FINANCE: Up goes the mark - C&EN Global Enterprise (ACS

May 17, 1971 - U.S. chemical makers have so far experienced no adverse effects from the recent currency turmoil that has seen an effective upward reva...
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Chemical world This week neers in fiscal 1970 jumped 30.1% above fiscal 1969 levels, and engineers as a group accounted for about 70% of all science and engineering immigrants. Mechanical engineers made up the largest group of immigrant engineers (1618), and other major groups included civil engineers (1509) and electrical engineers (1464). The number of natural science immigrants climbed 25.5% to 3264 in fiscal 1970 and accounted for about 25% of all immigrant scientists and engineers in both fiscal 1969 and fiscal 1970. Chemists made up the largest group (1495) of fiscal 1970's immigrant natural scientists, and other major groups included physicists (401), biologists (388), and agricultural scientists (380). NSF notes that more than half of the 13,337 immigrant scientists and engineers admitted to the U.S. in fiscal 1970 planned to live in only four states: 2582 in New York, 2361 in California, 1033 in New Jersey, and 1002 in Illinois. The NSF figures are based on a preliminary analysis of data from the Justice Department's Immigration and Naturalization Service. NSF will publish a full report on "Scientists, Engineers, and Physicians from Abroad, Fiscal Year 1970" later this year.

is that the government, in the wake of the present financial crisis, may impose exchange controls on the movement of money. Such a decision would tremendously limit foreign loans and investment outside West Germany. CHEMICAL BOND:

Delocalized sigma electrons

Clear evidence that sigma electrons are delocalized like pi electrons in chemical bonds has been found by West German scientists at the University of Frankfurt/Main in studying methylpolysilanes with photoelectron spectroscopy. Investigating the bond-bond interaction in peralkylated polysilanes, Prof. Hans Bank of New York's Don Wheaton Bock, head of the Institute for InU.K. pound was devalued in fall organic Chemistry, and Walther 1967. Du Pont and Union Carbide Ensslin have proved that sigma both say that the full effect of the electrons, which are responsible currency changes can't be measured for the chemical bonding between yet, but Dow and W. R. Grace ex- silicon atoms, are completely delocalized. pect some gains. Although sigma derealization Colin Scouller, director of economic affairs at the U.K. Chemical generally has long been accepted by Industries Association, points out theoretical chemists, real evidence that West German companies may was only achieved by means of lownot be able to absorb the effects on energy photoelectron spectroscopy, product prices of the revaluation. a method which permits measureThis will yield an advantage to U.K. ment of ionization potentials of most of the valency electrons in companies in competing markets. West German chemical makers molecules and thus the total energy were hurt by the 1969 revaluation differences between the ground of the marlc and devaluation of state and ionized states of moleFINANCE: France's franc. This eroded the cules. Up goes the mark Derealization is particularly competitive power of West German U.S. chemical makers have so far chemicals in the European export clear in the case of organosilicon experienced no adverse effects from market. Earnings fell sharply last compounds because their photothe recent currency turmoil that has year as chemical exports grew electron spectra can easily be exseen an effective upward revalua- only 8%, compared with 17% in plained by a simple molecular ortion of the West German deutsche 1969. The further revaluation will bital model, which predicts the mark and of some other European mean that West German chemicals splitting of energy levels in a molecurrencies relative to the U.S. dol- will face stiffening competition even cule according to the number of bonds and the molecular structure. lar. In fact, they are looking for in the home market. some eventual advantages, as are The West German chemical indus- Furthermore, the application of U.K. and French chemical firms. try is also faced with a dramatic Koopmans' theorem—relating ionBut the West German chemical explosion of pay-rise demands. The ization potential with electron levindustry is far less sanguine. It sees industry's total wages rose 22% last els—indicates that the radical catFarbwerke ionic states of linear, branched, the revaluation as bringing some un- year, according to welcome export problems that will Hoechst president Rolf Sammet. and cyclic methylpolysilanes are compound its already serious diffi- This year chemical workers are ask- comparably stabilized. Also, the culties with spiraling wage costs ing for a 12 to 15% wage increase, influence of antibonding molecular and sharply declining earnings. and companies are offering only 5%. orbitals of suitable symmetry and a bonding contribution from unocThe currency changes will tend to No compromise is in view. make West German exports more ex"Should the mark be revalued by cupied silicon orbitals of pi sympensive and imports less expensive. 4 to 5%, and unions get what they metry are both negligible. ThereDon Wheaton, chemicals special- want, 1971 earnings will be com- fore, bonding between silicon ist at the Bank of New York, ex- pletely wiped out," says Farbenfab- atoms is explainable in terms of deplains that U.S. chemical companies riken Bayer's finance manager localized sigma electrons. The Frankfurt team started inwith funds abroad "had them in the Hanns Gierlichs. Most companies right place" when the revaluations are already warning that they may vestigating molecular energy levels of inorganic and organometallic came. They were not caught short cut dividends sharply in 1971. What really horrifies West Ger- compounds using photoelectron holding currencies that lost in value, as were some companies when the man chemical companies, however, spectroscopy in 1969. The scien10 C&EN MAY 17, 1971