March 1, 1921 



THE INDIA RUBBER WORLD 



407 



the larger portion of an annual Malayan output. The chief re- 

 liance of these buyers is, of course, the large estates that main- 

 tain their own milling plants at the plantation and whose rubber 

 is sold, ready for shipment. The small Chinese and native planta- 

 tion owner is not debarred, however, from this market by reason 

 of the unmilled condition of his product since the process can 

 be performed, and fre(;uently is performed, by local independent 

 mills at Singapore. 



The small Chinese and native producers arc scattered through- 

 out the entire western slope of the Peninsula from Johorc to the 

 Province of Welleslcy and beyond. Many of them are. in reality, 

 but small farmers that cultivate and market all kinds of produce 

 — rrbber being but an incident. Chinese merchants or brokers (at 

 times they may be cither broker or merchant, as the case dc 

 mands) travel about continually, picking up a few unsmoked 





II 'lido son Btuthcrs, Limited. Siiigal'irc 



OXE OF THE DrVI.VG RoOMS 



sheets here and there. Assembling tl'.ese at Singapore or Penang, 

 the principal market is found with the independent brokers or 

 merchants who maintain their own milling plants, where the 

 sheets may be treated and made ready for e.xport. This opera- 

 tion is often subdivided. The Chinese broker who travels 

 about gathering in the sheets sometimes finds his market with 

 another Chinese broker at one of the lesser cities or towns, as 

 Kuala Lumpur or Klang, who, in turn, sends them to the port 

 market. 



The total volume of business done in unsmoked sheets in this 

 manner is large. There are, however, a multitude of people 

 engaged in their production, assembly and marketing. Supplies 

 of this kind often come into port in very small lots by wagon or 

 bullock cart. Often, however, a sufficient quantity is assembled 

 for a reasonable rail shipment before being moved. Depending 

 on market conditions, this rubber may be sold at once on sample 

 (or even in advance on sample) and taken directly to tlic mill 

 — or it may have to le warehoused (godowned) pending disposal. 

 MALAYAN RUBBER MARKET DEAD 



M the present time there is practically no market either at 

 Singapore or Penang, in the strict sense of the word — and this 

 condition has obtained for several months. Brokers run in and 

 out of Chinese and British offices trying to get an idea of what 

 prices really are when, in fact, there is practically no market 

 that does not represent speculation. Malayan prices are largely 

 controlled by London and London standards are followed — at 

 lea.st. in theory, though this does not always follow. Business in 

 rubber has fallen into such a disordered state that if I^nd'm 

 prices are reported up a farthing, the Malayan market, or rather 

 the sellers, instead of raising a penny, generally try for a 



four or five-ce.it raise, with the result that nothing happens. 



Malaya is always optimistic and believes the United States is 

 holding back on buying in order to bear the market. The dealers 

 cannot dispossess themselves of the notion that .America is short 

 of rubber and must soon come into the market, whether or no. 

 A farthing or so in advance in London is therefore construed 

 locally to be the forerunner of a big demand — a big advance in 

 price — and the local dealers want to be the first to discount the 

 rise. For the same reasons, on a declining market, they hold 

 on for dear life — still believing it to be a Yankee trick to un- 

 duly depress the market. On a big drop, however, they lieconie 

 panicky and frightened and rush to cover. 



For the above reasons the Malayan Peninsula has become al- 

 most an impossible market during the past fall and winter and 

 wise buyers can do little but watch out for sharp declines, wait 

 a day or two, and then, often, fair bargains may be obtained. 

 To a buyer who knows the local crowd and their ways and who 

 watches their faces as they flit about among the offices, a trade 

 can sometimes he made several cents under tlie actual London 

 market. For long periods, however, during the past fall and 

 winter, a most unusual price condition has obtained, making it 

 almost impossible to do business. For long intervals New York 

 has been the lowest market in the world, with London a little 

 higher, then Singapore, Penang, Balavia, in order, with Colombo 

 the highest. Often this relation might change somewhat, but 

 N'ew York and London have been generally lower than at pro- 

 ducing centers. .At times Penang has led at the top-notch price. 

 The apparent reason for this anomaly is the di.strnst that haunts 

 tlie Eastern mind of the sincerity of the American and the firm 

 belief that he will soon come back into the market with a rush. 



INDEPENDENT MILLING PLANTS 



It is with conditions such as described that the local buyer 

 for a house outside the big combinations has to contend in buy- 

 ing the unmilled product. It is the disorganized condition of th? 

 urmillcd rubber market that has caused the establishment of 



H rndrrsoii Brothcis, I imitcd. Singapt.re 



N.\TivE Tamil and Ciiine.se Employes 



independent milling factories at some of the largest trading cen- 

 ters. In the entire Malayan rubber district there arc many such 

 plants, large and small. They range in capacity from one ton 

 to 20 or 30 tons a day. Around Singapore there arc probably 

 fifteen or twenty; around Penang. perhaps ten or twelve, all 

 Chinese. Some of them, however, are very small. 



One large plant employs upwards of 600 men and women, all 

 told, and has a capacity for milling and conditioning about 20 

 tons of unmilled rubber a day. It is equipped with many milling 

 machines, a portion of which are shown in the accompanying 



