The Washington herald., 1908-05-31
RUBBER TRADE OF BRAZIL
Depression Caused by Reduced Ac-
tivity in United States.
Market for Great Product OF Amazon
valley Dependent Largely on
American Consumption.

Consul General George e Anderson. Of
Rio de Janeiro. discusses last years rub
Der trade in Brazil. and the present mar
ket conditions, as follows:
The immense fail IN the price Of raw
rubber in the markets OF the world which
was given an acute turn by financial con-
ditons In the United States in the last
Few months Of 1907 has seriously affected
financial conditions in the northern states
OF Brazil. The major portion OF the in
come OF the state governments IN the
north Of Brazil rests upon export duties
levied upon raw rubber The fan in the
price. the reduction in shipments. and
me disturbance of the trade. have led 10
hnanclal stress not alone measured by
the traders in rubber who. in view OF the
extraordinary low prices, are building
up large stocks OF the gum. but upon
every line Of business. The general sit
uation is reflected at large by the fact
that the shipments Of rubber in 1907
brought into Brazil a total Of about S63.-
10000. Al the prices for the gum OBJ
taining in 1906 this sum would have been
about $1S,00GO00 and nj the pricas obtain
Ing az the present time and apparently
likely TO continue most Of the present
year the income from rubber on the
basis Of last years shipments will amount
to only S7,50000O. or $i5OOO.0 coo less than
last years income. and about D0.OOO.OOO
less than that Of the year before. which
the governmental world had come to re-
gard as normal As a matter OF fact. at
tho 70 Of
certainty that the lowest figure named
VIII be reached.
The course Of the rubber market OF the
world in the past two years has nor been
such as 20 promise much relief in the Bra
zlllan market. In 1902. 1900. and 1904. save
Tor few spurts in the market. the price
OF Inc Para rubber ranged about s. cents
10 81 per pound In general. prices com
menced then 20 rise until In MAY. 1896.
they reached d.44 per pound In 1905
ana 1876 IN general they held their own.
From January TO June OF last year O900
they fell almost uninterruptedly. and aft
or sligo, reaction at the middle OF the
year they fell 10 Sl.12i5 in September. The
monetary stringency ia the United States.
which came on soon after that. affected
American factories for a time. and the
demand for rubber in the United States
fell on in such a way that prices of rub
Der IN the worlds markets fell as low
as S cents In November. since which time
rubber dealers have been accommodating
stocks for improved prices.
That better prices will soon come. how
ever with constantly increasing stocks
and little increase In demand. seems i'm
possible. The situation is further com
picated by the general feeling that prices
In 1906 and Whereabouts were too high
20 last. There has been an immense in
crease IN the acreage Of cultivated rub
Der, and the rubber consumers Of the
world have come 10 have less worry as
10 whence their rubber supplies are to
come. II is 10 be expected that the de-
mand formerly obtaining will in time be
reached again, but when Il Is reached the
indications are that the supply will be
immensely greater, even IN proportion to
such demand.
How dependent Brazilian rubber infer
ests are upon the United States as a mar
ket has been quite effectively illustrated
IN the effect Of changed conditions in the
United States upon those interests. The
course Of American imports or Brazilian
rubber shows that IN spite Of Immensely
increased purchases from other portions
OF the world the United States still takes
substantially one-hah OF the entire rub
Der exports of Brazil. In 1907 the United
States took. out of the total exports OF
,38 metric tons OF syringa rubber from
Brazil. l6.ll6 tons. as compared with l2.-
2& for Great Britain. 2.2S5 for France.
1886 for Germany, and 400 for all other
countries. OF S61135.462 worth of syr-
inga the United States took $29. .265. ORG