War Production Board - "War Progress:", August 6, 1943 - October 30, 1943

PRESIDENT'S SECRETARY'S FILE Subject File War Production Board: "War Progress":8/6-10/30/43 Box 173 The President a WAR PROGRESS Confidential (British Secret) 17982 a Laws, and 29 w 1973 5 W n MAR Airplane Production In July Scorecard On Merchant Shipping Number 151 August 6, 1943 CONFIDENTIAL NUMBER 151 WAR PROGRESS AUGUST 6, 1943 Plane Production Slow to Rally July output is only 4% ahead of June, and of the year to date: 17%. The dis- June was 3% ahead of May. Causes gen- crepancy from the July 15 revision, W-5, erol: Vacations, weather, obsenteeism, was 12%. In only onemonth this year- design changes, labor shortages. May-has the deficiency been less than 10%: AIRPLANE ACCEPTANCES last month again Even more important than the defi- registered only a small gain. According ciency from schedule is the inability to the W-4 schedule, in effect on the of airplane production to rally more first of the month, production should sharply from last month's modest gain. have passed the 8,000-per-month mark. In the past, a "slow" month has invar- But only 7. 326 planes (excluding special iably been followed by a fairly sharp aircraft such as targets and Drones) upswing (chart, page 1). This has gen- were accepted. This was 268 planes— erally been because particular plants 4%-higher than June. On an airframe- or perticular types of troubles caused weight basis, the gain was also 4% and a relapse, and then, when these were only a shade higher than the June in- corrected, acceptances recoiled upward. crease over May, which was 3%. The faltering gainlastmonth, relative to June, follows the recent pattern of 12% UNDER W-5 war production generally, and perhaps The July lag behind the first-of- suggests anoverall industrial fatigue. the-month schedule (W-4) was the greatest Monthly gains, since last December, AIRPLANE OUTPUT GAINS ALTITUDE-BUT SLOWLY Acceptances lag for behind first-of-month schedules, and month-to-month increases diminish. 100 100 +25 +25 Airplane Production % Change from Preceding Month (Airfrome Weight Bosis) +20 +20 80 80 +15 +15 AIRFRAME WEIGHT-MILLIONS OF POUNDS Schedule 60 60 AIRFRAME WEIGHT- MILLIONS OF POUNDS % CHANGE FROM PRECEDING MONTH +10 +10 +5 +5 40 40 o 0 % CHANGE FROM PRECEDING MONTH Actual -5 -5 20 20 -10 -10 0 0 -15 -15 JFMAMJ J A S D F M AM IJJASOND J F M A M J J A S 0 N 0 J F MAMJJ 1942 1943 1942 1943 WAR PROGRESS CONFIDENTIAL 2 CONFIDENTIAL WAR PROGRESS are as follows (airframe weight basis): numerically over July and a 26% gain in airframe weight. x Change from Debut of the month was the superheavy- Preceding Month weight, long-range pomber. Seven were January -13% accepted at Boeing's Wichita plant. Orig- February +18 inal delivery been scheduled for March March +15 but there were engineering ifficulties. April +11 These planes are powered by four engines May +10 of 2,250 hp each, weigh almost twice as June +3 much as the Flying Fortress and can July +4 travel about twice as far. (Fortress engines deliver 1,200 hp.) Hot weather, vacations, absenteeism, Other debuts were: design changes, and manpower shortages The fast-flying Lockheed Constella- again combined to slow production during tion (C-69) "luxury liner" transport July. There were also the customary plane, witha gross weight almost three explanations of components difficulties, times that of the Douglas DC-3, still materials shortages, assembly-line al- the dominant transport. terations, and rejections by the serv- The long-awaited Northrop P-61, a ices. But by and large, labor diffi- twin-engined night fighter with a high culties-of one type or another-were ratio of power to weight. blamed formost of the failures to come As a group, bomber acceptances ran up to schedule. at the same level and 19% behind sched- ule (table, page 4). Flying Fortresses SUPERHEAVYWEIGHT DEBUT and Liberators were up 11%, completing Though production sights were lowered six months of successive new highs. slightly in the W-5 schedule released Nevertheless, they lagged 11% behind late last month (WP-July30'43,p5), the the W-4 schedule: indeed, these heavy immediate outlook for meeting schedule bombers have been falling farther and is anything but promising. Monthly farther behind the goals set for them goals are still high. Thus, August (chart, page 31. calls for 8,618 planes-an 18% increase LIBERATORS OUTRUN FORTS IN THIS ISSUE: As in June, Flying Fortress output was reduced by labor problems at Boeing PLANE PRODUCTION SLOW TO RALLY. 1 in Seattle; and at Ford, Willow Run, KEY STATISTICS OF THE WEEK 4 Liberators again were held back by in- U.S. MERCHANT SHIP OUTPUT DROPS IN JULY 5 stallation of a new chin, turret. But SCORECARD ON MERCHANT SHIPPING 6 for the third month in a row, produc- DILEMMA IN NONFERROUS METALS 7 tion of Liberators exceeded that of MICA: MOTHER OF MOTION 10 Flying Fortresses-441 to 379. This is WAR PROGRESS NOTES 12 according to plan; by the end of the RETAIL SALES UP, INVENTORIES DOWN 13 year, output of B-24s should be outnum- REPORTS ON REPORTS 14 bering B-17s almost 2-to-1. SELECTED MONTHLY STATISTICS 14 All major groups bettered their June PRODUCTION PROGRESS (AIRCRAFT AND AIR - CRAFT MUNITIONS) 15,16 performances, with the exception of trainers and naval reconnaissance planes; CONFIDENTIAL AUGUST 6, 1943 CONFIDENTIAL. 3 THE BOMBERS, THE FIGHTERS, AND THE TRANSPORTS Production manages to move up, but not so fast as schedules. 1. Heavy bombers are rising shorply, 2. Production of medium bombers has though falling farther behind schedules. been erratically up. 1500 1500 800 800 Units Units Istof-month" Ist-of-month* Schedules Schedules 600 600 1000 1000 400 400 500 500 200 200 Actual Actual NUMBER OF PLANES o 0 NUMBER OF PLANES o o 1942 1943 1942 1943 NUMBER OF PLANES 3. Output of light 2-engine bombers 4. Light I-engine bombers have hit a has been erratically sidewise. 2-month plateau after steep advances. 400 400 1500 1500 Units Ist-of-month" Units Ist-of-month* Schedules Schedules 300 300 1000 1000 200 200 Actual 500 500 100 100 Actual 0 o o o 1942 1943 1942 1943 5. Fighter acceptances boom after a 6. Heavy and medium transports are shaky start. now moving up steadily. 400 400 125 125 Value Value Ist-of-month® 100 100 300 Schedules 300 Istof-month® Schedules MILLIONS OF DOLLARS 200 200 MILLIONS OF DOLLARS 75 75 50 50 MILLIONS OF DOLLARS 100 100 Actual 25 Actual 25 0 o o o 1942 1943 1942 1943 1st-of-month schedules through July; W-5 from there on WAR PROGRESS . ..... CONFIDENTIAL CONFIDENTIAL WAR PROGRESS on the other hand, communications planes a schedule of 263. These schedules have were the only group to exceed schedule. recently been reduced in line with the Results by major groups follow (air- Navy's decision to de-emphasize flying frame-weight basis): boats in favor of land-based patrol bombers. July Acceptances A 254-below-schedule performance in as % of medium bombers was accounted for by two June W-4 plants: At North American, Kansas City, Combat planes 104% 81% output of Billy Mitchell B-25s totaled Bombers 100 81 142 against a goal of 230; this reflected 2-engined fighters. 148 72 rearrangement of the assembly line. 1-engined fighters At Glenn L. Martin, Baltimore, delivery (Army) 116 86 of 60 B-26 Marauders compared with 125 l-engined fighters under the W-4 schedule; materials short- (Navy) 110 85 ages, foreseen a few months ago, caught Naval reconnaissance 68 46 up with output, and inventories ran low. Transports 108 91 Trainers 99 99 CURTISS SLUMP CONTINUES Communications 111 111 For the second straight month, a par- Acceptances of patrol bombers were ticular model dominated the poor showing far below expectations: three 4-engined of light 2-engined bombers. Last month PB2Ys were produced as against 20 sched- some 15 engineering changes slashed uled, and 205 twin-engined PBYs against production of the Boston (A-20) at Doug- KEY STATISTICS OF THE WEEK Latest Preceding Month 6 Months Year Week Week Ago Ago Ago Wor program - Checks poid (millions of dollars) 1,425 1,47L 1,637 1,531 1,07- War bond soles (millions of dollors) 275 199 209 378 205 Wholesole prices (1926=100) All commodities 102.8' 102.9* 103.0* 101.8 98.6 Form products 124.3* 124.8* 125.9* 117.7 105.6 Foods 106.14 107.0 107.6 105.0 100.1 All other than form products and foods 97.1' 97.1' 96.9° 96.3 95.8 Petroleum Total carloadings 57.729 57,344 59,961 50,631 53,090 Movement of cors into the East 31,066 32,239 32,218 25,879 26,670 East coast stocks for civilian use (1940-41=100 Seos. Adj.). 3-.9 35.2 31.5 34.5 53.1 Total stocks of residual fuel oil (thousands of borrels) 66,877 66,992 66,170 70,763 77,485 Bituminous Cool: Production (thousands of short tons, daily average) 2,017 1,067* 768 1,867 1,83 Exports (no. of freight cars unloaded for export Friday, excl. grain) Atlantic Coast ports 2,580 2,551 2,192 1,306 1,068 Gulf Coost ports 335 L31 350 330 183 Pocific Coost ports 1,30- 1,2 1,260 769 887 Unused steel capacity (% operations below copacity) 1.7 2.0 3.4 0.5 4.2 Department store soles (% change from o year ago) + 11 $ *19% +39% 0 -6% p. preliminary r revised CONFIDENTIAL AUGUST 6, 1943 CONFIDENTIAL 5 U.S. MERCHANT SHIP OUTPUT DROPS IN JULY MERCHANT SHIP completions declined uled-fourmore than in June-and tank again in July and again failed to meet er tonnage in July was up 34% to 246,- schedules. Deliveries totaled 156- 000. the past, the deficit from two fewer than in June and 7% below schedule was greatest inminor vessels scheduled 168. A hurricane in Texas (WP-June18'43,pl) 16 were delivered delayed delivery of five ships. In as against 23 scheduled. deadweight tonnage, output dropped For theyear, merchant vessel com- only 5,000 tons to 1,659,000; this was pletions now number 959, compared to 3% below schedule. 1,146 scheduled as of January 1; and Dry cargo vessel production declined tonnage has reached 10, 334,000 in com- 90,000 deadwei ght tons, from 1,422,000 parison with 11,455,000. in June to 1,333,000 in July. In this In addition to merchant vessels, group 109 Libertyships (1,177,000 tons) July output under the Maritime Com- were delivered, compared to 115 in June mission program included one trans- and 115 scheduled; standard types, with port and one aircraft transport. With 16 completed in June, were one ahead these, tonnage delivered in July mounts of schedule but two behind June. Fif- to 1,674,000. One corvette failed to teen tankers were produced as sched- come through as scheduled. las Aircraft's plant; only of W-4, although its Evansville plant 100 were accepted compared with a sched- was 40 behind; reportedly, subcontractors ule of 220. In June, it was the Balti- failed to deliver cowlings. more (A-30) at Glenn L. Martin's Balti- Though North American Mustangs (P- more plant. 51s) recovered from the poor June show- General Motors at Trenton and Grumman ing, when only 20 were delivered, they at Bethpage extended their consistent lagged more than 50% behind the W-4 on-the-schedule performance for Avenger schedule; 9lwere accepted. During July, torpedo bombers, turning out 251. The as in June, delays in Packard Merlin Curtiss plant at Columbus, O., did not 2-stage engines held up output. pull out of its persistent production slump-only 15'SB2C Helldivers were ac- PLYWOOD ABANDONED cepted against a schedule of 116. A In the Navy fighter group, output factor in the showing W&S the Navy's of Grumman Wildcats at General Motors' rejection of a substantial number of Lindenplant declined for the first time these ships. It was not quite so bad sincebroduction started last September: with the A-25, the Army's version of here demands for spares were met at this plane: 36 were produced at Curtiss, the expense of completed planes. St. Louis, as against a schedule of 75. During July, all contracts for the Fighters turned spotty perform- Curtiss Caravan plywood transport plane ance. Bell Airacobras hit a. new high (C-76) were canceled. Only oneof these at 503units, but no improved Airacobras 2-engined ships had been delivered, but (P-63s) were delivered. Republic at schedules called for 1,200 through 1944. Farmingdale was 30 Thunderbolts ahead Curtiss Commandos may be substituted. CONFIDENTIAL 6 CONFIDENTIAL WAR PROGRESS SCORECARD ON MERCHANT SHIPPING Sicilian compaign boosts sinkings of United Nations vessels, but construction is three times the losses, and the cumulative tonnage deficit is all but wiped out. 2500 2500 Sinkings vs. Construction Schedule 2000 2000 1500 1500 1000 1000 Sinkings 500 500 Construction o 0 +1500 +1500 Net Loss (or Gain)-Monthly +1000 +1000 THOUSANDS OF DEADWEIGHT TONS +500 +500 Goin o o THOUSANDS OF DEADWEIGHT TONS -500 -500 Loss -1000 -1000 o o The Cumulative Deficit 4000 4000 8000 BOOO 12,000 12,000 1940 1941 1942 1943 WAR PROGRESS THE SICILIAN INVASION, LARGEST AMPHIBIOUS OPERATION OF THE NORTH AFRICAN VENTURE. THIS ALL ADDS UP TO OF ITS KIND IN HISTORY, NATURALLY RESULTED IN MER- THE FACT THAT THE AXIS IS FINDING IT INCREASINGLY CHANT SHIP LOSSES. BUT, EVEN AT THAT, JULY SINKINGS DIFFICULT TO STOP UNITED NATIONS MERCHANT SHIPPING. WERE NOT MUCH HIGHER THAN IN APRIL AND MAY. AND WITH A NET ADDITION OF 1,200,000 TONS TO THE ALLIED LOSSES WERE MUCH SMALLER THAN LAST NOVEMBER, MONTH MERCHANT FLEET, THE CUMULATIVE DEFICIT NEARS ZERO. CONFIDENTIAL AUGUST 6, 1943 CONFIDENTIAL 7 Dilemma in Nonferrous Metal Mines Higher pay elsewhere, bad working and living 23'43,pl). to be distributed as follows: conditions cause big turnover. Furlough- ing of army men only partial and tempo- Allotment of rary solution to problem. Type of Mine Furloughees Copper 3,240 TRYING TO MOVE labor into the nonferrous Zinc 1,025 metal mines is like trying to push a Molybdenum 235 piece of string. You have neither law, Total 4,500 economics, nor social conditions on your side. But thisisless than ahalfway meas- Not only the pay low compared with ure; it still leaves a 6,500-man gap. shipyards or airplane plants, but the Moreover, there isno assurance. that the mines are in out-of-the-way locations furloughees will stick. Back in Octo- without urban conveniences or social ber, 4,200 soldiers were released for life. Housing is not plentiful and in mining, but many decided after working many cases none too good. Work is hard in the mines that they'd rather be in and oftentimes unplessant. And there the Army. The problem is epitomized in is no law to compel workers to go into the statistics. From March 1 to May 1, the mines. separations from nonferrous mines amount- ed to 9,695; hirings totaled 7,630. Net MERCURIAL MANPOWER loss: 2,065, or 3% of total employment That explains the high turnover; why in two months. for every 100 men nowat work in copper, zinc, lead, tungsten, molybdenum, and MORE COPPER, MORE MEN other nonferrous mines, 19 more are In the face of numerous social and needed. And the shortages are not con- economic distractions from mining, the fined to particular types of mines; War Production Board is trying to make they're general: the best of a rapidly deteriorating sit uation by using miners where they pro- June 1943 duce most. To this end, productivity- Men Labor % Increase per-man-per-mine statistics have been Employed Shortage Required developed. As an instance, they show Copper 30,100 4,300 14% that thePhelps Dodge United Verde mine Zinc-lead. 22,150 4,700 21 at Jerome, Ariz., has aproductivity of Tungsten 1,700 550 32 4.29 tons of copper per man monthly, as Molybdenum. 1,050 400 4 against the 1.16 tons at the Control Chrome 650 250 38 Mines, Oracle, Ariz. Therefore, United Venadium 1,250 150 12 Verde will be given a higher manpower Manganese. 390 50 13 preference than Control. Mercury 1,500 600 40 Total 58,790 11,000 19% NONCOMPLIANCE In addition to productivity, mines To help relieve this shortage, the are classi fied according to the critical Army is furloughing 4,500 men (WP-July importance of their products: In Group CONFIDENTIAL 8 CONFIDENTIAL WAR PROGRESS CLEARLY, FURLOUGHS ARE NOT ENOUGH Though 4,500 soldiers are being furloughed this month to nonferrous metal mines, this is less than half the current shortage, and no solution of the long- term problem (page 7). These are the current labor shortages in nonferrous metal mines: 5000 5000 4000 4000 3000 3000 2000 2000 1000 1000 o 0 ZING-LEAD COPPER MERCURY TUNGSTEN MOLYBDENUM CHROME VANADIUM MANGANESE The furloughees will go to only three types of mines; 5000 5000 4000 4000 NUMBER OF MEN 3000 3000 2000 2000 NUMBER OF MEN 1000 1000 0 o ZINC-LEAD COPPER MOLYBDENUM And after that, all operating mines will still have labor deficiencies. 5000 5000 4000 4000 3000 3000 2000 2000 1000 1000 o 0 ZINC-LEAD COPPER MERCURY TUNGSTEN MOLYBDENUM CHROME VANADIUM MANGANESE WAR PROGRESS IIIII CONFIDENTIAL AUGUST 6, 1943 CONFIDENTIAL 9 1 aremetals which are in short supply: work in the Class 3 or Class 4 mines. As a further indirectmeans of shunt- Aluminum Molybdenum ing workers into high-productivity mines, Cadmium Vanadium federal loansmay be withheld from mines Bismuth Tungsten producing insignificant quantities of Tin Chromium critical metals; priorities on equip- Copper Nickel ment may be denied unproductive mines: Zinc draft deferments are granted mine work- In Group 2 are metals in sufficient ers in Class 1 and 2 mines. And, as a supply for war and other essential needs: direct measure, somenonessential mines have actually been ordered closed-the Magnesium Silver gold mines, for example, under L-208. Mercury Cobalt Platinum But these policies generate political pressures on WPB's Office of Manpower In Group 3 are metals available in Requirements. For example, a gold or large enough quantities to permit their silver mine producing some by-product use as substitutes for scarcer metals: copper or zinc will try to get itself classified as a Class 1 or 2 mine. Antimony Lead DIPLOMATIC PROBLEM Gold Additional labor-getting measures Using productivity and essentiality are being adopted, such as: as standards for judgment, mines are then 1. Persuading former miners in ship- subdivided into four classes: yards and airplane plants to return to Class 1. Mines most important to the the mines. war economy. 2. Trying to bring in inexperienced Class 2. Essential mines of lesser workers from labor-surplus areas. importance. 3. Importing Mexican labor. This is Class 3. Mines aiding the war effort, a diplomatic problem. Several attempts but not so essential as those in Class have been made to bring Mexicans over 1 or Class 2. the border. The peon is considered a Class 4. Mines whose contribution to natural-born miner. The State Depart- the war effort is minor in relation to ment has gone so far as to certify 2,- manpower and materials needed. 000 Mexicans for entry into the United States. But some mines in the South- PRIORITIES TO PRODUCERS west pay Mexican miners less than Amer- To concentrate manpower into Class 1 ican workers, and the Mexican government and 2 mines, these policies have been has refused to sanction a migration adopted: The War Manpower Commission unless these differentials are wiped and the U.S. Employment Service are re- out. The mine operators demur at this. cruiting workers primarily for Class 1 To undo the differential would jump the and Class 2 mines, and can take them pay of many Mexicans already at work. away from Class 4 mines. New workers Preliminary steps have been taken to unwilling to work in Class 1 or Class 2 remove this obstacle. mines may be allowed to work in Class 4. Increasing wages and improving 3 mines. But workers in Class lor 2 working conditions. mines will not be allowed to leave for 5. Tightening the "labor freeze" on CONFIDENTIAL 10 CONFIDENTIAL WAR PROGRESS miners. The Employment Stabilization Order of September, 1942, met widespread WHERE MICA GOES noncompliance. However, turnover may Largest use is in radio condensers (50%); next be slowed down by anew system requiring in rodio valves. certificates of separation. ) But all these measures fly in the face ofnormal economic incentives. In a laissez-faire labor market you cannot MISCEL bind men to their work when pleasanter jobs, higher pay, and better living con- MAGNETOS ditions beckon elsewhere. Thus the RADIO overall nonferrousmi manpower short- SPARK PLUGS CONDENSERS age re-emphasizes the problem posed by the copper mines alone: that in a war RADIO VALVES economy freedom of choice does not put workers where you need them most. Mica: Mother of Motion % OF MICA CONSUMPTION This mineral is on essential ingredient in con- WAR PROGRESS densers, radio tubes, magnetos and spark si fied as (1) Clear and Slightly Stained, plugs. Without it no plane could fly, no (2) Fair Stained, and (3) Good Stained radio sing. Demand outruns new supply. -all of them commonly referred to as TO MOST PEOPLE, mica is the isinglass "Good Stained and Better. " Most crit- that used to glow in the old "base- ical war production requirements fall burner." But to electrical engineers, in these three groups. itisthe staff of motion. Without it, And there's the rub. While stocks no plane could rise, no sub could sub- on hand of block mica of all grades merge, no radio could send or receive, constitute a fairly comfortable supply and no motor could turn. on a pound basis, Good Stained and Bet- AB a nonconductor of electricity- ter grades are hardly more than a week resistant to fire, water, acid, and to several months ahead of demand. The thermal shock, micaisan essential in- reasons are (1) variations in the qual- gredient in condensers, radio tubes, ity of mica shipments, (2) constantly magnetos, spark plugs, etc.; hence mica changing requirements, and (3) insuffi- is indispensable to the war effort. cient supplies of some critical types. There aremany micas. In fact, mica is a group name for a whole assemblage REQUIREMENTS MOUNT of complex aluminum silicate minerals New developments in aircraft magne- capable of being split into thin, flex- tos, for example, mean new requirements ible, tough sheets. It is mined in for mica. While substitutes such as "books,' and a book the thickness of a ceramics, glass, oiled paper, etc. are deck of cards can yield 1,000 splittings. constantly being approved, new demands Mica is of many grades, qualities, for the mineral itself crop up. And forms, and preparations, but the prin- expansion in the aircraft and signal cipal strategicmi ismuscovite, clas- equipment programs impose an especially CONFIDENTIAL AUGUST 6, 1943 CONFIDENTIAL 11 heavy load in the second half of this year. IMBALANCE IN MICA Estimated consumption for 1943 of Demand is running ahead of new Good Stained and Better is approximately supply, cutting down the stockpile. 