War Economy

Contents

• • [covers]
  • Official History of New Zealand in the Second World War 1939–45
  • [frontispiece]
  • [title page]
  • Preface p. v
  • CHRONOLOGIES p. vi
  • ROUNDING
  • CURRENCY
  • Contents p. vii
  • List of Illustrations p. viii
  • List of Charts p. xii
  • Prelude: The War Effort p. 1
• • CHAPTER 1 — Pre-war Economy p. 4
    • Men Not Wanted p. 4
    • Employment Promotion
    • State Housing p. 9
    • Towards the Welfare State p. 10
    • Changes in Farming p. 13
    • Dependent or Independent Economy?
    • Diversification of the Economy p. 19
    • Financial Difficulties p. 20
    • Rising Retail Prices p. 22
    • Living Standards Rise and Fall
    • Pre-war Economic Crisis? p. 25
  • CHAPTER 2 — Preparation for War
    • The Need to Prepare p. 27
    • Failure to Prepare p. 29
    • Facilities for Pre-war Planning p. 31
    • Pre-war Manpower Planning p. 32
    • Proposals for a National Register p. 33
    • Reserved Occupations and Essential Industries p. 34
    • The Manpower Committee's Achievements p. 35
    • Supply Uncertainties p. 36
    • Stocks at the Outbreak of War 1 p. 38
    • The Need for New Industries p. 40
    • Perishable Exports
      • [section]
      • ‘Pre-war action in the United Kingdom p. 41
      • ‘Pre-war action in New Zealand p. 42
      • ‘Commencement of Negotiations
    • Cool Storage Inadequate p. 43
    • Power Development Neglected p. 46
    • Earthmoving Equipment p. 47
    • Assessment of Pre-war Economic Planning p. 49
  • CHAPTER 3 — From Peace to War p. 54
    • The First Few Days of War p. 54
    • Controls over Production p. 55
    • Manpower p. 56
    • The Need for Co-ordination p. 57
    • Powers to Control Individuals p. 58
    • Import Controls p. 61
    • Influences on the Direction of Industrial Development p. 62
    • Rationing of Consumption Goods p. 64
    • Marketing p. 65
    • Financial Controls—Stabilisation p. 67
    • Geared for War Production p. 68
  • CHAPTER 4 — The Demands of War p. 70
    • Men for the Armed Forces 1 p. 70
    • Overseas Service
    • Women for the Armed Forces
    • United States Forces in New Zealand
    • Finance: Two and a half Years of National Income Diverted to War Purposes 1 p. 76
    • Demands on New Zealand Farming p. 78
    • Demands on Other Industries p. 79
    • Economic Impacts of War p. 80
  • CHAPTER 5 — Increasing Pressure on Manpower
    • Manpower for the Armed Forces1 p. 81
    • Reserved Occupations p. 83
      • [section] p. 83
      • Reserved Occupations p. 84
    • Civilian Labour Reserves Melt Away p. 86
    • Women Replace Men in Industry1 p. 90
    • Women's Organisations for War Work
    • Labour Losses on Farms p. 93
    • The Manpower Problem Extends to Secondary Industries p. 95
    • Other Industries p. 96
    • The Coming of Employment Controls p. 97
    • Manpower Registers p. 99
    • Direction of Labour p. 101
    • Manpower Fully Extended p. 103
  • CHAPTER 6 — Problems of Supply
    • Early Supply Difficulties p. 105
    • Terms of Trade p. 106
    • The Need for Reserve Stocks p. 108
    • Pre-war Clash of Supply and Overseas Exchange Policies p. 109
    • Immediate Reserve Requirements specified in March 1939
    • Pacific Defence Conference also deals with Reserve Supplies p. 110
    • Most Reserves Inadequate at Outbreak of War p. 111
    • The National Supply Committee's Contribution p. 117
    • The First Rationed Item – Motor Spirits
    • A Windfall – The Port Bowen p. 119
    • Supplies from the United Kingdom fall Away p. 120
    • Supplies from Australia
    • The Critical Supply Years, 1941 and 1942 p. 121
    • Increasing Pressure on Local Industries p. 122
    • Pricing for New Zealand Production p. 123
    • Forward Estimates of Supply Requirements p. 124
    • Lend-Lease p. 125
    • Relief in 1943 p. 127
    • Effects of Import Selection p. 128
    • Munitions and War Stores increase to Nearly Half of all Arrivals p. 129
