m y 21, iw:i CAEYIBTRY AND INDUSTRY GO1

I;ttl., The ,\lnlonc liistriiniciit Co., Lttl., The Si!\\wistlc k C:ntcslic.:itl Cils CO., T,ttl., ’L’lic Pritiiiicr 1I:lcctritr IVeItling Co., :I. l<cyrollc h Co., Lttl., Scott tt ‘I’itrnt~, Ltt l . , ’I’lic ‘I’ltcri~inl Syndiciitc I,ttl., iilitl Unwin Lt Co., Lt (I.

’L’Itc visitors intist Itiivc I~ccii fillrd \\.it11 iitlniiriitioii, iiot only of tltc vnst soopc of tlic work going on, h i t nlso of tltc fiiic IiiiiItIings i n \vliich tltc work is c.ontliictctI. ‘I’h (‘ollcgc niccts fully the rslicctiitions of t h e wlio know it to I)c ii laitling ct!titrc ~vlicrc \vorIi on tnining, nictnllurgy, clicniistry, nn t l ngricultorc is conccrnctl.

\ \ ’ O I ~ K S Vrsl~rs . , \ I~~~i i l icrs i i n t l giicbsts piid visits on ‘L‘liiirsility iind k’ridiiy’ to iiiiiny tiatiililc works i n the n~!i~ltlio~irl~ood of S(!\vciistlp. ‘ I ’ l t t w will I)v clcsc~riliwl in tlic nest issue of t I1v .IOUItSA I.. L THE ECONOMIC CONFERENCELAND AFTER

By FRANK MORRIS ‘l’lic l~conoinic Cotifcrcnce is i n :I state of suslicti(lccl

riiiiiiiiition : I lie iiiost ciircfiil nitr~iiig is rc~quirctl ii i ortlcr to rctiiin i t sliiirk of life i i i i t l i t is riccclloss to siiy t I i i i t :ill sirlijwts of tlist~tissioii c~:ilculntcd to riiisc the tcttipcr:ititrc oftlic pitictit iirc rigicily IJiirrccI by doctor’s orders. Jlcttiiplior iipiirt, tltc Iir:ictic*nl tlissolutioii of tlic Cotifwetice wiis incvitnlilc frotii tlw start, since politics i i i i c l not c.conottrics coiitrollctl its tlcstiny. 15vi:ii in our owti intcrniil iillitirs tlic politicinn i i n t l not tlic ccoiioniist ciills the t iitie, i i t i d to cspcct Mi niitioiis, c;ii*li u-itli its owti political tii1~kgr0111it1, to it‘cliicvc i i ~ r ~ ~ i ~ i i i e n t wiis ;I griicc*fitl triliute to tlie t riittiipli of IW~JC over cs~ icr icnc~~. ‘I’lie fiict tliiit I’rc~siilciit 7toosc- vclt Iiliicc(l ‘‘ SIiiliilieiitioti of Citrrcncic~s ’’ i l l t Iic f‘orc- front of t l t ~ work of tlic Cotifcreiicc iilitl I I I C I I within i t

fort night, iilriiost. brtttiilly rcftisctl co-olii~iition, iviis

evitlcricc of tlic rctictiuti of polit ics over ccononiics, i i i i t l ri. lesson to t lie world not to piit its trust i n priticrs Ict itloiic ii clcuocriit ic ~iresiil~~nt. ’I Io\vcvcr, tlic brciikclo\vti

1Eirst ly I~CC:IUSC 11:crc wis iilwrtys tlic ilnnger t l i i t t we might IJC citjolctl into iitlopting it policy ciilciiliitcd to 1iii11 t lit! clicst iiiits oiit of tlie fire for oitr “ liinsiiic~i nt’ross the Sciis,” l) i~t priiiiiirily Iic~:iitsc tlic Confcrcncc: did not tlcul with fiititliitiitwt:il issues, Iiitt w i t l i piilliiitivcs nntl not ciircs.

