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PRESIDENT'S SECRETARY'S FILE
Subject File
Office of Production Management:
Defense Progress: May 1941
Box 146
From Desk of
Wayne Coy, Liaison Officer
Office for Emergency Management
5/17
file pus. mal
To:
Major-General Watson
Corrections for the President's copy
D
THIS DOCUMENT IS THE BEST
AVAILABLE. EVERY TECHNICAL
EFFORT HAS BEEN TAKEN TO
INSURE LEGIBILITY.
PSF
Defense Contracts
CONFIDENTIAL ... ONE
SUMMARY OF DEFENSE PROGRESS
NUMBER 39
MAY 9, 1941
BRIEFS OF CONTENTS
Page
1,376 MILITARY AIRPLANES were delivered by
United States manufacturers during April,
an increase of 23 percent over March and
151 percent over last July. April deliver-
is, however, were 42 percent of the de-
liveries expected in the peak month, August
1942. The 7,726 planes delivered between
July 1, 1940, and April 30, 1941, represent
about 10 percent of the total number of
planes to be produced under all current
programs.
TWO
Errata
The date in the fifth line in the brief at the
top of page TWO should read, "August 1942," and
not "August 1932."
11
CONFIDENTIAL ... ONE
KINDED 28
2004 fb
526
SUMMARY OF DEFENSE PROGRESS
Issue Number 39 May 9, 1941
Errata
Pages 11 and 12 of Issue Number 39 of the Summary
of Defense Progress, for May 9, should be inter-
changed.
Page 53. Third line of footnote 1. Delete "and
for the carrying out of the lease-lend
program."
Raw File 5-41
PSF
fill mal
The President 1-1
SUMMARY OF
DEFENSE PROGRESS
NUMBER 40
MAY 16, 1941
OFFICE OF PRODUCTION MANAGEMENT
BUREAU OF RESEARCH AND STATISTICS - STACY MAY, CHIEF
This summary contains CONFIDENTIAL information affecting the defense
of the United States. Revelation of its contents in any manner to
unauthorized persons is prohibited by the Espionage Act.
CONFIDENTIAL
...
I
SUMMARY OF DEFENSE PROGRESS
NUMBER 40
MAY 16, 1941
BRIEFS OF CONTENTS
Page
CANADA WILL DEVOTE NEARLY 40 PERCENT of her national
income to war purposes in the current fiscal year as
compared with an expenditure of less than one per-
cent in peacetime. In less than two years she has
transformed herself from an unarmed peace economy to
one on a total war footing. Nearly one-quarter of
the war expenditures, including British, has 80 far
been for plants to produce war materials.
2
THE NUMBER OF APPROVED APPLICATIONS for Certificates
of Government Protection and of Non-Reimbursement,
as of April 15, 1941, has been small compared to the
total number of applications. Disapprovals have
been negligible in amount, and the great majority of
applications are still pending.
9
DURING MARCH THERE WAS AN INCREASE in the week-end
black-out in the airplane industry, as the proportion
of productive employees working in plants operating
only five days per week rose from less than 12 per-
cent to over 24 percent of the total. Engine and
propeller plants are utilizing their facilities much
more intensively than airframe plants.
12
FOUR DEFENSE INDUSTRIES (aluminum, firearms, explo-
sives, and aircraft) showed a decrease in hours from
February to March. The machine-tool and machine-
tool-accessories industries continued to operate in
excess of 50 hours per week per wage earner.
19
MILITARY SEPARATIONS FROM INDUSTRY in March were
generally higher in defense industries than in manu-
facturing industries as a whole. Voluntary quits
rose in the defense industries, the highest being
reported by the aircraft industry.
22
MAY 16, 1941
CONFIDENTIAL ... I
NUMBER 40
CONFIDENTIAL
Page
PRICES OF ALL KINDS OF COMMODITIES ADVANCED on a
broad front during the past week, in spite of offi-
cial statements urging the necessity of keeping
prices down. Four factors in this price advance
stand out: the sharp rise in shipping costs, the
effect of pending Congressional action on agricul-
tural prices, higher consumer incomes, and,
finally, uncontrolled speculation and extensive
forward buying to avoid the effects of possible
future shortages.
25
DEFENSE PROGRESS DATA
28
MAY 16, 1941
CONFIDENTIAL
CONFIDENTIAL 2
SUMMARY OF DEFENSE PROGRESS
NUMBER 40
MAY 16, 1941
THE MAGNITUDE OF THE CANADIAN WAR EFFORT
Canada will devote nearly 40 percent of her national
income to war purposes in the current fiscal year as com-
pared with an expenditure of less than one percent in
peacetime. In less than two years she has transformed
herself from an unarmed peace economy to one on a total
war footing. Nearly one-quarter of the war expenditures,
including British, have #0 far been for plants to produce
war materials.
N
early 40 percent of the Canadian national income is
to be devoted to defense purposes in the current fis-
cal year ending March 1942, according to the budget of
April 1941. This compares with & defense effort of .8 of
one percent of the national income in fiscal year 1938-39,
5.1 percent in fiscal year 1939-40, and 20.7 percent in
fiscal year 1940-41. Within the short space of less than
two years, Canada has transformed herself from a country
virtually without any military equipment to one on a total
war footing. These estimates of the Canadian defense ef-
fort include the British expenditures in Canada which are
largely paid for by the repatriation of Canadian securities
held in Great Britain. Table 1 shows the magnitude of the
Canadian defense effort in peace and wartime.
The Dominion Government's recent budget estimates
expenditures at approximately $2,600 million. This
sum may be roughly divided into $450 million for ci-
vilian expenditures, $1,300 million (a minimum estimate)
MAY 16,1941
CONFIDENTIAL
2
NUMBER 40
CONFIDENTIAL
3
of direct outlays by the Dominion Government for war pur-
poses, and a further net $850 million for financing war
expenditures by the British Government in Canada.-
TABLE 1 - DEFENSE EXPENDITURES IN CANADA
Defense
Dominion
British
National
Expenditures
Fiscal
Govern-
Govern-
Total
as Percent
Years
Income
ment
ment
of National
Income
(Million Dollars)
(Percent)
1935-36
17
0
17
3,464
0.5
1936-37
22
0
22
3,759
0.6
1937-38
33
0
33
4,162
0.8
1938-39
34
0
34
4,132
0.8
1939-40
133
91
224
4,376
5.1
1940-41
800
225
1,025
4,950
20.7
1941-42
1,300
850
2,150
5,350
40.2
al The Canadian fiscal year runs from April 1 to March 31
of the following year.
1 The estimated credit balance on current account with
Great Britain is $1,150 million, but the Canadian Govern-
ment apparently expects to run a debit balance of $300
million with the United States, thereby transferring that
much of the fiscal and economic burden to the United
States. Prior to the recent declaration of economic
cooperation between Canada and the United States, Canada's
debit balance with the United States was expected to
amount to $470 million but the increased exports to the
United States under the declaration are expected to re-
duce this to $300 million. In so far as the lease-lend
program will charge to Great Britain the cost of some
goods now bought by Canada but destined for Great Britain,
the gross amount of the credit balance with Great Britain
and the debit balance with the United States will be re-
duced but this will not affect the net credit balance
with Great Britain.
MAY 16, 1941
CONFIDENTIAL
...
3
NUMBER 40
CONFIDENTIAL
...
4
It remains to be seen whether these totals, which
seem colossal for 8. country with a population of only 11
million and a lower per capita income than the United
States, can in fact be reached. It is remarkable, however,
that they can even be reasonably contemplated, consider-
ing that only $30 million, less than one percent of the
national income, was being spent on defense before the
outbreak of war less than two years ago.
CHART 1- MONTHLY CASH DISBURSEMENTS
FOR THE CANADIAN WAR EFFORT*
SEPTEMBER, 1939 - DECEMBER, 1940
MILLION DOLLARS
MILLION DOLLARS
100
100
90
90
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
1.0
0
o
S
o
N
D
J
F
M
A
M
J
J
A
S
o
N
D
1939
1940
Exclusive of British Expenditures.
MAY 16, 1941
CONFIDENTIAL ... 4
NUMBER 40
CONFIDENTIAL
5
Since the beginning of the war, the growth of defense
expenditures has been rapid. During the first sixteen
months, Canadian outlays alone (excluding the British)
increased about 20 percent per month. During the fiscal
year ending March 1940, Canadian war expenditures were
roughly $130 million, and nearly $100 million more were
provided for the British. In the year ending March 1941,
war expenditures were about $800 million and substantially
more than $200 million were provided for the British.-
Chart I shows monthly Canadian war expenditures on a
cash basis, exclusive of British expenditures, for the
first sixteen months of the war. The low rate of war ex-
penditure from September 1939 to May 1940, reflects the
"static" phase of the war. Since May 1940, the rate of
Canadian war expenditures has increased very rapidly, re-
flecting the "dynamic" phase of the war.
While the volume of war expenditures has increased
rapidly, the national income has apparently grown by an
even larger amount. Prosperity was greater and purchasing
power more widespread in 1940 than in any year since 1930.
The recent budget forecast a further substantial increase
in the national income, but, if widespread price increases
are avoided, it is very unlikely that the national income
can increase by as much as war expenditures are scheduled
to expand. Some curtailment of civilian investment is
provided for in the budget, which announces a system of
licensing on most types of capital extension and all in-
stallation of machinery. Curtailment of aggregate ci-
vilian consumption will also probably be involved. To
2 Up to the end of 1940, funds were transferred to British
account mainly by the purchase of Canadian securities
previously held in Great Britain. (Canada entered this
war, as the United States entered the last, with a very
large debt held abroad). Since the beginning of 1941,
Canada has been financing the British authorities by
direct purchases of sterling.
MAY 16, 1941
CONFIDENTIAL
5
NUMBER 40
CONFIDENTIAL
6
that end, the burden of taxation has been very greatly
increased, chiefly in the form of corporate income taxes
and personal income taxes on the middle and lower income
groups. Savings campaigns have been put into operation,
and unemployment insurance (which involves a measure of
"forced savings" in a period of active employment) is
being introduced. It is certain that some groups will have
to diminish their consumption in the face' of increased
consumption by other groups-the previously unemployed and
under-employed.
Canadian war production can be divided into three
fairly distinct periods. In the first period, from the
declaration of war to May 1940, Canada was called upon
chiefly for increased supplies of raw materials and food-
stuffs. In May and June 1940 it became clear that Great
Britain was not going to be able to produce all the mech-
anized and technical war equipment that was necessary,
and Canada's help was urgently requested. However, if
Canada was going to meet the call and make an appreciable
contribution to the prosecution of a mechanized war, a
great deal of preparation and plant extension was required,
since the nation is not yet highly industrialized. The
simpler types of military vehicles were already being pro-
duced by the Canadian plants of Ford and General Motors,
and small ships could be constructed without much pre-
liminary preparation, but for the remainder (small arms,
guns, tanks, bombs, larger ships, etc.) and for the in-
creased output of explosives, airplanes, and other products
it was necessary to construct and equip new factories.
Thus, the second period of Canadian war activity was char-
acterized by capital expansion between May 1940 and May
1941. Now, in May 1941, the third period of actual pro-
duction may be considered to have begun. Most of the new
plants projected in 1940 will come into operation during
1941. For example, eight out of ninetten chemical and ex-
plosive plants are already in operation, and five more are
expected to be in operation by the middle of the year.
MAY 16, 1941
CONFIDENTIAL
...
6
NUMBER 40
CONFIDENTIAL
7
Roughly, one-quarter of the total war expenditures
in Canada so far has been devoted to expansion of plant
and equipment. By the beginning of April 1941 capital
commitments amounted to nearly $400 millions, of which
one-quarter was for chemical and explosive plants, one-
quarter for plants for guns and mountings, one-tenth for
plants for shells, and the remainder for plants for rail-
way equipment, aircraft, automotive equipment, machine
tools, tanks, bombs, and a large number of miscellaneous
products. Nearly one-third of this plant extension pro-
gram was purely on British account, although administered
by the Canadian Department of Munitions and Supply.
Rather more than one-third was purely on Canadian account.
The remainder was on joint account.
The Army, in the fiscal year 1940-41, received some-
what more than 50 percent of the Canadian war expenditures,
exclusive of those wholly for British account. The Air
Services, including outlays on the Commonwealth Air Train-
ing Plan, received somewhat less than half that spent on
Military Services, or 23 percent of the total; while Naval
Services, in their turn, received somewhat less than half
that spent on the Air Services, or almost 11 percent of
the total. The breakdowns are shown in Table 2.
In part this distribution of outlays may be taken to
reflect the official decision to build up the Canadian
army, in both men and equipment. In part, however, the
distribution of outlay has been dictated by the type of
war products which could be produced quickly. It may be
expected to change appreciably as new plants and other
facilities come into production. The direction of the
change 16 not so easy to predict, partly because it will
depend on decisions regarding the proportion of the output
of the new plants allocated to the various Canadian serv-
ices and to the British. However, it may be guessed that
the proportion devoted to Air Services may actually dimin-
2
The relationship between commitments and actual expend-
itures may be judged from the fact that by the end of
1940 commitments amounted to $300 million and nearly
$200 million had actually been spent.
MAY16, 1941
CONFIDENTIAL
7
NUMBER 40
CONFIDENTIAL ... 8
ish because of the inevitably limited capacities of the
Canadian aircraft industry. The proportion devoted to
Naval Services may well increase because of the intensive
shipbuilding program initiated during the past winter:
this will partly depend, however, on the extent to which
Canadian ships are assigned to the United States.
TABLE 2 - CANADIAN WAR EXPENDITURES 1940-41
(Fiscal year ending March 31, 1941)
(Million Dollars)
(Percent)
Department of National
Defense
Military Services
$ 404.7
51.1
Naval Services
85.2
10.7
Air Services
185.01
23.4
General Expenses
3.2
0.4
Plant Extension Program
(financed through Dept.
of Munitions and Supply)
84.92
10.7
Department of Munitions
and Supply (Administration)
2.3
0.3
War Expenditures by all
other Departments
26.6
3.4
TOTAL WAR XPENDITURES
$ 791.9
100.0
1 Consisting of $119 million as Canada's share (the major
part) of the British Commonwealth Air Training Plan and
$66 million for purely Canadian air establishments at
home and overseas.
2 Including all purely Canadian outlays, some on joint
account with the British, and none of the purely British.
Total capital outlays substantially exceeded $200 million.
Source: Appendix to the Budget, pp. 12-13. House of Com-
mons Debates, Canada, April 29, 1941.
MAY16, 1941
CONFIDENTIAL ... .8
NUMBER 40
CONFIDENTIAL
...
9
STATUS OF CERTIFICATES OF GOVERNMENT PROTECTION
AND NON-REIMBURSEMENT
AS OF APRIL 15, 1941
pprovals of Certificates of Government Protection and
A
of Non-Reimbursement have been much smaller than the
number of applications received, although the number
of disapprovals has been negligible. Most of the appli-
cations are still pending. These are the certificates
which, along with the Certificate of Necessity, have been
provided for in the Second Revenue Act of 1940. This Act
contains provisions which enable corporations acquiring or
constructing industrial facilities after June 10, 1940,
to amortize the cost of such facilities over a five-year
period for income and excess profits tax purposes, pro-
vided the facilities are certified as necessary to
national defense. The first step in qualifying for the
special amortization provisions is to obtain a Certifi-
cate of Necessity. Next, it is necessary to obtain
Certificates of Government Protection in those cases in
which the Government will reimburse the contractor for
the cost of the facilities. If no reimbursement by the
Government is involved, it is desirable to secure a
Certificate of Non-Reimbursement. All three certificates
must be approved either by the War or Navy Departments, in
conjunction with the ACCND. The Certificates of Govern-
ment Protection and of Non-Reimbursement are discussed in
greater detail below.
Certificates of Government Protection
If a corporation enters into an Emergency Plant
Facilities contract providing for reimbursement for
facilities, or a Government supply contract which
recognizes in the contract price a more than normal
amount for depreciation, then a Certificate of Govern-
ment Protection must be obtained, as well as a Certificate
of Necessity, before accelerated amortization may be
obtained. This Certificate of Government Protection
certifies that the contract in question adequately pro-
tects the United States with reference to the future use
and disposition of these facilities. It should be noted
that Certificates of Necessity are issued for facilities,
whereas Certificates of Government Protection certify
contracts entered into involving reimbursement for
MAY16, 1941
CONFIDENTIAL
9
NUMBER 40
CONFIDENTIAL ... 10
facilities either directly (EPF contracts) or indirectly
(certain Government supply contracts).
A study of the applications for Certificates of
Necessity which had been approved through April 15 was
presented in Issue Number 38 of the Statistical Summary
of Defense Progress. The cost of the facilities for
which the Government will reimburse the contractor either
directly or indirectly were estimated at $163 million.
For the corresponding period the value of facilities
against which Certificates of Government Protection had
been issued amounted to only $107 million. The status
of the applications of Certificates of Government Pro-
tection as of April 15 is shown below with the estimated
cost of facilities for which applications have been
approved.
