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178295348
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White House Press Release
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178295348
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16
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1947-07-16
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1947
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2778 #1229 IMMEDIATE RELEASE JULY 16, 1947 The Assistant to the President has roquested the Reconstruction Finance Corporation to continue for an interim period the sale of fibors in accordanco with previous allocation patterns. This was dono in order to assure unintorrupted production of bindor and baler twine. The text of the lettor follows: July 15, 1947 My dear Mr. Goodloe : Tho Second Decontrol Act of 1947, which the Prosident signed today, doos not provide for the continuation of allocation controls on sisal and honequon fibers. Those controls, thoroforo, expiro tomorrow. With the expiration of these controls, the allocating of RFC receipts of these fibers by the Office of Materials Distribu- tion of the Department of Commerce will also terminato. In view of this determination by the Congress, it would not be aporopriate to continue indefinitely the distribution of these government-held fibers upon the basis used whilo controls wore in TRUMAN effect. I am advised, however, that because of the shortages of those fibers, the cordage mills are operating virtually without working inventories. Any cessation in regular shipments to mills, caused by a sudden shift from sale in accordance with the OMD al- locations to compotitive bid sale, would scriously disrupt production in the cordage mills thus affected, with consequent unemployment and losses of urgently neoded cordago. It is important that the transi- tion from sale by allocation to sale by compotitive bid be such that these unfortunate consequencos not ensuo. I therofore request the RFC to continue to soll in accordance with the OMD allocation pattern for an intorim period. During this interim poriod, the RFC should develop such procodures as are practical for making forward sales of fiber yet to be delivered undor RFC contracts, so that purchasos may be made in time to plan inventories and operations, thus avoiding interruptions in produc- tion. I leavo it to your jud gment to determine the length of this intorim period, but it should be no longer than is required to accomplish a smooth transition to competitive salo. Sincerely, JOHN R. STEELMAN Assistant to the President The Honorable John D. Goodloe, Chairman of the Board Roconstruction Finance Corporation.