    • Eking out Available Supplies — The Powers of the Controllers
    • Iron and Steel p. 131
    • Non-Ferrous Metals p. 133
    • Munitions p. 134
    • Medical Supplies4 p. 137
    • Rubber and Tyres p. 139
    • Wheat and Flour p. 142
    • Canadian Mutual Aid p. 144
    • Reclamation of Waste
    • The Vital Story of Supply p. 145
  • CHAPTER 7 — Manufacturing under War Conditions
    • Employment in Manufacturing p. 147
    • New Demands for Manufactured Goods p. 149
    • Difficulties in Non-Essential Industries p. 152
    • Use of Substitute Materials p. 154
    • Labour Shortages p. 155
    • Munitions Making p. 159
    • Military Clothing and Footwear p. 160
    • The Radio Industry fully Engaged on War Work p. 167
    • Shipbuilding and Repair p. 168
    • Tobacco and Cigarette Making p. 173
    • New Industries p. 175
    • Production Achievements p. 177
  • CHAPTER 8 — Wartime Farming
    • New Zealand as a Food Producer p. 181
    • Needs of the United Kingdom p. 183
    • Wartime Controls p. 184
    • Shipping and Storage Difficulties
    • Mechanisation of Farming p. 187
    • Falling Farm Labour Requirements p. 188
    • Hand Stripping on the Way Out p. 190
    • Armed Forces Recruitments have their Effect p. 191
    • Special Manpower Assistance to Farmers p. 192
    • Fertiliser Shortages p. 195
    • Declining Dairy Cow Numbers
    • Cheese Instead of Butter p. 199
    • A Bad Season in 1943–44 and the Introduction of Rationing
    • Meat Production at High Levels p. 204
    • Wool Production exceeds Requirements p. 209
    • Fruit Growing Declines p. 216
    • A Special Wartime Undertaking – Linen Flax
    • Other Wartime Changes p. 218
    • Achievements
  • CHAPTER 9 — Defence Construction
    • Pre-war Activities p. 220
    • Materials and Equipment Pre-war p. 221
    • Pre-war Defence Construction
    • War and Accelerated Construction of Defence Buildings p. 224
    • Early Wartime Controls p. 225
    • The Commissioner of Defence Construction p. 227
    • The Fifty-four Hour Week p. 229
    • Defence Construction Expenditure
    • Details of Public Works Expenditure
    • Defence Works by the Housing Construction Department p. 238
    • Construction Work in the Pacific
    • Special Measures in 1942–43 p. 240
    • Housing Construction Resources Switched to War Work p. 242
    • Manpower
    • Timber: The Sawmilling Industry Under Pressure
    • Other Materials in Short Supply p. 248
    • The Crisis Passes p. 249
    • Review of Defence Construction Work p. 250
  • CHAPTER 10 — The Financial Cost of War
    • Up to Two-fifths of all Output Diverted to War Purposes p. 251
    • War Expenses Account p. 252
    • International Comparisons of War Costs p. 258
    • Finding the Money p. 259
    • Taxation p. 261
    • Borrowing in New Zealand
    • Sources of Internal Borrowing1 p. 268
    • The Memorandum of Security p. 270
    • Overseas Costs of War p. 272
    • War Expenses Account Compared with other Revenue and Expenditure Items p. 273
    • Diversion of Resources p. 275
  • CHAPTER 11 — The Quest for Financial Stability p. 278
    • Pre-war Price Control p. 278
    • Initial Wartime Steps to Stabilise Prices p. 279
    • The First General Wage Order, August 1940 p. 280
    • The Economic Stabilisation Conference, September 1940 p. 281
    • Government Action in August and September 1941 p. 283
    • The Economic Stabilisation Committee, September 1941
    • The Second General Wage Order, April 1942 p. 285
    • A Comprehensive Stabilisation Scheme—December 1942
    • Stabilised Wages p. 288
    • The Wartime Prices Index p. 289
    • Assessment of the Early Attempts at Stabilisation p. 290
  • CHAPTER 12 — Economic Stabilisation
    • The Economic Stabilisation Commission p. 298
    • Holding Prices and Costs p. 301
    • The Price Tribunal p. 302
    • Stabilisation Subsidies p. 305
    • The Role of Subsidies1 p. 306
