38 THE RUBBER INDUSTRY 



and Brazilian authority recognized once more. Since 

 that period the country has been administered as 

 national territory under the authority of Federal 

 officials. 



Throughout this eastern section of the Amazon 

 Valley no systematic attempt has been made to create 

 plantations of rubber-trees. Probably this is due to 

 the great abundance of the wild rubber and to the 

 scarcity of labour. The principal development in these 

 districts has taken place in comparatively recent years 

 only, and received its strongest encouragement from 

 the high prices ruling for the raw material from 

 1909 to 1911 ; and during that period all available men 

 were employed as collectors, to the complete neglect of 

 any form of agricultural enterprise. The result of this 

 condition of affairs was that the wage rate reached an 

 abnormally high figure, and it has not fallen to any 

 extent since the profits of the rubber industry have 

 been reduced to a minimum. It is unlikely now that 

 any serious attention will be paid to the opening up of 

 any plantation industry on a substantial scale in the 

 immediate future, the fear of lower prices due to Eastern 

 competition acting as a strong deterrent to any such 

 innovation. Moreover, the lands comprised in this 

 area are still enormously wealthy in virgin trees avail- 

 able for tapping whenever the financial situation shows 

 any marked improvement, or when different methods 

 permit of a decided reduction in the cost of production. 



With the exception of Iquitos, this region contains 

 no centres of any particular political or commercial 

 importance. Such towns as exist are nothing more 

 than distributing posts to supply the necessities of the 



