William W. Hill Writes
On the Marshall Plan
This paper is written to famil
iarize the average American with
The Marshall Plan. The Marshall
Plan has both good and bad as
pects. While it is the primary
purpose of this plan to put Europe
back on a level economic basis so
it can once again become self
supporting, it could also very
easily wreck the entire economic
system of the United States. At
the present time, this country is
going through a period of infla
tion that has never before been
equaled. This is dangerous, not
only to the United States but also
to the rest of the world, for our
money is used as a standard
through-out, the world. However
great the risk, Europe must be
helped to help itself. Without
Europe once again .on a level
economic basis, the rest of the
world could not hope to survive
this transition period. The world
is basically the same as the human
body. One part could not hope
to function properly unless the
rest was also going through its
normal process, hence the Marshall
Plan. Without it, Europe would
undoubtedly never wholly recover.
The United States must give those
countries a will to help themselves.
This is not an outright gift, it is
more of a loan. The Marshall
Plan is only for those countries
who agree to put as much into this
fight for survival as they hope to
get out of it. The world today in
its present dilemma is as a huge
animal that has been mortally
wounded. Not only wounded ma
terially but also mentally. It is
fighting for survival. The United
States holds the key to the sit
uation. We must produce a solu
tion to this problem and I believe
The Marshall Plan is that solution.
On June 5, 1947, Secretary of
State George C. Marshall at Har
vards’ Commencement, made a
very note worthy proposal which
has become known as the Mar
shall Plan. In many respects it
was the most important pronounce
ment made by any statesman
since the active fighting ceased
two years ago. One point Mar
shall specifically stressed was
•though the physical loss of life,
the visible destruction of cities,
factories, mines and railroads and
probably less serious then .the dis
location of the entire fabric of
European economy. So it is logi
cal that the United States should
do whatever possible to assist in
the return of normal health in the
world without which there can be
no political stability and no assur
ed peace. It was also stated that
any government that is ready to
assist in the task of recovery will
find full American cooperation,
any government which maneuvers
to block the recovery of other
countries cannot expect help from
the United States.
Europe was called upon to draw
up a balance sheet of European re
sources and needs and to work out
a blueprint of self-help. Also to
submit to the United States a pro
gram under- which United States
dollars may be best used to help
Europe help itself. Twenty two
nations were invited by Prance
and Great Britain on July 3, 1947
to send delegates to Paris by July
12 to join in putting the Marshall
Plan into operation. Out of the
twenty two nations invited four
teen quickly accepted and sent
delegates to Paris, and there with
Britain and France, made up the
sixteen power Conference for
European Cooperation. • Soviet
Russia and her satellite nations
declined 'the invitation.
The Conference quickly set up
an over-all Cooperation Committee
and appointed four subcommittees
to survey and report on- the fol
lowing subjects: . CA) Food and
agriculture; (B) Iron and steel;
(C) Transportation; (D) Fuel and
power. It -then drew up .an
elaborate questionnaire to guide
the committees and to be sent
immediately to each of the six
teen cooperating countries.
It was in this manner the Mar
shall Plan had its beginning. The
remaining parts of this paper are
the facts on the 'Marshall Plan in
simple outline form.
The Facts On The Marshall Plan
It outlines a Western European
industrial power that by the end
of 1951 will compare with the
United States and surpass the
Soviet Union in productive capa
city. Politically it will be sixteen
nations, but economically it will
be united by joint production pro
grams, an international power
grid, standardized mining and
electrical equipment, interchange
able freight cars; and mutually ar
ranged modernization of steel
mills.
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“A European committee will
continually supervise the program
and report to the United States on
the $22,400,000,000 needed, $19,-
300,000,000 directly from the
Americas. By the end of 1951 the
plans goal calls for the following:
Food—To be restored to prewar
level, with the output of potatoes,
sugar, fats and oils to be above
prewar.-
Coal —Production to be raised
to 584,000,000 tons a year or one
third above present levels and 30,-
000,000 tons above prewar.
Electricity Output to be in
creased to a level 66% above pre
war.
