
5.40
6.00
7.13
7.25
9.22
9.41
Quite
1.14
2.37
4.27
4.29
5.20
5.71
Layoffs
3.71
2.71
1.26
1.29
1.43
1.37
MACHINE TOOLS
Total accessions
3.05
6.28
7.89
7.48
7.05
7.69
Total separations
2.09
2.84
3.77
4.84
4.56
4.35
Quite
1.28
1.99
2.75
3.50
3.17
2.86
Layoffs
0.21
0.15
0.11
0.07
0.12
0.09
Graph appears on opposite page.
r Revised
n.a. Not available
a Includes aircraft: explosives; firearms; shipbuilding: machine tools; brass, bronze,
and copper products; engines and turbines; electrical machinery; blast furnaces, steel
works, and rolling mills; aluminum; and foundries and machine shops. Data for July,
1940 and March, 1942 are for seven industries excluding engines and turbines, aluminum,
explosives, and firearms.
22
CONFIDENTIAL
WAR PROGRESS
ECONOMIC ACTIVITY RELATED TO THE WAR
1940
1941
1942
July
July
April
May
June
July
TRANSPORTATION
Freight carloadings (thous.
Total
per wk.)
706
853
838
834
846
830
Coal, coke, and ore
198
236
234
264
269
255
All other
508
617
604
570
577
575
Miscellaneous
273
356
376
376
382
379
Less than carload lots
142
151
131
98
94
86
Grain and livestock
61
67
48
47
50
59
Forest products
32
43
49
49
51
51
Freight carloadings as
percent of capacity
Total
80.0
91.6
85.5
84.8
85.9
83.7
Coal, coke, and ore
80.5
90.0
84.9
95.5
97.3
91.7
All other
77.6
90.2
83.7
78.8
79.4
78.6
Unloads for export (no. per
Total
mo.)
49,781
54,982
74,061
72,228
73,188
72,102
Atlantic coast ports
32,598
37,842
51,153
43,515
44,170
39,566
Gulf coast ports
13,724
12,207
10,902
14,796
14,317
13,702
Pacific coast ports
3,459
4,933
12,006
13,917
14,701
18,834
Freight equipment (1st of mo
Total cars
thous.)
Owned
1,645
1,661
1,718
1,726
1,731
1,736
Serviceable
1,492
1,576
1,658
1,664
1,668
1,679
Active
1,365
1,496
1,601.
1,608
1,588
1,597
Coal, coke, and ore cars
Owned
785
797
818
820
820
824
Serviceable
701
749
787
790
790
796
Active
655
722
770
778
781
782
All other cars
Owned
860
864
900
906
911
912
Serviceable
791
827
871
874
878
883
Active
710
774
831
830
807
815
a Peak capacity represents full utilization of all serviceable cars at the highest utili-
zation rate since the beginning of the defense program. For total carloadings, the
peak utilization rate was .591 carloadings per active car (June, 1941); coal, coke, and
ore, .350 carloadings per active car (August, 1941); all other, .828 carloadings per
active car (June, 1941).
WAR PROGRESS
Confidential
(Britisk-Secret)
24 12445 BA KIR - will - (II)
Disability -
Dj MAR 2 2973
Lend-Lease Exports Recover
from May Setback
Lumber- a Critical Material 7
Number 101
August 21, 1942
CONFIDENTIAL
NUMBER 101
WAR PROGRESS
AUGUST 21,1942
Lend-Lease Exports Stage Comeback
Almost all of drop in May has been recovered.
to Russia (and to other countries) than
Russia gets major share of munitions items,
have left our shores. But lack of mer-
Britain largest total. Shipping space a
chant vessels and the need for convoys
problem.
have slowed up shipments. Moreover,
Nazi attacks during the long Arctic
LEND-LEASE EXPORTS are picking up again.
day have made the Murmansk route dan-
They dropped from a peak of $400,000,-
gerous, though sinkings in recent months
000 in April to $295,000,000 in May be-
have been lower than press reports sug-
cause of a shortage of cargo space, con-
gest. The other major gateway to Rus-
voy difficulties, and an inability to
sia--through Basra inthe Persian Gulf--
reach certain theaters of war. But in
has been relatively free, and the Jap-
June they increased to $375,000,000 and
anese have let Russian vessels with
last month to $395,000,000. So they're
American nonmilitary goods go through
only slightly under the highest month.
their waters to Vladivostok.
The United Kingdom is still our big-
In line with their urgent needs,
gest "lend-leaser," with Russia second
the Russians this year have received
(WP-June26'42,p4); in munitions, Russia
leads Britain proper, but not the Em-
LEND LEASE EXPORTS RISE,
pire. Of the $2,150,000,000 of lend-
OTHER EXPORTS FALL
lease goods exported in the first seven
600
600
months of 1942, Britain got about 43%
and Russia, 28%. The balance went main-
ly to Egypt, Australia and New Zealand,
India, and China (chart, page 4).
400
400
Big Jump in Munitions
In contrast with 1941, when most
lend-lease shipments consisted of agri-
MILLIONS OF DOLLARS
Other Exports
MILLIONS OF DOLLARS
200
200
cultural and industrial commodities,
about 45% of the 1942 exports have been
Lend-Lease Exports
munitions--ordnance and stores, air-
planes and aeronautical materials, tanks
0
o
and other vehicles. Agricultural items
1941
1942
so far this year comprised only 25%,
WAR PROGRESS
and industrial commodities and nonmu-
nitions, 30%.
BEGINNING WITH MARCH, 1942, LEND-LEASE
Russia's proportion of monthly ship-
SHIPMENTS JUMPED INTO LEADING PLACE IN
ments jumped from 8% in January to 40%
THE EXPORT PICTURE. SINCE THEN, THEY
ARE DOMINATING EXPORTS MORE AND MORE,
in April, but has since declined. It
PARTICULARLY IN VIEWOF OF DIMINISHING DE-
is now running at about one-quarter of
LIVERIES ON BRITISH DIRECT-PURCHASE CON-
all lend-lease exports.
TRACTS. THE DOMINION OF CANADA 15 OUR
Much more goods have been available
BIGGEST REMAINING CASH CUSTOMER.
2 CONFIDENTIAL
WAR PROGRESS
more planes, tanks, and trucks than
the British. (In ordnance, the reverse
FINAL
was true.) We sent Russia about half
the 1942 lend-lease tanks and military
MILITARY PLANE production in the
vehicles; two-fifths of the planes and
first 15 days of this month was
parts; and one-fifth of the ordnance
slightly less than in the first 15
and stores, foodstuffs, and industrial
days of last month--$132,800,000,
commodities (chart, page 3). Other
against $134,200,000. Trainer and
shipments include cloth and boots for
service planes bettered the July fig-
the Red Army; machine tools, aluminum,
ures, and so did heavy bombers, but
steel, and rolled brass; huge quanti-
light bombers were off rather sharply.
ties of sugar, flour, wheat, canned
Recently, plane acceptances have
meat, and other foodstuffs.
run increasingly below expectations-
May output was 7% under the monthly
Food for Britain
forecast, June and July, 13%. The
So far this year, 75% of all lend-
lag this month may be even greater;
lease foodstuffs and 50% of industrial
to realize the $423,800,000 forecasts,
and other commodities went to Great
production in the last 16 days must
Britain, compared with 10% of the tanks
be 30% greater than in the correspond-
and other vehicles, 20% of the aircraft
ing period of July.
and 30% of the guns and ammunition.
England's munitions factories are get-
exports have been delivered to the Brit-
ting copper, zinc, aluminum, etc.; her
ish colonies and dependencies. The
farms, machinery, seed, and fertilizers.
British armies in the Middle East are
Major foodstuffs shipped are meat, fish,
fighting with the help of lend-lease
vegetables, fruits, canned goods, and
supplies--ordnance, tanks, trucks, etc.
dairy products.
Munitions exports to Egypt have just
Almost one-quarter of all lend-lease
risen to the highest level since April,
and shipments to Iran and Iraq continue
to move in a fairly steady stream.
IN THIS ISSUE:
Pacific Fighting Zone
Although American troops are in the
LEND-LEASE EXPORTS STAGE COMEBACK 1
Southern Pacific, munitions shipments
to Australia and New Zealand are still
FIVE-STAR FINAL
2
being maintained. (Shipments to U. S.
FROM ABUNDANCE TO SCARCITY
5
troops abroad are not included in lend-
lease exports.) India has received
"PRODUCTION DRIVE"
b
increasing quantities of guns, ammuni-
tion, and trucks. India and Australia
RAW MATERIAL
7
have also received iron and steel for
WAR PROGRESS NOTES
9
their armament plants, while Canada has
obtained parts going into finished mu-
FINANCIAL DATA
11
nitions destined for England. The lat-
ter items are not charged to Canada,
ECONOMIC DATA
19
but to Great Britain.
Lend-lease cargoes have been deliv-
AUGUST 21, 1942
CONFIDENTIAL
3
WHO GETS WHAT IN LEND-LEASE
Military Goods
Nonmilitary Goods
100
160
Ordnance and Stores
Agricultural Commodities
80
All Other
140
Other British Empire
Russia
60
United Kingdom
120
#
40
100
20
80
0
60
Jan.
Feb.
Mar.
Apr.
May
June
1942
100
40
Aircraft and Aircraft Material
80
20
MILLIONS OF DOLLARS
60
0
Jan.
Feb.
Mar.
Apr.
May
June
1942
40
160
Industrial and Other Goods
MILLIONS OF DOLLARS
20
140
0
120
Jan.
Feb.
Mor.
Apr.
May
June
1942
100
100
Tanks and Other Vehicles
80
80
60
60
40
40
20
20
O
0
Jan.
Feb.
Mor.
Apr.
May
June
Jon
Feb.
Mar.
Apr.
May
June
1942
1942
WAR PROGRESS
RUSSIA GOT THE BIGGEST SHARE OF LEND- SHIPMENTS OF LEND-LEASE ORDNANCE, MIL-
LEASE TANKS, TRUCKS, AND AIRPLANES IN ITARY VEHICLES, AND OTHER EQUIPMENT
THE FIRST SIX MONTHS OF THE YEAR, AND WENT TO BRITISH FORCES IN THE MIDDLE
GREAT BRITAINGOT MOST OF THE FOODSTUFFS EAST, MALAYA, HONG KONG, BURMA, Aus-
AND INDUSTRIAL COMMODITIES. BUT LARGE TRALIA, AND INDIA.
4 CONFIDENTIAL
WAR PROGRESS
LEND-LEASE EXPORT SUMMARY
500
500
Total Military Exports
Total Exports
All Other
Other British Empire
400
Russia
400
United Kingdom
300
300
BILLIONS OF DOLLARS
BILLIONS OF DOLLARS
200
200
100
100
0
0
Jan.
Feb.
Mor.
Apr.
May
June
Jon
Feb.
Mar.
Apr.
May
June
July
1942
1942
#
No Breakdown Avoilable.
WAR
PROGRESS
IN JANUARY, LEND-LEASE EXPORTS WERE
GETTING THE LION'S SHARE. RUSSIA AND
DIVIDED AS FOLLOWS: 35% MILITARY, 65%
THE BRITISH EMPIRE CONTINUE TO MONOP-
NONMILITARY, SINCE THEN, THE PROPOR-
OLIZE LEND-LEASE. EXPORTS TO CHINA
TION OF MILITARY SHIPMENTS HAS RISEN
HAVE FALLEN SHARPLY AND TODAY WOULD BE
TO 458 TO 50% OF THE TOTAL, WITH RUSSIA
ONLY A PINPOINT LINE ON THE CHART.
ered to nearly all the major outposts
dribble of supplies has entered in re-
of the United Nations--Burma, Malaya,
cent months. But Latin American repub-
and Hong Kong, before they fell to Ja-
lics, particularly Brazil and Chile,
pan; Malta, Gibraltar, and Cyprus;
are obtaining more munitions and indus-
the island of Bahrein in the Persian
trial commodities.
Gulf, and the Aden protectorate on the
Red Sea; conquered Italian East Africa,
Increasing Importance
the Union of South Africa, Rhodesia,
Lend-lease has become increasingly
Nigeria, Sierra Leone, the Gold Coast,
important in the total export picture,
etc.
too. In December, it accounted for
only one-fourth of all exports, but is
Latin America
now about three-fourths. (Chart, page
Shipments to China and others than
1.) As contracts for cash purchases
Russia and the British Empire repre-
of war goods made in 1940 and 1941 by
sent about 5% of all lend-lease exports
the British government are completed,
this year. The loss of Burma virtually
the lend-lease portion of exports will
closed the door to China, and only a
rise even higher.
CONFIDENTIAL
NUMBER 100
WAR PROGRESS
AUGUST 14,1942
War Output Up Another 15%
July duplicates June gain, indicating that
July production has outstripped the
losses due to materials shortages are
forecast; in others, the forecast is
sporadic, not general. But deliveries are
not even approached. Similarly, in
still below forecast.
some cases July output was twice as
great as June deliveries (small sub-
MUNITIONS ACTIVITY continues to pick
chasers, for example); in others, the
up. Production in July, according to
improvement was moderate (combat planes,
preliminary figures, was 15% higher
merchant ships, etc.):
than in June, duplicating the June gain
over May, and quadrupling the May gain
% June
% July
over April.
Physical Units
Deliveries
Forecast
These month-to-month increases in
output suggest that the overall war ef-
Combat planes
106%
85%
fort is moving along, despite scare
Service planes
137
120
headlines proclaiming plant shutdowns
Trainers
109
93
because of shortages of such critical
Medium tanks
135
114
materials as steel plate, alloy steels,
Light tanks
115
103
copper, etc. The statistics imply that
Large combat
the shutdowns and stoppagesare sporad-
vessels
116
140
ic, rather than general. And any infer-
Small combat
ence that the war effort as a whole is
vessels
146
67
slowing down is unwarranted.
Large subchasers
100
63
Small subchasers
200
62
Behind Forecasts
Minesweepers
120
74
That does not imply that production
Torpedo boats
300
63
is all that it should be. On the con-
Merchant ships
108
96
trary. For example, in July, total
Liberty ships
104
95
munitions output amounted to about $3,-
Tankers
120
100
000,000,000 (preliminary), butthe sched-
90mm. antiaircraft
ules called for $3,250,000,000. Thus
guns
164
133
the lag was around 8%.
40mm. Bofors
150
110
Not all categories are behind fore-
Aircraft ammun
115
57
casts. In actual units delivered, ser-
Bombs (excl. naval)
125
110
vice planes, 75mm. antitank, and 90mm.
Antiaircraft amm
144
218
antiaircraft guns were well above the
Small arms ammun
120
110
July goal; but the number of combat
planes, aircraft ammunition, and minor
Tank assemblies did particularly
navalcraft (minesweepers, torpedo boats,
well. Medium-tank production increased
etc.) were far below the forecast.
35% over June and light-tank 15%. Both
What is apparent is that production
topped the forecast, and only moderate
is uneven in relation to schedules. In
increases in monthly rates of produc-
some cases, as the following table shows,
tion above the July level will be nec-
AUGUST 21, 1942
CONFIDENTIAL 5
From Abundance to Scarcity
Swing from steel, plus increased construction, shift to lumber, increased construction
lifts demand for lumber, while supply drops. and other uses, demand is running to
Result: Restrictions on use of both soft
39,000,000,000 board feet. And new
and hard woods must tighten.
supply in 1942 is actually expected to
drop-to 35,000,000,000 board feet (in-
A YEAR AGO, the lumber industry launched
cludingnet imports of 700,000,000 board
a nation-wide advertising campaign pro-
feet). Consequence: Lumber stocks are
claiming: "Forest products will not
expected to be down to 10,600,000,000
build a field gun or tank, but will re-
board feet at the end of 1942, the lowest
lease materials indispensable for actual
ever recorded. (Chart below.)
fighting tools."
Those were the days when lumber was
Labor and Spare Parts
plentiful, when supply topped demand.
Theoretically, the lumber industry
In 1941, for example, production plus
has capacity to produce more than we
net imports (500,000,000 board feet)
need--at least 44,000,000,000 board feet
was 36,200,000,000 board feet; consump-
annually--but...
tion was 36,000,000,000 board feet.
(1) Iabor is a problem. Logging camps
But this year, as a result of the
and sawmills are losing fallers, buckers,
LUMBER A CRITICAL MATERIAL?
Stocks down 20% in two years.
20
20
15
15
BILLIONS OF BOARD FEET
10
10
Total Mill, Wholesole,
Xand Retail Stocks
BILLIONS OF BOARD FEET
5
5
o
0
1940
1941
1942
Estimated
WAR PROGRESS
UNT MARCH, 1942, LUMBER PRODUCTION AL-
MENTS IN THE SECOND HALF YEAR, ANOTHER
MOST KEPT PACE WITH CONSUMPTION, BUT
1,500,000,00ARD FEET--13% OF OUR PRES-
SINCE THEN INVENTORIES HAVE DROPPED AT
ENT STOCKS--WILL HAVE TO BE DRAWN DOWN.
AN INCREASING RATE. To FILL THE EXPECT-
By THE YEAR'S END, INVENTORIES WILL BE
ED GAP BETWEEN NEW SUPPLY AND REQUIRE-
THE LOWEST ON RECORD,
6
CONFIDENTIAL
WAR PROGRESS
and sawyers to higher-paying shipyards
principally in flooring and furniture,
and aircraft plants, especially on the
but which currently supplants steel in
West Coast. (The lumberman has always
the production of certain munitions,
been a migrant.) The draft is also de-
chiefly ships.
pleting labor supply.
But shifts to more plentiful species,
(2) Transportation equipment is
or even to lower grades of lumber, are
scarce; repair parts are difficult to
only a palliative. They do not cope
obtain; and, in some cases, price ceil-
with thereal problem--the overall short-
1 gs are restricting production.
age. What's needed is a greater utili-
zation of the industry's capacity, no-
Shifting Species
tably in the South.
Chief factors in rising demand are
military construction (cantonments, de-
Rigid Restrictions
pots, airfields, naval stations, war
In the meantime, the use of softwoods
plants, and offshore bases, as well as
(southern pines, Douglas fir, and pon-
ships and boats), and increased output
derosa pine)--which comprise some 85%
of boxes and crates (largely for pack-
of the total lumber supply--is restric-
ing munitions). Here's where the lum-
ted to military and war plant construc-
ber has been going in the past three
tion. And even more rigid restrictions
years:
are being worked out.
For lumber has gone the way of all
Use
1940 1941 1942
importantraw materials; once plentiful,
(Est.)
it's now moving onto the scarcity list,
Military construction.
4%
1.C%
23%
creating new problems.
Civilian construction.
69
63
47
Boxing and crating
13
14
18
Manufactures
11
11
11
"Production Drive"
Exports
3
2
1
WPB's joint management- labor committees
have lifted output noticeably in some
One result of the lumber pinch is
plants; are most effective where good
wholesale shifting from one species of
labor relations already exist.
wood to another. Douglas fir, for ex-
ample, is replacing imported teakwood
BACK IN MARCH, the War Production Board
in battleship decking. And because
launched its drive for joint management-
Douglas fir supplies are tight, southern
labor committees to speed up production.
pines have been substituted for it in
Since then, such committees have been
construction, crating, and other uses.
established in about 1,300 plants. Al-
Now southern pines are tight, so users
though statistics are almost nonexist-
are switching to white fir and redwood.
ent, it is nevertheless known that the
plan has lifted production considerably
The Real Problem
in individual plants.
Yellow birch and gumwoods are being
substituted for imported mahogany in
Four Crucial Factors
aircraft wing coverings, industrial
Field investigations suggest that
patterns, pontoons, subchasers, and
workers respond best when labor-manage-
"mosquito" bouts. Red oak may soon re-
ment relations are good to begin with.
place white oak, which has been used
The investigators found that four major
AUGUST 21, 1942
CONFIDENTIAL
7
factors underlie all committee efforts
4. War work: When the management fails
to get a sustained stepup in output:
to demonstrate that war production is
They are:
the sole consideration for speed-up
1. Financial incentives: Workers tend
measures, workers will soon resume their
to slacken in their efforts when they
old pace and may also become indifferent
feel that the benefits from increased
or hostile. Field investigators found
production go to the management, with
that it is difficult, if not impossible,
little or no gain for the employees.
to get hearty cooperation when nonwar
The individual worker wants to partic-
projects are undertaken side by side
ipate in the financial gains resulting
with armaments production.
from his labor-and-time-saving sugges-
tions; he wants bonuses for extraordinary
efforts. As one worker put it: "There
Raw Material
just isn't anything that makes you work
as hard as some of Uncle Sam's folding
TUNGSTEN, TIN, AND BULLETS
money. Similarly, where fees and roy-
THE ARMY AND NAVY ferrying services are
alties are paid for ideas, workers be-
bringing back critical materials from
gin to think harder about possible im-
China as well as returning pilots. The
provements than when rewarded with cer-
materials are sent from China to Cal-
tificates or speeches.
cutta and thence by rail to Karachi,
2. Guarantees of piece rates: "All-
where they are picked up by our planes
out" production depends very much on
and flown across Africa to Brazil and
whether or not the workers believe that
the United States. In the two months
higher output per hour will not result
ending July 15, the following items were
in a downward revision of piece rates.
brought in:
Furthermore, workers want it understood
that supernormal efforts made now will
Tungsten
79 tons
not establish new yardsticks for pro-
Tin
47
11
duction and wage rates in the postwar
Mica
20 "
period. (Agreements to that effect have
Silk
70 If
already been written into contracts
Bristles
32 "
signed recently by companies and unions.)