STATUS OF APPLICATIONS FOR CERTIFICATES OF
GOVERNMENT PROTECTION
AS OF APRIL 15, 1941
Total'
War
Navy
Status
No.
Est.Cost
No.
Est.Cost
No.
Est.Cost
Thousand
Thousand
Thousand
Dollars
Dollars
Dollars
Total received
190
$ -
106
$ -
84
$ -
Approved
41
107,040
15
65,265
26
40,775
Disapproved
1
115
1
115
0
0
Action pending
134
a
77
a
57
&
Withdrawn
14
-
13
-
1
-
a
Not available.
Certificates of Non-Reimbursement
In order that a contractor may establish conclusively
that he is not being reimbursed for new or acquired facil-
ities covered by a Certificate of Necessity, and hence
does not need a Certificate of Government Protection in
order to utilize the accelerated rate of amortization,
he may apply for a Certificate of Non-Reimbursement.
This certificate, which relates to a particular supply
contract when approved by either the War or Navy Depart-
ments and the ACCND, certifies that no reimbursement for
MAY 16, 1941
CONFIDENTIAL ... 10
NUMBER 40
CONFIDENTIAL
II
new facilities (no more than normal depreciation) is
recognized in the Government contract for supplies.
Only 3 certificates of Non-Reimbursement had been
approved by the ACCND as of April 15. The value of con-
tracts involved has not yet been ascertained. The status
of these applications as of April 15, 1941, is as follows:
STATUS OF APPLICATIONS FOR CERTIFICATES OF
NON-REIMBURSEMENT
AS OF APRIL 15, 1941
Status
Total
War
Navy
Total received
1,251
778
473
Approved
3
0
3
Action pending
1,204
743
461
Withdrawn
44
35
9
a
"Includes nine applications denied because applications
for Certificates of Necessity were disapproved.
MAY 16, 1941
CONFIDENTIAL
...
II
NUMBER 40
CONFIDENTIAL
...
12.
THE WEEK-END BLACK-OUT IN THE AIRPLANE INDUSTRY*
T
here was an increase in the week-end black-out in the
airframe industry during March. As can be seen in
Table 1, the proportion of productive a employees in
the airframe industry employed in plants operating only
5 days per week rose from less than 12 percent to over 24
percent during the month. This increase in the week-end
black-out resulted from the switch during the month of
two important plants from a six-day to a five-day work-
week basis. Engine and propeller plants decreased the
week-end black-out slightly during the month, when the
proportion of wage-earners in 7-day plants rose from 29
percent to over 32 percent of the total.
TABLE 1 - DISTRIBUTION OF PRODUCTIVE EMPLOYEES IN THE
AIRPLANE INDUSTRY ACCORDING TO PLANT OPERATING WEEK
FEBRUARY AND MARCH 1941
Engines
Length of
Airframes
and propellers
Work Week
Feb.
March
Feb.
March
(Percent of Productive Employees)
5-day week
11.8
24.2
4.0
3.8
6-day week&
88.2
63.0
66.8
63.7
7-day week
b
12.8
29.2
32.5
Total
100.0
100.0
100.0
100.0
Including 51 day work week.
b
One plant on 7-day week included with 6-day
plants.
4 "Productive" employees are those working directly on
the products under consideration, as distinguished from
"nonproductive" employees charged with engineering,
development, administrative, and maintenance operations.
MAY16, 1941
CONFIDENTIAL
...
I2
NUMBER 40
CONFIDENTIAL ... 13
CHART I- DISTRIBUTION OF PRODUCTIVE EMPLOYEES
ACCORDING TO PLANT OPERATING week
MARCH 1941
Per Cent of
Per Cent of
Total Productive
Total Productive
Employees
Employees
100
100
90
90
Air-
Engines a
fromes
Propellers
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
o
0
5-Day Week
5 ye-Day Week
6-Doy Week
7-Doy Week
MAY 16, 1941
CONFIDENTIAL
...
13
NUMBER 40
CONFIDENTIAL ... 14
Engine and propeller plants are using their facili-
ties much more intensively than airframe plants. As
shown in Chart 1, during March, 96 percent of the pro-
ductive employees in engine and propeller plants were
employed in concerns working 6 or more days per week, as
compared with only 76 percent in the airframe industry.
The difference in the extent to which facilities were
utilized in the two branches of the industry in January
and February was further accentuated during March.
No marked changes occurred in shift operations be-
tween February and March in either branch of the air-
plane industry. Table 2 and Chart 2 indicate that while
95 percent of the productive wage-earners in engine and
propeller plants worked in shops operating on a three
shift basis, only 67 percent of the airframe plant em-
ployees were working in plants on this schedule.
Despite the decrease in the length of the work-week,
the average hours worked per man per week in the airframe
branch during March did not change markedly from Febru-
ary. Approximately 33 percent worked in plants averaging
40-44 hours per week and 44 percent worked 44-48 hours.
During March, only 15 percent of the productive em-
ployees worked in plants where the average work-week was
48 or more hours. This represents a continuation of the
TABLE 2 - DISTRIBUTION OF PRODUCTIVE EMPLOYEES IN THE
AIRPLANE INDUSTRY ACCORDING TO NUMBER
OF SHIFTS PLANT OPERATED
FEBRUARY AND MARCH 1941
Engines
Shifts in
Airframes
and propellers
Operation
Feb.
March
Feb.
March
(Percent of Productive Employees)
1-shift basis
1.4
1.1
o
-
2-shift basis
28.9
31.4
2.1
4.9
3-shift basis
69.7
67.5
97.9
95.1
Total
100.0
100.0
100.0
100.0
MAY16, 1941
CONFIDENTIAL
...
14
NUMBER 40
CONFIDENTIAL
15
CHART 2 - DISTRIBUTION OF PRODUCTIVE EMPLOYEES
ACCORDING TO NUMBER OF SHIFTS PLANT OPERATED
MARCH 1941
Per Cent of
Per Cent of
Total Productive
Total Productive
Employees
Employees
100
100
90
90
Air-
Engines a
frames
Propellers
BO
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
o
o
I Shift Bosis
2 Shift Bosis
3 Shift Bosis
MAY 16, 1941
CONFIDENTIAL
...
15
NUMBER 40
CONFIDENTIAL ... 16
decrease from 25 percent in January to 19 percent in
February b.
Even less change in hours worked took place in the
engine and propeller industry. Almost 97 percent of the
workers were in plants where the average was 44 hours or
more per week during March.
Classifying the plants by shifts according to length
of work-week reveals that in the airframe industry the
three-shift system was used most extensively by plants
operating 7 days a week. Approximately 17 percent of the
total productive workers engaged in 7-day plants worked
on the third shift, but only 8 percent worked on this
shift in 6-day plants. Excepting 5 1/2-day plants, ap-
proximately 60 percent of productive workers in the air-
frame industry were on the first shift regardless of the
TABLE 3 - DISTRIBUTION OF PRODUCTIVE EMPLOYEES IN THE
AIRPLANE INDUSTRY ACCORDING TO AVERAGE HOURS WORKED
PER MAN PER WEEK
FEBRUARY AND MARCH 1941
Average Hours
Engines
Per Man
Airframes
and propellers
Per Week
Feb.
March
Feb.
March
(Percent of Productive Employees)
Under 40
7.7
7.0
&
&
40 - 43.9
31.4
33.2
3.4
3.4
44 - 47.9
41.7
44.5
70.8
70.0
48 and over
19.2
15.3
25.8
26.6
Total
100.0
100.0
100.0
100.0
&
One plant reported an average less than 40 hours
per man per week.
b See Statistical Summary of Defense Progress Number 34,
page 29.
MAY16, 1941
CONFIDENTIAL ... 16
NUMBER 40
CONFIDENTIAL
17
length of work-week. c The number of days the plant op-
erated ₫ in the engine and propeller plants, made little
difference: The distribution of employees among shifts
was almost identical in all cases, namely 47 percent on
the first shift, 31 percent on the second shift, and
approximately 22 percent on the third shift.
cl Slightly more than 77 percent of the workers were as-
signed to the first shift in 5 1/2-day plants.
d
For the few plants working less than 6 days per week,
the concentration was on the first shift, with the
third shift of practically no consequence.
*Source: United States Bureau of Labor Statistics.
MAY 16, 1941
CONFIDENTIAL
17
NUMBER 40
CONFIDENTIAL
...
18
CHART 3- DISTRIBUTION OF PRODUCTIVE EMPLOYEES
ACCORDING TO AVERAGE HOURS WORKED PER MAN PER WEEK
MARCH 1941
Per Cent of
Per Cent of
Total Productive
Total Productive
Employees
Employees
100
100
90
90
Air-
Engines &
frames
Propellers
80
80
70
70
60
60
50
50
40
40
30
30
20
20
IO
10
o
o
Under 44 Hours
44-47.9 Hours
48 Hours and Over
MAY 16, 1941
CONFIDENTIAL
...
17
NUMBER 40
CONFIDENTIAL
...
19
HOURS AND EARNINGS IN DEFENSE MANUFACTURING INDUSTRIES
MARCH 1941*
M
achine-tool and machine-tool-accessories industries
continued to operate in excess of 50 hours per week
per wage earner in March, reporting averages of
51.9 hours and 50.9 hours, respectively. The firearms
industry reported a decrease in average hours from over
50 in February to 48.0 in March. Three of the eleven
defense industries listed in Table 1 (aluminum, explo-
sives, and aircraft) also showed lower hours in March
than in February. Part of the decrease in the aluminum
plants was reported to be due to a lack of materials.
The aluminum-manufactures industry was also the only
industry to show a reduction in hours below those which
prevailed a year ago.
Wage-rate increases affecting nearly two percent of
the wage earners covered took place between February 15
and March 15. These increases averaged 6.7 percent for
the 109,000 workers concerned. Some of the industries
and the number of employees affected by the wage in-
creases were:
Electrical machinery
7,477 Employees
Cotton goods
7,014
If
Glass
6,690
"
Canning
6,483
n
Automobiles
4,560
If
Chemicals
4,496
"
Steel
4,360
"
Foundries & machine shops
4,328
If
Brass, bronze, & copper products
3,225
If
Hourly and weekly earnings for workers in the com-
bined 90 manufacturing industries surveyed reached new
high levels in March. Average hourly earnings amounted
to 69.7 cents and weekly earnings reached $29.11. The
durable-goods industries, which have been particularly
affected by the defense program, showed an increase of
17.3 percent in weekly earnings over the year as com-
pared with a rise of 8.5 percent in the nondurable-
goods industries. All of the defense industries
listed in Table 1 showed increases in both hourly and
MAY 16, 1941
CONFIDENTIAL
19
NUMBER 40
CONFIDENTIAL ... 20
TABLE 1 - HOURS AND EARNINGS IN SELECTED DEFENSE INDUSTRIES
MARCH 1941
AVERAGE WEEKLY
AVERAGE HOURS
AVERAGE HOURLY
EARNINGS
WORKED PER WEEK
EARNINGS
PERCENTAGE
PERCENTAGE
PERCENTAGE
MAR.
CHANGE FROM
MAR.
CHANGE FROM
MAR.
CHANGE FROM
1941
FEB.
MAR.
1941
FEB.
MAR.
1941
FEB.
MAR.
1941
1940
1941
1940
(CENT8)1941
1940
AIRCRAFT
$35.02
- .4
+16.2
45.2
-.9
. 7.1
78.3
-1
+6.6
SHIPBUILDING
39.58
+1.7
+19.5
44.2
+2.9
+13.9
89.3
-1.1
+4.9
EXPLOSIVES
35.14
-2.3
+ 7.6
40.5
-1.3
+ 3.7
86.8
-1.0
+3.7
MACHINE TOOLS
41.73
- .2
+12.9
51.9
+.1
+ 8.3
$0.1
-.2
+4.2
BLAST FURNACES,
STEEL WORKS &
ROLLING MILLS
34.94
+1.2
+21.0
40.1
+.1
$15.6
87.3
+.7
+4.5
FOUNDRY AND MA-
CHINE SHOP
PRODUCTS
34.39
+2.4
*18.0
44.7
+1.8
*11.2
76.9
+ .7
*6.0
ALUMINUM MANU-
FACTURES
28.71
-9.0
+ 1.0
38.0
-9.2
- 4.4
75.6
..2
*5.5
BRASS, BRONZE,
AND COPPER
PRODUCTS
36.45
+2.9
+22.9
44.4
*1.4
*12.2
$2.2
+1.5
+9.7
CHEMICALS
33.93
+1.3
+ 7.7
41.0
..
+ 2.7
82.9
+.5
+5.1
ELECTRICAL
MACHINERY
34.46
+2.0
*17.5
44.3
+1.4
*11.5
78.0
..6
*5.2
ENGINES, TUR-
BINES, ETC.
40.14
+4.3
*16.7
46.0
+1.9
*7.2
87.4
+2.4
+8.6
MAY 16, 1941
CONFIDENTIAL ... 20
NUMBER 40
CONFIDENTIAL ... 21
weekly earnings over March 1940. The highest hourly
earnings were reported for shipbuilding (89.3 cents),
engines, turbines, and water wheels (87.4 cents), blast
furnaces (87.3 cents), and explosives (86.8 cents).
Weekly earnings were highest in machine tools ($41.73)
and engines, turbines, etc. ($40.14).
*Source: United States Bureau of Labor Statistics.
MAY16, 1941
CONFIDENTIAL ... 21
NUMBER 40
CONFIDENTIAL
...
22
LABOR TURNOVER IN DEFENSE INDUSTRIES*
M
ilitary separations from industry continued to in-
crease during March and were generally higher in the
defense industries than in manufacturing as a whole,
as Table 1 indicates. In all manufacturing, 45 out of
every 10,000 wage earners left industry to enter the
United States armed forces during March. About one out
of every 13 persons added to industrial pay rolls during
the month took places vacated for military service.
Aluminum and brass, bronze, and copper products showed
the greatest proportionate losses of employees for mili-
tary services, while shipbuilding showed the least.
Although the accession rate was relatively high in the
aircraft industry, one in every 16 new employees replaced
& worker withdrawn to enter the armed forces. Voluntary
enlistments in the Army and Navy and the induction of
the National Guard into the regular service accounted for
the relatively high level of the military separations
TABLE 1 - MILITARY SEPARATIONS IN ALL MANUFACTURING
AND IN SELECTED DEFENSE INDUSTRIES
1940
1941
INDUSTRY
SEPT.
OCT.
Nov.
DEC.
JAN.
FEB.
MAR.
(RATES PER 100 EMPLOYEES)
ALL MANUFACTURING ESTAB-
LIBHMENTS REPORTING
MILITARY SEPARATIONS
0.22
0.19
0.13
0.08
0.33
0.39
0.45
AIRCRAFT
I
0.41
0.32
0.18
0.43
0.50
0.54
SHIPBUILDING
0.21
0.09
0.07
0.06
0.24
0.51
0.39
MACHINE TOOLS
0.15
0.11
0.05
0.07
0.24
0.36
0.48
BRASS, BRONZE, AND
COPPER PRODUCTS
0.15
0.14
0.16
0.06
0.31
0.82
0.68
ALUMINUM
0.24
0.47
0.14
0.08
0.27
0.57
0.76
FOUNDRIES AND MA-
CHINE SHOPS
0.19
0.24
0.19
0.11
0.36
0.46
0.58
ELECTRICAL MACHINERY
0.10
0.19
0.19
0.09
0.30
0.40
0.57
IRON AND STEEL
0.06
0.09
0.08
0.05
0.24
0.30
0.44
A BASED BOLELY ON ESTABLISHMENTS WHICH REPORTED LOSSES OF WAGE EARNERS TO THE
ARMED FORCES. REPORTS COVER BOTH VOLUNTARY ENLISTMENTS IN THE ARMY, NAVY,
AND NATIONAL GUARD, AND "BELECTIVE SERVICE" INDUCTIONS.
1 NOT AVAILABLE.
MAY 16, 1941
CONFIDENTIAL
...
22
NUMBER 40
CONFIDENTIAL
23
TABLE 2 - MONTHLY SEPARATION AND ACCESSION RATES IN ALL
MANUFACTURING AND IN SELECTED DEFENSE INDUSTRIES
SEPARATION RATES
ACCESSION RATES
Misc.
