Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-06-27
RUBBER MARKET
ALWAYS IN ACTION
Three Cities Keep Buying and
Selling for "a Hours
Every Day.

Sleep is the greatest inconvenience
tor a rubber manufacturer who desires
10 keep up with the market He must
set a few hours of it in every "a, but
the market keeps agoing all around
! the clock
Rubber is the one commodity whose
buying and selling is on the basis of a
three-shift day. First there is the Lon
don market opening at am. Next
comes New York. continuing it's ac-
tivity until 5 pm, New York time.
That is followed by Singapore swing
ing INTO action at Z pm. at the place
where rubber comes from.
When prices soar in New York,
Singapore gets the news just in time
10 send the figures skyWard. Little
rubber can be kept in storage at any
time in the Indian rubber center, "a
fact which causes constant activity in
That quarter.
Peculiarities Increased.
These market peculiarities were
discussed recently by William O'Neil.
president of the General Tire and
Rubber Co, in an address to a ma
tional association of bankers. Elk
planning the unusual vigor of the
rubber market Mr.. O'Neil said
Here. we could keep crude rubber
for years in good condition if we
used proper methods of protection
against light and heat. But they can't
keep rubber out there at the source,
lose TO the Equator, and they simply
have to get rid of it promptly. SO
when they get excited. at the source
Of supply, prices go away up and the
rubber market is Just as SleepleSS
when prices go down. There are
three shifts to work il down.
Next to rubber. the commodity of
which we buy the most is cotton. but,
though cotton prices vary consider
ably, they never can equal rubber in
that respect-and we buyers could
have a chance to sleep if cotton were
our only concern. The cotton market
opens in London at in the morn
ing, New York time. and closes in
New York about the time New York
ers usually quit business. Then the
market is really closed for that day.
IL may run an hour or so longer in
Chicago or farther West. but about
u hours constitute a cotton market
day. So. If a rumor of a change in
cotton prices arises during the day.
people have a chance to get Quoted
down that night, TO consult each other
and their banks. and usually we are
able to prevent radical. sudden
changes in cotton. If the crop is
short, that is known months in adj
vance. and price advances due to crop
disaster can he discounted to a GER
tain extent. But the rubber market
that is the elastic, bouncing market
OF them all, because a whole season s
success may be involved in a sudden
decision whether or not to buy-at
what figure and how much.
Comes From Europe.
ut may be news that "a great dea
of our cotton for cord tire fabric is a
British Colonial product. as well as
rubber. Most of the long staple cot
ton required for high grade tires
comes from Egypt. We do not grow
in this country anywhere near enough
long staple cotton for American tires.
The ideal American long staple is
known as sea island. and, was actually
developed on some islands in the
Atlantic off the coast of Georgia But
the boil weevil gets in its work. the
acreage devoted to sea island is small.
and the annual American crop now
does not exceed 10000 tons.
There is little chance that Great
Britain will ever try to restrict our
N&ply of Egyptian cotton. because
Great Britain is among our very
largest customers for the short staple
cotton grown in our Southern States.
England needs our cotton for her cot
Ton goods as badly as we need her
Egyptian cotton for our tires.
"All these things are in proof of
our contention" says Mr.. O'Neil. that
no matter what may be our political
attitude about participation in N7cr'H
affairs. the successful American rub
Der manufacturer must and does take
a Very active interest in the natural
resources of many countries. and he is
keenly alive to every political deVel-
opment that may affect the avail
ability of those natural resources to
the American public"