3,250,000 pounds; estimated new supply 300 300 Consumption for '43 will be 2,686,000 pounds. The difference must come from accumulated 200 200 stocks, which have already been lowered by a steadily unfavorable supply-demand 100 100 balance. In the last nine months of 1942, consumption ran ahead of new sup- 0 o ply by 14%. From January through March A M J J A $ 0 N o J F M A M J 1942 1943 of this year, consumption exceeded sup- ply by 34%. From April through June, 500 500 New Supply however, imports increased, consumption dropped slightly, and the excess de- 400 400 imports clined to 3%. The pickup in imports Domestic Production was due to a quickening of movement from THOUSANDS OF LBS. 300 300 foreign sources, rather than to increased foreign production. 200 200 THOUSANDS OF LBS. FROM MANY LANDS 100 Imports 100 Mica, like quartz (WP-July16'43,p7), is an air-borne mineral. The principal foreign sources, accounting for 85% of 0 o A M J J A $ o N o J F M A M J supply, are India, Brazil, and Africa, 1942 1943 with small amounts from Canada, Peru, 0 0 and Bolivia. Air shipment of mica from India start- 100 100 Cumulative Drain ed in May, 1942, when it was felt that on Stockpile mica was the most critical foreign min- 200 200 eral warranting such safe transport, and it has been a part of every air cargo since. From a first shipment of 300 300 5,500 pounds, the volume had increased to 215,000 pounds last June. There is 400 400 more cargo space, but not more mica. In October, 1942, air shipments from 500 500 Rio de Janeiro were started with 82,000 pounds and had risen as high as 240,000 600 600 pounds in May. In February of this year, A M J J A $ 0 N o J F M A M J 1942 1943 75,000 pounds were brought in by air WAR PROGRESS from Africa; in June the cargoes had increased to 437,000 pounds. LARGE MICA RESERVES BRIDGED THE DEMAND-SUPPLY GAP OF 500,000 POUNDS OVER THE PAST 15 MONTHS. WITH Domestic supply-again like quartz- RESERVES LOWER, MICA REMAINS CRITICAL, BUT CONSER- is limited and costly to obtain. Its VATION, REDUCED TRANSIT TIME OF AIR-BORNE IMPORTS, price of $5.00 a pound compares with AND HIGHER DOMESTIC OUTPUT SHOULD FIDE US OVER. CONFIDENTIAL 12 CONFIDENTIAL WAR PROGRESS the foreign cost of about 70 cents. In spite of the high-cost domestic opera- War Progress Notes tions, the number of U.S. mica mines has risen from 43 a year ago to 475 "THE PLATEAU" today. But themines are small and to- WAR EXPENDITURES for July fell $1,000,- tal output is only 40,000 pounds per 000,000 below the June figure, but ap- month, compared to imports ranging around proximately hal: of the decline reflects 200,000 pounds. technical bookkeeping adjustments. Al- though the rest of the drop remains un- PROMIKA explained officially, it may possibly Mica has been dogged by troubles since be tied in with the "leveling off" of the beginning of the war. Early in the munitions production and war con- 1942, equipment was requested for mines struction programs. in India, but has only recently been In July, $6,432,000,000 was spent shipped; India-with Japanese troopson for "war activities," n compared with the border-wasn't considered. a good $7,469,000,000 for the June peak, and investment last year. war expenditures were at their lowest In Brazil, quartz was given prefer- level since February, 1943. ence, anduntil four months ago no equip- The June figure was abnormally high ment was available for mica. Latest because it reflected adjustments of holdup occurred because of the prema- about $500,000,000 made between certain ture announcement of a supposed substi- receipt and expenditure accounts. Of tute-Promika, a resin-treated paper. this amount, $250,000,000 was accounted Air transport officers and produc- for by apayment by the Federal Surplus ers who read the announcement concluded Commodities Corporation to the Commodi- that the urgent need for the mineral ty Credit Corporation in reimbursement was over and failed to push it. for agricultural commodities previously procured in connection with the Lend- STRETCHING THE SUPPLY Lease program. But despite delays and steadily di- minishing reserves, all demands for RETAIL SALES mica have been met 60 far. The prob- DIVERGENT TRENDS in retail sales and lems this year are to stimulate both inventories augur a squeeze: The na- foreign and domestic production, find tion is drawing down its stockpile. new substitutes, and promote the use of In June retail sales climbed to $5,- stained quality, of which there is a 300,000,000, only 4% below the scare- good supply. buying peak in February. (In February, Requirements have already been re- announcement of shoe rationing sent laxed to permit theuse of stained qual- consumers on a clothing spree.) Inven- ity in spark plugs, radio tube supports, tories, on the other hand, are down from and magneto coil insulation, which for- a peak of $7,600,000,000 last July to merly usedonly Good Stained and Better. $5,400,000,000, and amount roughly to Laboratories are experimenting with one-month's sales (chart, page 13). A other items using the lower grade, and year ago, inventories amounted to 1.7- if the results pass the performance month's sales. tests, mica may move out of the criti- Despite the high dollar total of cal category. sales, physical volume of goods moving CONFIDENTIAL AUGUST 6, 1943 CONFIDENTIAL 13 across the retail counter is 16% below ping rapidly although production from the wartime peak. In August, 1941, sales these sources is steadily increasing. amounted to nearly $5,000,000,000, but This is because mineral processes, em- prices were 26% lower than they are ploying dolomite, magnesite, and brucite, today. and requiring considerably less electric power and equipment, have soared into MOVING THE OCEAN the lead in the production of the metal, YOU can't take sea water into your plant, as follows: drain it of its magnesium content, pour it backinto the ocean at the same spot Sources % of Production and then repeat the process with the 1942 1943 Peak same results. Sea water 66% 35% 25% That's why, to prevent dilution of Brine 20 12 15 "its" ocean, the Dow magnesium plant in Minerals 14 53 60 Texas, which processes 50,000 gallons of sea water per minute to produce 10,- *A few plants also use minerals. 000,000 pounds of magnesium monthly, pumps the processed water into a canal Production of magnesium in the U.S. that carries it back to the ocean miles has risen from 100,000,000 pounds in away from the plant. 1942 to an anticipated 400,000,000 pounds The percentage of the nation's mag- this year. At peak, output is expected nesium derived from sea water and brine torunat an annual rate of 600,000,000 (pumped romunderground wells) is drop- pounds. RETAIL SALES UP, INVENTORIES DOWN Sales are still rising, but inventories are off 26% from the July, 1942, peak. 8000 8000 (Adjusted for seasonal variation) Inventories 6000 6000 MILLIONS OF DOLLARS 4000 4000 Soles MILLIONS OF DOLLARS 2000 2000 0 0 1939 1940 1941 1942 1943 WAR PROGRESS CONFIDENTIAL 14 CONFIDENTIAL WAR PROGRESS Impact of Selective Service upon Indus- REPORTS ON REPORTS try, 1943 (confidential; pp. 17). AB- suming that half of the physically fit Bed and Board men in nonagricultural industries will Howprivate enterprise in Great Brit- receive occupational deferments, the ain, worker participation in Russia, report estimates that 944,000 of the and government control in Germany cope nonagricultural workers must come from with basic wartime social and economic manufacturing, 78,000 from mining. problems is analyzed in Housing, Feed- (Department of Labor, Bureau of Labor ing, and Transportation Facilities for Statistics) War Workers in Great Britain, Germany, and Russia (restricted; pp. 11). Package Problems (War Manpower Commission, .Bureau of Containers (confidential; pp. 14) Program Requirements) summarizes production and demand prob- lems for glass jars, tin cans, steel Army's Goal drums, wooden and paper boxes. More than 2,609,000 men from the (Department of Commerce, Bureau of For- country's nonagricultural labor force eign and Domestic Commerce) and 250,000 from agriculture must go into the armed forces this year if the This record is an attempt to select from the many documents coming to the attention of WAR PROGRESS latter's objective of a 3,800,000-man those studies which would be of most interest to readers. The list is by means comprehensive, and increase during 1943 is to be met, ac- no attempt has been made to evaluate reports for accuracy. Whether reports are available depends on cording to estimates in The Differential the policy of each individual agency. SELECTED MONTHLY STATISTICS Federal Finance -Income Payments Lotest 6 Months Some Some Preceding 2 Months Year Month Montn Month* Month Ago Ago Ago 1939 1937 FEDERAL FINANCE (GENERAL FUND) Expenditures-Total (billion dollars) 7.1 8.3 7.4 6.4 5.2 .8 .6 War 6.4 7.5 7.1 6.0 4.5 - - Nonwor -7 .8 .3 .4 .7 .8 .6 Revenues-Total 2.0 4.6 1.5 . .7 .3 :- Income Toxes 1.3 3.8 1.0 +3 .2 .1 .1 Other .7 .8 -5 +5 5 .2 .3 Wor Bond Soles is is 1.3 1.2 is - - -7 -7 1.0 .8 -5 - - "F"and "G" .2 .2 +3 .4 in - - Net Debt 132.9 127.2 123.2 103.3 73.8 38.2 34.1 INCOME PAYMENTS-TOTAL (million dollars) 12,162' 11,138 11,240 11,508 9,727 6,025 6,334 Solories and Woges 8,406* 8,245 5,127 7,748 6,592 3,824 3,978 Mfg. mining, agriculture, constr. 6,610* 6,467 6,369 6,197 5,422 3,117 3,339 Government 1,794' 1,774 1,751 1,528 1,117 542 494 Military 851' 834 819 673 380 37 32 Nonmilitory 943" 940 932 #55 737 505 462 Other 2" " 7 23 53 165 145 Other income payments 3.756* 2,893 3,113 Income payments, annual rate (odjusted 3.860 3,135 2,201 2,356 for seasonol, billion dollors) 142.1' 140.2 139.3 129.9 113.9 70.5 74.4 *Federal Finance, July: Income Payments, June, P Preliminary. CONFIDENTIAL AUGUST 6, 1943 CONFIDENTIAL... 15 PRODUCTION PROGRESS Aircraft and Aircraft Munitions Total Planes Aircraft and Aircroft Munitions Combat, Service, and Trainer 3000 1600 Schedule Schedule 1200 2000 800 Actual 1000 Actual 400 o o 1942 1943 1943 1943- Combat Planes Service Planes 1600 150 VALUE DELIVERED-MILLIONS OF DOLLARS 1200 Schedule Schedule 100 800 50 VALUE DELIVERED-MILLIONS OF DOLLARS 400 Actual Actual o o 1942 1943 1942 1943 Trainers Gliders and Lighter-than-Air Craft 75 40 Actual 30 50 Schedule 20 Actual 25 Schedule 10 0 o 1942 1943 1942 1943 *Schedules os of June 10 for aircraft and spores, 08 of July for all others. MAR PROGRESS CONFIDENTIAL 16 CONFIDENTIAL WAR PROGRESS PRODUCTION PROGRESS Aircraft and Aircraft Munitions (continued) Spare Engines, Propellers, Parts Aircraft Ordnance - Total 800 250 Schedule 200 600 Schedule 150 400 100 Actual Actual 200 50 o o 4242 1943 1942 1943 Aircraft Torpedoes, Bombs, Mines Aircraft Armament and Pyrotechnics 50 150 VALUE DELIVERED DELIVERED-MILLIONS OF DOLLARS Schedule 40 Schedule 100 30 Actual Actual 20 50 VALUE DELIVERED MILLIONS DELIVERED-MILLIONS OF DOLLARS 10 o o 1942 1943 1942 1943 Aircraft Cannon Ammunition Aircraft Signal Equipment 30 200 Schedule Schedule . 150 20 100 Actual 10 Actual 50 o o 1942 1943 1942 1943 . Schedules os of June 10 for aircraft and spares: os of July for on others WAR PROGRESS CONFIDENTIAL The President et WAR PROGRESS Confidential (British Secret) the THE the the THE the R War Output: Off the Plateau ? Number 152 August 14, 1943 CONFIDENTIAL NUMBER 152 WAR PROGRESS AUGUST 14, 1943 Production Shakes Loose from Plateau July output, up 4%, raises munitions total doing. To achieve it, monthly produc- for year to $33,000,000,000, with only tion will have to rise to at least $6,- five months left to reach $65,000,000,000 000,000,000 before the endof the year. goal. Construction declines 9%. That, compared with $5,280,000,000 last' month. WAR OUTPUT moved off its three months' Here's the score on the year to date: dead center lastmonth. Munitions pro- duction amounted to $5,280,000,000 (pre- Munitions Change from liminary), or $210,000,000 more than Output Preceding Month June. The gain-4%-was not large in (millions) view of the virtual standstill in out- January $4,045 -$325 put during May and June. February 4,274 +229 July carried production through the March 4,662 +388 year's halfway mark. At $33,000,000,- April 4,953 +291 000, munitions were a shade more than May 4,959 +6 half the $65,000,000,000 estimate long June 5,070 +111 regarded as a reasonable prospect for July 5,280 +210 1943 (WP-July30'43,pl). Thus there is to do in the next five months almost Again lastmonth production was ham- as much 88 in the last seven months. pered by hot weather, labor shortages, And recent events don't cast hopeful vacations, and the general industrial shadows. hesitation after 20 months of produc- tion strain following Pearl Harbor. WILL TAKE MUCH DOING Fatigue setting in simultaneously with To turn out $32,000,000,000 of mu- good news from the battlefront undoubt- nitions in the next five months, would edly has caused a letdown among workers require gains of about $350,000,000 per and management this spring and summer. month. Since the start of the year, gains averaged around $150,000,000. LABOR PROBLEM AGAIN To put it another way, monthly pro- Increasingly, labor is becoming a duction would have to average $6,350,- constricting factor inproduction. (It 000,000, or some 20% above the July is to output today what materials were level. And what has happened 80 far last fall.) This is especially true this year hardly suggests that from on the West Cosst, where shipyards, air- August through December a monthly rate craft factories, and lumber camps vie of that magnitude will be attained. A for workers. And yet, schedules call more likely prospect is an average of for 8 rise in production in the very $5,750,000,000 per month, which would plants which are failing to meet cur- yield $62,000,000,060 of munitions for rent goals because of labor shortages. 1943. Ultimately, it may be necessary either And even that lower level will take to import workers to these critical CONFIDENTIAL 2 CONFIDENTIAL WAR PROGRESS areas or withdraw contracts. This is Acceptances of airplanes alone were an up-and-coming problem. higher than in June, but trailed the All' major groups except merchant first-of-the-month (W-4) schedule by a ships shared in the monthly gain, as substantial margin (WP-Aug7'43,pl). follows: There were the usual design changes, alterations of assembly lines, and re- Aircraft and munitions 6% jections by the services to contend with; Ground army munitions 6 vacations were also a factor. One of Naval ships, etc 3 the chief bottlenecks was labor. Merchant ships nil Misc. munitions 2 DIFFICULTIES DEVELOPING As airplane production moves into War construction followed its sched- new high territory, expected increases uled downward course-off 9% from $1,- become more difficult to attain. In the 010,000,000 to $920,000,000. Thus the face of rising schedules, plane makers overall program-munitions and war con- will have to work against thinner mar- struction-amounted to $6,200,000,000. gins of materials and skilled labor. Turnover in airplane plants is so high Aircraft that training workers is a constant Aircraft dominated the month's pro- problem. Moreover, manufacturers are duction showing. At $1,875,000,000, faced with frequent engineering changes aircraft and related munitions in July dictated by experience in battle. The moved 6% ahead of the preceding month end result is that the organization of and accounted for 31% of all munitions plane-plant operation has become even and war construction; that compares with more complex; management is not always around 29% in June and 19% a year ago. up to the task of maintaining an un- By December, the aircraft-and-related- broken flow of production even when munitions group is scheduled to com- labor and materials are available. prise 40% of the program. CONCENTRATED DEFICIENCY A noteworthy observation about last IN THIS ISSUE: month's performance is that most of the deficiency from schedule was concen- trated among a relatively small number PRODUCTION SHAKES LOOSE FROM PLATEAU 1 of producers. Ten plants belonging to PRODUCTION PROGRESS PRELIMINARY 5 six companies-Boeing, Curtiss-Wright, KEY STATISTICS OF THE WEEK Douglas, Ford, Grumman, and North Amer- 7 ican-whose share of the airframe weight CMP'S ROUND 3: TOWARD REALISM 8 goal was 41%, accounted for 64% of the CMP GAINS TIME 11 deficit. Curtiss-Wright's three plants LESS TO THE SOVIET were responsible for 16%, though sched- 12 uled output was only 7% of total air- REPORTS ON REPORTS 13 frame weight. SELECTED MONTHLY STATISTICS 14 Related aircraft items were uniform- ly higher than in June, but all were PRODUCTION TIONS) PROGRESS (GROUND ARMY MUNI- 15,16 below schedule, with one exception- aircraft signal equipment, which was CONFIDENTIAL AUGUST 14, 1943 CONFIDENTIAL 3 right on schedule. Aircraft ordnance This was the biggest gain since March, was 5% ahead of June, but failed to and the first time since March that meet schedule by the same margin; other output reached schedule. Thus ground items (spares, gliders, airships, main- ordnance perceptibly shook loose from tenance, etc.) registered a 4% increase the four months' plateau and resumed over June but were 7% behind the pro- its upward course. duction plan. To combat vehicles and equipment goes most of the credit for this per- Army Ordnance formance. They rose 12% from June, ac- Ground army munitions (including counting for more than half of the month- signal equipment) not only increased to-month increase. Moreover, they topped 6% over June but came out even with schedule by 4%. Since combat vehicles schedule and reached a new high. The are about at their scheduled peak and preliminary total was $1,130,000,000, facilities are generally ample, the compared to $1,065,000,000 in June. problem here is to keep production down PRODUCTION- - THROUGH THE FUTURE GLASS What we ve done and what we've got to do to meet the 1943 munitions goal. This was the average monthly production in 1942. This was the average month during the first half of 1943. This is the month of July. This is the overage month necessary from now on to get $65,000,000,000 of munitions. This is the average month necessary to meet current 1943 schedules. This is the average month that now seems likely. 0 2 4 6 MUNITIONS PRODUCTION BILLIONS OF DOLLARS WAR PROGRESS CONFIDENTIAL 4 CONFIDENTIAL WAR PROGRESS MUNITIONS OUTPUT MOVES OFF THE PLATEAU 4% gain over June, however, is not enough to reach '43 goal; airplane and naval groups reach new highs. Total Munitions Wor Construction (Government Financed) 8000 2000 Volue delivered or put in place Schedule Volue put in place 1600 6000 Preliminary Preliminary 1200 4000 Actual Actual 800 Schedule 2000 400 0 o 1942 1943 1942 1943 Total Airplanes Ground Army Guns and Equipment 1500 400 Value delivered Value delivered Schedule Schedule 300 1000 Actual Preliminary Preliminary 200 VALUE DELIVERED OR PUT IN PLACE MILLIONS OF DOLLARS Actual 500 100 0 o 1942 1943 1942 1943 Combat Vehicles Ground Army Ammunition 400 600 Value delivered Value delivered Preliminary Schedule 300 VALUE DELIVERED OR PUT IN PLACE MILLIONS PLACE-MILLIONS OF DOLLARS Schedule Actual 400 200 Actual Preliminary 200 100 o o 1942 1943 1942 1943 Naval Vessels, Ordnance and Equipment (Including Army Auxiliaries) Merchant Vessels and Maintenance 1500 500 Volue put in place Schedule Volue put in place Schedule 400 1000 Pretiminary Actual Preliminary 300 Actual 200 500 100 o 0 1942 1943 1942 1943 - PROGRESS CONFIDENTIAL AUGUST 14, 1943 CONFIDENTIAL. 5 to schedule. Tanks come under the head output of signal equipment in line with of a "licked" program. needs. Altogether, equipment for com- Medium tanks-the M4 series-with bat vehicles, including tank guns, gained 2, 165 produced, were 7% above June and 8% from June butmissed schedule by 7%. 8% above schedule; and light tanks of Guns and equipment (including small the M3 and M5 series exceeded June by arms) ran 3% above schedule. But the 9% and schedule by 4%, with a total of schedule called for a fairly substan- 826. Half-track personnel carriers tial drop. And total output, at $279.- made an even better record-19% above 000,000, was down 4% from June. June. Medium armored cars, on the other hand, suffered a 13% decline from June. 11th HOUR BARRAGE But the M8 light armored car leaped A surge of acceptances in the final 203%, to 512. This job has lagged con- 11 days of July lifted the artillery sistently. In June, for instance, 169 total. On July 20 only 43% of scheduled were delivered as against 400 scheduled. artillery (exclusive of antiaircraft) A new light armored car-the M20-came was completed; yet by July 31 the pro- in with 126, one over schedule. fram was above schedule. Not one 105mm. The 75mm. gun for tanks equaled both self-propelled been deliv- schedule and the previous month's to- ered at the two-thirds mark; but the tal, but not BO with command radio SCR- full schedule of 75 came through. And 528 for combat vehicles; only 75% of more self-propelled 3-inch guns were this schedule was realized, a further completed in the last 11 days than in example of the difficulties in raising the first 20. All self-propelled guns PRODUCTION PROGRESS - Preliminary Value delivered or put in place - millions of dollars. % Deviation July June % July July Prelim. Preliminary Actual Change Schedule vs. Schedule TOTAL MUNITIONS AND WAR CONSTRUCTION $6,200 $ 6,080 2 $ $6,715 - 8 X TOTAL MUNITIONS 5,280 5,070 . 