TOTAL
TOTAL
INDUSTRY
DATE
DIS-
LAY-
SEPAR-
SEP/R-
RE-
NEW
ACCEB-
QUIT
CHARGE
OFF
ATION
ATION
HIRE
HIRE
SION
(RATES PER 100 EMPLOYEES)
ALL MANUFACTURING
MAR. 1941
1.70
0.21
1.06
0.43
3.40
1.24
4.38
5.62
FEB. 1941
1.33
0.19
1.20
0.43
3.15
1.08
3.84
4.92
MAR. 1940
0.67
0.15
2.53
0.11
3.46
1.38
1.56
2.94
DEFENSE INDUSTRIES:
AIRCRAFT
MAR. 1941
2.28
0.42
0.79
0.50
3.99
0.22
8.43
8.65
FEB. 1941
2.21
0.50
0.24
0.46
3.41
0.42
7.30
7.72
MAR. 1940
1.55
0.42
2.20
0.02
4.19
0.51
8.38
8.89
SHIPBUILDING
MAR. 1941
2.00
0.37
3.51
0.60
6.48
2.95
10.93
13.88
FEB. 1941
1.85
0.36
3.21
0.70
6.12
2.70
8.34
11.04
MAR. 1940
0.95
0.33
3.65
0.08
5.01
1.12
5.92
7.04
MACHINE TOOLS
MAR. 1941
1.85
0.42
0.07
0.54
2.88
0.20
5.75
5.95
FEB. 1941
1.58
0.37
0.13
0.34
2.42
0.43
4.37
4.80
MAR. 1940
1.21
0.41
0.28
0.09
1.99
0.10
3.87
3.97
BRASS, BRONZE AND
COPPER PRODUCTS
MAR. 1941
2.06
0.19
1.16
0.62
4.03
0.21
5.76
5.97
FEB. 1941
1.42
0.25
0.81
0.49
2.97
0.77
5.13
5.90
MAR. 1940
0.43
0.24
4.67
0.02
5.36
1.27
0.48
1.75
ALUMINUM
MAR. 1941
1.54
0.22
2.32
1.24
5.32
0.60
2.80
3.40
FEB. 1941
1.28
0.23
1.13
1.76
4.40
1.40
4.06
5.46
MAR. 1940
0.53
0.16
1.25
0.35
2.29
1.76
2.20
3.96
FOUNDRIES AND
MACHINE SHOPS
MAR. 1941
1.82
0.38
0.67
0.55
3.42
0.32
6.52
6.84
FEB. 1941
1.50
0.37
,1.04
0.46
3.37
0.55
6.07
6.62
MAR. 1940
0.57
0.17
2.43
0.11
3.28
0.58
1.93
2.51
ELECTRICAL MA-
CHINERY
MAR. 1941
1.19
0.17
0.23
0.75
2.34
1.02
5.57
6.59
FEB. 1941
1.05
0.15
0.37
0.63
2.20
0.43
5.88
6.31
MAR. 1940
0.40
0.11
1.36
0.33
2.20
0.82
1.63
2.45
IRON AND STEEL
MAR, 1941
0.93
0.13
0.24
0.55
1.85
0.33
2.80
3.13
FEB. 1941
0.76
0.09
0.27
0.43
1.55
0.38
2.37
2.75
MAR. 1940
0.35
0.08
3.81
0.12
4.36
0.51
0.37
0.88
A BEGINNING WITH SEPTEMBER 1940, WORKERS LEAVING TO ENTER ARMY OR NAVY ARE IN-
CLUDED IN "MISCELLANEOUS SEPARATIONS."
1 RETURNS FROM APPROXIMATELY 7,300 MANUFACTURING ESTABLISHMENTS EMPLOYING MORE
THAN THREE MILLION WORKERS.
MAY16, 1941
CONFIDENTIAL
...
23
NUMBER 40
CONFIDENTIAL
...
24
rate in September and October 1940. Since December in-
ductions under the selective service program have been
a major factor in the steadily increasing rate each month.
Establishments reporting losses of workers to the armed
forces lost 0.33, 0.39 and 0.45 workers for every hundred
employees during January, February, and March, respec-
tively.
Accessions of workers in manufacturing plants in
March reached the highest rate (5.62 for every 100 em-
ployees) for any March since 1934 and the highest for
any month since August 1940. Eight leading defense
industries, however, failed to equal their January
accession rates. Table 2 shows that accessions continued
to exceed separations in all of these industries, except
aluminum, where accessions receded and layoffs and quits
rose sharply. Several aluminumware plants reported
reduced schedules because of lack of materials.
Layoffs showed little change between February and
March, except for the sharp rise in aluminum manufac-
turing. The continued high layoff and accession rates in
the shipbuilding industry are probably due to the
migration of workers to other yards upon the completion
of certain stages in ship construction. In all eight
industries, the rate of voluntary quits rose, the highest
rate of quits, 288 for every 10,000 employees, being
reported by the aircraft industry. Quits advanced sharply
in brass, bronze, and copper products, and in the foundry
and machine-shop industry.
In five of the selected defense industries hirings
exceeded losses by a greater amount than in manufacturing
as a whole. Hirings exceeded losses by the greatest
amount in the shipbuilding industry, but this industry is
still not increasing its working force at the pace
necessary to complete the program within the desired time.
The machine-tool industry, which must have an average net
accession each month of 3 workers for every 100 employees
to meet its schedules is just equaling its needs.
*Source: United States Bureau of Labor Statistics.
MAY16, 1941
CONFIDENTIAL
...
24
NUMBER 40
CONFIDENTIAL
25
SUMMARY OF RECENT PRICE DEVELOPMENTS
WEEK ENDED MAY 10, 1941*
H
ighlights. Prices of all kinds of commodities moved
toward higher levels on a broad front during the past
week. The advance was led by a sharp upswing in
basic commodity markets in which speculation seems to be
playing a considerable part. Prices of petroleum products
extended their gains, many chemicals and drugs moved
sharply higher, premiums for scrap metals were wider,
while cotton and other textile markets moved upward sharp-
ly despite recent official statements of a general govern-
mental policy of avoiding price advances. Quotations for
foodstuffs were up considerably on reports of possible
legislation, increasing the loan values on various crops.
Basic Commodity Prices. Basic commodity markets
discarded all their recent signs of hesitancy and moved
up sharply and quite generally during the week ended May
10. The Bureau of Labor Statistics' daily index of the
spot prices of 28 basic commodities jumped about 2-1/2
percent to 142.7 percent of its August 1939 level. Fully
20 of the 28 commodities participated in this renewed
upswing and of these the following seven, lard, cotton-
seed oil, print cloth, tallow, coffee, resin, and cotton,
recorded gains of 5 percent or more during the week.
With the exception of resin, all of the commodities
mentioned reached levels higher than at any time since
the declaration of war. Prices for several of the metals
for which price ceilings have been established continued
nominally unchanged.
Of the many causes contributing to this broad ad-
vance, four appear to be outstanding. Imported commodi-
ties are reflecting the increasingly critical character
of the shipping situation and the rapid advance in
shipping costs. Domestic agricultural products are being
strongly influenced by pending Congressional action de-
signed to increase crop loans. The impact of higher
consumer incomes is being increasingly felt. Finally,
uncontrolled speculation, coupled with the desire of
industrial and commercial buyers to protect themselves
against possible shortages or price advances in the future,
appears to be an increasingly serious aggravating factor.
MAY16, 1941
CONFIDENTIAL
25
NUMBER 40
CONFIDENTIAL
...
26
Petroleum and Its Products. Release of tanker
tonnage to Great Britain led to predictions this week
that fuel oil prices would soon rise to their "highest
level in recent years." The loss of tonnage in the
important Gulf Coast-North Atlantic route combined
currently with a sharply increased demand for the entire
range of major refined petroleum products. Expected to.
be especially affected are prices of the light fuel oils
used for home heating purposes, demand for which is
rapidly rising. Many suppliers are currently said to be
reluctant to fix top prices on 1941-42 contracts.
Chemicals. Prices of chemicals and drugs advanced
this week with undiminished strength. Among botanical
drugs, essential oils and aromatics, where average prices
are now from 200-300 percent greater than pre-war levels,
price rises were as usual most spectacular. Included in
these groups are many imported commodities, new supplies
of which in some cases are unobtainable from ordinary
sources in Europe and the Far East. Increasing shortage
of heavy industrial chemicals and coal tar products drove
prices in the resale market to new highs, according to
trade reports, though contract quotations for the most
part remained unchanged. Speculation is said to play
a prominent part in the advances, contract buyers making
quick turnovers in the resale market.
Consumers' Goods Markets. Prices of practically all
raw materials entering into consumer goods advanced during
the week ended May 10. Basic foodstuff prices in whole-
sale markets rose 3.6 percent. Advances in the prices
of domestic grains were attributed to proposed Federal
legislation to increase their loan values. In the raw
fiber markets the advance of 5 percent for raw cotton
was attributed principally to the expected higher loan
basis. Raw silk prices increased nearly 4 percent, due
in part to the rumor that silk might be subjected to a
high import duty. Spot prices for wool tops rose
approximately 2 percent, and quotations for May contracts
reached the highest level reported since the inauguration
of trading on the futures exchanged in 1934.
Prices for practically all constructions of cotton
gray goods were advanced during the week, while demand
expanded sharply. Failure of prices to halt, even
MAY16, 1941
CONFIDENTIAL ... 26
NUMBER 40
CONFIDENTIAL ... 27
temporarily, after the Government's attitude toward price
increases was expressed at the May 2 conference in Wash-
ington,is reported to have prompted even the more con-
servative buyers to attempt to cover further ahead at
present levels.
*Source: United States Bureau of Labor Statistics.
MAY 16, 1941
CONFIDENTIAL ... 27
NUMBER 40
CONFIDENTIAL
28
DEFENSE PROGRESS SERIES
Wook
Week
Agency and Object
January
February
March
April
Ending
Ending
May 3
May 10
UNITED STATES DEFENSE PROGRAM é
(Million dollars, data cumulated since June 1940)
Total Enacted Program
27,175
31,212
U. S. ARMY AND NAVY DEFENSE PROGRAM*
(Million dollars, data cumulated since June 1940)
TOTAL ARMY AND NAVY
Enacted Program
16,385
16,555
19,284
22,758
Contract Awards 2
11,802
12,269
13,022
13,653
Cash Expenditures
1,818
2,401
3,038
SHIPS ND PARTS(NAVY)
Enacted Program
5,282
5,282
6,288
6,348
Contract Awards
4,823
4,877
4,500
4,502
Cash Expenditures
394
472
558
GULS, AMMUNITION, VISC. ORD.2
Enacted Program
3,955
3,955
4,649
5,342
Contract Awards
1,892
1,993
2,739
3,011
Cash Expenditures
261
324
394
AIRPLANES, ENGINES, ACCESSORIES
Enacted Program
3,060
3,060
3,173
4,380
Contract Awards
2,270
2,299
2,418
2,462
Coah Expenditures
219
274
334
POSTS, DEPOTS, STATIONS
Enacted Program
1,321
1,321
2,222
2,584
Contract Avards
802
887
931
1,021
Cash Expenditures
493
683
878
OTHER EQUIPMENT à SUPPLIES á
Enacted Program
1,405
1,575
1,575
1,713
Contract Awards
1,040
1,123
1,243
1,365
Cash Expenditures
351
467
593
INDUSTRIAL FACILITIES 2
Enacted Program
1,362
1,362
1,377
2,391
Contract Awards of
975
1,090
1,191
1,292
Cash Expenditures
100
181
281
ACCND STOCKPILE PROGRAM ?
(Million dollars, cumulated since May 1940)
Recommended Stockpile
485
485
485
485
485
485
Purchases (including those in
excess of recommencation) la
288
369
387
400
404
406
Purchases, excluding excess 1
250
303
312
325
M
324
327
Deliveries
110
124
133
149
151
153
FAMILY DEFENSE HOUSING PROGRAM 18
(In terms of housing units, cumulated since Aug. 1,1940)
Fund Allocations 19
54,083
72,251
72,803
77,435
87,260
87,260
Construction Contracts Awarded
34,791
38,740
45,157
54,139
58,542
61,335
Construction Completed
1,314
2,515
5,424
9,024
9,604
9,929
Data are as of March 17 and April 5, 1941.
Data are as of the end of the month. The most recent figures are as of May 1, 1941
M Revised data.
For numbered footnotes see Issue 39, pages 53 and 54.
MAY 16, 1941
CONFIDENTIAL
28
44 4 , &
NUMBER 40
CONFIDENTIAL ... 29
DEFENSE PROGRESS SERIES (Continued)
Week
Yeek
Agency and Object
January
February
March
April
Ending
Ending
May 3
May 10
UNITED STATES ARMED FORCES
(Thousants, officers and enlisted men)
Aray15
693
867
Havy and Marine Corpa16
I 271
Total
I 964
Injury 1,145
2 1,004
2 1,211
278
I 293
2 296
2 301
I 1,297
2 1,507
PRIORITY CERTIFICATES & EXTENSIONS
(Cumulated since February 17, 1941)
ISSUED
By Army, Navy Munitions Board
and Countersigning Officers
72,662
126,482
138,116
By OPM Priorities Division
3,047
4,726
5,021
Total to Date
75,709
131,208
143,137
CERTIFICATES OF NECESSITY ISSUED
(Million dollars, cumulated since June 10, 1940)21
Total Cost of Facilities on
Active Applications
1,025
1,034
1,113
Cost of Facilities Approved
346
815
896
Cost of Private Facilities
261
659
733
Cost of U.S. Financed Facilities
85
156
163
Cost of Facilities Pending Approval
678
217
213
3. L. S. WHOLESALE PRICE INDEXES
Strategic Materialsho
(8/39=100)
E 126.1
I 127.3
I 131.2
135.5
136.8
137.2
Critical Materials
(8/39=100)
111.5
I 111.4
I 112.0
112.4
112.6
112.5
Basic Commodities
(8/39=100)
In 120.5
I 121.3
I 129.7
136.9
139.1
142.7
Machine Tools
(8/39=100)
114.6
115.1
115.1
116.4
All Commoditieal?
(1926=100)
80.8
80.6
81.5
2 82.8
83.2
84.0
EMPLOYMENT2
(Thousands of employees as of pay rolls nearest the 15th of the month)
Private, Leading Defense
Industrieal]
465
491
2 511
Public Defense Employment14
645
731
681
Total Direct Defense Employment
1,110
1,222
1,192
Total Civil Nonagricultural
I 36,621
36,928
2 37,218
LABOR DISPUTES2
(All United States Industries, monthly figures)
Number of Strikeall
325
365
P 475
Total Number of Workers
Involved (Thousands)
108
2 105
2 165
Total Man Days Idle (Thousands)
625
1,000
1,400
Number Strikes Beginning in Month
220
240
330
NATIONAL INCOME20
(Annual rate in billion dollars)
Total Income Payments (adjusted
for seasonal variations)
79.4
79.8
80.3
2 Preliminary data.
r Revised data.
For footnotes ano Issue 39. pages 53 to 54.
MAY 16, 1941
CONFIDENTIAL ... 29
PSF
sile
Bx 160
President
1-1
SUMMARY OF
DEFENSE PROGRESS
NUMBER 41
MAY 23,1941
OFFICE OF PRODUCTION MANAGEMENT
BUREAU OF RESEARCH AND STATISTICS - STACY MAY, CHIEF
This summary contains CONFIDENTIAL information affecting the defense
of the United States. Revelation of its contents in any manner to
unauthorized persons is prohibited by the Espionage Act.
CONFIDENTIAL ... I
SUMMARY OF DEFENSE PROGRESS
NUMBER 41
MAY 23, 1941
BRIEFS OF CONTENTS
Page
ESTIMATED 1941 SUPPLIES of cork, wood pulp, silk,
and cattle hides fall short of the estimated 1941
military and civilian requirements. These com-
modities are largely or wholly imported. If ship-
ping facilities are reduced, supplies will be
much lower than now estimated and the deficiencies
will be greater.
2
MORE THAN 60 PERCENT of the ordnance, naval ships,
and airplanes and 87 percent of the industrial fa-
cilities scheduled for 1940 and 1941 remain to be
produced in the last eight months of 1941. Unless
more rapid progress is made in the construction of
facilities, the production of materiel in 1942
will fall radically short of requirements.
9
THE GEOGRAPHIC CONCENTRATION of prime contracts
decreased slightly during the month of April.
Over 90 percent of the contracts for airplanes are
still concentrated in only eight States.
13
$1.8 BILLION HAS BEEN ADDED to the Naval program
by the passage of Title I of the 1942 Navy Budget.
Net funds and authorizations now available to the
United States Navy amount to $13.6 billion. The
total defense program, including British purchases,
now amounts to $41.6 billion.
17
DEFENSE PROGRESS DATA this week presents addi-
tional and revised series indicating the magnitude
of the total defense program in the United States,
progress being made in carrying out this program,
and its impact on the economic life of the nation.
18
MAY 23, 1941
CONFIDENTIAL ... I
CONFIDENTIAL ... 2
SUMMARY OF DEFENSE PROGRESS
NUMBER 41
MAY 23, 1941
THE PRESENT STATUS OF SELECTED RAW MATERIALS
ESTIMATED 1941 SUPPLIES of cork, wood pulp, silk, and cattle
hides fall short of the estimated 1941 military and civilian
requirements. These commodities are largely or wholly im-
ported. If shipping facilities are reduced, supplies will be
much lower than now estimated and the deficiencies will be
greater.
C
urrent estimates of the requirements and supplies for 1941
of five selected important raw materials which are largely
or wholly imported, accent the crucial role which the sup-
ply of shipping facilities is playing and will increasingly
play in the current year. In addition, they emphasize the
problems which will be imposed upon the American economy if
the shipping lanes are in any way shut off to ships supplying
the United States. The five commodities are cork, rubber,
wood pulp, silk, and hides and skins. The estimates are shown
in Table 1. The estimated supplies for 1941 of four of the
five fall short of the estimated requirements, The estimated
supply of the fifth, (crude rubber) is considerably in excess
of the estimated requirements for 1941. For all five, the es-
timated supplies are based on the assumption that imports in
1941 will continue to 'arrive in substantial amounts.
