JlNE 1, 1916.] 



THE INDIA RUBBER WORLD 



507 



THE RUBBER SITUATION IN BRAZIL. 



By Our Rci;iilar Cornspoiidcnt. 



CONDITION'S here continue to be most favorable. The 

 prevailing rubber prices, though substantially lower 

 than in the tirst days of the year, are still remunerative, even 

 lor those collecting their rubber in the most remote districts 

 of the upper .Xmazon and. as little of this season's crop has 

 been sold ahead, the people here have good prospects of 

 reaping the full benefit of the present heavy demand. There 

 will be real prosperity, both in Para and Manaos, if the 

 entire crop can be sold while prices hold at their present 

 level, and this crop will probably be a large one on account 

 of the thousands of men that have been driven from their 

 homes by the drought and famine in the State of Ceara and 

 who are now employed in gathering rubber in the states of 

 Para and .^mazonas. These new rubber gatherers are, of 

 course, unskilled and. though they certainly will increase our 

 rubber production, they may also do great harm to the trees. 

 The once rich rubber districts on the Rivers Solimoes and 

 Purus are said to be now aban- 

 doned, having been completely ex- 

 liausted. In the islands around 

 Para the trees are being literally 

 tapped to death. 



There are millions of rubber 

 trees untapped in our vast for- 

 ist.s. The difficulty and travel 

 necessary to opening new cstradas 

 have led our native gatherers to 

 visit the same seringaes year in 

 and year out with the result that 

 the exploited trees have been 

 .apped to their limit. Once the 

 lower bark has been tapped until 

 It is useless, crude ladders are 

 used to reach higher parts of the 

 trees to practice "overhead'' tap- 

 l)ing, which is pushed as high as 

 30 and more feet above the 

 ground. The relative abundance 

 of labor we are now- enjoying is 

 leading to the opening of new 

 cstradas and exploitation of new 

 scringacs. Fresh trees yield 

 greater quantities of latex than 

 trees that have been visited for 

 years, and this exploitation of 

 new sources may well account 

 for the low prices at which our 

 rubber can now be produced. 

 GERMAN PfRCHASES. 

 Reports are current here that German interests have pur- 

 chased about 5,000 tons of crude rubber in this country for 

 delivery after the war. These purchases are said to have 

 been paid for in gold, and their object is believed to be to 

 make sure of a supply for a time when Germany might still find 

 difficulty in purchasing through F.ritish concerns as she was 

 doing before the war. 



RL-BRER DEALERS AFFECTED IIV liUITISH "BLACK LIST." 

 .Among the names of German and .\ustrian concerns estab- 

 lished in Brazil which have been placed on the "black list" by 

 the British Government are those of the following rubber dealers 

 and exporters: Ohliger & Co., Para and Manaos; Pralow & Co., 

 -Manaos ; and Semper & Co., Manaos. The effect of being black- 

 listed is that these concerns are barred from shipping in British 

 bottoms and from trading with British concerns. They can 

 continue to do business with neutral countries and to ship their 

 goods in neutral bottoms. As British steamship lines alone make 



regular calls at Para and Manaos under present conditions, this 

 blacklisting is a very serious matter for the firms concerned and 

 it is said that attempts are being made by them to avoid these 

 difficulties. An attempt was made to have the Brazilian Gov- 

 ernment interpose in the matter, but it has been intimated that 

 in case of too great agitation the British Government would go 

 so far as to withdraw British steamers altogether and Manaos 

 would be reduced to dependence on the irregular service neutral 

 shipping now offers. 



' IMP(.)KT .\NI) EXPORT DUTIES. 

 Our budget law for 1916 went into efifect on January 1. 

 It included no changes in the import or export duties on 

 manufactured rubber. In fact, there are no duties at all on 

 exports of manufactured rubber. As to the duties levied by 

 our several rubber-producing states on exports of crude 

 rubber, the only recent change in such duties is that pre- 

 scribed by the government of the State of Manaos, in a 

 decree dated June 12, 1915, which provided for an export 

 tax of 7 per cent ad valorem on rubber produced in the terri- 

 tory of the Javary river and its Brazilian tributaries. 



DIStRIMIN.XTING DUTY REPEALED. 



The Budget law for 1916 definitely repealed the provision 

 in the budget law for 1915 for reduced rates on articles made 

 of Brazilian rubber. It will be recalled in this connection 

 that the 1915 law called for discriminatory duties on articles 

 made of rubber of foreign origin, but neither the higher nor 

 the lower rates applicable to rubber goods have actually been 

 imposed since the early part of 1915, owing to the impossi- 

 bility of distinguishing, in the manufactured goods, between 

 Brazilian rubber and other sorts. 



A change that will affect all dutiable imports, rubber 

 goods included, is the increase in the proportion of import 

 duties payable on a gold basis from 35 to 40 per cent, which 

 will result in some increase of duty. 



AMERICAN MANUFACTURERS FAVORED. 



On January 14. 1916, the President of the Republic signed 

 a decree that will continue the preferential treatment which 

 has heretofore been allowed to products and manufactures 

 of the United States, including manufactures of rubber on 

 which the preferential reduction is 20 per cent. This is an 

 important advantage to American tire manufacturers, many 

 of whom are sending large quantities of their goods to this 

 country. 



PLANTATION PROPAGANDA. 



We Brazilians continue to witness with indifference the 

 efforts London rubber plantation interests are constantly 

 making to lead manufacturers to believe that their best 

 plantation sorts are superior to our Upriver fine Para. The 

 indolence of our people in this connection is without excuse. 

 It is not sufficient that we know our rubber to be the best 

 of all. It is high time for taking measures to protect our 

 interests and, at the some time, those of manufacturers. We 

 should not allow these manufacturers to be misled by the 

 incessant and well-planned propaganda of our chief com- 

 petitors. We, too, should spend some money in exploiting 

 the superiority of our native rubber for many manufactures. 

 Wlien will our autlioritics awake to this necessity, and when 

 will they reduce our excessive export duties and thus help 

 to place our rubber producers in a better position to meet 

 plantation competition? I am sorry not to be able to answer. 



CHANGE IN A BRAZILIAN RUHHBU EXPORTING CONCERN. 



A new rubber trading company has been chartered in this coun- 

 try to take over the export business heretofore carried on by 

 Schnack, Nueller & Koehln, at Coromba, in Matto Grosso, at 

 Puerto Suarez, Bolivia, and at other important points. The 

 legal headquarters of this company are at Hamburg, Germany. 



