THE INDIA RUBBER WORLD 



53 



rat. rnltcd States Pat. Off, 



United Kingdom. 



1st of eacli month by 



THE INDIA RUBBER PUBLISHING GO. 



No. 25 West 45lh Street. New York. 



Telephone— Bryant 2676. 



CABLE ADDESS: IRWORLD, NEW YORK. 



HENRY C. PEARSON, Editor 



Vol. 53. 



NOVEMBER 1, 1915. 



No. 2 



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COPYRIGHT, 1915, BY THE INDIA RUBBER PUBLISHING CO. 

 Entered at the New York postoffice as mail matter of the second class. 



TABLE OF CONTENTS ON LAST PAGE OF READING. 



THE NEW EXPORT TAX ON CEYLON RUBBER. 



T-HEORETICALLY, the English mind is strongly 

 •'■ addicted to the doctrine of free trade — the im- 

 port and export of material and merchandise without 

 barrier or burden. But theories bend to conditions, 

 and as the times are very much out of joint the 

 Colonial authorities of Ceylon decided early in Octo- 

 ber to place an export tax of ten shillings per 100 

 I>ounds, or 2^. cents a pound, on all rubber leaving 

 their ports. Tliis actimi came as a distinct surprise 

 to the rubber importing trade of the United States 

 and its immediate efifect was an advance in price of 

 plantation rubber, followed by a lesser increase in the 

 ])rice of Brazilian sorts. 



One cause assigned for this new levy was labor dif- 

 ficulties on the plantations arising from the recent 

 riots in some of the Eastern cities; but probably the 

 l£; underlying reason was the financial pinch felt in Brit- 

 •— ish administrative circles, both at home and in the 



colonics, in unison with all the other belligerents. This 

 urgent need of revenue is likely to be a chronic con- 

 dition among the warring nations, at least for some 

 time to come, and as a consequence imposts that are 

 placed on commerce now may be looked upon as there 

 to stay for a considerable length of time. 



But the most interesting question is, who will have 

 to pay this extra 2j/2 cents per pound? The customer? 

 If so, the importers, manufacturers or consumers, or 

 all three combined, of the United States will have to 

 bear at least one-half the burden. The rubber exports 

 from Ceylon for the first eight months of the present 

 year, omitting re-exports of rubber produced else- 

 where, amounted to over 25,000,000 pounds. Nearly 

 40 per cent, of this was shipped direct to New York. 

 Undoubtedly another 15 per cent., which went to Lon- 

 don, later found its way to American ports. It will be 

 safe to estimate the total exports for the year at 

 40,000,000 pounds, over 50 per cent, of it coming, first 

 or last, to the United States. So that if the customer 

 pays the tax, our contribution for the year would 

 amount to over half a million. 



But in the present condition of the market, with the 

 abundant supply of rubber, the customer is not likely 

 to bear very much of this burden. In fact, he appears 

 already to have shifted it back upon the producer. For 

 though the price of plantation rubber advanced Ij^ 

 cents a pound on the announcement of the tax, in less 

 than three weeks' time this entire advance had disap- 

 peared and Ceylon rubber was being offered at the 

 same figures as before the imposition of the tax. 



There is no assurance, however, that the consumer 

 may not feel the efifect of this tax later. The exigencies 

 of the war will call for more and more revenues, and it 

 is quite within the possibilities that this initial tax of 2j/S 

 cents per pound may be materially added to, as necessity 

 arises, and that other Eastern ports may also get the 

 habit. It is quite conceivable under present conditions, 

 and with no prospect of immediate peace, that Eastern 

 rubber might ultimately be called upon to pay export 

 duties equal to those of South America, for instance, 

 where Manaos levies 18 per cent, and Para over 22 per 

 cent. In that event, the producer could hardly be ex- 

 jiected to bear the burden alone. Mis offerings would 

 certainly decrease, prices would aiKance, and the con- 

 sumer would either have to shoulder some share of the 

 burden or else be content with decidedly smaller supplies. 

 Of these two alternatives he would undoubtedly accept 

 the foriuer. 