The requirements represent the sum of: (1) the estimates
of Army, Navy, and British requirements; and (2) the estimates
of civilian requirements. The military requirements correspond
to the program discussed in the Statistical Summary of Defense
Progress, Issue Number 34, April 4, 1941. The civilian require-
ments are based on an estimated national income of $87 billion
MAY 23, 1941
CONFIDENTIAL ... 2
NUMBER 41
CONFIDENTIAL ... 3
TABLE 1 - ESTIMATED REQUIREMENTS AND SUPPLIES OF SELECTED RAW MATERIALS
FOR 1941
ESTIMATED
ESTIMATED
ESTIMATED
PRINCIPAL
COMMODITY
REQUIREMENTS
SUPPLY
SHORTAGE
SOURCE OF
1941
1941
1941
IMPORTS
(THOUSANDS)
CORK (s. T.)
172
121
51
PORTUGAL
WOOD PULP (s. T.)
8,481
8,331
150
CANADA
CRUDE RUBBER (L. T.)
780
1,425
A
MALAYA,
EAST INDIES
RAW SILK (LBS.)
48,500
44,000
4,500
JAPAN, CHINA
HIDES (NUMBER)
25,000
23,100
1,900
SOUTH AMERICA
A ESTIMATED OVERAGE OF 645,000 LONG TONS.
in 1941 and on the further assumption that no deliberate re-
strictions will be imposed upon civilian consumption.
Cork
The relationships between cork requirements and supply are
shown in Chart 1.
CHART I - CORK
REQUIREMENTS AND SUPPLY
(THOUSANDS OF SHORT TONS)
o
50
100
150
200
STOCKS JAN I
IMPORTS
1940 SUPPLY
207,600
EST 1941 SUPPLY
121,268
STOCKS JAN I
First Quorter Apr. 1-Oct.1
IMPORTS
1940 CONSUMPTION
132,000
EST REQUIREMENTS 1941
172,000
EST. REQUIREMENTS 1942
188,000
MAY 23, 1941
CONFIDENTIAL ... 3
NUMBER 41
CONFIDENTIAL
4
A 1940 supply of 208 thousand short tons, consisting of 159
thousand tons of imports and 49 thousand tons of stocks on hand
January 1, 1940, contrasts with an estimated 1940 consumption
of 132 thousand short tons. Actual stocks on hand at the be-
ginning of 1941 were 59 thousand tons. Imports in the first
quarter of the year were 33 thousand tons. It is estimated that
between 28 and 30 thousand tons more will come in by November 1,
giving an apparent supply from stocks and imports of 120 to 122
thousand tons. Some cork may come in November and December but
it is practically impossible now to estimate because of shipping
and new crop uncertainties.
Against these totals are to be set the estimated 1941 mili-
tary, indirect defense and civilian requirements of 172 thousand
short tons. If a supply of only 122 thousand tons materializes,
there will be a shortage of 50,000 tons. To conserve the domes-
tic supply the Office of Production Management on April 16, 1941
requested cork insulation manufacturers to take no further or-
ders for cork roofing insulation, except for refrigerated spaces.
All insulation accounts for 60 percent of normal cork consumption.
Wood Pulp
A large part of American imports of the chemical grades of
wood pulp has already been cut off by war. During the period
1936-1939, 16 percent of our total supply or 70 percent of our
imports, came from Scandinavian countries. Since the early part
of 1940, except for a few small scattered shipments, these sources
are no longer available to us. At present the only wood pulp im-
ports are coming from Canada.
The net shortage of wood pulp for 1941 is estimated at 150
thousand short tons. As shown by Chart 2, this net shortage is
made up of the following: a shortage of 400 thousand short tons
in the unbleached sulphate grade, plus & shortage of 30 thousand
short tons in bleached sulphite and unbleached sulphite minus
overages of 177 thousand and 103 thousand tons of bleached sul-
phate, and soda and miscellaneous grades, respectively.
e.
MAY 23, 1941
CONFIDENTIAL
4
NUMBER 41
CONFIDENTIAL
5
CHART 2 - WOOD PULP
(Chemical Grades for Paper Monufocture)
REQUIREMENTS AND SUPPLY BY GRADES
ITHOUSANDS OF SHORT TONS)
5000
5000
SULPHITE BLEACHED
SULPHITE-UNBLEACHED
SULPHATE-BLEACHED
SULPHATE-UNBLEACHED
SODA
(Fine, Book . Other!
LAM Papers 1
(Paparboard, Wrapping
Papartment, Wropping)
(Book)
184
4000
4000
3742
3343
1000
3000
1000
du
and
2000
1722
1744
1596
1604
1000
872
115
174
799
698
763
1000
©
o
1941
(94)
1942
1941
(94)
1942
1941
1941
1942
1941
1941
1942
1941
1941
1942
Extimated
Extimated
Extimated
Supply
Requirements
Supply
Requestments
Supply
Requirements
Supply
Requirements
Supply
Requirements
Other types of wood pulp, viz., mechanical grades for paper
manufacturing (pulp wood) and chemical grades for explosives and
rayon manufacture, including alpha cellulose, appear at present
to be in ample supply from combined American and Canadian sources.
However, the problem of transportation arises with these grades
as well, due to the inaccessibility of the points of original
source. Further, the maintenance and expansion of present plant
and equipment to handle peak loads depends to an important degree
upon unrestricted supplies of chrome- and nickel-steel for mixing
tanks and other basic maintenance items.
Crude Rubber
In 1940, as indicated in Chart 3, imports were approximately
818 thousand long tons of crude rubber and consumption was 618
thousand long tons. Up to April 1, 1941, imports were 248 thousand
tons and on that date there were another 140 thousand tons afloat.
Shipping adequate to bring in an additional 275 thousand tons be-
tween April 1 and August 1 has been allocated. Thus, the 1941
supply presently in sight is in the vicinity of 663 thousand tons
assuming no reallocation or loss in shipping now scheduled.
MAY 23, 1941
CONFIDENTIAL
...
5
NUMBER 41
CONFIDENTIAL ... 6.
CHART 3 - CRUDE RUBBER
REQUIREMENTS AND SUPPLY
THOUSANDS OF LONG TONS
o
200
400
600
800
1000
1200
NEW SUPPLY-IMPORTS 1940
818
CONSUMPTION 1940
618
NEW SUPPLY-IMPORTS 1941
1,000 +
Recd to Apr 1st.
Afloat
Shipping
-
Apr.l st.
Allocated to Aug 1st
EST. REQUIREMENTS 1941
780
EST. REQUIREMENTS 1942
870
+ Computed on bosis rate of receipts of first quarter and indicated receipts to Aug. I, 1941.
# These estimates indicate requirements for direct military moteriel and indicated civilion demand.
At the end of 1940 stocks of crude rubber were 425 thousand
tons inclusive of the Government stockpile. If imports during
1941 continue at the rate established 80 far this year there is
a reasonable expectation of receipts of 1 million long tons.
These receipts plus stocks of 425 thousand tons at the beginning
of the period, or a total estimated supply in 1941 of 1,425
thousand long tons, compares with 1941 requirements of 780 thousand
tons for direct military material and indicated civilian demand.
The corresponding 1942 figure is 870 thousand tons. Military,
including British, requirements are included in these figures at
50 thousand tons for 1941 and 35 thousand tons for 1942. These
represent the Army-Navy Munitions Board estimate of July 1940
adjusted to & 2,000,000-man effort. New military estimates by
the Bureau of Research and Statistics of OPM are now in process.
Apparently, in relation to new supply alone, there is an
indicated surplus of crude rubber available in 1941 of over
200 thousand long tons. Year-end stocks would increase this
margin to 645 thousand long tons. However, it is important
to remember that interruption of sea traffic could limit our
1941 supply to less than 700 thousand long tons and imperil
MAY 23, 1941
CONFIDENTIAL
6.
NUMBER 41
CONFIDENTIAL
7
our 1942 supply in its entirety. Moreover, consumption in
1941 is running at a constantly increasing rate month to month,
the highest rate in United States history and considerably in
excess of a year ago, and the relative consumption of reclaimed
rubber is below that of a year ago. However, some new sources
of supply are being provided to some extent through the construc-
tion of plants to produce synthetic rubber and the development of
plantations in South America and the Caribbean area.
Silk
Japan supplies 81 percent of the silk imports and China
15 percent more. Due to technical production superiority
(reeling) it is impossible for the other countries, even China,
to make any real inroad on Japan's silk supply monopoly.
At the beginning of the year stocks of raw silk in New York
warehouses and in transit from Japan totaled 12 million pounds.
By the end of April this total had been reduced by 3 million.
This indicates a current rate of consumption considerably higher
than the import rate and justifies the view that current supply
is not adequate for current requirements. The same conclusion
results from projecting the current import rate to the end of the
year. Receipts in the remaining eight months at the 1940 rate
would result in a 1941 supply approximating 44 million pounds -
above the 1940 'net mill takings total of 38 million but well be-
low the indicated 1941 requirements of 48 million pounds.
With a continuance of the present 1941 rates of consumption
and imports the future of the reserve supplies is not bright.
Since consumption ate into stocks to the extent of 3 million pounds
in the first four months, a further decline of between four and
five million can be anticipated in the remainder of the year. In
this event 1941 might end with stocks of merely two to three million
pounds and a consumption rate of four million pounds a month. In
the light of these proportions imports become extremely important.
The highlight of the current silk picture is one of shortage
and substitution. In the last four years consumption of raw silk
was curtailed 32 percent, dropping from 54 million pounds in 1937
to 36 million pounds in 1940 (waste silk not included) but further
MAY 23, 1941
CONFIDENTIAL
7
NUMBER 41
CONFIDENTIAL
8
progress in substitution seems necessary, particularly in view of
normal and expanding military demand for silk and silk waste in
the present emergency. At the present time practically every
silk use is being carefully scrutinized and studied with a view
to early substitution by long staple cotton or other synthetic or
natural fibres. Thus, & present tight inventory situation fraught
with increasing shipping and foreign-source uncertainties may be
relieved in the way most desirable for national defense.
Cattle Hides
The supply of cattle hides comes from South America. The
status of cattle hides has already been discussed in the Summary
of Defense Progress, Issue Number 30, March 7, 1941. Here, too,
there is the problem of bottoms - the problem of how to get the
supplies of hides to the point of their greatest present economic
effectiveness from the standpoint of American requirements.
MAY 23, 1941
CONFIDENTIAL
8
NUMBER 41
CONFIDENTIAL
9
DEFENSE PRODUCTION AND DISBURSEMENTS
MORE THAN 60 PERCENT of the ordnance, naval ships, and airplanes
and 87 percent of the industrial facilities scheduled for 1940
and 1941 remain to be produced in the last eight months of 1941.
Unless more rapid progress is made in the construction of facili-
ties, the production of materiel in 1942 will fall radically short
of requirements.
A
t least 87 percent of the industrial facilities, 65 percent
of the naval ships, 63 percent of the aircraft, and 60 per-
cent of the ordnance required by the end of 1941 remain to
be produced in the last eight months of 1941.
These percentages of requirements to be produced by the end
of 1941 refer to the proposed program for 1940 and 1941 given in
the Summary of Defense Progress, Number 34.8 For 1940 and 1941
the requirements amount to: industrial facilities, $3,800 mil-
11on;b aircraft, $2,800 million; ordnance, $2,100 million; and
naval ships, $1,800 million.
In April the total defense disbursements in the United
States, including British, amounted to about $1,066 million.
This was the second successive month in which disbursements sur-
passed the billion-dollar mark. Of the total, $962 million con-
stituted the defense payments made by agencies of the Federal
Government, and the remainder was made by the British Purchasing
Mission and the Ministry of Shipping. The total disbursements
during the first ten months of this fiscal year exceeded
$6.7 billion, of which $5 billion was paid out by agencies of
the Federal Government. The estimated Federal payments of
$962 million in April compared with $853 million in March and
$167 million in July 1940.
The disbursements by months are shown in the accompanying
three tables. Table 1 gives the cumulated figures for the War
Department, Navy Department, and other Federal agencies; Table 2
shows estimates of the United States disbursements by major ob-
jects; and Table 3 gives British disbursements for approximately
the same object groupings.
a The figures here used are the latest revisions and differ
somewhat from those in Summary of Defense Progress Number 34.
b Does not include land, estimated to cost $200 million.
MAY 23, 1941
CONFIDENTIAL
9
NUMBER 41
CONFIDENTIAL
...
10
TABLE 1- ESTIMATES OF DEFENSE DISBURSEMENTS
BY UNITED STATES AGENCIES A
CUMULATED BY MONTHS, JULY 1, 1940 TO MAY 1, 1941
(SUBJECT TO REVISION)
1940
1941
AGENCY
JULY
AUG.
SEPT.
OCT.
Nov.
DEC.
JAN.
FEB.
MAR,
APR.
(MILLION DOLLARS)
U. 8, ARMY
78
175
270
419
604
875
1,241
1,703
2,209
2,768
U. S. NAVY
84
196
335
672
643
815
1,021
1,219
1,480
1,771
OTHER U.S.
AGENCIES
5
16
39
70
107
150
201
263
349
461
TOTAL
167
387
644
961
1,354
1,840
2,463
3,185
4,038
5,000
& DISBURSEMENTS ARE ON A CHECKS SSUED BASIS.
It is still difficult to estimate the extent to which cash
payments correspond to the value of production. There are, how-
ever, indications that, in 80 far as construction is concerned,
payments through April understate the value in place by perhaps
10 to 15 percent. In the construction of ships alone the dif-
ference between payments and work in place is perhaps no more
than 10 percent; in other construction it may be 'as high as
15 percent. Thus, the total payments of $506 million for naval
ships shown in Table 2 represent a total value in place of about
$560 million. Likewise, on the basis of total payments of
$1,104 million, the value of construction in place for stations,
bases, fortifications, etc., as of the end of April, may be 08-
timated at about $1.3 billion. The value of Federally-financed
industrial facilities in place on April 30 may in the same man-
ner be estimated at about $340 million.
No definite comparison between the production of and pay-
ments for ordnance can as yet be made. But in the case of air-
craft it can be definitely stated that payments considerably
overstate actual output, including planes completed, work in
process and parts inventories (including British procurement in
this country).
MAY 23, 1941
CONFIDENTIAL ... 10
NUMBER 41
CONFIDENTIAL
...
II
TABLE 2 - ESTIMATES OF DEFENSE DISBURSEMENTS BY UNITED STATES AGENCIES
BY MAJOR OBJECTS A
(Subject to Revision)
Object
1940
1941
Total
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
(Million dollars)
Naval Ships
506
29
31
44
40
63
52
62
54
65
66
Airoraft by
491
13
13
15
26
21
29
33
66
126
149
Ordnance loose
501
a
25
32
31
42
52
61
43
62
105
Sub-Total
1,498
63
69
98
97
126
133
156
163
273
320
Stations
Bases, Portifica-
tions, etc.
1,104
10
33
31
56
88
124
175
232
190
163
Industrial
Facilities
305
1
1
7
8
6
16
49
52
63
102
Other Materials,
Equipment
and Con-
struction
1,229
36
56
56
04
97
126
150
167
206
245
Total
4,136
110
159
194
247
317
401
530
614
734
830
Pay Rolls
564
57
61
63
70
76
65
93
108
119
132
Total,
Including
Pay Rolls
5,000
167
220
257
317
393
486
623
722
853
962
1 Data are on a checks issued basis, They do not include VPA projects or the regular long range shipbuild-
ing program of the U. 5. Maritime Commission.
Al
Disbursements by Air Corps and Bureau of Aeronautics less estimated amounts for maintenance, operation,
and other nonairoraft purposes.
loo Includes disbürsemente for armor, areasent and ammunition for naval ships.
The production progress of ordnance, aircraft, naval ships,
and industrial facilities in relation to the proposed progress
for 1940 and 1941 is shown in the accompanying chart. The pro-
duction actually completed, cumulated through April, 1s repre-
sented by the curves moving toward the 100-percent points on the
bars. Since disbursements do not measure accurately the actual
output, the production progress 18 represented by a band, in or-
der to indicate the range of estimated production.
On the basis of these estimates, the bands in the produc-
tion progress charts were drawn as follows: the lower limits of
the bands for ordnance, naval ships, and industrial facilities
are set by the disbursement figures. The spread between the
lower limits and the upper limits represents the estimates of the
lag between payments and work done. For aircraft, however, pay-
ments exceed production; hence the curve is based on deliveries,
with an allowance for work in process.
MAY 23, 1941
CONFIDENTIAL
Il
NUMBER 41
CONFIDENTIAL ...