    • The Wartime Prices Index p. 309
    • The Index Remains Stable p. 312
    • Problems for the Statistician
    • Other Price Changes p. 314
    • Wage Stabilisation
    • Dissatisfaction in 1944 p. 317
    • Wages Break Away in 1945 p. 319
    • Stabilised Prices and Wages p. 323
    • Stabilising Farm Incomes p. 324
    • The Dairy Industry p. 325
    • Long-term Contracts and Lump Sum Payments p. 326
    • The Meat Pool Account p. 328
    • The Meat Stabilisation Account p. 329
    • Evaluation of Farm Stabilisation Policy p. 331
    • The Wartime Prices Index as a Measure of Price Change p. 332
    • The Role of Fiscal Policy p. 334
    • Stabilisation Achievements p. 337
  • CHAPTER 13 — War Contracts
    • Urgency Leads to New Types of Contract p. 341
    • Cost-plus Contracts for Defence Construction p. 342
    • Special Contracts for Shipbuilding and Repair p. 344
    • Departmental Staff Difficulties p. 345
    • The Controller and Auditor-General Expects an Improvement
    • Increasing Urgency and Looser Contracts p. 346
    • The Auditor is More Critical p. 347
    • The Master Schedule p. 348
    • More Criticism of Wartime Contracts p. 350
    • Target Prices for Shipbuilding p. 352
    • Weaknesses in Other Contracts p. 353
    • Pressure of Work in the Radio Industry p. 354
    • Tighter Arrangements for Ship Repair Work p. 355
    • Attempts to Review War Contracts
    • High Profits p. 358
    • Incentives to Inefficiency p. 361
    • Slackening of Pressure Gives More Time to Check Contracts p. 362
    • What is to be Learned from Experience? p. 363
  • CHAPTER 14 — Trade and the Balance of Payments
    • Difficulties Before the War p. 366
    • Bulk Purchases of Farm Products p. 368
    • The Enemy Trading Emergency Regulations p. 369
    • Export Volumes
    • Restraint on Imports p. 371
    • Imports of Defence Materials
    • Shipping
    • Volume of Trade p. 375
    • Better Use of Shipping Space p. 376
    • Quicker Turn-round of Ships
    • Supplies to the United States Forces p. 377
    • Pricing Problems p. 378
    • Lump Sum Payments p. 382
    • Overseas Assets rise by £53 million in 1944 and 1945 p. 384
    • Overseas Exchange Transactions p. 387
    • Receipts
    • Payments p. 388
    • Improved External Reserves p. 389
  • CHAPTER 15 — Transport Difficulties
    • Co-ordination Attempts Before the War p. 391
    • Waterfront Work p. 392
    • Pressure for Co-operative Stevedoring p. 393
    • The Waterfront Transport Control Board
    • Early Wartime Troubles on the Waterfront
    • The Waterfront Control Commission p. 395
    • A New Waterfront Award p. 396
    • Co-operative Contracting
    • ‘Spelling’ p. 398
    • Extended Hours of Work p. 399
    • United States Supplies p. 400
    • Limited Success of Co-operative Contracting p. 401
    • Coastal Shipping p. 403
    • Shortages of Fish p. 404
    • New Zealand Railways
    • Railway Staff Shortages p. 405
    • Coal for Locomotives p. 407
    • Coal Mining
    • Shortages of Hard Coal p. 410
    • Transport of West Coast Coal p. 411
    • State Ownership of Mines p. 412
    • Open-cast Mining
    • Railways Reactions p. 415
    • Air Services
    • Road Transport p. 416
    • Petrol Rationing
    • Zoning and Rationalisation of Road Transport p. 419
    • Wartime Transport Arrangements p. 421
  • CHAPTER 16 — Fuel, Power, and Services for Production p. 423
    • New Sources of Power p. 423
    • Coal for Industry p. 425
    • Domestic Cooking and Heating
    • Coal Supplies
    • Electricity on the Upsurge p. 427
    • Faulty Pre-war Power Estimates p. 428
    • Early Restraints on the Use of Power p. 430
    • Power Difficulties for Manufacturers
    • Belated Hydro-Electric Development p. 434
    • Government Administrative and Other Services p. 435
    • Women in the Public Service p. 437
    • Communications
    • Local Authority Services
    • Levels of Production
