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Australia in the War of 1939-194 5 Civil AUSTRALIA IN THE WAR OF 1939-194 5 SERIES FOU R CIVIL VOLUME IV WAR ECONOMY, 1942-1945 AUSTRALIA IN THE WAR OF 1939-194 5 SERIES 1 (ARMY ) I. To Benghazi. By Gavin Long . II. Greece, Crete and Syria . By Gavin Long. III. Tobruk and El Alamein. By Barton Maughan . IV. The Japanese Thrust . By Lionel Wigmore. V. South-West Pacific Area—First Year . By Dudley McCarthy . VI. The New Guinea Offensives. By David Dexter . VII. The Final Campaigns. By Gavin Long. SERIES 2 (NAVY ) I. Royal Australian Navy, 1939-42. By G . Hermon Gill . II. Royal Australian Navy, 1942-45. By G . Hermon Gill. SERIES 3 (AIR ) I. Royal Australian Air Force, 1939-42 . By Douglas Gillison . II. Air War Against Japan, 1943-45 . By George Odgers. III. Air War Against Germany and Italy, 1939-43 . By John Herington . IV. Air Power Over Europe, 1944-45 . By John Herington . SERIES 4 (CIVIL ) I. The Government and the People, 1939-41. By Paul Hasluck . II. The Government and the People, 1942-45. By Paul Hasluck. III. War Economy, 1939-42. By S. J. Butlin . IV. War Economy, 1942-45. By S . J. Butlin and C. B . Schedvin . V. The Role of Science and Industry. By D . P . Mellor . SERIES 5 (MEDICAL ) I. Clinical Problems of War. By Allan S. Walker. II. Middle East and Far East. By Allan S. Walker. III. The Island Campaigns. By Allan S. Walker . IV. Medical Services of the R.A.N. and R.A.A.F. By Allan S . Walker and Others. The writers of these volumes have been given full access to official documents , but they and the general editor alone are responsible for the statements and opinion s which the volumes contain . WAR ECONOMY I942 - I945 by S. J. BUTLIN and C . B. SCHEDVI N CANBERRA AUSTRALIAN WAR MEMORIAL First published 197 7 National Library of Australia card number and ISB N ISBN for complete set of 22 volumes : 0 642 99366 1 ISBN for this volume : 0 642 99406 4 WHOLLY SET UP, PRINTED AND BOUND IN AUSTRALIA AT GRIFFIN PRESS LIMITED, NETLEY, S.A. CONTENTS Page Preface xiii Chronology xv 1 THE IMPACT OF PACIFIC WAR . 1 2 THE SEARCH FOR MANPOWER 1 3 The Schedule of Reserved Occupations and Diversion of Man - power . 1 5 The Use of Diverted Manpower . 21 Manpower as a Factor in Other Wartime Issues 24 Wages 26 Aliens 27 Women 29 Manpower for Works . 34 The Universities . 36 Assessing the Results 39 3 EXPANDING MUNITIONS PRODUCTION 48 New Locations for Production 54 Explosives 60 Weapons 62 Torpedoes 69 Tanks . 70 Aircraft Production 79 The Turning Point for the Munitions Organisation 84 4 PROBLEMS OF DOMESTIC SUPPLY 90 Controls 90 The Allied Supply Council and Lend-Lease 98 Procurement . 105 Clothing and Textiles . 114 5 GROWTH OF MUTUAL AID . 12 1 United States Lend-Lease . 121 The Extent of Mutual Aid . 128 Australian Reciprocal Aid . 131 6 ALLIED WORKS . 140 Labour for the Allied Works Council . 144 Equipment and Materials . 149 The Diminishing Need for the Council . 152 V 7 REORGANISING CIVILIAN INDUSTRY 15 4 Efforts to "Rationalise" 160 Clothing . 160 Packaging 164 Bread 167 Efforts to "Concentrate" 167 Flour-milling . 168 Superphosphate 169 Banking and Insurance 169 Tea 171 The Problems of Advertising 173 Brands and Trademarks 174 Scope of the Activities of the Department of War Organisatio n of Industry 177 Wines and Spirits 177 Matches . 