3. Labor relations: When management
The Naval Air Transport Service has
and labor representatives are at logger-
flown beetles, needed to combat the
heads to begin with, a joint committee
weevil which is destroying Manila hemp
will accomplish little. The success or
plants, from the Fiji islands to Hon-
failure of the production drive, there-
duras.
fore, depends largelyon the quality of
OVERHEATED RUBBER
the relations already existing between
a company and its workers. Patriotic
ROAD FRICTION generates 25% to 50% more
appeals are not always effective.
A
heat in synthetic rubber tires than in
union is apt to stick to its tradition-
those made of natural rubber. This is
al opposition to speed-up policies if
tough on ordinary cotton carcasses. But
its relations with management are nori-
carcasses made of high tenacity rayon,
monious and its status as a bargaining
a superstrong yarn now being used in
agency is not secured through contracts
airplane, military truck, and large com-
with the company.
mercial tires, stand up better. What's
8
CONFIDENTIAL
WAR PROGRESS
more, they can be made in lower gauges
increase in accidents are: longer work
(thinner, in other words) than ordinary
weeks and longer hours; the influx of
cotton cords, hence require less rubber
inexperienced and older workers; oper-
in the coating process.
ation of novel machines designed for or
U. S. output of high tenacity rayon
converted to war production; lack of
is running at a record rate-48,000,000
safety devices, which cannot always be
pounds annually. Most of this goes into
promptly installed because of shortages
heavy duty tires. But if synthetic tire
of materials.
] coduction is to expand, an additional
The Bureau of Labor Statistics isnow
100,000,000 pounds may be needed. Half
setting up a reporting system to collect
of this could be obtained by converting
month-by-month information on industrial
plants now making regular rayon.
accident trends.
Meanwhile, experiments are being made
to develop a special low-gauge cotton
WPA SCRAP HUNT
cord to withstand intense heat. More-
SINCE APRIL, WPA workers have been hunt-
over, technological advances in synthet-
ing for scrap along the back roads of
ic rubber manufacture may overcome the
the country. So far, they have col-
heat handicap.
lected 54,000 tons of metal, 2,400 tons
ACCIDENTS OUTPACE EMPLOYMENT
of rubber, and quantities of other ma-
terials. One sixth of all WPA employees
INDUSTRIAL ACCIDENTS rose 46% in21,400
in Mississippi collected 15,500 tons
manufacturing plants last year, while
of metal, the Wisconsin total was 10,-
employment advanced only 21% and man-
500 tons, and Oklahoma and Michigan,
hours, 26%.
Reasons for this vartime
4,100 tons each.
AUGUST 21,1942
CONFIDENTIAL
9
hours to a new high of 106.8. In each
War Progress Notes
sector Saturday and Sunday employment
was higher than in June, although the
HOURS AND EARNINGS IN WAR INDUSTRIES
percentage increases were smaller than
OVERTIME WORK in eleven selected war
those for regular weekday employment.
industries raised the average work week
BOND SALES DROP AGAIN
to 46.5 hours in June-up 2.2 hours from
a year ago and 4 hours higher than all
SALES OF WAR BONDS were $145,000,000
manufacturing industries combined (see
for the week ended August 15-down $49,-
chart, page 20). Wage earners averaged
000,000 from the preceding week. To
more than 50 hours a week in machine
reach the Treasury goal of $1,000,000,-
tools and accessories, pumps, sewing
000 for August, weekly sales must aver-
machines, and miscellaneous machinery
age $225,000,000.
industries.
Greatest increases over May occurred
COST OF LIVING
in brass, bronze, and copper products
RISING FOOD PRICES boosted the cost-of-
(1.2 hours); smelting and refining (0.9);
living index to 116.9 for July--up 0.5
and engines, turbines, waterwheels and
points from June and 11% higher than a
windmills (0.9). Only four of the 43
year ago. Clothing, rent, and other
durable-goods industries reporting av-
living costs combinedremained unchanged.
eraged less than 40 hours a week in June.
(Chart, page 19.) July food prices were
These were the brick, glass, pottery,
17% higher than a year ago; other living
and marble-granite-slate industries,
costs have risen only 8%.
which are affected by restrictions on
TRAINING WAR WORKERS
private building.
Hourly earnings inJune averaged 84.0
SOME 2,400,000 WORKERS finished Office
cents for all manufacturing and 99.7
of Education training courses for war
cents for eleven selected war industries,
industries during the 1942 fiscal year
compared with 73.8 and 87.9 cents last
--more than twice the number trained
June. Wage boosts, overtime premiums,
the preceding year (chart, page 22).
and shifts of workers from low to high-
More than 390,000 completed courses
wage industries are major factors in the
in engineering, science and management
rise.
--over six times the number last year.
Supplementary courses to aid in upgrad-
AIRCRAFT PLANT UTILIZATION
ing workers were completed by 857,000,
EMPLOYMENT in the aircraft industry was
compared with 348,000 last year. Pre-
3.6% higher in July than in June.
In
employment and refresher courses show
airframe and engine plants, the in-
similar gains.
creased employment was about equally
In-plant and on-the-job training have
distributed between the first shift and
recently been accelerated under the
second and third shifts, so little change
Training Within Industry Program. From
occurred in the plant utilization in-
Sept., 1941, to the end of July, 158,-
dex.
000 lead men and supervisors in plants
In propeller plants, employment on
employing almost 4,500,000 workers had
the first shift increased only 1%, while
received job instruction training. Of
second and third shifts combined in-
these, more than half were trained in
creased 15%-plant utilization rose 3.7
the last three months.
10 CONFIDENTIAL
WAR PROGRESS
THE WAR PROGRAM- Financial Summary
300
300
250
250
200
200
BILLION DO
150
150
PROGRAM
(Appropriations and Net Authorizations)
BILLION DOLLARS
100
100
50
50
CONTRACT AND
OTHER COMMITMENTS
o
VALUE OF PRODUCTION
0
J A S 1940 o N D J F M A M J J A S 0 N D J F M A M J J A S o N D
1941
1942
WAR PROGRESS
AUGUST 21,1942
CONFIDENTIAL
II
WAR PROGRESS SERIES
TOTAL WAR PROGRAM IN THE UNITED STATES
Cumulative 6/11/40 to
Monthly
End 1st
End of
End of
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
TOTAL WAR PROGRAM IN THE U.S.ᵃ
(Million
dollars)
Program-Pending
P 9,525
Program-Enacted
40,861
80,604
P 174,384
0
P 5,615
P 44,471
Uncommitted balance
9,274
23,979
P 40,290
-
-
-
Contracts and other
commitments
31,587
56,625
P 134,094
P. 9,731
P 12,098
n.a.
Value delivered and/or in
place b
8,547
18,573
P 39,222
P 4,060
P 4,602
n.a.
Checks paid c
8,536
17,965
P 37,562
3,925
p 4,156
P 4,824
MUNITIONS PRODUCTION.& WAR CONSTRUCTION,
TOTAL
Program
37,027
69,305
P 156,214
0
P 5.358
P 32,543
Uncommitted Balance
7.597
18,281
P 33,761
-
-
-
Contracts and other
commitments
29,430
51,024
P 122,453
P 9,107
p 9,999
n.a.
Value delivered and/or
in place
b
6.795
14,750
P 32,184
P 3,465
P 3,882
n.a.
Value not delivered nor
in place
22,635
36,274
P 90,269
-
-
-
PRODUCTION OF MUNITIONS
Program
28,566
53.738
p 124,097
-25
P 4,756
p 29,952
4,901
13,929
-
-
-
Uncommitted balance
P 29,106
Contracts and other
commitments
23,665
39,809
P 94,991
p 6,668
P 6,942
n.a.
Value delivered and/or
in place
e
4,290
8,940
20,449
2,248
2,638
P 3,044
Value not delivered nor
in place
19,375
30,869
a
74,542
-
-
-
WAR CONSTRUCTION
Program
8,461
15,567
P 32,117
25
P
602
P
2,591
Uncommitted balance
2,696
4,352
P 4,655
-
-
-
Contracts and other
5.765
11,215
P 27,462
P 2,439
P 3,057
n.a.
commitments
Value delivered and/or
in place
b
2,505
5,810
P 11,735
P 1,217
P 1,244
n.a
Value not delivered nor
in place
3,260
5,405
P 15,727
-
-
-
NON-MUNITIONS WAR ITEMS, TOTAL
11,299
P 18,170
0
P
Program
3,834
257
P 11,928
-
Uncommitted balance
1,677
5,698
P 6,529
-
-
Contracts and other
2,157
5,601
P 11,641
P
624
P 2,099
n.a.
commitments
1,752
3,823
P 7,038
P
595
P
720
n.a.
Checks issued
For footnotes see Page 18.
Graph appears on opposite page.
Table continued on Page 13.
12 ... CONFIDENTIAL
WAR PROGRESS
MUNITIONS PRODUCTION- Financial Summary
154
150
150
125
125
100
100
BILLION DOLLARS
PROGRAM
(Appropriations and Net Authorizations)
75
75
BILLION DOLLARS
50
50
CONTRACT AND
25
OTHER COMMITMENTS
25
0
VALUE OF PRODUCTION
0
J
A S o N D J F M A M J J A S 0 N D J F M A M J J A S 0 N D
1940
1941
1942
WAR PROGRESS
AUGUST 21,1942
CONFIDENTIAL ... 13
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million dollars'
BREAKDOWN OF MUNITIONS PRODUCTION
MUNITIONS PRODUCTION, TOTAL
Program
28,566
53.738
P124,097
-25
P 4,756
P 29,952
Uncommitted balance
4,901
13,929
p 29,106
-
-
-
Contracts and other
commitments
23,665
39,809
P 94,991
p 6,668
P 6,942
n.a.
Value delivered and/or
in place b
4,290
8,940
20,449
2,248
2,638
P
3,044
Value not delivered nor
in place
19,375
30,869
P 74,542
-
-
-
AIRPLANES, PARTS & ACCESSORIES
Program
8,582
15,072
P 37,586
o
P
-215
P 9.737
Contracts and other
commitments
7,381
13,298
P 33,945
P
2,409
P
2,838
n.a.
Value delivered
1,010
2,265
4,752
471
510
P
565
ORDNANCE
Program
7,778
17,488
P 36,400
0
P
285
P 9,548
Contracts and other
commitments
5,418
10,354
P 26,873
P 2,278
P
2,360
n.a.
Value delivered
700
1,685
4,998
6966
731
P
918
NAVAL SHIPS
Program
6,796
9,605
p 18,460
0
P
2,922
P
o
Contracts and other
commitments
6,442
7,930
P 12,276
275
P
276
n.a.
Value delivered and/or
in place
810
1,665
3,383
399°
404
P
494
MERCHANT SHIPS
Program
1,442
3,288
P
8,653
-25
P
1,054
P
0
Contracts and other
commitments
1,484
2,381
P 6,880
P
607
P
618
n.a.
Value in place
240
510
1,188
131
176
187
OTHER MUNITIONS AND SUPPLIES
Program
3,968
8,285
P 22,998
0
P
710
P 10,667
Contracts and other
commitments
2,940
5,846
P
15,017
P 1,099
P
850
n.a.
Value delivered
1,530
2,815
6,128
551
817
P
880
Graph appears on opposite page.
For footnotes see Page 18.
Table continued on Page 15.
14 CONFIDENTIAL
WAR PROGRESS
WAR CONSTRUCTION- Financial Summary
50
50
40
40
30
30
BILLION DOL
PROGRAM
(Appropriations and Net Authorizations)
BILLION DOLLARS
20
20
CONTRACT
AND OTHER
COMMITMENTS
10
IO
VALUE OF PRODUCTION
0
o
J A S O N D J F M A M : J A S 0 N D J F M A M J J A S 0 N D
1940
1941
1942
WAR PROGRESS
2
CONFIDENTIAL
WAR PROGRESS
essa tomeet the full-year objective.
delivered in July, and this program,
In contrast, plane manufacture con-
which got under way only in March and
tinued to lag. We built more trainers,
April, is further behind than any other
pursuit craft, flying boats, and heavy,
on the Navy's docket.
medium, and single-engined light bomb-
By comparison, we didn't do so bad-
ers than in June, but not 80 many as
ly in merchant vessels. Launching of
forecast. Delivery of twin-engined
Liberty shipswas 5% under the forecast;
light bombers declined sharply because
tankers were up to the mark. But we
two major plants ran below their sched-
have two thirds togo--in the five months
ules;and output ofNavy fighters dropped.
left-to reach the 1942 merchant ship
As a whole, on the basis of the latest
goal.
forecasts, it appears that 1942 plane
output will fall considerably below the
Gun Progress Mixed
accepted objective.
July output of large guns was mixed.
Production of wheeled artillery lagged
Small Ship Deliveries Lag
--exceptfor the 105mm. howitzer--main-
July was 8. good month for deliveries
ly because some of the guns were expect-
of large combat vessels. Twice as many
ed to come into production and didn't.
small destroyers were delivered as in
However, we turned out more antitank
June, and large destroyer and light
and antiaircraft weapons than in June--
cruiser deliveries equalled the June
especially thelight self-propelled anti-
figures. However, work on ships sched-
tank gun and the 40mm. Bofors and 90mm.
uled to be delivered in 1943 and later
antiaircraft guns; and two important
is actually falling behind this year's
field pieces came into production for
objective.
the first time.
And the small-combat-vessel program
The record for small arms and infan-
lost more ground. July production of
try weapons was not imposing. Manufac-
torpedo boats, subchasers, and mine-
ture of .45 caliber submachine guns,
sweepers was impressive compared with
.30 caliber machine guns, .30 caliber
June but was 30% to 40% below the fore-
carbines, and 60mm. mortars was much
cast. Few small landing vessels were
below the forecast, while the .30 cal-
iber Springfieldand Garand rifles just
reached it. However, about twice as
many Browning automatics were delivered
IN THIS ISSUE:
as the forecast called for.
Ammunition Gains
WAR OUTPUT UP ANOTHER 15%
1
July loading of amminition was the
CRACKS APPEAR IN PRICE CEILING
4
most promising to date. In a najority
of items-for example, armor piercing
RAW MATERIAL
7
ammunition-loadingsran above schedule
and considerably beyond June totals.
WAR PROGRESS NOTES
9
Exceptions were aircraft and mortar am-
FINANCIAL DATA
11
munition. Rate of output of these, how-
ever, is expected to increase when new
ECONOMIC DATA
19
plants come into production late this
year and early next (WP-July24'42,16).
AUGUST 21,1942
CONFIDENTIAL ... 15
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End lst
End of
End of
SUMMARY
full year
June
May
June
December
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million dollars)
BREAKDOWN OF WAR CONSTRUCTION
WAR CONSTRUCTION, TOTAL (LAND, BLDGS., EQUIP.)
Program
8,461
15,567
P 32,117
25
P
602
P 2,591
Uncommitted balance
2,696
4,352
P 4,655
-
-
-
Contracts and other
commitments
5,765
11,215
P 27,462
P 2,439
P 3,057
n.a.
Value in place
2,505
5,810
P 11,735
P 1,217
P 1,244
n.a.
Value not in place b
3,260
5,405
P 15,727
-
-
-
INDUSTRIAL FACILITIES (LAND, BLDGS., EQUIP.)
Program
5,120
8,112
P 17,610
25
P
707
P
172
Contracts and other
commitments
2,865
6,318
P 16,697
P 1,047
P 1,592
n.a.
Value in place
960
2,800
P 5,990
P
629
P
615
n.a.
INDUSTRIAL FACILITIES, BUILDINGS ONLY
Program
1,607
3,137
n.a.
P
389
n.s.
n.a.
Value in place
575
1,753
P
2,990
P
287
P
307
P
344
POSTS, DEPOTS, STATIONS
Program
2,849
6,063
P 13,115
0
P -105
P 2,419
Contracts and other
commitments
2,625
4,381
P 9,890
p 1,317
P 1,390
n.a.
Value in place
1,430
2,670
P 5,179
P
545
p
580
n.a.
DEFENSE HOUSING
Program
492
1,392
P 1,392
0
P
o
P
o
Contracts and other
commitments
275
516
P
875
P
75
P
75
n.a.
Value in place
115
340
P
566
P
43
P
49
n.a.
BREAKDOWN OF NON-MUNITIONS
NON-MUNITIONS, TOTAL
Program
3,834
11,299
P 18,170
0
P
257
P 11,928
Uncommitted balance
1,677
5,698
P 6,529
-
-
-
Commitments
2,157
5,601
P 11,641
P
624
P 2,099
n.a.
Checks issued by agencies
b
1,752
3,823
P 7,038
P
595
P
720
n.a.
STOCKPILE
Program
983
2,399
P 2,713
0
P
0
P
0
Commitments
470
1,050
P 1,140
P
30
P
0
n.a.
Checks issued by agencies
192
488
P
1,011
P
102
P
100
n.a.
Graph appears on opposite page.
Table continued on following page.
For footnotes see Page 18.
16 ... CONFIDENTIAL
WAR PROGRESS
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million
dollars)
BREAKDOWN OF NON-MUNITIONS (Continued)
AGRICULTURAL EXPORTS (LEND-LEASE)
Program
625
1,522
P 2,138
o
P
0
P
0
Commitments
66
561
P 1,143
P
65
P
149
n.s. a.
Checks issued by agencies
1
211
P
629
87
P
90
n.a. n.
PAY, SUBSISTENCE & TRAVEL f
Army Military
Program
944
3,013
P
3,904
0
P
0
P 8,534
Commitments
934
2,030
p 3,849
P
281
P
285
n.a.
Checks issued
696
1,510
P
2,744
P
220
P
315
n.a.
Navy Military
Program
378
963
P
2,478
0
P
232
P
0
Commitments
334
610
P
1,143
P
110
P
104
n.n.
Checks issued
388
642
P
1,042
P
70
P
98
n.e.
Civilian Payroll
Program
32
247
P
299
0
P
46
P
542
Commitments
32
140
P
255
P
15
P
20
n.a.
Checks issued
356
682
P 1,115
P
79
P
80
n.a.
MISCELLANEOUS NON-MUNITIONS
Program
872
3,155
p 6,638
0
P
-21
P 2,852
Commitments
321
1,210
P 4,111
P
123
P 1,541
n.a.
Checks issued by agencies
119
290
P
497
P
37
P
37
n.a.
P Preliminary
Table continued on following page.
For footnotes see Page 18.
AUGUST 21,1942
CONFIDENTIAL ... 17
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End lst
End of
End of
SUMMARY
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million
dollars)
d
BREAKDOWN OF
AGENCIES
UNITED STATES FINANCED WAR PROGRAM
Program
37,075
76,508
P 170,288
0
P 5,615
P 44,471
Uncommitted balance
9,274
23,979
P 40,290
-
-
-
Contracts and other
commitments
27,801
52,529
p. 129,998
P 9,731
P 12,098
n.a.
Checks paid
6,431
15,251
P 34,510
3,880
P 4,123
P
4,794
U. S. ARMY
Program
13,134
31,981
P 84,468
0
P
0
P 42,090
Contracts and other
commitments
P 70,402
P
11,404
23,334
6,138
P 8,397
n.a.
Checks paid
3,636
7.889
15,649
1,497
1,662
n.a.
U. S. NAVY
Program
12,308
20,024
P 47,990
0
P 4,355
r
0
Contracts and other
commitments
11,182
16,327
P 32,325
P 1,971
P 2,361
n.a.
Checks paid
2,217
4,726
10,128
1,229
1,237
n.a.
LEND-LEASE
Program
7,000
12,985
P 18,410
0
P
0
P
o
Allocations
5,177
11,345
14,085
508
-281
n.a.
