i i'ki vuv 1, 1915. 



THE INDIA RUBBER WORLD 





T 



NOTES FROM DUTCH GUIANA. 



By Our Regular < orrespondent. 



Ill-', revenue of the colon] Fbi thi year 1914 was much 

 less than that of the pr< vious financial year. This falling 

 ofl was due to a partial failure of the balata industry con- 

 sequent upon the European wai and a corresponding depres- 

 sion in trade generally. Tin- year can hardly be recorded 

 as having been a prosperous one. Apart from the war, from 

 the effect of which the peasant proprietors and laboring 



classes suffered considerably, there was also a large increase 

 in the price of imported foodstuffs from the United States, 

 which advanced the cost of living. There does not appear to 

 be much hope of these high prices abating, and the result 

 will probably be, as far as this colony is concerned, that the 

 consumption of many articles will gradually be discontinued 

 in favor of local products, while the war lasts. 



Thirty motor carts were imported during last year, twenty- 

 live of which came from the United States, the trade with 

 which country has in the past few years shown a steady 

 increase. 



i Kvners of rubber plantations have every reason to be 

 satisfied with the results of the past year. The harvests of 

 1914 were exceedingly good. The prices were not as satis- 

 factory as might have been expected, but the planters have- 

 not yet begun to produce rubber in sufficient quantities to 

 have big turnovers. When the prices advance they will all 

 come in for big profits, for then large tpiantities will be regularly 

 shipped to Europe and the United States. We think the 

 waiting game of the planters a very sensible one. The by- 

 products, however, proved highly remunerative, and dealers, 

 in common with producers, can look back upon a year of 

 fair success in spite of the troubled state of affairs and the 

 unstable markets. There is also every reason to believe that 

 the present year will see a continuance of prosperity, and 

 in increased magnitude. The weather experienced towards 

 the end of last year was entirely favorable, and large crops 

 may be expected as the result. 



A fair amount of new land has been planted with rubber, 

 cocoa and coffee during the past year, but tli.--, still remain 

 unopened thousands of acres quite suited to riM.jer growing. 

 1 1 is also gratifying to note that up-to-date methods of cul- 

 tivation are being more generally adopted. 



With a view- to bringing about a further improvement in 

 tin- preparation and quality of plantation rubber, the Agri- 

 cultural Department has issued a set of recommendations for 

 the treatment of latex and the curing of rubber and its 

 sorting, grading and packing. As regards the costs of pro 

 duction in the colony, the retrenchment enforced last year 

 by the planters will compensate in tin- long run for the low- 

 prices of the products. 



The balata industry is practically ruined because of the 

 European war. and will continue to go from bad to worse 

 unless the government adopts measures to afford the com- 

 panies temporary aid. The financiers in Holland — or those 

 directly interested in the Surinam balata industry — have not 

 the money to make the necessary disbursements in the colony. 

 Thousands of kilos, of balata are tied up in the colony, which 

 under ordinary circumstances, would mean enormous amounts 

 of ready cash in circulation. These facts .ne responsible in 

 a great measure for all the misery experienced by the greater 

 part of the population, who derive their living, direct!} or 

 indirectly, from the balata industry. 



It was in 1880 that Dutch Guia&a entered the world's mar 

 i%cts as a balata • producer. She no U supplies about one- 

 quarter of the world's balata. Her largest exports were in 

 1913, with 1,155.540 kilograms (2,547,503 pounds), and she 

 would have beaten all records last yeai Inn for the Euro] 

 war. The government — by ordei oi the Ministers in Holland 



has declined all applications lor balata concessions, pend 



Ml rnmunications from th< Hague. Several per- 



sons are desirous of prospecting new tract ploitation 



when the crisis i- over, but no prospecting licenses «ill be 

 gi anted 



It i- encouraging, however, to note that the Governor i- 

 devoting serious attention to the economii condition of 



the colonj ill the present crisis. He has requcsti d the I ham 

 ber ot Commerce and the Labor Bureau to inquire into pre- 

 vailing conditions and to forward a joint report to the 

 government. 



NOTES FROM BRITISH GUIANA. 

 By Our Regular Correspondent. 

 IX previous letters mention has been made of the anxiety 

 * felt here because of the gloomy prospects of the balata 

 industry as a consequence of the war. Most local industries 

 — sugar in particular — have benefited rather than otherwise as 

 a result of the war. but the balata industry has been hedged 

 round with many difficulties. The system under which this 

 industry is conducted, by which the companies are called 

 upon to send large stocks of provisions to their depots in 

 order to provide the laborers with the necessaries of life, 

 threatened at one time to create a serious difficulty. In this 

 colony, as elsewhere, prices rose suddenly after the outbrcak 

 ot war, and the prospect of increased cost of production 

 immediately presented itself. This danger was averted by 

 the government, which appointed a committee to tix maxi- 

 mum prices for foodstuffs. But an even greater danger arose, 

 a permanent solution of which has not yet been arrived at, 

 although a temporary way out of the difficulty has been 

 found. 



The greater part of this colony's balata, as indeed of the 

 world's production, has in the past found its market in Ger- 

 many, and for the present that market is definitely closed 

 to the British producer, however, the neutral produce! ma: 

 be able to make use of it. The largest producer of balata in 

 this colony is the Consolidated Rubber & Balata Estates. 

 Limited, and this company is in the unhappy position of 

 having produced a record crop this year at a low cost, which 

 it is unalilt in dispose of except at a sacrifice, perhaps even 

 below tin cost of production. Consequently recourse has 

 been had to government assistance. The legislature has 

 authorized the government to guarantee an advance of $75,- 

 000 to be made bv the Royal Bank of Canada to the local 

 managers of the company, on a security of one pound of 

 balata lor every 15 cents advanced. The resolution embody- 

 ing this policy met with some opposition, but was passed 

 without a division. 



The exact position of ilk- compan) and, inferentially. of 

 the balata industry, cannot be better explained than by quo! 

 ing the governor's minute addressed to the Combined Court, 

 which was as follows "It is well known to the members of 

 the court that the I onsolidated Balata Co. controls very 

 nearly the whole of the balata production and export in 

 British Guiana. The company is in difficulties owing to the 

 present condition of the balata market, caused by the war 

 preventing the sale of large quantities of balata at a remunera- 

 tive price. The company now has f,t>7.lllin pounds of balata. 

 mi which the Royal Hank of Canada has a lien on account 

 of moneys advanced to the company. In addition tin coi 

 pany has at New Amsterdam, at Pptaro Mouth, in tin 

 Pomeroon, and mi tin w.-iv to these stations and to George- 

 town, balata to the amount of 425.000 pounds. This I: 

 balata is at present free from lien. Your approval is asked 

 lor the government to guarantee a further advance by the 

 Royal Bank oi I anada to the company to tin- amount of 

 $75,000, on the basis oi thi attached document. \< is 



