The Daily Alaska empire., 1931-01-29

Eventually the British discovered they merely had created a fins market for their competitors whilc I their own interests suffered. Wher ) they came back into the market prices dropped like a plunmet.
 Brazil, under the coffee valori- 2ation' plan, has had similar ex- lperience. When the government in- stituted an export tax and set up machinery for the physical control Of exports, Brazil had practically 'l the entire world business in coffee T By clearing all exports through Sac Paulo and allowing only a stipulated amount to reach the port of Santos, the Brazilians were able to feed the market just the quantity it would absorb and prices , were greatly advanced.
 Immediately coffee plantations sprang up all over the back hill country and stocks piled up until Brazil still has between 16,000, 900 and 22.C0O,OOO bags of coffee she : can't sell.
 Controlled By Brazil
 Other countries suitable to coffee Iculture started producing to such an extent that Brazil now controls only about two-thirds of the world industry.
 Coffee prices have tumbled and Brazil is in a maze of credit diff culties. A loan recently was obtain ed in this country In coffee, it faces the possible break-up of a typical commodity control system and no one. seems to know what is Igoing to happen.
 dThe Australians tried little dif- ferent system when the country got so full of butter it had very little value. The government paid an expert bounty and put Australian <. exports in position to undersell thoae of other countries.
 Butter Bobs Up
 Soon Australian butter wal S crowdlng the Canadian, New zea- land and European markets and l some of it came to the United EStates. Against their sister domin- ion, Canada a and New Zealand Fraiscd a tariff wall that the Aus ltralians could not scale.
 There have been several less inn fportant attempts to control other commodities, such as the Greek plan to stabilize the currant indus try and the Yucatan attempt to control sisal
 The American colonial tobacco industry ran the gamut of com- ' modity control measures. Ten years : after Virginia started planting to- ! bacco in 1920 there was a surplus. : Tobacco became legal tender and lthe very life of the colony dapend- ! ed on it.
 l Economists say that in the 100 years following, during which to- lbacco production and surplus diff ' ficulties spread to other colonies, the early Americans tried every gs plan now in use the world over and sEscme that are still contemplated to ] protect tobacco values.
 tss Closer to the moment, the North American continent. has seen the lef6orts of the United States and fCanadian governments to control ;Fwheat surplus, M
 4la5 Wheat Damned Up l The Canadians damned up their lgreat flood of wheat in 1929 in an- tticipation of better prices which never came. While they held some E200, 100000 bushels. off the market Ito ease the pressure, Argentina stshipped wheat until she had ex- ported more grain than the official ,| estimates figured the total crop ' yield to reach.
 l. The next year the United States Istarted a wheat-holding program and Russia, which had exported l8,C0O,000 bushels the year before, 3ean1e into the market with close to I80,CO0,000 bushels and foreign in- porting countries boosted tariff 'lrates so high their nationals were Il forced to consume native grains. t Both countries are hopeful of sluntangling the situation-the Unit 'ltd States by the reduction of acre. age and a return to domestic con- sumption basis-but at the pres ent their holding programs has resulted in the Canadian wheat l pool facing bankruptcy and the American government coming to the rescue of it's plan with some l$l18,o00,OOO in emergency stabiliza- ltion funds.