The Delense Production Act ol 1950

"The Defense Production Act of 1950" is the title of the nerv larv passed by Congress granting to the President authority to establish controls over credits, pri,ces and wages, labor disputes, allocations, requisitioning, priorities, financial assistance, and general provisions.

The text of the law declares that: "It is the objective of this Act to provide the Prdsident with authority to accomplish these adju3tments in the operation of the economy. It is the intention of the Congress that the President shall use the powers conferred by this Act to promote the national defense, by meeting promptly and effectively the requirements of military programs in support of our national security and foreign policy objectives, and by preventing undue strains and dislocations upon wages, prices, and production or distribution of materials for civilian use, tvithin the framework, as far as practicable, of the American system of competitive enterprise."

Under this larv the President has the authority to regulate and guide e.very kind of business, and Washington may use po\\'ers affecting the lives of every citizen, and business of every sort. Business can be told what to produce, allocations of materials can be made, and goods and services may be rationed. Military needs get first call and the Government may restrict production of anything that interferes rvith the economy of the nation. Inventories of scarce and vital materials must be held in normal quantities and the anti-hoarding provisions of the Act carries penalties, as do some other titles of the Act.

An Executive Order immediately issued under the new Defense Production Act was No. 10161, which creates a new and independent agency to be known as Economic Stabilization Agency, headed by an Administrator, to whom is transferred the business of administering the Defense Act, and to rvhom is delegated the authority given the President under the Act. The Administrator is to be appointed by the President with Senate approval.

Immediately the Council of Economic Advisors (C.E.A.) ordered all business to keep its records for the space betrveen May 24 and June 24, 1950, for the purpose of comparison.

The first new regulation that was issued after the signing of the Defense Production Act was Consumer Credit Regulation "'W", which is much the sarne as the old Regulation "W" that expired on June 30, 1949, except that home improvement credits are now included. Not .previously cqv: ered, the new Regulation provides for a down payment oi at least I0/o, and 30 months maximum maturity on the balance, on residential repairs, alterations or improvements' involving credit of $2500 or less which are described 6y-the Regulation as:.

"Materials, articles, and services in connection with repairs, alterations and'improvements upon urban, suburban, or rural real property in connection wlth existing.structures. This does not relate to structures or distinct parts thereof, which so repaired, altered, or improved are designed exclusively for non-residential use "

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Businesi Must Keep Records of May - June Sales

"By virtue of the authority vested in me by the Defense Production Act of 1950, and as President cif the United States, and in order to provide an appropriate basis for action under Title IV of the Defense Production Act o{ 1950, it is hereby ordered:

"L Every person who sold or delivered goods or services, or offered them for sale or delivery, in the course of trade or business during the period from May 24, 195O, to June 24, 1950, inclusive, shall preserve all his records for such periods relating to:

"(a) The prices received or asked for such goods 6r services :

"(b) The labor, material, acquisition, and .other costs incurred in connection with such goods or serl-ices.

"2. This order does not apply to:

"(a) Records of an individual relating to wages or salary received by such individual.

"(b) Records relating to sales of agricultural commodities by the individual producer thereof, and

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