and Magazine of the Ceylon Agricultural Society.— July, 1911, 



17 



by somebody. The rubber regions have no 

 heavy population over whom the cost could be 

 spread in the shape of a light tax. Generally 

 there is no population at all in the regions 

 where the roads will be most necessary. The 

 Government may probably try to recoup itself 

 by imposing further taxation on the rubber. 

 This will ensure swifter ruin, and there is al- 

 ready bitter complaint being made that the tax- 

 ation has led to much of the present mischief. 



Now the various plans and proposals have 

 materialised and taken the shape of three laws, 

 one authorising a £6,000,000 foreign loan and the 

 creation of a bank, which are intended to de- 

 fend the rubber of Para and Amazonas. The 

 object of the Governments and dealers, as set 

 forth in a message from the Associacao Com- 

 mercial of Mauaos, to Messrs. Rothschild, Lon- 

 don, is to bring about stability of the market. 

 It is remarked, with reason, that if the recent 

 violent oscillations of price continue, Amazonas 

 will be ruined. The Association's telegram says 

 that the measures proposed for the defence of 

 rubber would be intended to ensure normal con- 

 ditions in the markets only during each crop, 

 following the probable fall of prices long enough 

 for the producer and the trade to regulate busi- 

 ness. Calculated on the basis of tho lowest 

 prices, a surtax of 400 reis is sufficient to cover 

 the service of the loan, while there is also to be 

 counted the probable valorisation of the stock 

 employed for the purpose of defence, in order to 

 avoid great and violent oscillations. The capi- 

 tal of the loan will always be represented by the 

 rubber or cash in the proposed banks at Manaos 

 and Para, whose object will be to organise the 

 service and reduce the cost of production of rub- 

 ber. There is some idea that the loan maybe 

 used to buy rubber on a falling market, and 

 some doubt is expressed as to the Government's 

 guaranteeing of the loan, though the bank ques- 

 tion seems quite sound, and it may be started in 

 on a £3,000,000 level. 



A translation of the most important parts of 

 the laws shows 



Art. 1, The Executive is hereby authorised to 

 grant such favours as it may deem necessary, in- 

 cluding exemption from taxes, with the excep- 

 tion of export dues, for a period not exceeding 

 15 years, to such individuals or companies as 

 undertake to establish rubber refineries in this 

 capital or propose by means of new and up-to 

 date methods to wash, rectify rubber in such a 

 manner as to admit of the export of a single 

 type of the first quality. 



Art 2. The processes employed for the puri- 

 fication and antiseptic method of preserving the 

 rubber shall not prejudice in any way its chemi- 

 cal and physical constitution as an industrial 

 product. 



Art 3, The Executive shall, at the a<„t of 

 granting the concession, determine the con- 

 ditions on which it is granted, its duration, the 

 rights and obligations of the concessionaires 

 and shall fix the sum to be paid by tho said con- 

 cessionaires for fiscalisation by Government. 



Art 4. So soon as the refineries are in full and in 

 regular working order the Executive shall unify 

 the taxes actually levied on rubber exported, in 

 such a way as to eliminate for purposes of tax 

 collection, intermediate and inferior types. 



Art 5. Should the yield of the unified taxes on 

 rubber appreciably during the first six months 

 exceed the amount collected during the cor- 

 responding six months of the preceding year 

 the Executive shall forward to Congress, at its 

 next meeting, such data as will enable it to de- 

 cree tho reduction of the tax. 



Art. 6, All dispositions to the contrary are 

 hereby revoked. 



Law No. 1,180 of 17th May:— 



Art. 1. The Executive is hereby authorised, 

 in agreement with the Government of the State 

 of Amazons and the Federal Government to con- 

 tract a loan abroad up to a maximum of £6,000,000 

 bearing interest at the maximum rate of 5 per 

 cent gold on the responsibility of the two States 

 and with the Federal endorsement. 



Art. 2. The duration of the loan shall be 10 

 years, and the amount realised therefrom shall 

 be devoted to aiding the production of rubber. 



Art. 3. To meet the service of the loan, in so 

 far as concerns the State, a surtax of 400 reMs 

 per kilo on rubber exported is hereby created, 

 the yield therefrom to be deposited each week 

 in special account in the State Treasury. 



Sola Par. The collection of this tax shall cease 

 so soon as its yield produces a sum sufficient 

 for the complete execution of the obligations 

 assumed by the State in relation to the loan. 



Art. 4. The Executive is likewise authorised 

 to make an agreement with the Government of 

 the State of Matto Grosso for the purpose of in- 

 suring that the surtax referred to in the pre- 

 ceding article shall also be levied on the pro- 

 duce of that State. 



Art. 5. The net yield of the loan shall always 

 be represented in cash or rubber. 



Art. 6. If it is found impracticable to float 

 a loan in accordance with the terms of Art. 1 

 of this Law, the Government may contract 

 another up to a maximum of £3,000,0U0 sterling, 

 bearing interest at the maximum rate of 5 per 

 cent, gold, on the exclusive responsibility of 

 the state and guarantee of the surtax treated 

 of in Art. 3. 



Art. 7- The authorisation granted in pre- 

 vious laws for the realisation of any operations 

 of credit for the purpose of aiding and protect- 

 ing the rubber industry and other products of 

 the State and for the making of such agree- 

 ments and arrangements as may be necessary, 

 is hereby confirmed. 



Art. 8. All dispositions to the contrary are 

 hereby revoked. 



Law No. 1,181 of 17th May :— 



Art. 1. The Government of the State is here- 

 by authorised, as from the date of this law, to 

 guarantee a maximum annual interest of 6 per 

 cent, gold on the capital of £3,000,000 sterling, 

 issued by series, for a period of 30 years, of a 

 bank to be founded in this City, whose princi- 

 pal operations shall be dealing in agricultural 

 and hypothecary credit, within the dispositions 

 of the present law. 



Sola Par. Government may make such pre- 

 liminary arrangements as may be necessary for 

 the organisation of the bank. 



Art. 2 describes the operations of the bank. 



