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Information bulletin
(June 1951)

Cefaratti, A. J.
Output, exports set records,   pp. 55-57 PDF (2.0 MB)


Page 56

and East zone officials to scrutinize shipments to the
other area, and retaliatory measures taken by the two
trading partners.
Industry
The index of industrial production during March (ex-
cluding building, stimulants and food processing) rose
by three points (up 1.7 percent) to 135 of the 1936 level,
thus equaling the postwar high reached in November
1950. The per capita rate of production rose to ap-
proximately 108 percent of 1936 (abo'ut 91 percent of
1938). Industrial demand continued on the upgrade as
the value of orders received by manufacturers rose
seven percent in February, and sales increased nine
percent. Total orders received in February averaged 22
percent higher than current sales, with investment goods
orders averaging 135 percent of sales, production goods
121 percent and consumer goods 109 percent. Orders
booked for investment goods reached a new postwar
high in February of 237 percent of the 1949 monthly
average.
Molnthly coal production for April continued at a high
level-with daily average output at 394,481 metric tons
and total production at 10,019,861 tons, including 157,845
tons produced in five Sunday shifts. Factors believed
largely responsible for this sustained rate of production
are interim agreements for extra shift pay and increased
employment since Jan. 1 by 5,500 underground workers
(1,700 face workers) and 4,000 surface workers. During
the first half of April, 1,231 underground and 4,268 sur-
face workers were added to the mine books. There has
been only little improvement in output per manshift during
the last year, as it stood at 1.40 metric tons in March
1950; 1.46 tons in February 1951; 1.45 tons in March
1951, and remained approximately the same in April.
Second quarter of 1951 consumption and deliveries of
coal should about balance (estimated by US Element of
Combined Coal Control Group -Federal Government's
original allocations program estimated at 2,000,000 tons
less), assuming that 22,000,000 tons are available and
that industrial production will continue at its present
rate. The danger lies in the low stockpile position of
the economy and there was little hope of improving this
position substantially in the second quarter. During the
winter months (October 1950 to April 1951) industrial
and public utility coal stocks decreased by some
2,000,000 tons. The present stock positions are better
than anticipated one month ago, but are, nevertheless, at
very low levels. On April 1, the railways had a seven
days (surplus on hand, power plants 12 days, gas plants
seven days, iron and steel seven days, and other in-
dustry 11 days.
Restrictions, Limitations Removed
On April 3, 1951, the Allied High Commissioners
signed the Agreement on Industrial Controls to replace
the Prohibited and Limited Industries Agreement (PLI)
of April 1949, and thereby facilitated the production in
Germany of items and materials for the common defense
of the West. Under the new agreement, the limitations
and restrictions hitherto in force concerning the size
and speed or tonnage of merchant ships built or other-
wise acquired by Germany, primary aluminum, synthetic
ammonia, chlorine, styrene and certain types of ma-
chine tools are removed. In addition, the High Commis-
sion will authorize production of crude steel outside the
limit of 11,100,000 tons per annum where such production
will help provide steel for the common defense effort.
The prohibition on the production of synthetic oil and
rubber is removed and the restrictions upon the capacity
of these and of the ball and roller bearing industries
are now modified. Control is retained, but in a modified
form, over the production of electronic valves.
It is the desire of the Allied High Commission to
promote technological progress and modernization of
production which will tend to reduce costs and promote
economies in raw materials, power and fuel. Con-
sequently, in those few industries where a limitation of
capacity is maintained, the High Commission will
authorize the substitution of more efficient equipment,
the rearrangement of machinery and the introduction of
new processes or other technical changes which may in-
volve a minor increase in the capacity of factory or
equipment.
In authorizing the rehabilitation of plants (including
the installation of new equipment) and the utilization
of new processes for the production of synthetic rubber
and synthetic oil from coal and coke, the High Com-
mission will grant licenses only to the extent that solid
fuel exports are not affected. Nevertheless, the applica-
tion outstanding for the use of the Ruhr area plants at
Bergkamen, Viktor, Scholven and Ruhroel will be granted
promptly.
While! a license is no longer required to manufacture
certain machine tools listed under the PLI agreement,
the High Commission does require that a system of de-
claration of manufacture by the producer (indicating
the intended destination of each machine) and of re-
porting quantities of such machines in Germany shall
be effected.
It is much too early to report on the effects of the
new agreement even though the affected industries had
anticipated certain revisions.
In Bavaria and in the upper Rhine district, melting
snow in the Alps and heavy rains provided water for
an all-time record hydroelectric power production. This
increased hydro production has enabled the chemical
industry in Bavaria to continue to operate without
restriction, and has provided power for present re-
quirements of the aluminum industry. Also in Bavaria,
the first unit in the lowest step of the Schluchsee project
of Waldshut, which was completed recently with couil-
terpart funds, will add 35,000,000 KWH yearly to the
available storage capacity in Western Germany.
An estimated 2,750,000,000 KWH of electricity were
used during the month, or 31 percent more than in April
1950 -a record increase in consumption. Gas consump-
tion also increased.
Low stocks and short falls in coal deliveries are still
a matter of considerable concern to the power com-
panies. Since consumption of both electricity and gas is
well above expectations, there is an immediate need
for additional facilities and stocking of coal to meet
next winter's demand.
Labor
The estimated number of employed wage and salary
earners in the Federal Republic increased by 150,000 to
about 14,400,000 at the end of April 1951, thus equaling
the October 1950 postwar peak. Employment in non-
mnanufacturing service establishments, in manufacturing,-
and in mining achieved a new peacetime high sparked
primarily by the producer goods industries. Building
activity, the principal factor in the April employment
INFORMATION BULLETIN
56
JUNE 1951


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