4 5,795 - 9 Aircraft and Aircroft Munitions 1,875 1,776 . 6 2,103 -11 Airplanes, Spores, Equip. and Maint., etc. 1,570 1,496 . 5 1,790 -12 Aircraft Ordnance 145 138 5 153 5 Aircraft Signal Equipment 160 142 *13 160 0 Ground Army Munitions 1,130 1,065 6 1,129 o Combat Vehicles and Equipment 351 314 *12 337 4 Guns and Equipment (o) 279 290 la 272 3 Army Ammunition 368 368 0 374 - 2 Ground Signal Equipment 132 03 *42 146 -10 Noval Vessels, Ordnance and Equipment 950 920 + 3 1,135 -16 (incl. Army Auxiliaries) Merchont Vessels and Maintenance 405 404 o 436 I Miscellaneous Munitions 920 905 . 2 992 7 WAR CONSTRUCTION (Government Financed) 920 1,010 9 920 + . As of June 1 for Construction: as of June 10 for Aircraft and Spares: as of July 1 for all others. (a) Artillery and equipment: antiaircraft gane and equipment: small ares and infantry weapons. f Schedule used for preliminary. CONFIDENTIAL 6 CONFIDENTIAL WAR PROGRESS wound up July 3%above schedule; wheeled 40mm. HE shells for AA guns stepped up artillery came through even stronger- output by 164% and passed their goal. 6% ahead of the dollar quòta. The bazooka rocket, production of which Antiaircraft guns and equipment- stopped in June, failed to return to still arising program-exceeded sched- production in July and is now scheduled ule by 6%. But for July there was a for resumption this month. temporary dip in schedule, and output, Small arms and infantry weapon am- at $116,000,000, was 6% off from the munition rose 8%-to $251,000,000-and June total. The 40mm. Bofors, back- barely missed the target. The 60mm. bone of AA, with 1,179 completed, ran HE mortar bomb jumped impressively- 5% ahead of forecast. Radar search- 22% higher than June and 10% over sched- light control SCR-268, with 51 sets ule, with 770,000 rounds loaded. completed, was 28% above schedule, though Ground signal equipment (other than far below June. Director M5 was right that included in the cost of guns and on the target, with 2,025 sets. their equipment) came closer to sched- ule than in anymonth since April, miss- EVENT OF THE MONTH ing by only 10%. Last month output Small arms and infantry weapons con- fell short of forecast by 27%. The trasted sharply with the better-than- monthly rise in deliveries was 42%, to schedule records of combat vehicles $132,000,000, and was fairly general. and artillery. The $63,000,000 worth Warning radar SCR-270 came through with turned out in July missed the goal by 36 sets, after dropping out completely 6%. This figure is 3% under June out- in June. Interception radar SCR-527 put. Machine guns accounted for a sub- and 627 were exactly on schedule with stantial deficit: the .30-caliber, 28, a 75% rise from June. with 10,056 accepted, ran 36% below the Miscellaneous munitions (not in- June total and 13% under schedule; the cluded in ground army munitions), at .50-caliber hit schedule on the nose $920,000,000, were above June. Motor with 4,564 accepted, or 6% below June. vehicles were a weak spot-only 92% of Big event of the month was the 25% schedule. One-and-a-half-ton trucks gain in 30-caliber carbine deliveries. missed schedule by 20%, quarter-ton Production here has been beset by bugs trucks (the ubiquitous jeep) by 5%, and and consistantly laggard. But output 2a-ton trucks by 3%. Components are a of 228,500 beat schedule by 4%. The problem here-transmissions and axles, Garand (90,700 accepted) and the Spring- for example. field (70,190 accepted) both missed schedules by 14%, and both fell below Naval Ships June output. The value of work done on naval ships Ammunition for artillery pieces was (including naval ordnance and equipment almost on schedule-but, with output and army auxiliaries)is estimated to have valued at $117,000,000, fell off from risen slightly during July, reaching a June by 14%. The 105mm. and 75mm. how- new high for the year at $950,000,000, itzer HE shells and.75mm. shot and shell or 3% above June. fell off from last month by 44%, 17%, Deliveries, however-at 185,000 dis- and 4%, respectively: yet all exceeded placement tons-were down 19% from June's schedule. Three-inch gun shot missed record high of 229,000 tons; there was a curtailed schedule by 9%. In contrast, no superdreadnaught "New Jersey" or CONFIDENTIAL AUGUST 14, 1943 CONFIDENTIAL 7 KEY STATISTICS OF THE WEEK Lotest Preceding Month 6 Months Year Week Week Ago Ago Ago War program - Checks paid (millions of dollars) 1,652 1,425 1,390 1,417 1,039 Wor bond soles (millions of dollars) 147 275 186 182 194 Wholesale prices (1926=100) All commodities 103.0 102,8* 103.0* 102.0 98.6 Form products 125.0 124.3* 126,0* 118.2 105.4 Foods 106.6 106.4 107.3 105.0 99.7 All other than form products and foods 97.2 97.1" 96.9* 96.4 95.7 Petroleum: Total carloodings 53,169 57,729 58,155 52,721 53,822 Movement of cors into the East 27,413 31,066 31,140 25,812 26,145 Eost coost stocks for civilion use (1940-41=100 Seos. Adj) 34.7 34.9 34.0 34.6 54.5 Total stocks of residual fuel oil (thousands of borrels) 66,714 66,877 67,142 71,095 78,316 Bituminous Cool: Production (thousands of short tons, daily overage) 2,017 2,025" 1,725 1,917 1,872 Exports (no. of freight cars unloaded for export Friday, excl grain) Atlantic Coost ports 2,701 2,580 2,288 1,223 1,627 Gulf Coast ports 336 335 360 335 468 Pocific Coost ports 1,320 1,304 1,268 888 905 Unused steel capacity (% operations below copacity) 1.6 1.7 3.0 0.7 3.5 Department store soles (% change from o year ago) *6% 11% -1% *19% -5% p. preliminary F. revised heavy cruiser "Boston" to lift the to- the 6,000-ton light cruiser "Oakland, II tal. The July showing was about equal 13 destroyers (compared with 10 in June), to average monthly deliveries in the and six submarines (the same number as first half of the year. in June). All principal groups failed to meet scheduled deliveries-with auxiliaries FRIGATES IN THE DOLDRUMS and transports showing the greatest Paced by destroyer escorts, deliv- deficit. Minor combat vessels, which eries of minor combat vessels reached jumped 25% to a new monthly top, were a new high at 70, 400 tons; half of this the only group to register a gain over was accounted for by 27 DEs-five more June: than in June, one more than scheduled. This was a new peak, and further evi- Deliv- G Change % Change dence that the DE program is really eries from from moving (kP-July23'43,p9). Corvettes (tons) June Sched. and frigates remained in the doldrums- Major combats 52,000 -48% -7% only two of nine scheduled came through. Minor combats 70,400 +25 -31 48,000 And completion of two aircraft carrier Landing ves.. -7 -9 escorts was unchanged from June: four Aux. & trans. 14,600 -35 -43 were scheduled. Total 185,000 -19% -22% Although moderately below first-of- Largest major combat vessel com- the-month expectations, landing and pleted was the 11,000-ton aircraft car- raiding craft scored smart gains over rier "Cabot. II This was followed by June: 54% and 86%, respectively. But CONFIDENTIAL WAR PROGRESS 8 CONFIDENTIAL landing force vessels (LSTs, LSDs, and the scheduled and the June valuation. LCIs), representing almost three-fourths Including two barges tardily reported, of the landing vessel program, were 21% last month's deliveries (measured in lower and failed to make schedule by units) duplicated the June total of 158 17%. That was enough to drop the land- vessels (WP-Aug6'43,p5); this, however, ing-vessel group below June and schedule. was 10 under'schedule. Deadweight ton- nage of 1,660,000 was just about even Merchant Ships with the previous month, but 3% off Preliminary figures on the value put schedule. Liberty ships, the biggest in place on merchant vessels showed item, performed poorly; their $218,000,- little change from June. Deliveries, 000 valuation was 5% under both sched- at $334,000,000 were 4% below both uled and June deliveries. CMP's Round 3: Toward Realism Carbon steel requests still exceed supply, time Commission, and the Aircraft Re- but the margin narrows from 38% to 27% sources Control Office-received the screening cuts difference to 20%. Mili- bulk of the total: 45.6% as against tary claimants get enough for programs. 43.6% in the preceding quarter. The Operations Vice Chairman received the EXPERIENCE HAS BEGUN to tell in the largest single allotment-3, 322,000 operation of the Controlled Materials tons-primarily for B products, a large Plan. Claimant agency requests for al- part of which ultimately wind up in lotments of carbon steel-"controlling" military end products. The Army was controlled material-were far more re- the next largest recipient. How the alistic for the fourth quarter than in carbon steel was distributed follows: the previous round. Bills of materials submitted were Allotment %,of Total generally lower, "concealed" contingency (short tons) Allotment reserves less frequent, arithmetical Mil. claimants 7,697,000 45.6% errors and duplications fewer. And al- ARCO 272,000 1.6 though requests still exceeded estimated Army 3,210,000 19.0 supply by a wide margin-27% overall- Navy 1,640,000 9.7 they came alot closer than in the third Maritime 2,575,000 -15.3 quarter, when requests ran 38% ahead of Export claimants. 1,947,000 11.5 the estimated supply. OLLA 1,320,000 7.8 OEW. 233,000 1.4 BULK FOR MILITARY Canada 394,000 2.3 And after fourth-quarter requests Nonmil. claimants 6,461,000 38.2 were screened by WPB's Program Bureau Alum. Magn 30,000 .2 to eliminate errors, overstatements, WFA 685,000 4.1 duplication, etc., the excess over es- NHA. 65,000 .4 timated supply WELB brought down to 20%. PAW 510,000 3.0 There was the customary overallot- ORD 34,000 .2 ment of 10%. Once again the four mili- Steel 55,000 .3 tary claimants-the Army, Navy, Mari- OCT 1,380,000 8.2 CONFIDENTIAL AUGUST 14, 1943 CONFIDENTIAL 9 Allotment % of Total In all, the allotments to the mili- (short tons) Allotment tary claimants were cut a fraction of OWU 255,000 1.5% a per cent of their screened requests. OCR 125,000 .7 The following table shows how claimant OVC 3,322,000 19.6 agencies fared in relation to (1) third- Other 795,000 4.7 quarter allotments, (2) their screened MRO 750,000 4.4 requests: Cons. reserve 45,000 .3 Total 16,900,000 % Change % Change Biggest increase over the third quar- From Preceding From Screened ter went to the Office of Civilian Re- Quarter Request quirements-21%. This boost was granted ARCO -3% -2% on the ground that inventories of es- Army 3 -3 sential durable goods and maintenance Navy 8 1 items were dangerously depleted. But, Maritime 17 3 as the above table shows, the allot- OLLA 5 -23 ment was comparatively small: 125,000 OEW 12 -6 tons-less than 2% of the total. Next Canada 2 -6 came the Maritime Commission, with a Alum.-Magn -1 -20* gain of 17%-this to take care of an WFA -25 -5* expanding program, also a change-over NHA -9 -10 in model. Introduction of the Victory PAW 2 -10* ship to take the place of the Liberty ORD -20 No change ship calls for more "lead" time. The Steel -58 -29* period of construction is greater, par- ODT 9 -13* ticularly at the beginning, and the OWU -7 -16* steel must be on the shipway a much OCR 21 -9" longer period of time. OVC No change -16* MRO -3 -11* MORE FOR MARITIME Cons. reserve - No change The Maritime Commission was one of Total +3% -9% the two claimants whose final allotments *% change from original request. actually exceeded their screened re- quests. The Program Bureau estimated Reasons for cuts varied. The Army's that the commission's fourth-quarter reduction was due in large part to the needs actually would run to about 2,- uncertainty surrounding the steel am- 500,000 tons. But the Requirements munition program. The Requirements Committee-after the Army, the Navy, and Committee raised the question whether others agreed to surrender part of their production difficulties would be ironed allotments-allowed the Commission 2, out sufficiently to use the steel for 575,000 tons, 3%more than the screened which they asked. request. The allotment to the Navy The reduction in the War Food Admin- also was higher than its screened re- istration's allotment as compared with quest. The Requirements Committee ac- the previous quarter was due primarily cepted 155,000 tons of steel as a battle- to the seasonal decline in the manufac- damage estimate, as against 110,000 ture of food cans. estimated in screening. In the case of the Steel Division, CONFIDENTIAL 10 CONFIDENTIAL WAR PROGRESS CARBON STEEL BEFORE AND AFTER The Program Bureau and the Requirements Committee got through with fourth-quarter requests. This is what the claimants This is what these re- This is what claimants asked for. quests were screened to. were allotted. OVC ARMY MARITIME OLLA NAVY ODT # MRO Etc. . WFA . PAW * CANADA owu * ARCO OEW OCR ALL * OTHER o - 2 3 o I 2 3 o I 2 3 MILLIONS OF TONS MILLIONS OF TONS MILLIONS OF TONS . Original request The lock of fixed programs and standard bills of materiols does not permit the some type of screening as in the military programs. WAR PROGRESS CONFIDENTIAL AUGUST 14, 1943 CONFIDENTIAL. 11 it was felt that construction of new plants would lag behind schedule. NHA's request was similarly reduced CMP GAINS TIME because construction is expected to fall WITH BACH ROUND of the Controlled behind the program submitted, especially Materials Plan, claimant agencies since Congress cut NHA's appropriation have been getting more time in which substantially. to (1) readjust programs to their The Office of Defense Transporta- actual allotments, and (2) parcel tion's request was reduced because of out allotments to prime contractors. a cutback. in the request for steel for In the first round, claimants re- tank cars. It was felt that the addi- ceived theirprincipal allotments on tion of pipe lines and the improved February 2, or 57 days before the prospect for use of tankers to carry start of the second quarter: they oil would help alleviate the short- did not receive their supplementary age on the East Coast. There was also allotments until March 19, a dozen a cutback in the water transport program. days before April 1. In round two, principal allot- ACCEPTED AT FACE VALUE ments were determined on May 3, or Except in the case of army ammunition, 58 days before the July quarter start- the Program Bureau and the Requirements ed. Supplementary allotments were Committee accepted schedules of themili- made June 3, or 27 days before July 1. tary claimants at face value, despite Fourth-quarter allotments, made the fact that certain programs, such as last week, gave claimants 55 days to airplanes, naval ships, and signal equip- pass out suballotments. But this ment, have been lagging far behind sched- was a real gain. The pie was all ule; no adjustments were made for esti- served out at one time. There are mated future deficiencies. And when the to beno large supplementary shares. final distributions were announced, the military claimants gave indications that the allotments seemed to be about % by Which enough to permit them to meet their Original Requests programs. This opinion was held despite Were Screened Down the fact that in preliminary screening Export claiments -14% -getting rid of errors, duplications, OLLA -17 overstatements, etc.-some of the cuts OEW -6 were severe. The following tableindi- Canada -3 cates the degree to which military and export claimants were screened down by Amajor change inpractice was adopted the Program Bureau: for the fourth quarter. Unlike proce- % by Which dure in the preceding two rounds, no Original Requests supplementary allotments will be made Were Screened Down except for emergency construction from Military claimants -9% the reserve. And if a claimant agency ARCO -2 wants 'to expand a particular schedule, Army -7 the necessary steel or copper will have Navy -7 to be drained from some other of its Maritime -12 programs. CONFIDENTIAL 12 CONFIDENTIAL WAR PROGRESS June was in guns and ammunition, the Less to the Soviet Russian total dropping from $19,000,000 in May to $1,500,000. This represented June lend-lease exports to Russia lowest only 1% of total shipments in this cate- for year; tank movement halted; planes, gory, whereas in February the Russians guns, ammunition declining. U.K., India were taking 32%. shipments soar to new highs. In February, Russians were getting 38% of lend-lease planes; in June, only SIGNIFICANT CHANGES are taking place in 15%. lend-lease exports to Russia. June ex- The only Russian items to show in- ports, at $138,000,000, were the small- creases for June were watercraft, up est for any month this year-39% below from $2,000,000 to $6,000,000; agri- the April high of $227,000,000. Where- cultural products, $28,000,000 to $32,- as back in February exports to Russia 000,000; industrial products, $44,000,- amounted to 35% of all lend-lease ship- 000 to $62,000,000. In none of these in- ments, in June the proportion was only stances, however, were June figures 17%. In 1942 Russia's percentage was highest for the year. 28%. The decline has been general through- 54% TO UNITED KINGDOM out the munitions list-guns, ammuni- Lend-lease exports to the United tion, tanks, personnel carriers, trucks, Kingdom reached a new high in June, up planes. For the second consecutive $40,000,000 to $427,000,000. This was month, June exports to Russia did not 54% of total lend-lease for the month, include a single tank. This reflects and was the first time since 1941 that declining U.S.S.R. requests for tanks. the United Kingdom has received more Last November 350 were shipped. than 50%. Agricultural products showed Shipment of other types of vehicles the greatest increase-$79,000,000 to (universal carriers, trucks, and scout $112,000,000. cars) to Russia also fell from $29,000,- During May and June, shipments to 000 in May to $18,000,000. In June, Britain included 25 merchant vessels- Russia's share of lend-lease shipments 14 coastal tankers, and 11 coastal cargo of tanks, trucks, etc. amounted to only ships. These were not included in the 10%, a sharp reduction from the 50% program announced recently by the Presi- during the first half of 1942. dent to transfer Liberty ships to Eng- Planes, too, have followed a downward land at the rate of about 15 to 20 per course since April: month over a 10-month period. Plane Shipments INDIA IN SPOTLIGHT to Russia Lend-lease shipments to India are January $21,000,000 booming. June exports amounted to $65,- February 40,000,000 000,000-double May's $31,000,000, and March 38,000,000 five times greater than the $13,000,000 April 55,000,000 for April. Increases have been in guns May 45,000,000 and ammunition, tanks, and agricultural June 19,000,000 and industrial products. Total shipments to the entire British The largest percentage decline for Empire were up only $5,000,000 for June CONFIDENTIAL AUGUST 1943 CONFIDENTIAL.. 13 to $624,000,000, the boosts to the United in order to meet production schedules, Kingdom and India being at the expense according to Estimated Labor Require- of the Middle East, Africa, Australia, ments for the Shipbuilding Industry and New Zealand. (confidential; pp. 46). The study in- On thewhole, June lend-lease exports dicates that turnover is the industry's were down $30,000,000 from the record most serious labor problem, and that May high of $821,700,000. employment of women is increasing stead- ily, particularly in navy shipyards. REPORTS ON REPORTS ( Department of Labor, Bureau of Labor Statistics) Men for Ships Employment in'shipyards must increase Manpower Again from 1,608,000 in April, 1943, to an Paper consumption must be reduced all-time peak of 1,919,000 by December 21% below current demands in the third LEND-LEASE TO RUSSIA HITS NINE-MONTH LOW U.S.S.R's share in June falls to 17% of exports,as compared with 35% in February. Recent trend has been away from munitions and toward industrial products. 240 100 IBO 90 Lend-Lease to Russia Munitions to Russia 180 75 120 60 Exports Exports 120 50 60 30 EXPORTS IN MILLIONS OF DOLLARS 60 LEND-LEASE TO RUSSIA AS% OF COMPARABLE TOTAL EXPORTS IN MILLIONS OF DOLLARS as % of Total 25 o 0 1942 1943 os %of Total 120 50 LEND-LEASE TO RUSSIA AS % AS% OF COMPARABLE TOTAL Industrial Products to Russia 0 o 1942 1943 os % of Total 60 80 60 25 Agric. Prod. to Russia Exports Exports os of Total 0 o 0 0 1942 1943 1942 1943 WAR PROGRESS CONFIDENTIAL 14 CONFIDENTIAL WAR PROGRESS quarter of 1943 and perhaps 26% in the (Department of Commerce, Bureau of For- fourth quarter, according to Pulp and eign and Domestic Commerce) Paper (confidential: pp. 18). Princi- pal reason: 18% drop in domestic pro- CMP Advances duction of wood pulp this year, attrib- CMP is operating with increasing uted by the report to shortages of man- satisfaction, according to Operation of power and equipment, and reduced incen- the Controlled Materials Plan (confi- tives to the industry, caused by price dential; pp. 10). Advance scheduling ceilings. and stabilization of delivery dates (War production Board, Document 231) have reduced activity of the "squealo- meter." The memorandum outlines present Building Decline problems and plans for solving them, Construction (confidential: pp. 19) particularly in the case of B products. appraises construction in 1943 through (War Production Board, Document 236) the second quarter. Volume, though still large, has declined in accordance [This record is an attempt to select from the many documents coming to the attention of WAR PROGRESS with plans, but substitution of non- those studies which would be of most interest to critical for critical materials is re- readers. The list is by no means comprehensive, and sulting inmore building than otherwise no attempt has been made to evaluate reports for accuracy. Whether reports are available depends on would be possible. the policy of each individual agency. SELECTED MONTHLY STATISTICS Labor Force-Cost of Living - Food Production Latest Preceding 2 Months 6 Months Some Year Some Month Month Month" Month Ago Ago Ago . 