Personal incomes in last q u a r t e r were 1 2 % higher t h a n a year ago, t o t a l income lor 1950 h a v i n g t o p p e d $220 billion, compared with $ 2 0 6 billion in 1949. Apparently production of industrial chemicals in recent m o n t h s has been outpacing that for industrial production generally as will b e seen by the a c c o m p a n y ing graph. C h e m i c a l production is easily at a new all-time high a n d is close to the ceiling of t h e graph. Industrial p r o d u c tion as a whole w a s s o m e w h a t bogged down by severe snowstorms in November which hit particularly h a r d heavy industry, such as steel. As to chemicals November production was at a rate of 4 9 6 % of that for the base period of 1 9 3 5 - 3 9 , as against 4 8 8 r r in
BUSINESS
PROCESS INDUSTRIES' OUTLOOK Price freeze to Dec. 1 9 - J a n . 2 5 h i g h — m o r e rules later . . . Difficulties in f r e e z i n g such as f o r e i g n products . . . O t h e r methods for price stability outli led . . . Graphs on cellulose acetate plastics a n d p l a n t expenditures soar f r e e z e of is n o w u p o n u s . A c c o r d i n g t o the first r i d i n g s e a c h i n d i v i d u a l c o m p a n y and p e r s o n offering g o o d s a n d s e r v i c e s must roll b a c k p r i c e s t o n o h i g h e r t h a n h i s h i g h e s t p r i c e b e t w e e n D e c . 19. 1 9 5 0 , a n d Jan. 2 5 . 1 9 5 1 . It is i n t i m a t e d t h a t t h e first list oi r u l e s is m e r e l y t e m p o r a r y a n d s k e t c h y a n d t h a t ΟΡΑ will i m p r o v i s e n e w a n d s u p p l e m e n tary r u l e s a s t h e n e e d s b e c o m e a p p a r e n t It is i n t i m a t e d t h a t b l a n k e t price· niling> for e n t i r e i n d u s t r i e s m a y s u p e r s e d e r u l i n g s that s o far a p p l y t o i n d i v i d u a l s . M o r e o v e r , t h o s e i t e m s p r e v i o u s l y frozen by s p e c i a l o r d e r s u c h a s a u t o m o b i l e s a n d l e a t h e r w i l l s t a y frozen u n d e r t h e i r o w n s o c i a l nilings. Special regulations are b e i n g f o r m u l a t e d t o c u r b o p e r a t i o n s of black m a r k e t e e r s . A t t e m p t s will b e m a d e t o c o m p e n s a t e lor t h o s e c o n s c i e n t i o u s p r o d u c e r s w h o tried t o a b i d e b y p r e v i o u s v o l u n t a r y f r e e z e o r d e r s a n d w h o d i d n o t lift p r i c e s t o t h e e x t e n t of c o m p e t i t o r s . I n s o m e c a s e s e v e n m o r e s e v e r e r o l l b a c k s t h a n t h o s e generallyannounced m a y b e ordered later. T h e first r e a c t i o n a m o n g c h e m i c a l p r o d u c e r s is m i l d relief s i n c e t h e r o l l b a c k might have been m o r e severe say to some autumn date. 1 Ί^ΗΚ 1 9 5>1 1
q u a r t e r defense spending was $5 billion higher, at an annual rate, than in third quarter. I n the first two months of t h e fourth q u a r t e r book value of business inventories rose $3.6 billion in a seasonally adjusted basis, r e a c h i n g $60 billion at the e n d of November. Over half of this increase represented larger physical stocks — price advances accounting for remainder.