12
DEFENSE PRODUCTION IN RELATION TO TOTAL
SCHEDULED TO DECEMBER, 1941
PER CENT
PER CENT
100
100
ORDNANCE PROGRAM
AIRCRAFT PROGRAM
100% = $2.1 Billion
100 % # $2.8 Billion
80
80
60
60
40
40
20
20
o
o
100
100
NAVAL SHIPS PROGRAM
INDUSTRIAL FACILITIES PROGRAM
100 % = $1.8 Billion
100% . $3.8 Billion
80
80
60
60
40
40
20
20
o
o
J A S o N D J F M A M J J A S o N D
J ASONDJFMAMJJASONO
1940
1941
1940
1941
Shaded crea indicates range of estimated production.
MAY 23, 1941
CONFIDENTIAL
...
12
NUMBER 41
CONFIDENTIAL
...
13
The trends of the curves representing ordnance, aircraft,
and naval ships suggest that there is a reasonable possibility
of attaining the proposed amounts of production by the end of
1941. This is 60 because the schedules had been set in accord-
ance with the limited available facilities. In the case of in-
dustrial facilities, however, it seems that only most striking
progress during the remaining eight months of the year will see
a substantial part of these plants ready for operation by the
beginning of 1942. Since these facilities are necessary in the
production of materiel scheduled for 1942, they must be com-
pleted in the shortest possible time in order to fulfill the
1942 schedule. There is need for prompt and decisive action,
since the construction of nearly one-half of the required fa-
cilities is not yet under contract.
TABLE 3 - CASH PAYMENTS IN THE UNITED STATES
BY THE BRITISH PURCHASING MISSION AND MINISTRY OF SHIPPING
December 1939
to
1941
Object
Total
December 1940
January
February
March
April
Inclusive
(Million Dollars)
Aircraft
771
544
83
46
60
38
Ordnance
266
169
20
27
29
21
Ships and
Equipment
84
64
4
6
5
5
Industrial
Facilities
185
147
8
14
9
7
Other
622
435
64
37
53
33
Total
1,928
1,359
179
130
156
104
MAY 23, 1941
CONFIDENTIAL
13
NUMBER 41
CONFIDENTIAL
...
14
GEOGRAPHIC DISTRIBUTION OF DEFENSE CONTRACTS
T
he geographic concentration of prime contracts awarded by
the War and Navy Departments has been decreased during April.
Chart 1 indicates that each of seven States has now re-
ceived five or more percent of the total awards which can be
traced to individual States. Together, these seven States re-
ceived contracts aggregating $6,219 million, or 57 percent of the
total of $11,575 & awarded by April 30, 1941. At the end of
March, b each of eight States had received five or more percent
of all defense prime contracts; these eight had received 63 per-
cent of the total awards.
At the end of March, 7.6 percent of the prime contracts were
assigned to 29 States which had each received less than one per-
cent of the total. At the end of April, the share awarded in the
smaller states had been increased to 9.1 percent of the total.
Contracts for airplanes, engines, parts, and equipment are
more highly concentrated than are contracts as a whole, but less
concentrated in April than in March. 92 percent of the contracts
a
This 1a the total of public-knowledge awards on which indi-
vidual reports have been received, excluding awards for fuels,
foodstuffs, and services, and excluding all contracts involving
less than $10,000. In addition, a. total of $2,370 million has
been issued in the form of project orders and directives to
Army and Navy establishments. Project orders have been omitted
from the tabulation but a substantial part of these project
order funds are subsequently awarded as prime contracts and in
cluded in this tabulation. The total of prime contracts and
project orders, $13,945 million, differs from that presented
in Defense Progress Data. In Defense Progress Data, (a) pro-
ject orders are included at one-half reported value; and (b)
pay, travel, subsistence, and contracts which are not public
knowledge are included.
el
The tabulation through April reflects the awarding of new con-
tracts, the revision of data and reallocation of contracts
previously included and the addition of several contracts for
naval vessels previously not reported.
MAY 23 1941
CONFIDENTIAL
...
14
CHART I - MAJOR DEFENSE PRIME CONTRACTS
MAY 24, 1941
AWARDED BY THE WAR AND NAVY DEPARTMENTS
ALL CONTRACTS
NUMBER 41
JUNE I, 1940 . APRIL 30, 1941
NOME
. las.
1
CARD
:
1. DMM,
F
1
i
I
Visa
NESS
FILE
5
-
it
42
&
- in
GELA
all
ID
$
11
A
1
$
CONFIDENTIAL ... 15
=
FLA
PER CENT OF VALUE OF ALL CONTRACTS
10% AND OVER
25-49%
CONFIDENTIAL ... 15
7.5 9.9%
LESS THAN 2.5%
5.0 7.4%
NO CONTRACTS
NUMBER 41
CONFIDENTIAL ... 16.
for airplanes at the end of April compared with 94 percent at the
end of March are concentrated in eight States: California, New
Jersey, New York, Maryland, Michigan, Connecticut, Washington and
Indiana.
Ship construction and equipment contracts valued at $2,780
million, or 78 percent of the total, have been assigned to com-
panies located in New Jersey, Massachusetts, California, Virginia,
Washington, Pennsylvania, and Maine. Since the major Government
yards are also located in these States, if data on project orders
were also included the concentration would be even higher.
Table 1 indicates the distribution of major defense prime
contracts awarded by the War and Navy Departments by States and
major objects by April 30, 1941.
MAY 23, 1941
CONFIDENTIAL ... 16
NUMBER 41
CONFIDENTIAL
17
DISTRIBUTION OF NAJOR DEFENSE PRIME CONTRACTS AMARDED BY THE
MAR à MAY DEPARTMENTS, BY STATE AND MAJOR OBJECT a
APRIL 30, 1941
AIRPLANES,
SHIP
STATE 1
ENGINES
CONSTRUCTION
ALL
TOTAL
PARTS AND
AND
OTHER
EQUIPMENT à
EQUIPMENT
(THOUSAND DOLLARS)
GRAND TOTAL'&
11,574,746
2,408,418
3,623,143
5,543,185
CONTINENTAL UNITED STATES
10,832,564
2,399,062
3,570,611
4,662,871
ALABAXA
166,429
-
29,396
137,033
ARIZONA
3.337
-
ARKANSAS
4:654
2:332
CALIFORNIA
1,322,958
663,208
454,681
205,069
COLORADO
136,514
136,475
COMMECTICUT
543,375
203,914
124,365
213,096
DELAVARE
6,224
-
4,251
1,943
DISTRICT OF COLUMBIA
5,402
-
5,205
FLORIDA
94,722
-
46,309
48,415
GEORGIA
84,701
19
5,265
79,417
IDAHO
1,251
-
-
1,251
ILLINOIS
315,403
39,240
23,937
252,226
INDIANA
363,770
120,561
1,354
241,635
IOWA
68,744
41
21
68,682
KANSAS
57,610
37,439
20,171
KENTUCKY
48,427
117
241
48,069
LOUISIANA
34,342
-
3,972
30,370
MAINE
185,053
174,624
10,429
MARYLAND
337,441
229,640
6,717
100,884
MASSACHUSETTS
686,091
4,043
528,030
154,018
MICHIGAN
670,057
212,866
25,930
431,261
KINNESOTA
43,131
705
439
41,987
MISSISSIPPI
69,443
50,014
19,429
MISSOURI
348,784
66,898
1,301
260,585
MONTANA
12
-
12
NEBRASKA
14,240
-
13
14,227
MEVADA
4,083
-
4,043
NEW HAKPSHIRE
12,333
50
16
12,265
KEV JERSEY
1,356,492
312,063
615,625
228,604
KEY MEXICO
9:362
-
9,362
KEV YORK
1,002,853
330,902
137,960
533.971
NORTH CAROLINA
69,563
763
68,800
NORTH DAKOTA
OHIO
468,643
18,013
124,933
325,697
OKLAHOMA
16,731
1,860
14,509
OREGON
50,656
11
36,212
14,633
PENNSYLVANIA
639,063
18,809
177,299
442,955
RHODE ISLAND
61,301
76
5,248
55.977
SOUTH CAROLINA
39,825
47
242
39,539
SOUTH DAKOTA
125
-
-
128
TENNESSEE
75,342
57
1,424
73,861
TEXAS
220,998
215
99,319
121,464
UTAH
9,912
-
65
9,647
VERMONT
3,250
-
3,250
VIRGINIA
539,348
-
389,769
149,559
WASHINGTON
422,940
135,791
239,352
47,767
VEST VIRGINIA
67,272
y
1,649
05,549
VISCONSIN
127,588
2,203
54,975
65,410
VIOMING
4,293
4,293
OFF CONTINENT
93,749
-
758
92,991
UNASSIONABLE
648;433
9,336
51,774
587.323
a Contracts and project orders involving less than $10,000 have been excluded because the coverage of smaller
contracts is incomplete, Although contracts under $10,000 represented about one-fourth of the total number
of avards they accounted for less than one-half of one percent of the total value of contracts reported.
All avards for fuels, foodstuffs, and certain missellenenus items have been excluded.
live Contracts have been assigned to States on the basis of the location of producing plants. Whenever it vas
not possible to determine where the work was to be performed, or whenever a contract sould not be assigned
to a specific plant of a company which here nor- than one plant, the value of the contract vas included is
the "Unserignable" group presented at the end of the table.
la Airplane areasent is not included,
lo In edition to prime contracts toteling $11,574,746,000, project orders have been issued to Government ap-
senale and other Government e+tablishments in the amount of $2,370,000,000; the grand total of defense
price contracts and project orders 10 thus $13,944,746,000.
MAY 23, 1941
CONFIDENTIAL
...
17
NUMBER 41
CONFIDENTIAL
...
18
UNITED STATES NAVY PROGRAM
0
ver $13,633 million in funds, contract authorizations, and
tonnage authorizations are now available for the United States
naval program. This amount reflects the approval of Title I of
the 1942 Navy Budget on May 6 in which net new additions of $1,810
million were made to the existing program. The total amount ap-
propriated in the new Act is $3,447 million, of which $1,637 mil-
lion is to liquidate contract authorizations previously granted.
The table below shows the distribution of the $13,633 million ac-
cording to purposes.
TABLE 1 - UNITED STATES NAVY PROGRAM
Purpose
Amount
(Million Dollars)
Naval Vessels and Equipment
6,736
Armor, Armament, and Ammunition
2,850
Airplanes, Engines, and Accessories
861
Stations, Depots, Bases
987
Industrial Facilities
882
Other Equipment
224
Pay, Subsistence, Training
1,093
Total
13,633
The 1942 Budget for the Army has, as yet, not been approved
by the Congress.
MAY 23, 1941
CONFIDENTIAL
...
18
NUMBER 41
CONFIDENTIAL ... 19
DEFENSE PROGRESS DATA
D
ata previously presented in this section have been re-
vised and new data have been added, both of which serve
to indicate more completely:
(1) The magnitude of the total defense pro-
gram in the United States;
(2) The progress being made in carrying out
this program;
(3) Various impacts of the defense program
on the economic life of the nation.
The first section of Defense Progress Data shows the
size of the armed forces of the United States and the volume
of the supplies and equipment which must be obtained to make
them effective. It shows the amounts allocated to defense
agencies by Congress, British purchases, and the progress
which these agencies are making in fulfilling their respon-
sibilities. Also in this section, data on the program are
reclassified by selected major objects. It is possible
therefore to see the program and progress by individual agen-
cies or by individual objects.
The second section of Defense Progress Data presents
some measures of the impacts of the United States defense
program upon the whole economy. Data presented in this sec-
tion will be expanded and new series will be added from time
to time.
MAY 23, 1941
CONFIDENTIAL
...
19
NUMBER 41
CONFIDENTIAL 20
DEFENSE PROGRESS SERIES
Agency and Object
Week Ending
Week Ending
July 1940
January
March
April
May 10
May 17
TOTAL UNITED STATES DEFENSE PROGRAM
UNITED STATES ARMED FORCES á
(Thousends, officers and enlisted - nearest available date)
Army
289
693
1,004
1,211
1,299
1,321
Navy and Marine Corps
2 196
I 271
I 293
2 296
Total active strength
a 485
I 964
E 1,297
2 1,507
FINANCIAL PROGRAM
(Million dollars, data cumulated)
Total authorized program
14,968 4
26,663
35,470
39,771
41,619
Total cash disbursements
571
4,064
5,969
7,047
U. 5. MILITARY
APMI - Program
2,620
8,377
9,239
13,135
13,135
13,135
Contract awards & payroll
582
5,951
7,091
7,334
M.A.
7,801
Cash disbursements
78
1,241
2,209
2,768
MAVY - Program
9,425
11,127
11,590
11,825
13,633
13,633
Contract awards & payroll
1,515
6,009
7,213
7,629
1.1.
7,840
Cash disbursements
of
1,021
1,480
1,771
TOTAL- Program
12,045
19,504
20,769
24,960
26,768
26,768
Contract awards & payroll
2,097
11,960
14,304
14,963
B.4.
15,641
Cash disbursements
162
2,262
3,689
4,539
LEASE LEND PROGRAM
Program
7,000
7,000
7,000
Contract awards
Cash disbursements
BRITISH PURCHASES
Contract awards
1,282
3,426
3,649
3,710
23,750
Cash disbursements
396
1,538
1,824
1,928
MARITIME COMMISSION 1
Program £
840
640
1,154
1,154
1,154
Contract awards
n.a.
n.s.
a
д.д.
L.A.
Cash disbursements
a
83
107
121
DEFENSE HOUSING PROGRAM
Program
o
325
330
330
330
330
Contract awards 1
o
128
174
227
238
239
Cash disbursements
o
B.A.
n.s.
B.A.
a.s.
OTHER AGENCIES &
Purchases and allocations
801
2,568
2,568
2,617
2,617
Cash disbursements
5
201
348
455
2 Preliminary data
M Revised data
(continued - next page)
S.A. Data not available
MAY 23, 1941
CONFIDENTIAL ... 20
NUMBER 41
CONFIDENTIAL
...
21
DEFENSE PROGRESS DATA (continued)
Agency and Object
Vesic Boding
Yesit Holling
July 1940
January
March
April
May 10
May 17
(millon dollars, data comulated)
AIRPLACES, NTC.
Program
1,564
4,476
6,711
6,132
8,24
6,2kd
Contract evarts
689
3,852
4,069
4,172
a.a.
4,291
Cash disbursements
a.s.
776
1,076
1,262
MATAL SEIPS & PARTS
Program
5,765
6,005
6,288
6,348
6,736
6,736
Contract avards
1,207
4,500
4,500
4,527
a.s.
4,543
Cash disbursements
29
321
Mo
506
MERCHANT YESSELS
Program
as
98%
1,929
1,939
1,939
21,939
Contract avarts
1.8.
n.s.
a.s.
n.a.
Cash disbursements
A.A.
151
186
205
ORDEANCE
Program
2,805
4,707
6,530
7,754
6,120
6,120
Contract avards
367
2,491
3,437
3,725
a.s.
3.939
Cash disbursements
a.a.
460
641
767
order EQUIPMENT
Program
640
1,974
2,712
3,037
3,038
3,038
Contract avarts
434
1,808
2,000
2,064
a.e.
2,120
Cash disbursements
s.a.
1,014
1,434
1,687
PAY, SUBSISTENCE,
& OTHER SERVICES 1
Allocated funde
1,834
3,846
4,768
4,988
5,664
5,668
Cash disbursements
n.s.
598
870
1,026
a.s.
1,112
ACCND STOCEPILE PROGRAM
Stockpile program
390
485
485
485
485
485
Purchases under program
50
237
312
325
327
328
Purchases ta excess of
program a
o
39
76
76
79
65
Deliveries
26
106
133
149
153
154
CONSTRUCTION
INJUSTRIAL FACILITIES &
Program
395
2,437
3.370
3,965
3,965
3.965
Contract avards
110
1,397
1,724
1,749
a.a.
2 1,933
Cash disbursements
1.4.
243
381
990
a.s. Data not available
2 Prelisinary date
(Continued on following page)
I Revised data
MAY 23, 1941
CONFIDENTIAL ...
21
NUMBER 41
CONFIDENTIAL ... 22
Defense Progress Date (Continued)
AGENCY AND OBJECT
Nesk Inding
Week Ending
July 1940
January
March
April
May 10
May 17
POSTS, DEPOTS, HOUSING
(Million dollars, data cumulated)
Program
727
1,749
2,677
3,123
3,420
3,420
Contract awards
230
929
1,590
1,711
B.B.
1,734
Cash disbursements
10
519
941
1,104
CERTIFICATES OF NECESSITY ISSUED
(Nekrest available date) A
.
Cost of facilities applied for
1,034
1,113
Cost of approved facilities
815
896
Privately financed a
659
733
U. 8. financed'À
156
163
Cost of facilities on application
217
213
DEFENSE HOUSING 1
(Total number of housing units to date)
Fund allocations
56,528
80,183
86,361
96,286
96,286
Construction contracts amrded
36,191
48,416
60,293
68,217
68,866
Construction completed
1,314
5,424
9,024
9,929
10,712
PRIORITY CERTIFICATES & EXTENSIONS ISSUED
(Number to date)
Total
75,709
131,208
165,341
186,235
ECONOMIC ACTIVITY RELATED TO DEPENSE
TED. RES. INDUSTRIAL PRODUCTION
(Indexes, seasonally adjusted, 1935-9-100)
Durable afrs.
