* 
9 
The number of Imnkruptcies was not great, nor the amount 
involved large, but at the close of the year the Chinese market 
generally was in a more than uneasy Condition. 
AGRICULTURE. 
One of the most notable events of the year was the collapse 
of the price of rubber, which fell from 4s. 3d. loi tine plantation 
para in London to 2 s. 3d. With the enormous increase in the 
production of this commodity throughout the world it was impos¬ 
sible for a high price to be maintained, but the suddenness of the 
fall and its arrival so much earlier than had been anticipated, 
may be attributed to certain causes subsidiary to that of over¬ 
production. Of these the first in time was the stagnation of certain 
trades in Germany, Austria and neighbouring countries consequent 
on the Italy-Turkish War and the wars in the Balkans, but the 
most important was the uncertainty with regard to the American 
tariffs, on account of which American importers, hitherto by far 
the largest buyers, have been unable to purchase largely in 
advance. The combined effect was the oversupply of the 
British and Continental markets. With the reduction of the 
American tariffs a largely increased consumption by America 
may again be expected but the continual increase of production 
precludes the hope of any large recovery in price ; in fact it is 
probable that the price is now practically established. A revival 
must in any case be preceded by an improvement in the general 
financial situation throughout the world. With the fall in price 
came the necessity fora reduction in estate expendituie. 1 he 
cost of production naturally diminishes as the trees mature, but 
many economies have in addition been found possible. In 
Malacca on the motion of the Malacca Planters Association 
wages were reduced without friction, thus satisfactorily proving 
that the supply of labour is adequate. Many estates aie using 
disc-harrows drawn by draught animals as cheaper than manual 
labour, and one estate is using steam ploughs. 
Though the inflated dividends of previous years are gone for 
ever, reasonable profits can be expected, and the only really 
unsatisfactory feature of the situation is that the market still 
considers average plantation rubber to be inferior to fine hard 
Para. Certain known marks, however, have been sold at the 
same price as Para, and if standardization can be effected it is to 
be hoped that producers of other marks, at present less known, 
will share in the enhanced price that recognized quality can 
command. 
The planting of fresh land in rubber continues in every 
Settlement of the Colony, and shows that the planters still retain 
their confidence. The area under rubber cultivation in Malacca 
is 117,200 acres. 
