THE RUBBER POSITION.

Press, Volume LXIV, Issue 19201, 6 January 1928, Page 8

THE RUBBER POSITION.

The position reached under the btevonaon rubber restriction scheme has directed attcntion to the difficulties o£ the rubber planter in Malaya and Ceylon. . Stocks of rubber liavo been steadily rising m London for months past, and, concurrently with the rise in Blocks, there has been a. declino in the price oi rubber, notwithstanding the enforcement oi the restriction law. On October 3'sc last this law had been in force for five years. In the quarter before restriction was announced tiie price oi ruboer averaged 7d per lb. In the first year under restriction the average wos 1b 3.015 d, in trie second Is 1.17-ld, in the ~r °: 77 ', ;,' n the fourth 2s sd, and in the fifth la M36a. l'or the five years the average ib roundly Is 9d, or Is -2d more than the average for «he quarter preceding the check pnt upon unregulated production. But while the restricting areas havo got a fair price for the rubber actually produced and sold, they have bad to be content with harvesting much smaller crops than if there had been no restriction. The prico before restriction was below cost of production, and restriction has been of much advantage to the restricting areas, but they have not, like nonareas, got full advantage {■)•!? higher rates. It is obvious, that if tlio ilalaya and Ceylon producers had sold their full production at Is 6d per lb they would have been better on than if they were selling a rc-sirictcd crop at Is 9d But it must not be overlooked that if there were no restriction and the markets wero flooded wit-n unwonted rubber conditions would bo infinitely worse. The Dutch, it is said, are producing full crops, and are getting full ■.■••cirantage of the increased prices due to the. Stevenson scheme. This no doubt has affected the position, but responsibility for tifo reccne condition of affairs has also been attributed to defects in the administration of the_ Stevenson scheme itself, including smuggling and over-assessment of the I9'.N standard of production. Advocates of restriction in tKe production of other primary commodities in order to inflate prices wili no doubt find the artificial position which has developed full 0 f interest, while the censumer will realise that the greater the percentage of restriction the higher the prico must be to compensate for the loss due to that restriction. It is certain that a 'difficult position has developed which will ha r ? to hf> dealt with in the near :ntr.re. allies.' the capacity for occonu3 sreater tiun the to pic'luc'. 1 .