112
121
127
130
Nondurable afrs.
132
170
170
166
Total industrial production
121
139
143
139
as PRICE INDEXES
Strategic materials (8/39=100)
123.8
£ 126.1
131.9
135.9
138.1
139.1
Critical materials
(8/39-100)
107.6
111.5
£ 112.0
112.4
112.5
112.8
Basic commodities
(8/39-100) 1
108.3
E 120.5
X 129.7
136.9
142.7
143.9
Machine tools
(8/99=100)
108.7
114.6
115.1
116.4
All commodities
(1926-100)
77.7
80.8
81.5
I 83.2
84.0
84.6
no COST OF LIVING INDEX (1923-0.00)
85.7
86.0
86.3
86.9
FEDERAL DEBT
(Billion dollars, end of month)
Net public debt A
41.5
43.9
44.4
44.8
NATIONAL INCOME
(Annual rate, billion dollars)
Total income payments
73.3
79.4
80.3
n.a. Data not available
I Revised data
(continued on next page)
MAY 23, 1941
CONFIDENTIAL ... 22
. .
NUMBER 41
CONFIDENTIAL
...
23
DEFENSE PROGRESS SERIES (Continued)
AGENCY AND CREDIT
Yesk Inding
Nesk Inding
July 1940
January
March
April
May 10
May 17
EMPLOIMENT 2
(Thousand sen, date nearest 15th of month)
Private, leading defense industries
1,749
2,088
2,161
Public defense employment %
132
612
653
Total direct defense employment
1,681
2,700
2,814
Total civil nonagricultural
35,454
36,621
37,218
V. P. A. smployment &
1,659
1,834
1,764
1,607
1,519
1,497
UNDEPLOYMENT (NICE detimate)
(Monthly total)
Number of unemployed
8,566
7,367
6,142
LABOR DISPUTES 2
(Monthly figures)
Number of strikes in progress
290
Z 322
la 475
Workers involved (thousands)
76
108
2 165
Man days 1dle (thousends)
552
I 662
1,400
Strikes beginning in month
182
E 213
330
Bourses
1 Office of the Defense Housing Coordinator.
2 United States Department of Commerce, Bureau of Foreign and Domestic Commerce.
1 United States Department of Labor, Bureau of Labor Statistics.
& Work Projects Administration. Weekly figures are as of May 7 and May 14.
Tostactes
& Monthly data are as of the close of the month, unless otherwise indicated.
1 Includes orders and disbursements in this country since December 1939 by the British Purchasing Mission
and the Ministry of Shipping.
de Includes regulars, all retired and reserve - and officers on active daty, National Guard in Federal
service, and Selective Bervice trainees.
4 Includes $7,339 willion in tomage authorisations.
a Includes the regular and emergency shipbuilding programs of the United States Maritine Commission.
£ Includes FT 1940 funds carried over.
& Includes expenditures for defense purposes by the regular monailitary departments and other Federal
agencies.
1 Includes estimates of subsistence of 42 centa a day for esch - in the Army and 47 cente a day for
each - in the Navy.
Footactes continued - next page
MAY 23, 1941
CONFIDENTIAL ... 23
....
NUMBER 41
CONFIDENTIAL 24
Defense Progress Data Footnotes (Continued)
1 Monthly figures as of the Saturday nearest the close of the month.
I The commodities in excess and the value of their excess purchases verel antimony. #3 million; mags-
ness, $32 million: quinine, 8.5 willion, and tungster $50 million.
1 Industrial Facilities is not an exact masure of the volume of nev facilities since 11 does not 1a-
clude contracts with private financing amancies.
! Includes RFC loans to private industry for industrial facilities which are also covered under la-
dustrial Facilities above.
a The entire cost of United States financed facilities is included under Industrial Facilities above.
lo Monthly figures are as of the closs of last full week of the month.
s. Index mumbers for the week are as of the Saturday closing the week.
1 Gross Public Debt less balance in the General Fund.
1 Includes employment in aircraft, shipbuilding. machine tools, engines, aluminus, explosives. and com-
struction.
и. Civilian employment in areenale and savy yards. the Corps of Ingineers and V.P.A. are excluded.
MAY 23, 1941
CONFIDENTIAL ... 24
PSF
444
-
Infense Contracts
Weekly Progress Reports from the following Dofense Divisions and
Agencies:
Office of Price Administration and Civilian
Supply
Transportation Division
Division of Dofonse Housing Coordination
Division of State and Local Cooporation
Report #45
May 28, 1941
Copy # A-1
- -CONFIDENTIAL-
444
1227
OFFICE OF PRICE ADMINISTRATION AND CIVILIAN SUPPLY
CONFIDENTIAL
Leon Henderson, Administrator
May 28, 1941
Weekly Operations Progress Report
Prices. Meetings were held during the past week with representatives
of the New York Cocoa Exchange, New York Produce Exchange, Commodity
Exchange, Inc., and the New York Coffee and Sugar Exchange to discuss
measures for the reduction of speculation responsible for recent
price increases in cocoa, pepper, rubber, and coffee. At these
meetings agreements were reached to increase margin requirements and
to take immediate steps to discourage solicitation of speculative
accounts in the above commodities.
On May 23 this Office issued a schedule to be effective
May 26, 1941, fixing ceiling prices for various grades of combed
cotton yarn to apply to all deliveries under old contracts after
May 26, as well as to new contracts. This action was taken follow-
ing extensive studies made by this Office and after meetings with
the industry. In issuing the schedule it was stated that a cost
study would be undertaken promptly to determine whether the schedule
works such hardship on marginal firms as to threaten a curtailment
of production.
Staff. Mr. Robert E. Sessions has been appointed Assistant Director
of the Price Division and assumed his duties on May 26. Mr. Sessions
has been serving as Assistant to the General Manager of the Tennessee
Valley Authority at Knoxville, Tennessee. In his new capacity Mr.
Sessions will assume responsibility for the coordination of the work
of the Section Chiefs in the Price Division.
The following appointments have been made to the staff of Mr.
Joseph L. Weiner, Assistant Administrator in Charge of Civilian
Allocation:
Melvin G. de Chazeau as Chief of the Iron and Steel Section.
Mr. de Chazeau has been serving as consultant in the Materials Branch
of the Production Division of the Office of Production Management.
Edward T. McCormick as Chief of the Fuel Section. Mr.
McCormick has been serving as advisor to Miss Harriet Elliott on
priorities.
V. Lewis Bassie as Chief of the Standards and Research Section.
Mr. Bassie was formerly chief of the Civilian Requirements Section of
the Bureau of Research and Statistics of the Office of Production
Management.
44
1228
TRANSPORTATION DIVISION
CONFIDENTIAL
Ralph Budd, Commissioner
May 28, 1941
Weekly Operations Progress Report
Climbing to a new peak for the year, the volume of revenue freight
transported by motor truck in April increased 4.4 per cent over March
and 38.3 per cent over the volume carried in April, 1940, according to re-
ports released by the American Trucking Associations.
Comparable reports were received by ATA from 202 motor carriers in
forty-two states. The reporting carriers transported an aggregate of
1,509,143 tons in April, as against 1,446,104 tons in March, and 1,111,604
tons in April, 1940.
Slightly more than 78 per cent of all the freight transported in
the month was reported by carriers of "general freight". The volume of
this category increased 6.7 per cent over March, and 41.6 per cent over
April of the previous year.
Transporters of petroleum products, accounting for almost 7 per
cent of the total tonnage reported, showed an increase of 4.9 per cent in
April, as compared with March, and an increase of 10.8 per cent over
April, 1940.
Movement of new automobiles and trucks, constituting almost 6 per
cent of the total tonnage, decreased 19 per cent under March, but held
9.2 per cent over April, 1940. The decline under March was attributable,
in part, to strikes in manufacturing plants.
Haulers of iron and steel products reported about 43 per cent of
the total tonnage. The volume of these commodities showed a decrease of
7.8 per cent under March, but increased 25.5 per cent over April of last
year.
A little more than 4 per cent of the total tonnage reported was
miscellaneous commodities, including tobacco, milk, textile products,
building materials, coal, cement and household goods. Tonnage in this
class increased 18.4 per cent over March and 37.1 per cent over the
volume hauled in April, 1940.
During the week ended May 24 the four principal ore leading rail-
roads loaded into boats at upper lake ports a total of 2,281,391 long
tons of ore compared to 1,687,392 tons during the corresponding week in
1940. For the season to date there have been 15,017,235 tons of ore
loaded into boats compared to 5,750,007 tons during the corresponding
period of 1940. Ore loadings are at present 9,267,228 tons ahead of the
1940 level.
Arrangement was made this week with railroads having grain eleva-
tors at Baltimore, Philadelphia, New York and Norfolk, which will permit
FL
1229
TRANSPORTATION DIVISION (Continued)
the storage of 4,300,000 bushels of Government grain now held in the
middle west at eastern seaboard. It was necessary for railroads to
sign the Uniform Grain Storage Agreement of the Department of Agricul-
ture before the Government could utilize this space, thus freeing &
similar amount of space for handling of the coming wheat crop. Report
today shows that the grain-carrying railroads have more freight cars
stored for grain loading than on the corresponding date in 1940, in-
dicating that the railroads from a transportation standpoint can handle
the grain crop without any serious difficulty providing storage space is
available. Farmers have been urged by the Department of Agriculture to
increase storage of grain on farms, which to the extent done will avoid
difficulties due to lack of storage space at terminal elevators. The
position of the Transportation Division, which has been made known to all
concerned, is that freight cars must not be used for storage of grain and
will not be furnished for loading unless such storage space is available.
Following recent action of the Advisory Commission concerning the
building up of coal stocks by all consumers during the summer months,
President Pelley of the Association of American Railroads, on our request,
yesterday notified all railroads of the commission action and asked them
to assist in two ways:
(1) By building up their stock of company fuel
during the summer months; and
(2) By having their freight agents, freight solici-
tors, and others who may come in contact with
coal receivers urge upon such receivers the
desirability of building up coal stocks.
During the past week study has been made of the extent to which
freight car construction has been, is being, or will be impeded through
lack of steel. Report on the subject has been given to Mr. Knudsen
with request for his assistance to the end that the importance of trans-
portation be recognized, and an adequate supply of steel be made avail-
able to the railroads and the car and locomotive builders.
A conference is being held Wednesday with representatives of the
trucking industry to enable them to discuss the requirements of truck
transportation so far as equipment is concerned.
A representative of this division is attending & meeting in New
York Wednesday called by the Defense Highway Traffic Committee of that
state to discuss, in cooperation with highway authorities of neighboring
states, the handling of highway traffic during any emergency condition.
414
1230
TRANSPORTATION DIVISION (Cont'd)
WAREHOUSING SECTION
The Warehousing Section is sending an inquiry to all Government pro-
curement officers asking as to their storage requirements up to the end
of June and for a longer period if possible. In this letter full offer
of cooperation in meeting such requirements is made.
The storage situation is gradually tightening in the general terri-
tory east of the Mississippi River to the North Atlantic ports, - New York
to Norfolk, north of the Mason & Dixon Line and south of the Great Lakes.
Especially is this true of the well known transit points. The ware-
housing industry in the interest of increasing the flexibility of movement
and handling is suggesting a broadening of the railroad transit arrange-
monts.
As space becomes more scarce moans should be found to use the western,
northern and southern portions of the country whore there is much idlo
warehouse space. Co-ordinated planning appears to this section to be
urgently needed and should not wait until congestion appears.
Analysis of the May 1st rofrigerated warchouse space figuros secured
by the Department of Agriculture shows widely varying conditions in
different sections. The following fourtoen typical points show the follow-
ing occupancy figures:
Port Cities
& Of Refrigerated Space Occupied
Boston
45%
New York
45%
Philadelphia
51%
Norfolk
69%
New Orleans
60%
Houston
57%
Los Angeles
38%
San Francisco
53%
Portland, Ore. -
8%
Seattle
45%
Interior
Chicago
70%
Minneapolis and St. Paul
70%
St. Louis
86%
Dallas and Fort Worth
61%
In St. Louis froozer space appears to be fully occupied while cooler
space is 80% occupied.
444
1231
TRANSPORTATION DIVISION (Cont'd)
It is readily seon that the trond is to keep the food supplies in
the interior at transit points where they can be readily sont to any part
of the country or any port. Howevor, this commercial practice may not
be always a wise one in connection with foods that may be dostinod for
overseas shipment. At least a sizeable proportion might woll be kept in
warehouses at ports which are known to be used for shipments to England,
Red Sea or China for quick forwarding in casès of emergency changes in
shipping allocations.
Aut
1232
DIVISION OF DEFENSE HOUSING COORDINATION
CONFIDENTIAL
C.F.Palmer
Coordinator
May 28, 1941
Weekly Operations Progress Report
Status of the Defense Housing Program as of May 24, 1941
Status of Projects
No. of Family
Change this
Trailers
Dwelling Units
Week
Housing under allocation
87,260
-
2,309
Under construction contract
62,970
1,490
2,109
Housing completed
12,261
1,604
Progress of Legislation
On May 24, the President signed the bill providing the $150,000,000 Lanham Act
appropriation and $15,000,000 for temporary shelter. This becomes Public Act
No. 73.
Additional Projects Approved by the President
On May 26, the President approved defense housing projects totalling 9,701 units
in 28 localities under Public Act No. 42 (amendment to Lanham Act) and projects
totalling 192 units in five localities under Public Act No. 781.
On May 23, temporary shelter programs for three localities were approved by the
President as follows: Ravenna, Ohio, 100 trailers; Burlington, Iowa, 100
trailers; Paso Robles, California, 74 trailers.
Progress of Homes Registration
Homes Registration Offices have been established and are now in operation in 74
localities. The value of the services performed by these offices is illustrated
in Wilmington, North Carolina where 800 vacant rooms were disclosed. It had
previously been thought that no accommodations existed in that locality.
Addition to the Staff
Frank A. Vanderlip has been appointed Regional Coordinator for Region II. Mr.
Vanderlip was formerly with the Public Buildings Administration.
Status of Surveys
The following reports were received during the week ending May 24:
1233
DIVISION OF DEFENSE HOUSING COORDINATION (Cont'd)
BES Labor Reports (mostly in preliminary or incomplete form): Pontiac, Michigan;
Denver, Colorado; Rockford, Illinois-Beltit, Wisconsin; Newport, Rhode Island;
Jamestown, New York; Akron, Ohio (supplementary); Portland, Maine (supplementary):
Binghamton, New York; Omaha, Nebraska (supplementary); Springfield, Massachusetts:
Canton-Massillon, Ohio (supplementary).
WPA Vacancy Reports: Phoenix, Arizona; Sacramento, California; Atlanta,
Georgia; Chicago, Illinois: Baton Rouge, Louisiana; Meridian, Mississippi;
Toledo, Ohio; Philadelphia, Pennsylvania; Houston, Texas, Wichita Falls,
Texas.
FHA Housing Reports: Mobile, Alabama; Phoenix, Arizona; Benicia, California;
Monterey Peninsula-Salinas, California; San Diego, California (resurvey):
Panama City, Florida; Atlanta, Georgia; Savannah, Georgia; Gary-Hammond,
Indiana; Portland, Maine; Victoria, Texas; Wichita Falls, Texas.
Requests were initiated for BES Labor Surveys in Pittsfield, Massachusetts;
Lacaren-Port Clinton, Ohio; and Orange-Port Arthur, Texas (the last being
an extension of the Beaumont resurvey previously requested); for WPA vacancy
surveys in New Orleans, Louisiana; and Beaumont-Port Arthur: and for a
FHA survey of Portland, Oregon.
444
1234
DIVISION OF STATE AND LOCAL COOPERATION
CONFIDENTIAL
Frank Bane, Director
May 28, 1941
Weekly Operations Progress Report
1. Aircraft observation service
a. The Division developed further arrangements with the G.H.Q. Air
Force for the nationwide aircraft warning service; the defense coun-
cils are to begin work immediately on organization of observation
posts in the Atlantic and Pacific coastal areas and the supplying
of volunteer personnel for work at air corps, filter, and informa-
tion centers.
b. State problems related to the organization of the aircraft warning
service were discussed with the chairman of the Georgia Committee
for National Defense, the Virginia Defense Council (at a meeting in
Richmond), and the Pennsylvania Defense Council: a representative
of the Division is to go to Harrisburg to assist in establishment
of the warning service in Pennsylvania.
2. Community facilities
a. A representative of the Division attended the Senate Committee
hearings on H.R.4545, the revised community facilities bill, on
May 19 and 20.
b. The county superintendent of schools and two other citizens from
Burlington, Iowa, conferred with a representative of the Division
regarding community facilities.
C. The Division was represented at a meeting of Region IV of the
Social Security Board to discuss community facility problems in
Maryland, the District of Columbia, Virginia, North Carolina, and
West Virginia.
d. Representatives of the Division conferred with Mr. Harold Burr,
territorial director for the Social Security Board in Hawaii, regard-
ing acute defense problems, particularly lack of defense housing,
inadequate health department personnel and hospital facilities,
and lack of recreational facilities for defense workers.
