showed an index number for the year 1937 of 104.6 for retail turnover of chemical products and drugs (1936-100).

CARTELS AND AGREEMENTS

During 1937, according to reports, there were no marked changes in existing agreements between the various producers in Switzerland and those in other countries. The international cartel agreement, originally concluded in 1931 for the purpose of regulating prices, sales, and terms in the marketing of sodium chlorate, was extended on March 2, 1937, to remain valid until the end of October 1938.

No changes were made in the existing contingents, quotas, and similar restrictions imposed by the Swiss Government on chemical imports. Certain confidential measures governing imports from France, Italy, and Belgium remained in effect during the year. Exports quotas were in effect in relation to shipments to Germany, Rumania, Turkey, Greece, and Iran.

The Swiss industry encountered various difficulties of foreign trade, especially in the growing autarchic tendencies in a number of its customer nations. Owing to the operation of the Swiss-German clearing agreement in 1936 and early 1937, it was possible to conclude only relatively short-term contracts which led to unsatisfactory and uncertain trade relations between the two countries. In June 1937, the exchange quota was increased from 60 to 77 percent of the quota existing prior to the devaluation of the Swiss franc in September 1936. The new clearing agreement, effective until June 30, 1938, worked out fairly satisfactorily.

The chemical trade with Spain continued to be very limited and was confined to unimportant individual transactions with buyers in insurgent territory.

At the beginning of 1937 the compensation agreement with Poland, actually a barter arrangement made by individual exporters, in general was satisfactory, as was a similar one with Bulgaria. In the last half of the year, trade with Hungary was satisfactorily resumed under a "modus vivendi." The new clearing agreement with Yugoslavia concluded in July, functioned in a relatively satisfactory manner. Increased imports from Rumania enabled Switzerland to liquidate outstanding accounts and even to increase its chemical exports to Rumania.

Trade with Great Britain and the Scandinavian countries in 1937 remained practically at the 1936 level. Sales to France, however, decreased as a direct consequence of the difficult situation in the textile and other industries.

FINANCIAL POSITION OF THE INDUSTRY

The capital investment in registered companies in the chemical industry decreased in 1937, but the number of companies engaged in the manufacture and/or marketing of chemical products increased from 516 in 1936 to 541 in 1937, according to data supplied by the Federal Bureau of Statistics. The 541 registered companies had a total capital of 164,868,000 Swiss francs in 1937, compared with 516 companies with a capital of 184,792,000 francs in 1936. There are, in addition, a number of privately owned enterprises not carried on the register.

The reports submitted by the leading manufacturing companies at their annual general meetings held in 1937 showed that business of the companies in 1936 had been highly profitable and, in most cases, had permitted extra dividends to shareholders after sizable sums had been set aside for improvement and equipment, and after allotments had been made to the workers insurance and pension funds.

Although business reports for 1937 were not available at time of preparing this report, all indications are that the companies were even more prosperous in 1937 than in 1936.

EMPLOYMENT

At the beginning of 1937 the chemical industry employed 11,412 persons, and an additional 788 by the end of the year; the average number unemployed was 59, compared with 93 in 1936. The favorable position of the chemical industry is evident when compared with the building industry, which had an average of 32,302 unemployed, and the metal, machine, and electro-technical industries, with 7,475 unemployed.

PRICES

Prices of most of the chemical products included in the official index recorded advances. Average prices at the end of the year (based on July 1934-100) were: Artificial fertilizers, 93; carbide, 143; coal-tar oils, 180; denatured alcohol, 83; dyes, 185; industrial alcohol, 92; nitrogen, 64; phosphates, 114; basic slag, 60; and turpentine, 74.

The average declared values of exports for the most part were considerably higher than in 1936. The devaluation of the Swiss franc is considered chiefly responsible for the general advance in prices for raw materials imported; however, such prices in only a few instances showed an increase sufficient to compensate for the devaluation. The falling tendency on world markets during the closing months of 1937 served to lower prices of imported chemical materials.

DYES

The continued predominance of dyes, as compared with other chemicals, is evident from the fact that the single item "aniline, anthracene, naphthaline, and other coal-tar dyes, n. e. s." accounted for 47.7 percent of the total value of the chemicals exported in 1937.

Intensive efforts on the part of several nations to supplement foreign products with domestic goods has made it more necessary than ever before for the Swiss dye industry to maintain qualitative predominance. Research was carried on intensively in 1937, and developments continued along technical lines. A total of 55 new dyes were placed on the market by the 3 leading manufacturers, Ciba, Geigy, and Sandoz. Included among these were a series of special dyes for use with artificial and mixed fibers. Chemicals for the textile industry, including chemicals for use in improving fastness of dyes, dulling, leveling, humidifying, and finishing, were developed.

