Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-23
URGES ORGANIZED
|. Use OF SURPRISES
British Economist Suggests
Method of Caring for Over
production Problem.
BY JOHN F. SINCLAIR.


book dealing with overproduction He
calls it "Rationalism and Unemploy-
ment."
In this excellent little treatise Mr..
Robson expands the theory that the
tendency to overproduction is distinctive
" permanent feature in modern So
ciety, growing more marked as the
country becomes more industrialized.
Ever since the days of Ricardo
economists have been bordering the
question of how to balance production
with consumption. AS nations grow in
wealth the tendency to produce more
than the effective" demand warrants
has been q basic and major business
problem.
Mr. HobSon quotes official British
figures to show that from 1919 to 1928
production in Great Britain increased
80 per cent, while pay rolls increased
only 3 per cent.
The malady for overproduction, with
It's consequent plight of unemployment,
is one primarily of the distribution of
national income.
1.-THE economic wants Of man are
Alimitable,'' says Mr. Hobson. There
are would-be consumers for all the
wheat, wool, cotton, steel and other
goods that cannot, under existing cir
cun1StanceS, get produced. There is not
to buy these goods"
The remedy? Mr.. Hobson holds to
the theory of higher wages, which in
creases purchasing power; prices so
regulated as to insure a gradual ex-
pansion of markets; taxation which
prevents too large percentage of capital
accommodating, the collected taxes to
add to the real income of the workers
through various plans of social service
The Hobson challenge of Society'S
growth Is its willingness, and further its
ability, to so organize the use of its
growing SURPRISES which, after the needs
Of economic maintenance have been
satisfied, may be directed to providing
'the economic support and leisure
needed for the general enrichment of
non-economic life"
It's an arresting book, written for the
modern business man.
Short Selling of Grain.
All the furore against short selling by
the Soviet government on the Chicago
Board of Trade is very confusing to the
lay reader. But it Is just as confusing
TO the professional trader.
The Chicago Board of Trade is an
open Market free market where
every one can buy or sell wheat and
other grain without restriction.
It Is not unusual for large organiza-
lions and governments to hedge TO pro-
tect shipments It has been done re-
peatedly at Chicago in the last genera
ton.
But it happens that this short selling
BY the Soviet government has been going
on at a time when the wheat prices
have beeen extremely low. 1t may or
may not have affected prices. This viii
undoubtedly be brought out by the in
vestigation.
But the query. after all, Is: Can you
maintain free market and restrict any
one in their operations on that market?
And the answer to this question Is not
Affected one way or the other by the
person who happens to be active IN the
market.
Gold Holdings.
The Federal Reserve banks have ST.
coo .oO0, coo in gold, the Bank OF France
Almost ST .eDo. 0O0. 600 and the Bank OF
England about 5000 ,Oo0. 900. Certainly
ehe first two banks don't need It all
George =. Roberts. vice president, In
charge Of the National City Banks bui-
ietin, thinks the main troubles OF the
world today are due to the ''maladtust-
ment Of gold"
In recent bulletin the National City
Bank said:
"The large accommodations OF gold In
New York and Paris since 1914 have
resulted from abnormal conditions hav-
ing their origin in the war. In this
sense it is q maldistribution Of gold.
The two countries have more than they
can advantageously use and other
countries have less than they might adj
vantageously use"
Then this observation:
EN- the United States the additions
70 the bank reserves furnished the basis
Of the great speculation in stocks, and
TO q great extent the new supplies Of
credit were absorbed in this manner"
Mr.. Roberts goes on to state he be-
heves few people now viii dispute the
claim that the United States would
gold and less available credit" Had we
noE had the gold the growing imitation
OF the last few years would not have
taken place, with its resultant collapse
Of last FAN in the market
But what of the future? Gustav Cas-
sci OF Sweden and j. M. Keynes of Eng
land both maintain the production of
gold today Is not keeping up with the
growing and natural increase in world
business. This viii cause an appreci-
alton of gold, which in turn win spell a
drop in the world price level and q long
period OF business decline.
1t Is subject now being given plenty
OF study by world bankers and business
men.
Fortune in PineappIes.
Honolulu is the pineapple country. 1t
was young Jimmie" Dole, who, inme-
in 1899, went there and laid the foun-
dation of his business fortune by plant
ing pineapples.
The Hawaiian Pineapple Co. today
employs more than 5000 persons. op-
crates $4,000 acres and produces more
than 3,00o,o00 cans OF pineapple an
nually.
In recent weeks experiments have
been conducted, testing the new freez-
ing process for pineapples, which prom
1ses to revolutionize the food shipment.
Slices Of pineapple have been sub
jected to a temperature Of 40 degrees
below zero, and in six minutes 1t was
found they were frozen as hard as
glass. In such condition they will keep
forever, losing none of their flavor at
all at temperatures as high as Is de-
grees above zero
So this enables q shipper like Dole
10 send his product into all parts Of
the world with very little adjustment
Of cold storage facilities But one
should not drop the pineapple so frozen,
for 1t will break like glass.
It Is Just part of the new technical
process of sudden freezing which was
worked out In Labrador and found to
do wonders in the case of fish.
Not all foods can be thus treated
however. Watermelons cannot, for the
cold takes too long to penetrate to the
heart of the melon.
But quick, intense freezing Of food.
Is destined TO reYolutionize the food
business In the next few years.
Copyrisht, 1880. By North American News.
paper Alliancel
q. S. TREASURY BALANCE.
The United States Treasury baIanc,