PUBLICATION OFFICE: Easton, Pa. EDITORIAL OFFICE :
NEWS EDITION VOL.
12, N o . 9
MAY
10, 1934
Industrial AND
ENGINEERING
Chemistry VOL.
26, CONSECUTIVE
P U B L I S H E D BY THEAMEBICAN
N O . 16
CHEMICAL
SOCIETY
HARRISON E . HOWE, EDITOR
Room 706, Mills Building, Washington, D . C. ADVERTISING DEPARTMENT:
332 West 42nd St., New York, Ν. Υ . TELEPHONE: Bryant 9-4430 SUBSCRIPTION t o nonmembers. Industrial and Engineering Chem istry, $7.50 per year. Foreign post age $2.10, except to countries ac cepting mail at American domestic rates, and to Canada, $0.70. Ana lytical Edition only, $2.00 per year; foreign postage $0.30, Canada, $0.10. News Edition only, $1 50 per year (single copies, 10 cents); foreign postage $0.60» Canada. $0.20. Subscriptions, changes of address, and claims for lost copies should be referred to Charles L. Parsons, Secretary, Mills Build ing, Washington, D . C.
A Year's Progress toward Recovery The Statistical Story of Chemical Industries for t h e First Twelve Months of the "New Deal" OTTO W I L S O N , 3025 Fifteenth S t . Washington, D . C.
H o w F A R have t h e chemical industries actually worked back INDEX t o the level of the prosperous 1920's? On every hand there i s a 120 [ feeling of better times in t h e country's general business, a n d this includes chemical manufacture and trade as well as other activities. But here and there the voice of t h e skeptic is heard, doubting whether there is m u c h real improvement and intimating that t h e new hopefulness is chiefly t h e result of the conjuring of 100 the propagandists. I t will b e worth while, under these circum C/?em/c&/s stances, t o turn t o whatever records are available a n d ask: "What do t h e figures show?" In times like these t h e /4// C/te/nica/s & Dri/^s seismographical tracings of actual business operations in t h e form of running series of statistics are particularly valuable. It i s pleasing t o find that, in general* t h e statistical record bears out conservative impressions of an encouraging advance. The record is far from complete, and the advance indicated is far from uniform among the various branches of chemical produc tion, but such figures as are a t hand point t o a definite recovery. The recovery is not y e t large, but it has been well sustained over the better part of a year. Factory operation, employment, PA?r/77âceuf/c&/s and wages have approached the levels of pre-depression years. Prices are still considerably lower than those of a decade a g o , I I I I 1 1 I I I 1 40 and for t h e industry a s a whole they have shown a stubborn re J F M A M J J A S O N O Oi sistance t o the general upward tendency of t h e past year, al ο CO 1933 though in some lines there have been marked gains. But actual CO production, as shown by the limited number of figures available, as a rule has picked u p noticeably in more recent months, and in FIGURE 2. WHOLESALE PRICES OF CHEMICALS AND D R U G S BY some lines output has even reached and passed what may be con CLASSES (MONTHLY AVERAGE 1926 = 100) sidered a normal figure. T h e background for the general improvement in chemical in t h a n American industry a s a whole. Production and trade have dustry, t h e course of American industry as a whole over the last been less stimulated by the occasional speculative flurries and few years and particularly in the past twelve or fifteen months, h a v e held up better over the periods of stagnation. This has been noticeably true in the past twelve months. Following the is a fairly familiar one. For a.year following the catastrophe of 1929 the curve of industrial production sloped steadily downward. critical days of early March came a period of two o r three months A few months' recovery in the first half of 1931 was followed b y a during which the business i n chemicals, like t h a t in all other commodities, tried to feel its way through a multitude of uncerfurther decline which touched its lowest point in t h e middle of 1932. A slight upward tendency w a s followed again by the tainties. B y the beginning of summer it was finding itself and from then on the several indiœs available show a steadily rising slump which culminated in the bank holiday and the nearlevel, month b y month, continuing paralysis Of the early days of March, on into the spring of 1934. These 1933. Then came a period of gradu INDEX indices carry t h e statistical record, at ally returning confidence which was 100 this writing, only through February, stimulated b y speculative influences but there is no reason to believe that until, in midsummer of 1933, produc 1 * *N there has been any break since i n the tion mounted to the prosperous levels \ CSemioa/s &> £to/%s record of gradual improvement. The > of eight or nine years before. T h e 80 outlook immediately ahead is all the ensuing decline from this peak was is more favorable because of the steadialmost a s steep a s t h e rise and con "~ ness in the improvement of the past tinued until about November, when year and the avoidance alike of the 1 a healthier upturn set in, which h a s "M 60 over-optimism and of the ensuing continued fairly steadily since. /f/J Qs/nmocZ/ties dullness which characterized business Chemical p r o d u c t i o n a n d sales in general. T h e c h i e f m e a n s for havo followed much the same course following the varying fortunes of the I I I I Ι ι I 1 1 1 1I as American industry as a whole, al 4-0 J F M A M J J A S O N O chemical i n d u s t r y from month to J though there have been some notable 4 month i s through a series of statistiCO exceptions in industries surrounded 1933 φ cal compilations carried on currently by special conditions. I n general, by various official and non-official t h e c h e m i c a l g r o u p h a s plowed F I G U R E 1. WHOLESALE P R I C E S OF CHEMICALS AND bodies and gathered together b y the through the rough economic seas of D R U G S COMPARED WITH AI*L COMMODITIES (MONTHLY government in its monthly Survey of the last five years o n a more even keel AVERAGE 1926 = 100)