1939 1937 LABOR FORCE-TOTAL - (millions) 55.5 54.6 53.0 52.4 56.8 n.a. n.a. Employment 54.3 53.4 52.1 51.0 54.0 Mole 37.2 36.7 36.2 36.3 39.9 Female 17.1 16.7 15.9 14.7 14.1 Unemployment 1.2 1.2 0.9 1.4 2.8 n.a. n.a. COST OF LIVING-ALL ITEMS (1935-39=100) 123.8 124.8 125.1 120.7 117.0 98.9 103.2 Food 139.0 141.9 143.0 133.0 124.6 94.3 106.3 Other than food 116.1 116.1 116.0 114.3 113.0 101.2 101.7 FOOD PRODUCTION Dairy Products (million pounds) Butter, creamery 201.7 201.1 202.5 198.2 Cheese 116.3 131.4 88.8 82.1 Evaporated Milk 386.0 397.6 268.8 252.5 Meats Total (incl. lord, million pounds) 1,603.0 1,531.0 1,083.0 880.0 Beef and veal 421.2 609.8 444.3 456.7 Lamb and mutton 65.9 58.9 53.2 54.3 Pork, including lard 1,115.9 861.8 585.8 368.5 Lard 191.0 151.0 103.5 52.4 Poultry and Eggs Eggs (millions) 5,356.0 4,745.0 3,865.0 1,677.0 Poultry (receipts of 5principal morkets, million pounds) 14.7 32.5 28.5 21.9 *July: Food Production, June. n.a. Not available. . Seasonal influences invalidate nonth-to-month comparisons. CONFIDENTIAL AUGUST 14, 1943 CONFIDENTIAL 15 PRODUCTION PROGRESS Ground Army Munitions Ground Army Ordnance and Ground Signal Equipment Combat Vehicles and Equipment 1500 500 400 Schedule 1000 300 Schedule Actual 200 500 Actual 100 o o 1942 1943 1942 1943 Combat Vehicle Signal Equipment and Combat Vehicles Tank Connon 40 500 VALUE DELIVERED-MILLIONS OF DOLLARS 400 30 300 Schedule 20 Actual Schedule 200 VALUE DELIVERED-MILLIONS OF DOLLARS Actual 10 100 o o 1942 1943 1942 1943 Army Ground Signal Equipment Army Ammunition- - Total 200 500 400 150 Schedule Schedule 300 100 200 Actual Actual 50 100 0 o 1942 1943 1942 1943 Schedules 05 of Julyl WAR PROGRESS CONFIDENTIAL 16 CONFIDENTIAL WAR PROGRESS PRODUCTION PROGRESS Ground Army Munitions (continued) Artillery and Equipment Artillery and Tank Cannon Ammunition 150 150 100 100 Schedule Schedule Actual Actual 50 50 o 0 1942 1943 1942 1943 Antiaircraft Guns and Equipment Antiaircraft Ammunition 150 50 VALUE DELIVERED-MILLIONS OF DOLLARS 40 Schedule 100 30 Schedule Actual 20 50 VALUE DELIVERED-MILLIONS OF DOLLARS 10 Actual o o 1942 1943 1942 1943 Small Arms and Infantry Weapons Small Arms and Infontry Weapon Ammunition 100 300 Schedule 75 Schedule 200 50 Actual Actual 100 25 o o 1942 1943 1942 1943 Schedules os of July1. WAR PROGRESS CONFIDENTIAL WAR PROGRESS Confidential The President (British Secret) so to = THE THE 4 A 1973 A THE s CRP: Buffalo's Manpower Plan Number 153 August 21, 1943 CONFIDENTIAL NUMBER 153 WAR PROGRESS AUGUST 21, 1943 CRP A New Approach to Manpower. Buffalo's Controlled Referral Plan restricts all male hiring by employers to those WMC EXPANDS JOB REFERRAL referred to them by USES; channels Ia- AMONG the minimum standards for all bor to most essential war production jobs. local manpower statilization plans, announced last week by the WEI Man- BUFFALO, top-ranking war production power Commission, is one permitting center, has been a critical menpower the estatlishment of controlled re- area since April, 1942, when the War ferral forall critical occupations. Manpower Commission first began system- The basic idea is to direct skilled atically to classify labor areas on a workers to the most urgent war jobs scarcity basis. Right now Buffalo is through the U. S. Employment Service. in the spotlight as the nation's lat- Fuffalo hasnot only incorporated oratory for a manpower experiment. this principle in its local manpower Six months after Pearl Harbor, di- agreement, but also (1) extended it rect war contracts in its 700-odd man- to all males, and (2) set up 8 plan ufacturing plants doubled-from $1,- for lator priorities. Hence, an 000,000,000 to $2,000,000,000, later analysis of the Fuffelo experience expanding to $2,800,000,000 at the be- has national interest. ginning of 1943. Unemployment fell rap- idly. Then an up-and-coming local air- craft industry began to siphon manpower 38% of all war workers in the Puffalo- from the area's foundries, steel mills, Niagara area. chemical concerns, and otherheavy goods Many of those jobholders represented companies. Among those hard hit by this (1) in-migrants; (2) previously unem- ebting supply of labor were such manu- ployed; (3) new additions to the lator facturers as American Magnesium, Beth- force, mostly women; and (4) white col- lehem Steel, du Pont, General Cable, lar workers such as clerks, bookkeepers, Lake Erie Engineering, Otis Elevator, tradesmen, and salesmen. But they also Republic Steel, Worthington Pump. represented workers wholeftlocal heavy goods concerns for higher psy and more NO MANPOWER DRAIN PLUG pleasant working conditions in the air- The result was a striking shift in craft industry. the character of employment around the With the added factor of selective Niagara frontier. Before the war, Bell service demands, heavy industry around Aircraft and Curtiss-Wright employed Puffalo just couldn't plug its manpower around 2,000 persons, an insignificant drain-despite the fact that its output portion of the Buffalo labor force. Ey of basic materials such as steel, chem- May, 1943, the total had climbed to icals, castings, and brass mill prod- 77,000; including Chevrolet's two plants, ucts was the keystone of muni tions pro- converted to manufacture of airplane duction. Moreover, the possibilities motors in 1941, the sum for these three for attracting women were limited by companies was around 90,000 persons- the hot end heavy, muscle-demanding CONFIDENTIAL 2 30113 2 CONFIDENTIAL WAR PROGRESS character of heavy-goods manufacture. a tool-and-die maker. The chances are Production schedules became increas- it would run an ad, check with the lo- ingly difficult to maintain. cal U.S. Employment Service office, Then, on June 14, 1943, the Buffalo voice a hope and 8 prayer-and wait. Controlled Referral Plan was put into If a tool-and-die man turned up, he'd operation. The country's first-and probably be hired on the spot. most thorough-system of manpower con- trol in accordance with labor priori- USES CONTROLS HIRING ties, it had been in process of devel- Now put that foundry in Buffalo, opment some two months before. In fact, North Tonawanda, Niagara Falls, orany- authority to carry out such a plan had where along the Niagara frontier. The been delegated to each of the 12 WMC concern might run the ad and would cer- regional directors as early as February, tainly get in touch with USES. But from when the chairman of the War Manpower there on the resemblance to Pittsburgh Commission, acting under Executive Order -or any other section of the country- 9279, authorized the systematic distri- would end. For employers in the Buffalo- bution of labor supply in all critical Niagara area are restricted in hiring manpower areas. males to those referred to them by the USES-manpower is being directed to the MEANING OF CRP. most essential channels. And several Spark plug of this human machinery methods of enforcement are available, is the Buffalo-Niagara Labor Require- including withdrawal of WMC assistance ments Committee. Comprising five men- in training and recruiting labor. an Army officer, a Navy officer, the War Production Board district manager, HALTS EMPLOYING AT GATE the area director of WMC, and a retired The fundamental idea behind this local industrialist-this committee manpower channeling is to determine not meets once a week to map its plans. only what 9 plant makes, but how its Here's an idea of what CRP means: product fits into the whole pattern of Suppose a foundry in Pittsburgh needs war output; how it stacks un when set against the nation-wide job of main- taining production schedules. And the IN THIS ISSUE: basis for that determination comes from Washington, where the Vice Chairman for CRP-A NEW APPROACH TO MANPOWER 1 Labor Requirements draws upon the pro- MIDMONTHLY PLANE TALLY: W-6 CUTS GOAL 5 duction knowledge of the WPB industry KEY STATISTICS OF THE WEEK divisions, the Army and Navy, the Mar- 7 itime Commission, and the Aircraft Re- ORDNANCE REQUIREMENTS ON PLATEAU 8 sources Control Office. Thus, if the ASP-THIS YEAR AND NEXT 9 foundry was of urgent importance to the WAR PROGRESS NOTES overall program it would be entitled 12 to first call on male labor along the REPORTS ON REPORTS 12 Niagara frontier. But the concern would SELECTED MONTHLY STATISTICS 13 not do any "hiring at the gate. II Under the Controlled Referral Plan it's up PRODUCTION VESSELS) PROGRESS (ARMY, HAVY, MERCHANT 14-16 to the local USES to try to locate the tool-and-die man, conduct the initial CONFIDENTIAL 2 30113 AUGUST 21,1943 CONFIDENTIAL.. 3 interview, and then "refer" him to the may be that the item it makes is in am- foundry. ple supply around the rest of the coun- Heart of the Buffalo plan is the try: lower production in Buffalo would "priority list, II a docket of companies not jeopardize the overall war program. which have first call on the local sup- There's the case of a local plant mak- ply of male labor (no restrictions are ing cartons to pack aircraft parts for placed on the hiring of women). Revised a builder of heavy bombers. The owner and reviewed each week by the five-man was anxious to get more men. But a Labor Requirements Committee, then sent checkup showed that his contract could to the local USES offices-which have be filled easily outside the Buffalo- exclusive control overmale hiring-the Niagara area. He dropped the request; priority list is CRP's sine qua non for there was no chance for a labor prior- placing manpower where it's needed most. ity. Then there was the time a manu- For instance, the mere fact that a facturer supplying bottles to the two company isdoing essential work doesn't largest food distributors in the United mean it goes on the priority list. It States asked for some male labor-not THE LONG AND SHORT OF MANPOWER Here are the critical and the surplus labor market areas. 8 o 80 o o Acute ones, and those ontici- pating 0 shortoge within 6 months. o Plentiful areas,ond those onti- cipating 0 shortage ofter 6 months AUGUST 1,1943 PROGRESS CONFIDENTIAL 2 30113 4 .CONFIDENTIAL WAR PROGRESS for himself, but for aplant in Niagara but under a special arrangement: part Falls turning out paper to package his of its recruiting will be done outside product. The plea was denied; there the Buffaio market; every male hire was mill capacity for theitem in other will be matched by a woman.) sections of the country where manpower was less critical. SLOW TO ADD WOMEN Another-and major-resson for not Shortly after the plan went into being placed on the priority list is effect, asurvey of these aircraft plants underutilization of labor, especially for the Labor Requirements Committee the failure to hire and train women in revealed that all of them were using every possible case. men instead of women for simple opera- Fven though airplanes rate a top tions such as assemtling, light drill- priority in the war program, two of the ing, punch-press work, electrical wir- three aircraft manufacturers around ing, and routine inspections. Result: Fuffalo have yet to be placed on the plane plants were classified as non- preferred register for local manpower. priority firms. (The third, with a steep climb in sched- On the other hand, nearly all of the ule ahead, was put on a fortnight ago, requests from plane subcontractors in THE SQUEEZE PLAY IN MANPOWER A new employment high and 0 near-irreducible minimum in unemployment reflect difficulties in drawing new workers into the labor force. 60 60 UNEMPLOYED; WOMEN LABOR FORCE MILLIONS OF PERSONS 40 40 MEN 20 20 LABOR FORCE MILLIONS OF PERSONS o 0 A M JJASONDJFMAMJJ A in 0 N D J F M A M J J A $ 0 N 0 J F M A M J J 1940 1941 1942 1943 WAR PROGRESS ABOUT 1,700,000 WORKERS WILL BE NEEDED IN MUNI- EMPLOYEES-WILL HAVE TO COME FROM A SHIFT OF WORK- TIONS INDUSTRIES IF PRODUCTION SCHEDULES ARE TO BE ERS FROM NONMUNITIONS TO MUNITIONS INDUSTRIES. MET THIS YEAR. PART OF THESE LABOR REQUIREMENTS THE WAR MANPOWER COMMISSION HAS ALREADY MADE A WILL BE MET BY THE NORMAL INCREASE IN THE LABOR START IN THIS DIRECTION BY ENLARGING THE LIST OF FORCE: BUT THE GREATER PART-AT LEAST 1,000,000 NONESSENTIAL OCCUPATIONS. 2 30113 CONFIDENTIAL AUGUST 21, 1943 CONFIDENTIAL 5 MIDMONTHLY PLANE TALLY; W-6 CUTS GOAL AIRPLANE PRODUCTION during the first number for both 1944 and the last five 15 days of August reflects continu- months of 1943. The August schedule ation of the summer slump, accept- is cut 115 planes, accounted for in ances falling 6% number behind the large part by a cutback in heavy bomb- same period for July-2,764 as against ers at the Boeing (Seattle) and Ford 2,918-and 4% behind on a weighted plants. basis. Output represented less than Despite the reduction, the sched- 33% of the new August schedule (W-6) uleisstill formidable. The W-6 goal of 8,503. To attain the goal in the of 92,630 planes for 1943 leaves 48,- remaining 16 days, daily production 160 to be built in the last fivemonths, will have to be stepped up to 359, 3,700 more than were turned out in as compared to 184 in the first 15 the first seven and more than were days. produced in all of 1942. Bomber output held at the same rate Two major changes account for the as July, but fighters dropped from reduction in the 1944 schedule to 828 to 730; trainers from 690 to 596. 124,500. Output of the Martin B-26 Best showing was made by transports, Marauder is cut 2,250, representing up from 272 to 291. 81% of the total cut for next year. The summer production slump re- Discontinuance after this November sulted in another monthly revision of the C-76 Caravan, two-engined ply- of the schedule-W-5 to W-6-which wood medium transport, accounts for lowers goals still further: 2% in a reduction of 1,070 units. the area-and that covers about three- late this month. It wasn't a question quarters of all machine shops-have been of the plant's importance. Rather, the granted. Here the idea is to keep open committee knew that similar plants were the flow of supplies from these smaller using women as welders, machine opera-1 firms-where most of the work is heavier tors, assembly hands, and parts inspec- and more complex than in plane plants tors; yet this one had never hired a and not so suitable for the employment woman in its' 100-year history. Within of women. a few weeks, the company had installed But even if a company is placed on facilities for women and simplified its the priority list, there is no assur- operations. Women went on the payroll ance that it will remain. The Labor Re- last Monday. quirements Committee regularly reviews the labor status of such companies in FORMALITY OUT THE WINDOW the light of recent developments. Still, the fact that a company isn't One example of what can happen comes on the priority list doesn't mean it from a producer of heavy machinery, won't receive any men at all. When a originally put on the list to complete manufacturer of oil and gas storage a rush contract for Russia. That ac- tanks needed four men, the order was complished, the company was informed it filled on a telephone call. It was an was slated to lose its preferred status established concern doing war work. The CONFIDENTIAL 2 30113 6 CONFIDENTIAL WAR PROGRESS committee was familiar with its labor analysis, it is he who determines the problem and didn't stand on formality. fitness of each job seeker/ He is not USES frequently sends nonpriority compelled to hire a particular worker companies younger, older, and handi- merely because the man has a referral cappedmen not wanted bypriority firms. card from USFS. But he must use that Thus, a Buffalo hotel recently received man in a job which will utilize his a bookkeeper-an aged one, but capable highest skill: A turret-lathe operator of filling the Between schoolboys couldn't teplaced on light bench work; and older men-not needed by priority a carpenter couldn't be asked to work firms-one airplane manufacturer man- in a foundry: a watchmaker couldn't be aged to obtain more males than any'sin- expected to do welding. (However, he gle company along theNiagara frontier. might be put on a precision job, such Indeed, during the eerlier weeks of CRP, as bomb-sight assembling.) nonpriority firms were sent more male labor than those in the preferred cat- LIMITS LABOR TURNOVER egory-60 out of every 100 applicants. Incidentally, a feature of this cen- But that was when only 25 or 30 man- tralized control of male hiring is its ufacturers (mostly foundries and chem- possibilities for limiting labor turn- ical companies) were on the preferred over. Day after day, USFS interviewers list. Today the docket has grown to are faced with men who want to leave many times that number. And companies their jobs. It may boil down to a fam- engaged in essential civilian work such ily problem-man and wife on the same as transportation, food processing, shift and no one to take care of the publicutilities, repairservices, health baby; perhapsit's the idea that a trans- and welfare, are heavily represented. fer from one equally essential job to Meanwhile, the proportion of referrals another can te arranged, despite the to nonpriority firms has dropped to 25 fect that the transfer doesn't involve of every 100. Eventually, the ratio a higher skill (a milling machine op- may fall to five out of every 100. The erator can't leave one plant to run a pool of available male labor is drying milling machine at another plant for up steadily. As the scope of the plan higher pay); or maybe it's just plain widens-and as the Labor Requirements wanderlust. Whatever the cause, USFS Committee perfectsit experience-fewer does what it can. That family problem and fewer nonpriority firms will be can be settled by a phone call to the able to hire men. employer, suggesting that the husband beputononeshift, shift, the wife on another. FREEDOM OF CHOICE As for the rest, an explanation of the Whether referred to a priority or a rules and regulations is usually suf- nonpriority firm, workers are not com- ficient. Asaresult, out of some 40,- pelled to accept employment. Asamat- 000 job seekers funneling through the ter of fact, 25% of all men referred USFS between June 14 and August 7, around to jobs never turnupat the employer's 6,000-almost one out of every seven- gate. For one reason or another, they were returned to their present employ- change theirminds. But of the 75% who ers. do showup, two out of three take jobs. One of the striking facts about the Under CRP, the employer has a simi- Buffalo plan is its flexibility-its lar freedom of choice. In the last ability to meet out-of-the-ordinary CONFIDENTIAL 2 30113 AUGUST 21,1943 CONFIDENTIAL 7 problems with dispatch. Here's an il- showed that the plant was meeting sched- lustration: ule with its existing force. But it One Saturday night apolyvinyl chlo- also showed that selective service de- ride plant in West Virginia, one of two mands would slice the company's manpower in the U.S., burned completely. The within a month, causing it to fall be- only other producer of this chemical- hind schedule. The request was granted. used extensively as a substitute for rubber-was in the Buffalo area. WPB NO CHECK ON STRAGGLERS headquarters in Washington called Buf- The Buffalo plan has its rough spots. falo. The situation was explained. On No method has been established to deter- Monday, the local polyvinyl chloride mine exactly what becomes of the men who plant was lined up for whatever male constantly stream out of Buffalo jobs labor it might need to help offset the without a certificate of availability, loss from West Virginia. pull up stakes, and are no longer seen This flexibility, moreover, doesn't at USES. begin and end with the widening of ob- Besides, althoughall large employers vious choke-points in the production of labor in the area are familiar with program. It extends to factors which the basic mechanics of controlled re- threaten tocut off future output. When ferral, many smaller concerns are not. a manufacturer of aluminum castings Typical is the case of a variety store asked for more men, the regular check whose manager thought the plan applied of the Labor Requirements Committee- only to males over 21. Obviously, some through WPB, the Army, Navy, etc.- hiring in defiance of the regulations KEY STATISTICS OF THE WEEK Lotest Preceding Month 6 Months Year Week Week Ago Ago Ago Wor program- Checks paid (millions of dollars) 1,669 1,652 1,600 1,395 1,169 Wor bond soles (millions of dollars) 198 147 212 220 145 Wholesole prices (1926 = 100) All commodities 102.7 103.0° 102.9* 102.1 98.9 Form products 122.9* 125.0° 125.0' 118.6 106.0 Foods 105.1 106.6 106.5 10.5 100.5 All other than form products and foods 97.3° 97.2° 97.0" 96.4 95.8 Petroleum Total carloadings 56.661 53,169 59,485 52,197 52,331 Movement of cors into the East 29,418 27,413 33,302 27,168 26,981 Eost coast stocks for civilion use (1940-41=100 Seos. Adj.) 34.5 34.7 35.0 36.5 548 Total stocks of residual fuel oil (thousands of borrels) 66,44* 66,714 67.017 70,666 77,360 Bituminous Cool: Production (thousands of short tons, doily overage) 1,967 2,028* 1,960 1,980 1,848 Exports (no of freight cars unlooded for export Friday, excl. grain) Atlontic Coost ports 2,665 2.701 2,343 1,514 1,518 Gulf Coost ports 345 336 351 335 442 Pocific Coast ports 1,410 1,320 1,327 906 EC8 Unused steel capacity (% operations below capacity) 1.2 1.6 1.7 0.5 2.8 Department store soles (% change from o year ago) *4% *7% *20% *45% 0 p. preliminary Γ. revised CONFIDENTIAL 2 30113 8 CONFIDENTIAL WAR PROGRESS goes on; but there is every reason to uted among themost essential end uses. believe itistrifling when compared to Germany made this discovery as early as the total. 