3. Protection of defense plants
Representatives of this Division and of the War Department are work-
ing on the problem of defense plant protection.
44
1235
DIVISION OF STATE AND LOCAL COOPERATION (CONT'D)
4. Test campaigns for collection of aluminum scrap
In cooperation with the Office of Production Management, the Division
has developed two test campaigns for the collection of scrap aluminum
one in Madison, Wisconsin, the other in Richmond, Virginia, to be
conducted from May 30 to June 7.
5. "Industrial clinics" on subcontracting
In cooperation with the Defense Contract Service Section, particu-
larly the Group Resources Unit, the Division is developing a plan
for "industrial clinics" in various sections of Ohio and Illinois
under the auspices of the defense councils, with a view to the
extension of subcontracting and the organization of Group Resources
Units in areas capable of handling subcontracts.
6. WPA assistance to defense councils
An agreement has been reached by the Division with the WPA for the
development of a $5,000,000 nationwide project for WPA assistance
to State and local defense councils.
7.
Each State defense council was furnished with a copy of the U. S.
Government Manual, March 1941, edition.
8.
A representative of the Division discussed public personnel problems
at the Eastern Regional meeting of the Civil Service Assembly in
Washington, D. C. on May 19 and 20; another representative of the
Division addressed the annual meeting of the Pennsylvania AAA Motor
Federation at Altoona, Pennsylvania, May 23.
9. Addition to staff
Miss Ethel J. Swing, formerly staff member of the State and Local
Government Section of Princeton University, joined the staff on
May 19 as an assistant to Miss Frederic in the Reports and Studies
Section.
SUMMARY
OF
DEFENSE PROGRESS
BUREAU OF
RESEARCH AND STATISTICS
STACY MAY, CHIEF
ECONOMIC ANALYSIS SECTION
MORRIS A. COPELAND, CHIEF
This summary contains CONFIDENTIAL information effecting the defense
of the United States. Revelation of its contents in any manner to
unauthorized persons is prohibited by the Espionage Act.
CONFIDENTIAL
SUMMARY OF DEFENSE PROGRESS
NUMBER 42
MAY 31, 1941
BRIEFS OF CONTENTS
Page
APRIL RATES OF PRODUCTION of airplanes, of combat
vehicles, and of Army-type guns were each about one
third of their respective scheduled peak production
rates under existing contracts according to newly
constructed indexes of production. April produc-
tion, however, was between 75 and 100 percent higher
than average monthly production during the ten
months since the start of the defense program.
2
OVER 40 PERCENT of the funds appropriated for De-
fense Aid have not yet been allocated to purchasing
departments or agencies. At the end of the first
two months, despite the urgency of the program, only
16 percent of the $752 million authorized for new
facilities had been allocated.
5
WATER-BORNE IMPORTS will have to be reduced to less
than half the 1940 level if limited to present Amer-
ican flag vessels.
7
CIVILIAN AND MILITARY WOOL REQUIREMENTS for fiscal
year 1942 cannot be met by domestic production plus
imports at the current rate. Domestic production is
not expected to meet more than 51 percent of the
total requirements while the shipping situation makes
it difficult to predict the amount of imports.
10
DEFENSE PROGRESS DATA
14
MAY 31, 1941
CONFIDENTIAL
...
CONFIDENTIAL
2
SUMMARY OF DEFENSE PROGRESS
NUMBER 42
MAY 31, 1941
PRODUCTION OF SELECTED DEFENSE EQUIPMENT
E
xisting programs call for the
10 months between July 1940 and
ultimate delivery of 76,000 air-
April 1941, with the result that
planes and some $73 billion of
April production of airplanes was
Army-type guns and combat vehicles
about 75 percent greater than the
to the United States and Great Brit-
10-month average.
ain. In the past 10 months Congress
has provided funds for the purchase
Combat Vehicles. The index
of 61,000 planes, $4 billion worth
of combat vehicle production
of Army-type guns, and $0.5 billion
indicates that April produc-
worth of combat vehicles, but at the
tion was only a third of the sched-
end of April only 41,000 planes,
uled peak production in January
$1.5 billion guns, and $0.3 billion
1942. April production, however,
combat vehicles had been ordered.
was more than twice average produc-
tion during the past 10 months, pri-
Newly constructed index numbers
marily due to the rapid progress of
comparing April production, average
the light scout car program. Pres-
production per month during the
ent schedules for these light scout
first 10 months of Fiscal Year 1941,
cars will be completed by the end of
and scheduled peak production under
June 1941.
existing orders for these three ma-
jor items are shown in the accompa-
Guns. The index of produc-
nying chart. Separate indexes are
tion of Army-type guns in
provided for airplanes, Army guns,
April was the lowest, rela-
and combut vehicles. Indexes of
tive to the peak (February 1942), of
Fiscal Year 1940 production of mili-
the three indexes. Production dur-
tary airplanes, Army guns, and com-
ing this month was only 30 percent
bat vehicles are not shown since
of the scheduled peak production but
production was too small to be sig-
was twice the average monthly pro-
nificant.
duction since July. The index for
Army-type guns includes all guns
Each index represents the num-
produced for the U. S. Army (exclu-
ber of units produced, adjusted to
sive of airplane ordnance), field
take account of the importance of
artillery and small arms for "De-
the different types of planes, guns,
fense Aid", and guns purchased by
and vehicles. all
the Army for the Navy.
Airplanes. The airplane
Similar indexes are now in the
index will reach a peak in
process of computation for the naval
August 1942 under existing
ship program, merchant ship program,
contract schedules. At present, the
and for defense construction. These
production index is one-third of the
indexes and indexes covering other
peak rate. However, there has been
details of the program will be pre-
an increase in production during the
sented in subsequent issues.
MAY 31, 1941
CONFIDENTIAL
2
NUMBER 42
CONFIDENTIAL ... 3
INDEXES OF
PRODUCTION OF AIRPLANES, COMBAT VEHICLES, AND GUNS
PER CENT
PER CENT
100
100
90
90
80
80
-70
70
60
60
50
50
40
40
30
30
20
20
10
10
o
0
o
Jul:Apr. Apr. Peak
Jul-Apr. Apr. Peak
Jul-Apr. Apr. Peok
Avge.
Aug.42
Avge.
Jan.42
Avge.
Feb.42
MILITARY AIRPLANES COMBAT VEHICLES
ARMY GUNS
MAY 31, 1941
CONFIDENTIAL 3
NUMBER 42
CONFIDENTIAL ... 4
a Military airplanes are in terms of numbers produced, adjusted for the sise of the plane. Oun production 10 adjusted for the
range, rapidity of fire, and weight of projectile of each type gun. Adjustment has been made for modernization or modifica-
tion or existing areasent which is usually an easier production problem than production of nev equipment. Combat vehicles
production is adjusted for the sise and weight of the different types of vehicles.
The table below indicates the weights used in computing the three index numbers:
TIPE OF EQUIPMENT
WEIGHT
TIPS OF EQUIPMENT
WEIGHT
MILITARY AIRPLANES
75 - Own
-
333
75 - Howitzer
308
4-Engine Bomber
4
81 as Mortar
16
2- & 1-Engine Bomber
2
60 as Mortar
8
2-Engine Pursuit
2
37 - Gun, Anti-tank
77
1-Engine Pursuit
1
37 as Gun, Anti-airoraft
339
Other Tactical
1
37 as Own, Tank
13
Training Plane
1
.50 cal. NO, AA
98
.50 cal. NO
94
.30 cal. NO
17
ARMY GUNS
.30 cal. NO (modification)
8
.45 cal. Sub-MO
12
8" Oun
2,269
Rifle, KL
3
6° Howitzer
925
240 as Howitzer
1,357
155 - Oun
800
COMBAT VEHICLES
155 na Gun (modification)
212
155 - Howitzer
110
Heavy Tanks
50
105 - Howitzer
1,015
Medium Tanks
30
90 - Oun, AA
1,316
Light Tanks
13
3° Oun, AA
647
Scout Care
6
Personnel Carriers
9
MAY 31, 1941
CONFIDENTIAL
...
4
NUMBER 42
CONFIDENTIAL ... 5
THE STATUS OF THE DEFENSE AID PROGRAM
O
ver 40 percent of the funds
United States agencies for purchas-
appropriated for Defense Aid
ing the equipment or supplies au-
have not yet been allocated to
thorized in the Lend-Lease Act.
purchasing departments or agencies,
As can be seen in Table 1, very
although it is now two months since
small progress had been made up to
the Lend-Lease Act was approved.
May 15 in allocating funds for one
However, the individual agencies to
of the most important items - new
which funds have been allocated,
industrial facilities. Up to that
TABLE 1 - ALLOCATIONS OF FUNDS FROM DEFENSE AID ACT
AS OF MAY 14, 1941
Total
ALLOCATIONS TO AGENCIES
au-
Object
thor-
Mari-
ized
time
Funds
Total
War
Navy
Comm.
Treas.
Agric.
(MILLION DOLLARS)
Ordnance
1,343
896
641
255
-
-
I
Aircraft
2,054
1,904
1,802
99
3
Tanks & Vehicles
362
290
290
-
-
Vessels
629
541
-
41
500
Misc. Military
260
119
103
12
-
4
-
Ind. Facilities
752
122
23
49
50
Agric. Commod.
1,350
228
2
51
-
134
41
Testing & Repair
200
29
4
21
4
Expenses
40
3
3
-
-
Administr.
10
-
-
-
-
Total
7,000
4,132
2,868
528
554
141
41
have not delayed in making con-
time only $122 million (16 percent
tracts and commitments.
of the total) of the $752 million
authorized for new facilities had
On May 15, despite the urgency
been allocated. Between May 15
of the program, only $4.1 billion
and May 21 an additional $10 mil-
of the available $7 billion had
lion was allocated for the follo-
been allocated to the War, Navy,
wing purposes: $4 million for
Maritime Commission, or other
facilities, making the total allo-
MAY 31, 1941
CONFIDENTIAL ... 5
NUMBER 42
CONFIDENTIAL ... 6
cated by May 21, $126 million and
supplies and equipment, or the
$5 million additional for vessels
construction of facilities, had
making the total allocation
either been placed under formal
$229 million.
contract or were covered by
letters of intent. Small remain-
Reports from the Army and the
ing balances are being held free
Maritime Commission reveal that on
for spot purchases of supplies or
May 15, between 95 and 100 percent
for repairs to existing equip-
of the funds allocated to these
ment. Similar information is not
agencies for the purchase of
yet available for the Navy.
MAY 31, 1941
CONFIDENTIAL
6
NUMBER 42
CONFIDENTIAL
7
ESTIMATED IMPORT CAPACITY OF AMERICAN FLAG VESSELS
FOR CARRYING DRY CARGO IMPORTS
f the United States should be com-
however, is available for carrying
pelled to carry all its imports in
all the required strategic and crit-
American flag vessels, there would
ical defense materials, and about
be a shortage of shipping capacity
half of the essential items. During
which would necessitate reducing to-
1940 a total of 26,000,000 long tons
tal water-borne imports by more than
of dry cargo was imported into the
50 percent below the 1940 tonnage.
United States, of which only 9,700,000
Sufficient American - flag tonnage,
tons or 36.8 percent was carried by
TABLE 1 - ESTIMATED IMPORT CAPACITY OF AMERICAN FLAG DRY CARGO VESSELS
& REQUIREMENTS FOR IMPORTED STRATEGIC, CRITICAL AND ESSENTIAL MATERIALS
IMPORTS
APPROXIMATE
REQUIRED IMPORTED
OF DRY
ANNUAL IN-
MATERIALS
CARBO
PRESENT AREA
APPROXI-
PORT CARRYING
1941
CARRIED
OF OPERATION
MATE DRY
TURN-
CAPACITY OF
BY AMER.
CARGO TON-
AROUNDS
DRY CARGO
FLAG
NAGE IN
PER
FLEET ON
STRATEGIC
VESSELS
TRADE A
YEAR
PRESENT ROUTE
&CRITICAL
ESSENTIAL
TOTAL
1940
THOUSAND
LONG TONS
(THOUSAND LONG TONS)
LATIN AMERICA:
A. EAST-WEST COASTS
465
5 - 6
2,300 - 2,800
2,000
3,300
5,300
3,300
B. NEARGY &
396
12 - 15
4,800 - 5,900
1,800
2,400.2
4,300
3,500
FAR EAST
920
21/2-3
2,300 - 2,800
2,400
2,100
4,500
1,700
EUROPE
34
4 1/2-6
150 - 200
250
560
810
500
AFRICA
380
21/2-3
950 - 1,100
1,300
90
1,390
700
TOTAL
2,195
10,500 -12,800
7,750°
8,450
16,200
9,700
AROUND WORLD TRADE
113
A FREIGHTERS ONLY: ONE-THIRD THE GROSS TONNAGE ADDED TO APPROXIMATE DEAD WEIGHT OR LONG TON-
NAGE. THE ESTIMATED CARRYING CAPACITY 18 BASED ON NUMBER AND OVERALL SIZE OF VESSELS IN
EACH TRADE AS SHOWN BY THE MARITIME COMMISSION'S REPORT No. 300, MARCH 31, 1941.
1 INCLUDES CENTRAL AMERICA, CARIBBEAN AREA, NORTH COAST OF SOUTH AMERICA AND NEWFOUNDLAND,
CANADA, AND MEXICO. ASSUMING THAT A LARGE PART OF THE CANADIAN AND MEXICAN TRADE CAN BE
CARRIED BY RAIL, THE REQUIREMENTS FROM THOSE COUNTRIES HAVE BEEN OMITTED.
ln INCLUDES COPPER AND NITRATES WHICH WERE DESIGNATED AS CRITICAL MATERIALS BY PUBLIC NO.664,
76TH CONGRESS.
MAY 31, 1941
CONFIDENTIAL
7
NUMBER 42
CONFIDENTIAL
8
American flag vessels.
The shipping shortage indicated
by the table, is probably under-
Table 1 shows, by trade areas,
stated because the calculated carry-
the required imported tonnage of
ing capacity of American-flag ves-
strategic, critical, and essential
sels is based on a full load for
materials for 1941, the estimated
each voyage, more or less on a port
capacity of American flag freighters
to port (bilateral) call. In prac-
for carrying dry cargo imports, and
tice, much ocean shipping is indi-
the total tonnage of dry cargo in-
rect, or of a triangular nature, the
ports carried by American flag ves-
vessels frequently returning to the
sels in 1940.
home port partially loaded.
The table indicates that there
Moreover, during the first
is an excess carrying capacity for
quarter of 1941 only 17 percent of
overseas cargo of 2700, to 5,000,000
the required tonnage of strategic
long tons over the required tonnage
and critical materials were imported
for strategic and critical materi-
into the United States, although a
als. The estimated requirements in-
considerably larger percentage of
clude some 2,000,000 long tons to
some of the essential materials,
complete governmental stockpiles
such as coffee, were imported during
during 1941, and additional tonnage
the corresponding period. In order
to meet all industrial needs for the
to obtain vital defense materials
year. When essential materials are
official priorities, as anticipated
included in the requirements, there
in the Bland Bill, which has already
is a calculated overall shortage of
passed the House, will be invoked.
from 3,400,000 to 5,700,000 long
tons for the calendar year 1941.
A further possible adverse fac-
tor may be introduced into the situ-
British, Norwegian, Greek, Pan-
ation by sinking losses.
amanian, and other flag vessels car-
ried 63 percent of the total im-
ported tonnage in 1940. If no for-
There are some factors, how-
eign tonnage were to be available
ever, which may tend to remedy the
after June 30, 1941, there would be
deficiency aspects of ocean ship-
a deficit of the order of 4 to 6
ping. First, some additional space
million tons for the fiscal year
in American-flag vessels may be pro-
1941-1942.
vided by the 113,000 long tons which
represent 14 freighter vessels
operating in "around the world"
The only trade area in which
trade during the first quarter of
there is excess capacity for the
1941. The annual carrying capacity
three categories of materials com-
of these 14 vessels is sufficient,
bined is nearby Latin America. Part
if placed in the African trade ap-
of the indicated excess in this area
proximately to supply the indicated
arises from the omission of Canada
deficiency of that area. Second,
and Mexico on the requirements side,
some tonnage of strategic, critical
on the assumption that the bulk of
and essential materials may be car-
materials from these areas can be
ried by combination passenger and
transported by land. All other trade
freight vessels which are not in-
areas indicate a serious shortage of
cluded in the tabulation. Third,
shipping for the combined materials.
some overseas tonnage may be sup-
plied by transfer of domestic coast-
MAY 31, 1941
CONFIDENTIAL
8
NUMBER 42
CONFIDENTIAL ... 9
wise vessels to foreign trade.
