Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-16
lATTEMPTS TO CUT COMMODITY
PRODUCTION HAVE BEEN FUTILE
Latest Effort In Zinc Trade Recalls Fail
ures to Keep Up Prices In Other
Raw Materials.

| the tire companies operating ct the
highest rate In several years.
No fewer than 10 commodities are
now or have been until recently under
some form Of local or worldwide price,
fixing scheme. In the list are rubber
steel, zinc, tin, sugar, wheat. cotton
coffee, copper and oil. The steel cartel
does not include the United States, nor
Is this country much interested in the
zinc, coffee and tin schemes, not being
a world producer.
zation plans, whereby the Brazilian
government and states attempted by
means of foreign loans to buy coffee
and hold 1t OF the market, had much
to do with the recent political revolu
ton. AS upholders Of coffee prices. the
schemes were notorious failures, and IL
Is only now. with general recognition of
that fact, that the coffee industry is
showing some signs of improvement.
Britain's experience with rubber
BraZils struggle with coffee. and later
Canadas flaSco with wheat IN organic
ing the government wheat pools, did
not deter this Government from launch
ing its Federal Farm Board stabilize
ton enterprise for farm products
Farm Board operations cover princi-
suited in the accumulation of an es-
timated holding of $50, 600 900 bushels
of wheat and 1,500, 900 bales of cotton
At the same time both products have
sunk to the lowest prices in a good
many years, the Farm Board operations
having been powerleSS to hold the
domestic market above world markets.
The fundamental trouble has been, of
course, the inability of the board to
compel reduction of acreage. In any
event, reduction of acreage here prob
ably would have meant increases in
other countries.
Sinking Of copper prices to ~ and
IN cents q pound new lows for the
metal, probably WIN mean a further
Tightening Of the copper curtailment
agreement, which includes most of the
worlds principal producers.
Restrictions went into effect late
last year, and after a moderate re-
duction Of surplus stocks, it turned out
that production was stfll too large In
comparison with consumption, and
stocks again began TO mount, driving
down the price. Recently fresh at
tempt was made to increase the output
restriction, but 1t was futile. Eoranda
Copper Of Canada refused to come in,
not because Of opposition to restric-
posed restriction was not drastic
enough. Copper men expect that the
turn for the worse will force resump-
ton Of negotiations IN short time.
Oil Industry.
Oil curtailment is having q difficult
time, and in the East Texas flush fields
crude is going for cents a barrel
Gasoline has been selling wholesale for
as low as 22 cents a gallon. Texas
has a restriction law but it lacks teeth
A special session Of the legislature has
been summoned to supply the needed
dentures. Oklahoma has a strict pro-
ration law, but it has been ineffective
in holding down output for the coun-
try or in maintaining prices. Some
what better success has been had ir
California
As Wall Street views it, price il
natures own and by far the best rem.
edy for maladjustments of supply anc
demand. 1t is often bad tasting dos
to swallow, but it is invariably curative
in its effects. Anything smacking o.
restriction or price fixing is regarded
by Wall Street as at best a mere tenn
porizing expedient.
tCopyright, 1879