Contracts and other
commitments
2,458
6,282
10,665
305
484
n.a.
Checks paid
21
910
4,099
626
665
n.a.
U. S. MARITIME COMMISSION
Program
784
2,734
P 7,654
0
P 1,070
P
0
Contracts and other
commitments
886
1,724
P
6,333
608
P
631
n.a.
Checks paid (Net)®
44
156
642
93
114
n.a.
RFC AND SUBSIDIARIES
Program
2,623
5,130
P 7.704
0
P
0
P
0
Contracts and other
commitments
1,151
3,569
P 7,916
P
509
P
0
n.a.
Checks issued by RFC
350
956
P 2,510
327
P
300
P
300
OTHER U. S. AGENCIES
Program
1,226
3,654
P 4,062
o
P
190
0
2,381
Contracts and other
commitments
720
1,293
P 2,357
P
200
P
225
n.a.
Checks paid
163
614
1,482
108
145
n.a.
FOREIGN ORDERS
Program (Orders)
3,786
4,096
P 4,096
0
e
0
P
0
Commitments
3.786
4,096
P 4,096
0
e
0
P
0
Checks issued by
Purchasing Missions
2,105
2,714.
P 3,052
45
P
33
P
30
18 CONFIDENTIAL
WAR PROGRESS
FOOTNOTES
WAR PROGRESS SERIES
n.a. Not available
P Preliminary
r Revised.
a Total war program includes all funds and authorizations made available for
war purposes by the United States Government plus foreign orders placed in
this country since November 1939. The major portion of the existing pro-
gram has been approved since June 11, 1940, but some authorizations (par-
ticularly portions of the naval expansion program, the merchant shipbuild-
ing program, and the stockpile program) were made available even earlier.
All funds are shown during the fiscal year in which they are available for
obligation.
b Value delivered and / or in place includes (1) value delivered and/or in
place for ships and value of production for other munitions, (2) value in
place for war construction, and (3) checks issued by finance officers for
non-munitions items.
c Checks paid include (1) all checks paid out of the Treasury General Fund;
(2) checks issued by the Reconstruction Finance Corporation and subsidiary
Government corporations;(3) checks issued by foreign purchasing commissions.
d United States financed program includes the war activities of all United
States Government agencies (including Lend-Lease) plus the war activities
of government owned corporations, but does not include foreign orders.
e Report on checks paid by the Treasury for the account of the Maritime Com-
mission makes allowance for receipts credited to the Construction Loan Fund.
f Program and obligations for pay for civilians and for the Navy include
only that specifically mentioned in appropriation bills, while the cash
disbursement figures include, in addition, executive war pay which cannot
be separately distinguished in the appropriation bills.
B Ordnance and naval ships figures revised back to January 1942. In compar-
ing these with prior figures. ordnance and naval ships should be combined.
AUGUST 21, 1942
CONFIDENTIAL
19
KEEPING TRACK OF THE COST OF LIVING
120
120
100
100
Food
80
80
POINTS IN INDEX 1935 1939 100
Clothing
60
60
House Furnishings
Fuel, Electricity & Ice
POINTS IN INDEX 1935 1939 100
40
Rent
40
20
20
Miscellaneous
o
0
1940
1941
1942
WAR PROGRESS
ECONOMIC ACTIVITY RELATED TO THE WAR
1940
1941
1942
Week ending
July
July
June
July
Aug. 8
Aug. 15
BLS PRICE INDEXES
Stretegic materials)
123.6
140.3
147.6 0. 147.5
147.5
147.5
Critical materials
8/39
107.5
115.2
123.2
D. 123.9
123.9
123.9
Basic commodities
=100
108.5
148.7
166.4
167.2
166.9
167.2
Machine tools
108.7
117.6
118.0
118.0
-
-
All commodities (1926=100)
77.7
88.8
P. 98.6
D
98.7
P.
98.6
D
98.9
TRANSPORTATION
Freight cars
Loadings (thous. per week)
706
853
846
830
850
869
Unloads for export (dly. av.)
Atlantic & Gulf norts (no.) 1,494
1,614
1,950
1,718
1,838
1,820
Pacific ports (no.)
112
159
490
608
773
727
Surplus cars (dly. av. thous.)
Total
132
77
83
77
67
Box cars
55
30
57
47
43
Coal cars
48
27
9
12
7
Bad order cars, total.
first of month (thous.)
153
85
63
57
Aug.1).55
ELEC. POWER PROD. (mil. kwh.)
12,094
14,226
r 15,182
16,004
3,637
WAR BOND SALES (mil. dollars)
-
342
634
901
194
145
20 CONFIDENTIAL
WAR PROGRESS
AVERAGE HOURS
AVERAGE HOURLY EARNINGS
WORKED PER WEEK
CENTS
HOURS
no
55
Mochine Tools
100
50
Shipbuilding
90
Aircraft
45
Aircroft
Mochine Tools
80
Shipbuilding
40
All Manufacturing
All Manufacturing
70
Industries
35
60
JASOND J FMAM J. J A S 0 N D J F MAMJ
JASOND JFMAMJ JASONDJFMAMJ
1940
1941
1942
1940
1941
1942
AVERAGE WEEKLY EARNINGS
COST OF LIVING
1935-39 = 100
DOLLARS
INDEX
60
120
55
110
Shipbuilding
1938- 42
50
100
Present Wor begon
45
Sept 2, 1939
Machine Tools
90
40
Aircraft
1913- 18
80
35
70
30
World War began
All Manufacturing
July 28, 1914
Industries
25
60
J A S 0 N D J FMAM J J A S o N D J F M A M J
1938
1939
1940
1941
1942
1940
1941
1942
1913
1914
1915
1916
1917
1918
AUGUST 21, 1942
CONFIDENTIAL
21
ECONOMIC ACTIVITY RELATED TO THE WAR
1940
1941
1942
July
July
April
May
June
July
BLS COST OF LIVING INDEX
All items
1935-39
100.3
105.3
115.1
116.0
116.4
116.9
Food
- 100
97.4
106.7
119.6
121.6
123.2
124.6
Rent
*104.6
106.1
109.2
109.9
108.5
107.7
AVERAGE HOURS WORKED PER WEEK
All manufacturing industries
37.3
40.3
42.4
42.6
42.6
Durable goods
37.9
41.5
44.7
45.0
45.1
Nondurable goods
35.7
39.0
39.7
39.7
39.6
11 selected war industries
combined
39.3
43.1
46.3
46.5
46.5
Machine tools
47.5
50.9
53.9
54.1
53.8
Aircraft
42.0
44.8
47.2
47.5
47.2
Shipbuilding
39.3
44.8
49.2
48.8
48.2
AVERAGE HOURLY EARNINGS (Cents)
All manufacturing industries
66.7
74.4
81.9
83.1
84.0
Durable goods
72.7
82.6
91.0
92.3
93.3
Nondurable goods
61.5
65.7
71.4
72.2
72.7
11 selected war industries
combined
78.6
88.9
97.6
98.7
99.7
Machine tools
76.8
84.1
94.4
96.5
97.4
Aircraft
73.8
81.2
96.6
97.8
99.6
Shipbuilding
86.2
101.3
108.0
109.0
109.2
AVERAGE WEEKLY EARNINGS (Dollars)
All manufacturing industries
25.25
31.22
36.63
r 37.43
37.99
Durable goods
28.52
35.84
42.57
r 43.40
44.06
Nondurable goods
21.87
25.07
r 27.78
r 28.24
28.23
11 selected war industries
combined
30.76
38.66
45.31
45.92
46.43
Machine tools
36.45
42.80
50/79
52.24
52.47
Aircraft
30.48
36.57
45.94
45.81
46.75
Shipbuilding
34.03
45.54
53.30
53.67
52.82
PLANT UTILIZATION
Aircraft Industry
Airframes
(Equivalent
hours of
full capacity operation
All plants
n.a.
76.2
88.0
87.0
86.5
87.2
Three best plants
n.a.
97.0
114.1
109.6
105.8
111.6
Aero engines
All plants
n.a.
95.6
106.1
104.5
106.0
106.1
Three best plants
n.a.
112.2
124.4
127.3
124.8
129.7
Propellers
All plants
n.a.
91.5
99.5
101.0
103.1
P 106.8
Three best plants
n.a.
116.5
130.4
135.2
135.2
131.7
Chart appears on opposite page.
*June, 1940.
r Revised.
Chart appears on Page 19.
a Total man-hours in one week divided by the number of workers on the first shift.
22
CONFIDENTIAL
WAR PROGRESS
TRAINING FOR WAR INDUSTRIES
Number of persons completing Office of Education course.
2500
2500
Engineering, Science
and Management
THOUSANDS CONCLUDING CUMULATED
2000
Supplementary to
2000
Employment
Preemployment
and Refresher
1500
Out of School Youth
1500
1000
1000
500
THOUSANDS CONCLUDING TRAINING CUMULATED
500
o
O
July
Aug.
Sept.
Oct
Nov.
Dec.
Jan.
Feb.
Mor.
Apr.
May
June
1941
1942
WAR PROGRESS
ECONOMIC ACTIVITY RELATED TO THE WAR
Number concluding training
In train-
FY 1940-
Cumulative July 1, 1941 to end of
ing of June
1941a
March
April
May
June
1942
1942
1942
1942
1942
(Thousands)
VOCATIONAL TRAINING FOR WAR
PRODUCTION WORKERS
Office of Education Programs
Out-of-school youth
223
192
227
254
275
Preemployment-refresher b
34
342
546
646
746
859
192
Supplementary to employment
348
606
690
748
857
154
Engineering, science, and
66
227
273
318
393
96
management
Total
979
1,571
1,836
2,066
2,384
476
Training-within-industry-WPB
Job Instructor Training Program c
Job instructors trained
-
45
63
98
125
Employees in plants served
-
2,295
2,759
3,416
2,529
(Number)
Plants served
-
1,801
2,216
2,752
2,773
la Not adjusted for dropouts.
10°
About 18 percent of the enrollees in preemployment--refresher
courses were NYA war project workers referred to training courses.
c Job instructor training started September 1, 1941.
- President
WAR PROGRESS
Confidential
(Britiók-Secret)
8. 1 al 1
W - - MAK 23.1973
Scorecard on Merchant Shipping
Speed-up in Convoy Protection
Number 102
August 28, 1942
CONFIDENTIAL
NUMBER 102
WAR PROGRESS
AUGUST 28,1942
Needed: A Production Budget
Shutdowns of plants indicate urgency of an
Data recently developed indicate this.
item-by-item schedule of output in order
They show three main types of "imbalance"
to correct diseconomy in use of copper,
in the use of raw materials. (Inci-
steel, and other critical supplies.
dentally, imbalance is a term that is
destined to become a byword in war pro-
MUNITIONS OUTPUT this month will run
duction circles in coming months.) For
around $3,700,000,000; in December, the
example:
monthly rate is scheduled at $5,500,000-
1. We are using critical materials,
000. In terms of raw materials, the
such as steel, copper, and machine tools,
implications are unmistakable.
in building new plants-tank, airplane,
Already, sporadic shortages of steel
etc.--when plants already in existence
plates, various alloy steels, copper,
are operating far below capacity. Here
and other materials have forced plant
you have imbalance between the facili-
shutdowns. They will not be the last.
ties program and the current operating
For, if materials are insufficient to
rate. Materials go into new buildings
satisfy the demands of a $3,700,000,000
and machinery, when conceivably they
monthly output, they are not likely to
might be directed to end products, if
meet the requirements of an output 50%
existing plant utilization were in-
greater in December.
creased.
However, materials can be stretched.
2. We are producing certain types of
STEEL PLATES AND STEEL SHAPES
It takes both to make o Liberty ship; usually a two months' supply on hand is fairly liberal. But
shipyord practices vory widely. Though overall inventories are not excessive, inventories of indi-
vidual yards run from for too much to for too little.
Plates on hand
Shapes on hand
YARD I
YARD 2
YARD 3
YARD 4
YARD 5
ALL YARDS
YARD 6
YARD 7
YARD 8
YARD 9
YARD 10
7
6
5
4
3
2
I
0
I
2
3
4
5
6
7
8
9
NUMBER OF MONTHS' SUPPLY, AS OF JUNE I
WAR PROGRESS
THIS CHART INDICATES TWO TYPES OF UNBALANCED INVEN-
MONTHS* SUPPLY OF PLATES AND ONLY THREE MONTHS* SUP-
TORY. FIRST, SOME SHIPYARDS HAVE MUCH LARGER STOCKS
PLY OF SHAPES. YARD 10 SHOWS UNBALANCE THE OTHER
OF STEEL THAN OTHERS. SECOND, STOCKS OF IV IDUAL
WAY-1.6 MONTHS* SUPPLY OF PLATES, 0.2 MONTHS* SUPPLY
YARDS ARE OUT OF LINE; THUS, YARD 1 SHOWS A NINE
OF SHAPES. THE 0.2 MONTHS' SUPPLY IS TOO LITTLE.
AUGUST 14,1942
CONFIDENTIAL
3
MUNITIONS OUTPUT- Month by Month
4000
600
Total Munitions
Aircraft
3000
400
2000
200
1000
o
0
J
F
M
A
M
J
J
J
F
M
A
M
J
J
200
600
Combat Vehicles
Other Army Ordnance
150
400
100
200
50
MILLIONS OF DOLLARS
o
o
J F M A M J J
J F M A M J J
300
600
MILLIONS OF DOLLARS
Naval Ordnance
Navol Ships
250
200
400
150
100
200
50
o
o
J
F
M
A
M
J
J
J
F
M
A
M
J
J
200
1000
Merchant Ships
Other Munitions
800
150
600
100
400
50
200
o
o
J
F
M
A
M
J
J
J F M A M J J
1942
1942
July figures preliminary
WAR PROGRESS
2
CONFIDENTIAL
WAR PROGRESS
components, such as fuses and rotating- for 2.1 months, while inventories of
bands for shells, much faster than the
shapes averaged 1.9 months. So the all-
shell cases. As a consequence, copper
yard picture was decidedly in balance.
piles up in semifinished products which
Individual yards, however, revealed
have to lie in stock waiting for ammu-
decided imbalance. Thus, a yard which
nition plants to turn out cases. And
laid ten keels a month had only one-
we are producing certain types of am-
sixthas many tons of shapes on hand as
munition faster than the guns to fire
a yard which laid less than two keels
them. In the meantime, some gun plants
a
month. And a yard which had been
are closing or slowing down production
averaging 23 keel layings a month had
for want of copper.
more steel plates than a yard laying
3. We have imbalance in plant inven-
nine keels monthly.
tories, too. One plant will be over-
stocked with copper or steel plate, for
Imbalance Corrected
instance, while another plant will be
In one case, a shipyard had hardly
understocked. Again, the overall effect
one week's supply of shapes--obviously
is to keep critical materials out of
too narrow a margin for efficient oper-
production channels.
ation. This disproportionate distribu-
tion has since been corrected by the
Shipyards an Example
shipment of shapes from slower-produc-
Liberty shipyards are a good example
ing, overstocked yards. Here, the knowl-
of this. Ordinarily, a two months' sup-
edge of inventory stocks permitted amel-
ply of shapes and plates on hand is
ioration of inventory imbalance. And
fairly liberal. And a checkup of all
the shipyard situation, as the result
yards, as of June 1, showed that average
of such intra-industry shift of plates
stocks of plates on hand were enough
and shapes, is in much better balance
today than three months ago.
IN THIS ISSUE:
Two Steps
The shipyard case epitomizes the
NEEDED: A PRODUCTION BUDGET
1
current production problem. Raw mate-
rials generally are no longer sufficient
SCORECARD ON MERCHANT SHIPPING
3
to go around, hence it becomes necessary
so to direct the distribution of crit-
SLOWER SHIPS, FASTER PROTECTION
4
ical supplies as to get more of the most
essential end products for the armed
ACCENT ON OCTANE
6
services and the civilian economy. To
that end two steps are indicated:
WHO'S WHO IN EXPORTS
7
1. A re-examination of all items on
the production docket. This should
RAW MATERIAL
8
suggest certain end products which may
WAR PROGRESS NOTES
9
be dispensed with or cut down-espe-
cially items in which current output
FINANCIAL DATA
exceeds either objectives or comple-
mentary items. Such pruning would keep
ECONOMIC DATA
19
raw materials out of overstockpiles and
free them for active utilization.
AUGUST 28, 1942
CONFIDENTIAL
3
SCORECARD ON MERCHANT SHIPPING
Sinkings drop sharply, and for first time in eight months construc-
tion exceeds losses.
2000
2000
Sinkings vs. Construction
1000
1000
Sinkings
Construction
o
0
+1000
+1000
Net Loss (or Gain) - Monthly
THOUSANDS OF DEADWEIGHT TONS
Goin
0
o
Loss
THOUSANDS OF DEADWEIGHT TONS
-1000
-1000
o
o
The Cumulative Deficit
2000
2000
4000
4000
6000
6000
8000
8000
10,000
10,000
1940
1941
1942
1943
WAR PROGRESS
LAST MONTH, THE UNITED NATIONS REGAINED LOST GROUND ONE OR TWO MONTHS DO NOI MAKE OR BREAK A TREND; IN
IN THE BATTLE OF SHIPPING. WITH CONSTRUCTION OF MER- 1941, CONSTRUCTION OUTRAN SINKINGS IN THREE MONTHS
CHANT SHIPS UP 5% AND SINKINGS DOWN 30%, THERE WAS
-JULY, AUGUST, AND NOVEMBER-BUT THOSE GAINS WERE
A NET INCREASE IN TONNAGE. AND PRELIMINARY AUGUST
FOLLOWED BY A SUCCESSION OF MONTHLY DEF ICITS AS SINK-
REPORTS INDICATE CONTINUED LOW SINKINGS. HOWEVER, INGS ROSE TO A NEW HIGH.
4
CONFIDENTIAL
WAR PROGRESS
2. A production budget which is a
budget and would cover many areas of
production budget. Such a budget would
production and scheduling which have
set forth--item-by-item and month-by-
yet to be definitized.
month--a schedule of end products to be
In short, the production budget would
produced for the armed forces and the
establish clearly and undebatably--and
civilian economy.
for the first time--this: How much we
shall make of what-and when.
How Much? What? When?
For, not until we have such a budget
Such a budget would supersede our
--not until we know which end products
present miscellaneous schedules, each
are needed and how soon--can we hope to
put out by a different procurement agen-
synchronize the flow of raw materials
cy; for it would be an all-embracing
into our productive machine.
Slower Ships, Faster Protection
By cutting speed of destroyer escort vessels
gram, 183 were to have been diesel pow-
from 24 to 20 knots, the Navy makes one
ered and were designed for a top speed
engine serve for two. Production program
of 24 knots. But by cutting the re-
is more than doubled.
quired speed to 20 knots, the number of
diesel engines needed is halved--four
TO RELIEVE 35-knot destroyers and 33-
to a vessel, instead of eight. This
knot cruisers from the job of protect-
means releasing enough propulsion ma-
ing convoys traveling at 12 to 14 knots,
chinery to power 183 more ships--and
the Navy is speeding up and enlarging
because hulls for these ships can be
its building program for destroyer es-
built much more rapidly than engines,
cort vessels. These are 1,500-ton ships
it speeds up the entire production pro-
--about two-thirds as large as a de-
gram.
stroyer, but twice the size of thelarg-
est subchaser.
Earlier Deliveries
Program Up 200%
Furthermore, the changed plans will
push forward initial deliveries. (We
As recently as May, only 300 such
shall get ships this November instead
vessels were on the docket-to be de-
of next March.) Original plans for 24-
livered by July, 1944. New schedules
knot diesel-powered vessels called for
call for delivery of 497 ships by that
a composite drive-diesel and diesel-
date. Furthermore, the schedule has
electric-and one big cause of delay was
been stretched out another six months,
reduction gears, whichwill not be avail-
and by January, 1945, deliveries should
able in adequate quantities until next
run to 720 ships. Adding in 160 ships
which have not yet been scheduled but
spring. But diesels, generators, and
motors will be ready late this fall.
which will be built later, the overall
Thus, by using only diesel-electric
program has been boosted almost 200%.
power-which doesn't require reduction
Changes in specifications are the
chief reason for the 197-ship increase
gears-on some of the ships, deliveries
can be initiated several months sooner.
in deliveries over the next two years.
