BUSINESS
PROCESS INDUSTRIES* OUTLOOK Inflation warnings sounded from three directions . . . "Most frightful inflation ever known" . . . Must pay taxes or buy bonds . . . Plant expenditures new top npHERE is nothing to fear except fear -*• itself," said the late President Roose velt at an inspired moment during one of the World War II crises. Unfortunately, it would seem that the United States, and the world, have not yet attained that t'topian attitude where aJI minds and souls are serene. Two outstanding fears still grip the nation, it became strikingly evident the past week—the fear of trie atomic bomb and of inflation—two fears tliat seem to he with us perpetually. But time work of the bomb is deflationary, the -world has learned to its sorrow. During the week at least three spokes men held up hands in horror at inflation prospects: Dr. Alfred P. Ha&kc, economist, General Motors Corp.; a writer for the Guaranty Trust Co., New fork; and John W. Snyder, Secretary of tlve Treasury. $11 Billion Savings Are Dangerous Dr. Haake warned that the nation is headed for "the most frightfmxl inflation we have ever known" unless firm measures are taken immediately. True chief infla tionary threat, he said, is tfie $11 billion of accumulated savings of the A-meriean people. We must either ta_x away those savings or get the people to Invest them in government bonds, he said The great bulk of savings is held by persons with incomes of $LO00 to $7500 a year, he continued; abou* 85%? of the potential additional tax source lies in the less than $6000 bracket. H e advocated withdrawals of savings from the market, elimination of $5 billion federal projects, and greater productivity per ^worker. The Guaranty Trust Co. "survey" said that inflation is the neglect&d side of de fense and constitutes a threat to security. "We insist on maintaining mass consumer income and government expenditures for nondefense purposes at record levels, though our officials proclaim that goods and services must be curtailed. We try to control by superficial price control. We upset world economies by our policies abroad." Secretary Snyder declared that despite recent falls m commodity prices the men ace of inflation is greater th*an ever. We are to see an increasing impact of military production on the civilian economy, he said. Mr. Snyder advocated holding unneces sary borrowing to a minimum» commenting that total bank loans for the year» ended June 30, showed a record increase of $12 billion. Switching to another topic, a survey of the nation by the New York Times re vealed opinion that austerity "will not pinch
4220
for another SLX months to a year. Sometime between, buyers may find it difficult to buy new automobiles, washing machines, and vacuum cleaners and other durable consumer goods. A canvass of government officials shows belief in a gain of two million nonfarm
workers in the next 12 or 18 months. A not-too-pleasant thought was that ex pressed by Paul S. Willis, president, Gro cery Manufacturers of America, Inc., to the effect that we are now paying more in taxes than we spend for food or as $57 billion in taxes versus $52.5 billion for food. The leading accompanying graph in volves a comparison of trends of prices among chemicals and allied products with all wholesale commodities. Just now the two would appear to be going their sepa rate ways. Thus, to paraphrase an old Scotch song, chemicals would seem to be taking the "high road" and commodities generally the "low road." Yet, as the graph indi-
CHEMICAL PRICES vs. A l t WHOLESALE COMMODITIES
WHOLESALE COMMODITIES
/ BASE YEAR INDEX 1926^100 ' CHEMICAL PRICES j CHEMICAL PRICES — 1 (INCLUDES ALLIED PRODUCTS)
ALL WHOLESALE J COMMODITIES . . .
/y^V
14&
J 9
180
V
\
/ * 130
J7/J· / it
170
1
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//
\ ^\.
120
160
110
150
1
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1
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1
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1949
1
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L,.,J„, i, , I.-.J ,.,l
1951
1950
PAPER. UNFILLED ORDERS
TEXTILE FIBER CONSUMPTION
EXCLUDING BUILDING PAPER, NEWSPRINT, AND PAPERBOARD, THOUSANDS OF SHORT TONS 1050 Γ
700
5C
&S0
RAYON, SILK, W O O L , A N D COTTON, MILLIONS O F POUNDS
850
«400
7i;
550
650
5O0
J50
450
450
400
pysfP
350
350
l
300 1950
1 1 - 1 1 I. I
I
I...
