The Washington times., 1923-02-20
RUBBER SUPPLY.
COR AMERICA
FAILING
SH"~HHw~ II
Meantime British Export Cur
taiIment Sends Price From
is to IS Cents Per Lb.
BY DIR. JULIUS KLEIN,

By DIR. JULIUS KLEIN,
Director, Bureau Of Foreign and
Domestic Commerce, u. S. De-
partment Of Commerce.
Written Expressly for Cosmopolitan
News Service.
America has need Of new sources
Of rubber supply.
Over seventy-two per cent Of the
worlds production of crude rubber
is grown in British possessions in
the Far Extraordinarily Malay
and Ceylon. An additional eight
per cent of the worlds supply is
controlled by British capital.
On the other hand seventy-five
per cent Of the worlds production
Of crude rubber is consumed in the
United States, and the slightest
variation in the rubber-market
promptly affects the rubber indus
tries Of this country.
Restrictions were recently placed
by the British Government on the
expectation Of rubber from the
British Colonies, in order to reduce
the existing supplies Of world rub
Der stocks and lift the price to a
level profitable to the planters.
Since the first hint of these re-
strictions became public the price
Of rubber has risen from about
fifteen cents pound to over
thirty-five cents.
Americans will therefore need
to seek new sources Of rubber
supply.
Sources Of Supply.
The possibilities of a crude rub
Der supply on this hemisphere are
potentially great. Scarcity of
labor, uncertainties regarding tax
alton and concession terms, and
difficulties in transportation are
which would have to be
met and overcome.
It must be noted, too, that It
takes six to eight years for q
rubber plantation to mature and
become productive.
While the United States lacks
the tropical climate necessary for
the production of rubber. Mexico,
Central and South America have
large suitable areas. Wild-rubber
trees grow along the Amazon val
ley in Brazil, which even fifteen
years ago furnished the major Dor.
ton Of the worlds rubber supply.
Favorable areas for the production
Of rubber exist in Brazil, Peru,
Bolivia. the Guianos, Venezuela,
Colombia, Central America, Mexico
and the Philippines.
Rubber has already been pro-
duced to some extent in the Philip
pine Islands, and it is likely that
a large area will be found suitable
for this industry. when 'investiga-
tons are made there. Other Pacific
islands may also be considered.
Growth Of PrOduction.
An examination by the rubber d.
vision of the Department Of Com
merce concerning production and
consumption Of rubber shows only
slow growth from 1900 to 1910
The expansion Of the automotive
industry, dating from the latter
year, increased the annual consump-
ton Of rubber by the United States
from 81 500 tons in 1910 to $780,.
600 tons in 1922.
In the same period the annual
consumption Of rubber by the rest
Of the world increased from $4,000
tons to about 110,0UU tons.
If automotive development con-
tinues throughout the world at the
same rate as in the past decade the
worlds rubber requirements will in
crease at the rate Of $4,000 tons
annually.
Present requirements are about
100000 tons annually-s nd the pro-
ducing capacity Of all existing rub
Der sources in a year under favor
able conditions is 425,000 tons.
It is therefore apparent that re-
CARELESS of restrictions on existing
plantations the American rubber in
dustry should look to other sources
of supply for the near future.