INDUSTRIAL CHEMICALS vs. INDUSTRIAL PRODUCTION BASE PERIOD? INDEX 1935-1939 = 1 0 0 500
400
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200
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The economic research department, C h a s e National Bank, outlines causes ol priée rises a n d a c t i o n n e c e s s a r y for p r i c e stability. A m o n g t h e causes a r e : cont i n u e d e x p a n s i o n of t h e m o n e y s u p p l y ; war s t i m u l u s t o d o m e s t i c d e m a n d for g o o d s by u s e of f u n d s a l r e a d y a v a i l a b l e ; foreign d e m a n d for A m e r i c a n goods; nearness t o capacity at present, m a k i n g it difficult t o e x p a n d f u r t h e r ; w a g e i n c r e a s e s in a d v a n c e o i p r o d u c t i v i t y a n d g o v e r n m e n t s u p p o r t of a g r i c u l t u r a l p r i c e s . T h e b a n k r e c o m m e n d s : a d o p t fiscal a n d credit policies t o m i n i m i z e b a n k credit expansion; r e d u c e consumer spendable income a n d encourage saving; increase i m p o r t s a n d l i m i t e x p o r t s of c e r t a i n e s s e n tial m a t e r i a l s ; f a c i l i t a t e p r o d u c t i o n b y a t t e n t i o n t o tax b u r d e n , s u p p l i e s , c o s t s , w o r k w e e k , s t r i k e s , e t c . ; te r » >'nate t h e r o u n d s of "wage i n c r e a s e s a n d iv-move s u p p o r t s for a g r i c u l t u r a l p r i c e s . C h a s e q u o t e s B u r e a u of L a b o r S t a t i s t i c s to s h o w t h a t s i n c e K o r e a t h e p r i c e i n dex o f 2 8 b a s i c c o m m o d i t i e s h a s c l i m b e d from 2 6 4 . 0 ( A u g u s t 1 9 3 9 e q u a l s 1 0 0 ) t o an a l l - t i m e p e a k o f 3 8 5 . 8 , o r 4 6 % . A m o n g the c o m m o d i t i e s w h i c h h a v e l e d t h e a d v a n c e , in o r d e r of s e v e r i t y , a r e : r u b b e r , tin, w o o l , h i d e s , l e a d , c o t t o n , a n d s t e e r s . S o m e i n d u s t r y facts o n b u s i n e s s a n d i n d u s t r y a r e g l e a n e d from t h e J a n u a r y Survey of Current Business. T h u s fourth 510
J949
J948
1947
CELLULOSE ACETATE PLASTICS
1950
MOTOR FUEL PRODUCTION
PRODUCTION. MOLDING AND EXTRUSION MATERIALS. SHEETS. RODS. AND TUBE. MILLIONS OF POUNDS •'/?
A l l TYPES. MILLIONS OF BARRELS
10 9 8 7
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PLANT EXPENDITURES BITUMINOUS COAL
A l l MANUFACTURING, INCLUDING EQUIPMENT, BILLIONS OF DOLLARS
PRODUCTION. MILLIONS O F SHORT TONS
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ÎHEMÎCÀi' AND ENGINEERING , NEWS Γ
C H E M I C A L
AND
E N G I N E E R I N G
NEWS
Οι tuber; for production as a whole November output was at 2 1 6 % as against 2 2 1 % for October. In b o t h cases there were substantial gains over the year b e fore; for the two Novembers it was 496% versus 417% in chemicals, 216% versus 174 r/ r for all manufacturing. Industrial chemicals, plus paints a n d rayon, make u p the classification, "chemi cals." in this compilation of the board of governors of the Federal Reserve System. Thus for chemicals as a w h o l e the Novem ber pace was 2 7 8 % , against 277% for October and 2 4 3 % for November 1949. This week two graphs break through the ceiling of the graphs, one of t h e m pertaining to production of cellulose ace tate plastics, which a m o u n t e d to 11.5 mil lion pounds in October, compared with 10.0 million in September a n d 9.5 million in October 1949. T h e breakdown for October follows: sheets u n d e r 0.003 gage, 1.2 million pounds; sheets, 0.003 gage and over, 1.2 million; other sheets, plus rods and tubes, 504,500 pounds; molding and extrusion materials, 8.6 million pounds. Sales in October did not quite keep p a c e with production, having b e e n 11.4 million pounds. Motor fuel production seems to h a v e reached a plateau for t h e time being at least. T h e postwar high h a d been 92.7 million barrels in August 1950 which fell to 87.5 million in September, rising to 90.8 million in October, comparing with 83.2 million barrels in October 1949. This high production has been in step with record automobile production in 1950.
