THREEPENNY RUBBER.

Auckland Star, Volume LXII, Issue 151, 29 June 1931, Page 4

THREEPENNY RUBBER.

FUTURE PROSPECTS. While it is still too sfcon to observe the effects of threepenny rubber, there is little doubt but that some estates will be entirely closed down, while many will elect to use such cash resources as they possess to conserve their bark (says the London "Economist")- Native production may be divided into two groups: (a) Rubber produced by the owner of the trees and by his family, in respect of which no wages are paid; and (b) rubber belonging to moneylenders and native proprietors who employ tappers. It is estimated that the first group can produce about 300,000 tons a year, while the second may havej been put out of production by recent prices. As regards European-own ad rubber, t'ie estates in Java, most of which grow other crops besides rubber, are probably the cheapest producers, but their output is not estimated at more than 60,000 tons. An equal amount is probably produced in Malaya on estates which, for various reasons, have an all-in cost of under It would therefore appear that the present price must prove definitely restrictive to a large proportion of tae industry. - In these circumstances, economic forces will probably prove the must effective of all restricting agents. Further efforts on the part of would-be " restvictionists" would bo detrimental to the industry. The latter's chief desideratum at present is sufficient time to work off its stocks and to consolidate the economies which have contributed to a 50 per cent reduction in costs during the last year.