First Pinch

As businessmen had expected, rubber last week became the first civilian item to feel the pinch of war. The Commerce Department, acting on a plan suggested by the rubber industry, ordered the use of rubber for civilian products cut to 90,000 tons a month for the rest of the year--about 13% below July's consumption. Since natural rubber (at 51-c- a Ib.) is almost three times as expensive as synthetic, manufacturers are expected to cut down chiefly on natural, thus leave more for the national stockpile. Rubbermen said that consumers would hardly notice the cut.

In congressional hearings released last week, Defense Secretary Louis Johnson forecast some other pinches. He gave an estimate of how much copper, aluminum and steel would be diverted from civilian production to the rearmament program in the year ending next June.

P:14% of aluminum production--about 100,000 tons.

P: of copper production--about 175,000 tons.

P:4% of steel production--about 4,000,000 tons (or 2,000,000 less than previous military estimates--TIME, Aug. 21).

Of the three, aluminum is already so short that manufacturers are rationing the metal, and it will probably soon join rubber on the Government's allocation list. Last week, the Government was discussing with Canada's giant Aluminium Ltd. a plan to buy 440 million Ibs. over the next three years, at an estimated cost of $75 million. Whether the deal goes through or not, many an aluminum product will soon disappear from the civilian market.

This file is automatically generated by a robot program, so reader's discretion is required.