/ίεψ?teste,ακ&ι&ίέ/' NEW GILBARC0 *~ INSTRUMENT HOUSINGS offer low-cost solution to housing Irtn for petroleum and chemical dustries
Feature complete ptotection and accessibility 1. Die-formed of auto body steel. 2. Completely weatherproofed, insulated. 3. Available with 1 1 " square glass windows. 4. For wall mounting, horizontal pipe or pedestal pipe mounting. 5. Can be disassembled quickly without tools. 6. Pipe clamps available for instrument installation. (Made in four sizes.) MULTI-PURPOSE U S E F U L N E S S . . . G i l b a r c o
c a b i n e t s a r e used for h o u s i n g p r o c e s s control instruments, outdoor control v a l v e s , s m a l l v e r t i c a l p u m p s , fire b l a n kets, weather stations, outdoor interp l a n t p h o n e s , b u l k t e r m i n a l g-aug-es, o t h ^ r i n d u s t r i a l housing: n e e d s .
C H A R T C R E D I T S : Chemical Production —Federal Reserve Board; Cellulose Ace tate—Tariff Commission; Motor Fuel— Survey of Current Business; Bituminous Coal—V. S. Bureau of Mines; Pfont Ex penditures—Survey of Current Business. V O L U M E
2 9,
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GILBERT AND BARKER MANUFACTURING CO. \. West Sprin gf ie Id, Μ α s s.
R ugg les- Co le s
Aviation Gasoline O u t p u t to Soar W i t h defense production accelerated production of aviation gasoline will be c o m e a larger proportion of motor fuel. This has risen from 2.7 million barrels in F e b r u a r y to 5.1 million in September 1950. No nation can become great industrially without adequate coal deposits. Hence graphs on bituminous coal production form one of the most important barometers of industry. It is now possible to complete the graph for 1950. T h e peak for the year was 53.1 million short tons in March, with a secondary peak in December at 51.0 million. In D e c e m b e r 1949 output had been only 36.3 million tons. Plant expenditures for all manufactur ing and equipment are naturally barome-trie. T h e figures on which t h e accom p a n y i n g graph is based for fourth quarter 1950 are "anticipated expenditures" and not yet checked for actual fulfillment, the source being the U. S. D e p a r t m e n t of C o m m e r c e , Office of Business Economics, and Securities and Exchange Commis sion. T h u s fourth quarter is estimated at $2.5 billion against $2.1 billion for third q u a r t e r . Likewise first quarter 1951 ie estimated at $2.2"billion.
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Double and single-shell continuous rotary dryers in ^cven distinct types -designed tor dirrcr, indirect hot air and steam heat. Available in size^ from 3 ' to 10' in diameter—from M> ro 100' long. Write for Bulletin 16-D-41 on the entire Rugglcs-Colo Dryer, Kiln and Cooler une. ROTARY KILNS · ROTARY COOLERS
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For cooling hot materials after high teiu por;» t ure drying or calcination. Available in three types* : air cooled, water spray cooled, and senu-sufc>nierged From 3 ' to 10' in diameter, shell lengths to suit.
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YORK, PENNSYLVANIA-240 Arch St. Main Office and Works NEW YORK 17 · SAN FRANCISCO 11 · CHICAGO 6 · HIBBING, MINN. · 122 E. 42nd St. 24 California St. 205 W. Wacker Dr. 2016 First Ave.
FEBRUARY
5,
1951
TORONTO 1 200 Bay St. 511
