IOO 



Our London charges are very small. Besides the merchants' or 

 agents' commission there is only brokerage half per cent. All 

 samples are paid for, and the only deduction is discount two and a half 

 per cent. Draft (on all rubber) half per cent. Planters get these back 

 in the higher prices obtained. Smoked rubber appears to have 

 greater resiliency and to be more suitable for many purposes than 

 unsmoked. " Smoking" prevents the "proteins" in rubber from 

 decomposition, and generally from " tackiness." All fine rubber 

 from Para is smoked. 



The very serious decline in price since October is mainly due to 

 the serious crisis in America and the closing of many factories 

 there. But, considering the enormous increase and general 

 expectation of " planting " rubber in most tropical countries (coupled 

 with the prophetic figures of immense supplies of plantation within 

 two or three years), values were far too high. The decline will, 

 we hope, cool many new enterprises, and prevent too large 

 extension of planting. There is no sign of such increased demand 

 or new uses for rubber as to warrant too rapid an increase of 

 supply.* If it becomes too large values will suffer. We cannot 

 expect much increase of consumption in 1908 in the present state 

 of trade and the over-production of motors everywhere this season. 



Brazil shows no sign of reducing her output, though perhaps she 

 may do so in the next crop owing to the serious losses on this crop. 

 Brazil exported over 41,500 tons. There are rumours about the 

 manufacture, by old and monied people who do not often put 

 money into disastrous speculation, of what was erroneously 

 described as synthetic rubber. We shall watch results with 

 curiosity (and doubt). The lower price may retard or reduce the 

 manufacture of "substitutes," but they are largely consumed. 

 The manufacture of reclaimed rubber is very considerable, and 

 increasing. Rambong and Castilloa have not been liked, and 

 sold cheaply. f 



Last January we quoted fine sheet, biscuits, and crepe 5s. 6d. to 

 5s. 8d., brown and dark ditto 4s. gd. to 5s. 4d. Prices advanced to 

 middle of March, declined to 5s. for fine by end of Ma) ; rose 6d. 

 to yd., but subsequently fell again to 5s. in September, and seriously 

 declined during the last three months with the financial crisis in 

 America. To-day's quotations are for fine, 3s. I id., dark and 

 brown 3s. 5d., fine hard Para, 3s 5d. 



* We cannot altogether agree with this, if Messrs. Figgis mean that there are 

 signs of an over-supply of rubber. Lower prices would certainly reduce the Brazilian 

 output of uncultivated rubber, which is most costly to obtain ; at the same time they 

 would still show a fair margin over cost of production with the cultivated article. 

 Then, again, if a temporary excess has caused a drop, it is generally believed that 

 when the financial upset that emanated, in the United States has passed away, a 

 better all-round demand will be experienced. Certainly, if prices remain low, the 

 consumption will greatly increase, many more industries being able to include rubber, 

 or a larger proportion of it, than when fine Para is over 4s. or 5s. p_r lb. 



fThis dislike must surely be due either to the rubber having been badly 

 prepared, or to those handling the rubber not having obtained machinery from those 

 few engineers who have made a speciality of plant for handling Castilloa or 

 Ficus elastica (Rambong or Assam rubbers. — Ed. Tropical Life). 



