RUBBER MARKET.

Auckland Star, Volume LXI, Issue 217, 13 September 1930, Page 9

RUBBER MARKET.

EAST INDIES TRADE.

European Planter Must Cut

Production Costs.

SIR. E. GEDDES , SURVEY.

(British Official Wireless.)

(Received 12 noon.)

RUGBY, September 12.

Sir Eric- Gfeddes,- chairman of a prominent British rubber company, gives his view on the present rubber situation in a circular issued to the shareholders of the company.

The circular declares that the company's board of directors "sees nothing alarming in the decision of the Governments concerned not to restrict the production. ' On the contrary, when normality is reached prices shbuld in our opinion be more stable. New uses for rubber will be developed with the stability of price and the use of reclaimed rubber will decrease.''

After referring to an immense increase in native-grown rubbefc, Sir Eric Geddes says it has been Calculated that as the price- of rubber rises aboot B£d per lb there is a growing incentive for the native to increase tapping in the Dutch East Indies arid to make new plantations. The figure of Bsd constitutes a

line below which the native production falls off.

Native rubber in the Dutch East Indies is locally worth about 3*d per lb less than the London price, whereas European plantation rubber, being of higher quality, is worth locally only 1/ less than' the London price. ':'

With this advantage of oetter quality, the European planter, says Sir Eric, must endeavour by more efficient organisation'and management to produce at a cost which will enable: him to compete with the Asiatic'grower. This he regards as the crux of the problem facing the European-owned plantations.