The Giant Hand Our Mobilization And Control of Industry And Natural Resources

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Conditions in Chile fostered the rise in price. The market there was narrow, centralized in a few hands. The buying was large and highly competitive. The Chileans took full advan- tage of the demand for their greatest natural resource, until it became evident that, unless something were done about it, Chile was going to absorb a tremendous and undue amount of wealth at the expense of most of the warring nations of the world.
Early in 1917 the War Industries Board began making plans to end this
...situation. It promulgated an announcement (by many criticized at the time as ill-advised and premature) that munitions manufacturers making war contracts with the United States need no longer cover with options their prospec- tive commitments for nitrates to meet their contract obliga- tions, since the Government itself would guarantee the supply at four and a half cents a pound. To-day it may be stated frankly that when the Board made this announcement it had no definite idea of how it was going to make its guarantee good.

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