1934, England in 1940. With manpower The Controlled Referral Planistased fast becoming the overall bottleneck in on this concept: when thereisn't enough U.S. warproduction, other hard-pressed manpower to 80 around, labor must be areas throughout the country are study- directed to the most important jobs, ing the Buffalo experiment for a solu- just ascritical materials are distrib- tion of their own labor problems. Ordnance Requirements on Plateau Program for 1944 returns to 43 level; drop for ground ordnance and ground signal due in 1945. New $13,200,000,000 goal equipmentisnot enough to make it pos- is close to current production rate. Major sible to meet the goal inall categories; shift is from tanks to ammunition. production to date, plus rising sched- ules for the remaining months, is still THF ARMY SUPPLY PROGRAM has had its about $700,000,000 short. But there semiannual overall revision, and-as of isa chance that 1944's reduced program August 1-1944 requirements for ground can be matched by output; with only ordnance and ground signal equipment moderate increases later this year, are on the books at apreliminary figure production can reach the level called of $13,200,000,000. Only a month ago for in 1944. the figure was $16,330,000,000. This 19% cut brings the goal for TANKS vs. AMMUNITION next year down approximately to the new Thereareproduction problems in the figure for 1943-$13,300,000,000, a 4% new programs which do not show up in reduction from this year's requirements overall figures. Major have been as of July. Thus we no longer have a made between categories and individual year-to-year rise ahead. And after 1944 a drop is in prospect. The 1945 items. Accordingly, the problem of sharp expansion continues in certain requirements, appearing for the first types of materiel. To illustrate: in time, are $11,627,000,000; but at this a sample of 63 major items, require- date they are far from final. Unquestionably, the reduction in both ments for 36 with expanding programs rise from $4,600,000,000 in 1943 to 1943 and 1944 requirements takes into $7,000,000,000 in 1944. On the other account production lags and thus makes hand, requirements for the 27 items for the program more "feasible" in some which need is declining fall from $5,- categories. But certain items for which 500,000,000 to $2,800,000,000. we have the capacity-notably tanks The problem of conversion comes to and other combat vehicles-are slashed the forein combat vehicles-drastical- well below current output. So this ly cut in 1944--and ammunition, which cutback ismore than a revision to bring is in for a big year-to-year rise de- overambitious programs down to produc- tion reality; it reflects battle ex- spitea substantial reduction in require- ments. Their facilities are dissimilar, perience and ripening strategy. and the resources devoted to tanks will The reduction in 1943's requirements be directly available to shells in only CONFIDENTIAL , 30113 AUGUST 21,1943 CONFIDENTIAL 9 small measure. There will be fewer 1943 1944 difficulties where the'shift is between July Now July Now items of the same category-for example, (tillions of dollars) major small arms and infantry weapon SA & infan- emmunition items, in which the year-to- try weapons .82 .82 .66 .72 year increase ismade up of items which Ammunition 5.30 4.87 8.61 6.80 rise $790,000,000 while others decline Ground sig- $270,000,000. nal 1.17 1.29 1.23 1.53 How the weight of major categories Total $13.85 $13.31 $16.33 $13.20 shifts from 1943 to 1944 (and how the The 1943 requirements reductions, programs for each year have been re- obviously, are heaviest in ammunition, vised) is apparent in this table: especially for small arms and infantry 1943 1944 weapons, which is down 10%; and for ar- July Now July Now tillery-and tank guns, down 6%. Anti- (billions of dollars) aircraft guns end equipment drop 5%. Combat ve- Onemain group has hadits 1943 require- hicles & ments increased: self-propelled guns, equipment. $3.63 $3.51 $3.35 $2.10 up 2% or $17,000,000. Artillery & Feductions in 1944 requirementsalso equipment.. 1.36 1.34 1.24 1.02 are great in ammunition-small arms AA guns & falling off 22%, and artillery dropping equipment.. 1.57 1.48 1.24 1.03 21%. Fut there is also a 39% cut in ASP- THIS YEAR AND NEXT PPELIMINARY ANALYSIS of the Army Sup- ments as of July and $3,100,000,000 ply Program as of August 1 shows a from those for 1944. Cuts fell largely total of $20,400,000,000 for this in the "capital goods" items, such year and $21,050,000.000 for 1944. es funs. Thus it appears that the These figures are exclusive of Medi- program for equipment items is well cal Corps procurement, substantial on its way to maturity and from now Air Forces items (which are up ap- on production of items to keep them preciably for 1944), and some items functioning will be stepped up. for foreign governments, for which By procurement services, the old complete data are not now available. and new programs are: It is expected, however, that the 1943 1944 ASP for 1944-nonmunitions as well July Now July Now as munitions-will not be greatly (tillions of dollars) changed in the aggregate by the Aug- Ordnance $14.7 $13.7 $17.2 $13.8 ust revisions. A 1945 figure appears Signal 1.7 1.8 1.7 2.1 for the first time-$18,850,000,000; QMC 2.5 2.4 2.8 2.0 at this early date it is by no means CWS. .3 .4 .4 .4 complete. Transport .7 .6 .6 1.0 The August 1 revisions knocked Fngineers. 1.5 1.6 1.5 1.8 $1,360,000,000 from the 1943 require- Total $21.5 $20.4 $24.2 $21.1 CONFIDENTIAL 2 30113 10 CONFIDENTIAL WAR PROGRESS combat vehicles, including tanks-a re- the 1943 cutback. But a large number duction which for the most part has al- of new 76mm. AT guns have been added. ready shown up in schedule revisions. Antiaircraft guns and equipment are Self-propelled guns have been cut back reduced slightly in this year's new re- about one-fourth and AA guns, 17%. Two quirements. The new 4.7-inch gun takes main ordnance groups were raised: wheeled a cut of more than 20%, however, and artillery by 2% and small arms and in- its schedules for the last five months fantry weapons by 9%. Ground signal of theyear should, accordingly, be re- increases are substantial in 1944-25% duced about 45%, Requirements for 1944 -and are shared by all types of equip- are cut nearly one-fourth with the 4.7- ment. incher off 40% and the 40mm. Bofors 25%; The 1945 program carries ammunition but requirements for certain directors at a higher rate than in 1944: all other and optical height finders are more programs except tank gunsare lower than than doubled from earlier plans. The 1944. Sharpest drops are in wheeled 1945 program is $100,000,000, compared artillery and antiaircraft guns. to $930,000,000 for 1944. Small arms and infantry weapon re- SPRINGFIELD RECOGNIZED quirements in '43 are unchanged. But Within categories, the revisions in for the first time a 1943 requirement army ground munitions between July 1 is listed for the 1903 Springfield ri- and August 1 ASP look like this: fle, produced until now only as a fill- Reductions are general in the 1944 in for the Garand: at $76,000,000, the requirements for combat vehicles. Se- Springfield requirement approximates verest percentage cuts are in the M3A1 the production schedule. Garand and scout car-to one-eighth of previous carbine requirements for this year are requirements: and in M5 medium armored cut realistically into line with sched- cars-to one-sixth; neither is listed uled output. For 1944, carbine and for 1945. Big dollar cut is $638,000,- Garand requirements are raised-making 000 for the M4 medium.tank. up for the 1943 reduction-to a level Self-propelled guns are little changed which approaches current production in 1943 except for gun motor carriages, schedules. Requirements for .50-cali- up 25%, requiring a doubling of produc- ber machine guns in 1944 are now sub- tion for the rest of the year. In this stantially higher, with the M2 turret item there is an even greater rise in type up from $13,000,000 to $49,000,- next year's requirements-from $70,000- 000; but those for the 30-caliber flex- 000 to $190,000,000. The 25% overall ible machine gun, with great numbers reduction in 1944 requirements for SPs in storage, are substantially lower. is concentrated in the 76mm. gun-chopped down from $600,000,000 to $250,000,000. SCHEDULE CUTS CONFIRMED Wheeled artillery has but one major Artillery ammunition reductions in change inthis year's requirements: the the 1943 requirements fall mostly in 57mm. antitank gun drops 25%, a cut Al- the lighter calibers. Consequential ready made in production schedules. In changes in the 1944 program are elim- 1944, requirements for heavier types ination of the 155mm. howitzer HE 102 increase-e.g., the 155mm. howitzer, shell and cutbacks totaling about $450,- up $11,000,000 or 15%. In contrast, 000,000 in 75mm. gun and howitzer am- 57mm. antitank gun requirements repeat munition. Production schedules for CONFIDENTIAL 2 30113 AUGUST 21,1943 CONFIDENTIAL.. 11 these items have been set high for 1944 for 1943, as now stated, in general to make up for deficiencies in this confirm recent reductions in schedules. year's output; and their 1944 schedules For both 1943 and 1944 the cutbacks are will have to be cut by $650,000,000 to general, with the important exceptions come down to the lowered requirements. of 50-caliber ball and .30-caliber The 1945 requirements for most items armor-piercing: both rise slightly in are somewhat higher than 1944's. Anti- this year's program: next year's the aircreft ammunition changes signifi- AP item is doubled, to $400,000,000. cantly only in 1944 requirements for The program for entitank mine M1 is cut the 40mm. Mark 2 HE shell-off $90,000,- sharply for both years. Most signifi- 000, or about one-third-and the 90mm. cant dollarwise reduction in 1944 re- M71 HE shell-up about one-fifth. Guirements is a $490,000,000 slash in Small erms ammunition requirements .50-caliber AP. CUTBACK IN GROUND ORDNANCE Large reductions in 1944 program bring ASP requirements slightly below 1943's total. Combat vehicles and equipment cut 39%; signal equipment gains. Here are the '43 ASP revisions Here are the '44 ASP revisions JULYT JULY AMMUNITION AUGUSTI AUGUSTI XXXXXXXXX COMBAT VEHICLES AND EQUIPMENT 1943 AA GUNS 1944 AND EQUIPMENT Lotest ASP Lotest ASP $13.3 Billion $13.2 Billion ARTILLERY AND EQUIPMENT GROUND SIGNAL Cut Cut $0.54 Billion $3.1 Billion EQUIPMENT GROUND ORDNANCE GROUND ORDNANCE AND AND GROUND SIGNAL EQUIPMENT GROUND SIGNAL EQUIPMENT SMALL ARMS AND INFANTRY WEAPONS 4 2 o o 2 4 6 8 BILLIONS OF DOLLARS BILLIONS OF DOLLARS WAR PROGRESS CONFIDENTIAL 2 30113 12 CONFIDENTIAL WAR PROGRESS War Progress Notes time (after successful laboratory tests), efficient operations of the new plants may well change the economic structure ALUMINUM WITHOUT BAUXITE of the aluminum industry, lessen depend- BAUXITE HAS ALWAYS been needed to make ance upon Latin-American bauxite. aluminum. But since U.S. bauxite de- posits have been somewhat low-grade, SPEED vs. PRECISION the aluminum industry has been chiefly INCENTIVE pay systems don't always re- dependent upon high-grade bauxite from sult in increased production. When the British and Dutch Guiana. Over the Alcoa plant at Bridgeport, Conn., mak- past year, limitations of mine pro- ing aluminum cylinder heads, instituted duction and shipping forced aluminum a bonus system, workers speeded output producers to increase reliance upon but rejections increased. This meant domestic deposits, even though the use deductions from pay for the rejected work slowed up the processes of plants geared and disputes between workers and manage- to make the metal out of high-grade ment over rejections. Even an increase bauxite. To overcome this handicap, a in the number of inspectors-to handle lime-soda-sinter process was developed rejections as promptly as possible so permitting processing of lower-grade that workers could find out where they bauxite without hampering production. stood-did not end all bickering. Meanwhile, various experiments with Difficulty here was that the speedup new processes to make aluminum without in production was obtained mainly at bauxite have been going on in the in- the expense of precision. terests of reducing dependence upon Latin-American bauxite, adequate supplies of which are by no means assured. As REPORTS ON REPORTS a result, fivenew nonbauxite plantsare Trade Balance In Fats in various stages: U.S. foreign trade in fats and oils tipped to the export side by 2,000,000 Plant Raw Material Capacity pounds during the first four months of ( 000 lbs.) 1943; in the same period of 1942, the Salt Lake City. Alunite 40,000 records show net imports of 166,000,000 Laramie, Wyo. Clay 36,000 pounds. Fats and Oils (confidential, South Carolina Clay 36,000 pp. 22) reports that inedible greases Northwest' Clay 36,000 for soaps are still critical, but edible Marysvale, Utah* Clay 36,000 fats and oils may not be as short as was Total 184,000 expected. (Department of Commerce, Bureau of For- Approved: site not yet selected eign and Domestic Commerce) ""Awaiting approval Upswing in Morale Of these, the Salt Lake City plant Optimism is increasing moderately is the only one completed: it is ex- in the United States concerning pro- pected to operate any day. Construction duction of war materials, success of an of the others has been or will be start- Allied invasion of Europe, and the pos- ed. Although these processes are being sibility of a German revolt against attempted commercially for the first Hitler, according to Trends in Attitudes CONFIDENTIAL 2 30113 AUGUST 21, 1943 CONFIDENTIAL. 13 Toward the Progress of the War (re- supplies, both natural and synthetic. stricted; pp. 11), compiled from a na- (Coordinator of Inter-American Affairs, tional survey. But most Americans are Research Division) still convinced that air attacks alone will not win the war, and the percent- Keeping Prices Down ageof those interviewed who anticipate Subsidies save more money than they over two more years of war has risen cost, both for consumers and for the from 17% to 26% since January. government, according to The Essential (Office of War Information, Bureau of Role of Subsidies in the Stabilization Special Services) Program (pp. 14). The study analyzes differentmethods of applying subsidies, Rubber Expansion answers eight common objections to them, Production of both wild and culti- and citesBritish and Canadian achieve- vated crude rubber is being stimulated ments in effecting stabilization through in Latin America by the United States, their use. consumer in normal times of half the (Office of Price Administration) world's output. Crude Ruller (confi- dential; pp. 13) points out, however, This recore is an attempt to select from the many cocuments coming to the attention of WAT. PROCRESS that Latin-American rubber is still of those studies which would be of most interest to resders. The list nomeens comprehensive, one minor economic importance, and may te no attempt has beer mace to evaluate reports for displaced ty expected cheap postwar occurecy. Whether reports are pvrilable depends on the policy of each individual agency. SELECTED MONTHLY STATISTICS Employment - Labor Turnover Lotest 2 Months 6 Months Same Year Some Preceding Month Month Month Month Ago Ago Ago 1939 1937 FEDERAL CIVILIAN EMPLOYMENT (thousands) 3,116, 3,100 3,068 2,956 2,317 934 877 Wor 2,361p 2.351 2,276 2,049 1,423 n.a. D.S. Wor Department 1,500, 1,494 1,417 1,280 847 Novy Department 637 ₱ 634 633 559 450 Other War Agencies 224p 223 226 210 126 Nonwar 755P 749 792 907 894 n.a. n.a. NONAGRIC EMPLOYMENT-TOTAL (thousands) 38.370* 38,485 38,262 37,862 37,234 29,665 n.s. Manufocturing Total 16,127* 16,056 15,911 15,743 14,641 9,817 Duroble Goods 9,612* 9,585 9,483 9,178 8,155 4,251 Nondurable Goods 6,515* 6,471 6,428 6,565 6,486 5,566 Government 5.883* 5,938 5,948 5,689 5,184 3,902 Other 16,360* 16,491 16,403 16,430 17,409 15,946 n.a. LABOR TURNOVER IN MFG. INDUSTRIES¹ (rote per hundred employees) All Manufacturing Accessions 8.30 7.18 7.43 6.92 8.25 3.92 3.69 Separations Total 7.04 6.57 7.54 6.37 6.46 3.31 4.02 Quits 5.17 4.81 5.41 3.71 3.85 0.73 1.89 Military Separations 0.69 0.69 0.87 1.29 0.78 n.a. n.a. Aircraft Quits 4.54 4.23 4.62 3.69 3.60 0.99 1.06 Military Separations 0.68 0.63 0.84 1.78 0.93 n.n. n.a. Shipbuilding Quits 6.20 6.20 6.30 4.49 5.71 0.59 1.66 Military Separations 1.05 1.10 1.45 1.95 0.91 n.m. n.a. *Nonagricultural Employment, July: Federal Civilian Emloyment and Labor Turnover, June. tRates beginning 1943 refer to all emoloyees rather than to vage only and are not strictly commarable with sandier data. n.a. Not available. D Preliminary. CONFIDENTIAL 2 30113 14 CONFIDENTIAL WAR PROGRESS PRODUCTION PROGRESS Naval Vessels, Ordnance and Equipment; Army Vessels; Merchant Vessels Naval Vessels, Ordnance and Equipment Total Naval Vessels Including Army Vessels 1500 800 600 1000 Schedule Schedule 400 500 Actual Actual 200 o o 1942 1943 1942 1943 Battleships, Cruisers, Carriers Destroyers 100 100 VALUE PUT IN PLACE MILLIONS OF DOLLARS 75 75 Actual Schedule Schedule 50 50 Actual VALUE PUT IN PLACE - MILLIONS OF DOLLARS 25 25 o 0 1942 1943 1942 1943 Submarines Antisubmarine 50 400 40 300 30 Schedule Schedule 200 20 Actual IOO IO Actual o o 1942 1943 1942 1943 Schedules os of July 1. WAR PROGRESS CONFIDENTIAL 2 30113 o AUGUST 21, 1943 CONFIDENTIAL 15 PRODUCTION PROGRESS Naval Vessels, Ordnance and Equipment; Army Vessels; Merchant Vessels Other Minor Combat Ships, Transports Naval Auxiliaries, and Conversions 150 25 20 100 15 Schedule Schedule 10 50 Actual Actual 5 o 0 1942 1943 1942 1943 Landing Vessels Army Auxiliaries 150 50 1 40 VALUE PUT IN PLACE MILLIONS OF DOLLARS 100 30 20 Actual 50 Schedule Schedule VALUE PUT IN PLACE MILLIONS OF DOLLARS 10 Actual 0 0 1942 1943 1942 1943 Naval Guns and Fire Control Naval Gun Ammunition 150 125 100 100 Schedule 75 Schedule 50 50 Actual: Actual 25 o 0 1942 1943 1942 1943 Schedules os of July I. WAR PROGRESS CONFIDENTIAL 2 30113 WAR PROGRESS 16 CONFIDENTIAL PRODUCTION PROGRESS Naval Vessels, Ordnance and Equipment, Army Vessels; Merchant Vessels Naval Torpedoes, Depth Charges, Naval Equipment and Maintenance and Mines Including Signal Equipment 40 150 30 100 Schedule 20 Schedule Actual 50 10 Actual 0 0 1942 1943 1942 1943 Merchant Vessels and Maintenance Dry Cargo Vessels - - Ocean Going 500 300 VALUE PUT IN PLACE-MILLION OF DOLLARS 400 Schedule 200 300 Schedule Actual 200 Actual 100 VALUE PUT IN PLACE MILLIONS OF DOLLARS 100 o o 1942 1943 1942 1943 Tankers - Ocean Going Other Merchant Vessels 150 20 15 100 Schedule 10 Schedule 50 Actual: 5 Actual o o 1942 1943 1942 1943 Schedules os of July 1 WAR PROGRESS CONFIDENTIAL 2 30113 The President WAR PROGRESS Confidential (British Secret) of 63 11 OF 1 IN BHE, Thate Number 154 August 28, 1943 CONFIDENTIAL NUMBER 154 WAR PROGRESS AUGUST 28, 1943 Smoothing Construction Machinery Kinks Expediting unit eliminates 480 production the third quarter of 1944: cranes and bottlenecks to keep bulldozers, graders, shovels through the second quarter. moving overseas. Output rises 21%. Because this equipment is destined Military forces take 90% of total. for overseas and must be gotten into the hands of Allied military forces on CONSTRUCTION this year will be down 43% time, delivery schedules have to be from 1942. met. To assure this, WPB's Construc- But production of construction ma- tion Machinery Division has set up its chinery is expected to be up 21%. own Expediting Unit toaid the 458 man- The reason: soaring overseas mili- ufacturers under its jurisdiction in tary demands. securing hard-to-get materials and com- About 90% of all new construction ponents. However, not until manufac- machinery now goes for military purposes. turers or theirmilitary representatives It's needed tofill in bomb-pocked air- fail to get what's needed does the Ex- field runways, clear roads through for- pediting Unit step in. ests, pull artillery and supplies, un load ships, and todo thousands of other SUPPLIES MISSING LINKS bulldozing, hauling, dirt-moving, and Since its inception in April, 1943, material-handling jobs in a hurry and the Expediting Unit has had 523 re- often under fire. quests for such items as engines, bear- Latest callis for air-borne midgets, ings, steel, lumber, nuts and bolts, weighing la tons or less. (The midget wrappings, new machine tools, and so grader weighs three-quarters of a ton on. And in 480 cases-by ransacking as against six tons for the standard, warehouses or idle inventories, by get- heavy-duty job. These are flown to ting a boost in priority rating, by newly captured airfields or bases for selling the manufacturer on an earlier general repairs. Nine months ago they delivery date, or by spurring a sub- were unheard of. contractor-the Expediting Unit has Today construction machinery is a come through. military end product. From $360,000,- A request for expediting must con- 000 in 1941, military demand has doubled tain certain salient details: as follows: What is needed When Total Military as The promised delivery date Year Output Military % of Total The end item it is going into (millions) The promised delivery date of 1941 $600 $360 60% the end item 1942 