28 1 



the general stability of the trade which even the high prices, com- 

 bined with increased supply, cannot check. 



I see, Mr. Editor, you are foreshadowing the policy of "starve 

 the rubber market." As a small investor in rubber cultivation I do 

 not regret the large extensions that are being made in all quarters 

 of the globe which forecast in the not distant future a much more 

 healthy tone of trade when prices will fall to a level which will 

 enable rubber to be used for the many purposes the present inflated 

 prices prohibit, and when all of us from producer to consumer will 

 participate in a well paying industry with vast possibilities of 

 development, for who is to say where the demand for fair-priced 

 rubber is to end. We do not grudge 1 the few lucky ones theii 

 present large prolits to last lor ever. 



Yours, etc., 



W. E. G. 



Colombo, 'June jtJi. 



[NOTE by Ed. Times of Ceylon. — We trust our correspondent is 

 right, only exactly the same argument was used in the early days 

 of the cinchona era. Let prices fall to a low level, and demand 

 will at once force them up again. But the price fell and the anti- 

 cipated demand never came. With rubber this will no doubt be 

 different. It can be put to so many valuable purposes, and demand 

 for it is certain to increase. We fully believe that. But we incul- 

 cate caution that is all. Also we do not quite understand how in 

 any market stocks are the result of prices as alleged by the paper 

 referred to.] 



RUBBER PROSPECTS. 



London Brokers' Opinion. 



Messrs. Lewis and PEAT, brokers of London, write thus on 

 rubber prospects to the Straits Echo under date 26th May: — 



We must point out to planters that to-day's prices are " famine 

 prices" and cannot possibly be maintained when rubber becomes 

 more plentiful as it is bound to do, and as the price of Ceylon or 

 Straits-grown Para is regulated entirely by the price of " Fine 

 Para 1 ' from the Amazon and Islands, the following reminder may be 

 useful : — 



Fine Para to-day is per lb., Ceylon S/2d. 



May, 1903, 3/ioi^. ,, „ 4/3^. 



„ „ 1902, 3/- „ „ nil. 



and at one time in 1902, 2/icW. per lb. 



So that prices to-day are about 2/- per lb. more than they were 

 2 years ago and are about \j6d. per lb. over the average, From 

 these figures you will see how dangerous it would be to base any 

 calculations upon present prices, although owing to the extraordi- 



