Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-06-27
ARTIFICIAL PROPS
TO PRICES REACT
Rubber, Coffee and Tin e.
forts hurt Those Who Should
= Have Benefited.

snecial Dispatch 10 The star,

SURGICAL Dispatch 70 The Star.
NEW YORK, June 27,-Efforts TO in
tinence or to sustain commodity prices
by artificial means. either backed by
Government or by private individuals
or corporations. have reacted heavily
on those making the effort, TINS Is
shown conclusively today by the STU
alton in tin.
Six months ago an agreement was
reached in London by when factors
in the tin industry agreed TO sustain
the price of tin or push II ABOVE the
levels existing at that time, AS result
of that policy. tin production has grown
until one Of the greatest experts IN
this field estimates that the price for
the next two years. II regulated by sup
ply and demand. will be something like
cents pound under the present
figure. This is in spite of the fact that
consumption will be heavier this year
than ever before.
Higher Prices Unlikely.
= The present demand is sufficient, ac-
cording 10 many judges. 10 hold tin
quotations close TO present levels, but
the prospects of return to the higher
prices of 1927 are growing DINNER.
These artificial props to the market
have reacted against those invoking
them in other lines also. The rubber
market. which was upheld for period
of years by the British colonial gov
eminent. has dropped sharply. The
Brazilian government is attempting TO
maintain coffee at high prices through
similar procedure
1t is pointed out by the j. Henry
Schroeder Banking Corporation of Lon
don that the efforts of Brazil to force
upward the price Of coffee has not
really benefited the growers OF that
country as much as had been supposed.
Brazil has the advantage of climate.
soil and other conditions, by which
planters can make a profit at prices
impossible for growers of other coun-
tries. But the maintenance OF high
prices for coffee has so stimulated
production in other countries that the
ground is rapidly being cut from under
the feet of the Brazilian planters.
Overproduction Danger.
The danger of overproduction is acute
In all the maintaining and smelling
industries. There are ample stocks OF
aluminium in spite of the fact that the
chief industry has slowed down its rate
of production and that the automobile
and aircraft trade is taking a terrific
tonnage of this metal. Prices are below
the levels established last year and
plant capacity IS such that no inme-
date improvement is intimated.
Silver production capacity is far in
excess of demand. despite the fact that
China has been a recent purchaser OF
silver, and that this has showed the
price above the 60-cent mark to the
highest point reached since 1925. That
very fact has so stimulated Mexican
production as to nullify the good eff
fects for American producers in large
measure. Great Britain controls many
OF the larger Mexican properties and
buyers than United States silver pro-
ducers can hope to be.
Nickel Output Expanding.
Nickel production is expanding and |
consumption is keeping pace. This is /
due largely TO the developments IN the |
steel and automobile trades. Many |
leading producers are at 90 per cent of |
capacity or better. Prices are steady. |
but any decided increase in production |
undoubtedly would mean curtailment |
Of profit margins.
Copper has risen sharply. in past
months. owing TO the strong statistical
position of the industry, but now pro-
duction is growing sharply, and unless
output is sanely regulated there is
danger of oversupplying the market.
Today stocks have not been materially
increased In consequence prices are
higher than at any time since 1925.
These advances bid fair to be main
tanned, but additional increases in price
are unlikely in view Of large outputs
and the fact that mine capacity is
wei In advance Of any possible de-
mand.