535 



The industry is still yielding exceptionally handsome profits and 

 such questions should be considered and experimented without delay. 

 Recent history has shown us that in the case of other tropical agricultural 

 industries the desire to practise the most approved methods of cultivation, 

 and the cheapest way in which to carry them out, came only in a drop in 

 profits. Cultivated rubber in Malaya pays a handsome profit on money 

 invested, but that seems to be no reason for not being constantly on 

 the look out to find in various directions methods of saving in cost of 

 production and improved cultivation. 



To carry on a rubber estate or any other agricultural enterprise 

 for a number of years, paying large profits, but without any alteration 

 in the management of the estate, the details of cultivation or the prep- 

 aration of the product for the market, must be considered as curious 

 and discreditable ; since it shows that experience and knowledge has in 

 no way helped to improve methods or economic working. 



The rubber market was in common with all other trade affected 

 to a large extent by the financial trouble in America. It is the custom 

 of manufacturers to keep in stock sufficient un vulcanised pure rubber 

 for six months' operations, it is therefore possible for them to continue 

 to work for some time without purchasing new stocks. The stock in 

 England and Germany was consequently increased and the price very 

 greatly affected. At the beginning of the year plantation rubber was 

 sold at 5s. 9d., which quickly dropped to 5s., recovering in July, but 

 after that time dropping quickly and steadily, till in November, the 

 lowest price then recorded for best plantation rubber before viz., 3s. 4d., 

 was reached, being a drop of 100 per cent from the price of 18 months 

 previously. That this drop in prices was to a very large extent due to 

 a financial and not to ordinary *' supply and demand " causes is 

 admitted by those who have largest experience of the fluctuations of 

 market prices. The price will recover and probably vacillate about 4s. 

 It is satisfactory to remember that even the lowest price yet reached 

 for plantation rubber is more than 100 per cent above the cost of 

 production. 



OVER-PKODUCTION AND SYNTHETIC RUBBER. 



The fear of over-production which bulked very large a year or 

 more ago has, owing to more accurate knowledge of the world's 

 demand for rubber and the amount produced, to some extent subsided. 



The drop in prices, while having the effect of reducing the amount 

 of rubber planting, may also to a great extent reduce the output from 

 Brazil, where the margin of profit is much less than in cultivated 

 rubber. 



This also should lead not only to a consideration of cheapening 

 of methods of production, but to the possibilities of increasing the 

 demand for rubber. No product lends itself more to measures for 

 improving and widening the market. The almost endless possibilities 

 to the economic uses of rubber, and the small proportion of the pur- 

 chasing population of the world which at present knows and uses 

 rubber, botk demonstrate to the fact that measures taken to provide 

 new outlets for rubber are much more hopeful than in the case of 

 food or textile products like coffee or copra, which have a compara- 

 tively limited number of uses. 



