With the war in Europe in 1939, a reality, all predictions of 100-octane consumption were outrunning all possible production. Neither the Army nor the Navy could contract more than six months in advance for fuel and they could not supply the funds for plant expansion. Without a long-term guaranteed market, the petroleum industry would not risk its capital to expand production for a product that only the government would buy. The solution to the expansion of storage, transportation, finances, and production was the creation of the Defense Supplies Corporation on 19 September 1940. The Defense Supplies Corporation would buy, transport and store all aviation gasoline for the Army and Navy at cost plus a carrying fee.