Surplus Property Board
Encyclopedia
The Surplus Property Board was briefly responsible for disposing of $90 billion of surplus war property held by the United States Government in the final year of World War II
. Created by the Surplus Property Act of 1944
, the Board functioned for less than nine months, before being replaced by a more streamlined agency.
President Franklin D. Roosevelt’s
economic advisor, Bernard Baruch
, originally recommended that the U.S. dispose of surplus war goods through an agency run by a single administrator (and assisted by a policy board), and with general statutory authority. Through an Executive Order, Roosevelt established the Surplus War Property Administration and named public servant and former Texas cotton broker William L. Clayton
to administer it. In the Act, however, Congress rejected that approach, providing instead for a three-member board with significantly constrained authority. President Roosevelt signed the Act “with considerable reluctance,” because of the danger that “the confused methods of disposition and the elaborate restrictions” imposed by the Act “would clearly delay rather than expedite reconversion and re-employment.” The Board was also placed under the Office of War Mobilization and Reconversion.
banker and Defense Plant Corp. President Sam H. Husbands, was never nominated because of anticipated resistance in the lame-duck 1944 Senate
. Roosevelt instead nominated a member of that body, recently-defeated Iowa
U.S. Senator Guy Gillette, on November 21, 1944. However, the choice of a Senator who had voted on the Act created a temporary constitutional bar to his appointment, delaying the effectiveness of his appointment until on January 4, 1945, one day after the end of his Senate term. The two other members of the Board were former Connecticut
Governor Robert A. Hurley
and Lieut. Colonel Edward Hellman Heller, a wealthy member of one of San Francisco's
first families, who had resigned seven directorships to join the U.S. Army.
By April 1945, newspapers reported that Gillette already disliked the job, and had complained that he was often out-voted by the two other members. In May 1945 Gillette resigned effective July 15, 1945, and President Harry S. Truman
appointed St. Louis
manufacturing executive W. Stuart Symington
to succeed him as chair.
Nevertheless, in a July 17, 1945 message to Congress, President Truman acknowledged the Board's "substantial achievements:"
Years of wartime rationing had created a pent-up demand for many kinds of goods that the government had accumulated. That demand was exacerbated by the return of millions of veterans to civilian life. But the Board’s policymaking responsibilities were complicated by the potential implications of selling too much surplus property at once, at discounted prices. The amount of surplus property was so vast that private manufacturers feared that, once offered for sale, it would harm domestic markets for privately-produced goods and exacerbate a postwar recession. The Board responded by pledging not to sell more than the market could absorb, and to rely upon sales to new foreign buyers in order to introduce new markets to American goods.
concurred that the Act’s three-member Board was inferior to the single-administrator-plan originally proposed. President Truman proposed in July 1945 to reorganize the Board into an agency with a single head, and Congress soon agreed. The Board was superseded by the Surplus Property Administration (SPA), pursuant to an act of September 18, 1945.
Board chairman Symington was the SPA’s first administrator. Then, in 1946, domestic functions of the SPA were assigned to War Assets Administration
. Truman named Symington as Assistant Secretary of War for Air, and then as the first Secretary of the Air Force.
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
. Created by the Surplus Property Act of 1944
Surplus Property Act
The Surplus Property Act of 1944 is an act of the United States Congress that was enacted to provide for the disposal of surplus government property to "a State, political subdivision of a State, or tax-supported organization"...
, the Board functioned for less than nine months, before being replaced by a more streamlined agency.
Authorization
The aims of the Surplus Property Act were not limited to distributing surplus property; they also included re-establishing free independent enterprise, strengthening the competitive position of new and small businesspersons and family farmers, and putting government property to widespread, nonmonopolistic use.President Franklin D. Roosevelt’s
Franklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...
economic advisor, Bernard Baruch
Bernard Baruch
Bernard Mannes Baruch was an American financier, stock-market speculator, statesman, and political consultant. After his success in business, he devoted his time toward advising U.S. Presidents Woodrow Wilson and Franklin D. Roosevelt on economic matters and became a philanthropist.-Early life...
, originally recommended that the U.S. dispose of surplus war goods through an agency run by a single administrator (and assisted by a policy board), and with general statutory authority. Through an Executive Order, Roosevelt established the Surplus War Property Administration and named public servant and former Texas cotton broker William L. Clayton
William L. Clayton
William Lockhart "Will" Clayton was an American business leader and government official.-Early life and career:...
to administer it. In the Act, however, Congress rejected that approach, providing instead for a three-member board with significantly constrained authority. President Roosevelt signed the Act “with considerable reluctance,” because of the danger that “the confused methods of disposition and the elaborate restrictions” imposed by the Act “would clearly delay rather than expedite reconversion and re-employment.” The Board was also placed under the Office of War Mobilization and Reconversion.
