Document M4XryVgEYNVLRq0B1qnxENOK9

probably will be negligible and certainly will not be great enough to bring on a busi ness recession. At the time McGraw-Hill Interviewed top execu tives, some companies had not yet approved their 1948 capital budgets. Under the extreme assumption that those particular companies will mako no capital expenditures in 1948, industry's 1948 bill for new plants and equipment will run to $14.9 billion, or 8%> below last year's record figure. Under the more real istic assumption that those companies will cut their capital investment only as much as the companies which had already drawn up their plans (or 1948, In dustry's 1948 capital budget will run to almost $15.8 billion, a decline of only $300 million from 1947, Thus the over-all conclusion of the McGraw-Hill survey Is that capital expenditures by business will be only slightly lower this year than last. 3. Business executives will not slash their 1948 capital budgets unless they are con vinced that a real slump is in the offingand they are not convinced now. Almost two-thirds of all manufacturing companies Bay they would not cut capital budgets sharply even if business activity declined 20%. What Is more, even a 15-20% boost in wage rates would have little effect on projected capital budgets. If wages go up, 57% of manufacturing companies would not change their capital budgets, 26% would increase them, and 17% would cut them. . 4. Most executives look for an increase in their company's sales this year. - More than half of aU manufacturing companies arc planning on a sales Increase over lost year of 10% or more. A third of them say soles will be about the same as in 1947. And fewer than 10% look for lower sales. 5. Manufacturing companies will finance much of their purchases of new plants and equipment in 1948 from funds set aside out of past or current earnings. finance this year's capital expenditures la 1*^ from current profits and past savings, olJ indicates that, to do so, they will use up most funds they earmarked during the war for this pose. So in 1949, Industry must go to the capital kets or to the commercial bonks If it is to i to spend for capital purposes. If the securities u continue to lie in the doldrums, as they will present tax laws, only companies with triple A ratings will be able to raise funds that way. ,6. Purchases of new plants and equipm* may fall off in 1949 The McGraw-HUl survey collected .all ny..,,,, evidence on plans for 1949 capital budgets. Tet* than 40% of all manufacturing companies now haS definite plans for 1949. Of those that have pUns,wi intend to spend less than In 1948,30% plan to q the same amount, and n quarter expect to spend a These preliminary decisions would seem to i that capltal investment may fall off in 1949. 7. industry's production capacity in 1 will be far above prewar. Manufacturing capacity will be more than 50^ greater than in 1939 once the present wave of posh building Is complete. Almost a third of all numuL luring companies report that tbeir capacity wifl L double or. more than double the prewar figure. Thu] 1949 may see a huge increase In production, of n things that now are hard to buy. The last two points in this summary ram t 1949 will be a critical year. We must forestall & t den drying up of capital expenditures In that yi~ We must bo able also to absorb a great outpouring d production both of capital and'consumer goods. 1 What will happen to business In 1949, therefoX will depend on how successful we are this year dealing with such momentous problems as tax&ft foreign aid and prices. But 1949 can be a good 3 too.. The next editorial in this series will discuss I pivotal problem of taxes. Utilities and railroads, on the other hand, must go to the securities markets -or commercial banks to . finance most capital expenditures. Although manufacturing companies sqy. they, can President, McGrau>HiU Publishing CoffiponVi nos ts nts un or-x-aauEs- Pf Calculations Made Easy 'flier, ore many waye to <otv ,r-factor problem*. Here', C Oldroyd, of Birming England,, make, eimple i-rule calculation,. Hi, lhandy pf nomogram will All a imfiil place in anypower plant ;;>Ts( AKTiCLi "Homemade Calculator 'fom Power Factor." p 103, October iM6 Power, mokes rather heavy gotog - of a comparatively simple operation. Pover-faetor values can easily be ob totted frees kilowatt and kilovar retd* scale and read result above the B scale Index on A Kale. Add one, geataUy, and act unity on B scale to this new re sult. Tho final result (Z) may be read on D scale under R on C scale. - Example: Given the cosine of on tsjp^ using an ordinary tilde rule. The angle,* find the sine from equation: solution Is self-contained and {iocs not sine Vt -- eostn^ ' require trigonometric tablet. On the slide rule, set kilowatt* on C scale ibove kilovari on D scale, and Set indicator to cosine value on D Kale, reed result on A Kale, teed backward, set indicator to this result, read forward ! rad the result on ri'ecale opposite th b* fades on B scale. To this value add (.out, nentally. Move the Index on B `yicete to this new result on /f tesla. 'P^ver factor may now be read on C Kale apposite the index on 0 acxla. . ; Taking the example In the article, <1**! 20,000 kitovara on D scale against on A Kale, and read value of sine im mediately below on D scale. Problemteoelne = 0.8; then find the sine. Set indicator to 0.8 on D scale, and read 0.64 on A Kate. Read A scale backwards, counting the right index as xero, the nine as one, the eight as two, -djWOO kilowatts on C scale, and read ' hill on A Mole, above the right-hand fades of B scale. Adding one to this i.rtnlt, act the left-hand index o! B Kile to I.IU on A scale, and read 9S% scale above the right-hand Index 0 scale. 4aey other vector problems .can be ."bed In a similar maimer on,q slide *ule. The following may be of Interest: . ` Square root of the sum of ^tSqua^es: . and so on; the figure 0.64 reads os 0.36. Setting indicator to 0J6 on A scale, read 0.6 on O scalo Immediately below. If unskilled personnel have to carry out these calculations the, nomogram in the diagram quickly determines power factor from readings of kilowatts end kilovars. When* calibrated over suitable ranges end with a straight edge placed across known values of eetlve and reactive components this nomogram gives the >. g-vyrn?. ... --V(4y- stnn*e In the form: power factor on the horisontal 'center scale. As long as the ratio kvar/kw remains unaltered, for any particular values of kw and kvsr, or mw end , (-T1 on D scale, opposite 1R) on C rover* scalo values, tho kw end kvar rl .* t 1-0 2 -Uo values con be adjusted by multiplying by the same constant - factor. For ex ample, 6 row on the chart can be'Aiultiplied by -10 and read as 60 mw; timilsrly 2 raver is reed as 20 mvar. The power factor of 0.9S is Indicated on the horizontal cosine scale, which, of course, requires no modification^ This is the same example as the one in Oct 1946, Power. `Own March 1948* (147) 99