BUSINESS
PROCESS
INDUSTRIES'
OUTLOOK
Several shocks received b y A m e r i c a n p e o p l e to stimulate industrial cooperation . . . Bradley calls U. S. v i r t u a l l y defenseless . . . Cobalt cut 7 0 % to civilians . . . . C o p p e r to be rationed severely . . . Textiles plentiful
T T is difficult for many industrialists to •*• understand why such drastic cuts are being made in certain basic materials allowed civilians, such as the 70% cut in cobalt. However, die American people receive a shock periodically these days which makes clear the need for such drastic action. The latest shock was the statement by Gen. Omar Bradley, chairman, Joint Chiefs of Staff, that practically all of our armed forces and equipment have been sent to Korea and other places in the Far East, leaving the United States practically defenseless. Other previous shocks were the many early reverses suffered by American troops in Korea because of improper fighting equipment and a condition of "too little and too late." A more recent shock was the discovery that Chinese Communists were fighting in Northern Korea. Industrial America Is Aroused And Ready Fortunately for the American people since the days of Paul Revere and Lexington and Concord, they rally fast into a mighty, overpowering effort, once the common danger is realized. Though several instances of selfishness and grumbling come to the surface during times of national emergency such as this, a powerful spirit of cooperation soon emerges. Producers are now giving themselves whole-heartedly to the task of providing the military with sufficient materials, parts, and finished ordnance. As to the recent cobalt NPA order, this metal is used in magnets in radar and signal equipment; as an important alloying element in steel that must endure high temperatures, such as in jet engines; also in high speed steels for cutting. The National Production Authority has so far confined its official quota orders to metals, but will doubtless soon turn to chemicals, many of which, like sulfur, are already being rationed by producers themselves. Since there are more chemicals than metals—hence more items to become scarce —the situation may become even more widespread than among metals. NPA may make a copper cutback of only 20 to 3 0 % , or considerably milder than the 3 5 % plus first predicted. Plans are under way to open a new copper mine in Arizona with expected capacity of 22,500 tons yearly. Senator Herbert R. O'Conor of Maryland has asserted that 2,000 tons of copper has been shipped from the United States to Communist China through "spurious"' bills of lading and "mis-representations." It is refreshing to find basic materials that are plentiful. Thus J. G. Schnitzer, 4300
head of the government's Textile and Leather division, National Production Authority, has recently said that textile supplies, with three exceptions, are "generally ample" to meet both civilian and military demand at this time. The exceptions are rayon yarn, corded cotton yarns for making knit goods, and cotton duck.
Many industrialists, negotiating war contracts, are putting pressure on for "escalator" clauses in contracts to protect them against wage and material price rises. The government's policy is to contract at fixed prices. Turning now to the graphs, the chemists are naturally interested in how their volume of production compares with industrial production as a whole. Over the past several years the trends have been similiar as the two-column graph would indicate. In September, the last month for which figures are available, both had attained new highs for postwar. The index figure for industrial chemicals production rose from 451 in August to 457
INDUSTRIAL CHEMICALS vs. INDUSTRIAL PRODUCTION BASE PERIOD INDEX 1935-1939 = 100 500
400 INDUSTRIAL CHEMICALS 300
200 TOTAL INDUSTRIAL PRODUCTION 100 1949
1948
1947
CELLULOSE ACETATE PLASTICS
1950
MOTOR FUEL PRODUCTION
PRODUCTION. M O L D I N G AND EXTRUSION MATERIALS, SHEETS, RODS. AND TUEE, MIUIONS OF POUNDS
ALL TYPES. MILLIONS O F BARRELS
PUNT EXPENDITURES ALL MANUFACTURING, INCLUDING EQUIPMENT BILLIONS OF DOLLARS
STEEL OPERATIONS PER CENT CAPACITY 2.3
^ - ^
^K^/
Pi
2.2
H H
i i | Av of July ». 1950. CopocityCol- 11 euloicd at 100.563.500 Tom. Do»o (or 1949 Bated on Copoc.ty o»06.120.930Tomon Jan 1.1949
2.0
1 '8xy 1 ,
