CHEMICAL AND ENGINEERING
NEWS W A L T E R J. M U R P H Y , Editor
Cantraitinq
thv
Mnrhets
J. HE recent announcement of the Calco Chemi cal Division of the American Cyan amid Co. that it will discontinue sales to firms or individuals who divert goods into the "black market'' is likely to be followed by similar statements from other manufacturers of dyes and industrial chemi cals. It is common knowledge that a sizable "black market" has developed in a wide variety of chemical items now in short demand. Such con ditions can only exist when consumers deliber ately order more than their manufacturing re quirements and divert the surplus into resale channels—of course, a t a handsome profit. The present situation is not unlike the one that pre vailed in 1014-18, although the tonnages chang ing hands now via "black market" operations are smaller for the reason t h a t producers are much closer t o the sales picture than they were prior to the outbreak of World War I. Chemical manufacturers generally are in a good position t o police markets because most of the r business today and for years past has been directly with actual consumers. Producers know the legitimate needs of their customers and naturally will view with suspicion requests for additional tonnages. A mere glance at the price curve for chemicals from 1914 to date is quite illuminating. With the outbreak of World W a r I prices soared to almost unbelievable heights and our own war effort in 1917-18 was hampered b y the specula tive aspects of the chemical markets. Fortu nately these conditions were not repeated in the years just prior to our entrance into World War II because manufacturers enforced allocations on a voluntary basis long before government control was placed in effect. Naturally "black markets" can exist only * when serious shortages prevail. Abnormal price rises will not bring about immediate increases in production for the reason t h a t manufacturers are now operating at capacity. Furthermore, it is ob\'ious t h a t when foreign productive facilities are again operating, export demand, which is largely causing the present flurry, will decline. At the moment considerable agitation prevails for a return of government dictation on alloca-
tions and prices. If such a step is taken, the chemical industry most certainly will be included. The need for government action can be eliminated if manufacturers will take a firm stand against the consumer who plays in trie so-called black market. Producers and t h e dealers who perform necessary services in the field of merchandising of chemicals must exert the necessary influence on a voluntary basis. T h e alternative is a return of ΟΡΑ and WPB. T h e Johnny-come-lately merchandiser looking for quick profits, equipped with a desk and a telephone or two, contributes only to further price-spiraling. The
Semutmn9*
Greetinfjn
J_ HE holiday season is a most appropriate time for the editorial staff responsible for CHEMICAL AND ENGINEERING JNTEWS, Analytical Chemistry, and Industrial ^and Engineering Chemistry to express their appreciation t o authors, reviewers, and members of the advisory boards for the splendid spirit of cooperation which makes pos sible three journals devoted to the fields of indus trial chemistry and chemical engineering. In cluded in our thoughts are t h e loyal readers whom we serve and to them we sa}' t h a t it is our firm intention to continue to improve the publications commensurate with the resources placed a t our disposal by a sympathetic and understanding board of directors. If your editor m a y be pardoned for interjecting a personal word or two h e would do so simply to commend the work of t h e staff. A publication operation of the size now centered in Washington cannot b e the work of one individual. Team play is vital and I believe tho publications them selves demonstrate the high degree of cooperation t h a t prevails in t h e headquarters and in our branch editorial offices and in the office of the ACS News Service. It is a n honor and a privilege to serve the members of the AMERICAN CHEMICAL SOCIETY and I believe t h a t each a n d every member of the staff joins me in this statement. T o all a joyous Christmas, and m a y the NTew Year bring to a troubled world peace and security.
