(3 of 3)
Exporters, Inc. was formed in 1926 to fix the price of copper in Europe, and for a long time U. S. producers seemed to have a gentleman's agreement on price. In copper as in other U. S. industries, however, anti-trust laws prohibit definite price agreements. Copper producers now are attempting to curtail production, but the price was back last week to 10¢ after its recent jump from 9¢ to 12¢ (TIME, Nov. 24). The world copper situation is complicated by potential African production which may soon overbalance U. S. curtailment. Tin. Attempts to curb tin production have been hindered by the rivalry between Bolivia and the Far East, and the introduction of much modern equipment into the latter territory. In London last week the world's tin producers met, sought to limit production. Silver. An abrupt decline in silver has accompanied the drop in other metals, but this is due more to developments in the currency situation. Last week Irving Trust Co. blamed Great Britain for the drop in silver, saying it was caused by putting India on a gold standard. Causes? Great economists differ on the question of whether the World Depression was caused by the crash of U. S. stockmarkets, or whether the latter merely foresaw the business trend.* Similarly, an endless debate goes on concerning the problem of whether Over-Production was a cause of the Depression or has been merely accentuated by it. To industries already faced with Over-Production. the Depression has been an almost fatal blow. Oil consumption was nearing stability on a basis that allowed for an annual increase of 10%. The 1930 increase will be abnormal and the difference upsets all plans for stability. Too much competition seems to have been at the root of many cases of overproduction. Small competitors cannot afford to restrict output, prefer to sell by price-cutting. International competition has also been a major difficulty. And mechanical improvements have upset many an industry. Chadbourne. That smart Lawyer Chadbourne realizes sugar is in the same bowl with many another industry was shown in a speech he delivered at last week's Brussels meeting. "All industries," said he, "have transgressed good economic laws. . . . The capitalistic system is on trial. If you think the people who are running the industries of the world can by reason of this greed bring about such depressions as this and then not promptly take steps to mend them, no matter what the sacrifice to individuals may be, you are mistaken."
* Among those who blame Wall Street is Benito Mussolini (see p. 14).