Evening star., 1925-08-02
BY G. GOULD LINCOLN.
w YHAT price rubber?

Y HAT price rubber?
a ! The question is becoming ncreas-
NN ingly important to the American
manufacturer and to the American
consuming public. The price of rub
ber has mounted since November, 1922, when
the restriction of production in the British col
onies of the Middle East became effective, until
recently it has passed dollar pound and at
time touched $l.20.
During the World war. when the demand for
rubber was great, prices went skyrocketing. and
the dollar mark was passed. But in the period
of depression which came in 1920 and there
after prices fell as low as 11.5 cents per pound.
Now there is war, but the prices are higher
than ever, and the American manufacturer and
the American consumer are stirring uneasiy.
There is every reason they should. America
consumes about rs per cent of the worlds pro-
ducton of rubber. All of the rubber used here
is imported. and by far the greater portion of
it from the British colonies.
Almost British Monopoly.
In fact the British have what amounts prac-
ticay a monopoly in the crude rubber busi-
Just at present they are taking advantage
of this monopoly to screw out of the con
sumers of rubber in this and other countries
every dollar possible.
When rubber at a low ebb, due to large
production and comparatively small demand
because business generally had fallen off. the
British colonial government devised a plan
to bring back the price of rubber and as they
put it, to the industry from destruction.
This plan was an export tax. designed to re-
strict production to not more than 60 per cent
of the production of 1920. This piece of colonial
legislation is known the Stevenson act. 1t
has been tremendously effective 1t could have
Deen effectlVe only In a case where monopoly
. existed.
The American manufacturers of rubber goods
not long since presented to the State Depart
ment request that the British colonial gov
ernment increase the quota allowed the Brit
ish rubber planters for export during the quar-
ter beginning yesterday. And acting under in
structions of the State Department, the Ameri-
Ambassador to Great Britain, Alanson B.
Houghton, presented the request to the foreign
secretary Mr. Chamberlain. He in turn re-
ferred it to the colonial Office, where it was
given consideration.
Grants TO Per Cent Increase
Yesterday the cabled word was received in
this country that the British colonial office
had decided to permit the export of rs per cent
of the rubber production of 1920 in Ceylon and
the Straits Settlements, at a minimum duty.
This is increase of 10 per over the ex-
ports allowed during the last quarter 1t will
the situation. but it is not as great a con-
cession hoped for by the American
manufacturers.
The protest by the American manufacturers
situation and to ameliorate conditions for the
manufacturer of rubber goods and the
sumers thereof. Americans have seen the prices
of automobile tires mount steadily in the last
year, without really understanding just what
it was all about. But now they are beginning
seriously to want to know.
The contention of the British has been that
the rubber plantations must be saved from
bankruptcy; that when the restrictive legisla-
ton went into effect the price of rubber