In most countries, the textile industry was well occupied during the first half of the year, and there was a brisk demand for dyes, but after the summer demand fell off, especially in France. The SinoJapanese conflict practically closed the Chinese market; and sales in

Japan became sporadic partly because of decreased occupation of the textile industry there, but more particularly because of Government restrictions on imports. A certain compensation for this situation, however, was afforded by the Indian market, since decreased pressure of Japanese competition stimulated the Indian industry with increased demand for dyes. The dye business in England, Belgium, the Netherlands, and the Scandinavian countries was satisfactory. The Italian textile industry was well occupied and was able to increase greatly its consumption of Swiss dyes. Restrictions on the free exchange of goods and payments interfered with the trade with the Balkan countries.

Branch factories of Swiss producers in important foreign sales territories, reported to be of steadily increasing importance as manufacturing bases, maintained good business during 1937.

Exports of Aniline, Anthracene, Naphthalene, and Other Coal-Tar Dyes

Imports of aniline, anthracene, and other coal-tar dyes totaled 648 metric tons valued at 7,339,544 Swiss francs in 1937, compared with 882 tons valued at 7,784,886 francs in 1936. Of the 1937 total, Germany supplied 539 tons (6,584,300 francs); France, 46 (299,683); Czechoslovakia, 5 (121,022); Great Britain, 17 (116,215); Netherlands, 23 (89,197); and the United States, 9 (81,659).

Despite war conditions, China remained Switzerland's best customer for indigo, purchasing in 1937 a total of 502 tons valued at 1,068,340 Swiss francs, out of a total exportation of 656 tons valued at 1,763,549 francs. Other leading purchasers were India, Anatolia (Asia Minor), and Netherlands Indies.

MEDICINAL AND TOILET PREPARATIONS

The pharmaceutical industry, like the dye industry, is dependent chiefly upon its export trade which, in 1937, continued brisk, particularly in the overseas markets. The European trade was ham

pered by quota provisions, exchange restrictions, and other trade barriers. The index number for retail turnover of pharmaceuticals in 1937 was 104.4 (based on 1936-100), and of perfumery, soaps, and toilet preparations, 105.4.

Existing agreements between Swiss and foreign pharmaceutical manufacturers continued in effect and exerted a rather satisfactory influence on the control of production and prices, and on the creation of outlets for the pharmaceuticals. There were no marked changes in the agreements. Manufacturers continued to stress the necessity for scientific research.

Particular attention was paid to vitamins and various crystallized products obtained synthetically. Research in synthetic medicines continued, but only a few new preparations of importance were placed on the market, owing to the prolonged periods required for experiment. These included an antiseptic for diarrhea, a preparation for treatment of bronchitis and other affections of the respiratory organs, a diuretic medicine, and a spasmo-analgesic preparation. The synthesis for vitamins B-1, B-2, and C were further developed. Progress was made in the development of vegetable alkaloids, and the study of hormones was actively promoted.

Imports of medicinals and toilet preparations decreased in quantity from 1,127 tons in 1936 to 1,114 in 1937, but the values increased from 10,336,806 francs to 12,211,147 francs. Germany was the chief source for pharmaceuticals and France was second. The United States moved from fifth to fourth place, having supplied 39 tons valued at 244,500 francs.

France led as the chief source for perfumes and cosmetics, with 1,473,400 francs, followed by Germany, Great Britain, and the United States.

Exports increased in both quantity and value, from 1,913 metric tons valued at 32,670,000 francs in 1936 to 2,321 tons, 45,876,000 francs in 1937, of which the pharmaceutical class was the most important, followed by perfumery and cosmetics. Exports of perfumery and cosmetics rose over 30 percent, from 413 metric tons valued at 9,939,000 francs in 1936 to 515 tons valued at 12,967,000 francs in 1937; the chief purchasers and value of exports (in francs) were: Germany, 1,556,600; France, 1,411,000; the United States, 1,395,800; Great Britain, 1,340,000; Italy, 664,800; Brazil, 644,300; Argentina, 606,800; and Japan, 541,200.

INDUSTRIAL AND AGRICULTURAL CHEMICALS

From year to year there is little change in the domestic production of agricultural and industrial chemicals, and 1937 was no exception to the rule. Both imports and exports, however, showed considerable improvement in 1937 when compared with 1936. Many of the classes in the official statistics are very general and no detailed analysis is possible. Most of the industrial chemical trade is with European countries and the United States.