1932
1931
1930
1929
γ
165
NEW S Ε D I T I O N
166
Vol. 12, N o . 9
The averages given for "chemicals Current Business. The running INDEX and drugs" were compiled from price picture of conditions in the industry 175 quotations for 89 different commodi which these figures afford is not at all ties, divided into the three sub-groups: complete. In large part the informa (1) chemicals; (2) drugs and pnarmation is supplied through voluntary 150 ceuticals; and (3) fertilizer materials. r e p o r t s from the larger producing G l a n c i n g f a t t h e records for these firms, and when only one or two such g r o u p s separately we find that the firms, whose output represents a big prices of "chemicals" have held up percentage of the total production of | 125 much better during the whole depres a commodity, fail to send in returns sion than those of the other two sub any figures that might be published groups, and, no doubt because of that would probably be misleading. On 1 1 1 i l I I I I J 100 J F M A M J ^> A S Ο Ν D J F fact, have risen much less during the this account the most significant fig 1934 1933 past year (Figure 2). In fact, after ures of all, those s h o w i n g a c t u a l some slight fluctuations over the four month-by-month production for the teen m o n t h s t h e a v e r a g e price of whole chemical industry, are lacking, ]FlQTJBE 3 . CON8TJME»TÏON O F ELECTRICAL· E N E B G Y I N c h e m i c a l s r e m a i n e d in February, and there are other gaps in the record. 1934,'practically the same as a t the On the other hand, some branches of beginning of 1933. Drugs and phar the industry are covered 100 per cent, maceuticals, on the other hand, rose during that period from 54.9 and the picture of conditions is accurate; while for the industry to 71.5, and fertilizer materials from 62.3 to 69.2. Combined as a whole the data available are enough to show pretty cles-rly prices for all three groups, in February, still represented a some the major trends and comparative conditions of prosperity or what higher average as compared with 1926 than did prices for all adversity. commodities. Figures are available for many years showing the morrthly T h e following table shows the fluctuations in average monthly variations, relative to a stated base, in the following phases of prices over the last fourteen months as compared with earlier the chemical industry in the United States: (a) wholesale com years: modity prices; (6) industrial consumption of electrical enexgy; (c) stocks of manufactured goods; (d) stocks of raw materials; WHOLESALE PRICE-INDEX OP CHEMICALS AND D R U G S (e) number of employees; (/) proportion of full time in fac-fcory (Monthly average 1926 = 100) operations; (g) pay rolls; (h) business failures of manufacturers DRUGS and traders, total number, and total liabilities; and (i) imr>orts ANJ> and exports. There are also figures showing the actual domestic PHARMA FERTILIZER COM CHEMI BINED CEU MONTHLY * MA and foreign trade movement, pricey, production, stocks, etc., TERIALS TICALS CALS INDEX AVERAGE more or less complete, of alcohol, methanol, explosives, sulfur 100.0 100.0 100.0 100.0 1926 and sulfuric acid, fertilizer, naval stores, vegetable and animal 96.2 88.4 99.6 96.8 1927 oils and fats, and paints. These returns are not to be takexi as 94.6 72.6 100.5 95.6 1928 giving an actual monthly census, except where specified, but 92.1 71.5 99.1 94.2 1929 85.6 68.0 93.7 89.1 1930 rather as showing how the business winds are blowing each 76.8 62.8 83.0 79.3 1931 month and year as compared with earlier periods. 66.9 57.8 79.8 73.7 1932
CHEMICAL AN» ALLIÉE» INDUSTEIES (MONTHLY AVERAGE rS23--25=10O)
M
ι
A
t M
ι J
Ι J
ι A
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1933
ι
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1934·
FIGURE 4. STOCKS OF RAW MATERIALS AND MANUFACTURED CHEMICALS, AND ALLIED PRODUCTS (MONTHLY AVERAGE 1923-25GOODS, «=3-0ϋ) WHOLESALE PRICES
Wholesale prices of chemicals and drugs were very slo^w in rising during the twelve months ended with February, 1.934, The U. S. Department of Labor, in compiling these price indices, has adopted the monthly average of the year 1926 as a basis of comparison. Taking that average as 100, the price index for January, 1933, stood at 71.6. It remained at approximately that figure until May, when it rose to 73.2, and then for t h e rest of the year stood near 73, rising to 73.7 in December. The pres ent year opened with a rising price average, the January figure standing at 74.4 and February at 75.5. In contrast with this gain of about 6 per cent in fourteen months, the general average price of nearly 800 commodities comprising the great bulk of the country's trade, as computed by the Department of Labor, increased from a 1low point of 5 9 . 8 in February, 1933, to 73.6 in February, 1934 (Figure 1). Thus the general price level responded much more readily t o the innovations of the "New Deal" during the past year t h a n did that of chemicals and drugs. Even so drastic a coup as th.e de valuation of the dollar b y 40 per cent appears to have produced no particular reaction in chemical prices, or at most a very sluggish one, while its effect on general prices is manifest. A s for other factors, it is apparent that they brought a more spectacular >rice recovery to general business than to chemicals, partly at Îeast because the price average of chemicals had n o t previously declined to so low a level. Thus, starting with 1926, when the monthly average for both stood at 100, the average for all com modities went to 95.4 in 1927; to 96.7 in 1928; 95.3 in 3.929: 86.4 in 1930; 73.0 in 1931; and to 64.9 in 1932, while the record of chemicals and drugs in these years was 96.8, 95.6, 94.2, 89,1, 79.3, and 73.7. * All averages cited in this review a r e weighted averages; t h a t is, t h e ^ take into account the changing bulk of sales of various commodities, as vs^ell as changing quotations.
