Evening star., 1925-12-27

II
Jannarr mHnrp " pei at.7 81 july T"''n 81 -oa.; J."
February -. $50 August 49,. $40
April .......... 43.6 October ...... .eS.
Inn. mIy 2Sa nemen1ftsr n".Tmsrr -. i"''
The price at one time reached Sl.21
per pound.
Production Of Rubber.
That the situation is wholly an arti
fetal creation is evidenced by the
fact that the normal world consump-
ton Of rubber for 1926 is estimated a
about $50, 900 tons. whereas the poten-
tial production if unrestricted would
be probably $4,000 tons. We are
therefore not in the midst of a genuine
rubber famine, but purely an artificial
one created by restriction on produc-
ton for the purpose of advancing
prices.
Our imports for 1925 will be about
SEQ, 100000 pounds and at normal
growth our consumption will be 300
900 900 pounds in 1926. AT the price
declared by the price fixing body as
fair to them, our next years sup
ply would cost us about 1924 900 900,
but at the present prices of Sl.10 per
pound ii Will cost us about 1890 .000..
600 or 1866, 900. 900 in excess of the
fair" price.
These increased prices of rubber are
very real thing to every family in
the United States. The price over and
above the so-called fair" price means
an increased charge of proba bly, $40
or $50 for each set of tires on light
automobile. and $50 to $40 for each
set on heavy car.
If present prices are maintained
against us. the excess sum of $3.50
100000 or 800. 600. 900 which we shall
pay is equal to more than twice the
net earnings for dividends on all our
electric power companies, or equal to
30 per cent more than the net earn
ingS for dividends of all oIir railways
II would seem, therefore. to be worth
some attention.
The dangers to our manufacturing
industry that may come through a
collapse in the price are so great that
some of the smaller manufacturers
have ceased production. as they fear
they could not stand the loss of sud
denly diminishing inventory values.
The problem we have to confront
is a most pertinent one. What can
we do to defend ourselves against
trade war being made upon us?
Measures That Are Possible.
Secretary Hoover says that the
measures that we can take of course
vary with each combination. | do
not wish to favor trade reprisals
Some of the following measures
would ultimately afford relief if we
had them organized. and all are
wholly defensive I'm nature:
!. Our bankers can be discoura ged
from giving American credits to the
support of these combina tons
systematic campaign for voluntary
saving in use in every one of the
commodities where these combina-
tlons become eXtortionate.
3. We should stimulate the manu-
facture and use of substitutes.
4. We should stimulate production
in countries where the commodities
in question are not likely to be sub
ject to such combina tons
-. We might set up some sort of
properly controlled machinery for
emergencies which would prevent our
many hundred buyers from bidding
against each other.
Secretary Hoover Concerned
Secretary Hoover is deeply con-
cerned over the implications of these
combna tions in the future of inter
national commerce or good will in
| the world. In a speech on this sub
| Ject delivered before the Chamber of
| Commerce in Erie. Pa, October 81
| 1928, Secretary Hoover appealed To
the other nations to abandon these
| wars upon us and other consuming
| nations, basing that appeal on the
J interest of the world as a whole
| He said:
/ Another alternative which has been
! suggested is that the consumer ma
| tions of the world should secure by in
ternational agreements the same
; rights which they would secure in a
! domestic monopoly: that prices should
/ he regulated under circumstances
! that the consumer has an equal voice
with the producer.
But | have no liking for any ac-
| tions of this sort. for they are either
! destructive of the one hope of the
! world = progressive production or
! they are recognition of the perma
| nent esta blishment of these policies in
! the future international commerce
! They contemplate international trade
| in an atmosphere of contention and
dispute instead of peaceful co-opera-
/ ton.
The problem should be met on the
! ground of what in the long run will
| produce good will and prosperity to
] the entire world, for no single nation
can disassociate its property from the
! prosperity and good will of all of them
/ Emerging From Chaos.
THE world is emerging from the
chaos of the war, and these govern.
| mental measures are no longer juSti
! fable, since the producers of the world
/ may look forward to more stable times
! We are also at the point where the
. whole consuming world is being driven
! toward destructive courses to protect
! itself from exploitation by these con
trolls. Therefore the time has come
when a solution of this problem is
| both urgent and more feasible.
! Il am convinced that the sound so
! luton does not lie in any of the alter
I natives | have outlined: they are al
I in the nature of last resorts. They
| recognize trade war. ] believe the
! solution does lie in the willingness OF
statesmen throughout the world to
/ recognize the consequences of govern
ment controlle production and price
and to meet th~ issue in tho only way
/ il should hc mot; that j.. by abandon
m2nt II all such governmental action.