Evening star., 1925-06-04
Payment of British Debt
By Tire Users Made Issue

Americas great army of motorists,
the worlds chief rubber consumers,
have been considerably stirred by Sec
retary Hoover's report concerning the
enormous profits in the rubber indus
try of which Great Britain holds
monopoly. The suggestion that the
increased price of rubber yields profits
sufficient TO pay the installments on
the British debt is viewed as throwing
light on the foreign trade situation,
concerning which the British Ambas-
sador in Washington has made COM
plaint. There is new interest In pos
sible American sources Of rubber.
When the American autoist has
blowout and concludes that 1t is time
to retire" suggests the Baltimore
Evening Sun, sit may or may not be
a consolation to him to know that he
is making 1t possible for Great Britain
general situation the Evening Sun
says: ut was a gloomy picture that
Sir Esme Howard, British Ambassa-
dor. painted in his speech in New
York on British trade with the United
States. With a fine grasp of eco-
nomic laws, he pointed out that Great
Britain could pay her debts only out
of surplus Of exports over imports
Every cloud, however. has it's silver
lining, and Secretary Hoover has ap-
peared upon the scene and shows that
Americas imports of raw rubber last
year cost S185, ,000, 900, and that largely
as result of a production-restricting
scheme worked out by the British
colonial Office these imports this year
will cost some s400, 100000. Either
figure is in excess of the $50, ,000, 900
which Britain is paying annually on
its war debts. Secretary Hoover Is
careful to avoid direct mention of the
Ambassadors speech, but his inference
Is clear"
The Akron Beacon-Journal, taking
note of this condition, holds that 1.-The
remarkable recent increase in the
price of this product, of which our
gests an intent on Britain's part to be
too hasty in retiring It's debt at the ex.
pense of the American consumer; tire
users may be under the necessity of
paving a price that will make them
believe they are paying the whole
worlds war debt" The increase in
price from II cents pound about a
year ago to 20 cents. a recent quota
ton, is cited by the Philadelphia Pub
lie Ledger, which continues: "Ameri.
can stocks are low. British rubber
sIldl CS dIS SOdIAnSy anu d 1dIIlI CHILL Is
creeping up the spine of the worlds
greatest rubber user, the American
motorist. At so to 10 cents a pound
the profits are unquestionably and ad-
mittedly enormous. A year. or so of
being exploited by the British will
turn US back to the half-forgotten
Mexican rubber shrubs and to the
Southern Philippines" The need of
American sources is emphasized by
the Flint Journal, which believes that,
Just as British cotton manufacturers
seek way to produce cotton within
the empire, so do tire manufacturers
in the United States seek relief from
foreign control of rubber" The Port.
land tOreg) Journal, studying the
market, calls attention to the in.
creased prices Of rubber and oil, with
reduced prices on some other prod
ucts, and views the matter from a DO.
litical standpoint. declaring that it
may have an effect "ori the Congress.
sional elections"
**# X
One reason for the increased price
is given by the Newark News, which
explains: Visible supplies in the
market are low, making the American
tire manufacturers bidders against
one another. After last years slump
II Is said that they were fearful OF ex.
reserves when rubber was cheap, and
then. with depleted supplies. came
into the market with a rush, which,
combining with the limited supply
under export restrictions. sent the