Ministry of Munitions

. • • . . . 47s. to 65s. 34s.

6o pounders . . . . 6os. to 82s.4d. 525.6d.

6" ...... 8os. to 9os. 7os.6d.

8" ...... 24os. i57s.6d.

9.2" . . . . . . 262s. to 3055. 227s.6d.

As a part of the agreement entered into when these reductions were obtained, future prices became subject to periodic adjust ment on the basis of the costs of materials and labour-rates over which the firms themselves had little control. The reductions in prices, as compared with earlier contracts, were also materially assisted by the great size of the contracts that were entered into, as well as by the economies that were subsequently secured, in the reduction in the amounts used of costly materials, or in the sub stitution for them of less costly ones. Nevertheless the savings effected by the examination and control of costs were of a prodi gious character. The first cut in shell prices resulted in a saving of a week on the 1916 gun ammunition programme, if the prices had been the same as those of 1915. Wages rose steadily throughout the war, but the economies effected in other directions made further reductions in the level of shell prices possible, notwithstanding the additional labour rates.

Supply of Materials, Priority and Allocation.

The first programme, when resolved into material requirements, showed that, in some cases, all, or more than all, of the available supplies would be needed. The scarcity also was leading to soaring prices, and in some instances the Ministry had to protect itself against cornering. The result was that in successive "orders" the Ministry made itself the nominal holder of supplies as well as responsible for overseas purchases and shipments. The existing machineries of importation and distribution were used so far as possible and the different firms acted as agents on an agreed basis. In this way stability of price was secured and control over distribution. Apart, however, from the demands of the Ministry and other war depart ments, it was necessary to satisfy, so far as possible, the require ments of a multitude of private industries that were ministering to the essential needs of the community. For these reasons an in

creasingly elaborate system of priority and allocation came to be established, and the scarcity of the later years of the war became so acute that the priority organization became subject to a special cabinet committee. This cabinet tribunal, or its officers, was responsible for the adjudication of the conflicting claims of the different war departments on the one side, and of private indus tries on the other, but each war ministry was responsible for the allocation within itself of its own supplies. In order to secure an orderly presentation of the needs of private industry the Ministry of Munitions inaugurated a system, during 1916, whereby the in dustries were grouped, in order to present their requirements col lectively, and, later on, these industrial organizations were mainly responsible for the administration of their own priorities and allocations.

The ever-tightening grip of the Ministry upon many materials affected the life of the nation in numberless intimate and, seem ingly, indirect ways, and became itself responsible for the Ministry having to undertake the provision of some supplies of a non munitions character. For example, the explosives programme so completely absorbed the output of gas plants, coke ovens and the chemical trade, that the Ministry had to become responsible for the supply of fertilizers to the agricultural industry. The de mands for glycerine necessitated a pooling of all the industries dealing with oils and fats, and of their raw materials, with the result that the Ministry was compelled to regulate and assume responsibility for the supplies of cattle-cake and other products. Similarly the requirements for alcohol involved control of the whole distilling industry, and indirectly of the supply of yeast for bread-making.

Economy of Materials and Increased Production.—The restriction of overseas supplies that accompanied the submarine campaign of 1917 was mitigated to some extent by a great devel opment in the economy of metals and in the improvement of sal vage and scrap collection and utilization.