late war, and through the perhaps even more severe test of post-war inflation and the rapidly succeeding deflation which was so destructive of values. Through all this the banks carried on successfully—not without strain, but with avoidance of panic. That the new banking system, in operation for only ten years when the storm of war broke over Europe, should have so successfully met war requirements is most gratifying to the Nation, and most complimentary to the framers of the banking laws and to the financiers and bankers (for not all bankers may be called financiers) who carried out the actual operations.
Industry.—The second named essential of National Defense is also well centralized, though less highly so than finance. The munitions for defense differing so widely from the peace products of manufacture (though in war the manufacture of vast quantities of peace products is required, unchanged), it becomes necessary to know the equipment, adaptability, and capacity of all important manufacturing plants in order promptly to change production where needed, minimize waste, and insure ample supply and the smooth and uninterrupted flow of defense supplies of every class and kind. This requires a complete and careful inventory to be made of all important industries; the making and filing of plans and specifications for the manufacture of all required munitions other than ordinary commercial articles; the making of suitable provisions to insure the availability when needed of special machinery, tools, jigs, dies, gauges, etc., etc.; and the filing of all plans, inventories, and other essential information for manufacture and supply in a common center for their complete co-ordination, including proper supply of raw materials, power, and fuel (kinds and quantities) needed by all plants in operation; for apportionment of required personnel; assignment of rail, water, or other transportation needed, and when needed; storage, etc.
Under the National Defense Act of 1920 the Assistant Secretary of War is by law charged with all procurement of supplies. Decentralization of the supervision of procurement is effected through the appointment in large centers like New York, Chicago, St. Louis, etc., of responsible civilian heads, the selection of the individual in each case being governed