Prior to tlic Coiifcre~icc tlicrc wvre niiiay s iys t l~i i t , :it 101i.g Iiist tltc odd \viis Iiegiiiiiiiig to rt~cng~iiei! t l i i i t .

cconoiiiic* Iii\\.s c~i i l t l not. tic I i r ~ l i c ~ i i \vitl i iiiiliiiiiity or witltotit tlisiistcr. Igor csiin~plc, t lic I ~ I W of *’ Supply : i t id l ~ ~ n i i i n d , ” i i n t l its inorc iriiportitnt (lcrivitt ivc the I i i w of’ tltc * ’ Jlitrltct I’ricc.” Aftrr ii Ioiig I i a ‘ i o t l of i.lcfitiiirc we re slowly rc\-urtiiig to the tciiclliligs cif t,lic crirly Vi~~~or i i i t~ II:cotiot~iists, i i t i t l cveii t.&c I I I I I ~ ~ I - iiliitsctl i t t i t l 1tiist1ti1l~~~stoot1 cloct rino of’ ltrisse: f t t ire wiis iiotf witltoiit criii\wts. Soiiic of 11s \vcyc c:oll\~ill(.-cll by iirgiiiiiwits iititl iiiiiny tiiorc hy the l i i t rtl logic of fiict, H I K I cs~icric~icc, i i t id t lie t licory wiis grii(luiilIy bcirig tliscrcditcd tltiit. it. \\us witliin t lie co~ l~pc tc l l c~~ I l l l t l pro\iiicc! of t,hc Cwcriiiiicnt t~ i* 1 1 l 1 1 k ~ ~ o r l i . ’ ’ ‘ r l i c C o r ~ f ~ ~ ~ c c ! ciillctl II Iriilt i n tJiis IjctiIt11y reiict j ( i l l 01’ p b l i c opinion, iind rcvititliecd !lie cliilcllilcc fi l it lt tllitt.

of tltc C‘o~i fcr~cc is I I O ~ ii Iliitttcr for titirclicvctl regret.

i n soine niystcrious way tlic ~ v o r ~ t i i o i t ~ t ~ I)C rcgcl1cr:ttcd nntl t.lic mills of intlustry rostnrtctl by sltortcning tltc liorirs of Inboiir, incrciising \\.iitcs iincl, as tlic L n b o ~ ~ r l’itrty is tiever t,iretl of nsscrtin~-piirclinsi~ig power. U I this wiis to bc ricliievctl Iiy tlic pitinlcss process of ciirrcncy iititl credit ~nnnipulntioii niitl rcstrictioii of protlriction. I t is true t,liat tlicse Iiarticiiliir proposnls ciitiliot lie fo1111tl 011 tlic rigcntlii of the Conference, biit, tit iinp riitc t h s c arc t,lie proposnls wliicli \vc :ire ilivited to iitlopt I)y I’rcsitlcitt Roosrvelt~, iiiitl 1 Iinve little don))t tlirit if the Confcreiicc lintl co~iti~i~tecl we s l ~ o ~ ~ l d hnvc I)ccn coinn~ittetl to rt policy of ’‘ tIopc ” wIiicIl 11itiy suit. tlic I i : i ck \~oot l~~ i i c~~ i of tltc Uriitetl Stiitcs, hiit. c*:ilciil:ctetl, i f thc science of ccononiics hiis :illy reiility, to Iitntl 11s tlcclicr rind tleeliw i n tlie niorriss of innkc- Iielicvc. ‘l‘licrdorc, I n n i griit(!ftil tlirit. tlic ‘’ (:old Stiititlilrtl ” bloc, Iiciitlctl liy I + i i ~ i ~ witli Iicr rciilistic :inti lopiciil outlook, iuid nitlctl I)y our oivn cointiion smsc, Itiis siivctl us, for tltc tinie tieing, froin tliesc tlisnst.rorts c*sjicritncnts.

1<coso>~ I c 1 J h \v s T linvc tIrii\vii iittentioti t o the griitliinl rcviCiil of‘

