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THE INDIA RUBBER WORLD 



1.1 \M ARY 1. 1915. 



Transatlantic Notes. 



i 'm i i rrespondent. 



THE EMB \RGO UFOt i Pi IRTS. 



SINCE the war broke out rubber has been receiving increas 

 ing attention at the hands of the British government, and 



the- finishing touch was applied in the sec I week of 



November by the total prohibition of exports of the commodity 

 from the United Kingdom. The irony of the Miuaiinn lies in 

 the fact that, whereas a few months ago the authorities were 

 so lax about the rubber trade that the growers and dealers con- 

 ceived it their duty to induce the government to declare the 

 ice conditional contraband, the industry is now suffering 

 from a surfeit of departmental attention. The noose has been 

 gradually drawn tighter, and now there i^ grave danger that 

 unless the restrictions are shortlj relaxed the rubber plantation 

 industry will be strangled. 



The various stages by which the present impnsse has been 

 reached were, first of all, the order that shipment from the 

 Orient was to be confined to the Allied ports and neutral coun- 

 tries in Europe. Then came the declaration that rubber was to 

 be included in the list of conditional contraband, an order that 

 was later converted into one of absolute contraband. The next 

 step was the resolution that plantation rubber must be shipped 

 only to British ports, and finally came the staggering announce- 

 ment that export of the commodity from this country must en- 

 tirely cease. Rightly or wrongly, the trade feels that it has 

 scarcely received fair treatment at the hands of the govern- 

 ment, although it is recognized that at this juncture the public 

 weal must be the paramount consideration. It is true, however, 

 that, while the government has in all other cases affecting trade 

 and finance conferred with the leading men in the banking and 

 commercial world before taking action, in the case of rubber 

 the export embargo was resolved upon suddenly and apparently 

 without any reference to the industry concerned. The need for 

 exhaustive consideration of the subject before taking drastic 

 action was the more desirable in this case because of the very 

 complex nature of the crude rubber industry. It is rightly con- 

 tended that, outside rubber circles, knowledge of the trade is of 

 a very nebulous character, hence the general feeling that im- 

 porters and others should have been consulted before a measure 

 so uncompromising and charged with such grave consequences 

 should have been set in motion. 



It is unnecessary to go into details as to the causes which 

 have led up to the embargo, for these are doubtless fully ap- 

 preciated on both sides of the Atlantic. The evidence was pretty 

 conclusive that Germany and Austria were obtaining supplies 

 of rubber through neutral countries. The exports of rubber 

 from Great Britain to certain neutral countries were enormously 

 in excess of their normal requirements. The explanation was 

 obvious, and the government took what they deemed to be the 

 only safe action in the circumstances. No resentment is felt at 

 the intention to stop the trade, but only in regard to the method 

 employed. It is thought that alternative measures might have 

 been adopted which would have been fully as effective while in- 

 flicting less hardship upon all concerned. 



As matters stand all interests will suffer by the embargo. 

 The outlet for the producing industry will be seriously blocked, 

 while consumers in neutral countries will be hampered by lack 

 of raw material. In a very short space of time these factors 

 will become acute, and the question will naturally be asked 

 whether the interests of the many are to be sacrificed for those 

 of the few, especially when the latter are engaged in a trade 

 which, if not precisely illegitimate, is of a nature that may well 

 lead to international ruptures. Viewed impartially, it is scarcely 

 conceivable, on common sense grounds, that the legitimate con- 

 sumers oi plantation rubber in neutral countries will not bring 



pressure to hear in the right quarters for the removal of the 

 d'etre oi the embargo. Indeed, the majority of neutrals 

 have already done their part by prohibiting the re-export of 

 crudi rubber, and in some cases of manufactured rubber goods. 

 But failing the necessary assurance from other quarters that 

 thi supply of raw rubber to Germany will cease, there is not 

 the slightest doubt that the British government will no1 relax 

 the presenl embargo one iota. 



Owing to the various government restricti"ns issued recently, 

 the Board of Trade returns relating to crude rubber shipments- 

 during November are of peculiar interest. In respect of both 

 imports and exports, the latter especially, a heavy falling off is 

 shown in comparison with the figures for the previous month. 

 Taking imports first, it will be seen that Brazilian shipments to 

 Great Britain fell off by more than 50 per cent, during November. 

 On the other hand, supplies from the eastern plantation zone show 

 a fairly big increase. In the circumstances this was only to be 

 expected, because export to other than British ports has been 

 prohibited. Altogether the imports have not suffered a very 

 serious reduction and it is a moot point whether the deficiency 

 has not been counterbalanced by direct shipment from some of 

 the ports of origin to the consuming centers. 



IMPORTS INTO THE UNITED KINGDOM. 



1914. 



From November. October. 



French West Africa founds 69.400 9.100 



Peru 97,600 105.700 



Brazil 1,047,600 2.357.200 



Gold Coast 6,400 17,800 



Straits Settlements 4.565,800 3,226,200 



Federated Malay States 1 .700,700 2.048,400 



Ceylon 2,298,800 1.675,400' 



Other Countries 1,459,600 2.251,300 



11,245.900 11.691.100 



EXPORTS FROM THE UNITED KINGDOM. 



1914. 



To November. October. 



Russia founds 1,066,500 4.703.500 



Germany 



France 497.200 254.700 



United States 6,599,500 8,674,100 



Other countries 649,700 409.400 



8,812,900 14.041,700' 

 The export figures are naturally more striking, but when it is 

 considered that the embargo upon shipment from the United 

 Kingdom came into force on November 10, it is remarkable that 

 the falling off was not greater. Particularly is this the case in 

 respect of shipment to the United States. Presumably the whole 

 of the 6,599,500 pounds exported were despatched to America 

 during the first ten days of the month. This is at the rate of 

 about 19,798.500 pounds for the whole of November comparing 

 with 8.674.100 pounds in the previous month. 



No doubt the extraordinary shipments to the United States dur- 

 ing the early part of the month influenced the government in 

 their decision entirely to prohibit export. So far, the statistical 

 position of crude rubber in this country has not been materially 

 affected by the embargo, because stocks were already abnormally 

 low whilst reduced imports have partially counterbalanced the de- 

 crease in exports. 