178 Newspapers 181 Refrigerators 182 Furniture 184 The Retail Trade 185 8 RURAL INDUSTRY UNDER STRAIN 189 The States' Role in Agricultural Production Goals and Distric t Committees 195 Labour for Rural Industry . 196 The Women's Land Army 199 Exports a Continuing Problem 201 Wool 201 Wheat 204 Barley 206 Apples and Pears 207 Canned and Dried Fruits 209 Wine 210 Rabbit Skins . 21 1 Hides and Leather 212 9 CRISIS IN SHIPPING 215 Shipping Organisation 215 Requisitioning 219 Chartering . 220 Labour 225 The Seamen's Union 225 Stevedoring . 227 Cargo Control 230 Shipbuilding . 240 Vi 10 LAND TRANSPORT • 247 Military Demands on Rail Systems . 249 Restrictions on Passengers and Freight • 254 Railway Equipment and Construction 257 Labour 260 Coal for the Railways • 262 Fuel for Road Transport 265 Substitute Fuels 267 Vehicle Accessories • 271 Restrictions on Road Transport 275 Commercial Deliveries • 276 Pooling . • 277 Sources of New Vehicles • 279 11 CONSUMER RATIONING • 286 The Decision to Ration 287 Clothing • 294 Tea 300 Sugar 302 Butter 304 Meat 305 12 MEETING INFLATION 310 "The National Economic Plan" . 314 Investment and Property Control 316 Price Control 325 Uniform Tax 33 1 13 THE WAR ECONOMY IN MID-PASSAGE . 339 14 REASSESSING MANPOWER PRIORITIES 348 In Search of Policy . 348 Towards Regional Specialisation 360 Screening for Labour . • 366 Rural Labour Organisation • 374 The Manpower Release Tangle 380 15 MUNITIONS IN RETREAT 391 The Struggle for Production Control 391 Restructuring Production 400 Aircraft Production 410 Dismantling the Arsenal 419 Vii 16 SUPPLY IN THE FINAL PHAS E The Directorate of Supply . Contracts Commodity Controls Clothing and Textiles . Coal . Minerals Production . Towards Restriction of Mutual Aid Mutual Aid in Stage II . 17 SHIPPING AFTER THE CRISI S The Supply of Shipping . Shipbuilding . Waterside and Maritime Problems Post-War Policy 18 FOOD PRODUCTION AND ALLOCATIO N Agriculture and the War Economy Production Planning and Contracts Allocation . 19 PRICE STABILISATION AND WAGE S Towards Price Stabilisation Price Stabilisation in Application Cost of Subsidie s Wages Rent . Prices Enforcemen t 20 FINANCIAL POLICY . The Tax Harves t Loans for Victory Interest Rates Investment Contro l External Finance and Trade Mutual Aid: Termination and Settlement Banking Legislation . 21 TOWARDS A NEW SOCIAL ORDE R First Steps . The Employment Approach Australia and Article VII : The Defence . Australia and Article VII : Broader Horizons Full Employment at Home . 22 RECONSTRUCTION—THE MANPOWER DIMENSION 680 Plans and Planners . 680 Manpower Budgeting 68 5 Population 70 1 23 RECONSTRUCTION—THE FEDERAL DIMENSION • 70 7 National Works . • 707 Regional Planning . 71 2 Housing . 71 5 Training and Education 72 4 • Soldier Settlement and Rural Industries . 73 3 24 INDUSTRIAL RECONSTRUCTION , 74 2 The Secondary Industries Commission . 742 Principles . 745 The Role of Exports . 74 8 Motor Vehicles . 75 2 Shipbuilding, Textiles and Optical Instruments . 76 2 Disposal of Munitions Factories . 767 25 THE COLLAPSE OF THE WAR ECONOMY . 773 Preparing for the Transition . 77 3 The "White Paper Controls" . 777 Disposal 794 INDEX . 