Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-02
COMMODITY PRICES
ARE STILL SAGG|NG
AnnaliSt Index Nearly 10 Per
Cent Below Base Level
of 1913.
BY JOHN F. SINCLAIR.

NEW 1OENEAs MulCA 80 Ou6h
untiring work, Arthur Henderson, Brit
ish foreign minister, has secured the
cooperation of both France and Italy
to the London naval pact. This ac-
cord puts teeth into the London
treaty-at least until 1896. 1t should
mean vigorous reductions in military
expenditures. Millions of dollars can
thus be saved by each nation.
Already the committee OF experts at
Geneva has agreed upon a budgetary
method of reducing arms at the 1882
World Conference.
Not in years has a more significant
and encouraging event happened IN
Europe. Premier Mussolini shaking
hands with any one is an event. But
when he joins hands with Aristide
BRAND and Arthur Henderson to make
effective the five-power naval pact 1t
becomes an occasion of world i'm
portance.
Commodities Sag.
The outstanding feature of last week,
according to the Annalist, was the
marked sagging of the commodity price
level. The Annalist index dropped l.5
per cent-and some groups have
reached the 1918 level.
The index, as composite, is slightly
less than 10 per cent below the base
level of 1913.
"There are a few upward-moving
current records, but no absolute figures
in each case show increased activity;
the higher level, when allowance Is
made for seasonal gains, is in effect
recession" says the Annalist in its
latest survey of business.
Canada Bans Soviet Coal.
Canada's decision to ban all Soviet
government imports of coal, wood pulp.
pulp wood, lumber, furs and asbestos
was not unexpected. Ever since the
visit of Premier Bennett of Canada to
Washington there have been rumors
that Canada and the United States
would develop similar policies with ref
erence to Russian imports.
Forced labor IS the basis OF the Ca
madam ban, as it was in the United
States. In statement the Canadian
government declared that Russian po-
Iitical prisoners are being exploited and
forced to work in cutting wood and
transporting timber and coal.
The Russian standard OF living,
the Canadian statement continues, rs
below any level conceived of in Canada,
and, broadly speaking, all employment
is in control of the Communist gov
of work, and seeks to impose its will on
the whole world.
This is Communism, its creed and
its fruits, which we as country OPP
pose and must refuse to support by an
interchange Of trade"
Soviet Trade With U. S.
But the Soviet government is still
hoping for different treatment. 1t
wants to do business with the United
States, and Soviet officials are asking
what kind of proof they must produce
to show that the goods which they send
into the United States are the product
of free" labor. A ship load of wood
is to be sent to the United States as a
test case. In the meantime Soviet trade
with the United States is slipping.
Reports indicate that during the fis-
cal year from October /, 1929, to Sep
TENDER 80, 1880, the United States sold
to Soviet Russia l40,000,000 worth of
goods, while Germany sold Sill, 900
worth during the same time.
But during the first four months of
this year German sales have amounted
to 100000, 900, while the United States
totaled but $1s,0O0,o0o.
Dumping Methods"
Ivy Lee, New York publicist, who has
made a special study of Soviet Russia,
believes Russia has been forced to adopt
dumping" measures in recent months
Being deprived of long-term credits,
the SoviL. state had outstanding in Eu-
rope and the United States substantial
short-term credits maturing in 1880,
said Mr.. Lee.
These credits can only be met by
the shipment Of commodities. The
government had planned to ship sufi-
Gent commodities TO maintain the
gold with which to pay of these
credits. But there was a drop dur
ing the year of some 20 per cent in
the value of commodities. Hence there
was no option to the Soviet government
other than to increase to the utmost
the quantities of its shipments abroad
OF anything which it could turn into
gold"
That's another angle to the compli-
Gated picture!
Weakness in Plan.
Mr.. Lee believes the weakness of the
Sovist plan lies in two directions: First,
1t does not give to the individual hui
man being the possibility of enjoying
those satisfactions which have consti-
tuted the chief impulse for individual
economic endeavor in the past; second,
it does not give men freedom.
THE development of Henry Ford,
Westinghouse, McCgrmick or a j.
j. Hill would be almost unthinkable
under the Russian system-deStroy that
individual energy, enterprise and initi-
alive, and you destroy one of the great
est mainStrings of material progress"
said Mr.. Lee. "All history teaches this.
And the bolsheViks can no more escape
the lessons Of history than they can
push back the times"
Il fhak eI1n
be allowed to work out her own destiny
--unmolested. If 1t is good, it will live;
and If it isn't, it viii die out.
Farm Board Policy.
Now the shoe is on the other foot
Europe is astonished that the United
States Farm Board has decided to sell
IS, 900, 900 bushels of wheat in Euro
pean markets at price lower than that
maintained in the United States.
What is this? Just another Rus
sian dumping episode?" ask the Euro
peans.
When the Farm Board decided to- go
into the market with Government
money and stabilize the price of wheat,
Canada and Argentina both threw their
hats in the air. because it meant the
withdrawal of their largest competitor
out Of the European market.
DO lcI LLIe past ANt niOhstiS t.iSsS
two nations have been unloading their
grain 10 Europe as rapidly as they
could. The Farm Boards decision to
sell this vast amount of wheat has as
tonished Europe The figures show that
Russian wheat is now sold at about 10
cents a bushel under the price Of the
best Canadian. So if America expects
to sell. It will have to get its wheat
price considerably under this Canadian
figure.
copyright, 1891. by North American News
paper Aliiance)