Of the 300 ships in the original pro-
The Navy hasn't changed specifica-
tions on steam-powered destroyer escorts
AUGUST 28, 1942
CONFIDENTIAL
5
-they'll still make 24 knots. But the
plant constructed to build steam tur-
Accent on Octane
bines for these shipswill be able to
As war planes are colled upon to fly farther,
turn out more than previously expected;
and this, plus the six-month extension
faster, and higher, quality of aviation
gasoline must constantly rise. And supply
of the building schedule, has made it
becomes a problem.
possible to plan 275 steam-powered es-
cort vessels, instead of the 117 in the
PRODUCTION of high-octane aviation gas-
old schedule.
oline has more than doubled over the
Speed Not Essential
past twelve months, but still the supply
is insufficient to meet estimated re-
The destroyer escorts are fully armed
quirements for the Army, Navy, export,
to combat submarines or planes which at-
ferry services, and engine and aircraft
tack their convoys-they carry listening
builders (whose needs for testing pur-
devices, depth charges, torpedo tubes,
poses run to some 8% of total supply).
machine guns, and antisubmarine-antiair-
We've been drawing on our visible stocks.
craft guns-but they are wholly defen-
sive vessels and do not have to be fast
Higher Octane Rating
enough to hunt down enemy vessels. Thus,
If the problem were simply to produce
the change in speed requirements on the
more 100-octane gasoline, we could look
diesel-powered ships does not change
forward to a balance between supply and
their essential character.
demand early next year, with a surplus
SPEEDING PROTECTION FOR MERCHANT SHIPS
Schedule of destroyer escort vessels is stepped up, with initial delivery date
advanced four months.
50
50
40
40
NUMBER OF VESSELS DE AND BDE)
30
30
New Schedule
20
20
NUMBER OF VESSELS (DE AND BDE)
Old Schedule
10
10
o
0
1942
1943
1944
1945
WAR PROGRESS
ONLY A LITTLE OVER A YEAR AGO, DESTROYER ESCORT VES-
A MAJOR PART IN CONVOYING MERCHANT SHIPS. WHEREAS
SELS HAD NOT EVEN REACHED THE BLUEPRINT STAGE. SIX
THERE WERE ONLY 300 DE AND BDE VESSELS ON THE PRO-
MONTHS AGO, A CONSTRUCTION SCHEDULE WAS FIRST BEING
DUCTION DOCKET THREE MONTHS AGO, NOW 720 HAVE BEEN
LAID OUT. BUT TODAY, THIS VESSEL IS SLATED TO PLAY
SCHEDULED. AND TOTAL AUTHORIZATIONS RUN TO 880.
6
CONFIDENTIAL
WAR PROGRESS
accumulating throughout 1943. For, by
--so many United Nations' planes avail-
that time, enough new capacity will have
able needing so much gasoline. And,
been built to overcome the indicated
beginning in 1944, requirements are
deficiency.
likely to double today's demand.
But today production of 100-octane
gasoline isn't enough. Combat require-
New Plants
ments are constantly pushing planes to
At present-day octane ratings-and
more exacting performances--they must
even on next year's higher standards-
travel longer distances, fly to higher
that increase could be taken in stride.
altitudes, move with greater speed. And
But the Joint Aeronautical Board (com-
higher and higher quality is needed to
prising representatives of the Army and
get maximum efficiency for long-range
Navy) has requested a further rise in
cruising on the one hand, and power for
specifications by July, 1944. And ten-
take-off, climb, and maneuverability on
tatively suggested standards indicate
the other. That means stepping the "gas"
that present authorized capacity will
up above the 100-octane mark.
be sufficient to turn out only 76% of
Blending Agents
requirements on that pepped-up basis.
To meet expected demand, some 50
Each time we hike up the quality of
high-octane gasoline plants are under
gasoline, however, we must use more
construction or planned. But the bulk
blending agents-alkylates, isopentane,
of these plants won't come into produc-
cumene; hydrocodimer, neohexane, etc.
tion until next year;it takes around 18
Justas tetraethyl lead pepsup the gas-
months from foundation to output. In
oline that goes into your automobile, so
the meantime, the demand for immediate
these blending agents put the added zip
capacity is so urgent that use of steel
in fuel for airplane engines.
plate and other materials has been auth-
Supplies of these blending agents-
orizedto convert existing refinery ca-
particularly alkylates--are tight. And
pacity to the manufacture of "blenders."
thus they are the bottleneck in aviation
gasoline output. So chemists are con-
Problem Ahead
stantly on the hunt for more of these
Ultimately, however, what will de-
"gasoline upgraders."
termine this country's supply-and-de-
Requirements to Double
mand ratio is the quality of gasoline
needed. Right now, the Germans are re-
Cumene, for instance-recently devel-
portedly using a mixture superior to
oped--is made from benzene. And while
ours in certain respects. Only recently
it is not a full substitute, it is one
did ours come up to the Britishin every
of the materials that helps to conserve
way. And the emphasis is on getting the
alkylates. But the supply is precarious,
so-called ideal blend, which will be
because benzene will be needed next year
better than German aviation gasoline on
for the synthetic rubber program. And
every count.
if benzene isn't available for cumene,
Thus, unless estimated requirements
production of aviation gasoline could
drop sharply-and the figures make no
fall approximately 10%.
explicit allowance for losses due to
Current estimates of "ultimate" avi-
sinkings, bombings of air bases, possi-
ation gasoline requirements are based
ble loss of British or Russian produc-
largely upon Army and Navy expectations
tion--a pinch lies ahead. The problem
AUGUST 28, 1942
CONFIDENTIAL
7
WHO'S WHO IN EXPORTS
Agencies that plan, procure, and route munitions and general shipments to our armed forces,
allies and friendly neutrals.
Planning Stage
Original Requisition
5,6,7
1,2,3,4,8,9
Commercial Supplier
ICommercial orders)
5,6,7
1,2,3,4
%
Land-Lacee Adm.
BEW
War Dept.
Novy Dept.
(Land-lease orders)
(Commercial orders)
AM Army orders)
CAN Novy orders)
1,2,4
5,7
§
&
1,2,4,5,7,8,9
WPB
(Avolobility of Moterials)
1,2,4,5,7,8,9
Surplus Commod Corp.
Combined Row
(Land-lease food orders)
Moterials Board
1,2,4,7,8,9
5
Combined Food Board
Comb. Munitions Assign. Bd.
Combined Prod. and
Foreign Requirements Comm.
and comm) food orders)
(Only munitions)
1,8,9
Resources Board
(Nonfood commlorders)
1,8,9
2,4,7,8,9
Dept. of Agriculture
Procurement
1,2,4,7,8,9
Land-legse food orders)
Stage
4
12
(1
5
Wor Shipping Adm.
Treasury Dept.
Wor Dept.
Novy Dept
6
3
(Allorders tr should
CAN L-L nonfood orders)
(All Army orders)
(All Novy orders)
4,7
1,2
8
9
1,2,3,4,7,8,9
Private Suppliers
+1,2,3,4,5,6,7
Shipping
Foreign Gov't Agencies
8,9
(Order releases of goods)
1,2,3,4
Stage
Transport Control
5,6,7
Committee
5,6,7
MAIN TYPES OF
BEW- Exp. Control Office
5,6,7
EXPORT ORDERS
(Commercial cargoes)
Treasury Dept.
1,2,3,
Combined
1. Land-leces munitions
4,8,9
Shipping
Commi customs clearance)
Adjustment
2. Land-legse general
Boord
materiols
5,6,7
3. Land-leose food
Supervisory Functions
4 Land-leces ship
Wor Ship Adm
Traffic Control Comm
tronsfers
(Commercial cargoes)
U.S. Gov'tondL-L corgoes)
5. Commercial general
materiols
5,6,7
1,2,3,4,8,9
6. Commercial food
7, Commercial ship
purchases
1,2,3,4,5,6,7
U
9
a U.S. Army orders
War Ship Adm
Brit Ministry of Transport
War Dept.
Novy Dept.
9 U.S. Novy orders
(Moinly LA and commi cargoes
a
U.S. Army Transport Serv.)
(Novel TransportotionSian)
SHIPMENT LEAVES PORT
WAR PROGRESS
IT TAKES A LOT OF ADMINISTRATION TO EXPORT A COMMOD-
THEN GOES TO THE TRANSPORT CONTROL COMMITTEE, AND
ITY THESE DAYS. AFTER A REQUISITION IS PLACED, SEV-
IT IS IN THE FINAL, OR SHIPPING, STAGE. SIXTEEN
ERAL AGENCIES MUST DECIDE WHETHER THE GOODS CAN BE
AGENCIES HAVE RESPONSIBILITIES IN THIS PROCESS: 11
SPARED. THIS IS THE PLANNING STAGE. THEN THE COM-
HAVE BEEN CREATED SINCE THE WAR. NO ORDER CLEARS
MODITY MUST BE PROCURED. AND AGAIN SEVERAL AGENCIES
THROUGH ALL OF THE AGENCIES INVOLVED, BUT SOME ARE
MUST PASS ON IT. AFTER PROCUREMENT, THE REQUISITION
PROCESSED SEVERAL TIMES BY THE SAME AGENCY.
8 CONFIDENTIAL
WAR PROGRESS
is not entirely clear cut. We may have
mately 7,000 prime contractors, call-
to choose between further expansion of
ing attention to manufacturing short-
capacity now and inferior quality lat-
cuts which save time, materials, and
er. Unless--and this a big "unless"-
machines. Examples:
requirements have been estimated on the
On one contract, the use of stamped
high side.
clips instead of a heavier lock nut
assembly saved about nine carloads
Raw Material
of steel-and the clips were made
150 times faster.
NICKEL EARNED
A primer case, formerly machined
from brass bar stock, is now pressed
THE AVERAGE NICKEL CONTENT of all nickel
from steel, saving some 23,000,000
steel was 3.25% a year ago; in April of
pounds of brass a year.
this year the ratio was down to 3.03%.
A trigger cover plate requiring
But in specific instances the trend to-
29 machine operations is now manu-
ward conservation is even more conclu-
factured with seven.
sive. In June, 1941, American Car &
In two ordnance districts, 25 screw
Foundry requested armor plate having
machines were released by pressing,
5% nickel content; recent specifica-
instead of machining, steel adapt-
tions call for 4%. In-October, 1941,
ers.
Chrysler Corporation requested tank
The booklet has already paid divi-
castings containing 1.5% nickel; last
dends. A manufacturer suggested re-
month, the specification was 0.5%.
designing a 32-inch draw bar for ammu-
nition boxes, which is estimated to
GASOLINE BY MOTOR TRUCK
save 3,500 tons of steel--enough to
TANK TRUCKS are being pressed into ser-
make 200,000 90mm. shells-between now
vice to help fill the breach in gaso-
and the end of the year.
line transportation facilities caused
by ship sinkings. According to reports
SOS BY CRANKING
received by the American Trucking As-
OUR BOMBER and transport planes are now
sociation, truck shipments of petroleum
being equipped with something new in
products in July were almost 60% above
safety equipment--emergency sea rescue
last year, accounting for 16% of total
tonnage hauled, compared with 10% a
sets. They weigh 25. pounds, will fit
between the knees, and, when cranked,
year ago.
send an SOS in two ways: (1) by ra-
PROPAGANDA PAYS
dio, (2) by an electric light signal.
No knowledge of radio or Morse code is
TEN DAYS AGO, the Army Ordnance Depart-
needed to operate the set, which repre-
ment mailed an illustrated booklet,
sents an improved version of a similar
"Tremendous Trifles," to its approxi-
device captured from the Germans.
AUGUST 28,1942
CONFIDENTIAL
9
War Progress Notes
page 18). Total durable manufactures
were 3% higher than last month and 28%
SHIPYARDS TAKE LEAD
above last year. Nondurable manufac-
tures reached a peak last fall. Cur-
SHIPBUILDING now employs more workers
rently they are at about the level of
than any other war industry. Last month,
July, 1941.
private shipyards had 720,000 wage earn-
ers on their rosters (chart, page 20).
ORE SHIPMENTS INCREASE
This was 500,000 more than last July
IRON ORE SHIPMENTS through the Great
and 6% of total manufacturing employ-
Lakes are hitting an all-time peak.
ment. Until June, foundries and machine
Through August 23, they totaled 56,700,-
shops and blast furnaces, steel works,
000 tons, compared with 48,400,000 tons
and rolling mills have led in volume
at this time last year. Chief reason
of war-industry employment.
for the increase is a three-week head
Employment in manufacturing indus-
start in shipments because of good weath-
tries reached 11,179,000 in July-197,-
er in the spring. If the lakes do not
000 above June. For 18 selected war
freeze over prematurely, about 90,000,-
industries, the increase over the month
000 tons of iron ore will be moved in
was 141,000. Almost half of this in-
1942-10,000,000 more than in 1941.
crease was in shipbuilding and one-
STRIKES IN JULY
fourth in aircraft.
STRIKES IN PROGRESS rose to 520 in July
FRB PRODUCTION IN JULY
-up 80 from last month but still 22%
SHIPBUILDING ACTIVITY in July was near-
below last year. Production time lost,
ly four times as great aslast year and
however, declined to 450,000 man-days--
10% higher than in June. The Federal
100,000 less than in June and only 25%
Reserve Board aircraft production index
of the average time lost per month in
roughly tripled during the year--was
1941.
up 8% from June. In the automobile in-
Half of the man-days lost in July
dustry; output in July--virtually all
were in war industries. Since the first
armament-was at an annual rate of
of the year there have been 732 strikes
about $5,000,000,000, compared with the
involving 297,000 workers engaged in
1941 all-time annual peak of $4,000,-
war production. Man-days lost have to-
000,000. These increases raised the
taled over 1,100,000. This is less than
transportation equipment index to 423
0.1% of the time worked on war produc-
in July-up 85% from July, 1941 (chart, tion.
10 ... CONFIDENTIAL
WAR PROGRESS
THE WAR PROGRAM- Financial Summary
300
300
250
250
200
200
BILLION DOLLARS
150
150
PROGRAM
(Appropriotions and Net Authorizations)
BILLION DOLLARS
100
100
50
50
CONTRACT AND
OTHER COMMITMENTS
VALUE OF PRODUCTION
0
o
J A S o N D J F M A M J J A S o N D J F M A M J J A S o N D
1940
1941
1942
WAR PROGRESS
AUGUST 28,1942
CONFIDENTIAL
=
WAR PROGRESS SERIES
TOTAL WAR PROGRAM IN THE UNITED STATES
Cumulative 6/11/40 to
Monthly
End 1st
End of
End of
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
TOTAL WAR PROGRAM IN THE U.S.ᵃ
(Million
dollars)
Program-Pending
P
9,525
Program-Enacted
40,861
80,604
P 174,384
0
P 5,615
P 44,471
Uncommitted balance
9,274
23,979
P 40,290
-
-
-
Contracts and other
commitments
31,587
56,625
P 134,094
P 9,731
P 12,098
n.a.
Value delivered and/or in
place
b
8,547
18,573
P 39,222
P 4,060
P 4,602
n.a.
Checks paid C
8,536
17,965
P 37,562
3,925
P 4,156
P
4,824
MUNITIONS PRODUCTION.& WAR CONSTRUCTION,
TOTAL
Program
37,027
69,305
P 156,214
0
P 5,358
P 32,543
Uncommitted Balance
7.597
18,281
P 33,761
-
-
-
Contracts and other
commitments
29,430
51,024
P 122,453
P 9,107
P 9,999
n.a.
Value delivered and/or
in place b
6,795
14,750
P 32,184
P 3,465
P 3,882
n.a.
Value not delivered nor
in place
22,635
36,274
P 90,269
-
-
-
PRODUCTION OF MUNITIONS
Program
28,566
53,738
P 124,097
-25
P 4,756
P 29,952
Uncommitted balance
4,901
13,929
P 29,106
-
-
-
Contracts and other
commitments
23,665
39,809
P 94,991
p 6,668
P 6,942
n.a.
Value delivered and/or
in place
9
4,290
8,940
20,449
2,248
2,638
P 3,044
Value not delivered nor
in place
19,375
30,869
p 74,542
-
-
I
WAR CONSTRUCTION
Program
8,461
15,567
P 32,117
25
P
602
P
2,591
Uncommitted balance
2,696
4,352
P 4,655
-
-
I
Contracts and other
commitments
5,765
11,215
P 27,462
P 2,439
P 3,057
n.a.
Value delivered and/or
in place
b
2,505
5,810
P 11,735
P 1,217
D 1,244
n.a
Value not delivered nor
in place
3,260
5,4c-
P 15,727
,
-
NON-MUNITIONS WAR ITEMS, TOTAL
Program
3,834
11,299
P 18,170
0
P
257
P 11,928
Uncommitted balance
677
5,698
P 6,529
-
-
-
Contracts and other
commitments
2,15;
5,601
P 11,541
P
624
P 2,099
n.a.
Checks issued
1,752
3,823
P
7.038
P
595
P
720
n.a.
Graph appears on opposite page.
For footnotes see Page 22.
Table continued on Page 13.
4
CONFIDENTIAL
WAR PROGRESS
Cracks Appear in Price Ceiling
Control has held cost of living in check so
they have largely been absorbed by sub-
for, but wage boosts and rising form
sidies. But farm prices and wage rates
prices threaten entire price structure.
are still relatively free and uncon-
Foods are chief problem.
trolled. The Emergency Price Control
Act made no provision for wage control,
THE GENERAL MAXIMUM PRICE REGULATION
and farm prices were allowed't to advance
has now been in effect three months.
to 110% of parity, if not higher. In
During that time the cost of living has
March, the President called on Congress
held almost level (chart, page 5). But
to stabilize farm prices at parity, but
that doesn't mean all retail prices have
nothing has yet been done to make farm
stood still, or that price control is
price stabilization a fact. And farm
an accomplished fact. In several places,
prices continue to rise (chart, page 6).
OPA ceilings have cracked. And the
cracks have begun to forma pattern which
No Wage Stabilization
suggests that the cost of living is not
The President's program for wage sta-
destined to stay put indefinitely.
bilization has not been translated into
Here, for example, are some of the
action, either. The nearest we have
major cracks--and their causes-in OPA's
come to control is the War Labor Board's
price ceilings:
formula, which permits an increase in
wages which have risen less than 15%
Ceiling Raised
Cause
since the beginning of 1941 or which
are otherwise "substandard." This leaves
Sliced and
Rising farm prices
plenty of room for wage increases which,
peeled apples
however equitable, are nonetheless in-
Canned citrus
"
"
"
flationary.
fruits, juices
Essentially, the problem is still
Canned fruits
If
"
If
what it was three months ago, six months
and berries
ago, and a year ago. The huge expendi-
Canned vegetables
11
IT
"
tures by the federal government have
Contract
Rising labor costs
been pumping buying power into the hands
apparel work
of ultimate consumers. Month by month
Gasoline
Higher transportation
the national income rises to new highs.
Fuel oil
"
"
(See chart, page 5.) At the same time,
Glycerin
"
#
the volume of goods available for ulti-
mate consumers has begun to decline.
And that does not complete the pic-
So the income is rapidly outpacing the
ture. For, only this week, OPA indi-
goods supply.
cated that the level of farm prices would
force further boosts in food ceilings.
Integrated Program Lacking
Thus, the principal problems, so far,
Yet no integrated program to mop up
are rising farm prices, higher labor
this excess income--by means of higher
costs, and rising transportation costs.
taxes and savings--has been put into
Rising transportation costs, however,
effect.
are likely tobe nonrecurrent; moreover,
In the meantime, higher wage rates
12 CONFIDENTIAL
WAR PROGRESS
MUNITIONS PRODUCTION- Financial Summary
150
150
125
125
юо
100
BILLION DOLLARS
PROGRAM
(Appropriotions and Net Authorizations)
75
75
BILLION DOLLARS
50
50
CONTRACT AND
25
OTHER COMMITMENTS
25
VALUE OF PRODUCTION
o
0
J A S o N D J F M A M J J A S 0 N D J F M A M J J A S 0 N D
1940
1941
1942
WAR PROGRESS
AUGUST 28,1942
CONFIDENTIAL ... 13
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million dollars'
BREAKDOWN OF MUNITIONS PRODUCTION
MUNITIONS PRODUCTION, TOTAL
Program
28,566
53.738
P124,097
-25
P 4,756
P 29,952
Uncommitted balance
4,901
13,929
P 29,106
-
-
-
Contracts and other
commitments
23,665
39,809
P 94,991
P 6,668
P 6,942
n.a.
Value delivered and/or
in place
9
4,290
8,940
20,449
2,248
2,638
P
3,044
Value not delivered nor
in place
19,375
30,869
P 74,542
-
-
-
AIRPLANES, PARTS & ACCESSORIES
Program
8,582
15,072
P 37,586
0
P
-215
P 9.737
Contracts and other
commitments
7,381
13,298
P 33,945
P
2,409
P 2,838
n.a.
