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INDUSTRIAL A N D ENGINEERING CHEMISTRY
Fascist vs. D e m o c r a t i c Chemical Industry 1 UNDAMENTALLY a democratic country Frecognizes the right of free enterprise and a freedom of development that is the result of thousands of years of struggle on the part of the individual for an unprovement of the environment in which he exists. The free citizen is ever endeavoring to surround himself with comforts, to improve his mind and skill, to obtain more leisure, and to obtain a right to individuality so far as he does not trespass upon his neighbor. The Fascist form of government is exactly the reverse. The individual gives up comforts, he must yield his leisure, he must lose his independence, all for the benefit of the state. The Fascist state generally is headed by a selfappointed group of individuals who profit at the expense of the sacrifices of the individual. They do not necessarily have any virtue not possessed by the average, other than the ability to join forces and by group strength elevate themselves into superior position. They are not necessarily endowed with superior intelligence or special training. The Fascist state is the receiver of a bankrupt nation or one about to fall into such. We might compare it with an unsuccessful business. When our business goes bad the court steps in and appoints a receiver who is supposed to be equipped to cope with the problem of reorganiza tion and is aided and assisted by the police powers of the state. In the case of the Fascist state a group of individuals select themselves as receivers by virtue of organizing ability, build their own police powers, and make their own regu lations. It, therefore, is self-evident that the development of an industry such as ours under the two conditions Democracy vs. Fascism should be along widely different lines. Whatever the cause of the bankruptcy, be it moral decline, inefficient administration, or engendered by adverse foreign conditions, it seems to be the popular method today to turn the clock backward and attempt re covery by methods long abandoned in the development of the democracy. The right of the individual becomes greatly circum scribed. The corporation, the branch of industry, in fact the whole of industry becomes a servant of the state and no longer exercises any right of self-deter mination. C h e m i c a l I n d u s t r y a t t h e Basis o f Industrial Development Our industry is at the basis of prac tically all industrial development. It, therefore, is the first to be aosorbed by the Fascist state and the first to be reorganized. The state finds itself in difficulties, primarily with the problems of feeding and clothing itself. An empty stomach is the usual cause of most social disturbance, and that means trouble t o any government. Research is turned to the problem of ensuring a regular supply of food and clothing. This does not necessarily mean that bread or clothes are directly pushed into the hands of the individual. These things can be pur chased outside the state if means of pay ment can be provided. Therefore, since relatively few primary foods can come out of the research laboratory, some attention must be paid to maintenance of industry, commerce, and trade. From the clothing standpoint our laboratories ι Presented before the luncheon of the Division of Industrial and Engineering Chemistry at the Baltimore Meeting of the American Chemical Society, April 5. 1939.
W· 5 . Landis A m e r i c a n C y a n a m i d Co., 30 R o c k e f e l l e r Plaza, New York, Ν . Υ . have succeeded in converting m a n y raw materials which not s o m a n y years ago were not recognized a s potential sources of textiles. I n this field our industry has had a very considerable start on t h e attack of t h e problem. Regimen nation There is finally a third item, t h a t of self-defense, which enters seriously into t h e activity of the Fascist state. I t usually overemphasizes the fact t h a t its difficulties are d u e to foreign aggression, which must be repelled. I t is b u t a short step t o adopting for itself the principle of aggression, a n d going o u t t o capture those materials and those m a r k e t s denied it. W e must not forget t h a t t h e state maintains itself through rigid police control which of itself demands the tools of aggression. T h e Fascist s t a t e enforces a rigid regi mentation of its people, forcing acceptance of the products of its industr}\ No longer does the individual hiave choice in his acquisitions of materials necessary for his existence o r his comfort. He m u s t accept what t h e state prescribes for him. N o longer does he h.ave available the multitude of services that we associate with t h e free market and a freedom of purchase. H e takes "the product as is under the specifications set by the state, and makes the best of it. No longer h a s he a free choice of his own existence. The state relieves him of the responsibility of choice of profession, of the degree of education or training t h a t h e may acquire. H e becomes a slave under t h e system, a n d if it should happen t h a t his choice of livelihood is not within t h e program of t h e state, he must change his occupation. I t m a y be possible t o conceive of such a wise organization and such capable administration of such, a state, t h a t the average citizen may b e b e t t e r off, t h a t he m a y acquire more security, be sur rounded with more comforts, be better taken care of, t h a n if free to pursue his independent course. However, in such examples as we have before us, he comes very far from t h i s measure of perfection. A wholly new viewpoint must be ac cepted by t h e corporate administration of the industry. Finance is under rigid control. Surpluses n o longer can be devised by t h e individual officers of the corporation. Permits must be obtained for extensions and expansions, or these m a y be prescribed. In general, they must fit into t h e program of t h e state, and in the case of oar industry, for example, toward the production of sub stitutes of primary necessity. T h e first difficulty here is t h a t the outside world m a y not like t h e specifications of this substitute material a n d m a y refuse to accept the product. N u m e r o u s examples of this are happening t o d a y . Our old ideas of costs of production must be thrown out o f t h e window. In t h e t r u e Fascist s t a t e various devious methods are used to solve this particular problem, and we find many curious ex amples of production t h a t we a r e morally certain cost m a n y times t h a t of t h e de livered imported article, y e t nevertheless enormous expansions are forced upon industry. T h e monetary u n i t of measure t o which one h a s long been accustomed
