Evening star., 1949-11-13
U.N.GrOup
Asks World
Food Bank

Objective to Help
Prevent Another
Depression
By AdeIoids Kerr
LAKE SUCCESS.-The United
Nations has q plan to help heat
of any future depression.
1t will be laid before delegates
from So countries when the an.
nual conference Of the Food ano
Agricultural Organization, q u. N
agency, convenes in Washington
November 81.
The plan proposes establishment
of an international Commodity
Clearing House which would helr
the worlds farmers sell their agri-
cultural surpluses through inter-
national action to countries which
lack and need them. It would
work through the normal COM
mercial trade channels or through
government agencies.
FAC experts say such a clearing
house would be the first concerted
international effort to tackle the
vast problem Of surpluses, which
has plagued man almost ever since
he created money and started
trading across his country s
borders.
In many non-war years some
countries find themselves with an
oversupply of wheat, fats. sugar
rubber or other products which
other countries need, but cannot
buy because they lack the surplus
country's currency. Individual
states have tried to solve this
problem alone, but have failed to
such an extent that international
economists say their efforts in that
direction actually have contrib
uted % depression.
Commodity Problems Studied
Last summer FAC asked six In
ternational economists from Au-
stralia, India. Chile. the United
Kingdom and the United States
to study the worlds commodity
problems. They were headed by
John B. Condliffe. professor OF
economics, University Of Califor-
mia, and among them was J. K
Galbraith, director Of agricultural
and marketing research, Harvard
University.
The experts reported that sur
plus troubles again threatened
world economy and recommended
the clearing house as an effective
tool in dealing with the problem
They proposed it, not as cure
all, but as a bridge to the future,
when it is hoped that long-range
work which the United Nations is
doing to further worldwide pros
perity will bear fruit.
The economists said the United
States now has immediate pros
poets of surpluses in pork, pota-
toes, eggs, dried fruits and num-
',er of other perishable products
It also faces overproduction OF
ton, fats and oils. Economists
20 noted a threatened surplus in
Tsr, rubber, jute and other
cc.:cts in other parts Of the
Id.
n the past surpluses led to
cct economic difficulties which
,ched their peak after World
ar I. Countries which had sugar
nd other commodities they could
not sell at market prices dumped"
them in other countries by selling
at cut rates. The countries In
which they were sold retaliated by
establishing quotas limiting i'm
ports, or subsidizing their own
producers at taxpayers expense.
Some countries which had sur
pluses put restrictions on produc-
ton. These measures combined
to reduce employment among
warehousemen. mill workers, rail-
roadmen and others. They, In
turn, had less money to spend and
industry suffered in consequence.
How 1t Would Work
Neglect of sagging agricultural
prices and accommodating surpluses
in the period of apparent pros
perity following World War I con-
tributed heavily to collapse in the
great depression of 1929-33," said
the economists In their report to
FAC.
The proposed International Com
modify Clearing House, now In
tho outline stage, must be ap-
proved by the FAC conference and
ratified by governments before It
becomes a fact.
Under present plan 1t would be
chartered for i've years and any
U. N. country could belong to It.
1t would be operated by a man
ager appointed by the FAC direc-
tor-general, assisted by board of
IS commodity trade experts elect
ed by the FAC conference. Men,
Der countries would subscribe ia
its support In their national cur
rencies. in proportion to their ma
tional incomes. They would con-
tribute 20 per cent of a $5,00o,-
100000 revolving fund and hold
the other 80 per cent at home to
finance certain operations Il
needed.
A country having an embar-
RAISING surplus could ask ICCH to
find buyer for it. The clearing
house would do so II possible and
handle the deal. Sales would be
made by one Of two methods.
In the first, the selling country