The Bridgeport times and evening farmer., 1919-10-02
FLUCTUATIONS IN PRICE 0F
 CHEMICALS DURING WAR
Government Graphically Studies Materials lied to the Chemical Industry from Beginning
 of 1913 to Close Of Year 1918.

sued at Washington on the basis Of the data in the hands of the War In oustrles Board and prepared by F. E. bfethut The first part of the report IS devoted to a study of the position Of the chemical industries as indicat- ed t'y the 1914 census and other sta- tlstical information. The bulletin then takes up the price movement ln the various classes of chemicals giving charts in each instance. Here With are presented the salient fea- lures of the report:
 The price charts scattered freely through all the bulletins are draw~ on 8 uniform scale. The charts lor coal tar crudes, intermediates and eyes are exceptions. The prices of me commodities in this class showed such wide variation that if the charts had been drawn on the uni form scale adopted for all the other bulletins it would have reouira5 charts more than a foot long, As the coal tar dye situation, however presented so many striking features It was deemed best to sacrifice mi forTnity by drawing these charts on a reduced scale. If the reader will keen ,hls fact in mind in making comparf- sons of the charts representing the price fluctuations of coal for products with those showing the price flucta- tons of other classes confusion will be avoided. All other price charts are drawn on a uniform scale.
 Since the inquiry centers about tha effect of the war, the charts are nlade to show the movement of prices away from the Dre-war level This effect Is produced by treating the average actual prices in the twelve months preceding the outbreak of the war tJuty, 1913, to June, 1914), as equal to 100 and throwing the actual prices in each month from January, 1913 to December. 1918, into the form of relative prices on that scale. For example, if the selling price of a commodity average $2 per gallon in the twelve months before the swar and if it fell to $180 in October 1914, the relative price in that month would be 90; if the price rose to S4.60 in July, 1918, the relative price would be $2.30. On this plan all the price charts are strictly comparable one with another.
 For those who wish to know not merely the fIuctuation of particular commodities but also the general tread of prices in different industries, index numbers are provided. A simple average of the prices of com modities soId-some by the dozen and some by the ton, some by the quart and some by the yard-would ob viousIy have little value.
 Therefore in making index num- bers each commodity is weighted" by multiplying the monthly prices from 1913 to 1918 by the amount of the commodity produced in 1917, plus imports Nineteen hundred and sev- enteen was selected as the weighing year. because the tables are intended to reflect wartime conditions and be- cause data for 1918 were not obtain able for many commodities when the bulletins were being written.
 An enumeration of the successive steps in making these index numbers will show what the figures mean. First, for every commodity included in the computation there was made an estimate of the quantity produced in the United States in 1917, plus the quantity imported
 Second, the price of the commodlt in each month in the siX-year period covered was multiplied by the weigh" Third, the products of the different commodity prices times their weights were added up separately for each month Finally, the monthly aggregates were turned into relatives on the pre-war base-that is, the average aggregates of July, 1913, to June. 1914, were made equal to 100, and all the monthly aggregates were made over on that scale.
 It will be seen that the index num- bers made on this plan for an indus try are strictly comparable with the relative prices for particular com modities shown in the charts. By Us- ing these indexes readers can get a clear idea of average price f1uctua- tons in one industry with those in others.
 CoaI-tar Crudes, Intermediates and Dyes.-The price of coal-tar crudes, intermediates, and dyes showed re- markable fluctuations. The dye in ciustry, viewed from the standpoint of actual volume of business, is not nearly as important as several other classes, but this industry occupies a pivotal position. The value of a dye which enters into textile is very small as compared with the value of the textile itself, but the whole tex tile industry is dependent on this small item. As a consequence, the cutting off of our supply of German dyes caused a chaotic condition in the textile industry. The rally of Ameri- can manufacturers to the needs of the country constitutes one of the most genuine achievements of the war period.
 From an embryo of domestic pro- duction approximately only $3,000,00G before the war, there had grown, in three years, a production grant Of S7O.000,OGO value. Our study seems to justify the conclusion that the production of intern ediates is the real crux of the dye industry.
 Drugs and Pharmaceuticals.-T outstanding fact in this class of com modities is the wide geographic source of the raw materials. Nat urally the war disturbed the market in medicinals to an unusual degree. A glance at the charts showing the index number of this class shows that the blockade of German ports, the withdrawal of maritime com merce the congestion of shipping ter i ninal facilities, the destruction of i ships and cargoes, high insurance and