Value delivered
1,010
2,265
4,752
471
510
P
565
ORDNANCE
Program
7.778
17,488
P 36,400
0
p
285
P 9,548
Contracts and other
commitments
5,418
10,354
P
26,873
P
2,278
P 2,360
n.a.
Value delivered
700
1,685
4,998
6968
731
P
918
NAVAL SHIPS
Program
6.796
9,605
P 18,460
0
P
2,922
P
0
Contracts and other
commitments
6,442
7,930
p 12,276
275
P
276
n.a.
Value delivered and/or
in place
810
1,665
3.383
3998
404
P
494
MERCHANT SHIPS
Program
1,442
3,288
P 8,653
-25
P 1,054
P
0
Contracts and other
commitments
1,484
2,381
P 6,880
P
607
P
618
n.a.
Value in place
240
510
1,188
131
176
187
OTHER MUNITIONS AND SUPPLIES
Program
3,968
8,285
P 22,998
0
P
710
P 10,667
Contracts and other
2,940
5.846
P
commitments
15,017
p 1,099
P
850
n.a.
Value delivered
1,530
2,815
6,128
551
817
P
880
Graph appears on opposite page.
For footnotes see Page 22.
Table continued on Page 15.
14 CONFIDENTIAL
WAR PROGRESS
WAR CONSTRUCTION- Financial Summary
50
50
40
40
30
BILLION DOLLARS
30
PROGRAM
(Appropriations and Net Authorizations)
20
BILLION DOLLARS
20
CONTRACT
AND OTHER
COMMITMENTS
10
IO
VALUE OF PRODUCTION
o
o
J A 1940 S o N D J F M A M J J A S 0 N D J F M A M J J A S o N D
1941
1942
WAR PROGRESS
AUGUST 28,1942
CONFIDENTIAL ... 15
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million dollars)
BREAKDOWN OF WAR CONSTRUCTION
WAR CONSTRUCTION, TOTAL (LAND, BLDGS., EQUIP.)
Program
8,461
15,567
P 32,117
25
P
602
P 2,591
Uncommitted balance
2,696
4,352
P 4,655
-
-
-
Contracts and other
commitments
5,765
11,215
p 27,462
P 2,439
P 3,057
n.a.
Value in place
2,505
5,810
P 11,735
P 1,217
P 1,244
n.a.
Value not in place b
3,260
5,405
P 15,727
-
-
I
INDUSTRIAL FACILITIES (LAND, BLDGS., EQUIP.)
Program
5,120
8,112
P 17,610
25
P
707
P
172
Contracts and other
commitments
2,865
6,318
P 16,697
P 1,047
P 1,592
n.a.
Value in place
960
2,800
P 5,990
P
629
P
615
n.a.
INDUSTRIAL FACILITIES, BUILDINGS ONLY
Program
1,607
3,137
n.a.
P
389
n.a.
n.a.
Value in place
575
1,753
P 2,990
P
287
P
307
P
344
POSTS, DEPOTS, STATIONS
Program
2,849
6,063
P 13,115
o
P
-105
P 2,419
Contracts and other
commitments
2,625
4,381
P 9,890
P 1,317
P 1,390
n.a.
Value in place
1,430
2,670
P 5,179
P
545
P
580
n.a.
DEFENSE HOUSING
Program
492
1,392
P 1,392
0
P
0
P
0
Contracts and other
commitments
275
516
P
875
P
75
P
75
n.a.
Value in place
115
340
P
566
P
43
P
49
n.a.
BREAKDOWN OF NON-MUNITIONS
NON-MUNITIONS, TOTAL
Program
3,834
11,299
P 18,170
o
P
257
P 11,928
Uncommitted balance
1,677
5,698
P 6,529
-
-
-
Commitments
2,157
5,601
P 11,641
P
624
P 2,099
n.a.
Checks issued by agencies b
1,752
3,823
P 7,038
P
595
P
720
n.a.
STOCKPILE
Program
983
2,399
P 2,713
0
P
0
P
0
Commitments
470
1,050
P 1,140
P
30
P
o
n.a.
Checks issued by agencies
192
488
P
1,011
P
102
P
100
n.a. a.
Graph appears on opposite page.
For footnotes see Page 22.
Table continued on following page.
16 CONFIDENTIAL
WAR PROGRESS
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cusulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million
dollars)
BREAKDOWN OF NON-MUNITIONS (Continued)
AGRICULTURAL EXPORTS (LEND-LEASE)
Program
625
1,522
D 2,138
0
P
o
P
0
Commitments
66
561
P 1,143
P
65
P
149
n.a.
Checks issued by agencies
1
211
P
629
87
P
90
n.a.
PAY, SUBSISTENCE & TRAVEL I
Army Military
Program
944
3,013
P 3,904
0
P
0
P
8,534
Commitments
934
2,030
P 3,849
P
281
P
285
n.a.
Checks issued
696
1,510
P 2,744
P
220
P
315
n.a.
Navy Military
Program
378
963
P
2,478
0
P
232
P
0
Commitments
334
610
P
1,143
P
110
P
104
n.n.
Checks issued
388
642
P
1,042
P
70
P
98
n.e.
Civilian Payroll
Program
32
247
P
299
0
P
46
p
542
Commitments
32
140
P
255
P
15
P
20
n.a.
Checks issued
356
682
P
1,115
P
79
P
80
n.a.
MISCELLANEOUS NON-MUNITIONS
Program
872
3,155
P 6,638
0
P
-21
P 2,852
Commitments
321
1,210
P 4,111
P
123
P 1,541
n.a. B,
Checks issued by agencies
119
290
P
497
P
37
P
37
n.a.
P Preliminary
Table continued on following page.
For footnotes see Page 22.
AUGUST28,1942
CONFIDENTIAL 17
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End lst
End of
End of
SUMMARY
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million dollars)
d
BREAKDOWN OF AGENCIES
UNITED STATES FINANCED WAR PROGRAM
Program
37,075
76,508
P 170,288
0
P 5,615
P 44,471
Uncommitted balance
9,274
23,979
P 40,290
-
-
-
Contracts and other
commitments
27,801
52,529
129,998
P
9,731
P 12,098
n.a.
Checks paid
6,431
15,251
P 34,510
3,880
P 4,123
P
4,794
U. S. ARMY
Program
13,134
31,981
P 84,468
0
P
0
P 42,090
Contracts and other
commitments
23,334
P 70,402
P
11,404
6,138
P 8,397
n.a.
Checks paid
3,636
7.889
15,649
1,497
1,662
n.a.
U. S. NAVY
Program
12,308
20,024
P 47,990
0
P 4,355
P
0
Contracts and other
commitments
11,182,
16,327
P 32,325
P 1,971
P 2,361
n.a.
Checks paid
2,217
4,726
10,128
1,229
1,237
n.a.
LEND-LEASE
Program
7,000
12,985
P 18,410
0
P
o
P
0
Allocations
5,177
11,345
14,085
508
-281
n.a.
Contracts and other
commitments
2,458
6,282
10,665
305
484
n.a.
Checks paid
21
910
4,099
626
665
n.a.
U. 8. MARITIME COMMISSION
Program
784
2,734
P 7,654
o
P 1,070
P
0
Contracts and other
commitments
886
1,724
P 6,333
608
P
631
n.a.
Checks paid (Net)
44
156
642
93
114
n.a.
RFC AND SUBSIDIARIES
Program
2,623
5,130
P 7,704
o
P
o
P
0
Contracts and other
commitments
1,151
3,569
P 7,916
P
509
e
0
n.a.
Checks issued by RFC
350
956
P 2,510
327
P
300
P
300
OTHER U. S. AGENCIES
Program
1,226
3,654
P 4,062
o
P
190
P
2,381
Contracts and other
commitments
720
1,293
P 2,357
P
200
P
225
n.a.
Checks paid
163
614
1,482
108
145
n.a.
FOREIGN ORDERS
Program (Orders)
3,786
4,096
P 4,096
0
P
0
P
0
Commitments
3,786
4,096
P 4,096
o
P
0
P
0
Checks issued by
Purchasing Missions
2,105
2,714
P 3,052
45
P
33
P
30
For footnotes see Page 22.
18 CONFIDENTIAL
WAR PROGRESS
THE SQUEEZE ON NONDURABLE GOODS
Industrial Production by Major Items
(F.R.B. Unadjusted Index 1935-1939 # 100)
200
200
Peorl Horbor
Dec. 1941
Other Durable Mfrs
150
150
Dunkirk
Transportation Equipment*
June 1940
Stort of Wor
Sept. 1939
Points in Index
100
Mochinery
100
Points in Index
Iron and Steel
Minerals
50
50
Nondurable Mfrs.
0
0
1939
1940
1941
1942
Percentage Distribution of Industrial Production
100
100
Other Durable Mfrs
Transportation Equipment*
80
80
Mochinery
Percentage-Total Output*100 Per Cent
60
Iron and Steel
60
Minerals
40
40
Percentage-Total Output =100 Per Cent
20
Nondurable Mfrs.
20
0
o
1939
1940
1941
1942
. Aircraft, Shipbuilding, Reil Equipment, Autos, etc.
WAR PROGRESS
AUGUST 28,1942
CONFIDENTIAL
19
ECONOMIC ACTIVITY RELATED TO THE WAR
Note: Certain statistical series included in these tables are nonconfidential and are
published in such public documents as the Federal Reserve Bulletin, Survey of Current Bus-
iness, etc. Obviously inclusion here should not be construed as a limitation on their use.
1940
1941
1942
Week ending
July
July
June
July
Aug. 15
Aug. 22
BLS PRICE INDEXES
Strategic materials
123.6
140.3
147.6
147.7
r
147.8
147.8
Critical materials
8/39
107.5
115.2
123.2
123.9
123.9
124.0
Basic commodities
=100
108.5
148.7
166.4
167.2
167.2
166.9
Machine tools
108.7
117.6
118.0
118.0
-
-
All commodities (1926=100)
77.7
88.8
98.6
P
98.7
P
98.9
P
98.9
TRANSPORTATION
Freight cars
Loadings (thous. per week)
706
853
846
830
869
869
Unloads for export (dly.av.)
Atlantic & Gulf ports (no.)
1,494
1,614
1,950
1,718
1,820
1,904
Pacific ports (no.)
112
159
490
608
727
711
Surplus cars (dly.av.thous.)
Total
132
77
83
77
65
Box cars
55
30
57
47
44
Coal cars
48
27
9
12
6
Bad order cars, total,
first of month (thous.)
153
85
63
57
(Aug 1) 55
ELEC. POWER PROD. (mil. kwh.)
12,094
14,226
15,182
16,004
3,655
3,674
WAR BOND SALES (mil. dollars)
-
342
634
901
145
143
1940
1941
1942
July
July
April
May
June
July
FED. RES. BD. PROD. INDEXES
(Unad
justed index,
1935-39
= 100)
Total industrial production
120
159
171
175
177
P
181
Durable manufactures
131
197
232
239
245
P
253
Iron and steel
151
185
198
198
196
P
200
Pig iron
154
181
192
191
192
192
Aircraft
398
997
r
2,089
I
2,238
r
2,374
P
2,571
Railroad cars
117
233
310
290
284
266
Locomotives
116
307
485
497
487
516
Shipbuilding
185
467
1,300
1,416
1,537
P
1,687
Copper smelting
126
131
155
161
r
170
154
Copper deliveries
118
234
195
205
221
245
Zinc smelting
133
173
185
184
180
177
Zinc shipments
124
142
145
146
143
139
Lead shipments
118
200
198
202
193
Nondurable manufactures
110
138
138
138
136
P
137
Cane sugar meltings
116
117
93
73
69
Rubber products
109
153
73
H
74
72
77
Rubber consumption
109
156
79
H
80
77
83
Minerals
120
131
125
131
132
P
133
Copper production
147
169
174
r
133
181
166
Zinc production
112
125
146
143
137
Lead production
112
110
135
128
134
Government production
Points in
total ind ex)
Shipbuilding, gov't yards
0.5
1.3
2.4
2.9
2.9
Mfg. at gov't arsenals and
Quartermaster depots
0.2
0.6
1.1
1.1
1.1
Graph appears on opposite page.
P Preliminary.
r Revised.
*Friday unloads.
20 CONFIDENTIAL
WAR PROGRESS
EMPLOYMENT IN KEY WAR INDUSTRIES
800
800
600
600
400
400
Aircroft and
Aero Engines
Private
Shipbuilding
200
200
Machine Tools and
Accessories
o
0
1940
1941
1942
800
800
Blost Furnoces,
Steel Works and
600
600
Rolling Mills
THOUSANDS OF WORKERS
Foundries and Machine Shops
400
400
Electrical Mochinery
and Supplies
THOUSANDS OF WORKERS
200
200
0
o
1940
1941
1942
100
100
80
80
60
60
40
40
Firearms
Explosives
20
Ammunition
20
0
O
1940
1941
1942
WAR PROGRESS
AUGUST 28,1942
CONFIDENTIAL
21
ECONOMIC ACTIVITY RELATED TO THE WAR
1940
1941
1942
July
July
April
May
June
July
EMPLOYMENT (thousand workers)
Total civil nonagricultural
35,904
39,908
40,874
41,263
P 41,415
War industries
Private, 18 selected
industries, total
1,663
r
2,560
r
3,473
4
3,603
3.738
P
3,879
Blst.furn.,st.wrks,etc.
488
604
619
L
622
624
P
624
Foundry &mach. shop prod.
390
567
637
647
656
P
665
Electr.mach.,app.& supp.
246
388
425
432
438
P
447
Smelting and refining
27
31
31
31
31
P
31
Brass, bronze, copper prod.
84
123
r
130
&
130
131
P
131
Aluminum manufactures
29
36
50
51
54
P
54
Machine tools
66
98
126
128
132
P
135
Machine tool accessories
35
58
76
80
82
P
84
Abrasives
9
14
15
16
16
P
17
Screw-machine products
20
33
49
50
52
P
52
Aircraft
88
203
r
392
416
443
P
474
Aero-engines
27
58
r
134
r
145
154
P
161
Shipbuilding
96
220
547
600
659
P
720
Firearms
8
26
59
62
64
p
64
Ammunition
9
25
67
74
79
P
82
Explosives
8
22
45
47
49
P
52
Optical goods
13
r
20
23
23
23
P
23
Instruments
20
34
48
49
51
P
63
Private contractors,
public construction
13
412
748
834
940
Public
117
225
r
354
#
371
400
H
3,197
r
Total
4,575
H
1,793
4,808
5,078
Deep sea merchant vessels
51
50
47
47
47
45
Total WPA employment
1,655
1,055
867
786
698
525
UNEMPLOYMENT (WPA ESTIMATE)
Number of unemployed (thous)
9,300
5,600
3,000
2,600
2,800
2,800
LABOR DISPUTES
All industries 1
Number strikes in progress
390
635
329
P
375
P
440
P
520
Workers involved (thous.)
83
226
74
P
72
P
117
P
100
Man-days idle (thous.)
586
1,326
341
P
325
P
550
P
450
K
Labor disputes affecting
the war effort 2
Number strikes in progress
n.a.
n.a.
95
144
192
222
Workers involved (thous.)
n.a.
n.a.
43
48
85
81
Man-days idle (thous.)
n.a.
n.a.
174
137
255
234
Graph appears on opposite page.
n.a. Not available.
1 Bureau of Labor Statistics.
s War Labor Board.
P Preliminary.
r Revised.
AUGUST 14,1942
CONFIDENTIAL 5
and rising farm prices tend not only to
generates new demands for wage boosts.
increase consumer income, but also to
And wage boosts in turn tend to lift
put pressure on the cost of living.
the cost of all goods produced and thus
And, as the cost of living rises, it
raise the amount the government must
THE INFLATION CHASE
A Circle of Cause, Effect, and Cause
I. The government primes the pump.
600
2. Then, employment rises
7. And so has the cost of
400
(o buyers' market becomes o
living.
Federal
sellers morket in lobor);
Expenditures
200
120
110
1939
1942
Cost of Living
1940
1941
no
100
Employment
100
90
1939
1942
QUESTION: Will higher living
1939
1942
1940
1941
costs foster renewed demands
1940
1941
6. At the some time, prices
for increased wages; will higher
(becouse of higher production costs,
shortages, increased consumer income)
wages then push up production
3. And hourly earnings advance
have been rising steadily.
costs onew; and will higher
(pushing up production costs);
production costs force higher
government expenditures and
130
130
wide-open breaks in OPA's price
ceilings.
120
120
Wholesale
Hourly
Prices
Earnings
110
no
100
100
1939
1942
5. Meanwhile, consumer goods
1939
1942
output, which rose sharply at
4. Result: Consumer income
1940
[941
1940
1941
first, begins to decline.
mounts persistently.
120
160
110
140
Income
Payments
100
120
Consumer Goods
Output
90
100
1939
1942
1939
1942
1940
1941
1940
1941
AUGUST 1939:100
WAR PROGRESS
THE OUTSTANDING FACT ABOUT INFLATION is ITS
CREASES RAISE PRICES, WHICH RAISE THE COST OF
CIRCULAR, CUMULATIVE, SELF-EXPANDING CHARAC-
LIVING AND RAISE COSTS OF MUNITIONS, WHICH
TER. INFLATIONARY DEVELOPMENTS TEND TO SET
RAISE FEDERAL EXPENDITURES AND so ON AND ON.
OFF OTHER INFLATIONARY DEVELOPMENTS-WAGE IN-
WHAT'S NECESSARY NOW IS TO BREAK THE CIRCLE.
22 CONFIDENTIAL
WAR PROGRESS
FOOTNOTES
WAR PROGRESS SERIES
n.a. Not available
P Preliminary
r Revised.
a Total var program includes all funds and authorizations made available for
war purposes by the United States Government plus foreign orders placed in
this country since November 1939. The major portion of the existing pro-
gram has been approved since June 11, 1940, but some authorizations (par-
ticularly portions of the naval expansion program. the merchant shipbuild-
ing program, and the stockpile program) were made available even earlier.
All funds are shown during the fiscal year in which they are available for
obligation.
b Value delivered and / or in place includes (1) value delivered and/or in
place for ships and value of production for other munitions, (2) value in
place for war construction, and (3) checks issued by finance officers for
non-wunitions items.
c Checks paid include (1) all checks paiá out of the Treasury General Fund;
(2) checks issued by the Reconstruction Finance Corporation and subsidiary
Government corporations;(3) checks issued by foreign purchasing commissions.
d United States financed program includes the war activities of all United
States Government agencies (including Lend-Lease) plus the war activities
of government owned corporations, but does not include foreign orders.
e Report on checks paid by the Treasury for the account of the Maritime Com-
mission makes allowance for receipts credited to the Construction Loan Fund.
f Program and obligations for pay for civilians and for the Navy include
only that specifically mentioned in appropriation bills, while the cash
disbursement figures include, in addition, executive war pay which cannot
be separately distinguished in the appropriation bills.
5 Ordnance and naval ships figures revised back to January 1942. In compar-
ing these with prior figures. ordnance and naval ships should be combined.
The
WAR PROGRESS
Confidential
(British Secret)
- -
so - use 1 - 1 -
- -
Stretching Copper - A Job for
the Army and Navy
Our 1942.43 Food Supply
Number 103
September 4, 1942
CONFIDENTIAL
NUMBER 103
WAR PROGRESS
SEPTEMBER 4,1942
Copper -- Big Army-Navy Problem
With four out of every five tons going to direct
an all-time high, yet requirements of
military use, armed services face difficult
2,850,000 short tons will top this year's
choices: what to use metal for in order to
new supply by 150,000 tons.
get maximum munitions.
And even this indicated deficit may
be on the low side--may be too optimis-
AT THE BEGINNING OF THE YEAR, one out
tic. It allows for no diminution in
of every two pounds of copper was going
shipping space for copper imports, ex-
to the Army, the Navy, or the Maritime
pected to reach nearly 800,000 tons this
Commission; today, four out of every
year. Nor does it allow for possible
five pounds are for direct military or
curtailment in the rise in copper out-
shipping needs. Before the year is out,
put; yet many miners are attracted by
the proportion will step up even fur-
higher-paying jobs or are being taken
ther.
in the draft (WP-Aug7'42,p6).