79.3 79.0 79.3 79.5 80.9 81.5 80.3 79.6 78.8 78.6 79.2 79.2
54.9 54.8 54.8 54.6 55.0 55.5 56.8 57.6 56.8 56.8 58.4 59.0
62.3 61.5 61.9 62,9 66.8 68.0 68.6 69.0 66.6 67.6 67.8 68.1
74.4 75.5
78.8 78.8
65.2 71.5
68.4 69.2
INDUSTRIAL CONSUMPTION OF ELECTRICAL E N E R G Y
One way of judging how active the industry has been in manu facturing is to note its factory consumption of electrical energy (Figure 3 ) . I n January, 1933, such consumption was meas ured by t h e index figure 126 (monthly average 1923-25 taken as 10O). This rose to 130 in February and then dropped t o 115.6
INDEX 1401
120
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60 40 1932
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71.6 71.3 71.2 71.4 73.2 73.7 73.2 73.1 72.7 72.7 73.4 73.7
1931
J
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1930
β ν 75
1929
^^MANUFACTURED Ζ/ΥΜ ^^^ÊL ^^^///yyyyyoooDs J^WM
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1933: January February March April May June July August September October November December 1934: January February
I I I I I I I I I I 1 · 1 J F M A MJ J A S O N DJ F CO 1933 en
FIGUBB 5. FACTORY 1923-25 EMPLOYMENT -100) (MONTHLY AVERAGE
1
May 10, 1934
I N D U S T R I A L
A N D
E N G I N E E R I N G
in March, which was t h e low point for the year. T h e ensuing twelve months show a steadily increasing consumption, rising with hardly a break to a peak figure of 164 i n February, 1934. This w a s a gain of approximately 30 per cent, and represents much t h e higliest point y e t reached b y chemical factories i n consumption of electricity. The monthly average for t h e year 1933 was higher than for any previous year, standing at 141.9 a s compared with the following recordings over the last decade: 1932, 127.2; 1931, 136.6; 1930, 138.6; 1929, 135.7; 1928, 128.2; 1927, 107.6; 1926, 114.4; 1925, 112.4; 1924, 96.2; 1923, 91.4. For the first t w o months of the present year the average was 155.7. The increases shown by these comparative figures represent not only a greater flow of current b u t a rapidly increasing electrification of chemical manufacture over recent years. A s b e tween 1923 a n d 1933, for example, the growth shown b y t h e figures given w a s some 55 per cent a n d that of January and F e b ruary of this year about 70 per cent. B u t the actual progress i n electrification for the industry as a whole was undoubtedly even greater. The index figures are compiled from reports made b y identical firms over the last decade, and they reflect only t h e varying use of current b y these established firms, including current from modernized plants and new installations. T h e y do n o t cover the electrical energy used by t h e plants of newly established firms. In t h e last twelve months, however, w i t h little development in the w a y of new enterprise, the gains i n the volume of electrical current consumed m a y be taken as chiefly t h e result of more extended factory operations. Chemical industries stand out conspicuously among t h e country's major lines of manufacture in point of increased use of electrical energy. The following index figures, compiled b y t h e
120
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100
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r •
e/r?iœ/sçr
/^f
\ 60
^
1932
1931
1930
40
1929
167
M I L L I O N S OF DOLLARS 50
40
30
20
10
/MPORTS
Mill
1929 F I G U R E 7.
1930
1931
1932
1932\
I M P O R T S O F C H E M I C A L S AND R E L A T E D P B O D U C T B BY QuAXtTEBS
reached a monthly average of 102 for 1933, rather lower than the figures for several years past. They were consistently lower during t h e spring and summer months, dropping t o 85 in July, but this is a seasonal variation, appearing regularly year after year, and has no significance as t o industrial activity. EMPLOYMENT A N D W A G E S
80
FlGUKE 6 .
CHEMISTRY
1 1 1 1 1 1 1 1 i 1 1 1 J F M A M J J A S 0 N O J PI 'tien (Ss
1933
F A C T O R T P A Y ROL/LB ( M O N T H L Y A V E R A G E
1923-25=100)
Electrical World from reports from 3800 manufacturing concerns dependent o n electric power, afford comparison with a dozen other industrial groups: INITQSTRIAL U S E OP ELECTRICAL E N E R G Y (Monthly average 1 9 2 3 - 2 5 = 100) MONTHLY AVERAGE
T o t a l , all i n d u s t r i e s A u t o m o b i l e s , i n c l u d i n g p a r t s a n d acoeesories C h e m i c a l s and a l l i e d p r o d u c t s F o o d t>roducts Leather a n d p r o d u c t s Lumber and products Electrical apparatus Metal-working p l a n t s R o l l i n g mills a n d s t e e l p l a n t s Paper a n d pulp Rubber and products Shipbuilding Stone, c l a y , a n d g l a s s Textiles
JANUARY
FEBRUARY
1933 95.9
1934 97.4
1934 111.8
57.6 141.9 122.9 91.5 95.9 99.0 68.7 73.2 119.4 113.9 80.2 85.8 100.0
74.9 147.5 106.0 89.7 102.9 97.1 78.7 77.8 119.8 128.6 91.0 74.3 99.5
95.5 164.0 120.1 119.2 113.2 108.2 88.6 88.3 129.1 141.3 107.6 90.3 117.0
Most gratifying t o those interested in chemical manufacture are the figures which show its contribution t o the chief aim of the recovery program, the promotion of reemployment. A s revealed b y t h e statistical record, t h e chemical group of industries has already reached the first objective for which presumably the whole of industrial America is striving—the restoration of employment to the so-called normal level prevailing ten years ago. I n this respect i t is well in the lead of all other great groups of industries and is far ahead of American industry a s a whole. The index available t o show comparative employment i s that compiled b y the Federal Reserve Board from data collected b y the U. S. Department of Labor and m a n y other federal and state agencies. The fifty industries covered employ in normal times about four-fifths of the Nation's factory workers. The reports m a y t h u s be taken with reasonable assurance as depicting the ups and downs of the general employment situation in manufacturing. F o r the chemical industries t h e returns show that factories entered the year 1933 with labor forces about threefourths the normal size (taking t h e 1923—25 average as normal), and that this proportion had been prevailing over practically the whole of the preceding year (Figure 5). B y April t h e figure had risen to over 80 per cent, and then, following a slight recession in the next t w o months, in July i t started a steady climb which carried i t past the 100 per cent mark i n November. For that month the index stood a t 100.3; for December, 100.6; for January, 1934,101.8; and for February, 103.5. T h e activity reflected b y these figures can be better appreciated when they are compared with the index for employment in all industries, which stood at 58.1 at the beginning of 1933 and reached only 71 a t the close, although September employment h a d attained a figure of 76. Included i n the above returns for chemical manufacture, however, are those for petroleum refining. If these are eliminated
STOCKS
The running record of the stocks of raw materials and manufactured goods on ban4 at the end of each month since the b e ginning of 1 9 3 3 reveals htt'io of special significance as to t h e progress toward recovery (Figure 4). As compared with t h e monthly average of 1C23-25, stocks of manufactured goods reached an average of 115 during t h e twelve months of 1933, 117 at the end of January, 1934, and 113 at the end of February. F o r 1932 t h e monthly average was 125; for 1931, 125; and for 1930, 129. The lower figure for last year possibly points to a more rapid movement of manufactures. Stocks of raw materials
F I G U R E 8.