VOL. 17, N O . 8
n o longer exists in these Fascist countries a n d o u r determinations of these relative costs cannot ordinarily be m a d e b y t h e usual arithmetical compilation, b u t when we translate into t r u e costs b y several of t h e various m e t h o d s t h a t are available we reach such fantastic relationships a s mentioned above. A t least we can accept t h e m as qualitatively of t h e order in dicated. Our industry has always striven for better things, more serviceable goods, more efficient production. All of these are o u t in t h e Fascist country. T h e customer is obligated to t a k e w h a t t h e s t a t e decrees, no m a t t e r how poor t h e service it yields or how poorly a d a p t e d t o the purposes for which it was intended. This imposes quite a new idea upon management. E v e n the idea of location m u s t be amended. Political a n d military factors have much more p a r t in t h e determination t h a n economics. I n d u s t r y m a y be forced t o move a n d relocate, t h e penalty for refusal being destruction, with s t a t e competition as corollary. Products of F a s c i s m W h a t is coming o u t of t h e Fascist countries? W e can include Russia here because there seems t o be little or no difference as far as t h e operations a r e concerned between t h a t country a n d G e r m a n y and Italy, except t h a t t h e s t a t e owns t h e tools of production a n d dis tribution in Russia, whereas G e r m a n y a n d I t a l y still have some semblance of t h e right of private property. I t is t r u e t h a t t h e Russians have built a large industrial plant which t h e y have found much difficulty in p u t t i n g into operation, a n d are producing a gross insufficiency of quality goods. T h e y h a v e n o t been forced t o t h e use of substitutes to a n y thing like t h e extent of t h e other t w o countries, for t h e ordinary raw materials are largely available. F r o m a purely m a n a g e m e n t point of view t h e efficiency of t h e Russian machine is n o t very high. T h e products of t h e research laboratory are relatively mediocre. ITALY. I n I t a l y t h e r e h a v e been some marked advances over t h e earlier in dustrial history. U n d e r s t a t e adminis tration, direction, a n d force, factories h a v e been erected t o produce materials formerly imported. Obsolete textile mills have been supplanted b y modernized ones. Operations h a v e been forced b y rigid discipline of t h e population, a n d in general t h e sacrifices h a v e n o t been too great for t h e benefits derived. On t h e other hand, one cannot b u t recognize t h a t production falls far short of bringing t h a t country u p t o t h e s t a n d a r d of living in the democratic countries a n d t h e price paid for such improvements a s have been m a d e , has been heavy. I t m a y be a top-heavy structure t h a t even t h e s t a t e cannot bolster a n d prevent from collapse. GERMANY. I n G e r m a n y , we have here t h e Fascist principles applied t o t h e n t h degree. A host of synthetic textiles h a v e appeared, since t h i s country is neither a producer of c o t t o n nor of wool, a n d h a s no gold or foreign exchange with which t o purchase these commodities in t h e world markets. Some of t h e prod ucts are not a t all a t t r a c t i v e , others h a v e been dressed a n d d y e d t o produce a n extremely pleasing appearance b u t lack serviceability. Synthetic rubber is being produced on a large scale a n d carbon black t o go with it. B o t h cost m a n y times, in t e r m s of any calculations we m i g h t m a k e , w h a t old standbys cost delivered a t t h e ports. Undoubtedly a n d in t i m e , some actually valuable chemical achievement will be realized along these lines, b u t t h e best
A P R I L 20, 1939 contribution will be a by-product that will enable the world to improve the natural products, which for a long time t o come will be lower in cost. Synthetic oils are being produced up t o nearly 2,000,000 tons a year, and from them are coming derivatives useful in our chemical industry, but t o date these substitutes are not up to the natural products they shall replace and with which we are so familiar. The soap is not so effective. The cooking fats have yet t o be usable. T h e shortage of metals has directed attention to the plastics, and there is enormous activity in this field. I know of nothing particularly new, but that is not t o be taken as a full measure of the position. In our country the plastics and coatings industries are in a continuous state of change and it is not easy to keep up with developments. Consequently, one can be excused for not knowing of the very recent developments abroad. In general, the European plastics industry is not so highly developed as our own, nor is the quality of their products equal to what we have become accustomed t o here. On the other hand, through economic pressure they are undoubtedly using some of these materials in certain fields to a much greater extent than we are. The lack of purchasing power for foreign waxes and gums has contributed to an extraordinary development of new coatings based upon synthetic products. A by-product of all this development is the pronounced shortage of skilled chemical help—a shortage of anywhere from 20,000 to 30,000 chemists in Germany. We must remember that political decree has eliminated a very large number of skilled and serviceable chemical talent. This, in part, contributes to the shortage. Then, again, there has been an enormous drop in attendance at the technical high schools and the universities. Indications are that enrollment during the present semester is not greatly in excess of about one third of normal. In consequence, decrees have