Next year's supply-demand situation
SUPPLY INADEQUATE
is even worse. Estimated requirements
But those large proportions are not
of 3,100,000 tons exceed estimated sup-
enough. Military requirements are so
ply by some 250,000 tons. And the es-
great that supply is insufficient to
timated supply-at 2,850,000 tons-again
meet overall demand. Domestic output
may prove to be overoptimistic. It al-
of copper, plus imports, is running at
lows for unmolested imports and for an
THE MILITARY SQUEEZE ON COPPER
I. Where Copper Goes
2. In What Proportion
200
Cons
100
Consumer Goods
Gds. etc.
and Misc.
Public Service
Public Service
THOUSANDS OF SHORT TONS
Foreign
80
150
Foreign
Industrial Focilities
Industrial Focilities
60
100
Militory
Militory
40
(Army, Novy and Moritime Comm)
(Army, Novy and Moritime Comm.)
% OF TOTAL DELIVERIES
50
20
o
o
Feb.
Mar
Apr.
May
Feb.
fair.
Apr.
May
1942
1942
WAR PROGRESS
HERE YOU SEE THE DRAMATIC SHIFT IN THE PATTERN OF
INASMUCH AS INDIRECT MILITARY USES OF COPPER, SUCH
COPPER USE THIS YEAR. DELIVERIES AGAINST MILITARY
AS IN INDUSTRIAL FACILITIES, COMMUNICATIONS, AND
ORDERS HAVE CRESCENDOED MONTH BY MONTH. YET, AS
TRANSPORT, ARE NOT SEGREGATED, BUT LEFT IN THEIR
SHOWN IN THE CHARTS, THEY ARE REALLY UNDERSTATED,
PEACETIME CATEGORIES.
2
CONFIDENTIAL
WAR PROGRESS
increase of 13% in domestic production
FROM GERMANY'S BOOK
--again notwithstanding shipping short-
By substituting steel in ammunition,
ages and a touchy labor situation.
we save this much copper:
The statistical inferences are clear.
200
200
It's up to the Army and the Navy to make
their copper stretch-for they are get-
150
150
ting a 75% share; and even though civ-
ilian requirements (now mostly indirect
military) may be cut further, the mar-
THOUSANDS OF SHORT TONS
100
100
gin is obviously not great.
THOUSANDS OF SHORT TONS
NO BRASS BUTTONS
50
50
Already, the armed forces have taken
action. The Navy's Bureau of Yards and
Docks is using only half as much copper
o
o
Ist
Qtr.
2nd
Qtc
3rd
Qtr.
4th
Qtr.
1st
Qtr.
2nd
Qtr.
per $1,000,000,000 of construction as
1942
1943-
WAR PROGRESS
before Pearl Harbor (WP-July31'42,p5).
No more brass or bronze is being used
can be made rust-resistant in sea air.
in army insignia, belts, or haversacks.
German experience suggestshow far such
And far more important, the Army is us-
economies in copper can be carried.
ing steel instead of copper in shell
The Nazis are estimated to be turning
cases and bullet jackets. Savings here
out as much ammunition as the United
may run to 600,000 tons a year, or pos-
States, but on one-quarter as much cop-
sibly higher-half domestic mine produc-
per (WP-June 5'42,p3).
tion.
Navy shell-case specifications still
ORDNANCE CHIEF USE
call for copper, but experiments are
Copper used for ordnance, especially
under way to see if steel shell cases
ammunition, constitutes by far the great-
est single use, and hence by far the
greatest single opportunity for stretch-
IN THIS ISSUE:
ing and savings. This is indicated in
the following table, which shows estima-
COPPER-BIG ARMY-NAVY PROBLEM.
1
ted requirements for copper, based on
scheduled factory production, for Army
THE BEST-FED NATION ON EARTH
4
and Navy ordnance, and the relation of
FIVE-STAR FINAL
4
requirements to total copper supply:
FOOD-HERE AND ABROAD
6
Ordnance
% of
Requirements
Estimated
WAR BABIES-THIS TIME AND LAST
7
1942
Short Tons
Copper Supply
WPB TABS PRIORITIES
8
1st qtr.
139,000
35%
2nd qtr.
189,000
36
RAW MATERIAL
9
3rd qtr.
252,000
41
4th qtr.
280,000
46
FINANCIAL DATA
11
1943
ECONOMIC DATA
19
1st qtr.
303,000
52
2nd qtr.
302,000
52
SEPTEMBER 4, 1942
CONFIDENTIAL
3
Thus, half of our copper supply is
destined for ordnance; and out of that
ELUSIVE COPPER
amount, some 90% goes for ammunition.
Right there is the armed forces' big-
What they ask for;
gest "stretch" item. Copper, inadvert-
What they get.
ently, is going into types of ammuni-
tion, weapons, or components that are
Army and Novy
200
being produced faster than objectives
200
or forecasts demand, while other ammu-
Fabricotors'
150
Requests
150
nition and weapons are running behind
schedule because copper is wanting.
100
Deliveries
100
to
Fobricotors
INVENTORY PILE-UP
50
50
Furthermore, production of individ-
ual components of a given type of ammu-
o
0
Jon
nition or weapon is not always in bal-
Feb.
Mar.
Apr.
May
June
July
1942
ance, and end products can be turned out
only as fast as the slowest component.
Moritime Commission
As an example, primers and fuses con-
10
10
taining copper are being made faster
than completed rounds of ammunition.
Thus, copper is stowed away in semi-
THOUSANDS OF SHORT TONS
Deliveries to
8
Fobricators
8
6
Fobricators
6
finished inventories, while raw copper
Requests
4
4
is critically low.
THOUSANDS OF SHORT TONS
2
2
UP TO ARMY AND NAVY
o
0
What it finally comes down to is this:
Jon.
Feb.
Mar.
Apr.
May
June
July
1942
Supply is short and demand is long; by
far the greatest proportion of the sup-
All Others
ply goes to the armed services; copper
100
100
going to all other users cannot be cut
Fobricators'
sufficiently to make up the deficit.
80
Requests
80
Therefore, what we get out of copper in
60
60
overall fighting equipment depends on
Deliveries
to
40
how the Army and the Navy husband, util-
Fobricators
40
ize, and stretch their supplies. They
20
20.
can substitute; they can decide to do
o
0
without certain copper-using items; they
Jon.
Feb.
Moc
Apr.
May
June
July
can make further efforts to reduce the
1942
WAR PROGRESS
use of copper in such items as bakery
equipment, carbonated beverage dispens-
FABRICATORS HOLDING MARITIME COMMISSION CONTRACTS
ers, coffee grinders, dishwashing ma-
HAVE BEEN GETTING JUST ABOUT AS MUCH COPPER AS THEY
chines, food mixers, and other noncombat
NEEDED TOFILL ORDERS. NOT so THOSE WORKING ON ARMY
equipment.
AND NAVY ORDERS; HERE REQUIREMENTS HAVE SPURTED so
FAST THAT DELIVERIES COULD NOT KEEP UP. SHIPMENTS
But they must make choices on how to
AGAINST OTHER TYPES OF ORDERS HAVE BEEN DECLINING,
use their copper, for there is not enough
ALONG WITH ALLOWABLE REQUESTS. BUT THE INFERENCE
to go around.
IS CLEAR: COPPER IS ON À WARTIME FOOTING.
4 CONFIDENTIAL
WAR PROGRESS
The Best-Fed Nation on Earth
Good crop year indicates that U.S. will continue
expected to take 6,000,000,000 pounds
to eat well and in variety, though heavy
of the estimated 23,600,000,000 pounds
shipments abroad will cut consumption
of meat produced in the current crop
of meat, fish, and canned goods.
year, leaving a civilian supply of 17,-
300,000,000 pounds, or 135 pounds per
IDLE ACRES of arable land are few and
person. This compares with 145 pounds
far between this year; and if all goes
in 1941-the last year in which agri-
well with crops and livestock between
cultural production was not planned for
now and harvest, agricultural production
war purposes.
for the year ending June 30, 1943, will
run 9% higher than in 1940-41 and 25%
U-BOATS CUT FISH SUPPLY
above the 1935-39 average.
Fish for civilians will be off also,
As a result, the United States will
for two reasons: First, the catch will
continue to be the best-fed nation on
be reduced, because many fishing vessels
earth, but it will not be fed in the
have been taken over by the Navy and
manner to which it has been accustomed.
the submarine menace has restricted
Our expanding Army and Navy, together
fishing-fleet movements off the East and
with lend-lease exports, will cut into
West coasts. Second, a great proportion
the civilian supply.
of the canned fish will be taken by the
We shall eat more chicken, but less
armed services and lend-lease. Accord-
beef and pork. Poultry output will be
ing to present estimates, U.S. civilians
up 15%-and little chicken goes abroad.
will be able to buy only about 55% as
But lend-lease and the armed forces are
much fresh fish and 12% as much canned
fish as in 1941. (The shortage of tin,
FINAL
plus huge military and foreign demands
AIRCRAFT PLANTS turned out $353,717,-
and stoppage of imports, is already
000 of completed planes last month,
responsible for the disappearance of
a 5% gain over July, but 12% less
some varieties of canned fish from the
than the amount called for in the
market.)
first-of-the-month forecast. Combat
plane output, at $286,000,000, was
MORE CHEESE AND CRACKERS
up only 4% and fell 14% behind the
Dairy and grain products are the
forecast. Noncombat plane accept-
brightest spot in the food picture. De-
ances rose more than 10%, and were
spite heavy shipments to Britain and
only 3% behind schedule.
other nations, an estimated 35,000,000-
As the following table suggests,
000 pounds of fluid milkand cream, over
gains in output of combat planes have
1,000,000,000 pounds of cheese, and more
been flattening out in recent months:
than 3,500,000,000 pounds of evaporated
Combat
Noncombat Total
and condensed milk will be available
(millions of dollars)
for civilian markets. This is about 3%
May
241
54
295
more dairy products than the United
June
260
45
305
States consumed in 1941.
July
275
60
335
Breadstuffs, too, will be plentiful.
August
286
68
354
With a bumper crop of wheat and the
highest stocks of old wheat on record,
SEPTEMBER 4, 1942
CONFIDENTIAL
5
PLUSES AND MINUSES IN THE U.S. MENU
Our food supply -i general-will be plentiful, but shortages of meat, fish, canned
goods will force an adjustment in civilian diet.
30,000
50,000
Meat, Poultry, and Fish
Dairy Products
1941 Consumption
40,000
Land-leges and
20,000
Production 1943
Militory Requirements
30,000
Civilion Supply
20,000
10,000
10,000
0
-
///
777
o
1941 1943
1941 1943
1941 1943
1941 1943
1941
1943
1941 1943
1941 1943
1941 1943
Meat
Poultry
Fresh Fish
Conned Fish
Fluid Milk
Conned Milk
Butter
Cheese
and Cream
800
800
Canned Fruits
Dried or Dehydrated Fruits
600
600
400
400
200
200
MILLIONS OF POUNDS
o
///
777
0
1941
1943
1941 1943
1941 1943
1941 1943
1941 1943
1941 1943
1941 1943
1941 1943
Peoches
Pineopple
Pears
Apples and
Peaches
Apricots
Raisins
Prunes
Applesouce
and Figs
30,000
1,600
Fresh Vegetables and Fruits
Canned Vegetables
MILLIONS OF POUNDS
1,200
20,000
800
10,000
400
o
O
1941
1943
1941 1943
1941 1943
1941 1943
1941 1943
1941 1943
1941 1943
1941 1943
1941
1943
Pototoes
Onions
Lettuce
Oranges
Tomotoes
Peos
Corn
Tomoto
Snop Beons
Juice
25,000
3,000
Grain Products, Sugar
Coffee, Tea, Cocoa
20,000
2,000
15,000
10,000
1,000
5,000
o
1222
1777
o
1941 1943
1941 1943
1941 1943
1941 1943
1941 1943
1941 1943
1941 1943
Wheat Flour
Corn Meol
Rice
Sugar
Coffee
Teo
Cocoo
# Data ore for crop year anding June 30, 1943
Civilian requirements
WAR PROGRESS
TWO YEARS AGO, THE UNITED STATES WAS STILL ON A PRE-
ELS, DESPITE HUGE LEND-LEASE AND MILITARY DEMANDS.
WAR FOOD BUDGET. BUT DURING THIS FISCAL YEAR, EX-
THERE'LL BE MORE CANNED VEGETABLES THAN WE USED IN
PORT AND MILITARY REQUIREMENTS WILL CUT SHARPLY INTO
1941, AS THE CHART SHOWS, BUT LESS THAN IN 1942.
THE SUPPLY OF MEAT, FISH, DRIED FRUIT, ETC. WHEAT
SINCE TEA, COFFEE, AND COCOA DEPEND UPON SHIPPING,
FLOUR FOR CIVILIANS WILL TOP 1941 CONSUMPTION LEV-
1943 ESTIMATES ARE CIVILIAN DEMAND, NOT SUPPLY.
6
CONFIDENTIAL
WAR PROGRESS
plus is creating a storage problem, and
Food Here and Abroad
wooden granaries arebeing built on farms
to prevent the loss of stocks from ex-
THE BRITISH and German diets are
posure.)
heavily weighted with carbohydrates.
A banner year is also indicated for
The American enjoys a far more di-
the vegetable crop. Commercial acreage
versified and balanced menu of pro-
teins and fats, aswell as starches.
planted to vegetables is about the same
as last year, but the yields, with some
This the following table indicates--
and the table understates the United
exceptions, such as lettuce and onions,
States civilian's advantage. U.S.
are about 10% higher. And "Victory"
figures are on a per capita basis
gardens have increased about 10% to 15%
(no differentiation is made between
over 1941 in farming areas, and 25% to
infant and adult consumption). Ger-
50% in villages, towns, and cities.
man and United Kingdom figures are
However, canned vegetables for civilians
based on adult rations.
will be fewer than last year. The Army,
Navy, and lend-lease will take a large
INDICATED WEEKLY CONSUMPTION
portion of the pack-for instance, about
PER CAPITA
ADULT RATION-
one-fifth of the peas, tomatoes and corn,
U. S.
BRITAIN
GERMANY
and about half the snap beans.
MEAT (LB.)
2.7
1
0.7
MILK (QT.)
2.7
3
NIL
BUTTER (oz.)
4.8
2
PLENTY OF FRUIT JUICES
NIL
CHEESE (oz.)
3.2
8
2.8
EGGS (NO.)
6
0.77
1.5
Similarly, from 14% to 100% of im-
BREAD (LB.)
2
N.A.
4.4
POTATOES (LB.)
3.3
N.A.
5.5
portant canned and dehydrated fruits
ORANGES (oz.)
14.4
NIL
NIL
GRAPEFRUIT (oz.)
must be set aside for government use.
3
NIL
NIL
LEMONS (oz.)
14
NIL
HIL
Military and lend-lease exports are ex-
SUGAR (oz.)
8
8
8
pected to absorb about one-fourthof the
N.A. NOT AVAILABLE
canned peaches and pineapple and one-
The Germans get virtually no but-
third of the canned pears, apples, and
ter, but every adult is allowed 7
applesauce. Also, the government has
ounces of fats per week; about 5
tied up the dehydrated and dried fruit
ounces of "Nahrmittel" (cereal cakes)
crop-since fruit can be best shipped
and 2.8 ounces of ersatz coffee.
abroad in this concentrated form-and
On holidays, a small chocolate bar
only small quantities of certain grades
is added. The English import some
will be released to the public. The
oranges, but they are reserved for
civilian supply of fruit juices will be
children. A major difference be-
plentiful.
tween the English and German ration
is that an Englishman can supplement
NO BANANAS
his rations with a restaurant meal;
Imported food items will be off sharp-
in Germany, restaurant food counts
ly-as might be expected. Bananas are
as part of the ration.
already scarce-banana boats are being
used for war goods. Shipping space has
we can feed our Army and Navy and send
seriously constricted our tea, coffee,
to Britain, Russia, and other countries
and cocoa supplies.
as much wheat and flour as shipping
Compared with nations abroad, the
space allows, without stinting the do-
United States will still enjoy a com-
mestic market. (Indeed, our grain sur-
paratively full menu. The German diet
SEPTEMBER 4, 1942
CONFIDENTIAL
7
WAR BABIES - THIS TIME AND LAST
Birth rates dropped sharply from 1914 to 1916, but from 1939 to 1941 some increases
have taken place.
England and Wales
Scotland
Germany
40
40
40
40
30
30
30
30
20
20
20
20
10
10
10
10
o
o
o
o
'14
15
'16
39
'40
'41
'14
'15
'16
'39
'40
'41
'14
'15
'16
39
'40
'41
France
Hungary
Italy
40
40
40
40
BIRTH RATES PER THOUSAND POPULATION
30
30
30
30
20
20
20
20
10
10
10
10
BIRTH RATES PER THOUSAND POPULATION
0
*
*
o
*
o
*
0
'14
15
'16.
'39
'40
'41
"14
'15
"16
'39
'40
'41
'14
15
'16
'39
'40
'41
Australia
New Zealand
United States
40
40
40
40
30
30
30
30
20
20
20
20
10
10
10
10
o
o
o
*
0
'14
15
'16
'39
'40
'41
14
15
'16
39
'40
'41
'14
'15
'16
'39
'40
41
X Not ovailable
WAR PROGRESS
THESE CHARTS TELL THREE TALES. ONE: ON A LONG-
PEOPLE WERE SCARED. ALSO, LARGE NUMBERS OF MEN WERE
TERM BASIS (1914-1939), THE BIRTH RATE HAS FALLEN
NEEDED CONSTANTLY AT THE FRONT. THREE: THIS TIME THE
EVERYWHERE; THAT GOES FOR COUNTRIES WITH A "POPULA-
FALL IN THE BIRTH RATE HAS BEEN MUCH LESS EMPHATIC.
TION POLICY* (GERMANY AND ITALY) AS WELL AS FOR
MOBILE (BLITZKRIEG) WARFARE-UP TO THE RUSSIAN CAM-
COUNTRIES WITHOUT GOVERNMENT BOUNTIES FOR BABIES.
PAIGN-REQUIRED LARGE ARMIES FOR SHORT PERIODS ONLY.
TWO: IN THE FIRST TWO YEARS OF THE LAST WAR, THE
AND, IN THE UNITED STATES, WAR-800MED BUSINESS AC-
NUMBER OF BIRTHS FELL SHARPLY THROUGHOUT EUROPE.
TIVITY RAISED INCOMES OF MANY YOUNG COUPLES TO THE
THE GOLDEN AGE OF FREEDOM AND LIBERALISM WAS OVER:
CHILD-HAVING LEVELS.
8
CONFIDENTIAL
WAR PROGRESS
consists primarily of bread, potatoes,
program-as set forth in WPB and ANMB
very little meat, and hardly any fruits
objectives--is complied with.
and vegetables. The average Englishman
has a more diversified diet than the
BETTER TIMING
German, but far less than the average
Thus, the 150 priority specialists
American. His pound of meat per week
will check all PD-3A orders to see that
compares with 2.6 pounds here. The
materials are not tied up in idle in-
Englishman must get along on 40 eggs
ventories. For example, if an airport
a year; an American averages about 25
is being built, the procurement officer
a month. Interestingly enough, a German
would be justified in assigning a high
gets more eggs than an Englishman.
priority rating for all materials. But
the ratings do not have to be issued
GREATER SHORTAGES COMING
simultaneously--neither is it necessary
However, by the end of 1943, our do-
to bring materials to the site immed-
mestic food supply may shorten consid-
iately. Before asphalt can be used on
erably. Two factors are at work. De-
runways, grading and leveling must be
mands of the United Nations are still
finished. Six months may elapse
In
increasing, while U.S. production may
the past, procurement officers may have
fall off because of (1) scarcity of farm
issued ratings to get the asphalt at
labor, (2) hazards of weather, and (3)
once, thus perhaps depriving another
transportation difficulties.
job of the material; WPB officials
will see that the rating is issued only
when the material is needed.
WPB Tabs Priorities
Another effect of the system will be
150 specialists will check on Army and Navy
to check overissuance of ratings. Sup-
procurement offices to guard against
pose one procurement district is au-
overissuance of high preference ratings
thorized to issue AA-1 ratings on 1,000
and inventory tie-ups of materials.
tanks and AA-3 ratings on 3,000 tanks:
The WPB priority specialists will coun-
THE WAR PRODUCTION BOARD is taking steps
tersign AA-1 certificates for materials
to implement its decision to review
to make no more than 1,000 tanks, even
and approve preference ratings assigned
if the plants in the area are capable
by Army and Navy procurement offices.
of making more than the schedule calls
Some 150 WPB priority specialists are
for. Heretofore, procurement officers
being stationed at procurement offices
were not limited by such on-the-spot
to see that assignments of PD-3A pref-
checks.
erence ratings comply with WPB and Army
and Navy Munitions Board directives.