Oil—Refining capacity to be in
creased two and one half times.
Steel —Production to be raised
to 55,000,000 ton for the co
operating nations, or 20% above
prewar. This is an increase of
80% over the present.
Labor —The labor shortage will
persist, except in Italy. With suit
able training, housing, compensa
tion, and freedom to migrate, the
Italian man-power surplus can
eventually fill the deficits of the
rest of Europe.
Transportation—lnland trans
port to be developed to carry 25%
more then prewar. One-third of
the appropriations for the Plan go
to Britain. Two-thirds of the ap
propriations for the Plan go to the
rest of Europe.”
Marshall Plan Obstacles
Any policy with as large a scope
as the Marshall Plan is bound to
have many obstacles. With the
formation of this plan the United
States is trying to do something
that has been hoped for many
times but no one ever dared think
it would ever become a reality.
That is the unification of Europe.
The time is ripe for such a move,
because it -is more or less a must.
The European nations will either
have to swim or sink so to speak.
Through a united Europe the
countries can hope for survival,
without it the situation would be
grave. Within Europe there is a
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deplorable situation. Europe is
sharply divided, workers ill
nourished and fatigued, factories
in ruins and morale pitably low..
There is the question of Russia
and her satellite nations. When
they cut themselves from partici
pation in the Marshall Plan there
was great hope the program would
develop without obstruction or
sabotage. As this program pro
ceeds it becomes most evident
that Russia and her satellites are
trying to do everything possible
short of war to block the Marshall
Plan.
The chief obstacle so far is the
inability of the United States and
Britain and France to reach an
agreement on Germany. Some
European countries do not like to
accept the fact that Germany is
the main block on which the
European economy rests. The
United States wants to revive
German industry in the western
occupated zones as rapidly as it
can be done. Before World War
n the rest of Europe became de
pendent on German heavy in
dustry. The Germans with their
industrial know how built an in
dustrial empire never before equal
led on the continent of Europe.
For that reason there can be little
doubt in any normal persons’
minds where European recon
struction should be started. Just
before the war the German Ruhr
supplied 26% of the continent’s
Steel and also 40% of the coal.
With Germany, of their
heavy industry, mining and also
their geographical location, Euro
pean recovery is possible and pro
bable, without it the outcome is
very doubtful.
Cost Of The Marshall Plan
This' is the Marshall Plan, in
dollar terms, as outlined by the
sixteen nations that agreed, at
United States’ suggestion, to state
their needs. In round figures it
asks the United States directly for
19 billion dollars over a period of
four years. More ethen 7 billion
would be provided for use in 1948.
The cost would recede about 2
billion dollars every year until
1951 when its cost would be ap
proximately 2. billion dollars.
How Europe intends to spend
this money is as follows in broad
outline form for the year of 1948.
Farming and mining machinery
top the list with about 3 billion
dollars. This being necessary to
start the wheels of industry and
farming moving again. Food and
fertilizer come second. Most of
it will be bought in the Western
Hemisphere countries other then
the United States. These are to
cost some where around one and
one-half billion dollars. Next are
petroleum products. They are
practically nonexistent since the
war made such great demands and
because oil wells and refineries
were the targets of destruction by
the Allies war machine. Most
petroleum products are sought di
rectly from the United States.
Iron and Steel are down for 400
million dollars. Equipment, lar
gely made from steel is down for
a large portion of the 400 million
dollars. Coal comes next in line
with a total of 300 million dollars.
Europe’s coal output has fallen
sharply because of inadequate
machinery and facilities. Some
mines in Europe are becoming
worked out. Timber has long been
a short item on Europe and since
the war it has become more so.
It takes its place on the list to be
bought in the amount of 100 mil
lion dollars. Other minor imports
would total about 1 billion 800
minion dollars. This would make
a grand total of around 8 billion
and 40 million dollars to 'be spent
in the 1948 calendar year. That’s
the spending outline for one year.
The program itself is a four-year
program and tapers off gradually
after the first year.
Frank Gatto
Best in Shoe Repair
WESLEYVILLE, PA.