fn i t l i i n economic lii\vs. T,ct ~ i i c clnl)oriite this issuc! witli sl~eciril n!fcrc*ncc to tlic Iriw of tlic miirkct price. Sir Nornuin Atig~ll hns rcccntly pldislictl n new ctlition of liis cclclirntctl work *’ ‘I’lte C: rciit Illusion “--wiir I)ct\vcen nnt.ions t1y.s not p y . I f tlint t)c trite on the pliysicnl Iinttlclieltl it is tloulily true as rc-gnrtls cconoiiiic wiirfiirc? Iict\vorti nittions, i it id yet. iiiore triic in rcgiirtl to intrrnccitic wnrfiirc I~et\vcen C‘iipitid rind T A ~ O I I ~ . I\’iir I i c t \vc~~ i iiritioiis :it t Iic WOEI hiis !I ti1:iteriiil objec- tive, tcrritorg, pliysicnl rcsoiirces, and Iiinrkcts. Hiit wiirfiirc bctwevn Ghpitiil nntl Lnliour ciitlnot cv\‘~:t~ plcnd t l i n t psciise. I t is :I figlit. for ii stitntliirtl of‘ living yliiclt the coiitcstiiiits iirc doing tlicir 1evt.l best to destroy, t,l~cy iirc grasping iit, the ~ l i i i~ lo \ \~ iltitl losing tlic sub- stiiiicc. 1,iiI)oiir rcgiirds tI i ( ! * * s t i I l i t l i trd of living ’’ iis sotiictliiit~ wltic~li is \ritlilicltl front i t Iiy tlic grcctl of tho capititlist. arid tlic ciitrc~~renciir cl:ir;s. ‘I’lierc ncvcr \viis ii greirtcr fitlliicy. Tlic stillitlnrtl of living is govc.rncd by two factors only : * ‘ ~)r~idriction ” iind tltc *‘ ~ i i e c l ~ i i ~ ~ i s ~ n of‘ distribution.” I)ist.ribution i n t u r n is govcrnetl hy the In\\, of tlie ’* Iiiitrlict p r i ~ ’’ wliicli sihjcct t o ’’ cqiiiilit,y of opportiiiiity ” is the only logical met liotl of ec1iiittiii.g s11pp1~ iiii(1 t l ~ t i i i i t i d . Lnbotlr his beon tiiuglit to Iicl ic \~ otherwise. I t niniiitnins t h t wiigw slioultl govern prices, wlierciis t lie obvious rttlitt.ioti is t l i i t t . prices intist govern iviigcs. ‘l’liis is tlio ‘‘ grcitt cconoiiiic illusion ” i i i i t l \re scc tltc rceult; i n t,lic triigic figures of t Iiirty iiiillioii it~ictii~iloyctl-st:trviitio~ i n t.lic inidst, of plent,y. Liilioiir docs not iiiiikc this cliiini, vie., t l i i t t \viigcs sltotiltl govcrri prices, in so niiiiiy words. I t prefers to siiy tliiit wages iirc n first clinrgc on industry, ~ i t L i t tnctitiil rcscrvntion that

of living irrcslwctivc of rciil citriiitigs or \\’hiit, the niiirkct can iitYortl. I n tlic Icgiilistic seiisc w g c s fir(: t hc first cliitrgc t in itidiistry, I)itt< in tlic ct~o~iotiiic sense tlic clitini mill not, Ilciir c!sriniiniition.

Lct 11s follow out tltis untciiiil~le clnitn iiiitl scc whi t hnppcns. I h \ h g set u p 1111 irrcducil)lc ~iiinimuai of wiiges, tlic ciiiploycr wlro in itltimntc tiualysis is oiily

wllgcs sllollltl lie I,rM!cl 011 solllc p11rcly IIrllitritry strlnllilrtl

602 CHEMISTRY AND INDUSTRY July ?I, 1033

the npent. l,etwccn the prodttccr and tlic constinicr, finds tliiit lie cnnnot COI-cr liis es~)cnscs, tlic ritiirkct. price h i n p beyond Iiis control. In tlicsc circiiiiistiinccs the cniployer adopts the only coiirsc opcn to him : i d rcduces production, i it id iniisniucli iis scnrcity rniscs priccs nntl iibuntl:iticc l o w r s tlieni, tlic rcliitioii I)ct\vccn supply nnt l tleninntl is once more iirljustctl. But lit. wlint, espcnsc ? l i c d ~ c c d production tilciitis iiticiii~~loyiiiciit, niid fnrctl wit11 tliilt, tlilcniniri 1,:iboiir rlccliircs t l i i i t it is : i l l the fiiult of the systctti i111tl tliiit. C‘iipitiilisni Iiiis hrokcn tlo\r.n. Of course it. Iiirs, h i i t tlic rciisoti for tlir I~rcnktlowii Iiiis nothing to do with tlic tlefrcts of t.lw systcin, but with tlic rcfiis:il of 1,iiI~our to iircept tlic! only terms on which tlic systciii ciin freely work. ‘I’liis, Iioivevcr, is not tlir cntl of the story. ‘I’liose wlio ri!ni:iiii i n cniploy~nrnt, it is triie, Irnvc iicliicvctl tlrcir objei-tivc- higher \v:igcs-litit they fiiil to recognize tliiit tlir increiisc is clcccptive. since (Is h y p o / h . s i liriccs Iiiivc riscii rind tlic incrciisctl \v:ige l)u\.s less. Sot only tlliit, l i l l t tlie unenililoyctl, crciitctl by tltc dcntiiiitl for unccononiic wngcs;, niust I)c ntiiintiiinet1. This biirtlcn of ninintciiiuicc fiills on all cliissca, but priiiiiirily upon hliotir, since wiigcs tire iiiconil~iirnlily tlic liirgcst tiISillJlc clenicnt i n the nntion. l’licrc iire yet fiirtlicr rciictions to this clisiistroiis rcfiisiil to iiccq)t the niiirkct pic(&. If this coiint ry iwrc ii self-contiiincd unit the position woultl I I C hiid ctio11g11, hilt we :ire liirgcly tl(:l)~1idc1it t11iOn our csport trntlit for tlic \vht!rtwit l i irl to olitiiin tlic essentiiils of living, iiitd yet I,:il~oiir i n the piirsiiit of n sliiitlo\v-- ; in artificial * * stiintliircl of living “--is rctliicing its conipctitive power i n tlic ncut rid niiirkets nntl tlicrcl)y destroying its miii11 objective.

