1915.] 



THE INDIA RUBBER WORLD 



Interesting Letters from Brazil. 



THE RUBBER SITUATION ON THE AMAZON. 



To THE Editor of The India Rubber World: 



THE present low price of rubber, as we have predicted, has not 

 affected the industry on the Amazon very much. The Ama- 

 zon will always be able to compete with Ceylon in prices, as 

 ue have already said. The Amazon will not be removed as a 

 producer of rubber. As cheap as they may be able to produce 

 their rubber, the Amazon will be able to produce it still cheaper. 

 The middlemen, however, who are many, between producer and 

 cunsumer will earn less profit. The proof of this is that during 

 1914 and 1915 there were very few failures recorded on the 

 Amazon, and these in small amounts. 



Practically the whole business is now conducted on a cash 

 basis. The war has cut off their former supplies from England, 

 Germany and the other belligerent countries with which they 

 had a 3-to-6 months' credit. Since the Amazon is compelled to 

 import the necessaries of life, it is obliged to purchase goods 

 from the United States. The commission houses and the manu- 

 facturers, although very anxious to get Amazonian trade (the 

 National City Bank not yet having established an institution 

 which could be of great help to them in ascertaining the credits), 

 are exporting goods to them for cash only. The Amazonian im- 

 porters buying for cash have no other course than to supply the 

 (j; iadores for cash, who in their turn send goods to the rubber 

 centers in the interior only upon the receipt of the rubber for 

 the goods bought. In many instances a clerk of the aviadore 

 goes along with the boat carrying the goods, to exchange them 

 for rubber and other products. 



The war of course has been very bad for all business and 

 also for the Amazon, but at the same time it has taught the 

 Amazon a good lesson. On account of the great risk it has 

 removed the entire credit system by means of which they could 

 overcharge 50 to 80 per cent, on the goods. 



Everybody was squandering money in going to Europe and 

 buying all kinds of useless paraphernalia. Some bought boats at 

 $100,000, which, after being used once or twice a year, would 

 remain idle the rest of the time. Now they are working on a 

 real business basis. The rubber producer is taking from the 

 a-Aadore only those goods which he must take and which he 

 cannot raise on his estate. Formerly he was supplied with beans, 

 rice, corn, canned stuff, etc., in order to make profit. These he 

 could easily raise on his estate by farming, raising cattle, 

 .-jiickens, etc. Now he is actually doing these very things. 



I'or these reasons it is our opinion that the Amazon, barring 

 all other obstacles including the 22 per cent, duty to the govern- 

 ment, can still compete with the East. There is no doubt that 

 Para rubber is much better than Ceylon rubber for the manu- 

 facturer. Ceylon claims, however, that she supplies a rubber that 

 is 25 per cent, richer than Para rubber because of the loss in 

 washing. This will easily be overcome. It is already realized, 

 and all steps are being taken to cure the rubber in such a way 

 as to obviate this loss and yield the same purity of rubber .ts 

 Ceylon claims to produce. 



The speculation in rubber on the Amazon is altogether shame- 

 lul. In many instances the price here in New York is much 

 lower than that paid by some export houses in Para, .\ccording 

 to the present outlook sales at that port will be largely for future 

 delivery. Though they do not have the rubber nor even have 

 it in view, some Para exporters sell for future delivery at a 

 much lower price than is actually quoted in the New York 

 market. Of course, should the quotation rise, they are liable to 

 be badly caught. They do not take this into consideration, but 

 continue to lower the price with every sale. 



As we stated above, the commerce is becoming more and more 

 stable, since earning less they spend less. The government 

 which calculates its budget from the former price or the pre- 

 vailing price has a greater deficit each year and is seeking a 

 way to regulate this, from which originate the valorization 

 schemes. In attempting to improve this situation the state gets 

 in touch with the Federal government, which, being already in- 

 terested in other products, mixes them all up together, and 

 brings forth a valorization plan which, while suitable to some.' 

 cannot be suitable to all. \i any rate the entire thing will brinu 

 confusion and the men who will stitfer will be the same rubber 

 exporters. 



The low price of rubber renders the income of the country 

 less. For this reason they are trying to increase it by paying 

 more attention to other products, especially hardwoods with 

 which the forests of the Amazon are full, and which are very 

 valuable and cannot be gotten in any other country. All other 

 timber is also to be found there, and will surely be in demand 

 after the war ceases. Miguei. P. Shelley. 



PLANTING HEVEA ON THE AMAZON. 



The following paragraphs are taken from a letter, which re- 

 cently appeared in a paper published in Manaos, written by the 

 owner of an estate near the mouth of the Purus River, some 

 miles above Manaos, who is planting rubber extensively and 

 apparently with a good deal of enthusiasm. 



"On reading the message of the Governor of the State, in that 

 interesting part where he treats of the means of encouraging the 

 planting of Hcvca in our State, I could not resist the duty of as- 

 sociating myself with this excellent train of thought, seeing that 

 in my opinion the planting of Hevca is one of the surest means 

 of assuring the future prosperity of the Amazon. I have, in fact, 

 already planted many thousand rubber trees and am still con- 

 tinuing to do so. 



"In addition to the recommendations of the Governor's mes- 

 sage it would be specially useful, Mr. Editor, if the authorities 

 of the interior were instructed to insist upon Hcvca being planted 

 when State lands are encroached on and cleared for planting 

 cassava. These clearances are abandoned after making the floor, 

 and fresh forest is cleared for the ensuing ye^r, leaving the 

 former clearing to become overgrown again with jungle, while 

 it would be so simple to plant Hevca, seeing that one man can 

 plant a thousand trees in a day. 



"It is thus that our forests are getting cut down without any 

 permanent advantage to ourselves, and to the detriment of our 

 children. 



"If a man puts in a day's work planting a thousand rubber 

 trees among his cassava, it is by no means a day lost, as cleaning 

 out the weeds and undergrowth benefits the cassava as well, and 

 when the cassava is pulled up at the end of the year, the land 

 remains fairly clean for another six months, which gives the 

 Hcvca a start of eighteen months and a growth of ten feet in 

 height, so that it runs no risk of getting caught up and choked 

 by the jungle afterwards. 



"By adopting this plan I myself have rubber trees five years 

 and eight months old, with a circumference of 110 centimeters 

 at the base, that could already be tapped by modern methods." 



NEW CRUDE RUBBER FIRMS AT PARA AND MANAOS. 



The firms of Zarges, Berringer & Co. and Zarges, Ohliger & 

 Co., which have dealt extensively in crude rubber in Para and 

 Manaos, and from which the capital and interests of E. A. 

 Zarges and Heilbut, Symons & Co., of London and Liverpool, 

 were withdrawn on December 31 last, have been succeeded by 

 Berringer & Co. and Ohliger & Co., who will continue the busi- 

 ness. F. C. A. Berringer and Hugo Ohliger are joint partners 

 in the new firms, the former of which will have its headquarters 

 at Para, the latter being located at Manaos. A circular issued on 

 .\ugust 4 names F. W. F. E. Paschen as their authorized repre- 

 ';ciitative in those cities, with full power of attorney. 