E X P O B T S O P C H E M I C A L AITD R E L A T E D P R O D U C T B B Y QUAJSTEKB
NEWS
168
EDITION
Vol. 12, No. 9
step from month to the s h o w i n g is even THOUSANDS OF GALLONS m o n t h , and in Feb more favorable. 2O0O ruary, 1934, total pay "Chemicals and drugs" rolls were a t t h e i r are credited with havh i g h e s t p o i n t since ing maintained a comO c t o b e r , 1931. The paratively high greatest improvement average of employment I50O -\came between April all through the depresand October, d u r i n g sion, the low p o i n t which time the index v being reached in July, number rose from 60.8 1932, w h e n f a c t o r y I00O to 78.7, or about 30 per workers numbered only -tcent. 75.6 per cent as many CruJe MeManp/, ,' Synthetic As with employment as eight years before. IVooe/-D/sb/ledJ^Meé/iavo/ figures, the pay-roll By the beginning of gains for this general 1933 they had picked 500 group were held back up to 80.2 per cent and because of the inclu by August had passed sion of r e t u r n s from 100 per cent, the gain petroleum-refining continuing thereafter plants, in which the until February last (the advance was not very latest figures at present large. In the fourteen available), when emmonths the rise in this ployment was 111 per i n d u s t r y w a s from cent of the so-called F I G U R E 9. M E T H A N O L PRODUCTION, 1930-33 64.6 to 73.6. Chemi normal. This was cals and drugs, on the practically the same as the average for the strenuous year 1929, which stood at 111.2. other hand, registered a pay-roll gain of nearly 27 points—from 60.6 in January, 1933, to 87.2 in February, 1934. This was an The record of advancing factory employment over the last fourteen months in chemical industries, as compared with t h e actual increase of about 44 per cent, a much better showing broad field of American industry in general, is given in the follow- than most other industries have made. The increases in total wages paid in chemical industries is ing table: all t h e more notable in that, on the face of the returns, these industries had already been holding their wage totals up to INDEX OF FACTORY EMPLOYMENT much higher levels than had American industry as a whole. (Monthly average 1923-25 = 100) In January, 1933, wage payments for all industry had dropped COMBINE» as low as 39.2, as compared with 1923-25. By the end of the INDEX CHEMICALS AND P R O D U C T S year they had risen to 53.1 and in February, 1934, they jumped 50 Combined Chemicals Petroleum MONTH to 59.2, a notable gain but one which still left the general average INDUSTRIES Index and Drugs Refining far behind that for chemical manufacture on the road back to 1933: 58.1 January 75.0 80.2 76.2 recovery. 59.2 February 56.7 57.8 60.0 64.1 68.9 73.4 76.6 75.8 72.6 71.0
77.3 78.2 82.4 78.9 79.4 84.0 89.9 96.2 99.4 100.3 100.6
80.5 80.1 78.8 80.8 85.0 92.3 100.7 106.4 109.0 110.0 109.4
75.7 75.8 75.9 76.8 78.1 78.1 79.7 84.4 87.8 88.6 89.6
70.5 74.7
101.8 103.5
110.3 111.0
89.9 89.2
FOREIGN TRADE
The volume of our foreign trade in chemicals is small com pared with that of our domestic trade, and except in certain com modities fluctuations in imports and exports have no particular significance as measures of the progress of recovery. Trade in both directions picked up in 1933 as compared with the previous year, but the gain in neither case was excessive and it still left the year's totals well below those of 1931 (Figures 7 and 8). The aggregate value of imports of chemicals and related products for 1933 was $59,938,000, about 25 per cent above that of 1932 but nearly 30 per cent under 1931. I t was only about 40 per cent as large as the 1929 total. Last year's exports, valued a t $76,771,000, showed a gain of 9 per cent as compared with 1932, a loss of 23 per cent as compared with 1931, and a total about one-half as large as that of 1929. However, with the Government concentrating its attention al most wholly on the domestic program, and leaving foreign trade to shift for itself, this showing is encouraging. The only major policy of the "New Deal" calculated to stimulate export trade was the devaluation of the dollar. This seemed to be having the desired effect in the latter part of 1933, when exports rose more
SHORT TONS ,250,000
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1929 FIGTJKE 10.
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1933
THOUSANDS OF T O N S 1 500!
