What is the War Industries Board?
The War Industries Board (WIB) was a federal agency established during World War I to streamline the production of war matériel and allocate resources for the war effort. As the United States entered World War I in 1917, the government faced a significant challenge in quickly ramping up production to supply the military with the resources it needed to fight and win the war.
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Establishment of the War Industries Board
The War Industries Board was established in July 1917 under the direction of Donald D. Raney, a prominent businessman and industrial consultant. The board was officially designated as the "Committee on Special Industries, War Industries Board" but was commonly referred to as the War Industries Board (WIB).
The initial goal of the WIB was to reduce the lag between the allocation of industrial resources and the delivery of war matériel to the military. This was done by coordinating the efforts of industry and government agencies to simplify the production process, minimize waste, and increase productivity.
Major Responsibilities of the War Industries Board
The War Industries Board’s primary responsibilities included:
• Production Control: Regulating the production of critical war materials such as coal, steel, and synthetic rubber.
• Supplier Selection: Identifying reliable suppliers and negotiating contracts with them to ensure a consistent supply of war matériel.
• Price Controls: Setting prices for critical war materials to prevent overcharging and maintain fairness among suppliers.
• Economic Mobilization: Conducting research and analysis on the economic impact of war production on the national economy, and providing recommendations to mitigate any negative effects.
• International Trade: Navigating international trade and diplomacy to ensure the WIB’s war production initiatives did not harm relations with other countries.
Key Achievements and Impact
The War Industries Board had a significant impact on the war effort, achieving remarkable results in:
• Increased Production: The WIB helped to increase coal production by 25%, steel production by 30%, and aluminum production by 50%, compared to pre-war levels.
• Coordination and Streamlining: The WIB streamlined production processes, reduced waste, and minimized duplication of efforts among industries and government agencies.
• Price Regulation: The WIB’s price controls helped to prevent extreme price inflation, ensuring a fair and reasonable market price for war materials.
• International Cooperation: The WIB facilitated international trade and cooperation, ensuring access to critical war materials from abroad.
Table 1: WIB Production Statistics
Material | Pre-War Production Level | WIB Production Levels |
---|---|---|
Coal | 350 million tons | 440 million tons |
Steel | 15 million tons | 20 million tons |
Aluminum | 10 million pounds | 15 million pounds |
Dissolution and Legacy of the War Industries Board
The War Industries Board was dissolved on August 10, 1919, after World War I came to an end. Although the agency was short-lived, it played a crucial role in the war effort and set a precedent for post-war economic planning and industrial mobilization.
In the years following World War I, the WIB’s legacy can be seen in the development of institutions such as the Defense Production Act of 1918, which granted wartime powers to the President during times of national emergency, and the Federal Price Administration, which was created to regulate prices during peacetime.
The War Industries Board’s war-time achievements serve as an important reminder of the effectiveness of government-industry partnership in times of crisis, and its legacy continues to influence national economic policy-making to this day.
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