Evening star., 1933-06-12
BY ARTHUR CRAWFORD.


Possibilities of international action
for a coordination of supply and de-
mand of primary commodities through
control of production will receive con-
| sideration by the World Economic Con-
ference.
1 International agreements Of this ma
ture would be in harmony with and
would supplement such measures as
| are now being taken in the United
States through the farm act and the
| industrial recovery act.
The preparatory commission of ex-
perts thus epitomized its view on this
point:
Some Of us have felt that a greater
freedom of international trade Is not
the sole remedy for the present crisis
that the crisis has revealed profound
disorganization of production and dis
tribution. and that, on this point also,
joint action by the governments Is
necessary for the recovery of an eco
nomic system threatened by bank
ruptcy.
Concerted Action Urged.
I'VE take the view that concerted
action by the governments in selected
fields of production and trade may be
effective, either in the direction of facil-
itating and regulating the efforts al
ready made by certain classes of pro-
ducers, or in alleviating the unfor-
tunate results on the general economic
situation of interventions which are
prompted by unduly narrow national
considerations"
A special committee of the Interna-
tional Chamber of Commerce, in urging
control of production by national and
international agreements, said:
voluntary international co-opera-
tion between producers is capable of
diminishing or alternating the inter-
day; producers should openly acknowl-
edge their duty to promote such COL
laboration, due account being taken of
the consumers interests and of the
needs of individual countries"
The abnormal fall Of prices of pri-
mary and agricultural commodities has
been attributed to a diSequilibrium OF
supply and demand. A coordination of
supply with demand is obviously
needed.
The normal method for the correction
of situation of this kind is the elimi-
nation of the marginal producer and a
consequent reduction of supply through
losses, bankruptcies and liquidation, a
process that carries with it a heavy
toll
The alternative is a control Of pro-
duction. Congress has taken far reach
ing and unprecedented action for con-
troll Of production of basic agricultural
commodities by various devices. The
industrial recovery bill contemplates
similar control of other lines of pro-
duction. Antitrust laws are being
waived to make agreements for limiting
production possible.
to insure the effectiveness of production
control methods of the United States
and other nations.
Cartels Recalled.
There have been agreements between
producers of different nations in the
past by means of cartels and other
schemes. 1t has been thought that
some of these agreements have con-
tributed to the economic disorganiza-
ton. There will be difficulties and dam
gers in working out such agreements as
are now proposed.
The commodity which has been most
discussed as proper subject for an in
ternational agreement is wheat. The
Roosevelt administration has had a
delegation in attendance at a confer
ence Of wheat producing nations in
Geneva. Previous efforts extending
over several years to secure an interna-
tional agreement to curtail production
of wheat have proven futile. The Farm
Board had representatives at confer
ence at London during the Hoover ad-
ministration at which it was proposed
to apply a system of limitation of ex-
ports. At that time the United States
was not willing to enter into an agree
ment. In more recent discussions the
export limitation has been combined
with an agreed limitation of the areas
Sown. The purpose would be to absorb
gradually the abnormal stocks which
have accumulated through the failure
OF supply to adjust itself naturally to
demand.
The continued decline in prices in
general and wheat prices in particular
has intensified the wheat problem. The
excess supplies of wheat have been
maintained, although the purchases of
wheat by Oriental countries have been
stimulated by low prices and the guam
tity of wheat used in this country for
feeding live stock has increased. Pro-
duction continued to exceed consump-
ton through 1880 and 1881. With short
crops in Russia, the Danube basin and
the United States in 1882 production
and consumption were just about bal
anced. World supplies, however, have
remained excessive. Restrictions on
imports Of wheat imposed by many
european countries have contributed to
difficulties. In some of these countries
prices of domestic wheat producers have
been maintained considerably above the
world price.
Committee at Work.
Certain commodities whose produc-
tion and sale is controlled to a greater
or less extent in some countries may be
the subjects of international agree
ments. These include timber and coal.
A committee representing five European
timber producing countries, Austria, Po-
land, Czechoslovakia, Rumania and
Yugoslavia, has been trying for a year
to bring about an agreement with
view to restricting the total exports
from these countries. Little progress
has been made in negotiations extend
ing over several years among some of
the coal producing nations.
1t has been proposed that the world
economic conference should consider
agreements in connection with sea, land
and river transport with a view to i'm
proving the economic condition of the