been issued reducing the period of training, be it apprenticeship or academic, and which from our own experience seems a step backward. Then, again, we must remember that the state itself calls for a very material contribution from the individual in the form of attendance at political meetings, rallies, parades, etc., which in turn shortens the hours of application to more serious work. I gained the impression, hardly substantiated by definite measurement, that the quality of the training and education is suffering from these several influences, which in time will have a pronounced effect upon the industry. Another factor is that they have drawn heavily upon their neighbors for technical assistance, and in time this will return to its home or distribute itself throughout the world, carrying with it any benefits in experience acquired in German service. One must not ne misled b y the propaganda so skillfully spread throughout the world of the busy industries, shortage of labor, and the freedom from industrial dispute. I t is true that everyone is employed who is able to work, but it is not necessarily a consequence that such labor is producing a type of wealth that will return an income to the state. Under parallel conditions to those existing in t h e democratic countries, there would be much unemployment in Germany. This, however, has been taken up by made work on the part of the government. Undoubtedly some of this, such as road building, will be of great future benefit. Then there is the enormous activity in armament, involving the construction of works of military importance such as
N E W S EDITION flying fields, barracks, military storehouses, and aviation and army schools. This is hardly activity that will return anything to t h e state in the way of taxes or profits. Further, there is a huge construction program incident to the general rebuilding of t h e cities. Enormous areas are being cleared of existing buildings to be replaced by new government structures. All of this calls for materials as well as skilled labor, but it profits little to tear down a good modern office structure and replace it by a nonincome-producing government building. This is going on to an almost unbelievable extent, and results in activity which spreads throughout industry. With everybody employed and drawing wages, consumption goods are in demand. The construction programs call for large quantities of material which keep the factories going. It is a gigantic example of everybody taking in the neighbor's washing. Much of this work is not done at high efficiency, for labor is called to a n almost unbelievable extent to service of the state in the form of parades, rallies, and public functions. The planning has been on such a colossal scale and with the usual results of such excess that particular materials critically needed as the work proceeds are not available and great projects are tied up for an indefinite period because of this lack of coordination. G e n e r a l Economic S i t u a t i o n What the outcome will be is very difficult to say. 1 am rath*-r impressed that the general economic situation is deteriorating steadily. I can see no improvement in sight. The recent advances t o the East have undoubtedly improved the situation in some respects, but if a true balance sheet could be drawn up it would be found that the liabilities exceed the assets acquired. I, therefore, can only foresee more aggression, both military and commercial, and general war in Europe can be averted only when the Fascist countries adopt a very different policy, bringing back some of the confidence and reepect of the rest of the world, and t h e world in turn permits them some measure of foreign trade to acquire the necessary foodstuffs and lacking raw materials. The present situation cannot endure indefinitely, in fact very long into the future.
283 Monograph Review
W be reviewed
Broadcast
E BELIEVE t h e first monograph of the
AMERICAN
CHEMICAL
SOCIETY
to
in a broadcast is "The Properties of Glass" by George W. Morey, from the All India Radio, Madras, India, on March 5, at 9:45 P. M. This review was done by Sir C. V. Raman and was a masterful piece of work. His concluding paragraph follows: I have said enough to show that Mr. Morey's book is a most scholarly and valuable publication, which fully sustains the reputation of the series in which it has been published. It is not an exciting book and, indeed, this could scarcely be hoped for in a technical publication of this kind. The lesson which it brings to the reader is that the true path to success in industry is through patient labour guided and sustained by the spirit of scientific research, and not through haphazard and hasty efforts. Industrial
Utilization Products
of
Farm
CIENTIFIC study of new uses for farm S products has led to important industrial developments, but in comparison to the need and the opportunities the surface has barely been scratched, according to a report submitted to Congress by the United States Department of Agriculture. Prepared by a committee headed by H. T. Herrick, the report represents a survey of present scientific activities in this field, and outlines the program of research for the four Regional Research Laboratories which the department is establishing, to search for new and wider industrial outlets for farm products. Upwards of 1300 laboratories throughout the United States were visited by investigators to obtain material for the survey. Developments in rayon, plastics, insulating board, motor fuels, and new paints, varnishes, and lacquers are the forerunners of many possible new industries, the survey revealed. Laminating Paper with Transparent Cellulose Acetate HE process of laminating paper with transparent cellulose acetate sheeting, T developed several years ago as a preservative measure by the National Bureau of Standards, has come into considerable use since the first application of the process to the documentary field b y the National Archives of the United States. The sheeting is applied with heat and pressure, no adhesive being used, and a homogeneous unit is obtained as the cellulose sheeting is actually forced into the paper.
Snapped at the luncheon o£ t h e D i v i s i o n o£ I n d u s t r i a l a n d Engineeri n g CHomistry
