BUSINESS

Progress Toward Balanced Budget Deficit of $2.4 billion projected for 1956 fiscal

year; General Motors expects peak output

TpsxiMATED deficit for the current *̂ fiscal year will b e halved by cutting expenditures by $1.1 billion and figur­ing receipts at $ 1 billion more than was garnered in the 1955 fiscal year. These figures were presented by President Eisenhower in the budget for the fiscal year starting next July !.. Estimated expenditures axe put at $62.4 billion, receipts a t $60 billion, a n d the deficit, $2.4 billion.

While any deficit is disquieting be­cause of inflationary pressures arising from deficit financing, the Administra­tion has followed a tight line i n reduc­ing taxes, cutting Avaste and extrava­gance, and at the same time raain-taining essential services required in the national interest. Dividing up the budget dollar* about 65 cents is allo­cated to national security expenditures such as the military, atomic energy, and stockpiling of strategic and critical materials; 24 cents is funneled into charges fixed by law as interest pay­ments, veterans, and grants t o states; the last 11 cents i s applied t o miscel­laneous services.

Federal Income· Ou the other side of the ledger, the Federal Government wrings i ts income from various sources: 4 8 cents out o f each dollar from indi­viduals, 28 cents from corporations, 15 cents from excise taxes, 7 cents from customs and other taxes, and 4 cents from borrowing.

Atomic Energy. One of the par­ticularly interesting aspects of the budget message nas t o do with the Atomic Energy Commission activities. Total expenditures for the AEC are budgeted at $2 billion,, of which $1.5 billion will represent operating expendi­tures. This latter sum is increased about 2J5% because of higher level of procurement of uranium ores and con­centrates, and because of greater pro­duction as new facilities are com­pleted and placed in operation.

Capital expenditures in the fiscal year 1956 will drop as the major plant construction program reaches comple­tion, but such expenditures for 1956 will includes (1) plant improvement and other facilities t o improve effi­ciency; (2) certain weapons research facilities; (3 ) a medical researcH cen­ter; ( 4 ) an international training school i n reactor technology; and (5) devel­opmental atomic reactor projects.

In connection with t h e development o f industrial atomic power for peace­

time use, the President stated that "It i s essential that this program so proceed that this new industry will develop self-reliance and self-sufficiency. Ac­cordingly, it is expected that indus­try will finance an increasingly larger share of the total national effort in de­veloping power reactor technology."

Whether the Administration will secure as large a measure o f cooperation as seems to be desired will b e problem­atic; industry has given ample evidence that it intends to proceed warily until certain aspects of the Atomic Energy Act of 1954 are clarified.

An expansion of t h e program to de­velop industrial power reactors is pro­vided in order to speed the establish­ment of the new technology. Con­struction of several experimental re­actors will be started this year and next. Of these, according t o the Presi­dent, one of the most significant is a

caow CHARTS PR O C Ε S S I N D U S T R I E S T R E N D S

SALES, Chemical & Allied Products vs. All Manufacturing BlUONS OF DOLLARS .Seasonally Adjusted CHiMICAlS A N D AWED PRODUCTS ALL MANUFACTURIM

2.0-AUL MANUFACTURING

u-

_J- i -

R I N G # ^ - > \

— — *Lo CHEMICALS AND ALLIED PRODUCTS

1 I I L·

" MOV/26

24.60

-24

NOV. -1.79-22

J L. • J — L _ l 1SS2 1953 1954

PLANT EXPENDITURES M L MMACTOBJK. WClDfBNfi EQUIPKMT C M flf ΟΟλΚΠΒ. BlUtORS OF DOUAIS

3.0 est.

335 PAPER AND PAPERBOARE» nOODCTIOK. THOUSANDS O f SUIT TONS

OCT. ^ - J 2367-

iSOQl I M I I M 19S3

t i l Ι Μ Μ Ί Ι I 1954

PAPER, UNFILLED ORDERS DCIBOOIE BUILDING PAPO. ΚΚΡΙΜΓ. AND PJKttMIO. THOOSAKOS OF w r TONS

45QI I M 1 M I 1 I M

MAGNESIUM PRODUCTION PRIMARY INGOTS, THOUSANDS OF TONS

4 6 0 C H E M I C A L A N D E N G I N E E R I N G N E W S

power breeder, designed to produce more fissionable material than it con­sumes. Nearly $15 million is included in the budget for this project.

Additional atomic-powered submar­ines are to be built. Development work will proceed on improved types of submarine reactors, on a reactor to power larger naval vessels, on atomic-powered aircraft, and on small portable power reactors for military use.

General Motors. The president of Ceneral Motors Corp., Harlow H. Curtice, produced a forecast of $10 million in GM sales for 1955 and pro­duction by the 'whole automotive in­dustry of 6.8 million passenger cars and trucks. His forecast was based on an estimate o f gross national prod­uct of about $370 billion, an estimate which falls short of that made by For­tune magazine. He also predicted a high level of employment and a longer work week in 1955. GM spent $600 million to bring its 1955 models to market. Capital expenditures last year equalled $750 million, and another $500 million will b e similarly spent this year, h e said.

Chemica· Sales. With the figure for December missing, sales of chemi­cals and allied products for 1954 will surpass $20 billion b y a slight margin and will probably exceed the 1953 total by about $500 million or 2.5%. The November improvement in sales of all manufacturing can largely be attrib­uted to better than seasonal increases in sales of almost al l major durable-goods industries.

Paper and Paperfooard. While the backlog of unfilled orders for paper have been whittled down during most of 1954, the paper and paperboard in­dustries operated at a satisfactory level throughout last year in contrast to many industries. Production will probably equal 1953 total of 28.6 mil­lion tons.

Magnesium. Production of mag­nesium in 1953 equalled 93 million tons, but the total for 1954 may not reach 65 million tons. The industry has contracted t o operations supported in a peacetime economy.

Plant Expenditures, Capital ex­penditures of naanufacturing industries have been maintained at high levels during 1954. The full year total i s expected to be $11.24 billion as com­pared to $12,276,000,000 for 1953, a reduction of $1 billion or 8%. Plant expenditures for chemicals and allied products are expected to be off about 20% hy comparison, however.

CHART CREDITS. Sales, Chemical and Allied Products vs. All Manufac­turing—Department of Commerce; Paper and Paperboard, Paper Unfilled Orders, Plant Expenditures—Depart­ment of Commerce; Magnesium Pro­duction—Magnesium Association.

HORTONSPHERES are used t o store volatile petrocHemicals and to prevent evaporation loss. They're spherical vessels designed for* the holding of such liquids a s butanes and propanes . . . n o vapor c a n escape as long a s the internal pressure in the Hortonsphere does not exceed t h e pressure relief valve setting.

Shown above are some o f the four 6,00O-bbl. Hortonspheres built for Celanese Corporation o f America at Pampa, Texas. Used for butane storage they huave a working pressure o f 75 lbs. per sq. in.

If you have trouble with storing volatile liquids, write our nearest office. CB&I engineers can help you.

U Chicago Bridge & Iron Company Atlanta · Binmingham · Boston · Chicago · Cleveland · Detroit · Houston

Los Angeles · New York · Philadelphia · Pittsburgh · Sait Lake City

Sen Francisco · Seattle · Tulsa · Washington

P/arafs in BIRMINGHAM, CHICAGO, SALT LAKE CITY and GREENVILLE, PA.

V O L U M E 33. N O . 5 · J A N U A R Y 3 1, 1955 461

How to make urn L«là im UA wjM

Behave During Storage