296 



THE INDIA RUBBER WORLD 



[Februakv 1, 1917. 



It is only natural that when the news of this large company's 

 proposed activities became noised abroad among the planting 

 community it had rather a mixed reception. The first impulse 

 was to resent an apparent intrusion on what might be termed 

 "our own preserves," but second thoughts led to a change of 

 view, and now it can be said with confidence that the United 

 States' entry into the great industry of Malaya will be generally 

 welcomed by all in any way connected with it. It is recognized 

 that the putting of capital into a country, while furthering the 

 ends of the capitalists, cannot fail also to increase the prosperity 

 of the country concerned. I have heard it said that planter an- 

 tagonism to the American invasion is based on fear of "Amer- 

 ican methods," but this surely is a childish view to take. If, 

 say others, the Americans have anything to teach us in the art 

 of profitably administering our properties, let us learn it all as 

 quickly as possible, for these be days when we need to get the 

 best possible results from all of our possessions. If our methods 

 are as good as any that can be imported, they are not likely to 

 be disturbed, for the newcomers are hardly likely to want change 

 just for the sake of change. 



As regards the risk of over-production, if quantities of new 

 capital are introduced, there is no need to tell anyone connected 

 with the trade that the demand for rubber is increasing by such 

 leaps and bounds that any such fears need not be entertained 

 for a moment. It is even possible that there may come again a 

 period of such scarcity as was experienced some ten years ago. 

 There are now trades to which rubber is so essential, and that 

 in vast quantities, that those who have sunk capital in such 

 businesses, feel the necessity of taking a direct interest in the 

 production of the raw material. For one thing in particular they 

 are naturally anxious not to be entirely at the mercy of the 

 market — and the market price — in the matter of supplies. The 

 present time, too, is considered particularly opportune for com- 

 ing in for the simple reason that the bulk of rubber plantation 

 capital is held in Great Britain, and as the war goes on it will 

 be increasingly difficult to find the money to develop the large 

 number of estates, which are still in need of development. With 

 new British capital for the industry diminishing, there should 

 certainly be companies willing to sell their properties or give 

 part share in them rather than see them run to weed. 



On the British side it is asked : Is it desirable to let foreigners 

 get a big hold on our plantations? In the ordinary way the 

 answer would be no, but in a case where it is necessary to sell, 

 then America is the place to which to look for good prices. In 

 fact, in the present condition of world politics, it is the only 

 place to look to, seeing that Germany does not count, and that 

 other allied nations have no spare capital to invest in foreign 

 ventures. Then, from the point of view of the general interest 

 of the colmtry itself, any development of the land is to be wel- 

 comed. There are thousands and thousands of acres of rich 

 land awaiting development, and only outside assistance can 

 make this possible as it is obvious that for years after war is 

 over the burden of taxation will prevent a large volume of 

 British capital being available for colonial purposes. It is not 

 likely that in such circumstances Britain will run the risk of 

 detriment to the territories under her care by raising obstacles 

 to foreign capital. Without help the colonies will decline, but 

 by accepting it both Great Britain and those who assist ■yvill 

 benefit. From all points of view, then, the promised "American 

 invasion" of Malaya is to be heartily welcomed. 



Recent company reports indicate that, while practically all 

 estates are showing steady and substantial profits, directors are 

 being more cautious than ever in the matter of making large 

 allocations to reserve. It is expected that war taxes on profits 

 are to be made heavier still, and when the pressure of war 

 conditions is becoming heavier every day, companies have to be 

 prepared for almost any calls. As regards the thriving nature 

 of the industry, nothing is more significant than the way in 



which cocoanut companies are abandoning that product in favor 

 of rubber. Only three or four years ago there was great talk 

 of a boom in cocoanuts, a boom that was to outrival that in 

 rubber of a few years previous. "The consols of the East" was 

 one expressive phrase used to describe the new industry, and 

 a good deal of money was put into cocoanut estates in various 

 parts of the peninsula. But the boom has not eventuated. For 

 some reason cocoanut cultivation does not prove a general suc- 

 cess. Various causes hinder the development of estates, and 

 speculators are finding that they will have to wait a long time 

 for the big profits promised. So now rubber trees are replacing 

 cocoanut trees in a good many cases. 



ANOTHER VIEW OF THE AMERICAN INVASION. 



ALL rubber men do not hold the opinion of the correspondent 

 of The India Rubber World on this matter, however. Dis- 

 cussing the tendency of the "wise men of the West" to acquire 

 land on British soil in Malaya — and plant rubber in competition 

 with British planters already established there, our English con- 

 temporary "Tropical Life" states the drawbacks of such a ten- 

 dency from the point of view of many British planters. 



Firstly, it would further increase the output of raw rubber by 

 outsiders, who cannot do so well elsewhere, when we British 

 planters are already threatened with a surplus in the near future 

 as it is. Secondly, as the manufacturers are at the back of the 

 move, they can only be after producing their own supplies, or a 

 portion of them, thereby reducing their competition for our 

 output. 



Regarding the viewpoint of the American manufacturer who is 

 striving to protect himself from the raids in the form of rubber 

 booms made upon his legitimate business, our English contem- 

 porary continues : 



But how is the American manufacturer proposing to protect his 

 interests? Is it not at the expense of our own by coming to 

 British Malaya to plant rubber against our own planters after 

 having watched them all these years risking and losing money, 

 health and even lives in establishing the industry and showing 

 how it can be carried on with safety to pocket and person. 



Lastly, but most important of all, there is the question of native 

 labor supplies. From what source will the Americans draw their 

 requirements ; from British India and elsewhere within our 

 Empire, when the great question of the day is to know how the 

 British-owned estates, sugar, cocao, etc., will do five or ten years 

 hence, when India keeps her labor to herself and our own areas 

 have been largely increased as they must be if the world is not to 

 run short? 



We have no feelings but those of good will towards our Ameri- 

 can cousins, so long as they are not hyphenated ones ; but know- 

 ing as we do what a large proportion of German blood there is in 

 the so-called American hustlers now overflowing into the world. 

 South America, British territory and elsewhere, we feel, there- 

 fore, before we set up and allow outsiders to grow fat at our 

 expense, now we have proved that they can do so, that we ought 

 first to consider what harm can befall our planters by doing so ; 

 and secondly, and above all, let us analyze the constitution of the 

 companies and of the S}'ndicates that are proposing to invade and 

 exploit British Malaya at our cost. The wisdom of allowing: 

 genuine Anglo-Saxon Americans to settle in Malaya is doubtful, 

 but it would be worse than wicked to feed Germany and Austria 

 through the United States, as we may do by such an action. Even 

 from the competitive point of view it would be bad to take the 

 backbone out of the New York orders by allowing American, 

 manufacturers to settle in British territory to produce a portion 

 of their supplies ; but if, hidden behind the cosmopolitan back of 

 Uncle Sam, we must feed Germany and Austria as well and spoil 

 their future demand for our plantation rubber also, it would not 

 only be wicked, but downright suicidal for British interests won 

 at so much cost to British subjects. 



As already said, we have nothing but good will towards the 

 genuine inhabitants of the United States, who, we know, are well 

 disposed towards us. Even in their case, however, we believe in 

 the saying that "Charity begins at home," and as America is so 

 e.xtremely wealthy. Uncle Sam can well afford to continue to buy 

 our rubber, as he has been doing, instead of coming in to produce 

 rubber to reduce his competition as a buj'er in the world's 

 markets. 



