The Army and Economic Mobilization

By R. Elberton Smith | Go to book overview

CHAPTER XVII The Army and OPA Price Control

Background and Nature of OPA Price Control

Direct control over prices, as contemplated by the Industrial Mobilization Plan,1 became the responsibility of the Office of Price Administration in World War II. As in the case of material controls, the development of the principles and machinery of price controls was a gradual process. Throughout 1940 and the early part of 1941, the NDAC Price Stabilization Division relied upon voluntary controls to keep prices of basic materials and commodities in line.2 On 11 April 1941, in response to increasing upward pressure upon prices, the President ordered the creation of the Office of Price Administration and Civilian Supply.3 During the remainder of 1941 a number of specific price controls were adopted, but these were confined principally to raw and semifabricated materials and exercised relatively little direct effect upon the placement of prime military contracts. The absence of specific legislation authorizing price controls and providing definite powers and methods of enforcement was a considerable handicap throughout the defense period. Under these conditions, Army contracting officers were forbidden to purchase items containing materials bought at over-ceiling prices without the prior written approval of the Under Secretary of War.4 Complete observance of this requirement would have placed insuperable burdens of detection and enforcement upon contracting officers, and it has been suggested that price ceilings were widely disregarded by contractors for military procurement during this period.5

With the advent of Pearl Harbor and the introduction of comprehensive price control legislation in Congress, the stage was set for controversy over application of formal price controls to military procurement.6 On 19 December 1941 the Secretary of War and the Secretary of the Navy, after unsuccessfully appealing to the Senate Banking and Currency Committee, addressed a joint letter to the President requesting inclusion in the pending bill of a blanket exemption of

____________________
1
See above, pages 93 and 229
2
(1) CPA, Industrial Mobilization for War, p. 33. (2) Worsley, Wartime Economic Stabilization, pp. 25-26.
3
Executive Order 8734. OPACS became OPA in August 1941 with the transfer of Civilian Supply to the Office of Production Management. Leon Henderson, the NDAC commissioner for price stabilization, was the head of OPACS and of OPA until 1943.
4
(1) OUSW Memo, 9 Jul 41, sub: Price Stabilization. (2) OQMG Cir Ltr 156, 16 Jul 41.
5
Worsley, Wartime Economic Stabilization, p. 136, citing T. J. Kinsella, War Procurement and OPA (an unpublished manuscript in OPA Historical files).
6
(1) H. Com. on Banking and Currency, 77th Cong., 1st Sess., Hearings on H. R. 5479, Price Control Bill, Pts. 1 and 2, August to October 1941. Under Secretary of War Patterson testified strongly in favor of vigorous price control legislation. 2:1519-52. (2) S. Com. on Banking and Currency, 77th Cong., 1st Sess., Hearings on H. R. 5990, Emergency Price Control Act, 9-17 December 1941.

-397-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Army and Economic Mobilization
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 749

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.