The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-03-21
RUBBER PRICES
DECLINE SINCE
LAST'YEAR
BusinessIike Buying Of Rubber
by Americans Causes Drop
in British Prices.
By w. S. COUSINS
(Copyright, 1924. by Cosmopolitan
News Service)


News Service)
NEW YORK, March 21.-Current
declines in prices of crude rubber
in New York and London Is an
other evidence today of the failure
Of artificial methods to bolster up
the market for a commodity IN
worldwide use, The British rubber
growers Stevenson plan for restrict
ing exports of rubber from British
Colonies, foundered on the rocks of
systematic buying by American con-
sumers and stimulated by the
Dutch, who are the only rivals of
British rubber growers, prices have
declined about 80 per cent in all
markets since the export restriction
Of last year. .,....
Good Buying Methods
Maurice Switzer, vice president of
the Kelly Springfield Tire Company,
attributes the softening of prices in
large measure to the more scientific
and business-like buying methods of
American manufacturers Of rubber,
but chiefly the tire manufacturers.
Tire companies have abandoned
the idea of loading up for distant
future requirements of crude rub
Der, Mr.. Switzer said today. "They
have reduced inventories far below
quantities carried in 1921 and 1922,
and rarely carry more than two or
three months requirements. There
is no scrambling for market sup
plies of rubber"
The British growers Stevenson
plan. Mr.. Switzer declared, had
Stabilized" prices temporarily at
higher figures, but had also sta
supplies available for the market at
higher production of crude rubber
and conservation Of supplies by
Dutch growers, who welcomed the
opportunity to secure higher prices
for their product by getting under
the British umbrella"
1t is well konwn that full develop
ment of rubber trees requires about
seven years, and therefore no new
plantations could have affected mar
ket supply since last year; but a
demoraliZed market, such as pre-
vailed in the latter part of 1922,
leads inevitably to abandonment of
areas which would be Improbable
and the subsequent boosting of
prices to the tapping of trees that
have been permitted to remain dof-
mant.
British Suppsy Large
A few years ago it was estimated
that the British produced so per
cent Of the worlds rubber supply;
today the Dutch are credited with
33 per cent and the British 81 per
cent.
American rubber manufacturers
consume about Is per cent of the
worlds total production" Mr.. Swift.
ger said and are interested chiefly
In having a steady supply Of raw
rubber available. without flurries in
prices or artificial restrictions.
we recognize that cultivation of
rubber plantations involves expendi.
ture OF millions of dollars and from
seven to fourteen years before the
fruits of expended labor can he
reaped. Before intensive cultivation
by English and Dutch growers. rub.
Der sold from Use to SO a pound
against rs to IS cents for the cult.
waited product. Meanwhile world
consumption has Increased from
$4,000 tons in 1906 to about 400 900,
of which only $4,000 tons is wild
rubber, and the balance cultivated.
Even in Germany, Russia and other
European countries. increase their
consumption of rubber, l see no
reason to look for either a shortage
in supplies or an unreasonably high
price for the product"
U. S. Good Customer
AL Viles, manager Of the Rubber
Association of America estimates
world production of rubber this year
at $4,000 tons, of which America
VIII consume 20 to IS per cent and
OF which portion IS per cent will
be used in the manufacture of auto.
mobile tires and the balance in
varied industrials. He anticipates
no radical changes Of crude rubber.
Curb C+ooko