of Governor Herbert R. O'Conor 503

This blitzkrieg to which I have reference is just as directly connected with
the war, however, as any mass bombing could be. It is an economic blitzkrieg,
which, if it should develop on the scale on which it now threatens, would be
infinitely more damaging to the economy and morale of our State and Nation
than the most destructive bombing attack could be.

Here attention is directed to the dire condition in which the smaller in-
dustries of our State and Country now find themselves. It is the result of the
temporary chaos occasioned by the necessity for a quick swing from normal
peace production to all-out war production.

Right here in Frederick, as well as in practically every city and town in
Maryland, there are numerous industries employing 50, 100, perhaps even
several hundred men, which face difficulties and possibly complete shut-down,
due to lack of materials. Some of them undoubtedly can be helped, but unless
we as a people are more skillful in solving this problem in the immediate
future than has been the case up to this time, it is a recognized fact that many
of these small industries will have to go out of business, thus releasing many
thousands of employees to complicate further the already disturbed labor situa-
tion of the Country.

When first it became apparent that every possible avenue of production
would have to be utilized to supply for our Army and Navy the vast amounts of
material and clothing, food and other supplies necessary to carry on this highly
organized and highly mechanized modern warfare, as well as to take care of
the ordinary needs of our civilian population, the general reaction was, that
here was the employment problem of the Country solved, temporarily at least.

However, when it was learned that of the several billion dollars worth of
initial contracts placed by the Federal Government, 75 percent had been
awarded to 56 corporations, the Country gradually began to be aware of three
disturbing facts. One was that there inevitably would be delays, serious delays,
in transforming these huge plants from peace work to war work, for new ma-
chines and re-tooling were necessary, and strain as we might, these things take
time.

Secondly, such concentration of war contracts in a relatively few centers of
production immediately began to induce an influx of workers and their families
into these areas, to the point where there soon ensued an overcrowded situation
that caused snarls of many kinds, and that of itself produced additional delays.
At the same time, is caused untold inconvenience to many thousands of our
people, forced them to submit to housing conditions that were anything but
desirable', complicated the school and traffic situations and, in general, made for
a worsening of conditions rather than a betterment. At the same time, from
the standpoint of possible future attack by hostile planes, it exposed our de-
fense production capacity to destruction on a far greater scale than could
possibly ever materialize if the defense industries could have been spread over a
greater area.

Thirdly, it left many plants and many towns and cities either without
prospect of stable operation and employment, or created a state of uncertainty
that is becoming worse as each succeeding month emphasizes the increasing
shortage of practically every type of necessary raw material.