22 RUBBER AND 



to be obtained from traders naturally at high prices 

 and all must be carried long distances by steamer to the 

 scene of operations. For working a seringal, or estate, 

 of 200 estrades, an advance of 180,000 milreis, or nearly 

 10,000, including interest, may be required. 



The paths of the seringal are practically sublet to 

 the individual seringueiros, who have to pay for their 

 food, tools, transport, etc., at high prices, together with 

 interest on the loan advanced to them for incidental 

 expenses, out of the value of the rubber which they 

 obtain. Since the rubber must be sold by the owner to 

 the trader, and by the trader to the exporting firm, very 

 little profit is generally left for the individual collector. 

 The inland freights, moreover, are very high, and an 

 export tax has to be paid on the rubber at the rate 

 of nearly 20 per cent, ad valorem. 



The successful competition of the plantation industry 

 in other parts of the world has recently led to active 

 legislation on the part of the Brazilian Government, 

 with a view to removing as far as possible the handicaps 

 under which the wild rubber industry has hitherto 

 laboured. These fall mainly under the heads of expen- 

 sive labour, heavy transport rates and high export duty. 

 So long as the price of rubber remains high, the 

 Brazilian capitalist is able to pay for the high cost of 

 production plus the high freights and taxes, but as 

 soon as the price of rubber falls below three shillings a 

 pound, the pinch will be severely felt, not only by the 

 individual owner but also by the country in general, for 



