688 



THE INDIA RUBBER WORLD 



ISei'Tk: 



1, 1919. 



It was estimated that about 35 per cent of these imports would 

 be required for the governmental needs, leaving 65,000 ions to 

 be allocated to the trade for civilian consumption. (See Table 

 IV.) Allocations were made to manufacturers on the basis of 

 seven-sixteenths of their 1917 consumption, and each manufac- 

 turer was instructed to apply for an import certificate entitling 

 him, or others in his behalf, to receive an import license for his 

 respective share. 



The preliminary negotiations leading lo the cutting of imports 

 were held in April and the anticipation by the trade of some 

 form of restriction stimulated buying. Thus large contracts 

 were entered into for the immediate shipment of rubber to the 

 United States in order that stocks might be accumulated before 

 the expected restrictions went into effect. (See Table V.) The 

 restriction of May 8 did not apply lo shipments which had left 

 foreign ports prior to that date, and since the time required for 

 transporting rubber from primary markets to the United States 

 is considerable, the actual imports during May, June, and July 

 were much greater than the specified 25,000 tons. In fact, 55,000 

 tons of rubber entered American ports during these three 

 months. The uncommon size of these imports is to be accounted 

 for entirely by the stimulated purchases of the preceding April. 



T\BLE V— Stocks pf Rubber (n the United States in 1918. 

 [Long Tons.) 



^Ii'd7 b;- importers 13.223 



Held b;- manufacturers 34,25b 



Total stocks ^'^^Sl 



■'"HellTbr importers 19,349 



Held b;- manufacturers 38.0-4 



Total stocks 57,373 



Oct.-ber 1— , , , , , 



Held b:- importers 12.664 



Held bv manufacturers ^».35a 



Total slocks 61.019 



To prevent a speculative rise in rubber prices as a result of 

 these restrictions, the War Trade Board on May 1 fixed the fol- 

 lowing maximum prices : 



Cents. 



?ara u|,river Kne 6S 



Plantation — ,, 



First latex crepe 63 



Smoked sheets, standard quality 6J 



These prices were supplemented on May 14 by maximum 

 prices for other grades of crude rubber; while on May 29, June 

 13, July 2, and July 6. respectively, still further additions were 



made."' All prices were on the basis of c. i. f. New York. 



The effect of the restrictions upon rubber prices soon became 

 evident, and it later appeared that the fixing of maximum prices 

 had been an unnecessary expedient. The curtailment of imports 

 immediaetly made itself felt in the primary markets, where al- 

 ready the decreased consumption of other nations had had its 

 effects. The further elimination of means of disposal naturally 

 led to keen competition among the holders of the existing large 

 stocks and prices tended to fall still further. 



While the bulk of the market sales for rubber during Ihe lat- 

 ter six months of 1918 was below the quoted maximum prices 

 shown in Figure 2, a small amount of free rubber not subject 

 to War Trade Board allocation which was still on the market 

 was sold at a level distinctly higher than restricted rubber. It 

 is interesting, also, to note that sales of allocated upriver fine 

 Para rubber were made in September at 58 cents (maximum 

 fixed price being 68 cents), while at the same time plantation 

 first latex crepe sold for 37 cents (maximum fixed price being 

 63 cents). 



This anomaly can be explained in part by the allocating to 

 Brazil by the War Trade Board substantially as much rubber 

 as to the plantations, although the production of the former is 

 but one-sixth of the latter. There resulted, accordingly, a heavy 

 overproduction of the plantation variety and keener bidding at 

 plantation markets for the right to ship to American ports. It 

 should be added also that the maintenance of relatively normal 

 values by Brazilian rubber was in part to be accounted for by 

 the stabilizing control over its price by the Bank of Brazil. 



The amount of rubber to be licensed for import was changed 

 on November 22 to 32,500 tons for the last quarter, an increase 

 of 7,500 tons over the previous maximum. Restrictions as to 

 the quantity of crude rubber which might be Hcensed for import 

 from overseas were further modified on December 12. After 

 that date licenses to import crude rubber from overseas were 

 issued without limit as to quantity, provided applicants con- 

 formed with the existing regulations of the War Trade Board. 

 Maximum prices and allocation features were also withdrawn 

 at the same time, although consignments to The Rubber Asso- 

 ciation were still required and the usual guarantees demanded. 

 That the withdrawal of these regulations had little effect upon 

 crude rubber prices is made evident in Figure 2. 



'■' A full list of the types of rubber 

 gciher with tlie re.^iiective price for each, is prcscnitu ii 

 troi Over Trices,"' Bulletin No. 3. War Industry Beard. 



Con- 



Standards Recommended by the Tire and Rim 

 Division of the S. A. E.' 



THE Standards Co.mmittee of the S. A. E. held a meeting 

 June 23, 1919, to pass on the work accomplished by the 

 various divisions of the Society. The following report 

 of the Tire and Rim Division has been approved by the Stand- 

 ards Committee, the Council, and the Society at the semi-annual 

 meeting and is to be submitted to a letter ballot of the voting 

 members before final adoption as standards of the Society. 

 SOLID TIRE SIZES. 

 This subject was presented at the February meeting of the 

 Society, but was referred back to the Division pending further 

 consideration by the National .\utomobile Chamber of Com- 

 merce and the Rubber Association of America. As these or- 

 ganizations have definitely adopted the following solid tire sizes, 

 the Division recommends that these sizes be adopted by the 

 Society. 



iFrorn "The Toi'i iial of the Society of Automotive Engineers," August, 



The complete table with metric equivalents follows : 



Inches. 



Mm. 



Mn 



32x3 75/660 



32x3yi 90/660 



34x3^4 90/711 



36x3i/j 90/762 



32x4 100/660 



34x4 100/711 



36x4 lOfl/762 



34x5 125/711 



36x5 125/762 



40x5 123/864 



36x6 150/762 



40x6 1 50/864 



36x7 176/762 



40x7 175/864 



36x8 200/762 



36x10 250/762 



40x10 250/864 



40x12 300/864 



40x14 350/864 



In presenting this report, C. C. Carlton said that these sizes 

 proposed for S. A, E. Standard are an amplification of those 

 which were adopted previously by the Society and the War 

 Industries Board. They were recommended by twenty members 

 of the Tire and Rim Division and include only the present 

 standard sizes and their metric equivalents. 



