is general complaint about too much paper work. Also that non-essential firms  
should not be closed and their machinery shifted, but instead should receive  
                   war work they can do.                    
 
                                                            
 
 
2. The development (as noted in soap) continues. The production is   
concentrated in the most efficient plants, but the closed plants receive shares  
of the output in order to retain their selling organizations. Farm machinery   
is being pooled on a community basis. "Sharing of markets" is encouraged but   
not compulsory. "It is not possible to replace a system built up in the course  
of decades through personal entrepreneurial achievements by a schematically   
constructed distributive system....Trading is not a spare-time occupation for  
civil servants or engineers." The compensation scheme for "laid-up" concerns  
is selective in that the concern must be worth saving. Standardization is   
being pushed, but "do not standardize what can be.... but only what must be..."   
There are protests that abolishing trade marks hits the little firms more than  
                          the big.                          
 
                                                            
 
 
3. Small independent concerns can obtain favorable terms of liquidation   
and remission of debts. This is to free labor. But the policy of shutting   
small retail outlets has eased and some are now helped with rent subsidies.   
Actual labor conscriptions is being kept in reserve. "It is interesting to note  
as evidence of the high degree of organization in the labor market that a war  
invalid who is capable of work 'generally speaking knows already in the hospital  
where he is going to work before he gets his ticket home.'" There has been much  
experimenting with wage policies with respect to evertime and sickness   
allowances. No overtime if total hours are less than 49. If working week is   
between 48-60 hours, overtime only for days of ever ll hours. Profit bonuses   
must be reduced if wages are thereby unduly increased. "Labor Front" contributions  
are deducted at source. Savings from a reduction of wages by the Labor Trustee   
must be surrendered to Treasury but if the firm is "in a difficult position"   
the Trustee may waive the surrender. The savings from employment of prisoners  
f war who are paid 60% of German rate may be kept by employe
 
                                                            
 
 
4. Price control is being further extended. Retail price increases noted  
in corn-flakes, margarine, beer andunderclothing, but Cost of Living in four   
months of 1940 rose only 3%. Claim that the weighting produces a true figure.  
Rationing is extended. "The purchase of a new tire requires the surrender of   
the old one, and if it appears that the duration of life had been shortened by  
careless or inexpert handling, the prospective buyer lays himself open to   
criminal prosecution."  
                                                            
 
"Rationing is closely linked up with a policy of conserving and stocking.  
Since the war two companies producing 'deep freezing' apparatus have been founded.  
In 1940, 100 plants were to be installed to turn out 200-800 tons of frozen   
                  preserves daily, mainly                   
 
                                                            
 
 
                            -3-