Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-31
EUROPE VIEWS OIL
! WAR WITH ALARM
Industry Seen Threatened by
Catastrophe
Trade Loss Seen.
By GERyILLE REACHE.

By Radio 10 The Star.
PARIS. January Sl.--As the first
month of the new year draws to an
end. officia! statistics and bank reports
furnish material for a general survey
Of the world economic situation.
The wear 1927 was characterized by
4 tendency toward lower prices. cheap
If industrial production. together with
an increase in bank reserves. But
these phenomena, which ordinarily &C
company periods Of depression, have
produced neither panic nor crisis al
:hough considerable uncertainties hang
over the horizon.
Oil War Alarming.
The United States has been particu-
iarly concerned with the economic ols-
tribution and acquisition Of raw stuifS.
The British restrictions on rubber pro-
duct;on under the Stevenson plan con-
tinue TO worry the automobile industry.
and in a similar way the struggle be-
-ween the Standard OIL and tho Dutch
Shell group threatens a yeritao!e catas-
crophe in the petroleum industry II II
continues.
Since the appearance OF Soviet oil
On the world market. there are 7o.Ooo.-
900 extra barrels TO reckon With. when
came lust as the Seminole field alone
was beginning to supply four tunes
The total OF Russian production. ms
,1yeroroouction not only drives prices
down to the 1918 level. but launches
yprice war in various markets Stand
ard Oil has invaded the British mar
set through its subsidiary. Vacuum on.
which obtained permission TO con-
strlct reservoirs at Bombay. and also
is forging ahead in China.
Ii is quite likely that Standard on
will win If il be true that the flght
would cost the Dutch Shell-Burmah
combination over Sl2.0o0,0o0 a year
while costing Standard Oil only $4,000
600. But it is not desirable that this
struggle last too long. for the losses
would go on piling up. Staollizatlon
Of the petroleum industry oepenos
largely on control and restriction OF
American production.
Coal Industry Hit.
Moreover. over production also
threatens the coal industry as well as
the copper industry. as result OF the
Colorado discoveries and the new &C.
veIop-ents in Arizona. Doubtless cop
per will benefit by the progress OF
electriHcation throughout the Wor!o
and the creation OF a general capie
company which can regulate proouc-
ton and stabilize the market. But
the same Is not true Of other metals
such as lead. silver and tin. wnlcn
never again will see the enormous de-
mands of the past.
Only a resumption Of world ACTIVITY
efering new markets can cure this
oyerproduction. which through merg-
ers and consultations threatens 10
continue increasing IN all INDUSTRIAL
countries.
Customs agreements are proposed as
q ray out. The Pan-Americon Con-
rress al Havana has devoted much
time 10 this phase as far as Amerl-
ca is concerned. Geneva last year
made notable progress in conference
on restraints on commerce.
British Trade Loses.
This week President Goodenough OF
Barclays Bank pointed out that Ger
many would be the principal gamer oy
the creation Of free market WITHIN
Europe and that it was preferable lor
England 10 concentrate on developing
the empire. Meanwhile. British trace
is losing more and more ground IN the
doninions and especially in India.
II is apparent TO whoever studies the
situation that the only great uroe-
yeIoDed market extends from the Baltic
10 the Persian Gulf Sooner or later
we must take TO heart the words OF
Charles Il. Smith. vice president OF
the Russian Amer!can Chamber Oh
Commerce. who declares Russia.
whether Soviet or not. is capable OF
vast economical and financial develop
ment.