90 



THE INDIA RUBBER WORLD 



[November 1, 1915. 



Benzol and naphtha solvents can now only be used by firms 

 working directly or indirectly on government orders. A re- 

 cent decree fixed the qualities and prices of these solvents 

 as follows: 



Marks. L\ S. Currcitcy. 



Pun- toluol I'cr 100 kilos. (220 funds) 45 $10.71 



Benzol, naphtha solvi-nt and xylol 63 14.99 



Combination of 707<. benzol and 30% alcohol 67 15.95 



Combination of 25% benzol and 7S7c alcohol 74 l,.til 



Other combinations or mixtures than tho.sc aljcive given 

 are not allowed. The shortage of crude rubber and the gen- 

 eral use of reclaimed qualities make the rubber reclaiming 

 business exceptionally good; all the reclaimers here are very 

 busy. 



W'c hear that the advance of our troops in Russian territory 

 has obliged the "Prowodnik" factory to remove to Charkow, 

 and that there is even a question of transferring this huge 

 rubber plant to a point beyond the Ural mountains. 



Our rubber manufacturers have been large contributors to 

 all the government's war loans. Only recently the Conti- 

 nental company of Hanover contributed 5,000.000 marks to 

 the third war loan, while its employees subscribed 1,000,000 

 marks, making the total contribution of the Continental works 

 6,000.000 marks [$1,428,000] for the third loan alone. 



The reopening of our foreign trade after the war is a sub- 

 ject that is receiving much serious attention here. In my 

 last letter I mentioned rumors of German interests collecting 

 large quantities of raw materials in neutral foreign countries 

 to be rushed to Germany as soon as peace is resumed. Meet- 

 ings have been held and will continue to be held by repre- 

 sentative organizations to discuss the future of our foreign 

 coinmerce. 



The scarcity of rubber and manufactured rubber goods led our 

 government recently to instruct school teachers to tell their pupils 

 to search the roadways over which they pass and pick up all 

 pieces of glass and sharp metal likely to injure the tires of cycles 

 and motor vehicles. From all sides we hear that the effect of 

 these orders has been magical and that tire trouble brought about 

 by glass, nails, sharp iron junk, etc.. is now quite insignificant. 



A GERMAN VIEW OF THE EFFECT OF THE WAR 



ON THE WORLD'S MARKETS FOR 



RUBBER GOODS. 



A RECENT issue of the "Gummi-Zeitung." published in 

 Berlin, contains a comprehensive article giving the Ger- 

 man view of the effect of the war on the world's markets for 

 rubber goods and the possible future of the international 

 trade in this line. Here is the gist of the article: 



Before the war broke out the world markets had been w-ell 

 stocked in rubber goods of all kinds, with the possible ex- 

 ception of mechanical goods and toys. The demand for 

 mechanical goods is one of the most constant and regular 

 in the rubber trade. Germany was perhaps the most impor- 

 tant supplier of the world's requirements in this line, but 

 England, France and the United States also produced and 

 exported large quantities of rubber mechanical goods. There 

 being so many sources of supply, importers and dealers felt 

 sure that, should any one of their providers become incapaci- 

 tated, they could rely on the others to supply their demands. 



In this they made a grievous mistake. Germany was cut 

 off by the war, but England and France could not take her 

 place, for their manufacturers were too busy manufacturing 

 for domestic and war needs. There remained the United 

 States, who accepted an agreement with England that has 

 tied up her export trade in rubber goods. Even were there 

 no such contract to restrict their operations, American manu- 

 facturers could do but little foreign trade, for their domestic 

 market absorbs practically all their production of rubber 

 mechanical goods. The result is that most European coun- 

 tries have all they can do to supply their own needs, while 



China and other foreign markets are obliged to suffer and 

 wait. 



Rubber footwear was part of the wearing apparel of prac- 

 tically every Chinaman. Northern China obtained most of 

 its rubber goods from Russia, which can hardly be expected 

 to be able to continue business under present conditions. 

 The Allies are absorbing all the rubber footwear they can 

 produce and a good portion of the American production. The 

 rest of the American production is consumed by the domestic 

 market. The same state of affairs exists throughout the 

 rubber trade of the world. Germany hears from all sources 

 that there is a shortage in rubber goods. 



However, it cannot be said that the demand for rubber 

 goods is very large. Outside of mechanical goods the de- 

 mands have, generally speaking, been rather limited. The 

 unsettled state of affairs leads merchants to purchase only 

 from hand to mouth and to allow their stocks to become 

 depleted. This practice will prevail until the war is ended. 

 "What will happen then?" There will be a great boom in 

 the rubber trade. 



In spite of all the writings of the British press. South 

 Americans and other neutrals will be glad to purchase Ger- 

 man goods. Little inclination has been shown towards pur- 

 chasing British goods. The trade Germany is losing while 

 the war lasts goes to .\merica. When South America shall 

 have exhausted the supply of rubber goods Germany fur- 

 nished her during the six months preceding the war she will 

 look to the LTnited States for further supplies. The British 

 press states that Germany's losses are .'\merican profits. This 

 is so. But America's gains are also British losses. Neither 

 America nor England can compete successfully with German 

 rubber goods, for their costs of production are too great. 

 That is why they have been obliged to specialize in their 

 exports of rubber goods. Germany sells all kinds of rubber 

 goods, while they have to specialize in a few lines in which they 

 can offer better conditions and prices. German merchants 

 can offer the entire line as a whole at better prices and they 

 will soon regain their supremacy when peace is re-established. 

 .America's gains will be but temporary except in a few special 

 lines. The real loser in this war will be England. 



CONDITIONS IN RUBBER TRADE IN HOLLAND. 



The .American Consul-General at Rotterdam, Holland, re- 

 ports that only $250,000 worth of rubber shares was sub- 

 scribed to in the Netherlands in 1914, as compared with 

 $1,470,000 offered and subscribed to in that country during the 

 previous year. Notwithstanding the fact that few shipments 

 of rubber were received during the latter five months of 1914, 

 the imports of crude rubber for that year exceeded those 

 for 1913 by something like 650,000 pounds, the total for 1914 

 being 2,935,066 pounds, against 2,286,900 pounds for the pre- 

 ceding year. 



The port of Rotterdam's exports of crude rubber to the 

 United States amounted to $302,520 in 1914 as compared with 

 $159,789 exported to this country in 1913, showing an increase 

 of $142,731. While the exports of rubber waste amounted to 

 $76,743 in 1913, Rotterdam only shipped $19,188 of rubber 

 waste to the L'nited States during 1914. 



RUBBER FAMINE IN SWEDEN. 



Mention has already been made in these columns of the tire 

 famine prevailing in Sweden through the government's failure 

 to comply with Great Britain's request that it place an embargo 

 on all exports of rubber and rubber goods. Late reports from 

 reliable sources stated that matters had become so serious that' 

 only 160 motor cars were able to continue service in Stockholm 

 owing to the shortage of tires. Lately, however, the government 

 has acceded to the British demands and the serious situation 

 created by the lack of rubber will no doubt soon be removed. 