Appointment and Implementation
Though the Act was signed on October 3, 1944, the Board was not organized until January 1945. President Roosevelt found it difficult to find persons willing to serve on the Board. Clayton had made it clear that, if the Act were adopted, he would not become a board member. Roosevelt’s initial preference as chair, former South CarolinaSouth Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
banker and Defense Plant Corp. President Sam H. Husbands, was never nominated because of anticipated resistance in the lame-duck 1944 Senate
78th United States Congress
The Seventy-eighth United States Congress was a meeting of the legislative branch of the United States federal government, composed of the United States Senate and the United States House of Representatives. It met in Washington, DC from January 3, 1943 to January 3, 1945, during the last two years...
. Roosevelt instead nominated a member of that body, recently-defeated Iowa
Iowa
Iowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New...
U.S. Senator Guy Gillette, on November 21, 1944. However, the choice of a Senator who had voted on the Act created a temporary constitutional bar to his appointment, delaying the effectiveness of his appointment until on January 4, 1945, one day after the end of his Senate term. The two other members of the Board were former Connecticut
Connecticut
Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...
Governor Robert A. Hurley
Robert A. Hurley
Robert Augustine Hurley was an American politician and the 73rd Governor of Connecticut.- Early life :Hurley, a second generation Irish-American, was born in Bridgeport, Connecticut on August 25, 1895 to Robert Emmet and Sabina O'Hara Hurley. He attended local public schools and Cheshire Academy...
and Lieut. Colonel Edward Hellman Heller, a wealthy member of one of San Francisco's
San Francisco, California
San Francisco , officially the City and County of San Francisco, is the financial, cultural, and transportation center of the San Francisco Bay Area, a region of 7.15 million people which includes San Jose and Oakland...
first families, who had resigned seven directorships to join the U.S. Army.
By April 1945, newspapers reported that Gillette already disliked the job, and had complained that he was often out-voted by the two other members. In May 1945 Gillette resigned effective July 15, 1945, and President Harry S. Truman
Harry S. Truman
Harry S. Truman was the 33rd President of the United States . As President Franklin D. Roosevelt's third vice president and the 34th Vice President of the United States , he succeeded to the presidency on April 12, 1945, when President Roosevelt died less than three months after beginning his...
appointed St. Louis
St. Louis, Missouri
St. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...
manufacturing executive W. Stuart Symington
Stuart Symington
William Stuart Symington was a businessman and political figure from Missouri. He served as the first Secretary of the Air Force from 1947 to 1950 and was a Democratic United States Senator from Missouri from 1953 to 1976.-Education and business career:...
to succeed him as chair.
Nevertheless, in a July 17, 1945 message to Congress, President Truman acknowledged the Board's "substantial achievements:"
- It has set in motion the disposal machinery which Congress authorized and it has begun to implement the standards which Congress laid down for the disposal of surplus property. Regulations already promulgated or in the process of adoption cover the most important types of property-consumer goods, plant equipment, industrial plants and farm lands.
Years of wartime rationing had created a pent-up demand for many kinds of goods that the government had accumulated. That demand was exacerbated by the return of millions of veterans to civilian life. But the Board’s policymaking responsibilities were complicated by the potential implications of selling too much surplus property at once, at discounted prices. The amount of surplus property was so vast that private manufacturers feared that, once offered for sale, it would harm domestic markets for privately-produced goods and exacerbate a postwar recession. The Board responded by pledging not to sell more than the market could absorb, and to rely upon sales to new foreign buyers in order to introduce new markets to American goods.
Replacement
Gillette, Symington, President Truman, and the more liberal 1945 U.S. Congress78th United States Congress
The Seventy-eighth United States Congress was a meeting of the legislative branch of the United States federal government, composed of the United States Senate and the United States House of Representatives. It met in Washington, DC from January 3, 1943 to January 3, 1945, during the last two years...
concurred that the Act’s three-member Board was inferior to the single-administrator-plan originally proposed. President Truman proposed in July 1945 to reorganize the Board into an agency with a single head, and Congress soon agreed. The Board was superseded by the Surplus Property Administration (SPA), pursuant to an act of September 18, 1945.
Board chairman Symington was the SPA’s first administrator. Then, in 1946, domestic functions of the SPA were assigned to War Assets Administration
War Assets Administration
The War Assets Administration was established in the Office for Emergency Management, effective March 25, 1946, by EO 9689, January 31, 1946. American factorieshad produced massive amounts of weaponry during the World War II...
. Truman named Symington as Assistant Secretary of War for Air, and then as the first Secretary of the Air Force.