If tliese conclusions arc viilid, it follows tlint \vc slioiiltl IJC \\.ell iitl\.isetl not to folio\\- Atitcricii in Iicr \vill-o’-t lit*- wisp infliitionirry policy of pulling Iitwrlf 1111 by licr own liootstriips. l’lic ilnngt*r of lxing tlriiwn into Iirr orhit is grcnt, since iiiicloiibtedly hiiericiili infliition woiild hit tis in n vital spot, our csport trntlc. Sever- theless \ve tliire not. follo\v hiiericii, since \vliiit niriy lie ii ripple ou tlie sliorcs of tliiit continent niiiy I I C :I titlril ware in this country. l’liis is tluc to o w siiinllcr p01111- lntiou and our specid ccononiic coiitlitions. All esperieucc, Ict iilonc rciison, tcnclics iis t,liiit inflntion is ii drug requiring lurger i inc l lnrgcr tloscs, hiving thc patic.nt wciikcr, cconoiiticnlly, with eiicli injection. l’coplc tnlk of ‘’ controlled ” infliition : it, liiis never bccn witnessed yet, since iiiflntion restilts i n ii vicious circle of cvor-widening circumfcrcncc. At, tlic best., infliition is ii nictliod of confisciition of p s t sovings nntl present enpitill, caiiioufliigcttl by tlic Iiopc tlirit the victinis will not noticc it. I\‘c ilrc told tliiit \VC iirc tlic niost highly-tnscd untion i n the worltl, t l int tiistit ion is strangling industry and tliiit “ inflution ” is tlic only wuy out. I dotilit tlic “ striinguliition ” tlicory rind definitely dispute thc reinetly. ‘l‘liut wc urc over-tiised is true. Tlie country ciiniiot iilfortl esl)cntliturc or so-cnllcd ’’ socinl services ” wliicli do not, euiise t lie growth of ii Llndc of p s s , ii l~t~.slicl of wlieiit, or tlrc l~rodiiction of n fiinglc coitiinotlity wliicli we ncctl. I n liuy cnac, to rctlucc tlic burdeli of tiisiition hy inlliition

Inflirtion fiills on tlic just nntl unjiifit nlike-it sliifts tlic burden but does not rctlucc it. 1 lie ecouoniic snlwtion of this couiitry, i ~ n t l intlccd of t h o \vorld, lies i n the recognition of tlic sniictity of tIic

a. cowiirtl’s policy. ,,

l:iw of the niiirkct pricc. It, is tlic root. principle of oitr contpctit ivc econoniic socicjy. MCII liiiiy tlrciiin of ii

world ortlcr \vlicre ‘’ yciiritings ” i i n d not cnrnings :ire tlic nicnsiirc of tlic r c w r d s for effort,, I)ut t,liiit stiigc of civiliziition is not, yet., nltliougli O W prcscnt stiitc is p r t l y due to 0111- nttcnipt to ncliicvc i t . Let iis irl~iindon tlrciinis, nntl if only oiir Iciitlcrs Imvc t lie u-istloiii to nppcnl to the coiirngc, tlic grit, nnd tlic coninion scnsc of tlic pcoplc, they will not bctriry tlirir trust.

