cooperation with experts in civil life. During the year the Board consulted the Manufacturing Chemists Association and similar trade associations of other commodity manufacturers and set up two principal committees; namely, the Civilian Advisory Committee on Metals and a similar committee on chemicals. Through these advisory committees subcommittees were appointed for each commodity and studies prepared by these experts generally were completed at the end of the year. The revision of the "Steel Plan" is an important accomplishment made during the year in this category. The sufficiency of skilled labor in an emergency has been given particular consideration through liaison with the Joint Army and Navy Selective Service Committee and with other War, Navy, and Labor Department agencies. The data concerning the generating facilities and the estimated industrial power loads of the Nation as collected by the National Defense Power Committee during the preceding fiscal year have been reviewed and detailed analyses were completed for 3 of the 14 war-material areas. Strategic materials. In the past year notable progress has been made in obtaining adequate reserves of strategic and critical materials needed for a national stock pile in an emergency. The Army and Navy Munitions Board has taken the initiative in this program and is administering activities relative to quality and kind of materials being purchased by the Procurement Division of the Treasury and in supervising the storage locations of stock piles. Through cash appropriations, and Reconstruction Finance Corporation loans to corporations established for the purpose, over $300,000,000 in reserve materials are now being procured. War Resources Board.-To secure the advice and counsel of outstanding civilians in revising and perfecting the "industrial mobilization plan," a board consisting of the following individuals was appointed in August 1939: Edward R. Stettinius, Jr., Chairman. Robert E. Wood. This Board reviewed the industrial mobilization plan and submitted to the President recommendations and suggestions regarding the operation of the plan in an emergency. This report has been carefully studied in the Planning Branch for application when conditions so require. Evaluation. The increased and important duties now being performed by the Army and Navy Munitions Board clearly justify its inclusion in the industrial mobilization plan as the existing agency best qualified to function pending the organization of civilian superagencies and to assist those agencies in their activities. It is cooperating very effectively with the National Defense Advisory Commission. Through the Board the Army and Navy have reached a complete understanding of each other's problems in industrial mobilization and are cooperating fully in their solution. In general, it may be said that the present emergency is testing the procurement and industrial mobilization plans of the War Department. So far these plans have proved workable and of material value in expediting procurement. No need for revision of these plans in any important particular is apparent. Establishment of a Statistics Branch.-During the summer of 1939 I plainly foresaw that the increased aircraft program and expanded munitions program which appeared to me at that time to be inevitable would require much more comprehensive measures for collecting, compiling, analyzing, and evaluating data on procurement and production control than existed at that time. Accordingly, in August 1939, I directed the organization of a Statistics Branch in my office. This organization was effected along lines which past experience indicated and was started in a very modest way with one officer and four civilian employees. A gradual and steady growth has taken place which has more than quadrupled the force since last fall. The formation of the Advisory Commission to the Council of National Defense and the greatly accelerated munitions program has resulted in very heavy demands being made upon this Branch and further expansion is now under way. Since last September weekly reports on the progress of current production and procurement have been prepared. A considerable file of up-to-date information on strategic materials and on other raw materials as well as on exports and imports has been collected. A running study of the expenditure of funds appropriated for educational orders has been made. All drafting, typing, and mechanical work connected with the preparation of the munitions program of July 2, 1940, was accomplished in this Branch. A large number of special reports have been prepared from time to time on request of general staff agencies as well as other units of the War Department. Statistical service has been provided in accordance with the demands of other branches of the office. Inasmuch as the majority of the work of the Branch deals with information which is of a secret or confidential nature, strict methods of control have been instituted. At the current writing the crying needs of this Branch are for more space and more personnel in order to meet the heavy demands which are now reaching it from all sides. The Army Industrial College.