and Magazine of the Ceylon Agricultural Society. 



88 



RUBBER IN PARA STATE. 



THE FALL IN PRICE. 

 Affects the State's Financial Condition. 

 The following [is from the] report, dated let 

 February, on the financial condition affecting 

 commercial interests in Para, received from 

 H.M. Consul at Para (Mr C B Rhind) :— 



" Since my arrival herein September, 1907, 

 reports have been constant of the unsatisfactory 

 condition of finances in the commercial circles 

 of this market. The most prominent cause of this 

 depression in local resources is the diminution 

 in value of the staple product of the district 

 figurine in international trade— rubber. At 31st 

 December, 1906, the prices of rubber per kilo 

 were as follows : fine rubber, 5 650 milreis, 

 coarse, 3'450 milreis, Caucho ball, 5 500 milreis ; 

 these prices had fallen by 31st December, 1907, 

 to 3-500 milreis, 2'200 milreis and 3'400 milreis 

 for the respective qualities. The fall in value 

 was thus about 35 per cent. It is true that 

 during 1907 as much as 37,525 tons were placed 

 on the market, against only 34,590 tons during 



1906, but the increase in quantity failed to com- 

 pensate the great depreciation in value. This 

 depreciation, though continuous, was mainly 

 contined to the last three months of the year. 

 The consensus of opinion associates the depre- 

 ciation with the financial crisis in the United 

 States, and it is natural that such an influence 

 should withdraw from operation much capital 

 which, in normal circumstances, would be avail- 

 able for speculation in this and other products 

 of this district. The 



HIGH KATE OF TAXATION TO WHICH RUBBER 

 IS SUBJECTED 



must, however, be borne in mind in con- 

 nection with the depreciation in the com- 

 mercial value of this product. I here give a 

 Schedule of the duties fixed for export from 

 this State during the week from 30th December, 



1907, to 5th January, 1908, and I should explain 

 that in addition to this list there are in all 

 districts of the country municipal taxes on pro- 

 ductions of all classes : — 



Value on which 



duties are Export 



Weekly Tariff of Export Duties calculated. Duty, 



from Para ; Milreis per kilo. Per cent. 



Rubber, tine .. 8 - 9u0 22 



Rubber, coarse . . 2'570 22 



Cocoa, good . . 976 6 



Cocoa, inferior . . 600 6 



Per hectolitrei 



Brazil Nuts .. 22-200 16 

 Per kilo. 



Fish Glue, Gurijuba .. 2-260 17 



Eish Glue, of other ttih .. 1'uOO 17 



Deer Skins, good .. V800 1 7 



Deer Skins, inferior . . 900 17 



Hides, various qualities . . 200 to 600 17 



"These data show that before rubber can 

 leave this State it has to pay tributes amounting 

 to almost a quarter of its value. It will be 

 readily understood that if an article is selling at 

 a high price, say, at 5'600 milreis a kilo., the 

 producer may see no hardship in paying a tax of 

 25 per cent, of its value, as he would still receive 

 4-200 milreis net, yielding a remunerative result; 

 but) if the selling price were reduced to 3 600 

 milreis & fcijo, arid the taxation maintained at 



25 per cent., the net selling price would be re- 

 duced to 2'700 milreis, which might involve him 

 in absolute loss : this is practically what is hap- 

 pening at present with the owners of rubber 

 properties in this district. In conjunction with 

 the item of taxation, the heavy scale of expendi- 

 ture incurred for all services connected with the 

 industry, such as 



TRANSPORT AND COST OF LABOUR, 



must also be taken into consideration, none of 

 these being reduced in sympathy with the fall 

 in the market value of the product 



" There has lately been a slight recovery in 

 the value of rubber, and it is said that the col- 

 lection of the article has been satisfactory. 

 There having been a copious rainfall, I under- 

 stand that the Alto Purus and other affluents of 

 the Amazon are in good condition for bringing 

 supplies to market, but it appears that these 



SUPPLIES ARE BEING RETAINED TN THE HOPE OF 

 SECURING HIGHER PRICES. 



" Projects are also under consideration for 

 easing the monetary situation (as affecting the 

 circumstances of the owners of rubber pro- 

 perties) by the opening of a branch of the Bank 

 of Brazil at Para, and for including in its trans- 

 actions the making of advances on rubber in 

 deposit. It is thought, however, that this idea 

 can have little success, as advances would pro- 

 bably be limited to 50 per cent, of the value, 

 whereas, I understand, merchants will advance, 

 on produce consigned to them for sale, as much 

 as 70 per cent, of the value. It has also to be 

 remembered that the rubber while stored would 

 ba subjected to warehouse rent and other ex- 

 penses, and also that the article dries in keep- 

 ing, thereby losing in weight, and in value. 



WARNING TO BRITISH INVESTORS. 



" I am told that there is still a great disposi- 

 tion among British capitalists to invent in the 

 acquisition of rubber-producing properties iu 

 Brazil. Investments of this nature have not 

 invariably been successful, and, in my opinion, 

 such undertakings should be engaged in with 

 the greatest circumspection. I would urge par- 

 ticularly that care be exercised in the supervi- 

 sion of title deeds, so that security in the 

 possession of the property may be assured. Atten- 

 tion to these matters is especially to be recom- 

 mended in connection with properties in the 

 Acre district, where the change of regime, 

 whereby the administration of this territory has 

 been constituted in the Federal Government of 

 Brazil, may engender disputes should the owner- 

 ship of the estates offered for purchase not be 

 clearly vested in those representing themselves 

 as proprietors. One formality, which 1 under- 

 stand to be indispensable in the 



PROCESS OF PROVING A CLEAR TITLE TO THE 

 OWNERSHIP OF PROPERTY, 



perty, is the exhibition of proof that the title 

 deeds have been duly registered m the State 

 Department charged with the recording of re- 

 gistrations of this nature, which I believe to be 

 subordinate to the Department of Public 

 Works, Land and Communications (Qbras Pub» 

 Hcae, Terras e Yjiaga,o^ 



