Previous chapters have shown that efficient organization for war in-
volves all phases of economic activity. None can be neglected if the war objectives are to be achieved, for modern wars are all-out efforts. Only
as the people of the United States learn this lesson can there be assur-
ance that the war program will be successful. It is the purpose of this
chapter to analyze the required relationships which must be established
in the area of monetary policies and organization in order that this seg-
ment of the economy will be fully harmonized with all others in the
task of accomplishing the major objectives of the war program.

The problems in the field of monetary policy which deserve careful
consideration include the following: What monetary policies and organi-
zation will facilitate and not obstruct the war effort? Is our present
monetary and banking organization suitable for a war economy? Should fundamental changes be made, or are only minor corrections necessary?
Are present monetary policies contributing toward the success of the
war program, or are they likely to cause its failure? Unless these prob-
lems are quickly and correctly solved, the war program will, at the
least, be seriously impeded, and may actually be defeated. Consequently,
the problems of monetary policy and organization are just as funda-
mental as those involved in the actual assembly and training of armed
forces.

In a war economy increasingly large proportions of the national in-
come, both in terms of money and real income, must be placed under government control to be used for war purposes. Activity must be
shifted more and more from the production of peacetime goods to the production of those types of goods required for war purposes. Although
the program is typically expressed in monetary terms, as requiring the expenditure of billions upon billions of dollars for the stated war pro-

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