-For the course of instruction ending June 1940, the Army Industrial College continued its policy of training Regular officers of the Army, Navy, and Marine Corps in the economics of war, procurement planning, and industrial mobilization, with particular emphasis on the events caused by and having influence upon the European nations now at war. The study of the correlation of military activity to the national economy was continued and efforts made to keep the studies abreast of world conditions in order to prepare the officers for their maximum usefulness during the period of maladjustment caused by an emergency. To date, 804 officers of the Regular Army, Navy, and Marine Corps have been graduated from this institution. A directive has been issued by the War Department for the inauguration of a 41⁄2 months' course of training for the maximum of 50 Army Reserve officers and a minimum of 10 Regular officers. In addition, the Navy and Marine Corps are expected to enroll approximately 15 Reserve officers. In order to adjust the course of instruction to augment the previous fimited training of these Reserve officers and to increase their value to the Nation, studies and texts were revised and condensed with emphasis placed on the availability and utilization of national resources and economic power, labor, war trade, shipping, raw materials, trade treaties, etc. Every effort will be made to inculcate in the graduating officer the necessity for minute appraisal and evaluation of all phases of the national economy. The course of instruction, as heretofore, will cover postgraduate work and will follow the problem or case method. NONSTATUTORY DUTIES The nonstatutory duties which have been delegated to me during the past year have received the careful and efficient attention of the personnel on duty in my office. The increased activities relative to the purchase of real estate have been carefully supervised. The interests of the Government have been diligently protected in all matters relating to the disposal of surplus property, foreign and domestic claims, and national cemeteries, parks, and monuments. National matches.-The National Board for the Promotion of Rifle Practice has the responsibility of supervising the national matches at Camp Perry, Ohio, and marksmanship training in senior and junior civilian rifle clubs and certain schools throughout the United States and Territories. The national matches for 1939 were attended by 127 teams and 1,124 individuals and again furnished evidence that our marksmanship training is sound. The Small Arms Firing School conducted in connection with the national matches had an attendance of 1,446 in the basic course and 414 in the advanced course. All graduates of this school are potential instructors and some of the most efficient instructors in rifle marksmanship in the United States are developed in this school. A short course of instruction with the M1 rifle was conducted in connection with the Small Arms School. This course was of especial interest to the civilians attending and the impressions regarding the rifle were generally favorable. Regular Army and Marine Corps personnel operated the matches. The assistance accorded civilian rifle clubs and schools is limited to 1,600 senior clubs, 400 junior clubs, and 25 schools. On June 30, 1940, there were enrolled with the Director of Civilian Marksmanship 1,547 senior clubs, 386 junior clubs, and 19 schools. The increase in numbers firing required qualification courses was most gratifying as showing a healthy interest throughout the Nation in this very valuable asset to national defense. However, the suspension of Government assistance through the issue of rifles and ammunition to enrolled clubs has almost entirely stopped civilian marksmanship training among them. It is hoped that assistance may be restored at an early date. Conclusion. The soundness and effectiveness of the War Department organization for procurement has undergone a major test during · the past year. I am indeed gratified to report that the operating experiences have proved most satisfactory and that no important modifications in methods and procedure appear to be necessary. The magnitude of the appropriations already made available for the next fiscal year, together with greatly increased estimates about to be transmitted to the Congress, indicate that the Nation is at last thor oughly aroused to the imperative need for adequate industrial support of a war effort. The intensive activities undertaken by all procurement agencies of the War Department during the past 12 months are necessary but preliminary to the major task which will confront these agencies in the coming year. Without the benefit of plans perfected by 20 years of study the successful and timely execution of this program would have been virtually impossible. This investment in planning activities is now paying material dividends in the saving of time, the most critical item in our armament program. As I have consistently and persistently warned the Nation during the past 3 years, munitions cannot be purchased in the open market. Time is required for manufacture, for conversion of existing plants, and, in many cases, for the creation of new facilities. The months needed for these purposes represent the irreducible time required for the procurement of arms and equipment. Due to the efficacy of the War Department preparations, there is every reason to believe that the necessary munitions for our military forces will be obtained with a maximum of efficiency and a minimum of delay. LOUIS JOHNSON, The Assistant Secretary of War. |