79 9 ix ILLUSTRATION S Page "That's what we get for writin' to Man-power for a shearer ." (Cartoon by Percy Lindsay) . 20 "All right—tenner a week or I work in a munitions joint!" (Cartoon) . 28 "Now, before you leave us, Sarah, I must know how you peel the eggs before frying them." (Cartoon by Percy Lindsay) . 30 "Blocking the Road." (Cartoon by Wells) 96 Introducing Our New Inspector. (Poster) . 110 Instead of These we are making These . (Poster) . 110 Bread Zoning Released 1,514 Carters. (Poster) . 11 1 "It's moments like these . " (Cartoon by Frith) 118 "The New Embarkation Line." (Cartoon by Wells) 138 Why does Mummy do all the War Work? (Poster) . 142 Women wanted to Can the Crops. (Poster) . 142 No One Else can do Your Share . (Poster) . 143 "Dedman Sells no Tails ." (Cartoon by Armstrong) . 162 "You can't just say `We'll build our nest here'." (Cartoon by Miller) . 166 "My Country 'tis of Thee!" (Cartoon by Armstrong) . 226 "The Stork Got There First ." (Cartoon by Wells) . 266 "We girls know when you men do run out of gas these days ." (Cartoon) . 268 "Her Letter to Her Soldier." (Cartoon by Scorfield) . 288 "The Lights that Failed ." (Cartoon by Armstrong) . 290 "Around the Troughs." (Cartoon by Armstrong) . 296 "Alice in Blunderland." (Cartoon by Frith) . 326 "Where is Everybody?" (Cartoon by Armstrong) . 352 "Righto! Boys, get your identity cards ready—we're from the Manpower! " (Cartoon by Dixon) 354 "Never mind about my hat and coat—would you please check these in? " (Cartoon by Dixon) . 436 He's Telling Santa Claus . (Cartoon by Hallett) . 442 The Home Front . "Don't you know there's a war on—between the unions? " (Cartoon by Frith) . 486 Change over to a Victory Job. (Poster) . 494 "Honourable thanks Absentee." (Poster) . 494 Clothing is Vital. (Poster) . 495 "No inspector, jewels are safe. It's the half-pound of rump steak that's missing!" (Cartoon by Miller) . 510 Food is a munition of war! (Poster) . 526 Dairy Farmers, too, have a victory to win . (Poster) . 526 Put all you've got in the Third Liberty Loan. (Poster) . 527 "Better not ask too much for 'er or we'll 'ave the Prices Commissioner on our tails!" (Cartoon by Percy Lindsay) . 546 "Hail and Farewell ." (Cartoon by Armstrong) . 572 "This Jemmy's no Good, Gimme the Gelignite ." (Cartoon by Eyre Jr) . 616 Rehabilitation. (Cartoon by Hallett) . 698 "Haven't you got one empty house? We haven't had a decent haunt for five years!" (Cartoon by Dixon) . 722 Revocation of Controls. (Cartoon by Scorfield) . 786 xi MAPS AND DIAGRAM S Page Commonwealth Shipping Administration—Organisation as at 30th September 1942 (diagram) . 21 8 Merchant Shipping Casualties in Australian and Territorial Waters resulting from enemy action (map) . 24 1 Other Merchant Shipping Casualties from 1940 to December 1945 (map) 24 2 Australian Railways (map) 25 2 Location of Government Munitions Factories (map) 39 6 Retail Prices, Quarterly 1939-48 (diagram) . 54 8 Commonwealth Income Taxes before Uniform Taxation—Personal Exertio n Income Remaining 57 6 Commonwealth Income Taxes after Uniform Taxation—Personal Exertion Income Remaining 57 6 Money Supply and Selected Bank Assets 1939-45 (diagram) 58 5 Interest Rates 1942-45 (diagram) .
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