War Assets Administration

War Assets Administration. It was a crucial agency of the Federal government of the United States established in the aftermath of World War II to manage and liquidate the vast surplus of material left by the United States Department of War and other military departments. Created by executive order from President Harry S. Truman, it succeeded earlier bodies like the Surplus Property Board and took over functions from the Reconstruction Finance Corporation. Its primary mission was to efficiently convert billions of dollars worth of government-owned war materiel into private hands, thereby aiding the nation's transition to a peacetime economy and preventing economic disruption.

Background and Establishment

The immense industrial mobilization for World War II, known as the Arsenal of Democracy, produced a staggering accumulation of military equipment and supplies. Following the surrender of Japan and the end of World War II in Europe, the United States Department of War and the United States Department of the Navy faced a massive surplus problem. Initial efforts by the Surplus Property Board, established under the Surplus Property Act of 1944, proved inadequate for the scale of the task. Consequently, President Harry S. Truman issued Executive Order 9689 in January 1946, consolidating disposal activities under a new, single agency. This action was influenced by lessons learned from the chaotic surplus sales after World War I and aimed to ensure orderly reintegration into the American economy.

Functions and Responsibilities

The agency was tasked with the identification, classification, sale, and transfer of all surplus property declared by the War Department, the Navy Department, and other federal agencies. This encompassed a dizzying array of items, including aircraft like the B-17 Flying Fortress, naval vessels such as Liberty ships, vehicles, industrial machinery, raw materials, and even entire manufacturing plants like those built by the Defense Plant Corporation. It established sales policies, set prices, and managed the transfer of assets to other government bodies, state governments, educational institutions, and allied nations. A significant function involved the disposal of properties acquired under the Lanham Act and the conversion of former United States Army Air Forces bases for civilian use.

Organizational Structure

Headquartered in Washington, D.C., the agency was led by a Commissioner, initially Robert M. Littlejohn, who reported to the Administrator of the Office of War Mobilization and Reconversion. Its national operations were divided into regional offices, mirroring the structure of the Reconstruction Finance Corporation, to handle logistics and sales across the country. Key divisions included those for real property, personal property, and aircraft disposal. It worked in close coordination with the Department of Commerce, the Department of the Treasury, and the United States Maritime Commission. The organizational design emphasized decentralization to efficiently manage the physical assets scattered from Pearl Harbor to New York City.

Major Operations and Disposals

One of its most visible operations was the sale of thousands of aircraft, including trainers like the PT-17 Stearman and bombers, which flooded the civilian market and spurred the growth of general aviation. It disposed of enormous quantities of naval assets through the United States Maritime Commission, transferring ships to commercial lines or foreign governments. The agency also managed the sale of entire United States Army installations and United States Navy yards. Notable sales included the Oak Ridge facilities to the Atomic Energy Commission and the transfer of the Kaiser Shipyards to private industry. It conducted auctions and negotiated bulk sales, dealing with entities ranging from Sears, Roebuck and Company to the Government of France.

Impact and Legacy

The agency played a pivotal role in preventing a post-war economic depression by rapidly recycling capital and materials into the private sector, fueling the post–World War II economic expansion. Its operations helped transform former military technology, such as radar and synthetic rubber plants, for civilian applications. The influx of cheap surplus goods, however, also disrupted some industries. By 1949, having liquidated the majority of the surplus, its remaining functions were transferred to the newly created General Services Administration under the Federal Property and Administrative Services Act of 1949. Its work demonstrated the massive scale of American industrial production during the war effort and set precedents for future government asset management.

Category:Defunct agencies of the United States government Category:1946 establishments in the United States Category:1949 disestablishments in the United States