Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-04-10
HUGE 1926 SAVING
IN CRUDE RUBBER
q
Conservation Policy Held Re-
sponsible for Cut of
1880 Tons.

Due to the policy of conservation in.
augurated because of the high price
of crude rubber, American manufac-
turers effected saving of more than
70 800 tons of this material during
the past year. In 1925, the consump.
ton OF raw rubber amounted to $685.
900 tons. With the increased mum.
Der of cars in use during 1926, the
consumption at a rate equal to the
1925 ratio would have been nearly
426, 900 tons, whereas the actual 1926
consumption was only $685. 900 tons,
representing saving of 10000 tons.
In addition to this, the stocks of
automobile castings held by manufac-
turers increased by more than 2,000.-
900, while inner tube stocks were aug
mented by almost 5000, 900, indicating
further saving of 1880 tons. But
even the combined total thus achieved
does not represent all that was &C.
complished, as nearly 1000 more tons
of rubber were required in original
equipment for new automobiles, the
production of which increased during
1926.
Rubber Stocks Growing.
The stocks of rubber on hand In
America increased from 51,216 long
tons at the beginning of 1925 to 1880
at the end of the year, and stocks in
London during the same period in.
creased from 5,697 to 1921 tons. The
total increase in stocks, $3.50 tons.
was therefore less than the amount
of rubber saved in the United States,
and but for the conservation meas.
ures employed here the rubber situa-
ton would at present be no better
than duging the period of short sup.
plies, according to the Department o.
Commerce.
During 1925 and 1925 British rub
Der production was under restriction
by the Stevenson act. Spot prices
were forced up to over 81 per pound
in 1925, but the average of spot
prices was reduced to 1850 cents per
pound in 1925 by the conservation
measures. Owing to the necessary
forward buying of rubber the high
price levels OF 1925, to some extent,
carried over on imported rubber into
the first half of 1926 The total i'm.
ports for the first half of 1926 We're
462 ,S34,0i5 pounds. valued at 1921.
9SS. 2@, or 1857 cents per pound, as
| against 463, 043 ,697 pounds, valued AT
1888, 500 ,525, or 1916 cents per pound
for the last half of 1926.
Prices Reported Lower.
Tire prices at the beginning OF 1925
were at the lowest point in the his
| tory of the industry. During that
year of rising rubber prices the ag
| gregate wholesale price of four com
mon sizes were raised about SO pei
cent to compensate for the increase
| of about 10 per cent in the price oil
rubber. Although rubber prices arc
still about cents per pound higher
than in January, 1925, manufacturers
have during 1926 reduced wholesale
tire prices to below those previous tc
the great rise. The fall in rubber
prices has been passed on by manu-
| facturers. to consumers. In dollars
an average set of four tires of com
! mon sizes cost the dealer $55 before
the rise in rubber, $S7 in December
/ 1925, at the height of rubber prices
and about $50 at the present time.
| The degree of restriction in British
| Malaga and Ceylon continues at 81
per cent below the possible produc
ton. with the prospect of increase
in restriction to 40 per cent below
production possibilities. The restricted
| area produced 81 per cent of the
worlds rubber in 1922 before restric
! tions, and produced about IS per CEN
In 1925 Whether this further re
striction will again raise prices re
/; mains to be seen.