Harper's Pictorial Library of the World War, Volume XII : $b The Great Results of the War
History
Harper's Pictorial Library of the World War, Volume XII : $b The Great Results of the War
League of Nations; Treaty of Versailles (1919 June 28); World War, 1914-1918; World War, 1914-1918 -- Economic aspects; World War, 1914-1918 -- Finance
Industrial preparation for war was guided by the principle of priority.
This is an old principle, but it began to be applied in unheard-of ways.
When an army is to be moved all means of transport in sight are
commandeered. When an army is to be fed, civilians protest in vain
against the seizure of stores. These practices were always features in
the history of warfare.
A novel factor in priority as applied during the present war was the
breadth of its scope.
"When the whole industry of a nation is mobilized behind the
fighting line, it is not merely finished munitions that must be
given priority in transportation, but also the materials and
fuel for further munitions production. The food supply of the
industrial population, as well as that of the army, has a claim
to priority. So also have clothing supplies, lumber for
housing, and whatever else is essential to working efficiency.
In production it would be impossible to fix definite limits
upon the application of the priority principle. We can not much
longer permit the free flotation of the securities of foreign
enterprises, nor even of the less essential domestic
enterprises, so long as national loans or issues designed to
finance railways or industrial enterprises of prime necessity
are to be floated. Modern warfare, in involving the whole
national life, has made inevitable a control of business
practically coextensive with the economic system.
"The application of the priority principle to transportation
and production is quite in accord with plain common sense. It
is none the less revolutionary in its social economic
implications. What it means is that necessities shall have
right of way. If we have excess productive capacity, the
unessentials and luxuries may be provided, but not otherwise.
And necessities are definable in terms that take account only
of physical requirements. There is no room in the definition
for class distinction. A new country house may seem a matter of
necessity to the man of fortune, but he will persuade no
priority board to permit shipment of building materials while
cars are needed for coal or wheat. Nor will he persuade them to
let him have lumber that could be used for ships or
workingmen's camps, or labor that could be employed to
advantage in production for more clearly national and
democratic needs."
WAR SUPPLIES
The United States, following the experience of other belligerents,
adopted the policy of decentralization in the production of war
supplies. A plan was worked out under which the small and large
manufacturer were given equal opportunity to obtain war business:
Public-domain text, read in full here on John Shaqi.
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