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STJLFURIC A C I D P R O D U C T I O N , 1929-34
300 It is evident that these gains in number of em ployed were predominantly in the lower paid ranks. Increases in monthly pay rolls, while like wise much ahead of those for American factories in general, were less pronounced than gains in the roster of employees (Figure 6). Thus, while the number of employed was rising from 76 to 103 be tween January, 1933, and February, 1934, a differ ence of 27 points, the total wages paid were rising from 60.7 to 80.8—a gain of only about 20 points. The February figure, it will also be noted, is still far below the normal monthly totals of eight to ten years ago, and the high figure of 1929, when the monthly average stood a t 113.4, is nowhere in sight. The gams of the last fourteen months, how ever, were consistent, with scarcely a backward
1
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w V
200
100 O
1
1932
VV
1931
150,000
1931
200,000
1930
March April May June July August September October November December 1934: January February
J
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1933
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1934-
FIGUES 11. PRODUCTION (SHOBT TONS) OF SUPEBPHOSHATBS, 1929—34
M a y 10, 1934
I N D U S T R I A L
A N D
E N G I N E E R I N G
t h a n 4 0 per cent i n value in t h e last five months. B u t t h e gain h a s n o t continued into t h e present year, J a n u a r y a n d F e b r u a r y exports being valued a t $6,583,000 a n d $6,676,000, respectively, a s compared with S8,739,000 i n December, a n d being b u t little above those for t h e corresponding m o n t h s of 1932. Imports of chemicals, o n t h e other hand, remained steady. T h e y stood a t $5,626,000 i n J a n u a r y a n d $5,738,000 in February, apparently a small gain over t h e December total of $5,438,000. T h e figures, however, a r e n o t strictly comparable, those u p t o t h e end of 1933 representing "general i m p o r t s " a n d later figures "imports for consumption." Our foreign t r a d e in chemicals a n d related products w a s r e viewed in detail i n t h e M a r c h , 1934, issue of INDUSTRIAL AND ENGINEERING CHEMISTRY. OTHER
DEVELOPMENTS
C H E M I S T R Y
169
10 per cent higher, or a b o u t 1,800,000 gallons. (Methanol returns a r e received from 34 manufacturers who, according t o t h e 1931 census, produced 90 p e r cent of t h e synthetic methanol, 80 p e r cent of crude wood-distilled and 62 per cent of refined wooddistilled methanol. E s t i m a t e s are made b y stepping-up actual returns on t h e basis of t h e s e proportions.) T h e rising tendency h a d been in evidence since April a n d particularly in August a n d September, the latter m o n t h recording a production nearly three times t h e average of t h e first seven months. November a n d December dropped off, but t h e figures for December were still nearly t h r e e times a s high a s those for J a n u a r y . By contrast, crude m e t h a n o l distilled from wood experienced a rather s t e a d y production t h r o u g h o u t t h e twelve months, with t h e December o u t p u t s t a n d i n g a t about t h e s a m e level as t h a t a t the beginning of t h e year, and t h a t of refined followed much t h e same course. C r u d e methanol output for t h e year was nearly one-fourth larger t h a n t h a t of 1932 b u t was still under 1931 pro duction, t h e totals for these years (actual returns, representing about 8 0 p e r cent of t h e national manufacture) being a s follows · 1933, 3,079,000 gallons; 1932, 2,481,000 gallons; 1931, 3,301,000 gallons. F o r refined wood-distilled methanol t h e returns (62 p e r cent of total manufacture) were a s follows: 1933, 1,621,000 gallons; 1932, 1,526,000 gallons; 1931, 1,699,000 gallons. R e ported production of synthetic (90 per cent of t o t a l manufacture) was 8,793,000 gallons i n 1933, 7,634,000 gallons in 1932, a n d 7,007,000 gallons in 1931.
1932
193!
1930
1929
Among o t h e r available records of t h e course of business i n chemical m a n u f a c t u r e a n d t r a d e in 1933 are m o n t h l y statistics showing percentage of full-time factory operation a n d the n u m b e r a n d size of business failures. Neither set of figures is of m u c h significance a s showing recovery trends, b u t t h e y are of some interest in themselves. As reported b y t h e U . S. D e p a r t m e n t of Labor, chemical fac tories i n active operation in 1933 gave employment t o such work ing forces a s t h e y h a d for a b o u t 93 per cent of full working t i m e . I n d u s t r y in general achieved a figure of only 89 p e r cent. T h i s p e r c e n t a g e figure of ACETVTE O F LIME course tells n o t h i n g of [THOUSANDS OF BARRELS v o l u m e of e m p l o y M o n t h l y returns for m e n t o r e x t e n t of 50 the production of ace operation, a n d i t does t a t e of lime are p u b n o t v a r y greatly from lished for the last three year t o year. I n 1932 years: 1933, 43,086,40 i t stood a t 91 per cent 000 p o u n d s ; 1932, for c h e m i c a l m a n u 33,435,000 pounds; facture, a n d h a s never 1931, 39,933,000 f a l l e n b e l o w 90 per pounds. L a s t year's 30 c e n t i n t h e l a s t ten production was par years. Such fluctua ticularly heavy during tions a s were recorded the final quarter, t h e d u r i n g t h e y e a r in N o v e m b e r ? j f i g u r e of 20 dicated a s o m e w h a t 4,753,000 pounds being closer approach t o fullthe highest since time operation i n t h e March, 1931. middle of 1933 t h a n a t \0 other times. ALCOHOL Business failures Because of the excise a m o n g manufacturers tax t h e legal produc of c h e m i c a l s , drugs, ι ι ι ι ι Ι ι ι 1 I 1 1 0 tion of denatured a n d a n d p a i n t s were m u c h J F M A M J J A S O M D !J F ethyl alcohol is known r e d u c e d i n 1933 as 19341933 accurately. Last year compared with 1932, w i t n e s s e d increased n u m b e r i n g 138 a s activity in t h e manu against 200, b u t t h e FIGURE 12. WOOD-ROSIN PRODUCTION, 1929-34 facture of both, which total liabilities, $8,916,brought t h e twelve m o n t h s ' totals well above those for 1932 b u t 000, approached t h e total of t h e preceding year, $10,674,000. E x still b e n e a t h t h e 1931 figures. Production w a s especially heavy cep t for 1932, however, these failures last year were the highest in n u m b e r for t e n years or m o r e . T h e month of m o s t failures w a s in the second half of th.e year. O u t p u t for t h e past year as com pared w i t h t h e two years immediately preceding was a s follows: August, w h e n 2 5 were recorded, b u t February l e d in totals of denatured alcohol 1933, 73,816,000 (wine) gallons; 1932, 65,liabilities involved, with $5,599,000. Among traders in chemical 882,000 gallons; 1 9 3 1 , 81,639,000 gallons; e t h y l alcohol, 1933, wares 1199 failures with liabilities of $16,363,000 were recorded, 138,189,000 (proof) gallons; 1932, 128,819,000 gaUons; 1931, as compared w i t h 1549 failures with liabilities of $19,967,000 in 151,463,000 gallons. 1932. R E C O V E R Y EST S P E C I F I C C O M M O D I T I E S
SULPTJR
T h e foregoing statistical records refer t o chemical i n d u s t r y a s a whole. T u r n i n g t o particular commodities i n the chemical group we find t h e same story of partial recovery, rising here a n d t h e r e almost t o t h e levels of t h e BARRELS prosperous years. Adequate returns for specific commodities, however, are all too scattered a n d 8O00I fragmentary, a n d in t h e case of only a few classes of goods is t h e running record sufficiently full t o afford a good picture of w h a t h a s been happening 6000 in t h e given i n d u s t r y during t h e p a s t year. I n t h e absence of indications t o t h e contrary, we can only a s s u m e t h a t t h e i m p r o v e m e n t in t h e Unes for which d a t a are available holds good 4000 also for related p r o d u c t s .
