THE RUBBER INDUSTRY.

New Zealand Herald, Volume LXV, Issue 19932, 28 April 1928, Page 11

THE RUBBER INDUSTRY.

REMOVAL OF RESTRICTIONS ATTACK ON GOVERNMENT. COMMONS APPROVE DECISION. Australian and N.Z. Priess Association. (Received April 27, 9.5 p.m.) LONDON, April 26. In the House of Commons the Leader of the. Labour Party, Mr. Ramsay MacDonald, drew attention to the position of the rubber industry. He complained that as a result of the> statements made by the Prime Minister,, Mr. Baldwin, regarding the proposed suspension of the Stevenson restriction scheme, shares were sacrificed in a tragic panic, which diminished the value of rubber stocks by £30,000,000. He did not object to the termination of the Stevenson scheme, but it was done with the maximum of clumsiness. Mr. E. T. Campbell, Conservative member for Camberwell North, who is a rubber expert, said the public were grossly misled by exaggerated statements. It was absurd to say the market suffered the losses alleged by Mr. Mac Donald. The Secretary of State for the Dominions, Mr. L. 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 had, therefore, asked Cabinet to initiate an impartial inquiry. The result was; to convince the Government that the Dutch were benefiting and the British producers were suffering. Commander J. M. Ken worthy, Labour member for Hull Central, intervening said, " Why did you let the New York Stock Exchange ' bears' get an advantage ?" Mr. Amery said the announcement was given to the newspapers at 6 p.m. for publication next morning. Apparently someone had telephoned the information to New York before the New York Rubber Exchange closed, As a fact, the Americans 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 strangle-hold, which endangered the industry. Experience showed that it was much better to leave the industry to control itself. Mr. J. H. Thomas, Labour member for Derby, reiterated that the Government by its handling of the matter had done incalculable harm to the British investor. The motibn to adjourn was carried by 194 votes to 94.