  • CHAPTER 17 — Living and Working in a War Economy
    • Population Changes p. 443
    • Wartime Influences on Population Growth p. 444
    • Education p. 446
    • The Worker p. 447
    • Attitudes to Conscription
    • Conscription for Industry 2 p. 450
    • The Maori War Effort p. 452
    • Accommodation for Directed Workers p. 454
    • Hours of Work p. 455
    • Paid Annual Holidays p. 457
    • Minimum Wages p. 458
    • Worker Effort
    • The Consumer p. 459
    • Marketing of Food p. 460
    • Egg Marketing p. 461
    • Shortages of Vegetables p. 462
    • Criticism of the Internal Marketing Division p. 463
    • Rationing p. 465
    • Tea and Sugar p. 466
    • Difficulties with Clothing p. 467
    • Rationing of New Zealand-Grown Foods p. 469
    • Rationing in the United Kingdom p. 471
    • Consumer Subsidies and Price Control
    • The Motorist p. 472
    • The Black Market p. 473
    • Racing p. 474
    • The Impact of American Forces in New Zealand p. 475
    • The People at War p. 479
  • CHAPTER 18 — Easing the Strain p. 481
    • Peak Mobilisation p. 481
    • Tension Reduces in the Pacific p. 483
    • The Strain on Civilian Manpower Worsens p. 484
    • The Manpower Dilemma p. 486
    • A Change in Manpower Priorities p. 489
    • Food Crisis in Britain p. 490
    • Pacific Division Becomes a Token Force p. 491
    • Manpower Needs for Industry p. 492
    • Farm Manpower Needs Overestimated p. 493
    • Public Criticism of the Size of the Home Forces
    • The End of the Pacific Division p. 496
    • Labour Shortages in the Last Year of War p. 497
  • CHAPTER 19 — From War to Peace
    • General Demobilisation p. 502
    • Gratuities
    • Employment Opportunities p. 504
    • Reinstatement of Employees p. 505
    • Manpower Controls Revoked 2 p. 506
    • The Rehabilitation Board p. 509
    • Trade Training p. 512
    • University Education for Ex-servicemen p. 513
    • Settlement on the Land
    • Setting up in Business p. 516
    • Assistance with Housing p. 517
    • Successful Rehabilitation p. 518
    • Termination of Reciprocal Aid p. 519
    • Disposal of War Assets p. 521
    • Bulk Purchases of Food Continue p. 524
    • Disposal of Wool Stocks p. 525
    • Gifts to Britain p. 526
    • Economic Planning—Organisation for National Development p. 527
  • CHAPTER 20 — Recovery and Development
    • Economic Recovery p. 532
    • Suppressed Inflation p. 533
    • Rapid Currency Depreciation p. 536
    • More Stable Prices from 1955
    • Full Employment p. 538
    • Depletion of the Labour Force p. 540
    • Underworked Facilities for Employment Promotion p. 542
    • New and Increased Social Security Benefits p. 544
    • Bank Advance Controls p. 546
    • Increased Imports p. 548
    • An Attempt to Remove import Controls p. 549
    • The 1958 Budget p. 550
    • Import Controls Continue p. 551
    • The Rising Cost of Invisibles1
    • Subsidised Agriculture and Dumped Surpluses p. 554
    • The European Economic Community p. 555
    • Direction of Trade p. 557
    • New Zealand Farming Developments p. 558
    • Farm Industry Reserves
    • Backlogs of Construction Work p. 562
    • Electricity Shortages Worsen p. 565
    • Transport Developments p. 566
    • Economic Policy Co-ordination p. 568
    • Economic Development p. 569
  • Noteworthy Events Since The War p. 574
  • List of Tables and Charts p. 577
  • Appendix I — STATISTICAL TABLES p. 581
  • Appendix II — ITEMS IN THE WARTIME PRICES INDEX p. 639
  • Bibliography p. 644
    • [section] p. 644
    • Studies of New Zealand at War p. 646
    • Other Histories and Surveys of New Zealand
    • New Zealand Journals, Annual Reports, etc p. 647
    • British War Histories
    • United States War Histories p. 648
    • Other War Histories
    • Other Books p. 649
    • Other Publications
  • Index p. 651
• Editorial Advisory Panel p. 661

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