700 525 75 The priority rating 1943 850 765 90 Sources of supply already ap- Moreover, 1944 may be even higher proached than these estimates. Right now trac- With these data in hand, the Expe- tor business is booked solid through diting Unit may go directly to ware- CONFIDENTIAL 2 CONFIDENTIAL WAR PROGRESS houses, brokers, and consumers; or if to Etnyre, and that was that. it is an especially manufactured item, But some are not 80 easy: Take the a hand fire extinguisher, for example, case of the 10 two-cubic-yard shovels the manufacturers are contacted. (20-ton units) ordered by Russia early in 1942 under the first Russian proto- RECORD CASE CITED col for lend-lease. These demanded ma- Time to expedite each case usually terials and parts of unusual specifi- varies from a few hours to 10 weeks. cations, such as flexible conduit cable, Record: one-half hour. In this case, bakelite insulation equipment, special the E. D. Etnyre Company, Oregon, Ill., electrical adapting equipment; also had completed 124 bituminous spreaders hot-rolled, heat-treated, cold-finished urgently needed by the Corps of Engi- steel normally requiring a four- to neers. Cargo space to carry them to five-month processing time. But before the South Pacific and European combat the Northwest Engineering Company with areas already had been reserved. The which the order was placed could get machines were all ready for the trip- started, it was swamped with navy or- except for one detail: the 124 Pyrene ders for shovels of an entirely differ- fire extinguishers, one to a spreader, ent type. Prospects for filling the were not on hand. Russian order were slim. The Construc- The Expediting Unit telephoned the tion Machinery Division was asked to Pyrene Company, Newark, N.J., and learned look into the matter. that one of the prior orders blocking delivery to Etnyre was a Corps of Engi- BAPTISM OF FIRE neers' order for 2,000 fire extinguish- First, the division got the Navy's ers of the same type and specification. permission to have the Russian units The Expediting Unit then called the fitted into Northwest Engineering's Corps of Engineers, cleared the way for production schedule. This required get- the release of 124 fire extinguishers ting materials and parts into Northwest on the dot so as not to delay navy shov- els unnecessarily. And that was how IN THIS ISSUE: the newly formed Expediting Unit got its baptism of big fire-expediting 75 SMOOTHING CONSTRUCTION MACHINERY KINKS 1 different items for U.S.S.R. shovels. KEY STATISTICS OF THE WEEK # The unit located the proper type of PLANE ENGINES UP DESPITE LOCKLAND 5 hot-rolled steel in numerous warehouses, THE 200,000TH PLANE 5 including Russian warehouse stocks in the United States: it then arranged for PROPELLER SHIFT 7 its shipment to a processor for heat- PAYING 36% AS WE GO 7 treating and cold-finishing. Cables, WAR PROGRESS NOTES 9 insulation, etc. were rounded up on TAXES HOLD BACK WAR BOND SALES schedule. At the end of five weeks 9 PEAKING FEDERAL CIVILIAN EMPLOYMENT everything except special electrical 10 adapting equipment was in place. But REPORTS ON REPORTS 11 this equipment required eight to nine SELECTED MONTHLY STATISTICS 11 weeks to build. And the assembled ma- PRODUCTION PROGRESS (WAR CONSTRUCTION) 12 chines couldn't be left cluttering up Northwest's floor space, blocking the CONFIDENTIAL AUGUST 28, 1943 CONFIDENTIAL 3 PARADOX: Construction goes down; construction machinery goes up. Explanation: bulldozers, graders, tractors are indispensable combat equipment. 15,000 1000 Construction Construction Machinery Non- Militory 800 10,000 MILLIONS OF DOLLARS 600 Military MILLIONS OF DOLLARS 400 5000 200 o 0 1941 1942 1943 1941 1942 1943 Includes international old, WAR PROGRESS navy job for two to three weeks. States that can do it. Weekly output So the unit went to the Treasury averages 190,000 feet, as against re- (which provides lend-lease funds) for quirements of 250,000 to 275,000 feet. permission to lay out funds to rent As of July 1, the backlog-mostly warehouse space. That granted, the shov- formilitary needs-amounted to 25 weeks' els were moved out of the Northwest production. And orders were still pil- plant. Then in due time Northwest En- ing in. gineering's men went to the warehouse to install the electrical units. After MANAGES MORE MACHINES 10 weeks, the shovels were delivered As the problem shaped up to the Ex- and the Expediting Unit could enter in pediting Unit, six more machines were its books: "Close the protocol case.' If needed. It called a meeting at which (1) Army and Navy officials supported STRETCHES RUBBER HOSE the unit's request for additional ma- And so it goes. Right now the Ex- chines; (2) the Office of the Rubber pediting Unit is widening the bottle- Director approved the building of new neck in high-pressure rubber hose re- machines (ORD must ratify construction quired for bulldozers, steam shovels, of all machines that work rubber); (3) cranes, fire extinguishers, etc. This the General Industrial Equipment Divi- hose must be reinforced with braided sion promised priorities for the ma- wire, and there are only four manufac- chinery. Upshot: Six machines were turers and six machines in the United authorized, priorities secured for their CONFIDENTIAL 4 CONFIDENTIAL WAR PROGRESS KEY STATISTICS OF THE WEEK Lotest Preceding Month 6 Months Year Week Week Ago Ago Ago Wor program Checks paid (millions of dollors) 1,777 1,669 1,474 1,527 1,108 Wor bond soles (millions of dollors) 165 198 199 212 143 Wholesole prices (1926=100) All commodities 102.8' 102.7' 102.9" 102.4 98.9 Form products 123.8' 122.9' 124.8" 120.0 106.0 Foods 105.8 105.1 107.0 105.7 100.8 All other than form products and foods 97.3° 97.3" 97.1" 96.4 95.7 Petroleum: Total carloodings 58,213 56,661 57,344 51,986 55,867 Movement of cars into the East 30,111 29,418 32,239 26,152 27,694 East coast stocks for civilion use (1940-41=100 Seos. Adj). 36.8 34.5 35.2 35.2 55.9 Total stocks of residual fuel oil (thousands of borrels) 66,724 66,448 66,992 70,428 78,098 Bituminous Cool: Production (thousands of short tons, daily average) 2,000 1,967 1,967 2,033 1,896 Exports (no. of freight cors unlooded for export Friday,excl.grain) Atlantic Coost ports 2,584 2,665 2,551 1,226 1,574 Gulf Coast ports 353 345 431 398 330 Pocific Coast ports 1,444 1,410 1,244 980 711 Unused steel copocity (% operations below copacity) 0.6% 1.85 2.69 1.1% 2.7% Department store soles (% change from o year ago) +15% *4% +19% +33% -3% p. preliminory f. revised manufacture. In addition, the Expedit- Expediting is exciting, like a treas- ing Unit helped to get together four ure hunt. No two cases are alike. But manufacturers to agree to buy and oper- to find the treasure-whether it's a ate the machines. special-type stud, some crating lumber, But this did not end the Expediting or some sheet steel in the vicinity of Unit's job. Already it has been asked the applicant-takes routine digging: by themakers of the machines, the Tex- telephoning, visiting, haranguing this tile Machine Works, of Reading, Pa., supplier and that manufacturer, getting to expedite the steel plate entering countless discouraging noes before the the manufacture of the machines, and it smile-bringing yes. It means poring has arranged to borrow schedule space over lists of idle inventories, trying in September steel mill rolling, moving to iron out kinks in scheduling, study- up delivery by 60 days. And since a ing blueprints to figure out if this 90-day deadline has been set, all man- plant can subcontract some of that plant's ner of expediting will probably come up work. It means determining who might before the machinery rolls onto a freight be able to do this, or supply that. And car. Moreover, once the expanded ca- how soon? That's where imagination and pacity starts working, the Expediting resourcefulness come in. Unit will have to start in expediting And in the long run expediting takes all over again-getting the steel wire patience. The Etnyre-Pyrene-Corps-of- necessary for the hose. You widen one Engineers case that's solved in a half- bottleneck and create another one. hour is an expediter's dream. CONFIDENTIAL AUGUST 28, 1943 CONFIDENTIAL 5 Plane Engines Up Despite Lockland July production of motors again advances, to a deficit in Mustangs, and R-3350s although it logs 13% behind schedule. have delayed deliveries of B-29 long- Wright plant in Ohio was responsible range super bombers. Unless output of for 63% of the deficit. August better. the R-3350 can be stepped up from an average of 20 in recent months to 300 THOUGH PRODUCTION of airplane engines and more by the end of the year, the has been rising steadily, it has been effect on the long-range bomber pro- lagging increasingly behind schedule gram will be serious. Packard produc- since March. By July, when 18.757 en- tion of the 2-stage Merlins was up sharply gines were turned out, the deficit for in July. the month was 13%. And one plant- As yet, the decline in R-2600B out- Wright Aeronautical Corporation, at put has not slowed acceptances of the Lockland, Ohio-was responsible for planes in which it is used-B25 Mitch- 63% of the entire deficit and three- quarters of the deficit in tactical plane engines. THE 200,000TH PLANE U.S., British, Canadian, and Aus- 87% BEHIND SCHEDULE tralian aircraft plants arenow work- The tribulations of Wright, a sub- ing on their third 100,000. The sidiary of Curtiss-Wright, have been 200,000th plane rolled off an assem- publicized in recent weeks. The Truman bly line the last week in July. Committee reported last month that in- The first 100,000 werethe hard- spection was lax on the R-2600B, a 14- est, taking 34 months to produce- cylinder, 1,700hp Cyclone engine. Out- from the beginning of the war in put of these motors (made only at Lock- September, 1939, to July, 1942. Of land) has been tumbling ever since March: these, the British Empire assembled R-2600B % of R-2600B 55%. The second 100,000 took 12 Deliveries Schedule months: 65% were made in the U.S. January 1,721 101 As against 46 months for the first February 1,428 84 200,000 planes, the next 200,000 are March 1,872 110 scheduled for completion in about April 1,375 81 15 months. And these will be heavier May 884 52 and much more elaborately equipped June 642 34 than the first 200,000. From 50% July 267 13 trainers, when U.S. war production Thus, byJuly, output of the R-2600B began in July, 1940, the ratio will was one-seventh of the March figure and decline to less than 10% by the end 87% behind schedule. of next year. At the other end of In general, the lag in total engine the scale, the number of heavy bomb- production has not affected the com- ers to be produced in the next 18 pletion of planes inasmuch as airframe months is scheduled to exceed that output itself has been behind schedule. of all types of planes produced in There have been two exceptions: Packard the first year and a half of war. Merlin 2-stage V-1650s have contributed CONFIDENTIAL 6 CONFIDENTIAL WAR PROGRESS ell, Helldiver, Avenger torpedo bomber, month than July. But output has not Buccaneer dive bomber, Mariner patrol recovered sufficiently to avert the bomber, Baltimore light bomber, and threat of curtailment in production of A-25 Army light bomber. Manufacturers the 1,200-odd planes per month which were able to draw on a surplus of 5,500 use the R-2600B. engines, which were on hand at the end The trend in output of all aircraft of March, just before the production engines is as follows: plunge. All All Tactical However, these inventories are about Engines Engines down to a bare working minimum. And January 16,125 10,953 the Lockland plant would have to do the February 15,364 10,829 next to impossible-increase production March 16,977 12,278 tenfold in order tomeet schedules which April 16,854 11,919 call for 2,700 engines in September. May 17,891 13,002 Production of planes which use the June 18,018 13,269 R-2600B may not be immediately curtailed July 18,757 14,264 because (1) there is usually a lag be- Because of the decline in production tween the production of the engine and of engines for trainer planes, tactical the installation in planes and (2) spares engine output has risen more sharply and exports may be reduced temporarily. since the first of the year than the August is expected to be a much better output of all engines. WHAT HAPPENED AT LOCKLAND Production of the R-2600B (Wright Cyclone) engine started dropping sharply in April; used in Helldivers, Buccaneers, Mitchells, etc. Schedule rises steeply. 5000 5000 Schedule 4000 4000 NUMBER OF R-2600Bs 3000 3000 Actual 2000 2000 NUMBER OF R-2600Bs 1000 1000 o o J A $ 0 N 0 J F M A M J J A S 0 N D J F M A M J J A S 1942 1943 1944 WAR PROGRESS SEVEN TYPESOF COMBAT LANESUSE THE 700HP CYCLONE MOTORS GO INTO MORE THAN 1, 200 PLANES A MONTH-SOME A 26008 ENGINE, WHICH IS MADE ONLY AT THE LOCKLAND, OF THEM BI-MOTOR JORS. OTHER ENGINES ARE NEEDED AS OHIO, PLANT OF THE WRIGHT AERONAUTICAL CORPORATION. SPAKES- ABOUT 45 FOR EVERY 100 ENGINES INSTALLED- THE PLANT HAS BEEN UNDER SCRUTINY OF THE TRUMAN AND FOR EXPORT. BUT PRODUCTION SLUMPED TO 267 IN SPECIAL INVESTIGATING COMMITTEE. THESE 14-CYLINDER JULY, AS AGAINST A SCHEDULE OF 2, 100. CONFIDENTIAL AUGUST 28, 1943 CONFIDENTIAL 7 Propeller Shift Paying 36% As We Go Production of all companies-United Air- craft, Curtiss-Wright, etc.- up sharply, DURING THE LAST WAR, the U.S. Treasury borrowed about $70 out of every $100 but Nash-Kelvinator, newcomer, is sched- paid out. This time it has cut down a uled to be leader next year. bit. In the 1944 fiscal year, expend- LAST YEAR, Curtiss-Wright and United itures are expected to run to $110,000,- Aircraft's Hamilton Standard Division 000,000 and borrowings to $70,000,000,- accounted for over 80% of all control- 000, or 64%, on the basis of present lable pitch propellers produced. This taxes. (The British are borrowing about year, their output will be larger than 50%.) ever-51,800 for Curtiss and 69,400 for The character of borrowings has changed Hamilton Standard. However, their share markedly. Last time, private individ- of the total is expected to decline to uals, corporations, and insurance com- 51%; and in 1944, estimates are that panies were the big lenders to the gov- they will be turning out only 42% of ernment, buying 80% of the war bonds all aircraft propellers. offered: commercial banks bought only Newcomers are moving up fast, and 16%. This time they are absorbing 38% Nash-Kelvinator Corporation is out- of the increase in federal debt; indi- standing. In 1942 its share of the viduals, corporations, and insurance 107,300 controllable pitch propellers companies, 47%. (The remainder goes produced was 14,800, or 14%; but this to Federal Reserve banks, government year it is slated to manufacture 61,- agencies, and mutual savings banks. 600-26%-of the 237,300 total. And in 1944 Nash-Kelvinator is expected to TREND OF THE TIMES become the leading manufacturer with Going into debt to meet federal ex- 84,000, or 24% of the 356,500 scheduled: penditures is a continuation of prewar trends. During the '30s, federal ex- %of Total Production 1942 penditures consistently exceeded rev- 1943 1944 (est. ) (est.) enues, and the debt moved up steadily Curtiss-Wright 25% 22% 23% until the 1942 fiscal year, when it Hamilton Standard. 56 29 19 really began booming. At the end of Remington Rand - 5 12 fiscal 1944 it is slated to pass the Nash-Kelvinator $200,000,000,000 mark. 14 26 24 Frigidaire - 11 15 Prior to the last war the budget was Other 15 7 7 in virtual balance; then came the war, and the deficit soared: but after the Remington Rand, Nash-Kelvinator, and war, receipts exceeded expenditures Frigidaire (a division of General Motors) (chart, page 81, there was 8 federal produce only one model-the 23E50, a surplus, and Secretary Mellon was able 3-blade dural hydromatic control pro- to cut the federal debt. peller. This propeller is used on more Today, the income tax is the great than 25 of our most important planes, source of federal revenue, constituting such as the Liberator, Flying Fort, more than 80% of the total. Before the Billy Mitchell, Hellcat, Corsair, Aveng- first World War, income taxes were com- er, and Skymaster. paratively minor producers of revenue; CONFIDENTIAL 8 CONFIDENTIAL WAR PROGRESS FINANCING THE GOVERNMENT IN TWO WARS Expenditures in fiscal '44 estimated to be six times as great as in 1919; receipts rise eight times. Treasury borrows 64% this time, 72% last time. Expenditures FISCAL 1944 Receipts FISCAL 1919 $40,400,000,000 Receipts Borrowings $5,100,000 Borrowings $13,400,000,000 $70,000,000,000 $18,500,000,000 $110,400,000,000 Receipts and Borrowings BORROWINGS 1944* RECEIPTS 1944 All Other Corporations, Individuals, Insurance Cos. Excise etc/or 1919 1943* Individual 1919 Income 0 Commercial Corporate Tax Bonks Tax Distribution of 1944 borrowings cannot be estimated but 1943 offers clue to frends. , Participation by Commercial Banks is understated to the extent that they lent funds to individuals to "borrow and buy" 125 125 Expenditures, Receipts, Federal Debt 100 Federal Debt 100 1914 1919 BILLIONS OF DOLLARS 75 1929 75 1939 1944 50 o 50 100 150 200 50 BILLIONS OF DOLLARS BILLIONS OF DOLLARS Expenditures 25 25 Receipts 0 o 1914 1919 1924 1929 1934 1939 1944 Note: 1944 figures are estimates WAR PROGRESS CONFIDENTIAL AUGUST 28, 1943 CONFIDENTIAL 9 the income tax didn't become law until % Receipts Contributed by 1913. Then, customs, duties, and ex- Customs, cise taxes brought in about 90% of the Fiscal Individual Corporate Excise, receipts. But during the war, Congress Year Income Tax Tax etc. turned increasingly to direct taxation 1939 18.2% 20.4% 61.4% of individuals and corporations. In- 1940 16.6 19.3 64.1 come tax rates and receipts soared. In 1941 17.2 24.8 58.0 1918 and 1919, well over 40% of the 1942 23.7 34.5 41.8 Treasury's receipts came from corpora- 1943 28.0 40.8 31.2 tions; this time it'snot quite so much. 1944 46.6 34.9 18.5 In 1944 individual taxpayers are the # Estimated big payers-46.6% of estimated receipts: War Progress Notes % Receipts Contributed by PLATEAU FOR U.S. JOB ROLLS? Customs, MORE THAN 3,000,000 civilians are now Fiscal Individual Corporate Excise, on Uncle Sam's payroll, three times as Year Income Tax Tax etc. many as three years ago. But the rate 1914 3.8% 5.9% 90.3% of increase has been slackening: from 1915 5.9 5.6 88.5 January to June of this year government 1916 *8.7 7.3 84.0 rolls increased at an average of only 1917 16.0 16.0 68.0 1% a month as compared to 6% per month 1918 17.1 46.1 36.8 during 1942, and 3% for 1941. The war 1919 15.0 43.6 41.4 agencies (War, Navy, and emergency agen- TAXES HOLD BACK WAR BOND SALES Income tax in June and withholding tax in July cause not only a sharp drop in sales, but also a sharp rise in redemptions. 