582 



The Supplement to the Tropical Agriculturist 



RUBBER FUTURE DELIVERY 

 DEALINGS. 



The following circular on plantation rubber 

 has been issued by Mr. William Schultz, mana- 

 ger on behalf of the London Producing Clearing 

 House, Limited : The company will be prepared, 

 on or after November 6 next, under their cus- 

 tomary rules for deposits, margins, etc., to 

 register contracts for plantation rubber delivered 

 in Antwerp in conformity with the rules for 

 delivery fixed by the Caisae Internationale de 

 Liquidation et de Garantie des Operations en 

 Merchandises, laid down in their Reglement 

 pour les affaireB a termes en Caoutchouc de 

 Plantation. An abridged extract of these rules 

 will be found below. For further information 

 please apply to the company ; s offices, where also 

 a limited number of complete copies of the 

 Reglement may be had at 6d. each. 



The unit of contract will be 2,500 kilos net, 

 equal to 5,510 lb. Samples of type plantation 

 rubber may be seen at the Company's offices. 

 Prices will be in English currency per lb. net 

 less 2 per cent, discount, or in francs and cen- 

 times per kilo net less 2 per cent, at the option 

 of contracting parties. 



The deposit is, until further notice, £100 for 

 each contract of 5,510 lb., payable by both buyer 

 and seller. Margins will be regulated on the 

 basis of the quotations fixed daily by the com- 

 pany's brokers. Business will be accepted only 

 from the company's authorised brokers. The 

 minimum rate of brokerage will be J per cent for 

 buying- and £ per cent for selling. The com- 

 pany's fees are 12s. on each side for every unit of 

 contract, and are payable by contracting parties. 



Pending the establishment of a secured Lon- 

 don terminal market for rubber, we are glad to 

 offer our clients an opportunity to have a 

 guaranteed contract for this article, and we 

 have much pleasure in expressing our sense of 

 the courtesy shown us by the Caisse Inter- 

 nationale in this matter. 



From the above it will be seen that the Ant- 

 werp rules are being followed, and that the de- 

 livery of rubber is to be in Antwerp unless 

 otherwise stipulated. Strange as it may seena, 

 although London is the largest market for rub- 

 ber there is no machinery here for secured ter- 

 minal contracts in this article. 



The necessity for such contracts in the case of 

 rubber has been recognised on the Continent for 

 some time. Antwerp has taken the lead and 

 established an up-to-date market, while Ham- 

 burg is making active preparations, which will 

 shortly be completed, with a similar object in 

 view. The present action of the London Pro- 

 duce Clearing House is intended to offer a re- 

 medy and to retain business here which would 

 otherwise go abroad, and it is hoped that this 

 action will soon be followed by an arrangement 

 in London similar to that which prevails at 

 Antwerp. 



The extract of Antwerp rules is as follows : 

 The basis of contract is type plantation, Hevea 

 Brasiliensis, first latex unsmoked in thin crepet., 

 stored in Antwerp in a warehouse admitted by 



the Caisse Internationale (for the option to de- 

 liver at other ports see below). Rubber must 

 be sound and of fair and merchantable quality, 

 packing free and in good condition. Every ten- 

 der must be accompanied by a certificate of 

 quality. Seller has the option to tender, subject 

 to a scale of differences fixed by experts : (1) 

 Plantation rubber, Hevea Brasiliensis, first 

 latex consisting partly or wholly of smoked or 

 unsmoked in all sorts, forms, preparation and 

 shades. (2) Rubber, consisting entirely of hard 

 cure fine Para, with the exclusion of Peru, Rio- 

 Negro, and — or— Tapajos. 



Sellers may not deliver: (1) Lots found by ex- 

 perts to be on the average more than lfr. per 

 kilo inferior to type. (2) Lots consisting of rub- 

 ber "suranne." 



Allowances for inferior rubber will be credited 

 to buyer in full. In the case of superior rubber 

 the maximum allowance credited to seller will 

 be lfr. per kilo. 



Types will be deposited with the Caisse Inter- 

 nationale. Samples may be had against pay- 

 ment. The difference between basis of contract 

 and Para will be fixed every month, not later 

 than the 25th, to serve as guidance fur experts 

 during the next month (for .leliveries in Novem- 

 ber, 1911, it is 0.90fr. per kilo, equal to about 

 3£d. per lb.) Certificates of quality are valid as 

 long as the units they represent remain intact, 

 but not for more than twelve months for hard 

 cure tine Para, and six months for plantation 

 first latex. The fees for valuation are 125fr. per 

 tender. Copies will be delivered free of charge. If 

 types are altered, the new types will be applicable 

 only for such month for which no ccntracts are 

 registered. 



Sellers may tender at the earliest three clear 

 working days before the first working day of the 

 month for delivery, and not later than four 

 clear working days before the last working day 

 of the month of delivery. Buyer may take up 

 tender at once, but not later than three clear 

 working days after date of tender. Payment is 

 made to the Caisse Internationale, who settles 

 with seller within twenty-four hours. 



Seller is entitled to carry over his contract to 

 the following month, informing the Caisse Inter- 

 nationale of his intention not later than five 

 working days previous to the end of the month 

 of delivery, and paying a penalty of 5 per cent, 

 on his contract, calculated at the quotation of 

 the date of his notification. This prolongation 

 cannot take place more than three successive 

 times on the same contract. The penalty is 

 payable to last buyer, who is bound to accept 

 it, and to have his contract carried over ac- 

 cordingly. 



Sellers shall also have the option to deliver 

 stored wholly in a warehouse admitted by the 

 Caisse Internationale : At London on payment 

 of a fine of 175fr. per contract. At Liverpool on 

 payment of a fine of 200fr. At Havre on pay- 

 ment of a fine of 175fr. Valuations for these 

 rubbers must take place in Antwerp, and all 

 extra charges incurred will be paid by seller. 

 The intention of seller to deliver in these places 

 must be notified to the Caisse Internationale 

 not later than the 15th day of the month of 

 delivery, 