NO OVERALL SYSTEM YET
Up to now, the prime objective of
Ultimately, the specialist system
procurement officers has been to get
of issuing ratings may work up into a
materials and production fast on their
plan for overall control of materials
own particular items, even though the
utilization. But as yet no adequate
overall war program, or parts of it,
system of accounting--of checking rat-
might be held up as a result.
From
ings issued by the various procurement
now on, WPB officials will take & hand
districts against the overall produc-
in the issuance of preference rating
tion schedule and supply of raw mate-
orders and see to it that the overall
rials--has been worked out.
6 CONFIDENTIAL
WAR PROGRESS
WAR HAS LIFTED THE PRICE LEVEL 32 %,
BUT FARM PRICES HAVE ADVANCED IO4 %
220
220
200
200
180
IBO
AUGUST 1939 100
160
160
Form Prices
AUGUST 1939 100
140
140
120
120
All Commodities
100
100
J J A S o N D J F M A M J J A S o N D J F M A M J J A S 0 N D J F M A M J J
1939
1940
1941
1942
WAR PROGRESS
EVER SINCE THE WAR BEGAN IN SEPTEMBER, 1939, INGS. BUT FARM PRICES ARE A BIG EXCEPTION.
DEMANDS FOR A LONG LIST OF COMMODITIES HAVE
THEY REGISTERED THE GREATEST GAINS PRIOR TO
MULTIPLIED, AND PRICES HAVE RISE'I ACCORDING-
THE GENERAL MAXIMUM PRICE REGULATION. AND
LY. OF LATE, THE EFFECT OF THIS DEMAND HAS
NOW, THOUGH THEIR RATE OF RISE HAS SLOWED UP,
BEEN PARTLY NULLIFIED BY OPA's PRICE CEIL-
THEY STILL CONTINUE TO ADVANCE.
pay for munitions and other supplies.
But soon, consumer stocks will run
Thus government expenditures advance
down and consumer spending habits can
some more, increasing the level of na-
be expected to rise to the new-and
tional income and consumer purchasing
higher-level of income in the country.
power ina renewed assault on the price
What's more, higher taxes and increased
structure.
replacement costs are making it increas-
Higher Costs Absorbed
ingly difficult for businessmen to hold
to the price ceilings. Indeed, some
To date, after three months of the
deterioration in quality has already
General Maximum Price Regulation, what
developed; prices are held, but consumers
stands out is that it has worked as well
are not getting what they used to get
as it has. There are reasons for it,
for their money.
of course. At first, profit margins
were ample, and manufacturers, whole-
Danger Period Ahead
salers, and retailers could absorb some
Thus, the factors that acted as a
of the higher costs.
safety cushion during the first three
Álso, inventories were large, and
months of General Maximum Price Regu-
merchants were not immediately faced
lation are likely to begin working in
with replacing goods sold with. higher-
the opposite direction. Consumers will
cost stocks. Further, consumers-having
start buying closer to their higher in-
bought ahead during 1941, trying to beat
comes; merchants will have to replace
price advances--were not heavily in the
goods at higher costs; and profits won't
market for goods.
stand for it. So it vould be rash to
SEPTEMBER 4, 1942
CONFIDENTIAL
9
Raw Material
Nature's temperatures. Department-
store shoppers are likely to be next.
But air-conditioning systems in theatres,
EMERGENCY STEELS
recreation halls, etc., are regarded
MEET A NEW TERM-"National Emergency
as necessary for morale--at least now.
Steels." More than 40 new steel form-
ulas have been devised to save criti-
IRONY
cal alloying materials, such as chrome
AN OREGON ALUMINUM ingot plant was re-
and nickel. An early series of N. E.
cently rushed to completion by top pri-
steels called for a 12% increase in mo-
orities on materials. But when com-
lybdenum in order to attain a 25% econ-
pleted, it couldn't open. The neighbor-
omy inchrome and nickel. Since "moly"
hood labor supply had been drained away
is getting short too, three new series
by the very shipyards and aircraft plants
of N. E. formulas have been developed,
which needed the aluminum the plant was
using about the same amount of molyb-
to produce.
denum as formerly. Still another series
QUOTAS FOLLOW SALES
uses bdenum-only manganese, sil-
icon, and chrome. National emergency
THE TREASURY has been consistently re-
steels are meeting increasing accept-
ducing its monthly quotas for war bond
ance. About one-sixth of the total
sales--from $1,000,000,000 in July to
scheduled alloy steel meltings are now
$815,000,000 in August to $775,000,000
in the N. E. categories.
in September. Probable reason: Sales
have fallen consistently below the goal.
BOMBPROOFING CHART PAPER
August was 14% behind, July, 10%.
BRITAIN HAS GONE IN heavily for concen-
July sales, incidentally, were boosted
trating production. But the Admiralty
by relaxation in the purchase rules
put its foot down when it came to "con-
(chart, page 20). Up to that time, no
centrating" in one plant firms making
individual or institution could buy
chart paper; it would not risk having
more than $50,000 of high-denomination
its chart paper supply bombed out.
bonds in any year; in July, that was
BACK TO NATURE
boosted to $100,000, and big purchases
jumped--but not enough to meet the quota.
NOT FAR OFF is an order to permit req-
uisitioning of certain civilian air-
OPENING THE GAP
conditioning equipment for transfer to
SINCE JULY, 1940, the Federal deficit
war plants, especially where tempera-
has been consistently financed as fol-
ture control is a factor in precision
lows: two-thirds through sales of bonds
work and manufacturing processes. Ex-
to individuals, mutual savings banks,
amples: ammunition, airplane engine,
insurance companies, trust funds, etc.,
synthetic rubber, and aviation gasoline
and one-third out of bank credit (chart,
production. Object is to save steel,
page 20). With sales of war savings
copper, and cast iron by utilizing ex-
bonds falling behind quotas (above),
isting installations. Office workers--
the Treasury will have to continue to
perhaps led by employees in the Social
finance a large part of the deficit at
Security and Railroad Retirement build-
commercial banks, thus widening the po-
ings-may be the first to go back to
tential "inflationary gap."
IO ... CONFIDENTIAL
WAR PROGRESS
THE WAR PROGRAM- Financial Summary
300
300
250
250
200
200
BILLION DOLLARS
150
150
PROGRAM
(Appropriations and Net Authorizations)
BILLION DOLLARS
100
100
50
50
CONTRACT AND
OTHER COMMITMENTS
VALUE OF PRODUCTION
o
0
J A S o N D J F M AMJJASONDJFMAM J J A S O N D
1940
1941
1942
WAR PROGRESS
SEPTEMBER 4, 1942
CONFIDENTIAL
II
WAR PROGRESS SERIES
TOTAL WAR PROGRAM IN THE UNITED STATES
Cumulative 6/11/40 to
Monthly
End 1st
End of
End of
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
TOTAL WAR PROGRAM IN THE U.S.ᵃ
(Million
dollars)
Program-Pending
P 9,525
Program-Enacted
40,861
80,604
P 174,384
0
P 5,615
P 44,471
Uncommitted balance
9,274
23,979
P 40,290
-
-
-
Contracts and other
commitments
31,587
56,625
p 134,094
P. 9,731
P 12,098
n.a.
Value delivered and/or in
place b
8,547
18,573
P 39,222
P 4,060
P 4,602
n.a.
Checks paid c
8,536
17,965
p 37,562
3,925
P 4,156
P 4,824
MUNITIONS PRODUCTION.& WAR CONSTRUCTION,
TOTAL
Program
37,027
69,305
P 156,214
0
P 5,358
P 32,543
Uncommitted Balance
7.597
18,281
P 33,761
-
-
-
Contracts and other
commitments
29,430
51,024
P 122,453
P 9,107
p / 9,999
n.a.
Value delivered and/or
in place b
6,795
14,750
P 32,184
p 3,465
p 3,882
n.a.
Value not delivered nor
in place
22,635
36,274
P 90,269
-
-
-
PRODUCTION OF MUNITIONS
Program
28,566
53,738
P 124,097
-25
P 4,756
P 29,952
Uncommitted balance
4,901
13,929
p 29,106
-
-
-
Contracts and other
commitments
23,665
39,809
P 94,991
P 6,668
P 6,942
n.a.
Value delivered and/or
in place
b
4,290
8,940
20,449
2,248
2,638
P 2,955
Value not delivered nor
in place
19,375
30,869
P 74,542
-
-
-
WAR CONSTRUCTION
Program
8,461
15,567
P 32,117
25
P
602
P - 2,591
Uncommitted balance
2,696
4,352
p 4,655
-
-
-
Contracts and other
commitments
5,765
11,215
P 27,462
P 2,439
P 3,057
n.a.
Value delivered and/or
in place
b
2,505
5,810
P 11,735
P 1,217
P 1,244
n.a
Value not delivered nor
in place
3,260
5,405
P 15,727
-
-
-
NON-MUNITIONS WAR ITEMS, TOTAL
Program
3,834
11,299
P 18,170
0
P
257
P 11,928
Uncommitted balance
1,677
5,698
P 6,529
-
-
-
Contracts and other
commitments
2,157
5,601
P 11,641
P
624
P 2,099
n.a.
Checks issued
1,752
3,823
P 7,038
P
595
P
720
n.a.
Graph appears on opposite page.
For footnotes see Page 22.
Table continued on Page 13.
12 CONFIDENTIAL
WAR PROGRESS
MUNITIONS PRODUCTION-I Financial Summary
154
150
150
125
125
100
100
BILLION DOLLARS
PROGRAM
(Appropriations and Net Authorizations)
75
75
BILLION DOLLARS
50
50
CONTRACT AND
25
OTHER COMMITMENTS
25
0
VALUE OF PRODUCTION
0
J A S 0 N D J F M A M J J A S o N D J F M A M J J A S o N D
1940
1941
1942
WAR PROGRESS
SEPTEMBER 4, 1942
CONFIDENTIAL
13
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million dollars'
BREAKDOWN OF MUNITIONS PRODUCTION
MUNITIONS PRODUCTION, TOTAL
Program
28,566
53.738
P124,097
-25
P 4,756
P 29,952
Uncommitted balance
4,901
13,929
P 29,106
-
-
-
Contracts and other
commitments
23,665
39,809
P 94,991
P 6,668
P 6,942
n.a.
Value delivered and/or
in place
b
4,290
8,940
20,449
2,248
2,638
P 2,955
Value not delivered nor
in place
19,375
30,869
P 74,542
-
-
-
AIRPLANES, PARTS & ACCESSORIES
Program
8,582
15,072
P 37,586
0
P
-215
P 9,737
Contracts and other
commitments
7.381
13,298
P 33,945
P
2,409
P 2,838
n.a.
Value delivered
1,010
2,265
4,752
471
510
P
549
ORDNANCE
Program
7.778
17,488
p 36,400
0
p
285
P 9,548
Contracts and other
commitments
5,418
10,354
P 26,873
P
2,278
P 2,360
n.a.
Value delivered
700
1,685
4,998
6966
731
P
904
NAVAL SHIPS
Program
6,796
9,605
P 18,460
o
P
2,922
P
0
Contracts and other
commitments
6,442
7,930
p 12,276
275
P
276
n.a.
Value delivered and/or
in place
810
1,665
3,383
399°
404
P
451
MERCHANT SHIPS
1,442
3,288
P 8,653
-25
P 1,054
P
Program
0
Contracts and other
commitments
1,484
2,381
P 6,880
P
607
P
618
n.a.
Value in place
240
510
1,188
131
176
187
OTHER MUNITIONS AND SUPPLIES
Program
3,968
8,285
P 22,998
0
P
710
P 10,667
Contracts and other
commitments
2,940
5,846
P 15,017
P 1,099
P
850
n.a.
Value delivered
1,530
2,815
6,128
551
817
P
864
Graph appears on opposite page.
For footnotes see Page 22.
Table continued on Page 15.
14 ... CONFIDENTIAL
WAR PROGRESS
WAR CONSTRUCTION- Financial Summary
50
50
40
40
30
BILLION DOLLARS
30
PROGRAM
(Appropriations and Net Authorizations)
20
BILLION DOLLARS
20
CONTRACT
AND OTHER
COMMITMENTS
10
10
VALUE OF PRODUCTION
o
0
J A S 0 N D J F M A M J J A S 0 N D J F M A M J J A S 0 N D
1940
1941
1942
WAR PROGRESS
SEPTEMBER 4, 1942
CONFIDENTIAL 15
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
May
June
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million dollars)
BREAKDOWN OF WAR CONSTRUCTION
WAR CONSTRUCTION, TOTAL (LAND, BLDGS., EQUIP.)
Program
8,461
15,567
P 32,117
25
P
602
P 2,591
Uncommitted balance
2,696
4,352
P 4,655
-
-
I
Contracts and other
commitments
5,765
11,215
P 27,462
P 2,439
P 3,057
n.a.
Value in place
2,505
5,810
P 11,735
P 1,217
P 1,244
n.a.
Value not in place b
3,260
5,405
P 15,727
1
-
-
INDUSTRIAL FACILITIES (LAND, BLDGS., EQUIP.)
Program
5,120
8,112
P 17,610
25
P
707
P
172
Contracts and other
commitments
2,865
6,318
P 16,697
P 1,047
P 1,592
n.a.
Value in place
960
2,800
P 5,990
P
629
P
615
n.a.
INDUSTRIAL FACILITIES, BUILDINGS ONLY
Program
1,607
3,137
P 6,030
P
389
P
768
n.a.
Value in place
575
1,753
P. 2,990
P
287
P
307
P
344
POSTS, DEPOTS, STATIONS
Program
2,849
6,063
P 13,115
0
P
-105
P 2,419
Contracts and other
commitments
2,625
4,381
P 9,890
P 1,317
P 1,390
n.a.
Value in place
1,430
2,670
P 5,179
P
545
P
580
n.a.
DEFENSE HOUSING
Program
492
1,392
P 1,392
0
P
0
P
0
Contracts and other
commitments
275
516
P
875
P
75
P
75
n.a.
Value in place
115
340
P
566
P
43
P
49
n.a."
BREAKDOWN OF
NON-MUNITIONS
NON-MUNITIONS, TOTAL
Program
3,834
11,299
P 18,170
0
P
257
P 11,928
Uncommitted balance
1,677
5,698
P 6,529
-
-
-
Commitments
2,157
5,601
P 11,641
P
624
P 2,099
n.a.
Checks issued by agencies b
1,752
3,823
P 7.038
P
595
P
720
n.a.
STOCKPILE
Program
983
2,399
P 2,713
0
P
0
P
0
Commitments
470
1,050
P 1,140
P
30
P
0
n.a.
Checks issued by agencies
192
488
P
1,011
P
102
P
100
n.a.
Graph appears on opposite page.
Table continued on following page.
For footnotes see Page 22.
16 ... CONFIDENTIAL
WAR PROGRESS
WAR PROGRESS SHRIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million
dollars)
BREAKDOWN OF NON-MUNITIONS (Continued)
AGRICULTURAL EXPORTS (LEND-LEASE)
Program
625
1,522
P 2,138
0
P
0
P
0
Commitments
66
561
P 1,143
P
65
P
149
n.a.
Checks issued by agencies
1
211
P
629
87
P
90
n.a.
PAY, SUBSISTENCE & TRAVEL f
Army Military
Program
944
3,013
P 3,904
0
P
0
P 8,534
Commitments
934
2,030
P 3,849
P
281
P
285
n.a.
Checks issued
696
1,510
P 2,744
P
220
P
315
n.a.
Navy Military
Program
378
963
P
2,478
0
P
232
p
0
Commitments
334
610
P 1,143
P
110
p
104
n.a.
Checks issued
388
642
P 1,042
P
70
P
98
n.e.
Civilian Payroll
Program
32
247
P
299
0
P
46
p
542
Commitments
32
140
P
255
p
15
p
20
n.e.
Checks issued
356
682
P 1,115
P
79
P
80
n.a.
MISCELLANEOUS NON-MUNITIONS
Program
872
3,155
p 6,638
0
p
-21
P 2,852
Commitments
321
1,210
P 4,111
P
123
P 1,541
n.a.
Checks issued by agencies
119
290
P
497
P
37
P
37
n.a.
P Preliminary
Table continued on following page.
For footnotes see Page 22.
SEPTEMBER 4, 1942
CONFIDENTIAL
17
WAR PROGRESS SERIES
TOTAL UNITED STATES WAR PROGRAM
Cumulative 6/11/40 to
Monthly
FINANCIAL PROGRAM
End 1st
End of
End of
SUMMARY
full year
December
June
May
June
July
6/30/41
12/31/41
6/30/42
1942
1942
1942
(Million dollars)
d
BREAKDOWN OF AGENCIES
UNITED STATES FINANCED WAR PROGRAM
Program
37,075
76,508
P 170,288
0
P 5,615
P. 44,471
Uncommitted balance
9,274
23,979
P 40,290
-
-
-
Contracts and other
commitments
27,801
52,529
D 129,998
P
9.731
P 12,098
n.a.
Checks paid
6,431
15,251
P 34,510
3,880
P 4,123
P
4,794
U. S. ARMY
Program
13,134
31,981
P 84,468
0
P
0
P 42,090
Contracts and other
commitments
P 70,402
p
11,404
23,334
6,138
P 8,397
n.a.
Checks paid
3,636
7,889
15,649
1,497
1,662
n.a.
U. S. NAVY
Program
12,308
20,024
P 47,990
0
P 4,355
P
0
Contracts and other
commitments
11,182
16,327
P 32,325
P 1,971
P 2,361
n.a.
Checks paid
2,217
4,726
10,128
1,229
1,237
n.a.
LEND-LEASE
Program
7,000
12,985
P 18,410
0
P
0
P
0
Allocations
5,177
11,345
14,085
508
-281
n.a.
Contracts and other
commitments
2,458
6,282
10,665
305
484
n.a.
Checks paid
21
910
4,099
626
665
n.a.
U. S. MARITIME COMMISSION
Program
784
2,734
P 7,654
0
P 1,070
P
0
Contracts and other
commitments
886
1,724
P 6,333
608
P
631
n.a.
Checks paid (Net)
44
156
642
93
114
n.a.s
RFC AND SUBSIDIARIES
Program
2,623
5,130
P 7,704
0
P
o
P
0
Contracts and other
commitments
1,151
3,569
P 7,916
P
509
e
0
n.a.
Checks issued by RFC
350
956
P 2,510
327
P
300
P
300
OTHER U. S. AGENCIES
Program
1,226
3,654
P 4,062
o
P
190
P 2,381
Contracts and other
commitments
720
1,293
P 2,357
P
200
P
225
n.a.
Checks paid
163
614
1,482
108
145
n.a.
FOREIGN ORDERS
Program (Orders)
3,786
4,096
P 4,096
0
P
0
P
0
Commitments
3.786
4,096
P 4,096
0
P
0
P
0
Checks issued by
Purchasing Missions
2,105
2,714
P 3,052
45
P
33
P
30
For footnotes see Page 22.
18 CONFIDENTIAL
WAR PROGRESS
WAR OUTLAYS AND NATIONAL INCOME
120
120
Annual Rates
Income Payments
100
100
80
80
BILLION DOLLARS
60
60
BILLION DOLLARS
40
40
Wor Expenditures
20
20
0
0
1940
1941
1942
WAR PROGRESS
WHAT'S HAPPENING TO WHOLESALE PRICES
180
IBO
PRICE CEILING
160
160
AUGUST 1939 = 100
Strategic Moteriols
140
140
AUGUST 1939 = 100
Bosic Commodities
120
120
Critical Moteriols
All Commodities
100
100
J A S o N D J F M A M J J A S o N D J F M A M J
J
August
September
1940
1941
1942
WAR PROGRESS
AUGUST 14,1942
CONFIDENTIAL
7
project the horizontal trend in the cost
in prewar days. But, to cope with the
of living very far into the future--
influx of war workers and visitors,
unless adequate controls over wages and
3,200-about 40%-more are needed, and
farm prices are quickly worked out.
can't be found. So if your waiter takes
a long time returning after he hands
you the napkin, think of this: For want
Raw Material
of a dishwasher, he may be in the kitch-
en washing your cutlery.
WAR WORKERS TO THE ARMY
WAR INDUSTRIES supply relatively more
DIVERSIFYING THE SHIPMENT
men for military service than nonwar
SO AS NOT to put all the eggs in one
industries. This fact became sharply
bottom, wartime shipping authorities
apparent in June, when the armed forces
diversify their cargoes--mixing foods,
siphoned off nine out of every 1,000
guns, tanks and steel. Thus, if a ship
workers in the war industries asagainst
goes down, the loss is not all in one
only seven per 1,000 in nonwar indus-
crucial item. The punishing effect of
tries. The firearms industry was tops
losing all-of-a-kind cargoes is illus-
in losses to the armed forces--12 work-
trated by the East coast oil shortage.
ers per 1,000.
