November i, igoy. 



THE INDIA RUBBER WORLD 



35 



- 



Published on the 1st of each Month by 



THE INDIA RUBBER PUBLISHING GO., 



No. 395 BROADWAY, NEW YORK. 

 CABLE ADDRESS: IRWORLD. NEW YORK. 



HENRY C. PEARSON, 



EDITOR. 



HAWTHORNE HILL, 

 ASSOCIATE. 



Vol. 41. 



NOVEMBER 1, 1909. 



No. 2. 



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COPYRIGHT, 1909, BY 



THE INDIA RUBBER PUBLISH1NQ CO. 



Entered at New Y'ork postofflce as mail matter of the second class. 



TABLE OF CONTENTS ON LAST PAGE READING MATTER. 



WHAT HELPS TO KEEP RUBBER DEAR. 



CD 



NO doubt it would seem reasonable to many minds, if 

 not absolutely certain, that a heavy advance in rub- 

 ber prices could not fail within a short period to lead 

 to a corresponding increase in the output of rubber. This 

 is the general commercial rule, and consumers of rubber 

 seem generally disposed to apply it to rubber production. 

 In view of present price conditions, however, it may be 

 worth while to consider how the bringing of rubber to 

 market differs from dealing in most other commodities. 

 In the first place, however well systematized the produc- 

 tion of rubber may be in portions of the Amazon valley, 

 this condition does not extend to the whole region, and 

 whatever improvement may be attempted, progress is 

 necessarily slow, if for no other reason than the scarcity 

 of population suitable for gathering rubber. 



A large percentage of the rubber gatherers in Brazil 

 to-day remain on the ground temporarily, so that each 

 season a fresh immigration is necessary, very much as if 

 the city of San Francisco should plan to lay new pave- 

 ments six months in even* year, and for each new piece 

 of work should send to Italy for laborers, with the idea 

 that most of them would return home after the work was 

 finished. The rubber which is coming into Para to-day 

 is being got out by seringneiros who were employed as 

 long ago, perhaps, as January last, and most of the rub- 



ber to come out during the present cutting season will be 

 the result of similar engagements. The fact that rubber 

 is selling at Xew York for $1 a pound more than when 

 rubber gatherers were last employed to go upriver 

 naturally, therefore, will have little effect in the way of 

 increasing this season's output. The high price level can 

 hardly have a widespread effect upon the employment of 

 rubber gatherers before next January, and the crop re- 

 sulting from engagements made then will not all reach 

 market before the summer of 1911. 



But other conditions are to be considered than the labor 

 supply. There is a scarcity of local capital. It is neces- 

 sary for the scringal owner, particularly if far from the 

 primary markets, to be equipped with supplies for his 

 working force in advance for the whole season. And not 

 only this, il is necessary to make advances in respect of 

 immigrants from Ceara, for instance, for their families 

 and for transportation and the like, probably not less 

 than 1 conto [= $62.50] for each laborer secured. It 

 will be seen. then, that the scringal owner, in order to 

 increase his present scale of operations, must have con- 

 siderable capital in order to plan and lay out money 

 practically a year ahead for the purpose. He must apply 

 to the aviadores for accommodation, and as will readily 

 be seen these firms are not always able to make iarger 

 than accustomed advances. 



There are many seringaes in the lower Amazon dis- 

 tricts which for many years have yielded practically a 

 fixed amount of rubber, without regard to the state of the 

 markets. Owing to the habit of many persons in in- 

 terest in these of living in Europe and drawing on the 

 home houses for funds all the time, there is not always 

 a reserve of capital at home with which to take advantage 

 of new conditions in the market with a view to increased 

 operations if such might prove desirable. It is even less 

 easy to secure means whereby to extend rubber gathering 

 rapidly in more remote districts. Of course, ultimately 

 high priced rubber will lend a stimulant to increased col- 

 lection, just as the world's growing demand for rubber, 

 without regard to prices, has led to a larger output in 

 nearly every year since the industry had a beginning. 

 But the rate of growth has been too slow to lead to any 

 hope that the increase in prices within the past twelve 

 months will result in such larger production as to reduce 

 prices before very many months to come. 



There is to be considered, moreover, the development 

 of new financial conditions on the Amazon, now coming 

 to a head, whereby, with the aid of local banks, rubber 

 may be stored instead of being thrown on the market im- 

 mediately upon its arrival at Para, as was so long the 

 case. If this new condition should have any effect what- 

 ever upon prices it will not be to make the price to con- 

 sumers less. This is so plain as to require no argument. 



It seems worth while to refer here to an interview 

 which The India Rubber World had seventeen years 

 ago with the Para merchant Manna, who gained a repu- 

 tation for putting rubber prices on a higher basis than had 

 before been known, and doing so more than once, though 



