ABSTRACT

THE fundamental purpose of the Government's war-time controls in the munition industry, textiles, shipping, food and so on was a positive one; namely, to secure to itself for use in the war effort great quantities of specialised services and goods. It is true, of course, that, when there is an abnormal demand for anything - and the Government was naturally in a position to force up demand indefinitelythis fact of itself always tends to stimulate people to direct their efforts to producing things to meet the expanded demand rather than other things. But the reaction is usually a slow one; and during the war the essential requirement was speed. The Government was concerned to surmount at once by direct attack obstacles which in the ordinary course could only be turned by a slow and gradual movement. The need for direct attack was, of course, intensified in industries where the Government itself, by artificially keeping down prices, removed what would normally have been the main stimulus to private initiative. To achieve its fundamental purpose, therefore, it had to act.