THE RUBBER MARKET.

Auckland Star, Volume LVI, Issue 184, 6 August 1925, Page 10

THE RUBBER MARKET.

(To the Editor.)

Sir, —The statements- to the effect that the British are creating "a corner in rubber" are unjustified, also misleading to anyone not acquainted with the position during the past few years.That the Yankees should even suggest that -the British Government be requested to intervene is amusing. When the Yankees corner or cotton" —not an uncommon thing for them— what would their reply be should the British Ambassador. be asked to make a similar request. It would not be a mild reply he would, get. . When the price of rubber-was-6d to 8d per lb, did they not buy freely and laj in ..large stocks. There was no shortage of rubber at that time. The facts are that early in 1920, many firms made, contracts- for forward delivery at prices from l/6'.td 2/6- per lb,and ; wheri prices came down, they tried to'break the contracts, probably some did, if so, they did not. ''squeal" about it.. Most, however,: instead of\ freely, bought their bare requirements, and as mentioned in one article..the idea was to keep down-the-price of rubber, to a price it did not pay to produce long enough, in the hope that these Yankees might be able to buy up cheaply some of the fine estates in the east opened by British brains and capital. But, sir,, there are in London quite a few business men who can see as far as the Thgy knew what the, Yankee "was up to/, hence the evolving of what is known as the 1 "Stevenson Scheme," which was only taken up by the Government after considerable agitation. This, however, only applies to Ceylon and the Malay States. There are thousands of acres under British control in India, Burmah. Sumatra, and Borneo to which the scheme does not apply, though -the majority voluntarily joined,- to 'give the scheme a trial. , At present—quoting': from riieiriory—the scheme allows about; 80, per cent of the normal production, an'increase of a further-10 per cent will! be allowed shortly, arid -it will "there-' fore be 1926 ere the 100 per cent output comes in again, and only then .should rubber be about 1/6 per lb. No sis, as" one 'who knows how 'things-go in rub,ber/ let mc say there is no intention of trying -to create a corner in rubber by the rubber growers. Yankee' millionaires may speculate in- it; the growers? send* it to be sold by auction and so long as it brings a fair price are quite satisfied.. Early, this year contracts for forward delivery were made at 1/4 to il/.ff;'per. lb. > Have these folks done any squeal-' ing? What about the price of tyres, already raised, 25 per cent, although they 'must have been made from rubber botight f&fi about I/; per lb. Secretary Hoover is not the only one who predicts a shortage of rubber in about five years' time. ? As considerable areas are' continually being planted and, many .older estates have not so far given their maximum-output, there is iw.rieed to. uneasy' Just.;, yetf; ', 1n... tnTs'letter f have' |pt'referred to the "actiori-'bf the DutchVe the Restrictions Scheme; it has been on a-par With their actions during' l the.war, but we are going to score over tHe'lorigruri.— I am, etc., ' 8£ P. - % ;- \EX>RUBBER PLANTER; £