July, 1012.] 



8 



GUMS, RESINS, SAPS AND EXUDATIONS. 



THE FUTURE OP RUBBER PRICES. 



(From the India Rubber World, Vol, 

 ^LVI., No. J;, April 1, 1912.) 



A London correspondent of the 

 "Gummi-Zeitung " in dealing recently 

 with the above subject, remarks that 

 the English rubber market, since the 

 beginning of 1912, has displayed unusual 

 steadiness, coupled with a moderate 

 amount of business. He adds that plan- 

 tation sorts (the production of which for 

 the current year is estimated at 22,000 

 tons) are at a high- water mark, which 

 has been fluctuating within narrow 

 limits above 5 shillings ($1'2163), or about 

 8 pence (16*21 cents) higher than the best 

 wild rubber, a visible proof being thus 

 afforded of the preference of consumers 

 for plantation rubber. The quantity of 

 this class (by no means small) offered at 

 the last London auctions all met with 

 buyers at full prices. 



Such, it is remarked, is the tenor of 

 brokers' report, and of the plantation 

 companies to their shareholders, 



''Bat," the writer asks, "what have 

 we to expect for the immediate future ? 

 A definite fall in prices, or decided 

 advance? A new rise or a drop? As 

 high as 5s. id. has been paid on several 

 occasions for light plantation crepe. 

 And in spite of all this, the selling prices 

 of automobile and bicycle tires have 

 been considerably reduced by the best 

 makers. How can these facts be re- 

 conciled ?" 



"If we inquire, in Mincing Lane, the 

 reason of the steady high level of prices, 

 we are told : ' It's the persistent inquiries 

 from the consumers.' So it is consump- 

 tion thatis itself keeping up the market ? 

 And yet it is known that at present only 

 the most urgent requirements are being 

 covered. Prices are too high — much too 

 high, and consumers would prefer to 



buy nothing, were they not obliged to 

 do so." 



''The supply in all kinds of rubber 

 is important, and has increased in far 

 greater proportion than the growth of 

 the rubber goods industry. Thus it is 

 only to a very limited extent that con- 

 sumption has to bear the blame of the 

 present high price of the raw material." 



With regard to the present attitude 

 of speculators, the following interesting 

 suggestion is put forward : 



" From the steadiness of the market, 

 we might be tempted to believe that 

 speculation, which previously was so 

 successful in its manipulations, was 

 asleep or had withdrawn. Such is, how- 

 ever, a vain hope. The probability is 

 rather that those interested in a rise or 

 a fall are acting on about the same 

 principle and are now balancing each 

 other, but that both factors on account 

 of the risk and in the present difficult 

 monetary situation, are deterred from 

 risking a coup in one or the other direc- 

 tion. The time is, however, approaching 

 when the one factor must give away to 

 the other, and there is every prospect 

 that in this measuring of forces, those 

 wanting a rise will be vanquished.} The 

 rubber manufacturing industry, which 

 is capable of exercising a greater influence 

 upon the crude rubber market than it 

 has hitherto done, should not be satisfied 

 until the price for Para is brought below 

 4 shillings a pound. For the speculative 

 element is not idle." 



Looking at the matter from another 

 point of view, it is asked, if in previous 

 years, the crude rubber trade was doing 

 very well when wild rubber of South 

 American and African origin was selling 

 far below present prices, why could it 

 not do the same to-day. It is added : 



"The complaints as to the alleged in- 

 creasing difficulty of obtaining rubber 

 from distant forests cannot be aubatau-* 