Sulfur production increased sharply in t h e last two quarters of 1933 a n d t h e year's t o t a l w a s well ahead of t h a t of 1932, b u t it
METHANOL
T h e o u t s t a n d i n g feature in methanol manufac ture in t h e past y e a r has been the great up-surge in t h e production of synthetic methanol, carry ing t h e o u t p u t curiae in t h e latter p a r t of t h e year t o points n e v e r before reached |in t h e short life of t h e American i n d u s t r y (Figure 9). T h e peak of p r o d u c t i o n was reached in October, when manufacturers reported 1,643,000 gallons and when t h e t o t a l a c t u a l o u t p u t was probably some
EO00
_ί cu CO
L
J
L J
J
J I L A 5 Ο rs Ο
1933
FIGURE 13^ WOOD-TUBFBNUNSJ PRODUCTION, 1929-34
J
F
1934-
NEWS
170
was still less t h a n half t h a t of several preceding years, o u t p u t b y quarters for t h e last three years was as follows: U.
First quarter Second quarter Third quarter Fourth quarter TOTAL·
S. P R O D U C T I O N
EDITION
The
OF S U L F U R
1932 Long tons 250,910 241,958 194,471 188,607 875,946
1931 Long tons 649,595 608,730 539,231 332,038 2,129,594
1933 Long tons 116,478 233,233 322,011 313,283 985,005
Vol. 12, N o . 9
ammonium sulfate or o t h e r nitrogenous materials, a n d the import t r a d e is n o longer the index t o the American d e m a n d which i t was before Chilean nitrate w a s largely displaced b y domestic mate rials. Much heavier i m p o r t s all along t h e line, however, includ ing the various nitrogenous a n d potash fertilizer materials as well as sodium nitrate ( b u t n o t including t h e unimportant import t r a d e in phosphates) were one testimony to t h e more lively deMILL10N5 OF POUNDS 1001
Total production in 1930 was 2,558,000 tons; in 1929,2,358,000 tons; and in 1928, 1,970,000 tons. SULFURIC
ACID
I n response t o the greater activity in t h e fertilizer trade, production of sulfuric acid made encouraging gains in 1933 over t h e preceding year, although it is still far below w h a t was formerly considered a normal 12-month o u t p u t (Figure 10). T h e statistics available are those covering t h e manufacture of sulfuric acid by fertilizer companies, t h e returns being complete for this industry. They show a gain of nearly 4 5 per cent in volume of output, t h e 1933 total being 1,367,000 short tons a n d t h a t of 1932 953,000. Last year's manufacture did n o t quite reach that of 1931, which totaled 1,428,000 tons. I n 1928 a n d 1929 produc tion exceeded 2,200,000 tons. Production in 1933 w a s heaviest in t h e last quarter, and t h e greater activity extended into the present year. T h e returns for January, 1934, stood a t 144,000 t o n s and for F e b r u a r y a t 140,000 tons. These figures compare with an average of about 156,000 tons for t h e last three months of 1933, b u t t h e falling off was a p parently a seasonal one. Production i n the first t w o months of t h e present year was much in excess of t h a t for t h e corresponding periods of 1932 a n d 1933. EXPLOSIVES
T h e monthly returns covering n e w orders for explosives in 1933 (the only figures available) show a greatly increased demand in t h e latter part of the year. During t h e first five months orders THOUSANDS OF POUNDS !200
1000
ι
I
I
1929 F I G U R E 15.
1931
1930
ranged somewhat above 16,000,000 pounds per month, b u t beginning with J u n e they totaled 20,000,000 t o 25,000,000 pounds monthly until t h e close of t h e year. J a n u a r y a n d February of 1934 saw still heavier demands, aggregate orders standing a t 28,504,000 pounds and 25,584,000 pounds, respectively, for these months.
