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general kind of evolution as a result of the massive constructions going on since
the `36 Flood Control Act, or whatever?
Well, one thing happened that
the reputations of both the Bureau
and the Corps adversely. All during World War II some of the staff of both
agencies was still working on civil functions. The Bureau had its Food for
Victory program and the Corps had its 308 reviews going along, to the extent
that they could get funding. I don't know how the Corps did it, but-when
money was appropriated for the Bureau, it was "no-year money"-available
until expended. At times, the Bureau would have 0 million or so, more or
less in the bank, of funds that were appropriated and not spent, so they could
keep that work going regardless of what Congress did.
That's all been changed now. Construction appropriations still are available
until expended, but the committees keep a much closer track of them. But
decisions were made all during World War II and for a year or so afterwards
to make estimates of costs of projects at 1940 price levels, the feeling being
that we were bound to have another horrendous depression after the war, just
as we had after the Civil War, just as we had after World War I, and probably
after the Spanish War, and so eventually price levels will simmer down to
prewar prices.
So, on all the projects in the 1944 Flood Control Act and the `45 Rivers and
Harbors Act, the authorizations were on a basis of costs contained in reports
made at 1940 price levels. The Bureau of Reclamation also had a lot of projects
under way on the same basis. For example, the Colorado-Big Thompson
project had been started and the tunnel was holed through before World War
II, or during it. The project was supposed to cost about million and the
local interests signed a repayment to pay half, but not more than million,
which was half of the estimate. Before the project was completed, the Bureau
had spent 5 million. The Corps got all those projects authorized in 1944 and
1945 and when they went to build them they cost sometimes two and three
times or more than their estimates. People who were concerned with
government expenditures had the feeling that these agencies were just making
low estimates to get their nose under the tent and their primary motive was to
spend more money.
It was just a lack of understanding on the part of the agencies of what was
going to happen. The pent-up demand that caused the economy to boom when
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