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 566 MIN~RAIAS YEAR]3OO~


materially in 1931, when the total value of its product dropped to $l40,976,45~
and became virtually stagnated in 1932, when the total value dropped to $80,835,000.
This amount is the lowest reported since 1915. As the producing capacity
of the industry, an accurate indicator of capital investment, has been more
than doubled since 1915, it follows that overhead charges per barrel of output
have grown to alarming proportions. Revival of construction will remedy the
situation, but if it is delayed too long drastic revision of the financial
structure of some companies is indicated.
 To gain a proper perspective of the cement industry it must be
compared with other industries. Production of steel ingots in 1932
amounted to only 19 percent of available capacity, compared with
38 percent in 1931. This represents a decrease of 50 percent from
1931 to 1932. In 1932 the indicated domestic demand for asphalt,
a competitor of cement in the highway field, declined only 18.8 per..
cent from 1931. The drop in paving asphalt, however, was greater
than that in asphalt used for roofing, the only other large market.

~nn












PROD

(d




VALUE


' SHIPMENTS

——---I---"

~
j

I
/

I




~L CAPACITY~

J

~I

7


PRODUCTION/SHIPMENTS

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A\,



' 
200 — —
100 ~—_ —
IF
UCTIOP
,,1
—
~OO

' 00
 ____ ____ ____ ~ STOCKS
______ ....~   
 0 ____ ____ ____ ______________ * *** _._... — — 1).
 1980 1890 1900 1910 1920 1930

FIGURE 50.—Growth of the portland-cement industry, 1880-1932.


 Index numbers of the Federal Reserve Board, computed to show industrial
production compared with 1923—25 as 100, stood at 81 in 1931 but declined
to 64 in 1932. This index, of course, is weighted by industries less susceptible
to fluctuating conditions than cement or steel. Index numbers for cement
shipments calculated on the same base were 87 for 1931 and 55 for 1932. The
cement industry, therefore, was relatively active in 1931 but dropped below
the general business level in 1932.
 Figure 50 shows the relation among cement shipments, value, capacity, and
stocks. Although the centennial of the discovery of portland cement was celebrated
in 1924, the development of the domestic industry was slow until about 1900.
Normal growth was interrupted in 1918, but with this exception progress continued
at a relatively uniform rate until 1922. The cement industry then experienced
a boom which continued until 1928, the output increasing each year. Such
prosperity was bound to attract capital, and the increase in production was
accompanied by even greater activity in plant construction.