b. The Cabinet.-The President's peace-time Cabinet remains as his advisory body for normal activities. His Cabinet officers continue to direct and control the organizations for which they are responsible: They cooperate with the war agencies.

c. Advisory Defense Council.-The Advisory Defense Council is the President's special war ministry. Its functions are to aid and advise the President in all matters pertaining to the prosecution of the war. It cooperates under the general supervision of the President to control and direct the combatant, economic, and moral efforts of the Nation in waging the war.

d. War Industries Administration.-The functions of the War Industries Administration follow closely those performed by the War Industries Board during the World War. In general, its mission is to coordinate the munitions requirements of the Government and the requirements of the civilian population for the ordinary necessities of life and to effect an equitable adjustment between these requirements and the production capacity of the Nation.

The organization, functions, and procedure are set forth in appendix I.

e. War Trade Administration.-The control of war trade involves functions and activities requiring cooperation between the Departments of State, Commerce, and Agriculture, the War Industries Administration, and the Shipping Board, and might affect materially the strategic plans of the War and Navy Departments. For this reason establishment of an independent organization is indicated. Its primary mission is to control imports and exports to the best interests of a successful economic mobilization, negotiate trade agreements, and to further the economic isolation of the enemy.

The organization, functions, and procedure are set forth in appendix II.

f. War Labor Administration. The mission of the War Labor Administration primarily is to insure that war industries and industries catering to essential civilian requirements are able to secure and maintain adequate forces of labor, skilled and unskilled, to accomplish their missions. Consideration of the human elements and the political questions involved indicates the desirability of establishing a separate agency.

The organization, functions, and procedure are set forth in appendix III.

g. Public Relations Administration.-The mission of this administration is to coordinate and direct the national publicity activities so as to insure that the purposes, views, and progress of the Government in prosecution of the war are properly and adequately presented to the people and that the aid of public opinion is enlisted to the fullest possible extent in behalf thereof.

The organization, functions, and procedure are set forth in appendix IV.

h. Selective Service Administration. This agency is responsible for the administration of the Selective Service Act which, upon enactment, will govern the selection of personnel for and their induction into the armed forces.

The organization, duties, and procedure are set forth in the Selective Service Plans, appendix V, prepared by a joint Army and Navy Selective Service Committee.

i. Other administrations.-The need for separate administrations for the control of food, fuel, and transportation is undetermined. It is intended that such control as is now deemed necessary during the early stages of industrial mobilization will be exercised through the War Industries Administration. However, if later conditions warrant, independent administrations will be created and their status will be as indicated on the chart.

j. Price Control Committee. This is a quasi-judicial body for the formulation of policies and methods for the control and stabilization of prices, wages, and profits. Its decisions are published in the name of the President and they are administered through the established war-time control agencies. Representation of interested Government agencies on this committee is intended to insure complete cooperation, and the elimination of conflicting action.

The organization, functions, and procedure are set forth in appendix VI.

k. Capital Issues Committee.-The necessity for preferential application of capital and resources to essential enterprises calls for some form of official control of security issues with a view to preventing unnecessary capital expenditures. The Capital Issues Committee is designed to pass upon advisability of proposed issues of new securities and thus regulate the flow of capital so as to accomplish this end.

The organization and powers are set forth in bill no. 8, appendix VIII.

1. National war service corporations.-Those on the chart are shown as illustrations only. These and others may or may not be necessary. The formation of such corporations puts the Government in business and is objectionable. However, where, on account of excessive risks or the lack of adequate assurance of a reasonable return on the investment, private capital will not make itself available to essential enterprises, the Government itself must assume the responsibility. The one now deemed necessary and for which provisions have been made in this plan is the War Finance Corporation. The organization and powers of the latter are set forth in bill no. 7, appendix VIII.

m. Agencies for effecting coordination between the War and Navy Departments. These agencies are described and listed in an official pamphlet entitled "Joint Action of the Army and the Navy.

The existing joint agencies for coordination between the Army and Navy have no legislative nor executive basis for existence. These agencies exist as a result of agreement between the Secretaries of the War and Navy Departments.

The agency concerned with the formulation of plans and policies to be adopted by the Federal Government for coordinating and controlling national industrial effort in an emergency is the Army and Navy Munitions Board. The current organization of this Board and the duties pertaining to it are set forth in appendix VII.

APPENDIX I. INDUSTRIAL MOBILIZATION PLAN, 1933, ADMINISTRATION OF WAR INDUSTRIES

The establishment of the Administration of War Industries and the exercise of the functions herein described require legislative authority and executive action.

Drafts of a proposed bill and a presidential proclamation for carrying into effect the provisions of this plan are contained in appendix VIII, legislation.

SECTION B.-INTRODUCTION

1. The War Industries Administration is the industrial pivot about which war-time control turns. It is the most powerful arm of the President for converting the industries into war uses. It is the meeting point of the war machine and industry. It will clear requirements for the Government war agencies, industry and the civilian population, allocate to the trade the output of commodities required immediately or in the future, assign priority of production and delivery to war materials, curtail nonessential production, conserve wasteful production by various restrictions, and collaborate with other governmental agencies in controlling prices.

2. It will be noted that there is considerable similarity in the organization charts of the Army and Navy Munitions Board and the War Industries Administration as both have similar functions-the balancing of requirements and resources. The planning agencies of the Army and the Navy initiate this work by peace-time procurement planning and providing for intial placing of orders for munitions on outbreak of war. The Army and Navy Munitions Board, although

not exercising any control over civilian industry, coordinates the efforts of the Army and the Navy and, until the War Industries Administration is created and ready to function, clears requirements for the fighting forces, allocates facilities, assigns priority of production and delivery to meet the military situation, and in general coordinates the procurement program so that the War Industries Administration can take over its functions under circumstances favorable to future control.

3. It will thus be seen that the organization and procedure of the War Industries Administration as set up in this plan will differ in some important respects from the War Industries Board of the World War that took up its duties in the midst of more or less chaotic and uncontrolled conditions.

SECTION C.-ORGANIZATION

The organization shown on the chart below is a development of the War Industries Board of the World War, and is deduced from its principal function of synchronizing Government requirements and resources. The keystone of the organization is the scheme of contacts with all of the governmental agencies and the industries of the country.

SECTION D.-ADMINISTRATOR OF WAR INDUSTRIES

The powers and responsibility of the Administration of War Industries are vested in the Administrator, who is appointed by the President and to whom he is directly responsible. The Administrator is a member of the Advisory Defense Council.

SECTION E.-ADVISORY STAFF

The advisory staff is composed of the heads of the six control divisions. It assists and advises the Administrator and cooperates under his general supervision to control and direct the work of the administration. The staff studies ways and means of balancing production and demand, formulates general policies, follows the military situation in its supply phases and anticipates future trends of industry as affected thereby.

SECTION F.-TECHNICAL STAFF

1. Price control division.

a. The chief of the division represents the Administrator of War Industries on the Price Control Committee described in appendix VI. In accomplishing this contact mission, he is responsible that the data and other pertinent information available to the various divisions in the office of the Administrator of War Industries are adequately presented for the consideration of the Price Control Committee, and that the control divisions of the office are informed as to the decisions of the Price Control Committee.

The division maintains complete data respecting current prices, rates and wages, and, through its liaison with Commodity and War Service Committees, keeps in intimate contact with the changing trends in the price structure.