PROTECTION FOR HOME -PRODUCED MOTOR OIL l’lic l’rinic Minister iinnoiinced i n t lie Iloiise of

C‘oninions on .I lily 1 i tliiit t lie C:ovcwinttwt I i i i t l tlcvidcil to titkc iniinctliiite steps to clicoii~iigc the I)roiltit!iion of oil from coiil i n this coiintry. 1,iglit I i ~ t l ~ ~ ~ i i r l i ~ i ~ oils ~~tii~liifiit!tt~rctI froin coiil, sIr:iIc, or p i i t will cwjoy ii

Iircffcwncc of not lcss tliiitt . Id . pcr giillon o w r int~~ortcil oils. ‘i’lic prqiosiil will conic into olieriitioit oii April 1. I W , rind tlic period during wliicli tlic tliiriitioii opcriitc.s iiftcr April 1, I$)%, will I)c tlctcriiiinctl I)y tlic cstwit of tlic prcli.rt!ricc. l’hc totnl ii rnotirit of ~irefercncc Irris I JCCI I piit :it %., nnd on tltc I):isis of tlic lowest 1iossililc pref- erence of . I t l . , tltc tlliriitioli of tlic giiiiriintce will lie

9 yt!iirs fro01 April 1, 1935, or 1 0 yciirs i n :ill froni tlw coi1ti110itceiiiciit of tlic sclienic. If t lie duty on iiiiporteil oil continlies iit its present riitc of &I. per gallon, Iionio- protliicctl petrol will enjoy ti prefcrcncc of stl. per giillon froni April I , 1!)%1, until Scptciiil)cr 30, 1!)39.

llic conccssioii trill iipply to iill proccss.cs, Iiiit it is of p r t ictiliir i t i ip~r t i in~c to I~ii~~crii i l Clicniiciil lntltistriw. Lttl., wlio Iiiivc lJCL‘I1 ciirryiiig out cspcrinicnts iri‘

1~illingliiini for six years iit ii totiil cost ivliicli is stiitctl to hive hecii i n tlic nciglil)ourliootl of XI ,000,000.

In vitw of t.lw iindcrtnking given in tlic llousc of C1o1111nons, tlic directors Iiiivc JIOW niitliorisctl it sclrcrric~ for t lie erection of ii Iiirgc coninicrci:il p l i i i t t , wliiculi is to IN lociitctl ;it tlic Conipiny’s \vorks ;it, I~illiiigliiiili-oil- Tees, c‘o. ~ 1 ~ r l i ~ i 1 1 1 , wlicrc spcciiil fiicilitics :ire iiviiil:il)Iv.

:hi i i i i t i i i l oiitput. of 100,000 tons i i yciir of ht-grnt lv petrol is iiinictl nt I)y protcssing -100 tons of coiil :i t hy nlitl using iiltogctlicr iil)oltt, IOOO tolls :I (lily of c ~ ~ i i l .

l’lic opcrntioii of tlic Iiliilit will give perniiiiieiit i l i rw t cI1iplo~tii~Itt to ’7,600 niiiicrs i i l it l otlicr \rorIiws, i i ~

WCII iis iiitIc*Ii iiiilircct cntploynient. ~ I i c construction of t.Iie pIiiiit itself, cstiinirtd to tnIie

i i lmi t 1.r years, will ciill for niucli activity in tlic iron ; i d stccl iilitl Itcii\ry industries. 70OU nicn will f i i i t l direct cinploynieiit tluring tlicsc 14 yciirs, iintl it is es- pcctctl tliiit tliere ivill lie iatliwct enil~loy~i~cnt for ;I ft1rtI1cr 5000 Illen.

furnislictl by I.C.I. Ltt l . froni its own rcso~irccs.

, *

!I’lic I I C ? C C S S ~ I ~ ~ IN\V ciipitiil of iiliout f2,,SOO,OOU wil l I N *

TRANSFERENCE OF RAYON SHARES I t is ItlJO’.tcd iii tlic b’imow;d 7 ’ ; m s t .liiit , the k’rciicli

coiiipiiny, Socidt; l’iiiiiiicibrc Iiitcrniit ioiiiilc t l i ? l i i Soic Artificidlc is to iicquirc! tlic \vliolc of t Iic riiyoti iiitcrcst,s J ~ O W licltl hy tlic Intorntitioniil ‘lloltliiig k litvcstnittiits Co. I3y this iirriiiigciiicnt tlic 1 h x c l i coinpiny will tukc over Iiirgc I~locks of sliiircs i i i soiiic of‘ t Iic priiicipiil ii~tificiiil-sill~-~)rotliiciiig conipiinics i n I Tolliintl, lhinci!, Spiiii, ibist.rici, C‘zccliosloviikiii, i int l Anicricii, iind will control ;iltoget,licr t,lic Iirotliict,ioti of‘ iitioitti 80,001) totis, or one-tliirtl of tlic cnt ire world production.