"America has already given us that perfection of methods of production. . . . Now we have reached a point where we dare hope . . . that American genius may be able to devise a definite formula which will allow this world to establish a more lasting and satisfactory balance between manufacturer and consumer. . . . For this last problem, as I see it, is the most important practical issue that faces the people of the year 1930." So last fortnight wrote Albert Einstein in a statement for the U. S. Press.
Even while learned Professor Einstein was formulating his statement, a learned U. S. attorney, Thomas Lincoln Chadbourne was in Brussels attempting to persuade the world's sugar-growers to adjust production to consumption (TIME, Dec. 15). Although he had previously succeeded in uniting Java growers with the Cubans, he failed to draw the European beet-sugar producers into the agreement. Just as the conference was drawing to a close, the powerful German delegation left Brussels, announced they could not conform to the schedule given them. Private negotiations will continue, for other nations have agreed to the restriction, contingent upon Germany's eventual consent. But for the present, sugar remains one of the commodities in which overproduction outrides profits.
Practically universal is the present condition of overproduction. Some of the suffering fields have made notable but unsuccessful attempts to save themselves.
Rubber. In 1922 the British Empire passed the famed Stevenson Act which restricted the export of rubber from British colonies. Although British exports were checked, Dutch competition grew more intense, more rubber trees matured in British territory. In 1928 the restriction was removed. Since then, "tapping holidays" have failed because of the lack of cooperation from native growers.
Rayon. More than 80% of the world's rayon production is controlled by a small, potent group. Members are confined to one specialty, underselling in foreign markets is prohibited. Yet last week the rayon group met in London, failed dismally to stabilize prices.
Wheat. The Canadian Wheat Pool was a full-fledged organization in 1924. It attempted to control world prices, failed. The Federal Farm Board, set up last year, has pegged the price of wheat in the U. S. but found no way of disposing of its surplus. The result may be transferring the loss from the farmers to all the taxpayers. To limit production in future, the Board has for months been urging, begging, warning U. S. farmers to plant less wheat, at least 15% less. Last week the Department of Agriculture reported a 1.1% acreage reduction in 1931 winter wheat. Meantime, the new Canadian crop is reported about 30% bigger than last year.