WHAT PEACE CAN MEAN TO AMERICAN FARMERS 3 



categories: (1) Cancellation of Government war contracts, and re- 

 conversion and expansion of plant capacity for civilian goods, (2) 

 disposal of surplus military supplies in such a manner that the 

 markets for new civilian goods will not be flooded, (3) transfer of 

 several million civilian workers and military personnel to be de- 

 mobilized from war work from one area of the country to another 

 to facilitate reemployment at new jobs, (4) maintenance of incomes 

 of demobilized veterans and war workers while they are searching 

 for new jobs, (5) proper elimination of wartime controls, such as 

 rationing, price ceilings, allocation of materials, and restrictive man- 

 power regulations, and (G) maintenance of farm prices and the pur- 

 chasing power of farmers while agricultural production is shifted 

 from wartime to peacetime goals. 



Most of these problems are currently receiving the attention of 

 the legislative and executive branches of the Federal Government and 

 are topics of public discussion among millions of citizens. Some of 

 them have already been dealt with, in part at least, by both legisla- 

 tive and executive actions. For each general t}^pe of problem, guid- 

 ing principles and procedure either have been or are being developed. 

 Since this is true, little can be gained by outlining in this report 

 the consequences of alternative policies. Two general points, how- 

 ever, may well be recognized : ( 1 ) The importance of having as large 

 a production of civilian goods as possible just as quickly as the 

 military situation permits and (2) the probability of some unemploy- 

 ment during the transition period, even though the very best of re- 

 conversion policies are followed. 



A minimum of delay between the cancellation of war contracts and 

 the manufacture of civilian* goods will result in a minimum of un- 

 employment. If attempts are made to protect the market for firms 

 engaged in war production by holding cloAvn the civilian production 

 of competing firms whose war contracts have expired, the result will 

 inevitably be a decrease in total production and a rise in unemploy- 

 ment. 1 



Because of the time required to re-tool and re-equip plants changing 

 from the production of war goods to the production of civilian 

 goods, some unemployment during the transition is almost inevitable. 

 Some plants will be permanently closed down and workers will be 

 faced with the task of finding new jobs, others will probably close 

 for a few weeks or months before they can start producing civilian 

 goods again after their war contracts expire or are terminated, and 

 still others will have to be built. 



In shifting from wartime to peacetime goals, agriculture will have 

 to make some adjustments in production, — particularly in the case 



*The Special Senate Committee Investigating the National Defense Program has sug- 

 gested the following principles : 



The committee helieves that we should have confidence in the operation of the free 

 democracy for which the Avar is heing fought. The committee therefore believes that a 

 manufacturer should be allowed to make any article he desires to make and thinks he has 

 the facilities to make, providing : 



1. Basic commodities such as steel and aluminum that are required for manu- 

 facture are available in the shapes and forms required by him, and are not 

 required for the manufacture of war or essential civilian 'items ; 



2. The proposed manufacturing operations are not undertaken in an area 

 which the War Manpower Commission has classified as having an acute man- 

 power shortage ; and 



3. The manufacturer has not been offered a contract or subcontract for a war 

 item, or notified by a war procurement agency that a contract probably will be 

 offered him in the immediate future. — Third Annual Report of the Special Com- 

 mittee Investigating the National Defense Program, March 4, 1944. 



