RUBBER INDUSTRY.

Hawera Star, Volume XLVII, 28 April 1928, Page 5

RUBBER INDUSTRY.

RELAXATION OF CONTROL. EFFECTS DISCUSSED IN THE COMMONS. (UNITED PRESS ASSOCIATION—BY ELECTRIC TELEGRAPH—COPYRIGHT.) (UNITED SERVICE.) BONBON, April 2<>. In the House of Commons, Mr. Ramsay MacDonald, Leader of the Opposition, drew attention to the position in regard to the rubber industry. He complained that -as a. result of the Prime Minister’s statements on February 8 and April 4 that control would cease, shares were sacrificed in a tragic panic, which had the effect of diminishing the value of rubber stocks by £30,090,000. He did not object to the termination of the Stevenson agreement, but it had been done with the maximum of clumsiness.

Mr. B. T. Campbell (Conservative), who is a rubber expert, said that wlii.e the public were grossly misled- by exaggerated statements, it was absurd to say the market suffered the losses alleged by Mr. MacDonald. The Secretary for the Dominions, the Rt. Hon. L. O. M. S. Amery, said the Treasury was concerned in the rubber position, which was a most important industry in connection with the gold standard. The Colonial Office, therefore, asked the Cabinet to initiate a:i impartial inquiry, and the result was to convince the Government that the Dutch were benefiting and British producers were suffering. Commander Kenworthy, intervening, said: “Why did you let the New Foric •bears’ get the advantage

Mr. Amery said the announcement was given to the newspapers at six o’c-locic for publication next morning. Apparently someone telephoned the iniurination to New York before the Rubber Exchange there closed. As a fact, the United States did not believe the news, and neither American nor British investors were fleeced. Control had been useful in the United States, but it became a stranglehold which was endangering the industry. Experience showed that it was much better to leave the industry to control itself. Mr. J. H. Thomas (Labour) reiterated that the Government’s handling had done incalculable harm to the British investor.

The motion to adjourn was carried bv 194 votes to 94.