Evening star., 1936-06-28
Worlds Disappearing
Surplus of Goods
BY FREDERIC J. HASKIN.

Although 1t appears as the greatest
anomaly Of history, the fact remains
that a surplus of goods was the prime
cause of the worldwide depression
which has afflicted various countries for
the Inst decade. 1t probably would be
more accurate TO say that an infiruitv
in the system of distribution of goods
was the real cause, but, as long as the
business of the world is organized as it
is, the short title of the cause of de-
preston remains surplus"
Now, there is a distinct Improvement
in the world situation and this is the
best earnest Of better times everywhere
that can be shown. It is of more i'm
portance than any scheme of recovery
that any Government has devised.
The elder gods must laugh a great
deal at the struggling of mankind in
these later years of grace. For all the
previous history OF men, abundance has
oeen the great boon most prayed fer.
Sacrlflces OF myrrm and frankincense
and OF young lambs, yes, even of human
beings, have been made to insure good
harvests and plenteous production. The
bulging storehouse has been sought by
all nations in all centuries aforetime,
The horn Of plenty was not made a holv
symbol for nothing. Yet overproduc-
ton, surplus, the running over of the
cup, brought the world to a bitter pass
and caused hunger. Now that the great
piled stocks are perceptibly Iessening
better times are in store. With less in
the world the people will have more!
Wheat must be regarded as the most
important commodity produced by man.
1t IS his staff of life. The overproduc-
ton OF wheat dates back to the World
War. With millions of men withdrawn
from the plough to bear arms, the ma
tions became alarmed lest there be
shortage of wheat. In this, among the
greatest OF the wheat growing lands. The
alarm was so acute that the Food Ad-
mlnlStratlon imposed restrictions on the
consumption of wheat at home. Wheat
flour was to be mixed with less precious
grains. The same situation prevailed
elsewhere
The result was that wheat was planted
and harvested in a volume the world
never had known before. With fewer
men to work the fields, more was pro-
duced. Fallow fields were ploughed and
soWn and harvested. The same thing
happened in all countries. Instead Of a
shortage tremendous surplus was built
up. The speculative prices induced
farmers to acquire more land-in many
cases to their later ruin-and when the
war was over the momentum continued.
Wheat and more wheat was planted and
harvested. The bonanza prices began
to Shrink soon after the ArmiStice, but
the farmers had tasted gold and raised
still more in order to sustain their in
comes.
AS long ago as the Hoover administra-
ton the Government took steps to allav
the distress Of wheat farmers. Through
the Federal Farm Board it spent mil
lions in buying up and storing wheat 1t
sent wheat to China to get rid Of it. Il
traded wheat to Brazil for coffee. Ever
elevator in the country was stuffed
with wheat and it had to be stored in
freight cars on sidings. Farmers burned
wheat for fuel because the price had
sunk so low it was not worth while to
send it to market. There was no mar
ket.
That abundance which once would
have been regarded as the gift of more
than ordinary generous gods was lookeJ
upon as a curse. Today the fact that
world wheat stocks stand at only IL
per cent Of what might be regarded a3
normal is regarded as an encouragement.
One Of the most sensational of the
price declines took place in copper. The
price Of this metal was around 26 cents
a pound before the depression struck
:,
covered that copper stocks. both Of ore
above ground and of refined copper,
were overpowering. There was more
copper on hand than the would would
be expected to consume in years. The
price dropped to cents, with no sales.
Today copper stands at only 125 per
cent Of normal.
These figures look fantastic but when
it is considered that some commodities
have shown figures of 800 and 500 per
cent of normal, being a little above is
almost boom condition.
X -
When Herbert Hoover was Secretary
of Commerce he warned the country
that a lead shortage was impending.
Indeed, there was lead shortage then.
Lead pipes were being yanked out of
the plumbing systems of old houses and
lead roofs were being removed to be
sold in the rich market Then the world
developed additional lead resources and
the old story was repeated. There was
a lead surplus. But now the world
stocks on hand are down to about $50
per cent of normal, heartening sign.
So much rubber had been accumulated
in the world that the workers of Malaga
and other producing places were at the
point of starvation. No one wanted any
rubber. There was so much in storage
that rubber plantations were aban-
doned, the owners seeing no hope Of
revival Of the market. Yet today the
stocks in the world are down to l64 per
cent of normal or thereabouts.
Cotton was overproduced everywhere,
too. The price was so low that farmers
could not make the cost of production
in this country. The Government
undertook to have planters plough
under one-third of all they had planted
and at the next season, plant but a
fraction of their usual crops. To re-
lieve distress loans were made out OF
Treasury Golfers. Today cotton stocks
are only 1876 per cent of normal.
A few years ago the face Of the earth
was sprinkled with sugar. The ware
houses were crammed in Cuba to such
an extent that there was no more space.
Sacks of sugar were piled in the open