BUSINESS
PROCESS I N D U S T R I E S ' OUTLOOK Mobilizer Wilson defends 3 - y e a r defense plan . . . Later we'll concentrate on quality and invention . . . Small business seeks more defense orders . . . A l u m i n u m output u p IIAKLFS E. Wilson, director of defense ^ mobilization, is always good "copy,' as the newspaper boys would say, and just the antithesis of the late Cal Coolidge, w h o was noted for leaving much unsaid. In fact this printed column is grateful, along with the newspaper fraternity, for Wilson's many utterances o n "the situa tion/' The Great Mobilizer has been con scious, even as you and I, of conflicting and opposing criticism. There are those w h o have said that w o are not serious enough about our mobilization and not enough "all out." Others have taken tlie opposite tack, saying that scramble for basic commodities by the military is forcing civilian business to close down. N o w Mr. Wilson points out that the pres ent graduated three-year plan for pro ducing $150 billion of military goods is the soundest method of developing a formid able striking force, at t h e same time reach ing a "summit of strength" that can b e maintained without economic strain. After completion of the three-year plan, less quantity will be needed, with more attention to quality and invention, the mobilizer said. He answered the expressed fears that at the end of the three-year pro gram n e w plants will b e idle. A backlog of civilian demands will thrust this country into an era of greater civilian production than it has ever known, he contends.
cies" of the Federal Government. Cer tainly not all t h e budget increases c a n possibly b e justified under the blanket excuse of national emergency, he said. Sen. Irving M . Ives stated recently that an uprising at t h e "grass roots" level must demand economy with "unmistakable a n d overwhelming emphasis."
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CHEMICAL INVENTORIES AND SALES 'INCLUDtKG ALLIED PRODUCTS, BILLIONS OF DOLLARS,
CHEMICAL SALES Ζ0Γ
Defense Orders $1 Billion W e e k l y Defense orders have been placed at the rate of nearly $1 billion weekly since the first of the year, while actual deliveries of military end-items n o w total $ 2 billion monthly, h e said. There was a certain amount of "fat" (excess basic materials) to carry us through early mobilization, but t h e "fat" will give way to leanness. Meanwhile, many small plants are not satisfied with their share of defense orders. Herbert Barchoff, president, Eastern Brass & Copper Co., has suggested a consolida tion of governmental agencies dispensing small business contracts, or else formation b y business men themselves of regional pools to handle major defense contracts. Consolidation of the Washington agen cies would provide a central place, so that the small business man will not b e "pushed from pillar to post," discouraged b y red tape. Mr. Barchoff also said that many big firms, t o take up slack from civilian cuts, are doing work formerly farmed out. Many business and congressional leaders continue to urge, in language that is not timid, that the Government practice more economy. Leland I. Doan, president, D o w Chemical Co., attacked the "shameful ex travagance and inflationary spending poli
Production of electronic equipment for the Armed Services accounts for 609& of business of Allen B. Dumont Laboratories. Ivan L. Wiles, general manager, Buick, said that defense production will move into higb gear i n late 1952. T h e top accompanying graph is a study in black and white, as the artists might say. Though t h e general trends of sales and inventories of chemical and allied products are the same, there have been deviations at times. When there is a s u d d e n strong spurt in sales there may b e a n accompanying drop in inventories as manufacturers dig into stocks o n hand. Then, when produc tion catches up in the new era o f pros perity, inventories, too, increase. T h u s , in
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CHEMICAL INVENTORIES 3-8
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ALUMINUM PRODUCTION
ELECTRIC POWER
PRIMARY, T H O U S A N D S OF SHORT TONS
INDUSTRIAL A N D UTILITY PRODUCTION, BILLIONS O F KW.-HR.
«TRIAL PAINTS NCLUDING VARNISH, LACQUER, A N D FILLER VALUE OF SALES, MILLIONS O F DOLLARS
EXPORTS CHEMICALS A N D RELATED PRODUCTS, MILLIONS O F DOLLARS
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I I 1950
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CHEMlCAt AND JENGINEgRINO N W S
CHEMICAL
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early 1 9 5 0 a prolonged boom i n business started that caught manufacturers by sur prise and off guard* During the last month, reported, Sep tember, sales declined while inventories rose, possibly because of t h e shorter month. Sales had been $1.6 billion in August, sagging to $1.5; o n the other h a n d , inventories of $2t9 billion i n August gained to nearly $3.0 billion in Septem ber. Sales in September last year were $1.4 billion, with inventories $ 2 . 1 billion, higher prices prevailing today having some bearing. ( The index price figure for all commodities on Nov. 27, 1951 was 177.6 versus 172.6 t h e year before.) Consider now t h e graph o n electric power, a vital factor in our defense and "guns plus butter" style of living. As to production we are gliding along on a plateau for the most part, w i t h fair i m provement over a year ago. Thus, i n Oc tober w e produced 37.8 billion kw.-hr., as against 34.3 the year before. I n August output had been 37.5 billion kw.-hr. and in September 35.3 billion. In October the utilities produced 32.4 billion, while t h e industrial establishments turned out 5.3 billion kw.-hr. I f w e are to have more aluminum and other key materials and if w e attain higher indus trial production generally, we must have more electric power capacity, b u t such is being planned for. Sales of industrial paints, t h o u g h not an important barometer for industry as a whole, has a bearing on consumption of chemicals. The graph i s in a declining mood—the graph presenting a reasonable facsimile o f the Alps. Here is a graph which has sunk to levels b e l o w a year ago, t h e $ 3 3 . 9 million for September comparing with $38.4 last year and with $38.4 million i n August. That Alps peak is $44.4 million, as of last March.
about pipe repairs and replacements 2
corrosion Tes\s*ant
New Text ι
Chemical Exports a t H i g h L e v e l As t o exports of chemicals a n d related products, September declined somewhat, maybe because of the shorter month, amounting to $85.3 million, following $91.5 in August, and comparing with only $65.7 million in September 1 9 5 0 . And, speaking of foreign trade in chemi cals, S i d n e y C. Moody, retiring president, Sytnthetic Organic Chemical Manufac turers Association told the association recently that w e m a y expect a n increas i n g volume of imports of chemicals in years to come a s a result of drastic tariff re ductions at the Torquay Conference, "a horrible mistake." Production o f primary aluminum in October w a s 7 2 , 6 4 7 tons against 6 9 , 4 2 9 tons i n September and 62,915 tons in October 1950. Output for ten months w a s 6 9 2 , 1 8 0 tons versus 590,455 tons i n the same span of 1950.
C H A R T C R E D I T S : Inventories and Sales —TJ. S. Department of Commerce; Paints —Bureau o f t h e Census; Chemical Ex ports—Bureau of t h e Census; Electric Power—U. S. Department of Commerce; Aluminum Production—Aluminum Associa tion.
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