Bernard M. Baruch to Woodrow Wilson

ADDRESS REPLY TO B. M. Baruch, CHAIRMAN COMMITTTEE ON RAW MATERIALS MINERALS AND METALS

My dear Mr. President

I have been wondering whether in my desire to avoid burdening your mind with too many details, I had not left some things without an explanation, to which you might care to give some thought before you saw me again. For instance, the following things shown on the chart:

FOOD CONTROL. The Food Controller would purchase all food supplies coming to the Central Purchasing Agency, needed by the Army, the Navy, the Allies and perhaps the neutral nations. Contracts would be made direct for the purchaser by the Food Controller, - the Central Purchasing Agency being the clearing house.

LABOR. The Labor Section would naturally fall under the head of Secretary Wilson to whom the labor disputes affecting the industries furnishing supplies would be referred for settlement.

COST OF PRODUCTION. This section might have better been called “Cost of Production and Adjudication or Fixing of Prices”, or some simular title. Where a price was made that did not meet with the satisfaction of both sides, it could be referred to this section for adjudication. This body would hear the evidence and have at its command the cost of production, the economic situation and all the necessary information required to fix fair prices. I would suggest, that it be composed of five men of such character as Professor Goodenow, head of John Hopkins University; the head of the Tariff Commission or a member of the Tariff Commission like Mr. Roper; the head of the Federal Trade Commission or a commissioner like Mr. Colver; Judge Lovett, President of the Union Pacific and a labor man of the character of John Mitchell. It might be well to have as Chairman of the Committee, a man like Ex-President William H. Taft. If he would work[.]Prices made or approved by a committee of this nature would avoid the criticism and nasty investigation that might come after the war. The more I think of it, the greater its importance appears.

The responsibility of fixing or adjusting prices from time to time would be referred to this body. After the adjudication of a few items, the work of the committee would grow less and less, because the industries would fall in line very quickly on the basis established by its decisions. With the advice and suggestion of the Central Purchasing Agency, this body would not resolve itself into a debating society and its decisions could be made quickly.

The consumers, the producers and the government could well accept the decisions of such a body and it seems to me its conclusions would meet with the approval of all.
The Priority Committee here is a different body from the Priority Committee sitting in London, establishing the priority of the orders forwarded by the Allies. The Priority Committee here would not alone decide the priority between our Allies and the Army and Navy, but would make certain decisions when the supplies of raw materials was less than the demands. For instances, there is a shortage of lead. The Priority Committee might decide that certain uses of lead would have to cease, like the making of lead soldiers, bird shot, etc., lopping off the less essential for the more essential.

The Priority Committee might decide that a man could not build a greenhouse or it might be well to postpone the building of a public library or a skyscraper, because of the inability to obtain steel for the purpose. The Priority Committee might decide that it would be unwise to build new roads, because of the demands for materials and the demands of the labor market. The Priority Committee might decide that it would be better not to open new coal mines, but to use all of the labor on the present coal mines. The continuance of the War might necessitate the licensing of the use of certain scarce raw materials and this the Priority Committee could do.

The chart is by no means carried out in detail and I shall refrain now from going further into it. No names are on the chart as heading the various divisions. Making use of the materials we already have at hand, I would suggest the following:For instances, Legal and Accounting, Thomas L. Chadbourne Jr.; Aviation, Howard Coffin; Munitions, Frank Scott; General Supplies, Julius Rosenwald; Transportation, Daniel Willard, etc.

Awaiting your further commands,

I am

Very sincerely yours,

Bernard M Baruch

BMB/C