1950
1951
195»
PLANT EXPENDITURES
LEAD PRODUCTION
ALL MANUFACTURING, INCLUDING EQUIPMENT,
REFINED, THOUSANDS OF SHORT TONS
BILLIONS OF DOLLARS
30
55
I
50
•I •
7B
1
45
76
40
I
20
1 ,8
35 30
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,
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1951
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CHEMICAL AND ENGINEERING NEWS
CHEMICAL
AND
ENGINEERING
NEWS
cates, over the long pull the two usually run parallel. In the chemicals group the July index figure of 139.4 (1926 = 100) advanced to 140.0 in August, while the average for the first half of September was 140.15. For all commodities there was a steady decline over this period: July 179.5, August 177.1, and first half of September 176.8. The chemical graph is rising largely because of advances in the more temperamental items—those which were falling sharply during the summer, such as oils, fats and derivatives, and quicksilver. Moreover, in some of the steadier chemical commodities certain manufacturers, caught by the OPS price freeze with prices at unprofitable levels, have persuaded OPS to allow them to mark certain prices higher. The "picket fence" graph is the only one this week to go through the "ceiling/' This applies to plant expenditures, including equipment, for all manufacturing. In view of our ambitious defense plans it is not surprising that new high records have been made. Compiled by quarters, expenditures for first quarter had been $2.5 billion, rising to $3.1 billion in second and to $3.7 billion in third quarter, while estimates for fourth quarter are $3.6 billion. In third quarter 1950 expenditures had been $2.1 billion. The graph at the right, like the teeth of a badly worn saw, reveals that March was the peak for the year to date as concerns textile fiber consumption, at 648.9 million pounds. For following months available the figures are: April 557.3 million, May 623.3, and June 573.3, comparing with a 1950 monthly average of 551.5 million pounds. Wool Use Lowest Since 1949 Consumption of the four fibers in June was: rayon, 109.5 million pounds; silk, 200,000 pounds; wool, 42.9 million pounds; cotton, 420.7 million pounds. Wool consumption was the lowest since 1949 when the monthly average was 42.6 million. Unfilled orders for paper reached a new high for the year to date in July at 1,035,765 short tons, comparing with the previous high in May of 988,500 tons; in June this stood at 984,685 tons. A feature of the paper and board situation is that per capita consumption reached new heights the first six months despite the large increase in population, or 414.6 pounds yearly, and is 35% over the 1941 high. Lead production took a sad slump in August to 31,756 tons, lowest for several years, comparing with 44,864 tons in July and 47,242 tons in August 1950. The strike that started Aug. 27 had some influence. CHART CREDITS: Chemical Prices— U. S. Department of Labor; Paper—American Paper and Pulp Association; Plant Expenditures—Department of Commerce; Lead—American Bureau of Metal Statistics; Textile Fibers—Textile Economics Bureau, Inc. VOLUME
2 9, N O .
NEWARK I Metallic FILTER
CLOTHS
M*Γ'>
M3 5/ Ç
? S s 2 s'. r, l U ^
V
Enlargements 4X
Here are five different weaves of Newark MetaKic Filter Cloths. All different in the arrangement o f the strands; hence different also in their functioning. Study the shape of the solids in your solution being filtered. That's fust as important as the size, if you want clarity of filtrate. Then write us fully about the solids and we'll be glad to recommend the weave of the cloth that will " s t o p " them. Many malleable metals are still available so, if necessary, we can probably supply you with a material that will also withstand highly corrosive conditions. When writing, also give solution characterisiics. All Newark Filter Cloths are woven in our own plant, on our own looms, b y our own skilled weavers. Our entire line of Filter Cloths, Wire Mesh and Space Cloth, Sieves, "End-Shak" Testing Units and other Newark Products ore described fully In our new Catalog D. Send for a copy.
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M e work H I ire Cloth COMPANY 351 VERONA AVENUE · NEWARK 4, NEW JERSEY
Philadelphia 3, Penna. San Francisée, Calif. 1311 Widener Bldg. 3100 19tti St.
41 » » OCTOBER
8,
1951
Chicago, III. 20 N. Wacker Or.
New Orleans, la. los Angeles, Calif. Houston. Texas 520 Maritime Bltfg. 1400 Sa. Alameda St. P. 0. Box 1970
4221
