THE INDIA RUBBER WORLD 



Coordinating the Rubber Interests, Foreign and Domestic. 



By Alfred C. Eggers.'' 



MANY limes of late, ilie atleiition of American manufac- 

 turers has been brouglit definitely to the necessity of 

 becoming less dependent upon foreign intermediate agen- 

 cies for crude rubber supplies. The automobile industry is sim- 

 ilarly interested in the problem, as are also the rubber planter, 

 collector and dealer. 



There is no present practical method for the rubber manufac- 

 turing industry to become inde- 

 pendent of foreign countries 

 for its supply of crude rubber, 

 nor would it necessarily desire 

 this. But, if a way could be 

 devised by which the common 

 interests of producer, con- 

 sumer and trader could be co- 

 ordinated to their mutual ad- 

 vantage, then they need no 

 longer be dependent upon for- 

 eign capital to keep permanent 

 the flow of crude and manu- 

 factured rubber betAveen them. 



Because finance is essentially 

 the hfe of any business, the 

 problem above presented is, of 

 necessity, a banking one. It 

 would first be required that a 

 condition of mutual faith be- 

 tween seller and buyer be cre- 

 ated; and secondly, the proper 

 machinery must be maintained 

 to bring buyers and sellers 

 together on an equitable basis. 

 For these purposes a well-or- 

 ganized bank is the best instru- 

 ment known. 



How then to coordinate the 

 interests of producer, consumer 

 and trader to their mutual ad- 

 vantage ! As an example, it 

 might serve to consider the 

 markets of North and South 

 .'\merica; and it may be sup- 

 posed that there exists a mer- 

 cantile bank in each country, 

 which to all intents and pur- 

 poses is a purely local bank 

 financing the local market, but 

 under joint North American and local management. 



Through the medium of these several local banks, the rubber 

 markets of the Americas would be coordinated to the highest 

 mutual advantage by a cooperative or.ganization that would ofifer 

 the following: 



1. The United States offices to form an indispensable, helpful 

 and dependable link between trade abroad and trade at home. 



2. A series of affiliated banks which would operate in one 

 country only, and be, to all intents and purposes, local banks ; and 

 would thus render an indispensable service to local producers 

 and North American consumers. 



3. A dependable structure supported by producer, consumer 

 and trader, and rendering a like service to each, because inter- 

 ested in furthering the success of all. 



4. A sound cooperation which would clear the path between 



iRubbcr advis 



Mercantile Bank of the .^me 



York Civ 



the South American rulibcr forests and the North American fac- 

 tory, because present hindrances, difficulties, misunderstandings 

 and even distance would be practically eradicated by smoothly 

 running machinery. By the friendly push at one end and the 

 helpful pull at the other, the load of rubber must surely keep 

 moving with promptness and regularity. 



One other great advantage would be gained wliich the rubber 

 manufacturer in the northern 

 continent and the distributor in 

 the southern could and would 

 grasp. Simply by reversing the 

 process, the same agency which 

 brought the crude material 

 northward could also return 

 the manufactured products to 

 the South, and thus bring the 

 two continents into an even 

 closer partnership. 



The accomplishment of what 

 has been outlined above is in 

 reality a fact, for today the 

 machinery is smoothly running 

 to demonstrate that the rubber 

 jungle is not impregnable to 

 the practical rubber consumer, 

 nor the northern factory door 

 so impossibly distant from the 

 rubber collector. 



It will be borne in mind that 

 the many agencies, branches 

 and affiliated institutions are 

 under the joint local and North 

 American control, or, in other 

 words, the producer and the 

 consumer, as well as the seller 

 and buyer are directly inter- 

 ested financially in the success 

 of the bank which is their meet- 

 ing place for trading. Thus 

 the bank fakes a position sim- 

 ilar to a produce exchange or 

 a practical clearing house which 

 expedites trade by linking for- 

 eign and domestic thought so 

 securely that difficulties are 

 N Centr.^l and South America, eradicated within its banking- 

 its mercantile banking ma- 

 chinery. Both seller and buyer receive the advantage of expert 

 advice as regards prices, terms, shipping facilities, freight and 

 insurance rates, so that expenses are reduced to a minimum. The 

 rubber seller names a price at which he will sell, the buyer names 

 a price at which he will buy, and the bank arranges all the remain- 

 ing details. Lack of space prohibits recounting the numerous 

 new and exceptional services thus rendered to buyers and 

 sellers alike. 



It is considered of special interest to rubber buyers that they 

 are today offered the opportunity to become directly interested in 

 the source of their crude rubber supply, and they will more readily 

 grasp the opportunity offered them as they become better ac- 

 quainted with their "clearing house," the bank. The rubber indus- 

 try of the United States need no longer be dependent upon foreign 

 countries for its raw material, because through such banks there 

 is no reason why the industry here may not virtually become a 

 partner of the foreign producing country. 