1200 1200 20 20 Redemptions VS. Sales Series "E" Redemptions as % of Sales Income Tox 1000 1000 15 Withholding Tax 15 800 800 MILLIONS OF DOLLARS Soles 600 600 MILLIONS OF DOLLARS REDEMPTIONS AS % OF SALES 10 10 REDEMPTIONS AS % OF SALES 400 400 Net Soles 5 5 200 200 Pearl Horbor o Redemptions 0 O 0 0 " J 5 J J J SOND 1941 1942 1943 1941 1942 1943 WVI PROGRESS CONFIDENTIAL 10 CONFIDENTIAL WAR PROGRESS PEAKING FEDERAL CIVILIAN EMPLOYMENT Accessions to U.S. payrolls have been slowing down. Nonwar jobholders drop. 3500 3500 3000 3000 OTHER WAR AGENCIES 2500 2500 NAVY DEPARTMENT THOUSANDS OF EMPLOYEES 2000 2000 1500 1500 THOUSANDS OF EMPLOYEES WAR DEPARTMENT 1000 1000 500 NONWAR 500 0 0 J A $ 0 N 0 J F M A M J J A S o N 0 J F M A M J J A $ o N D J F M A M J 1940 1941 1942 1943 WAR PROGRESS cies) comprised 75% of total federal temporarily: redemptions dropped to less employment in June A8 against 25% three than 1% in December, 1941, and January, years ago (chart, above). Nonwar fed- 1942. Then the upward climb was resumed, eral employment has declined all this reaching 10% in February of this year. year. In March, because of the first-quarter In the last war federal employment income tex, redemptions boomed to 16%, more than doubled from June, 1916, to then dropped back in April and May to November, 1918, when it reached a peak 9%. In June, income-tax time was around of 920,000; by July, 1920, it had fallen again, and the percentage of redemptions 25% to about 695,000. hit a new high-18%. July would proba- bly have shown a drop, but the withhold- BONDS. INTO TAXES ing tax picked up where the income tax DURING the last two months, one out of had left off and the redemption rate every five People's War Bonds (Series E) stayed at almost the same high level sold has been redeemed. This high rate RS June (chart, page 9). of redemption is traceable directly to Net' sales of People's Bonds followed income and withholding taxes. However, an irregularly upward path, reaching a the practice of redeeming bonds is not peak of $920,000,000 during the April new. As soon as legally possible after bond drive. Then the tax months in June the first sales, many turned them in and July forced net sales downward to for collection. In November, 1941, re- the lowest level in nine months. To demptions rose to 29 of sales. date, gross sales have been $12,700,- But Pearl Harbor reversed this trend 000,000; redemptions $870,000,000-7%. CONFIDENTIAL AUGUST 28, 1943 CONFIDENTIAL 11 REPORTS ON REPORTS distribution of contracts; (2) employ- ment of more women, with concomitant Petroleum Possibilities extension of equal-pay-for-equal-work Long-range prospects Latin Amer- principle and improvement of day-care ica's youthful lindustry, temporarily facilities. retarded by the war, appear to be good, (War Manpower Commission, Reports and according to Petroleum (confidential; Analysis Service) pp. 10). The report examines current oil production and marketing in Latin Plastics for Machines America in relation to world output and Tools and dies, gears, and other consumption. machine parts are being made increas- (Coordinator of Inter-American Affairs, ingly of Plastics (confidential: pp.12), Research Division) cutting into the plastic supply avail- able to civilians still further. A re- Ammunition Loaders cent maximum price regulation indicates Labor Market Survey of the Bag-, the plastic industry's rise to maturity. Bomb-, and Shell-Loading Industry (con- (Department of Commerce, Bureau of For- fidential; pp. 70) reports insufficient eign and Domestic Commerce) utilization of manpower and plants- partially attributable to apparent fail- This record is an attempt to select from the many documents coming to the attention of WAR PROGRESS ure of Army and Navy to pool their fa- those studies which would be of most interest to readers. The list inby no means comprehensive, and cilities-low pay, high rate of absen- no attempt has been made to evaluate reports for accuracy. Whether reports are available depends on teeism. Recommendations: (1) better the policy of each individual agency. SELECTED MONTHLY STATISTICS Production - Hours and Earnings - Transportation Lotest 6 Months Some Some Preceding 2 Months Year Month Month Month Month Ago Ago Ago 1939 1937 PRODUCTION INDEX-INDUSTRIAL (1935-39=100) 207 * 203 204 194 180 102 118 Total Manufactures 219' 218 217 208 189 102 118 Durable 306* 304 304 287 251 99 130 Nondurable 148' 148 147 143 139 104 109 Minerols 142" 122 133 116 131 106 115 AVERAGE HOURLY EARNINGS (Cents) All Manufacturing Industries 95.9* 95.4 94.4 90.7 84.5 63.1 N.A. Duroble Goods 105.5' 105.0 104.0 100.4 93.5 69.6 N.A. Nondurable Goods 80.4' 79.7 79.0 76.2 71.8 58.1 N.A. Bituminous Cool Mining 112.4' 111.9 112.8 108.5 108.6 88.6 88.6 Metolliferous Mining 98.3" 98.4 96.2 93.1 88.2 69.5 71.7 AVERAGE HOURS PER WEEK All Manufacturing Industries 45.2" 45.3 45.0 44.4 42.9 37.4 N.A. Duroble Goods 46.8" 47.0 46.8 46.1 45.2 37.6 N.A. Nonduroble Goods 42.8" 42.8 42.5 42.1 39.9 37.3 N.A. Bituminous Cool Mining 28.3" 35.6 36.9 35.7 33.5 25.2 25.9 Metalliferous Mining 44.9' 44.3 43.9 44.0 43.8 39.4 43.5 TRANSPORTATION COMMODITY AND PASSENGER (1935-39=100) 214 211 208 191 180 106 113 Commodity 197* 201 197 181 179 105 115 Passenger 269 * 247 246 226 181 108 109 *Production, July: Hours & Earnings, Transportation, June. 1 Unadjusted. N.A. Not available. P Preliminary. CONFIDENTIAL 12 CONFIDENTIAL WAR PROGRESS PRODUCTION PROGRESS War Construction Wor Construction (Government Financed) Industrial Facilities 1600 1000 800 1200 Actual 600 800 Actual 400 Schedule 400 200 Schedule: o 0 1942 1943 1942 1943 Aircraft Fields and Bases Troop Housing 250 400 VALUE PUT IN PLACE-MILLIONS OF DOLLARS 200 300 150 200 100 Actual VALUE PUT IN PLACE-MILLIONS OF DOLLARS Actual 100 50 Schedule Schedule 0 o 1942 1943 1942 1943 War Housing All Other Nonindustrial Construction 100 400 80 300 60 Actual Schedule Actual 200 40 Schedule 100 20 o 0 1942 1943 1942 1943 Schedules os of July I. MAR PROGRESS CONFIDENTIAL The Product WAR PROGRESS Confidential (British Secret) Aluminum: At Ease B Products-New Style Production Progress Tables rect. Bac. at use ($) NO Dept. 29.1973 THE By KHP, Describe MAK Number 155 September 4, 1943 CONFIDENTIAL NUMBER 155 WAR PROGRESS SEPTEMBER 4, 1943 Aluminum Easier, Labor's Tighter Cutback in airplane program produces small what-largely because the airplane pro- surplus despite manpower shortage, and gram has been cut back. Currently there squeeze will be intensified when and if is an excess of about 100,000,000 pounds of aluminum ingot on hand. This is not aircraft firms meet rising schedules. large-only about 3.6% of total estimat- ALUMINUM has had tougher sledding than ed 1943 supply: however, it's symptom- any major metal in the war program- atic. Moreover, stocks are being added not only because its expansion was most to at the rate of approximately 30,000,- rapid and shifting (directly related 000 pounds per month. as it was to the skyrocketing and shift- ing schedules of the airplane industry), NOT WHAT IT SEEMS but also because the expansion was an But aluminum is not quite so easy all-along-the-line job- from getting as those facts suggest. New fabrica- raw material for making aluminum to ting capacity-a rod and bar mill, two fabricating plants which process the extrusion plants, and other units-now metal. (Prewar processing facilities nearing completion, could easily require were incapable of processing hard war all of the available excess for working alloys, with the result that fabricat- inventory. Further, there exist many ing capacity had to start practically military uses for aluminum, which-if from scratch. ) And the widening of one permitted-would quickly consume this bottleneck inevitably created another. and additional supplies. Still further, But now the pressure has eased some- the airplane program is always subject BIG BOMBERS BOOST AUGUST PLANE OUTPUT AUGUST'S AIRPLANE GAIN was the best for the first time: 530 Liberators since May. On an airframe weight were accepted, 383 Flying Fortresses. basis, last month's acceptances were This group ran 11% above July and up 7%, against recent monthly gains only 3% behind the W-6 schedule. In as follows: addition, Boeing, Wichita, turned May 10% out four long-range super bombers. June 3% Labor problems and design changes July 4% again held up output. The failure The showing was 13% short of the of heavy bombers to attain the full W-6 schedule. forecast was largely due to a 10%- In all, 7,570 planes came through behind-schedule performance at Boeing, (excluding 42 Targets and Drones and Seattle, where employment is now 6% 613 gliders): this was 244 planes— lower than in January: and at Lockheed, or 3%-higher than July, but the sched- Burbank, another of a series of en- ule called for a gain of 1.177. gineering changes in P-38 Lightnings Heavy bombers crossed the 900 mark contributed to a 73% deficit. CONFIDENTIAL 2 CONFIDENTIAL WAR PROGRESS to change-though it hardly seems likely, Aluminum has had to contend with a with plane output currently lagging hidden, hard-to-calculate and herd-to- behind schedules, that a sharp upward foresee consumer: the pipeline. Sta- jump is in the immediate offing. tistically, as the following table shows, Future aluminum supplies cannot be supply always seemed to run comfortably counted until they come off the pot- ahead of consumption, viz: lines (reduction furnaces). And labor Year Consumption Supply has become a problem there. (millions of pounds) 1940 607.1 609.4 HAS COME A LONG WAY 1941 670.0 831.9 So far this year, manpower shortage 1942 1,393.5 1,665.9 at the pot-lines has cost the nation 1943 2,613.1 2,859.9 about 75,000,000 pounds of aluminum, But what seemed like a surplus was as newly completed plants could not be not a surplus at all. As production operated right away. There are also rose, more ingot aluminum had to be persistent fabricating bottlenecks in available at the alloying furnaces: more extrusions, small hammer forgings, cer- alloyed aluminum was needed in the form tain castings, and small rods, due in of sheet bars or rod billets for the part to manpower. Yet, all in all, rolling mills; more metal was required aluminum production has come A. long for the expanding operations of forging way-from a domestic annual output of hammers, extrusion presses, casting 400,000,000 pounds of ingots in 1940 to foundries, etc. This work-cycle, or nearly 2,000,000,000 pounds today: im- "pipeline, aluminum is now estimated ports and scrap have also mounted, viz: at 550,000,000 pounds-more than total Primary domestic output in 1940. And it may Year Output Scrap Imports rise to 700,000,000 pounds at peak. (in millions of pounds) 1940 418.6 160.7 30.1 PIPELINE PRESSURE EASED 1941 518.3 188.4 25.2 Six months ago a shortage of work- 1942 1,042.2 370.4 253.3 cycle ingot aluminum prevented process- 1943 1,840.6 573.3 456.0 ing plants from working at capacity. By cutting inventories at certain points, the Aluminum Division "saved" 75,000,000 IN THIS ISSUE: pounds of ingot aluminum. And the pipe- line may be squeezed for an additional ALUMINUM EASIER, LABOR'S TIGHTER 1 100,000,000 pounds if such a "cushion" BIG BOMBERS BOOST AUGUST PLANE OUTPUT 1 becomes necessary. But at present, with processing and airplane plants getting A TREATMENT FOR B PRODUCTS 6 all the aluminum they need, pressure on the pipeline has been relaxed. KEY STATISTICS OF THE WEEK 7 Airplane industry inventories have AT HALFWAY MARK 11 been building upsharply-an indication that the recent slowing down in expan- PRODUCTION PROGRESS TABLES 12, 14, 16 sion of plane production has not been due primarily to aluminum shortages. PRODUCTION PROGRESS (GENERAL SUMMARY AND SELECTED ITEMS) Right now, aircraft pipelines amount to 13, 15 an estimated 528,000,000 pounds of alu- CONFIDENTIAL SEPTEMBER 4, 1943 CONFIDENTIAL. 3 THE PAST, PRESENT, AND FUTURE OF ALUMINUM Total supply has increased 370% since 1940; demand, 330%. Aircraft now gets 69% of consumption as against 25% then. This is where aluminum has come and is coming from: Total Supply 1943 Imports 1940 imports Scrap Primary Scrop Primary 609,400,000 LBS. 2,869,900,000 LBS. This is where it has gone and goes: Consumption 1943 All Other Exports 1940 Chemical and Miscelloneous Novy Metollurgy Aircraft Bulding Aircraft Army Construction Cooking Utensits Machinery and Electrical Other Transportation Foundry and Metol Working 607,100,000 LBS, 2,613,100,000 LBS. And this is the current supply-demand outlook: 300 300 Supply vs. Demand 200 200 MILLIONS OF POUNDS Supply Requirements 100 MILLIONS OF POUNDS 100 Actual through June 1943 o 0 J F M A M J J A $ o N D J F M A M J J A 5 o N o J. F M A M J J A S o N D 1942 1943 1944 WAR PROGRESS CONFIDENTIAL 4 CONFIDENTIAL WAR PROGRESS ONE BYPRODUCT OF THE CUTBACK IN AIRPLANES Is the cutback in aluminum requirements. Change from 8-L to W-6 soves 285,000,000 pounds this year and next. 1943 1944 215,000,000 lbs. 70,000,000 lbs CUT CUT W-6 ALUMINUM W-6 ALUMINUM REQUIREMENTS REQUIREMENTS 1,810,000,000 lbs. 2,360,000,000 lbs WAR PROGRESS minum-200,000.000 pounds is actually Total work-in-process: the remainder is uncut 1943 Supply Allotments stock (inventories). In May, the in- (millions of lbs. dustry added 6,000,000 pounds to the 1st quarter 582.1 534.8 pipeline. This suggests that airplane 2nd If 633.4 585.5 plants have been unable to use metal as 3rd " 790.4 661.6 fast as they are getting it. At peak, 4th II 871.2 774.0 this, pipeline may reach 634,000,000 Reasons why allotments are rising pounds-four months' supply-enough to more slowly than supply include (1) more cover the industry's average lead time careful screening of aircraft require- in production. This, added to the alu- ments based on bills of materials: (2) minum industry's own 700,000,000 Dounds, more conservative statements of require- means a total peak pipeline of more than ments by claimant agencies-experience 1,300,000,000 pounds. has made estimating more accurate: (3) trimming down allocations to processing RUSSIA, BRITAIN BENEFIT capacity-in hammer forgings, for ex- Because domestic consumption has ample: (4) cutback in the aircraft pro- not kept pace with expectations, it gram. has been possible to (1) move Russia's The Aluminum Division still has a fourth-cuarter allotment into the third re-education job on its hands. Dur- quarter and (2) divert to Great Britain ing the depression, the aluminum in- 180,000,000 pounds of Canadian aluminum dustry touted the advantages of new scheduled to be shipped here in 1944. metal over secondary metal-and con- Here is how aluminum supply is forging sumers kept AWAY from the use of scrap. progressively ahead of allotments: This use habit carried over into the war CONFIDENTIAL SEPTEMBER 4, 1943 CONFIDENTIAL... 5 with the result that increased produc- rods exceeds capacity, though overall tion of scrap mounted out of proportion rod demand is below total rod-making to increased use of secondary aluminum, capacity: production difficulties, in- backing up the scrap and taxing storage cluding labor and large rejections, facilities. The division met this with prevent castings output from reaching a. coordinated "sales" and segregation capacity levels, especially in cylinder program. heads and permanent molds: while demand for small hammer forgings exceeds cur- SCRAP FLOWING FASTER rent output of facilities (not fully But now that overall demand for alu- manned due to labor shortages), although minum has eased, the Aluminum Division capacity is available in press forgings. has encouraged the Army and Navy to ex- To overcome these bottlenecks, ca- pand their uses of secondary aluminum pacity is being expanded for forgings in items such as gun director parts, in and extrusions: small rod output will which substitute materials had formerly be increased by using extrusion presses been used: the steel industry has been formerly utilized inmaking tubing (now permitted to use increased quantities that tubing demand has been cut); and of secondary aluminum for deoxidizing: attempts are being made to lower speci- Russia has agreed to accept one-third fications for certain types of castings. of its fourth-quarter requirements in secondary, instead of 100%primary, alu- HELP WANTED minum; and a program is being pushed to But, overall labor is the biggest eliminate specifications calling for problem ahead. Estimates as of May primary metal when secondary would do. indicated 147,490 new employees will be Results are already apparent in the required during the final seven months swifter flow of scrap. Moreover, it is of 1943, as follows: likely that the oversupply of scrap in Additions Replace- Total fabricators' and dealers' hands, amount- Industry Required ments for Labor ing to 10,000,000 pounds 30 days ago, Section June-Dec. Turnover Needed will be dissipated within 90 days. But Bauxite 200 950 1,150 here again labor shortages have hampered Alumina 200 3,655 3,855 scrap processing by smelters. Big fac- Sinter 720 65 785 tor in the Aluminum Division's re-edu- Aluminum. 3,200 9,500 12,700 cation drive has been the policy of Smelting. 800 4,500 5,300 scrap segregation: about 90% of the Sheet..... 5,300 5,200 10,500 scrap currently being marketed is seg- Rod & bar. 4,400 4,400 8,800 regated, as against 30% two years ago. Extrusions 6,700 5,400 12,100 The fact that there now is enough Castings. 36,000 37,000 73,000 aluminum, both primary and secondary, Forgings. 8,700 7,000 15,700 does not mean that it is available in Tubing. 1,100 1,500 2,600 adequate quantities in the required Rivets. 200 800 1,000 shapes and sizes. Bottlenecks still Total 67,520 79,970 147,490 exist. And unbalanced demands create spot bottlenecks-examples: demand for The manpower problem is no simple, tube blooms, which occupy a lot of time isolated problem. Many of the aluminum on extrusion presses, reduces the output plants are located in such labor-short of extruded shapes: demand for small areas as Detroit, Cleveland, Buffalo, CONFIDENTIAL 6 CONFIDENTIAL WAR PROGRESS Los Angeles and Bridgeport. Therefore, 80 long as the aircraft industry, itself, intrinsically and inescapably, it is fails to meet its schedules. But any part of the overall squeeze in these sharp upswing in plane production- particular localities. The labor short- approaching schedules-would roll back age may not affect airplane production on aluminum. A Treatment for B Products Claimant agencies in CMP now have right to etc.-claimed for them. These were the single out strategic items for straight- A products. line handling; horizontal (PRP) distri- But from the start of CMP it was bution narrows accordingly. apparent that for thousands of inter- mediate and civilian-type products- FOR SEVERAL MONTHS, the Controlled Ma- bearings, electric motors, cookstoves, terials Plan has been undergoing an pumps, radiators, batteries, nuts and inner adjustment. Many B products- bolts-there were not one, but several orphans under the original CMP system- claimants. The Army, Navy, Maritime have been getting themselves parents. Commission, the Office of Defense Trans- Evidence of this is clear. At the out- portation, and the Facilities Bureau all set, there were 416 B product groups: require bearings in their various pro- today the list has been reduced to 324. grams. The Army, Navy, ARCO, and ODT Moreover, carbon steel allotted for B require a variety of types of kitchen products in the third quarter was 28% equipment-the Army for its camps, the of total allotment, as against only 20% Navy for its ships and bases, ARCO for in the fourth quarter. airplanes, ODT for passenger trains, etc. The original idea of CMP was straight- forward and simple: The Army is the AN EXCESS OF PARENTS father of the tank program, therefore, Such items had too many parents, let the Army estimate steel, copper, hence no parents. They became orphans. and aluminum requirements for tanks; At first the job of acting as claimant let it claim for these materials before for ormaterials for products was assigned the Requirements Committee, and finally, to the Office of Civilian Supply: later after it receives its allotments of it was delegated among the various WPB materials, letit it distribute the steel, Industry Divisions, and a horizontal copper, and aluminum to its prime con- line of materials distribution was adopt- tractors for tanks. These prime con- ed-a type of Production Requirements tractors, in turn, would redistribute Plan within the CMP system. The In- the materials to their subcontractors dustry Divisions were expected to esti- and suppliers. Similarly, the Navy mate howmany bearings, fans or blowers, would claim and distribute materials stoves, etc. were required to meet the for naval ships and ordnance; the Mari- programs of all claimant agencies: then time Commission for merchant vessels; the divisions were supposed to translate the Aircraft Resources Control Office these estimates into tons of steel, for airplanes. copper, and aluminum, and submit these In other words, the parents of the estimates to the Requirements Committee. munitions items-tanks, guns, ships, After that, the divisions would allo- CONFIDENTIAL SEPTEMBER 4, 1943 CONFIDENTIAL 7 cate thematerials directly to manufac- allotted for diesels; likewise that turers of bearings, fans and blowers, manufacturers were making the types of cookstoves, etc. on the basis of prior- diesels needed. The Navy, in short, ities and preference ratings. In effect, wanted to be as close to the diesel then, each B product was & small PRP engines as ARCO was to propellers, which unto itself. always had been treated as an end mu- nitions item. CLAIMANTS LACKED CONTROL But the Navy is not the sole claim- And, as under PRP, materials did not ant of diesels, as ARCO is of propellers. flow directly from claimant to producer Diesels are needed by the Army for util- to end product. The claimant agencies ity and service craft: by the Office of were remote from the B products. They Defense Transportation for locomotives: helped the Industry Divisions estimate by the Maritime Commission for merchant requirements at the outset, but had no ship equipment, and for other uses by direct control over the allotment of various civilian agencies. So a system materials to manufacturers, the sched- had to be devised whereby material allot- uling of output, or the ultimate dis- ments to several agencies for certain tribution of the bearings, fans and types of B products could be handled in blowers, cookstoves, etc. Yet, to the straight-line CMP procedure rather than Navy, diesel engines were essential to under a horizontal system. This meant its programs: the Navy wanted to be de-orphaning diesels and other B prod- certain that enough steel or copper was ucts in which particular claimants have KEY STATISTICS OF THE WEEK Lotest Preceding Month 6 Months Year Week Week Ago Ago Ago Wor program - Checks paid (millions of dollors) 1,478 1,777 1,425 1,431 1,136 Wor bond soles (millions of dollars) 180 165 275 273 151 Wholesole prices (1926 : 100) All commodities 102.9* 102.8' 102.8* 102.7 98.9 Form products 124.0* 123.8* 124.3* 121.2 106.0 Foods 105.5 105.8 106.4 106.0 100.7 All other than form products and foods 97.3" 97.3" 97.1" 96.5 95.7 Petroleum: Total carloadings 55,875 58,213 57,729 52,239 53,748 Movement of cors into the East 28,125 30,111 31,066 26,592 27,266 East coost stocks for civilian use (1940-41=100 Seos Adj.)