WAR INDUSTRIES BOARD
The main regulatory body was the War
Industries Board (WIB). It was established in 1917 and reorganized in 1918
under the leadership of Bernard M. Baruch
(bE-rLkP), a prosperous business-
man. The board encouraged companies to use mass-production techniques to
increase efficiency. It also urged them to eliminate waste by standardizing prod-
ucts—for instance, by making only 5 colors of typewriter ribbons instead of 150.
The WIB set production quotas and allocated raw materials.
Under the WIB, industrial production in the United States increased by about
20 percent. However, the WIB applied price controls only at the wholesale level.
As a result, retail prices soared, and in 1918 they were almost double what they
had been before the war. Corporate profits soared as well, especially in such indus-
tries as chemicals, meatpacking, oil, and steel.
The WIB was not the only federal agency to regulate the economy during the
war. The Railroad Administration controlled the railroads, and the Fuel
Administration monitored coal supplies and rationed gasoline and heating oil. In
addition, many people adopted “gasless Sundays” and “lightless nights” to con-
serve fuel. In March 1918, the Fuel Administration introduced another conserva-
tion measure: daylight-saving time, which had first been proposed by Benjamin
Franklin in the 1770s as a way to take advantage of the longer days of summer.
WAR ECONOMY
Wages in most industries rose during the war years. Hourly wages
for blue-collar workers—those in the metal trades, shipbuilding, and meatpacking,
for example—rose by about 20 percent. A household’s income, however, was largely
undercut by rising food prices and housing costs.
By contrast, stockholders in large corporations saw enormous profits. One indus-
trial manufacturer, the DuPont Company, saw its stock multiply in value 1,600 per-
cent between 1914 and 1918. By that time the company was earning a $68-million
yearly profit. As a result of the uneven pay between labor and management, increas-
ing work hours, child labor, and dangerously “sped-up” conditions, unions boomed.
Union membership climbed from about 2.5 million in 1916 to more than 4 million
in 1919. More than 6,000 strikes broke out during the war months.
To deal with disputes between management and labor, President Wilson estab-
lished the National War Labor Board in 1918. Workers who refused to obey board
decisions could lose their draft
exemptions. “Work or fight,” the
board told them. However, the
board also worked to improve fac-
tory conditions. It pushed for an
eight-hour workday, promoted
safety inspections, and enforced
the child labor ban.
FOOD ADMINISTRATION
To
help produce and conserve food,
Wilson set up the Food Admin-
istration under Herbert Hoover.
Instead of rationing food, he
called on people to follow the
“gospel of the clean plate.” He
declared one day a week “meat-
less,” another “sweetless,” two
days “wheatless,” and two other
days “porkless.” Restaurants
removed sugar bowls from the
table and served bread only after
the first course.
The First World War 595
Background
In 1913 Henry
Ford speeded up
factory production
with a constantly
moving assembly
line. Wartime
production spread
this technique
throughout the
country.
A
Skillbuilder
Answers
1. The prices
doubled, while
income more
than doubled.
2. A working
family would
have benefited
from the
increase in
buying power.
MAIN IDEA
MAIN IDEA
A
Making
Inferences
Why would
labor disputes
affect the
war effor t?
A. Answer
Labor disputes
would slow
down produc-
tion and
jeopardize
the American
war effort.