Decembes 1, 1920 



THE INDIA RUBBER WORLD 



209 



THE RUBBER TRADE IN AUSTRIA AND GERMANY 

 By a Special Correspondent 



THE Austrian rubber industry faces a crisis with the coming of 

 the winter. Austrian rubber manufacturers complain that 

 they have not received the foreign support promised to them by 

 the reparation commission and that production becomes increas- 

 ingly difficult. The exchange rate of the Austrian crown is still de- 

 clining and makes it impossible to buy raw materials, without 

 which no manufacturing for export can be attempted. Coal also 

 is very scarce and it is quite well known that some manufacturers 

 have taken to smuggling coal in wagon lots to keep their factories 

 going. Everj- decline in the price of the crown of course brings 

 about a further increase in the cost of all articles. The number 

 of unemployed is increasing l)ecause factories have to close down. 

 Experts who have studied the situation are of the opinion that the 

 Austrians are somewhat to blame for their present situation. The 

 nation is sk>w in getting under way again and being deprived of 

 many of its natural markets by the peace treaty, recuperates only 

 slowly. 



GERMAN MANUFACTURING CONDITIONS UNSATISFACTORY 



The automobile industry, which is promising well at the moment, 

 is still hampered much by the governmental atiempt to control 

 luxuries. During the height of the summer when the automobile 

 industry should be most busy the factories were working with a 

 reduction of 30 and more per cent of their capacity, which nat- 

 urally has a very depressing effect upon the demand for tires and 

 other rubber accessories. Also the bicycle industry has been 

 quieter than usual. 



The rubber industry reports a further increase in the cost of 

 production, caused principally by increases in wages which, how- 

 ever, seems to have been counterbalanced by an improvement in 

 the working methods. The working hours are set at 48 hours 

 per week during the height of the summer. Reductions, however, 

 have taken place to 40 hours in some instances. 



The general public is still determined not to buy at the present 

 high prices and a real recovery can only be expected after the 

 prices have come down to a more favorable level, an event which 

 may not be deferred much longer. 



Another contributory cause to the present economic depression 

 is the uncertainty about the final outcome of the taxation meas- 

 ures which are now under consideration. With large confiscations 

 of personal property ahead of the ta.xpayer, manufacturers and 

 consumers alike are inclined to go rather slow and there is a 

 visible tendency to keep transactions to as low a level as possible. 



CRUDE RUBBEJl 



While Germany only a few months ago had difficulty to secure 

 all the rubtier required for its rubber industry, there has been 

 noticeable during the last weeks a steady decline in the demand, 

 with the result that prices have slumped in Hamburg. This 

 is the more surprising as during the same time the exchange rate 

 of the mark has declined again, which as a rule has led to an 

 increase in the price of all imported materials. Lack of occupa- 

 tion in the rubber factories no doubt is the principal cause of the 

 present depression in the German raw rubber market, but it seems 

 that the comparatively heavy purchases of rubber importers dur- 

 ing the beginning of the year is a contributory cause. Most rub- 

 ber is sold at present f. o. b. store in Hamburg. Reclaimed rubber 

 of American origin is offered for delivery four to six weeks from 

 date of order. Very little American reclaimed rubber is at present 

 in stock in Hamburg, but the demand is not very large. 



TRADE NOTES 

 The German industry is apparently tired of being made the 

 scapegoat for everything that goes wrong in modern Germany. 

 Socialistic government in Germany does not seem to be successful 

 and judging from the temper of a meeting of participants in the 

 last Leipsic Fair the patience of the industry seems to have been 



severely tried. A resolution was passed during this meeting call- 

 ing upon the Government to discontinue the system of crippling 

 industrial enterprise in Germany by doing away with the export 

 restrictions and the various other institutions destined to regulate 

 trade and industry. If the Government is not prompt in taking 

 the hint, action on the part of the industry was promised at the 

 meeting and something like an employers' strike has been pro- 

 posed as a remedy. 



The recent extraordinary meeting of the Hannoversche Gummi- 

 werkc Excelsior .\. G., in Hannover-Limmer, was interesting for 

 the information given to the shareholders about the operation of 

 the large works of that firm and the development of the rubber 

 industry in Germany generally. The company has been compelled 

 to buy coal from .\mcrica to keep going and the director pointed 

 out that consequently no difficulties were expected from the fuel 

 shortage in the future. The capacity of the establishment was 

 considerably extended during the last year and the total turnover 

 of the firm has been increased. This is due partly to a larger 

 production but also to the higher prices that were obtained. The 

 management expects that the depression which has been noticed 

 during the second half of this year will now pass off. While it 

 lasted it found expression in the beginning in cancellation of 

 orders and later on in a practical cessation of new business. The 

 company has been compelled to make reductions in the price of 

 many of its principal lines, to bring these in conformity with the 

 existing prices on the international markets. The supply of Ger- 

 man coal is expected to continue small. 



The Ostdcutsche Gummi Industrie Hermann Mattern, Koenigs- 

 berg in Prussia, has changed its name to Ostdcutsche Gummi In- 

 dustrie Heinrich und Paul Winterberg. 



The Hamioversche Gummiwerke Excelsior Akt. Ges. Hannover 

 has increased its capital from 6,000,000 to 10,000,000 marks. 



SOME EUROPEAN RUBBER MARKETS' 



DENMARK 



ONLY three plants in Denmark are engaged in the manufac- 

 ture of rubber goods, and these concerns, according to 1914 

 statistics, employed 114 men and 115 women, and produced 

 goods valued at 1,800.000 crowns (1 crown = $0,268), specified as 

 follows: Bicycle tires, 810,000 crowns; tires for automobiles and 

 motorcycles, 85,700; inner tubes, 38.000; general rubber goods, 

 567,600; finer grades of rubber manufactures, 110,000; rubber 

 linen, 30,000; and rubber clothing, 113,000 crowns. As will be 

 seen from the above, the main production is that of bicycle tires, as 

 a large percentage of the population in Denmark uses the bicycle. 

 Included under "general rubber goods" are elastic ribbon, rubber 

 matting, rubber soles, etc., and by "finer manufactures" is meant 

 special technical and hygienic articles. Rubber clothing includes 

 principally caps and coats. Imports for domestic consumption 

 in 1913 amounted to 6.289.000 crowns. 



There is a good market for rubber goods in Denmark, and dur- 

 ing the last two years the importation of tires has steadily in- 

 creased, with .\merican tires very iriuch in demand. The reason 

 is given that American are superior to English, French, or Italian 

 makes. The general terms of payment are 3 months' credit or 2 

 per cent discount within 30 days. If an extensive trade is to be 

 built up, credit terms should be granted or payment not made 

 obligatory until delivery of goods in the Copenhagen free port. 



SWITZERLAND 



During 1919 the Swiss imports of raw and scrap rubber reached 

 4,477 quintals (984,940 pounds), valued 3,204,133 fratics ($608,- 

 397), as compared with 1.362 quintals (299,640 pounds), valued 

 1,178,651 francs ($208,179), for the previous year. 



According to the last military census, there are 15,(XX) auto- 

 mobiles and 2,000 motor trucks in Switzerland. Clincher tires are 

 generally used, but owing to the importation of hundreds of 



' From ("ommerce Reports No. 224, September 23, 1920. 