m a n d ruling i n fertilizer markets. Exports of phosphates, com prising t h e bulk of fertilizer materials sold abroad, and of potas sium substances, were also m u c h heavier, although those of ammonium sulfate a n d other nitrogenous materials were con siderably smaller, and t h e i r slump brought t h e total value of exports i n this group somewhat below t h e 1932 figure. Consumption in the principal area where fertilizers a r e used, t h e southern states, t o t a l e d a b o u t 3,214,000 short tons i n 1933. Earlier figures a r e not strictly comparable, b u t a good gain of some 20 per c e n t over 1932 was indicated. As compared with earlier years, however, l a s t y e a r ' s consumption was only about 60 per cent of a normal average. STORES
A healthy advance a l l along t h e line, which brought gains of 15 t o 30 per cent in production b u t which h a s n o t y e t carried t h e industry back t o t h e o u t p u t levels of t h e prosperous years, is t h e record of naval stores m a n u f a c t u r e since t h e beginning of 1933 (Figures 12 a n d 13). A s with a number of other lines of m a n u facture a certain improvement w a s noticeable even in t h e early months of 1933, b u t t h e greater part of t h e gains came in t h e middle o r latter part of t h e year. I n all five of t h e i m p o r t a n t commercial products of t h e n a v a l stores industry production was distinctly stepped up in M a y , a n d the higher r a t e of o u t p u t was for the most p a r t well m a i n t a i n e d during t h e ensuing months. T h e extent t o which t h e industry h a s recovered is indicated by t h e following record of o u t p u t last year a s compared w i t h t h e five immediately preceding years, and also during the first two months of the present y e a r a s compared with like periods in 1933 a n d 1932. T h e figures for pine oil, wood rosin, a n d wood t u r pentine represent t h e p r o d u c t i o n of eight firms, whose output covers practically the whole amount of those articles obtained b y steam distillation from t h e oleoresin within o r extracted from t h e wood. Those for g u m rosin a n d turpentine represent n e t r e ceipts of these commodities at t h e three p o r t s of Jacksonville, Savannah, a n d Pensacola. I n b o t h cases t h e compilations are m a d e b y private, b u t authoritative, agencies. PRODUCTION O R R E C E I P T S O F N A V A L
FERTILIZERS
Aside from, t h e sulfuric acid figures given above, production figures for fertilizers a r e a t hand only for bulk superphosphates. Production of these materials w a s unusually heavy in t h e last three months of t h e year, totaling nearly a million short tons for t h e quarter and surpassing t h e o u t p u t for a n y previous quarter since 1930 (Figure 11). T h e increased business continued into t h e present year, January registering 327,000 tons as compared w i t h 323,000 t o n s for December and 227,000 tons for January, 1933. For t h e full year 1933 production reached 2,695,000 tons, a notable 50 per cent gain over t h e 1932 figure of 1,768,000 tons. L a s t year's total was almost equal t o t h a t of 1931, when 2,744,000 t o n s were produced. I n earlier years, however, t h e annual out p u t approached 4,500,000 tons. No returns a r e officially compiled showing t h e production of
1933
PRODUCTION OF COCONUT O I L BY QUARTERS, 1929-33
NAVAL
F I G U R E 14. PRODUCTION AND FACTORY CONSUMPTION O F VEGETABLE O I L S BY Q U A R T E R S , 1929-33
1932
Y E A R AND MONTH
1928 1929 1930 1931 1932 1933 January 1932 1933 1934 February 1932 1933 1934 ° Net r eceipts
P I N E OIL
Gallons 2,693,949 2,738,367 2,890,886 2,218,281 2,250,708 2,830,093 162,330 233,286 305,445 130,046 186,598 306,375 a t three ports
GUM ROSIN*
SOO-vound 1,190,261 1,386,748 1,331,695 1,175,941 852,521 979,599 28,614 35,064 39,219
WOOD ROSIN
barrels 420,516 449,532 474,086 335,700 341,944 430,160 23,196 31,188 46,850
STORES GUM TUR PENTINE"
"WOOD TUR PENTINE
50-gallon barrels 75,118 339,713 83,459 387,888 83,353 387,909 56,122 330,972 55,954 220,271 68,440 257,682 5,234 6,283 4,985
20,006 3,808 29,539 2,826 25,583 30,639 2,639 46,016 32,640 Other figiires are for production.
3,626 4,975 7,970 3,121 4,175 7,892
May 10, 1934
INDUSTRIAL
AND ENGINEERING
t As the above figures show, the better business of 1933 continued into the present year. The January and February output of pine oil, wood rosin, and wood turpentine in 1934 was about twice that of two years previous. The figures for gum rosin and gum turpentine are of less significance because of the seasonal character of the trade, -which, is very Light during the first three months of the year. Wholesale prices (New York) for gum rosin opened the year 1933 at the low qxiotatiozi of S2.89 per barrel, the lowest point they reached, as a monthly average, during the whole depression. Beginning in April they advanced more or less steadily throughout the year, and for December reached an average of $4.65. For January, 1934, the average price was $4.66 and for February $5.38, the latter being the highest figure for any month since October, 1930. The monthly average for the whole year of 1933 was $4.16, which, compared with S3.30 for 1932, $4.25 for 1931, $6.25 for 1930, and SS.36 for 1929. Wholesale prices for gum turpentine showed little increase during the year, averaging 45 cents per gallon in January and 47 cents in December, but they rose to 52 cents in Janxiary, 1934, and to 62 cents in February. The February average was the highest in nearly seven years.
