Hokitika Guardian & Evening Star THURSDAY, AUGUST 12th, 1920. A WORKING WORLD.

Hokitika Guardian, 12 August 1920, Page 2

Hokitika Guardian & Evening Star THURSDAY, AUGUST 12th, 1920. A WORKING WORLD.

The general impress of tue world’s cable MWs of late lias beep in the direction of emphasising the widespread unrest which is abroad, But there is, happily, another side to the picture and an exchange which has been studying ■ the commercial apd industrial reports of the world abroad, has been able to compile an interesting statement showing that the world generally is at work, and that in the matter of more and more production, many of -the distraught countries are making marked ; amends for the war period, while other countries which passed tlirough war , time untouched by its ravishing hand, have arlded to their normal output and so assisted to bring about a. better and brighter outlook for the world at large. That this statement is not over'optimistic is indicated by the following rather choerful\eview of the world’s broad markets and tile efforts made- by many farflung countries to meet the great requirements of the world as a whole: Sugar is a commodity which as understood to be extremely scarce, owing to the abandonment of the cultivation of the sugar beet France, Germany and Belgium. 9ttt since the war began the production of cane sugar has greatly increased. Cuba doubled her output between 1914 and 1919, and there are strong suspicions that Cuban growers are pow hoarding large quantities to keep up the price. At the same time Europe is increasing her beet sugar output again. Germany produced this season 1,165,009 tons as against 750,000 tons last season, and the Belgian crop increased from 70,000 .tons ifi 1018 to an estimate of 160,000 tons thin season. The West Indies are largely increasing tlie production of cane sugar and from British Columbia .gomes news of the discovery that the Dougin# dr is capable of producing sugar. The recent financial crisis in Japan is an example of overconfidence in jthe merits of increased production. This over-confidence translated itself in Japan as in many other countries, in the overcapitalisation of industrial undertakings. Germany which embarked on a- perfect fever of production as soon as the war was over, despite the unsettled condition of the cities, had a very peculiar experience. The value of the mark rose from 350 to the pound to 180 to the pound and everything appeared to be going on splendidly, but the domestic market, collapsed owing to the inability of the people to pay the very high prices stimulated by foreign trade. Tile result was acute depression. The general impression of Europe as crippled and warravaged must be revised, Western Europe is now working hard a.od producing strenuously. Central Europe js recovering. Bulgaria reports prospects of exceptionally good crops of rice and tobacco. Rumania, one of the wheatexporting countries, anticipates a “much better yield of wheat’’ and maize than in 1919. Jugo-Slavia reports a “bumper year” for cereals and grapes. Regarding Russia there is a. veil drawn, but there have been reports of an excellent wheat harvest in South Russia, despite the disturbed state of the country. Russia is a largo exporter of foodstuffs in normal times, and when she eventually comes back into the wprld ? s markets she will exercise a large influence on prices. She has been blockaded up to the present, and the latest indications are that her return to the comity of nations is to be retarded by yet another attempt to depose the

Soviet Government by force of amis. A’olitioally tills may bo necessary, but, economically, it is indefensible. The world’s supplies of raw materials in the near future are to be added to extensively. There have been discoveries of new coal deposits in a dozen places in tlie world; new iuid large deposits of phosphates in Morocco and Italian Tripoli; iron ore in Lorraine; copper in the Island of Timor and oil in Alsace and Brazil. The world is increasing production without a doubt. AVhat really needs attention now is the still knottier problem of distribution.