_ 39.1 36.8 34.9 35.7 58.7 Total stocks of residual fuel oil thousands of barrels) 67.250 66,724 66,877 70,140 78,270 Bituminous Cool: Production (thousands of short tons, daily overage) 1,987 2,005* 2,025 2,027 1,844 Exports (no of freight cors unlooded for export Friday, excl. groin) Atlantic Coost ports 2,651 2,584 2,580 1,406 1,635 Gulf Coost ports 351 353 335 448 320 Pocific Coost ports 1,359 1,444 1,304 883 724 Unused steel copacity (% operations below copocity) 0.6% 0.6% 2.3%" 1.8% 2.4 Department store soles (% change from 0 year ogo) +1% +14%" +115 +26% -13% p. preliminary Γ. revised CONFIDENTIAL 8 CONFIDENTIAL WAR PROGRESS a direct and strategic interest. Three 3. Programmed B products. new categories of B products have been Special B products are largely com- set up: ponent parts of end munitions items- 1. Special B products. such as diesel engines and navigation 2. Class A civilian-type end prod- instruments. And, in the case of air- ucts. craft, special Bs reach far down into THROUGH THE CMP PAPER MILL WITH B PRODUCTS - FROM REQUIR Steel, copper, and oluminum B allotments now flow in four different ways, as claimant agencies get increasing Pure B Products Special B Products Civil (Bearings, Nuts, Bolts) (Diesels, Navigation Instruments) (Bul REQUIREMENTS POLICY REQUIREMENTS POLICY COMMITTEE DETERMINATION COMMITTEE DETERMINATION PRODUCTION PRODUCTION PLANNING PLANNING INDUSTRY CLAIMANT INDUSTRY DIVISION AGENCY DIVISION B PRODUCT PRIME A MANUFACTURERS PRODUCT MANUFACTURERS ALLOCATION EXCLUSIVE SPECIAL B B PRODUCT ALLOGATION OF MATERIALS MANUFACTURERS MANUFACTURERS OF MATERIALS SUBCONTRACTORS SUBCONTRACTORS THERE ARE FOUR TYPES OF 8 PRODUCTS. THE PURE B SECONDARY CONTRACTORS ON THE BASIS OF THE PRIORITIES PRODUCT IS THE B PRODUCT WE'VE ALWAYS KNOWN ABOUT RATINGSOF THE PROGRAMS THEY ARE WORKING ON. A TANK UNDER CMP. CLAIMANT AGENCIES MAKE ESTIMATES OF HOW BUILDEROR SUBCONTRACTOR WOULDHAVE A HIGHER RATING, MANY BEARINGS, RIVETS, OR STORAGE BATTERIES THEY PRESUMABLY, THAN A MAXER OF TEXTILE MACHINERY. WILL REQUIRE, OR THE APPROPRIATE INDUSTRY DIVISION FOR SPECIAL B PRODUCTS THE PROCEDURE IS DIFFER- MAKES SUCH ESTIMATES FOR THEM. THE INDUSTRY DIVI- ENT. HERE THE OBJECT IS TO TIE IN THE PRODUCTION SION THEN MAKES A REQUEST FOR MATERIALS TO THE RE- OF PARTICULAR B PRODUCTS WITH THE END PRODUCTS OF QUIREMENTS COMMITTEE. AFTER RECEIVING THE ALLOT- PARTICULAR PROGRAMS-MARINE DIESEL ENGINES, FOR EX- MENT, THE INDUSTRY DIVISION (AS THE LEFT-HAND DI GRAM SHOWS) DISTRIBUTES THE ALLOTMENTS DIRECTLY TO AMPLE, WITH THE PROGRAMS OF THE NAVY OR MARITIME COMMISSION. IN THIS CASE, THE REQUIREMENTS COMMIT- THE MANUFACTURERS OF 8 PRODUCTS; THE FINISHED BEAR- TEE ALLOTS DIRECTLY TO THE CLAIMANTS: THE CLAIMANTS INGS OR BATTERIES THEN ARE DELIVERED TO PRIME AND THEN REALLOT DIRECTLY TO EITHER (1) THEIR PRIME CONFIDENTIAL SEPTEMBER 4, 1943 CONFIDENTIAL.. 9 relatively small things, such as cotter plane manufacturer. But such items pins, hinges, rivets, etc. These are would not necessarily be special B prod- 80 important to airplane manufacture ucts for other claimants, and would be that the Aircraft Resources Control handled as ordinary Bs. Similarly, the Office feels impelled to see their pro- Army wants to check up on bakery equip- duction through from raw material to ment; soldiershave to have their bread: REQUIREMENTS COMMITTEE TO MANUFACTURERS get increasing responsibility over distribution and scheduling of diesels, bulldozers, heating systems, etc. Civilion A Products Programmed B Products (Bulldozers, Locomotives) (Heating Systems, Canning Mochinery) POLICY REQUIREMENTS POLICY REQUIREMENTS DETERMINATION COMMITTEE DETERMINATION COMMITTEE PROCURING NONPROCURING CLAIMANT CLAIMANT CLAIMANT AGENCY AGENCY AGENCY PRODUCTION PRODUCTION PLANNING PLANNING INDUSTRY INDUSTRY ELECTS DIVISION DIVISION CIVILIAN A B PRODUCT PRODUCT MANUFACTURERS MANUFACTURERS ALLOCATION ALLOCATION OF MATERIALS OF MATERIALS SUBCONTRACTORS SUBCONTRACTORS WAR PROGRESS CONTRACTORS OR (2) TO THE B MANUFACTURERS. THE ALLOTMENTS AUTOMATICALLY GO TO THE INDUSTRY DI- STRAIGHT-LINE ALLOTMENT ALSO TAKES PLACE IN CI- VISION FOR DISTRIBUTION AMONG THE MANUFACTURERS. VILIAN A PRODUCTS, BUT THERE IS THIS DIFFERENCE THE PROCEDURE IS NOT DISSIMILAR FROM ORDINARY Bs. FROM SPECIAL BS: NONPROCURING AGENCIES, SUCH AS WAR EXTRAORDINARY B PRODUCTS-THE SPECIAL Bs, CIVIL- FOOD ADMINISTRATION, TURN THEIR ALLOTMENTS OVER TO IAN AS AND PROGRAMMED BS-ALL SUBDIVIDE INTO TWO INDUSTRY DIVISIONS FOR DISTRIBUTION TO B-PRODUCT PARTS. ONE OR MORE PARTICULAR CLAIMANTS WITH A MANUFACTURERS. PROCURING AGENCIES HAVE A CHOICE. STRATEGIC INTEREST IN A PARTICULAR B PRODUCT CAN PROGRAMMED BS ARE PRODUCTS WHICH TIE N DIRECTLY GET IT REMOVED FROM THE ORDINARY B LIST, AND FOR WITH ACLAIMANT'S END PROGRAM-FOR EXAMPLE, BUILDERS' THEM IT BECOMES AM EXTRAORDINARY B. BUT FOR OTHER HARDWARE WITH THE NATIONAL HOUSING AGENCY'S HOME- CLAIMANTS, IT IS AM ORDINARY B PRODUCT, AND THE IN- BUILDING PROGRAM. CLAIMANTS PUT IN THEIR ESTIMATES DUSTRY DIVISION CLAIMS AND DISTRIBUTES THE STEEL, OF REQUIREMENTS TO THE REQUIREMENTS COMMITTEE, BUT COPPER, AND ALUMINUM TO THE MANUFACTURERS. CONFIDENTIAL 10 CONFIDENTIAL WAR PROGRESS and again, bakery equipment would not procedure differs from that of the spe- necessarily be a special B for all claim- cial Bs in one important respect: Claim- ants. ant agencies are divided into two groups: By and large, the handling of special (1) procuring claimants, such as the B products is identical with that of A Army, Navy, Maritime Commission, and (2) products or A-product components. Once nonprocuring claimants, such as War Food the Requirements Committee makes an Administration, Office of Defense trans- allotment to the claimant agency, the portation, Office of Rubber Director claimant agency reallots either to its (agencies which do not make contracts prime contractors for the A end product directly with manufacturers). The pro- or to the B-product manufacturer (chart, curing agencies, in this case, may make pages 8,9). When the claimant agency, allotments directly to the manufactur- say the Army, allots directly to a B- ers, or they may turn their allotments product manufacturer, that manufacturer back to the Industry Division, which is, in effect, an A-product manufacturer then distributes the claims for mate- for the Army. rials. As a rule, they make allotments direct. Allotments of nonprocuring DIFFERENCE BETWEEN A AND B agencies automatically revert to the But there is this difference between Industry Divisions for reallotment to the handling of special B products and manufacturers. A products. In the case of an A product, such as a tank, the Army is the sole NO HARDWARE, NO HOMES procurement agency. In the case of Programmed B items have a civilian diesel engines, there are several claim- cast, and tend to be end products which ants. Therefore, some way must be found control or limit the agencies' programs. to coordinate the special B product There no point in allotting steel to programs of various claimants. To that build a large number of dwellings if end the WPB Industry Divisions work with simultaneous provision is not made for claimant agencies to help integrate stoves or ranges, heating systems, and their production schedules or allocate builders' hardware to go into those facilities to manufacture special B houses. Nor is there any point in plan- products. ning a huge expansion in milk produc- Class A civilian-type end products tion if dairy and milk products machin- also have a distinctly military cast. ery is not made available. Thus, the They include construction machinery, National Housing Agency's program de- 85% of which goes to the armed services: pends not only on how much steel it will locomotives and freight cars-again the receive for girders, butalso on whether Army is a big buyer, and so is the Of- it gets steel for heating systems and fice of Defense Transportation; fire whether the facilities to make heating apparatus and metal drums, required by systems are available: likewise the War the military forces as well as civil- Food Administration must be certain ians. But there isalso farm machinery; that its milk program ties in with the primarily a civilian item, in which the production of dairy machinery, and so on. War Food Administration is the interest- In the case of programmed B products, ed claimant agency. all allotments revert to the Industry Civilian A products also take on the Divisions, which then divide the pie characteristics of ordinary As. But among the B-product manufacturers. To CONFIDENTIAL SEPTEMBER 4, 1943 CONFIDENTIAL.. 11 the extent that Industry Divisions sched- At Halfway Mark ule production of programmed B products they are responsible for seeing that JULY MUNITIONS production has been re- claimant agencies receive the quotas vised downward slightly from the pre- to which their allotments entitle them. liminary figure (WP-Augl4'43,pl) and But if production is not scheduled by now stands at $5,221,000,000. This the Industry Division, then the claimant represents a 3% rather than a 4% rise agency for the programmed B product must from June output and compares with a take its chances. Distribution then is 2% increase from May to June. The lag through preference ratings as with or- behind schedule in July remains at 9%. dinary B products, and the military Naval vessels, ordnance and equip- claimants have the highest ratings. A ment showed the greatest month-to-month programmed B product (as with special improvement-up 7% on a value-put-in- Bs or civilian As) isnot necessarily a place basis-but had the greatest deficit programmed B product for all claimants. from schedule-13%. Aircraft and re- Builders' hardware, for example, is a lated munitions and equipment rose 5% programmed B for the National Housing from June but missed schedule by 12%. Agency-an ordinary B for anybody else. Production lags in both of these cate- The variations in procedure stem gories-two major areas in which the mainly from variations in aptitudes of 1943 program is still expanding rapidly the claimant agencies in programming -ran heavily to low-priority items. and scheduling. The procuring agencies have been geared up to this by exper- SCHEDULES CUT $200,000,000 ience and hence are less dependent on The value put in place on merchant the Industry Divisions than the nonpro- vessels was down 4% from June and 11% curing agencies in allotting materials off schedule. Ground army munitions to manufacturers. made schedule-on the dot-and their output rose 5% from June. WHAT DE-ORPHANING DOES Munitions schedules for the last five Regardless of the procedure, however, months of the year have been reduced the basic purpose is the same-to put about $200,000,000. The August 1 sched- as much of the distribution of controlled ules call for $65,800,000,000 in muni- materials on as straight line a basis tions this year (table, page 12). Half as possible; to tie claimant agency al- of this had been realized in the first lotments as closely as possible to the seven months. Ground ordnance and mer- products the claimant agencies need to chant vessels passed the halfway mark fulfill their authorized end product in July. Naval vessels were just about programs. And that's what de-orphaning at it; aircraft had not quite reached it. B products accomplishes. Less and less The newest overall schedule cannot steel, copper, and aluminum is subject be met. Even if the average gains of to horizontal PRP distribution. This the first seven months were maintained carries out the original CMP idea; and during the rest of the year, 1943 muni- while a fewmore B items may be switched tions output would reach only $62,000,- over into the other categories, the B 000,000. And recent performance offers product area, as it stands today, has no assurance that such gains can be been stabilized. readily realized. CONFIDENTIAL 12 CONFIDENTIAL WAR PROGRESS PRODUCTION PROGRESS General Summary (Value of production, in millions of dollars) Total Wor MONTH OR Total Total Miscel MONTH OR Munitions & Construction MONTHLY AV. Program Munitions Munitions MONTHLY AV. Construction (Gov't Financed Valuation of 1942 1st Quarter $ 2,790 $ 2,328 $ 1,648 $ I 453 1st Quarter 1942 Valuation of 681 Actual 2nd Quarter 4,233 3.554 2,440 1,114 629 2nd Quarter Actual Production 3rd Quorter 5.557 4,780 3,223 1,557 735 3rd Quarter Production 4th Quarter 6,220 5,305 3.954 1,351 840 4th Quarter 1943 January 6,307 5,279 4,045 1,234 853 January -1943 February 6,519 5,460 4,274 1,186 836 February March 6,987 5,854 4,662 1,192 882 March April 7,236 6,053 4,953 1,100 962 April May 7,245 6,007 4,957 1,050 R96 May June 7.364 6,060 5,046 1,014 898 June July 7.527 6,182 5,221 961 885 July Valuation of August 6,781 5,903 878 905 August Valuation of Schedules September 7,022 6,249 773 921 September Schedules October 7.352 6,642 710 1,019 October November 7,520 6,870 650 1,002 November December 7.553 6,981 572 946 December 1944 -Ist Quarter 7,446 6,837 608 906 1st Quarter-1944 2nd Quarter 7.502 6,953 548 896 2nd Quarter 2nd Holf 7,354 6,849 505 856 2nd Holf 1942 Actual Production 56,400 47,902 33,793 14,109 7.974 1942 Actual Production 1943 Actual plus Schedule 77,123 65,803 11,320 11,005 1943 Actual plus Schedule 1943 Required Production 78,312 66,992 11,320 10,384 1943 Required Production 1944 Schedule 88,968 82,468 6,500 10,541 1944 Schedule 1944 Required Production 88,867 82,367 6,500 10,887 1944 Required Production Aircraft & Ground Noval Vessels, Merchant MONTH OR Combat Ordnance & MONTH OR Aircraft Army Vessels a MONTHLY AV Munitions (a) Munitions (b) Equip. (Incl. MONTHLY AV. Munitions Army Aux) Mointenance Valuation of 1942 1st Quorter $ 515 $ 279 $ $ Ist Quarter 1942 Valuation of # 1,195 300 100 Actual 2nd Quorter 1,811 740 475 431 164 2nd Quarter Actual Production 3rd Quorter 2,488 953 728 587 220 3rd Quarter Production 4th Quarter 3,113 1.174 950 738 251 4th Quarter 1943 January 3,192 1,290 896 723 283 January -1943 February 3,438 1,374 955 792 317 February March 3,780 1,526 1,021 893 the March April 3,991 1,625 1,066 922 378 April May 4,061 1,714 1,038 945 364 May June 4,148 1.757 1,065 922 404 June July 4,336 1,844 1,117 983 392 July Valuation of August 4,998 2,197 1,174 1,193 434 August Valuation of Schedules September 5,328 2,384 1,252 1,238 454 September Schedules October 5,623 2,561 1,343 1,244 475 October November 5,868 2,713 1,413 1,264 478 November December 6,035 2,844 1,425 1,300 466 December 1944 1st Quarter 5,932 2,959 1,245 1,267 460 Ist Quarter-1944 2nd Quorter 6,058 3,091 1,253 1,250 464 2nd Quarter 2nd Hglf 5,993 3,206 1,111 1,154 522 2nd Holf 1942 Actual Production 25,819 10,148 7,296 6,169 2,206 1942 Actual Production 1943 Actual plus Schedule 54,798 23,829 13,765 12,419 4,785 1943 Actual plus Schedule 1943 Required Production 36,608 24,352 14,446 13,025 4,785 1943 Required Production 1944 Schedule 71,927 37.387 14,159 14,475 5,906 1944 Schedule 1944 Required Production 71,480 37,225 13,514 14,835 5,906 1944 Required Production Schedules and required production no of August 12 for Aircraft: as of July 1 for War Construction and selected aircraft items: as of August 1 for all others. (a) Aircraft and Aircraft Munitions: Naval Vessels, Ordnance and Equipment; Army Auxiliaries: Merchant Tessels and Maintenance. (b) Ground Army Ordnance, Signal, and Related Equipment. CONFIDENTIAL SEPTEMBER 4, 1943 CONFIDENTIAL. 13 PRODUCTION PROGRESS General Summary-Munitions, Construction, Miscellaneous Total Wor Program Total Munitions and Construction 8000 8000 6000 6000 Schedule 4000 4000 Actual Actual 2000 2000 o o 1942 1943 1944 1942 1943 1944 War Construction Total Munitions (Government Financed) VALUE DELIVERED OR PUT IN PLACE-MILLIONS OF DOLLARS 8000 2000 1600 6000 1200 4000 Schedule 800 Actual 2000 Actual 400 Schedule VALUE DELIVERED OR PUT IN PLACE-MILLIONS OF DOLLARS 0 o 1942 1943 1944 1942 1943 1944 Miscellaneous Munitions * Combat Munitions 8000 1200 6000 800 4000 Schedule Actual Schedule 400 2000 Actual *Automotive vehicles, clothing and personal equipment, etc. o 1942 1943 1944 1942 1943 1944 Note: Monthly overage of quorter used in 2nd Quarter 1944 PROGRESS CONFIDENTIAL 14 CONFIDENTIAL WAR PROGRESS PRODUCTION PROGRESS General Summary (Value of production, in millions of dollars) Artillery & MONTH OR Combat Aircraft Aircraft Artillery MONTH OR Tonk Connon MONTHLY AV Plones Armament Ammunition B Equipment MONTHLY AV. Ammunition Valuation of 1942 1st Quorter # 180 $ 19 5 34 $ 21 $ 48 1st Quorter - 1942 Valuation of Actual 2nd Quorter 233 29 36 31 81 2nd Quorter Actual Production 3rd Quorter 294 30 62 55 102 3rd Quorter Production 4th Quorter 367 38 76 95 109 4th Quorter 1943 January 361 38 58 105 95 January -1943 February 442 38 80 123 57 February March 513 41 76 120 107 March April 575 42 91 126 95 April Moy 647 41 88 113 104 May June 670 42 ° 101 118 June July 709 43 y5 101 103 July Valuation of August 887 43 120 116 102 August Valuation of Schedules September 966 43 147 121 118 September Schedules October 1,055 114 158 133 152 October November 1,125 44 167 139 186 November December 1,188 # 176 135 241 December 1944 Quarter 1,219 45 130 82 203 1st Quarter-1944 2nd Quarter 1,290 47 122 79 214 2nd Quarter 2nd Half 1,406 47 104 63 214 2nd Holf (942 Actual Production 3,221 they 653 603 1,020 1942 Actual Production 1943 Actuol plus Schedule 9,138 500 1,376 1,433 1,508 1943. Actual plus Schedule 1943 Required Production 9,138 516 1,538 1,387 1,632 1943 Required Production 1944 Schedule 15,990 555 1,378 859 2,537 1944 Schedule 1944 Required Production 15,990 616 1,080 1,021 2,680 1944 Required Production MONTH OR Small Arms Small Arms Antiaircraft Antiaircraft a Infontry Combat MONTH OR MONTHLY AV. Guns & Ammunition & Infontry Weapon Vehicles MONTHLY AV Equip. Weapons Ammunition Valuation of 1942 1st Quarter $ 19 $ 12 $ 17 $ 42 $ 105 Ist Quarter-1942 Valuation of Actual 2nd Quarter 42 22 30 E1 147 2nd Quarter Actual Production 3rd Quarter 79 32 39 121 209 3rd Quarter Production 4th Quarter 101 18 51 146 288 4th Quarter 1943 - January 119 21 56 175 206 January -1943 February 113 16 56 171 251 February March 124 20 60 192 2E2 March April 131 25 58 206 293 April May 114 20 57 220 285 May June 124 18 65 232 290 June July 112 16 64 251 317 July Valuation of August 114 24 6g 236 325 August Valuation of Schedules September 144 34 79 248 306 September Schedules October 137 47 88 264 304 October November 135 58 94 275 302 November December 134 60 98 282 270 December 1944 - Ist Quarter 137 46 75 294 237 1st Quarter-1944 2nd Quarter 123 57 62 302 245 2nd Quarter 2nd Holf 87 60 51 292 189 2nd Holf 1942 Actual Production 722 254 410 1,169 2,249 1942 Actual Production 1943 Actual plus Schedule 1,507 359 843 2.752 3,431 1943 Actual plus Schedule 1943 Required Production 1,491 430 833 2,892 3,490 1943 Required Production 1944 Schedule 1,301 670 714 3,540 2,581 1944 Schedule 1944 Required Production 1,031 571 727 3,594 1,922 1944 Required Production Schedules and required production na of August 12 for Aircraft; AS of August 1 for ASP items, except for selected aircraft Items which are as of July 1. Schedules are used for required production in the case of combat planes. CONFIDENTIAL SEPTEMBER 4, 1943 CONFIDENTIAL.. 15 PRODUCTION PROGRESS Selected Items-Aircraft, Ground Army, Ships Aircraft and Aircroft Munitions Ground Army Munitions 4000 1500 3000 1000 2000 Schedule Schedule Actual 500 1000 Actual o 0 1942 1943 1944 1942 1943 1944 Merchant Vessels and Maintenance Naval Vessels, Ordnance and Equipment (Including Army Auxiliaries) VALUE DELIVERED OR PUT IN PLACE-MILLIONS OF DOLLARS 500 1500 400 1000 300 Schedule Schedule 200 500 Actual Actual 100 VALUE DELIVERED OR PUT IN PLACE-MILLIONS OF DOLLARS o 0 1942 1943 1944 1942 1943 1944 Major Combot Vessels Minor Combat Vessels 300 400 300 200 Schedule 200 Schedule 100 Actual 100 Actual o o 1942 1943 1944 1942 1943 1944 Note Monthly overage of quarter used in 2nd Quorter 1944 WAR PROGRESS CONFIDENTIAL 16 CONFIDENTIAL WAR PROGRESS PRODUCTION PROGRESS General Summary (Value of production, in millions of dollars) Battleships, Antisub- MONTH OR Transports MONTH OR Cruisers & Destroyers Submarines marine (Novy & MONTHLY AV. Corriers Vessels Maritime) MONTHLY AV. Voluation of 1942 1st Quarter $ 60 i 59 $ 17 $ 43 5 1 Ist Quarter 1942 Valuation of Actual 2nd Quor 73 75 20 83 6 2nd Quarter Actual Production 3rd Quarter 71 77 % 10 3rd Quarter Production 23 4th Quarter 79 R1 23 128 13 4th Quarter 1943 January 68 70 25 144 11 January 1943 February 76 76 29 205 18 February March 96 73 29 229 12 March April 85 83 27 273 15 April May 78 72 33 291 13 May ine 7F 77 31 285 12 June July 77 FO 32 314 15 July Valuation of August 86 79 35 372 20 August Valuation of Schedules September 80 22 36 382 21 September Schedules October 86 83 38 378 22 October November 91 85 39 373 23 November December 95 86 41 369 24 December 1944 Ist Quorter 101 go 46 353 24 1st Quarter 1944 2nd Quarter 109 9 50 326 31 2nd Quarter 2nd Half 114 89 46 259 41 2nd Half 1942 Actual Production 850 876 249 1,031 32 1942 Actual Production 1943 Actual plus Schedule 996 047 395 3,615 206 1943 Actual plus Schedule 1943 Required Production 996 947 395 3,615 206 1943 Required Production 1944 Schedule 1,314 1,088 562 3,593 411 1944 Schedule 1944 Required Production 1,314 1,088 562 3,593 411 1944 Required Production MONTH OR Londing Industrial Aircraft Clothing B Automotive MONTH OR MONTHLY AV. Vessels Facilities Fields & Personal Vehicles Boses MONTHLY AV. Equip. 8 Equip. Valuation of 1942 -1st Quorter 3 2 $ 352 $ 50 $ 98 $ 134 Ist Quarter 1942 Voluation of Actual 2nd Quorter 7 512 108 142 184 2nd Quarter Actual Production 3rd Quorter 84 662 219 178 211 3rd Quarter Production 4th Quorter 142 639 169 203 193 4th Quarter 1943 January EG 613 113 221 173 January -1943 February 67 577 114 208 181 February March 91 566 111 227 204 March April 49 487 113 211 227 April May 67 456 117 186 234 Moy June 62 418 107 163 241 June July 71 373 102 164 256 July Valuation of August 97 314 85 158 305 August Valuation of Schedules September 96 259 73 149 334 September Schedules October 105 226 67 212 358 October November 106 198 63 200 362 November December 107 163 55 209 337 December 1944 Ist Quorter 111 202 57 194 297 Ist Quorter -1944 2nd Quarter 106 185 52 193 284 2nd Quarter 2nd Holf 128 165 50 209 254 2nd Holf 1942 Actual Production 702 6,492 1,640 1,864 2,16K 1942 Actual Production 1943 Actual plus Schedule 998 4,650 1,120 2,317 3,212 1943 Actual plus Schedule 1943 Required Production 998 4,650 1,120 2,156 2,894 1943 Required Production 1944 Schedule 1,421 2,150 625 2,411 3,269 1944 Schedule 1944 Required Production 1,421 2,150 625 1,487 3,210 1944 Required Production Schedules and required production as of July 1 for War Construction: na of August 1 for All others. Estimates for Aircraft Fields and Bases exclude overseas military construction. Schedules ATP used for required production in all coses except Clothing and Personal Equipment and Automotive Vehicles and Equipment. CONFIDENTIAL