National Defense Advisory Commission

National Defense Advisory Commission. The National Defense Advisory Commission was a pivotal World War II mobilization agency established by President Franklin D. Roosevelt in the critical period following the Battle of France. Created via an executive order, its primary mission was to advise the President and coordinate the nation's economic and industrial resources for the burgeoning Lend-Lease program and national rearmament. Though short-lived, the commission laid the essential groundwork for the massive wartime mobilization that would transform the United States into the "Arsenal of Democracy."

Background and establishment

The commission was formed in direct response to the rapid German victories in Western Europe during the spring of 1940, which starkly exposed the United States military's unpreparedness. Alarmed by the fall of Paris and the Dunkirk evacuation, Franklin D. Roosevelt sought to bypass a reluctant Congress and accelerate industrial preparedness. He issued the executive order establishing the body on May 28, 1940, invoking the authority of the National Defense Act of 1916 and the National Industrial Recovery Act. This move was a key part of Roosevelt's strategy to rally public and corporate support for rearmament ahead of the pivotal 1940 presidential election.

Membership and structure

The commission comprised seven prominent leaders from industry, labor, and government, each appointed as a commissioner overseeing a specific sector. General Motors president William S. Knudsen was tapped as Commissioner for Industrial Production, while United States Steel executive Edward R. Stettinius Jr. handled Industrial Materials. Congress of Industrial Organizations leader Sidney Hillman served as Commissioner for Employment. Other members included economist Leon Henderson (Price Stabilization), railroad executive Ralph Budd (Transportation), Agricultural Adjustment Administration head Chester C. Davis (Farm Products), and political scientist Harriet Elliott (Consumer Protection). The commission operated within the Executive Office of the President but lacked direct executive authority, functioning primarily as an advisory and planning body.

Functions and responsibilities

Its mandate was to survey and plan the mobilization of the nation's economic might for defense. Key functions included advising on policies for expanding aircraft and naval production, allocating strategic materials like aluminum and steel, and stabilizing prices and wages to prevent inflation. The commission was also tasked with ensuring adequate labor supply and preventing strikes through cooperation with the American Federation of Labor and the Congress of Industrial Organizations. Furthermore, it worked to protect civilian consumers from shortages and advised on the transportation of raw materials and finished munitions.

Key activities and impact

The commission's most significant achievement was initiating the shift of automobile plants and other civilian industries to war production, a process championed by William S. Knudsen. It developed the initial priority ratings system for military contracts and began the stockpiling of critical materials from Latin America. The body also established the foundational contracts for massive new government-funded facilities, such as ammunition plants and aluminum smelters. Its debates, particularly between Leon Henderson and business leaders over price controls, foreshadowed major wartime economic policies. The commission's work directly facilitated the early Lend-Lease aid to the United Kingdom and the Soviet Union.

Dissolution and legacy

The commission's advisory nature proved insufficient for the escalating demands of total mobilization following the Attack on Pearl Harbor. It was replaced by the more powerful Office of Production Management in January 1941, which granted William S. Knudsen and Sidney Hillman direct executive authority. The organizational template and many of the personnel from the commission flowed into subsequent agencies like the War Production Board and the Office of Price Administration. Its establishment marked the definitive end of isolationist economic policy and was the first major step in creating the vast military–industrial complex that enabled Allied victory in World War II.

Category:World War II home front Category:1940 establishments in the United States Category:1941 disestablishments in the United States Category:Executive Office of the President of the United States