Fourth, the launching of new vessels
and foreign tonnage, tied up in
American waters, will supply some
additional shipping for imported de-
fense materials. Fifth, the essen-
tial materials constitute more than
50 percent of the total of the re-
quired tonnage of the three categor-
ies of materials in 1941. There are
various degrees of importance among
the materials classified as essen-
tial, and some space may be con-
served through the elimination of
the "less essential" items. The 68-
sential materials with the tonnage
required in 1941, are as follows:
Essential
Required long
Materials
tons 1941
Sugar
2,600,000
Iron Ore
2,500,000
Coffee
890,000
Coke
535,000
Zinc Concentrates
297,000
Coconut 011 & Copra
250,000
Burlap
238,000
Other
1,140,000
Total
8,450,000
Sixth, total imports of dry cargo
into the United States amounted to
26,000,000 long tons in 1940, of
which 63 percent was carried by for-
eign flag vessels. This total in
1940 was 10,000,000 tons, over and
above the tonnage requirements for
strategic, critical, and essential
materials in 1941, and is composéd
of thousands of items, such as lum-
ber, salt, long staple cotton, fer-
tilizer materials, not encompassed
in any category of defense materi-
als. In an official priorities sys-
tem, a large proportion of this ton-
nage devoted to other than defense
materials may be eliminated.
MAY 31, 1941
CONFIDENTIAL 9
NUMBER 42
CONFIDENTIAL
10
WOOL: ESTIMATED REQUIREMENTS AND SUPPLY
1941 and 1942
T
he civilian and military wool
production for fiscal years 1941 and
requirements for fiscal year
1942.
1942 cannot, it is estimated, be
The domestic capacity to pro-
met by domestic production plus im-
duce wool cannot be substantially
ports at the current rate. Although
increased in less than two years,
the United States is one of the
though some increase could, in case
principal wool-growing countries in
of emergency, be effected in one
the world, domestic production in
year. To increase the number of
fiscal year 1941 is expected to meet
sheep (wool capacity) substantial
only about 55 percent of total re-
price increases for both wool and
quirements; and in fiscal year 1942
lamb must be offered as inducements
18 not expected to meet more than 51
to sheep growers. Prices of wool
percent of the total requirements on
and lamb would have to be consider-
the basis of a 1.9 million-man army;
ably higher than at present and give
TABLE 1 - UNITED STATES REQUIREMENTS AND PRODUCTION OF WOOL
Production
Requirements
United States
as Percent
Year
Civilian
Military
Total
Production
of
Requirements
(Million Pounds)
FY 1941
620a
244
864
476
55
FY 1942 (1.9 million-
man army)
670b
259
929
485
51
FY 1942 (2.8 million-
man army)
670b
464
1,134
485
43
& Based on estimated national income of $80 billion dollars.
b Based on estimated national income of $90 billion dollars.
and only 43 percent of the total re-
promise of remaining higher for some
quirements on the basis of & 2.8
time before sheep raisers could be
million-man army. If plans should
induced to bring about any signifi-
be laid for a 4 million-man army,
cant increase in their flocks. While
estimated wool production could not
the possibility of increasing the
account for more than one-quarter of
number of sheep grown in the United
the total fiscal year 1942 require-
States warrants further consider-
ments.
ation, particularly with respect to
Table I and Chart 1 show the
how such an increase could be induced
estimated civilian and military re-
in an emergency, no substantial in-
quirements and the United States
crease in the United States wool
production may be reasonably ex-
MAY 31, 1941
CONFIDENTIAL
10°
NUMBER 42
CONFIDENTIAL ... II
pected in the near future. Hence,
dealers stocks are to be maintained
deficiencies of wool must as usual
at the level of the past few years,
be provided by imports.
an additional 250 million pounds
must bé imported. If the military
In fiscal year 1941, United
requirements should be raised to
States imports are estimated at 402
provide for a larger armed force,im-
million pounds. Imports in 1942 will
ports may have to be increased sub-
have to be a minimum of 432 million
stantially. Imports necessary to meet
pounds if requirements for a 2.8
these requirements, assuming stocks
million- man army are considered.
of 250-million-pounds, are shown in
Moreover, if, during this period,
Table 2 and Chart 2.
TABLE 2 -APPAREL WOOL: DEFICIENCY OF UNITED STATES SUPPLY OF WOOL
DURING FISCAL YEARS 1941 AND 1942 AND ESTIMATED MINIMUM IMPORTS
REQUIRED TO MEET DEFICIENCY DURING FISCAL YEAR 1942
(million pounds - - greasy shorn equivalent)
FY 1942
FY 1941
FY 1942
(if P.M.P. 1942
(1,900,000
Augmented to
Man Army)
2,800,000 Men)
Total National Requirements
864
929
1,134
Civilian
620
670
670
Military
244
259
464
Estimated Supply
U. S. Production
476
485
485
Stocks, March 30, 1940
196 a
217 b
217 lb
Total U. S. Supply
676
702
702
Deficiency of U. S. Supply
192
227
432
Estimated Imports during
1941
402
Surplus
210
Minimum Imports Required To
meet deficiency
227
432
To meet deficiency and
provide for stock of
250 million pounds
477
682
& Official data-Department of Commerce as of June 29, 1940; does not in-
clude stocks of British-owned wool in warehouses.
b Computed surplus fiscal year 1941, allowing for imports during fiscal year
1941.
MAY 31, 1941
CONFIDENTIAL ...
II
NUMBER 42
CONFIDENTIAL ... I2
Supplies in the leading export
CHART 2 - - ESTIMATED DEFICIENCY
countries are abundant, and the po-
IN DOMESTIC WOOL SUPPLY
tential capacity of foreign areas to
(Greasy Bosis)
supply United States requirements
FISCAL YEAR 1942
has been enhanced by the loss of
MILLION POUNDS
700
their outlets for about one billion
pounds in the European market be-
Imports to maintain
cause of the British blockade. There
250 million pound stock
600
Imports to meet
may, however, be a real problem
minimum requirements
in obtaining ships to handle the
greatly increased imports needed for
500
the expanding requirements.
400
300
CHART I- ESTIMATED REQUIREMENTS
200
AND SUPPLY OF WOOL
(Greasy Bosis)
FISCAL YEARS 1941 AND 1942
100
MILLION POUNDS
1400
Requirements:
Estimated Supply
o
Military
imports
1.9 Million
2.8 Million
Civilian
Stocks on hand
1200
Mon Army
Mon Army
U.S. Production
1000
800
600
400
200
By December 31, 1941, it is ex-
pected that all wool under the terms
of the Australian Wool Agreement
o
Require- Est
1.9
2.8
Est.
will have been delivered to the
ments Supply
Million Mon Army Domestic
United States. The completion of
FY 1941
Requirements Supply
F.Y.1942
these deliveries will provide a
stockpile of 250 million pounds, --
equivalent to our average annual
carry-over.
According to the terms of the
original wool agreement, this wool
was to have been delivered in the
United States by June 30, and it was
MAY 31, 1941
CONFIDENTIAL ... 12
NUMBER 42
CONFIDENTIAL
13
to have been delivered in British
It becomes increasingly clear
bottoms. British ships, however,
that all of the demands upon ship-
have not been able to make these de-
ping for strategic, critical, and es-
liveries, and, as a consequence,
sential materials are not likely to
United States lines have carried
be met. If they cannot be met, the
most of the wool. If wool require-
only alternative for meeting the
ments are increased to satisfy the
military requirements of wool is
needs of a 2.8 million-man army, this
through an immediate reduction in
will put further strain upon the ex-
civilian consumption. If this shift
isting shipping facilities.
is likely to be necessary, plans for
the shift should be made at once.
MAY 31, 1941
CONFIDENTIAL
13
NUMBER 42
CONFIDENTIAL
...
14
DEFENSE PROGRESS SERIES
1940
1941
Agency and Object
Tleek Ending
July
January
March
April
May 17
May 24
TOTAL JNITED STATES DEFENSE PROGRAM* b
UNITED STATES ARMED FORCES of
(Thousands, officers and enlisted men)
Aray
289
693
1,004
1,211
1,321
Navy and Marine Corps
2 196
M 271
293
2 296
Total active strength
2 485
£ 964
£ 1,297
1,507
FINANCIAL PROGRAM
(Million dollars to date)
Total authorised program d
14,968
26,663
35,470
39,771
239,771
239,771
Total contracts + payroll
2 3,379
P 15,514
2 18,127
2 19,710
23,773
Total cash disbursements
571
4,084
5,969
7,047
2 7,660
AGENCIES
U. S. MILITARY
ARMY - Program
2,620
8,377
9,239
13,135
13,135
P 13,135
Contracts + payroll
582
5,951
7,091
7,334
7,801
Cash disbursements
78
1,241
2,209
2,768
NAVY - Program ₫
9,425
11,127
11,530
11,825
13,633
₽ 13,633
Contracts + Payroll
1,515
6,009
7,213
7,629
7,840
Cash disbursements
84
1,021
1,480
1,771
TOTAL- Program
12,045
19,504
20,769
24,960
26,768
26,768
Contracts + payroll
2,097
11,960
14,304
14,963
15,641
Cash disbursements
162
2,262
3,689
4,539
DEFENSE AID (Lend-Lease)
Program
7,000
7,000
7,000
7,000
Allocations a
n.o.
n.o.
P 4,132
Contracts Y
n.n.
n.n.
2 3,373
Cash disbursements
o
o
P1
BRITISH PURCHASES
Program
Contracts
1,282
3,426
3,649
3,710
23,710
Cash disbursements
396
1,538
1,824
1,928
MARITIME COMMISSION 2
Program 1
840
840
1,154
1,154
1,154
21,154
Contracts
n.a.
n.a.
n.a.
810
la 810
Cash disbursements
8
83
107
121
DEFENSE HOUSING PROGRAM
Program
o
325
330
330
330
344
Contracts 1
o
128
174
227
239
245
Value in place
o
n.a.
n.a.
n.a.
n.s.
n.a.
Cash disbursements
0
n.a.
n.a.
n.a.
n.a.
n.a.
OTHER AGENCIES &
Program
801
2,568
2,568
2,617
Cash disbursements
5
201
348
455
* Data are as of the close of the month or wook or nearest available date.
2 Preliminary data
I Revised data
n.a. Data not available
(Continued on next page)
MAY 31, 1941
CONFIDENTIAL ... 14
NUMBER 42
CONFIDENTIAL
15
1940
1941
Object
Week Ending
July
January
March
April
May 17
May 24
AIRPLANES, ENGINES, ETC.
(Million dollars to date)*
Program
1,564
4,476
6,711
8,132
8,248
2 8,248
Contracts
889
3,852
4,069
4,172
4,291
Cash disbursements
n.a.
778
1,076
1,262
NAVAL SHIPS & PARTS
Program
5,765
6,005
6,288
6,348
6,736
2 6,736
Contracts
1,207
4,500
4,500
4,527
4,543
Cash disbursements
29
321
440
506
MERCHANT VESSELS
Program
848
984
1,929
1,939
a 21,939
21,939
Contracts
n.a.
n.a.
n.a.
n.a.
n.a.
Cash disbursements
n.a.
151
186
205
ORDNANCE
Program
2,805
4,707
6,530
7,754
8,120
28,120
Contracts
367
2,491
3,437
3,725
3,939
Cash disbursements
n.a.
460
641
767
OTHER EQUIPMENT
Program
640
1,974
2,712
3,037
3,038
R 3,038
Contracts
434
1,808
2,000
2,064
2,120
Cash disbursements
n.a.
1,014
1,434
1,687
PAY, SUBSISTENCE, & OTHER SERVICES
Allocated funds
1,834
3,846
4,768
4,988
5,668
2 5,668
Cash disbursements
n.a.
598
870
1,026
1,112
ACCND STOCKPILE PROGRAM
Stockpile program
390
485
485
485
485
485
Purchases under program
50
237
312
325
328
328
Purchases in excess of program
0
39
76
76
85
128
Deliveries
26
106
133
149
154
157
CONSTRUCTION
INDUSTRIAL FACILITIES
Program
395
2,437
3,370
3,965
3,965
23,965
Contracts
110
1,397
1,724
1,749
2 1,933
Value in place
n.a.
n.a.
n.a.
n.a.
n.n.
Cash disbursements
n.a.
243
381
490
POSTS, DEPOTS, HOUSING
Program
727
1,749
2,677
3,123
3,420
23,420
Contracts
230
929
1,590
1,711
1,734
Value in place
n.a.
n.a.
n.a.
n.a.
u.s.
Cash disbursements
10
519
941
1,104
#
Data are as of the close of the month or week or nearest available date.
2 Preliminary data
I Revised date
n.a. Data not available
(Continued on next page)
MAY 31, 1941
CONFIDENTIAL 15
NUMBER 42
CONFIDENTIAL
16
1940
1941
Object
Week Ending
July
January
March
April
May 17
May 24
CERTIFICATES OF NECESSITY A.PROVED AND PENDING
(Million dollars to date)*
Total applications
1,034
1,113
1,232
Approved, private funds
628
£ 702
747
Approved, public funds
187
E'194
200
Pending
217
213
281
DEFENSE HOUSING 1
(Number of housing units)
Fund allocations
56,528
80,183
86,361
96,286
96,560
Construction contracts
36,191
48,416
60,293
68,866
70,630
Construction completed
1,314
5,424
9,024
10,712
13,011
PRIORITY CERTIFICATES & EXTENSIONS ISSUED
(Number)
Total
75,709
131,208
186,235
200,258
Series
ECONOMIC ACTIVITY RELATED TO DEFENSE
INDUSTRIAL ACTIVITY
(Indexes)
Durable afrs.
(1935-9-100) 5
112
121
127
130
Nondurable afrs.
(1935-9=100) 2
132
170
170
166
Total industrial prod. (1935-9-100) 5
121
139
143
139
Durable inventories (12/31/38=100) 2
111.9
129.7
132.1
Nondurable inventories (12/31/38=100) 2
106.4
111.2
111.9
BLS PRICE INDEXES
(Indexes)
Strategic materials (8/39=100)
123.8
E 126.1
131.9
135.9
E 139.2
139.0
Critical materials
(8/39-100)
107.6
111.5
E 112.0
112.4
112.8
113.6
Basic commodities
(8/39=100) of
108.3
I 120.5
E 129.7
136.9
143.9
144.3
Machine tools
(8/39=100)
108.7
114.6
115.1
116.4
I 143.5
All commodities
(1926=100)
77.7
80.8
81.5
E 83.2
84.6
85.0
NICB COST OF LIVING INDEX (1923=100)
85.7
86.0
86.3
86.9
FEDERAL DEBT
(Billion dollars, end of month)
Net public debt 1
41.5
43.9
44.4
44.8
NATIONAL INCOME
(Billion dollars, annual rate)
Total income payments
73.3
79.4
80.3
EMPLOYMENT 3
(Thousand men)
Private, major defense industries 1
E 315
E 882
I 966
E 976
Public defense 1
E 121
E 198
E 211
E 208
Total direct defense
E 436
E 1,080
I 1,177
El 1,184
(Date nearest
15th of month)
Total civil nonagricultural
35,454
2 36,621
E 37,227
2 37,617
W. P. À. employment 4
1,659
1,834
1,764
1,607
1,497
(1,474
UNEMPLOYMENT (NICB Estimate)
(15th of month)
Number of unemployed
8,566
7,367
6,142
LABOR DISPUTES 3
(Monthly figures)
Number of strikes in progress
290
I 322
1 475
590
Workers involved (thousands)
76
108
2 165
555
Man days idle (thousends)
552
E 662
1,400
7,800
Strikes beginning in month
182
E 213
330
400
2 Preliminary data
I Revised data
n.a. Data not available
* Data are as of the close of the month or week or nearest available date.
(Continued on next page)
MAY 31, 1941
CONFIDENTIAL
...
16
NUMBER 42
CONFIDENTIAL ... 17
Defense Progress Data
New and Revised Footnotes
The regular footnotes to Defense Progress Data appear on pages 23-4 of Is-
sue 41.
4 Weekly figures are as of May 14 and May 21.
5 Federal Reserve Board seasonally adjusted indexes.
v Contract awards made by the War and Navy Departments and Maritime Commis-
sion,and letters of intent issued by the War Department and Maritime Com-
mission. No data are available on Navy Department letters of intent.
k The commodities in excess and the value of their excess purchases were:
antimony, $3 million; manganese, $44 million; quinine, $.5 million; and
tungsten, $80 million.
& Includes employment in aircraft, shipbuilding, machine tools, aero-en-
gines, aluminum, explosives, and construction. Figures are for payroll
nearest the 15th of the month.
31 Civilian employment in arsenals and navy yards, on force account con-
struction, and on WPA construction. Figures represent average weekly
employment during the month.
le Allocations of funds to purchasing agencies or departments.
MAY 31, 1941
CONFIDENTIAL 17
NUMBER 42
CONFIDENTIAL ... 18
CHART I - ENACTED DEFENSE PROGRAM *
AND CONTRACT AWARDS FOR DEFENSE PURPOSES
JUNE II, 1940 - MAY 15, 1941
BILLION DOLLARS
BILLION DOLLARS
40
40
35
35
30
30
25
25
20
20
PROGRAM
15
15
10
10
CONTRACTS + PAYROLL
5
5
CASH DISBURSEMENTS
o
o
JUN. JUL AUG. SEP OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY
1940
1941
*
Army, Navy, Defense Aid and British Programs
MAY 31, 1941
CONFIDENTIAL ... 18