Copra Market.

Political Confusion And Whale Oil Tend To Depress Rates.

THE price of copra remains depressed.

The rate that has been offered on the beach in some of the less fortun ately placed groups during the past month has been so low that already certain planting interests are talking of “another depression”. One Solomon Islands trader in a letter to the Editor says: “My output costs me £6 per ton to land in Tulagi, without any allow ance for white labour, and the price on offer in Tulagi this week is about £4/10/-. I have cut champagne out of my wine list!”

These depressed prices are not peculiar to copra—all staple commodities are affected. There has been, for example, a serious fall in the price of wool, wheat and base metals.

No one can explain the cause. Every one agrees that the world of commerce is active and eager to trade, and that there is a demand everywhere for both primary and manufactured products.

Observers generally insist that the price levels must swing up again at a very early date.

So far as copra is concerned, it is the opinion of this journal that there are two main factors depressing the price—one is the very bad internal economic condition of the United States and France, and the other is the huge

flood of whale oil that is coming out of the Antarctic. The first factor applies to all commodities; the second to copra especially.

Because there is comparative pros perity in all British countries we are inclined to overlook the alarming econo mic confusion —the result of political confusion—which exists in the United States and in France. In U.S.A., they actually are suffering another depression, the result apparently of the complete inability of the powers that be to ad just stiff-necked commerce to the new school of thought, which dominates the Government, on the subject of the wider distribution of wealth.

Much the same thing is happening in France, where there has been another violent change of Government. In France the Communists now pretty well call the tune to which the Government pro tern dances. In America it is not as bad as that, but unquestionably there is a growing danger of actual strife be tween the property-owning classes and the masses.

The United States is the world’s big gest buyer of copra. American copra imports have fallen very markedly and a huge surplus of copra from various countries, and especially the Philippines, has been turned towards Europe. That fact alone has been sufficient to gravely disturb the market. France’s political troubles have not been so sharply re flected in decreased purchase of comm odities, but apparently she is not im porting so much copra.

So far as whale oil is concerned, the position can be summed up in a few words. Everyone knows that vastly increased fleets went to the Antarctic in November. Japanese interests an nounced on March 10 that already they had secured 70,000 tons of oil, as com pared with 25,000 tons last year—with the result that the whale-oil market had slumped seriously. The Germans have done much the same.

It all seems to indicate that for a few months to come the price of copra will remain low.