VEGETABLE OILS
The volume of vegetable oils manufactured in this country last year showed only a small gain over the preceding year (Figure 14). The 1933 total w a s 2,393,000,000 pounds and that of 1932 was 2,378,000,000 pounds. But the small size of the increase (less than 1 per cent) is to be ascribed, not to a continuance of depressed conditions in t h e industry, but to the fact that it had been previously faring- much better than most other lines of manufacture. T h e 1932 total marked the low point of the depression, but i t was less than 10 per cent under that of 1931— 2,538,000,000 pounds—and -was only about 18 per cent less than the yearly average for -fche 4-year period 1927-30, which stood at 2,862,000,000 pounds. A s there was less reason for heavy gains last year, there was likewise less evidence o f the marked recovery at the close of the year which has been n_oted in the case of most other products. Heaviest production of" vegetable oils comes in the last quarter. In 1933 the October to December yield was 812,514,000 pounds, which compared with 7Q8,39o,000 pounds in 1932. For the years 1925-31 the yield of tine final quarter has stood consistently at a little over one billion pounds. The general decline of about 20 per cent chargeable to the depression was thus still in evidence at t h e close of last year*The greater part of this big output of vegetable oils consists of cottonseed oil and coconut oil, the latter crushed from imported copra (Figure 15). From May t o August, 1933, the volume of crude cottonseed oil issuing from the presses was much larger than in 1932, b u t it was considerably less during the first four and the last four months, and the full year's total—1,402,000,000 pounds—was more than 10 per cent under that for 1932—1,571,000,000 pounds- However, as t h e 1932 figure is a fair average for annual output over a number of years, the 1933 total implies no special inactivity at, the mills. Coconut oil i s expressed in this country in about the same amounts, by and. large „ as those i n which it is imported from the Philippines. In. some years the imported oil leads in quantity; in other years, the manufactured. In 1933 the domestic product was far in the lead, totaling 351,000,000 pounds as against 284,000,000 for the Philippine commodity. The two combined, T w o ENT>S O F THE C O W 1
MARION E- DICE, National President, Alpha Chi Sigma THERE ARE t,\\o classes of men throughout society, the selfish and the unselfish. Ni umber One examines every opportunity from the standpoint o f what he himself may gain by it without effort: Number Two, of how it will increase his ability t o serve botîi his fellows and himself, even at the expense of greater personal effort. NTumber One is a hitch-hiker who could not exist without Number Two. Having joined, a professional organization, Number One eventually begins to croak a s follows: "What am I getting out of this that I did not enjoy already? I can read the journals in the library and attend meetings whenever I wish. Why should I pay dues? They represent nothing additional in return." The fact that be is enjoying professional advantages made possible only by the sacrifices of Number Two escapes him. H e rsees nothing to be gained b y paying dues except an opportunity to vote, serve on committees, hold office, etc.—and he is paying to do it! Xo Number One, h i s government, his employer, and his professional organizations are each a cow t o be milked. Moreover, he sees only one end o f the cow. Being reasonably sure Number Two will continue to feed her, he cries: "I'm paying for the feed, let somebody else feed her." The fact that the feeder pays too, seems to escape him, t>ut he is right there with the milk pail along with the others. 1
Reprinted from the ET&xagon., April, 1934.
CHEMISTRY
171
aggregating 635,000,000 pounds, brought the supply of coconut oil on the market to a figure much higher than in 1932 and closely approaching what might be considered a normal amount for American consumption. The following table shows importation and production in recent years: U. S. SUPPLIES OF COCONUT O I L (In millions of pounds) YEAR
DOMESTIC PRODUCTION
1929 1930 1931 1932 1933
352 353 303 264 351
IMPORTS
TOTAL 764 662 628 513 635
412 309 325 249 284
Linseed oil registered a very marked gain in output in 1933 over the preceding year, but the year's total is still separated b y a wide margin from the production averages of the years up t o 1929. The curve of production rose sharply over the second half of the year and the returns for the final quarter were larger than for any corresponding period since 1929. Production by quarters over the past five years was as follows : PRODUCTION O F LINSEED O I L (In thousands of pounds) QUAETER 1929 1930 1931 January—M arch 202,353 145,970 118,417 April-June 187,019 130,863 130,635 J uly-Sept ember 191,977 108,236 141,205 October—December 182,228 131,257 130,479 TOTAL. 763,577 516,326 520,736
1932 99,783 65,764 68,503 90,987 325,037
1933 79,595 79,035 113,413 133,906 405,94=9
Wholesale New York prices for linseed oil reached a higher monthly average in midsummer than they had known since 1930, the July figure of 10.8 cents comparing with 7.3 cents in January, 9.5 cents in December, and 9.3 cents in both January and February, 1934. The monthly average in 1932 was 6.3 cents, in 1931, 8.4 cents, and in 1930, 12.5 cents. PAINTS
Reports of sales of paint, varnish, and lacquer products from 588 establishments show a total for the year about 9 per cent i n advance of that for 1932. This marks the first upturn since 1929, and is consequently encouraging, although the trade is still far from normal, as the annual record for the last five years indicates : 1929, $435,102,000; 1930, $348,400,000; 1931, $278,442,000: 1932, $204,732,000; 1933, $222,761,000. For plastic paints, calcimines, and cold-water paints t h e U. S. Bureau of the Census keeps a running record of sales by months. The returns are supplied by 38 establishments which handle, among them t about 85 per cent of the total amounts of these goods marketed. The trade record last year as compared with earlier years is as follows : SALES
OP CALCIMINES,
PLASTIC PAINTS, PAINTS
AND COLD-WATER
Y/EAB
CALCIMINES
PLASTIC PAINTS
COLD-WATER PAISTTS
1930 1931 1932 1933
$1,758,000 1,587,000 1,220,000 1,578,000
$1,266,000 944,000 827,000 1,102,000
$952,000 916,000 649,000 735,000
Number Two considers life a partnership which requires giving, as well as taking. His code embraces the fraternal adage t h a t one gets from life in proportion to what one puts into i t . Early in his career, he casts about for ways to make his individual efforts more effective, and quite naturally seeks membership in organizations where he may work with other men of similar purposes and ambitions. I t is only in this way that worthwhile organizations have their beginning and are kept alive. Number Two pays dues for the privilege of working harder, while Number One jeers at his stupidity. Number Two climbs the tree and shakes down the coconuts which Number One grabs while comphmenting himself on his own smartness. Occasionally an entire local group of an organization is made up of Number Ones. With none among them to shake their tree, they call upon some vague thing they term the "national organization," little realizing they are but calling upon themselves, multiplied b y dozens of similar groups. When the coconuts still do not fall, they shout loudly that the organization is no good. They may disband, but one may be sure they will soon be found sitting expectantly under some other tree. There are too many Number Ones in Alpha Chi Sigma. This is a result of extending invitations to membership in the manner of selling tickets, instead of appealing to the desire t o serve others and contribute to the common good. Without that desire there can be no true professional spirit and such a man has no place in Alpha Chi Sigma, the AMERICAN CHEMICAL SOCIETY, or a n y
other professional organization.
