TIN RESTRICTION

New Zealand Herald, Volume LXXI, Issue 21698, 13 January 1934, Page 7

TIN RESTRICTION

EXPLOITATION SUGGESTED LONDON JOURNAL'S COMMENT A suggestion that the tinmining in-< terests of the countries adhering to the restriction scheme intend to exploit their monopoly at the expense of the consumers is part of the criticism levelled by the Economist at the new restriction scheme. In the course of its article on "Tin Tactics" ifc states:—"in view of the substantial reduction in costs of production of tin, a price of £225 a long ton is certainly not justified. Yet the agreement suggests that the tinmining interests of the live countries (that is, British Malaya, Siam, the Dutch East Indies, Bolivia, and Nigeria) adhering to the restriction scheme intend to exploit their monopoly at the expense of consumers, in order to compensate their shareholders for the past three Jean years.

"Although the proportion of world output produced by the five restricting countries has declined from 90 per cent in 1929 to 81 per cent in 1932," the Economist continues, "their position remains strong. Under the terms of the new agreement the control of production and exports is to be continued until the end .of 1936. Siam's export quota is to remain unchanged at 10,000 metric tons per annum until the other countries hare increased production • to 65 per cent of the output in 1929. The quotas of the other four countries are to be increased from 33 1-3 per cent, to 40 per cent of production, in 1929 from January 1, 1934. Further, British Malaya, the Dutch East Indies, Bolivia and Nigeria -will be permitted to export an additional 4 per cent of ,the 1929 output during the coming year." In determining the quantity which each country may export during 1934, allowance will be made for any tin shipped in excess of the allotted tonnage from the date of inception of the present scheme. The committee estimates that this special quota will result in the export of about 366' metric tons a month during 1934. Altogether, production under the revised scheme will be increased by about 1300 metric tons a month. Since the increase in production will not come into operation until January 1, 1934, it is probable that stocks will decline to about 30,000 metric tons, which, at the present rate of consumption, represents not much more than three months', requirements. >