Possible reasons for heavier trans-
G. P. 0. PLATES
fers among war workers are: (1) some
OWNERS OF OLD PRINTING PLATES must con-
Selective Service Boards in densely
tribute them to the war effort before
concentrated defense areas can't help
acquiring new metal. But one big owner
conscripting war workers to fill local
of lead, copper, and zinc plates-the
quotas, regardless of industry needs;
federal government-can't fully comply.
(2) many war industries, such as fire-
A federal law requires the Government
arms and airplanes, are comparatively
Printing Office to hold plates for spec-
new and have attracted younger and un-
ified lengths of time.
married workers, thus creating a bulge
in military eligibles. The relative
NO BLUE CHINA
distribution of women between war and
BLUE CHINA AND POTTERY are out for the
nonwar plants probably is not a major
duration. Manufacturers no longer may
factor in the disparity.
use cobalt compounds to get blue color-
ing, cobaltbeing needed for tough steel
HELP WANTED
alloys used in shells and delicate parts
IF YOUR WIFE cannot find a maid or if
of high-altitude planes. Imports of
you have to wait in line to get a meal
blue china from England, including Wedg-
at a restaurant, here's why: Washing-
wood, are forbidden; thus American manu-
ton hotels, boarding houses, and res-
facturers won't lose their markets by
taurants employed 8,100 negro workers
default.
SEPTEMBER 4, 1942
CONFIDENTIAL
19
ECONOMIC ACTIVITY RELATED TO THE WAR
Note: Certain statistical series included in these tables are nonconfidential and are
published in such public documents as the Federal Reserve Bulletin, Survey of Current Bus-
iness, etc. Obviously inclusion here should not be construed as a limitation on their use.
1940
1941
1942
Week ending
July
July
June
July
Aug. 22
Aug. 29
BLS PRICE INDEXES
Strategic materials
123.6
140.3
147.6
147.7
147.8
147.8
Critical materials
8/39
107.5
115.2
123.2
123.9
124.0
124.0
Basic commodities
=100
108.5
148.7
166.4
167.2
166.9
166.6
Machine tools
108.7
117.6
118.0
118.0
-
-
All commodities (1926=100)
77.7
88.8
98.6
p 98.7
P
98.9
P.
98.9
TRANSPORTATION
Freight cars
Loadings (thous. per week)
706
853
846
830
869
899
Unloads for export (dly.av.)
Atlantic & Gulf ports (no.)
1,494
1,614
1,950
1,718
1,904
1,955
Pacific ports (no.)
112
159
490
608
711
724
Surplus cars (dly.av.thous.)
Total
132
77
83
77
62
Box cars
55
30
57
47
41
Coal cars
48
27
9
12
6
Bad order cars, total,
first of month (thous.)
153
85
63
57
(Augh1)55
ELEC. POWER PROD. (mil. kwh.)
12,094
14,226
15,182
16,004
3.674
3,640
1940
1941
1942
July
July
April
May
June
July
INCOME PAYMENTS
Annual rate, billion dollars
75.8
93.3
r 108.6
r 109.5
112.0
p 113.7
Monthly income payments
Total (million dollars)
6,285
7,739
r 8,809
r 8,629
9,553
P. 9,383
Salaries & wages, total
4,035
5,168
r 6,073
r 6,258
6,498
P 6,506
Commodity-producing
industries
1,571
2,346
I 2,773
r 2,891
2,998
P. 3,093
Distributive industries c
1,061
1,207
1,280
1,297
1,298
P 1,296
Service industries c
819
906
r
951
r
957
959
P.
957
Government C
465
623
1,001
1,055
1,190
P. 1,115
Work relief wages
119
86
68
58
53
d
45
All other income payments
2,250
2,571
2,736
2,371
3,055
P
2,877
RETAIL SALES
Total (million dollars)
3,643
4,509
4,531
4,499
4,445
P 4,389
Unadj. index, 1935-39=100
Total, all retail stores
110.4
136.6
139.8
140.3
137.2
0 132.9
Durable goods
129.8
172.1
108.0
109.9
106.0
P. 102.1
Nondurable goods
104.1
125.1
150.1
150.1
147.3
p
142.9
Graph appears on opposite page.
r Revised
P Preliminary
C
Friday unloads.
Confidential
20 CONFIDENTIAL
WAR PROGRESS
WHO HOLDS THE FEDERAL DEBT
100
100
80
80
BILLIONS OF DOLLARS
60
60
Other Institutions and Individuals
BILLIONS OF DOLLARS
40
40
Savings Banks and insurance Componies
Government Agencies
20
20
Federal Reserve and Commercial Banks
o
o
1940
1941
1942
Interest bearing direct and guaranteed obligations.
WAR PROGRESS
TRENDS IN WAR BOND SALES
1200
1200
1000
1000
Total Defense Bond Sales
800
800
MILLIONS OF DOLLARS
600
600
MILLIONS OF DOLLARS
400
400
Sales to Individuals
Soles to Institutions
200
200
o
o
M
J
J
A
S
0
N
D
J
F
M
A
M
J
J
A
S
0
N
D
1941
1942
WAR PROGRESS
SEPTEMBER 4, 1942
CONFIDENTIAL
21
ECONOMIC ACTIVITY RELATED TO THE WAR
1940
1941
1942
July
July
May
June
July
August
BUR. FOR. & DOM. COM. MFRS.
ORDERS, SHIPMENTS, INVENTORIES
(Indexes)
New orders, total (1/39-100)
127
212
270
314
P
253
Shipments, total
103
163
203
202
P
207
Inventories, total
1939 av.
112.2
136.4
170.4
172.9
P
174.7
Durable
mo.=100
113.9
150.3
190.2
193.2
P 196.4
Nondurable
110.7
124.3
153.1
155.1
P 155.7
FEDERAL DEBT, END OF MONTH
Gross debt (Bil. dollars)
43.8
49.5
68.6
72.4
77.1
81.7
Less: Balance in gen. fund
2.3
2.6
2.8
3.0
3.3
3.2
Net
41.5
46.9
65.8
69.4
73.8
78.5
Guaranteed obligations not
owned by the Treasury
5.5
6.9
5.7
4.6
4.6
4.6
Total
47.0
53.8
71.5
74.0
78.4
83.1
WAR BOND SALES (Mil. dollars)
-
342
634
634
901
697
EMPLOYMENT (Thousand workers)
Total civil nonagricultural*
36,800
40,200
41,400
41,800
42,300
War industries
Private, 18 selected ind.
1,663
2,560
3,603
3,738
P 3,879
Private contractors,
public construction
13
412
834
940
Public
117
225
371
400
Total
1,793
3,197
4,808
5,078
Deep sea merchant vessels
51
50
47
47
45
Total WPA employment
1,655
1,055
786
698
525
UNEMPLOYMENT
Number of unemployed(thous
9,300
r 5.700
2,600
2,800
2,800
Graph appears on opposite page.
r Revised
p Preliminary
*
Estimate of Sample Surveys Section of Bureau of Census.
22 CONFIDENTIAL
WAR PROGRESS
FOOTHOTES
WAR PROGRESS SERIES
n.a. Not available
P Preliminary
r Revised.
a Total war program includes all funds and authorizations made available for
war purposes by the United States Government plus foreign orders placed in
this country since November 1939. The major portion of the existing pro-
gram has been approved since June 11, 1940, but some authorizations (par-
ticularly portions of the naval expansion program, the merchant shipbuild-
ing program, and the stockpile program) were made available even earlier.
All funds are shown during the fiscal year in which they are available for
obligation.
b Value delivered and / or in place includes (1) value delivered and/or in
place for ships and value of production for other munitions, (2) value in
place for war construction, and (3) checks issued by finance officers for
non-wunitions items.
c Checks paid include (1) all checks paiá out of the Treasury General Fund;
(2) checks issued by the Reconstruction Finance Corporation and subsidiary
Government corporations;(3) checks issued by foreign purchasing commissions.
d United States financed program includes the war activities of all United
States Government agencies (including Lend-Lease) plus the war activities
of government owned corporations, but does not include foreign orders.
e Report on checks paid by the Treasury for the account of the Maritime Com-
mission makes allowance for receipts creditedto the Construction Loan Fund.
f Program and obligations for pay for civilians and for the Havy include
only that specifically mentioned in appropriation bills, while the cash
disbursement figures include, in addition, executive war pay which cannot
be separately distinguished in the appropriation bills.
8 Ordnance and naval ships figures revised back to January 1942. In compar-
ing these with prior figures. ordnance and naval ships should be combined.
1
WAR PROGRESS
Confidential
(British Secret)
159. THE Ber WE - - sm и R
- by - - MAK 20/073
War Production in August
Scorecard on Merchant Shipping
Number 104
September 11,1942
CONFIDENTIAL
NUMBER 104
WAR PROGRESS
SEPTEMBER II, 1942
Production Drive Losing Momentum
August munitions output is up only 6% over
consistently higher increases. For ex-
July, as monthly gain falls increasingly
ample, from March to April, output was
short of forecast. Model changes are part-
scheduled to rise $500,000,000, and the
ly responsible.
actual increase was 85% of that figure;
for August, the forecast called for a
THE RISE in munitions output is defi-
$750,000,000 gain, but the actual in-
nitely losing momentum. Preliminary
crease was only 25% of the mark. And
estimates of August output, at $3,140,-
total munitions production fell 16%
000,000, showed a gain of only 6% above
short of the forecast.
the July total. Even more important,
month-to-month gains have been declin-
PRODUCTION BEHIND PLANS
ing ever since May, as the following
The overall inference is this: Our
table shows:
planning eyes have been bigger than our
production stomach--or, to put it dif-
Period
Increase
% Increase
ferently, our production has not been
able to keep pace with oùr planning.
May-June
$390,000,000
17%
Andfor the full year, output seems des-
June-July
317,000,000
12
tined to fall considerably short of the
July-August
185,000,000
6
production objectives.
To some extent, August output was
Yet forecasts have been calling for
damped down by changes in models. Thus,
EXPECTATIONS OUTRUN
600
600
I. Here are the actual month-to-month
gains.
MUNITIONS OUTPUT
MILLIONS OF DOLLARS
400
400
Actual production lags increas-
ingly behind forecasts. For five
200
200
MILLIONS OF DOLLARS
months now, we have consistent-
ly thought we'd do better than
we've done.
0
0
Morch-
April-
May-
June-
July-
April
May
June
July
August
1942
1000
1000
120
120
2. Here are what the gains were fore-
3. Here are the actual gains as 0 % of
cast to be.
100
the forecast gains.
100
MILLIONS OF DOLLARS
750
750
500
500
MILLIONS OF DOLLARS
ACT. GAINS+FORECAST GAINS
80
80
60
60
40
-
-
40
250
250
%- ACT GAINS-FORECAST GAINS
20
-
I
-
-
20
0
0
0
0
March-
April-
May-
June-
July-
March-
April-
Moy-
June-
July-
April
May
June
July
August
April
May
June
July
August
1942
1942
WAR PROGRESS
2
CONFIDENTIAL
WAR PROGRESS
output of the M3 tank dropped sharply;
% July
% August
it is being superseded by the more power-
Physical Units
Deliveries
Forecast
ful and more maneuverable M4. In machine
guns, certain types of planes, and other
Wheeled artillery
100
78
armament items, much the same thing is
Small arms and in-
true. Contracts on older models are
fantry weapons
122
102
running out before plants get into full
Antiaircraft guns
122
92
swing on newer models.
Artillery ammun
86
72
Trends in individual munitions items
Antiaircraft ammun
92
93
were uneven. Deliveries of most were up
Small arms ammun
99
94
to or better than the July performance,
Rifles
110
101
but few categories exceeded the August
forecasts, as this table of selected
Combat plane deliveries continued
items shows:
to run below the schedule. As a result,
production objectives for the full year
% July
% August
have been lowered to come within closer
Physical Units
Deliveries
Forecast
range of accomplishment.
Among combat planes, the heavy bomb-
Total planes
105%
88%
ers continue to be one of the star per-
Combat planes
104
86
formers; they topped the August fore-
Service planes
86
77
cast slightly and bettered July output
Trainer planes
131
110
by 10%. In the light one-engined bomb-
Combat vehicles
101
92
er class, on the other hand, production
Medium tanks
97
90
fell below July and was 25% behind the
Light tanks
107
95
forecast. Twin-engined light bomber
Scout cars and
output recovered from the July slump;
carriers
111
110
one of the plants which ran behind sched-
Major combat vessels
67
111
ule in July doubled output in August.
Minor combat vessels
98
67
Tank output was handicapped not only
Merchant ships
95
97
by. the model shiftover, but also by a
Liberty ships
99
93
shortage of treads, production of which
Tankers
67
200
was held down by lack of adequate sup-
S. P. artillery
209
90
plies of alloy steels. A better show-
ing by scout cars and carriers (up 11%
IN THIS ISSUE:
from July and 10% above the forecast)
PRODUCTION DRIVE LOSING MOMENTUM
lifted total combat vehicles.
1
Deliveries of guns were ahead of am-
WAR PRODUCTION-U.S. VS. AXIS EUROPE
4
munition, both in relation to July and
in approach to forecasts. Output of
CONSERVATION TOUGHER
5
self-propelled artillery doubled, but
WAR PROGRESS NOTES
because three new models failed to come
6
into production, only 90% of the fore-
SCORECARD ON MERCHANT SHIPPING
7
cast was achieved. In the case of wheel-
ed artillery, one heavy gun also failed
FINANCIAL DATA
9
to get started as planned. Aircraft
ECONOMIC DATA
17
cannon ammunition output, scheduled to
double, actually gained only nominally;
SEPTEMBER 11, 1942
CONFIDENTIAL 3
MUNITIONS OUTPUT- Month by Month
4000
800
Total Munitions
Aircraft
3000
600
2000
400
1000
200
0
o
J F M A M J J A
J F M A M J J A
300
800
Combat Vehicles
Other Army Ordnance
600
200
400
100
200
MILLIONS OF DOLLARS
0
o
J F M A M J J A
J F M A M J J A
300
600
MILLIONS OF DOLLARS
Naval Ordnance
Naval Ships
200
400
100
200
0
0
J F M A M J J A
J F M A M J J A
300
1500
Merchant Ships
Other Munitions
200
1000
100
500
0
o
J F M A M J J A
J F M A M J J A
August figures preliminary.
WAR PROGRESS
4 CONFIDENTIAL
WAR PROGRESS
small arms ammunition did fairly well.
In terms of value in place--the a-
Artillery ammunition was off because
mount of work done on completed and un-
of a slump in high-explosive shells.
completed ships-the entire naval ves-
Ground signal equipment was consid-
sel program scored a gain of 15% over
erably under forecast largely because
July but fell 24% behind the forecast.
radio detection devices (Radar) did
Actual deliveries of such ocean and
not come up to expectations. Radar
coastal convoy craft as aircraft escort
output, though up sharply from July,
vessels, yachts, and minesweepers were
was less than half the forecast.
considerably under the forecast as well
WAR PRODUCTION--U.S. VS. AXIS EUROPE
Though behind in first quarter, American factories have now caught up; and full-year output
of critical items is estimated above that of German-controlled plants.
200
200
Planes
Guns
160
160
120
120
80
80
a
a
22
a
40
40
o
o
OUTPUT OF AXIS EUROPE:100
1st Qtr.
Full Year
1st. Qtr
Full Year
280
280
Combat Vehicles
Trucks
240
240
OUTPUT OF AXIS EUROPE:100
200
200
160
160
120
120
80
80
a
a
a
40
40
o
0
1st Qtr.
Full Year
1st. Qtr.
Full Year
WAR PROGRESS
WE DO NOT KNOW ACCURATELY THE VOLUME OF CURRENT SHORTAGES, PLANT DETERIORATION, AND BOMBINGS ARE
MUNITIONS OUTPUT OF AXIS EUROPE. BUT ESTIMATES
MILITATING AGAINST EXPANSION IN TOTAL OUTPUT, IF NOT
HAVE BEEN PREPARED ON THE BASIS OF PREWAR RAW MATE-
ACTUALLY CAUSING DECREASES.
RIALS AND PLANT CAPACITY DATA, ALLOWANCES FOR NEW
THE IMPLICATIONS ARE SIGNIFICANT. THOUGH WE
CONSTRUCTION, AND REPORTS ON PRODUCTION OF INDIVID- HAVE PASSED GERMANY IN PRODUCTION, WE ARE STILL BE-
UAL ITEMS. THESE SUGGEST THAT AMERICAN PRODUCTION,
HIND IN ACCUMULATED STOCKS OF FIGHTING EQUIPMENT.
WHICH LAGGED BEHIND AXIS EUROPE IN THE FIRST QUAR-
THE TASK NOW IS TO PRODUCE STILL MORE AND TO GET
TER, WILL BE MUCH HIGHER FOR THE FULL-YEAR 1942.
THE MUNITIONS TO THE BATTLEFIELDS. (THE ITEMS SHOWN
THE CALCULATION IS FOUNDED ON THE ASSUMPTION
IN THE CHART REPRESENT ABOUT ONE-FIFTH OF TOTAL WAR
THAT GERMAN OUTPUT IN THE EARLY PART OF THE YEAR
PRODUCTION INTHIS COUNTRY. FOR THE REMAINING FOUR-
HAD REACHED A PEAK: THAT RAW MATERIALS AND MANPOWER FIFTHS, NO COMPARABLE AXIS DATA ARE AVAILABLE.)
SEPTEMBER II, 1942
CONFIDENTIAL
5
as below the July total.
Deliveries
als, and money. For example, designing
of landing craft doubled and were up
a suspension lug for bombs in pressed
to schedule for the first time.
steel and mass producing it on otherwise
One less Liberty ship was delivered
idle stamping presses made available
in August than in July, but this may
thousands of bombs that were waiting
well have been due to the five Sundays
for forged lugs. On one lot of 100,000
in August as against only four in July.
of these lugs, 17,000 pounds of steel
This is the first month in which Lib-
and 800 machine-tool hours were saved.
erty ship deliveries did not surpass
Simplification: Stamped clips in-
those of the preceding month.
stead of a lock nut assembly job on army
rifles (WP-Aug28'42,p8) saved carloads
Conservation Tougher
of steel and thousands of machine hours.
In a guinea-pig air-conditioning instal-
Long, hard grind of economizing on critical
lation at a Kansas City airplane engine
materials lies ahead, os large, obvious
plant, 155 tons of steel were eliminated
ways to curtail have been exhausted; four
and power requirements were reduced by
main types of soving possible.
5,000 horsepower.
Standardization: This is just be-
FROM 200,000 to 300,000 tons of copper,
ginning-with Victory bicycles, cuffless
100,000 tons of zinc, and large amounts
trousers, etc. Arecent standardization
of other critical materials will be
eliminates all but three types of Port-
saved this year by cutting down on ci-
land cement (permitting a 20% increase
vilian and military uses under some
in production to meet the demands of the
300 L and M conservation orders.
military construction program). But
perhaps more important are the oppor-
HARDER FROM NOW ON
tunities for standardization of speci-
But from now on, conservation econ-
fications of products used by the Army
omies will come harder. A good part of
and Navy. Interchangeability of parts
the critical-materials fat has been
for combat machines lessens the problems
squeezed out of the civilian economy,
of repair and replacements on the battle-
and additional savings must be sought
fronts, though complete standardization
out by bits and pieces. Today, conser-
of weapons is perhaps impossible in view
vation efforts--in production--have de-
of the strategic and tactical necessi-
veloped into these basic types:
ties of a rapidly changing war.
Substitution: In munitions appli-
cations alone, more than 10,000,000
OTHER SHORTAGES DEVELOP
pounds of primary aluminum a month (11%
Noncombat items, however, can be more
of current output) are being conserved
easily standardized. (The Army and Navy
by using secondary aluminum. Sheet
specify mess trays nearly identical
steel is being saved by substituting
but sufficiently different to require
wire in army bomb crates. Plastics are
two sets of stamping dies.)
replacing hard rubber in aircraft bat-
The most apparent shortages have been
tery cases.
in certain metals (aluminum, tungsten,
New Production Methods: Use of stamp-
nickel) and these have received the most
ings and castings, instead of forgings
conservation attention. But in saving
which have to be machined, has resulted
these tight materials, others, such as
in substantial savings in time, materi-
zinc and molybdenum, have run short.