Evening star., 1928-04-01
u. S. LAUNCHES ATTACK
ON QUININE MONOPOLY
Fight for Fair Prices on Raw Materials
Seems to Be Bearing Fruit-Rubber
Prices Go to Low Level.

At the maximum. that Is to say for
the fiscal year ended June 30, 1925. the
United States paid foreign growers
S603. 600, 900 for rubber. In the calendar
year 1927 the rubber bill fell to $3+0,-
100000. not because less rubber was
used. but because OF the decline In
price We used, in fact. more rubber
the total going almost to 100000, 900
pounds. If certain related products are
included.
Still another factor that Is conSd-
cred important In the changing rubber
production industry is that OF tranSpor-
tation It takes ship virtually six
weeks to bring cargo OF rubber from
Singapore. In the Malay peninsular. to
New York From Brazil rubber may be
brought in about two weeks. This dif-
ference of four weeks means not only
large sum In extra transportation
costs. but the interest on cargo Of
rubber for four weeks is considerable.
For instance. If a ship has $1,000 900
worth OF rubber aboard, the interest
on that amount for month at s per
cent would be $4,000. The saving of
$4,000 on one cargo Of interest alone
is not to be ignored
Nearer 10 Market.
The African plantations will be some-
what farther off than those In Brazil
but nearer than the Far East planta-
tons Admittedly II will be necessary
for the African and South American
rubber to equal in quality the Far East
product to derive the advantage or
being closer to the American market
Rubber first was discovered in South
America and all the enormous Far East
plantations developed from seedlings
brought from South America. The
British possessions of Malaga and Cey-
lon and the Dutch East Indies there
after won the dominant place In pro-
duction.
The Philippines. according to the late
Gov. Gen. Leonard Wood. might pro-
duce most If not all of the American
demand for rubber. American capital
however. has found Africa and South
America more hoSpitable so far than
the Philippines because of land laws In
the latter area. Gov. Gen. Stimson's
appeal to the Filipinos to concentrate
upon industrial and agricultural detel-
opment may effect some change in the
laws so as TO attract outside capital
The Philippines have the soil and eli
mate also to become large factors in
the production of coffee and other prod-
ucts now subject to foreign control.
The latest weapon proposed to aid
American purchasers of rubber Is the
bill In Congress TO legalize pool buying
Of raw materials abroad. American
firms competing against one anothsr for
rubber run the price up on themselves.
BY pooling their orders and presenting
only one. or much fewer buyers. it is
assumed that this tendecy would BE-
curbed and the foreign controls some
what connteracted.
May Stabilize Prices.
What Is hoped here now is that the
recent experiences of the rubber and
ouinine markets will convince other
foreign controls that their best policy
Is TO keep prices as close to a genuinely
fair level as possible. so as 10 avoid re-
prisals or natural reactions that upset
the markets. The United States last
year spent $500 900 900 for silk. 1884,
600 900 for coffee. S25S, 100000 for
sugar and 500 900 900 for tin. TO men,
tion only some outstanding products
partially or completely at the mercy
oil foreign controls. Cuba has been
active in trying to stabilize" the sugar
price. Brazil Is the big factor In coffee
price-nxing. Japan could exercise a
ShlHldfH influence on SILK prices and
Britain on tin. While other controlled
products do not reach such large fig-
ures. they take many millions of dollars
out OF America annually.
Being barred by the Constitution
from imposing any restrictions on ex-
ports. foreign buyers can get American
cotton. tobacco and other raw ma
terials we produce predominanty In an
absolutely free market so far as any
governmental control Is concerned. II
Is III interest to recall Secretary
HoOver's remark in this connection in
1925:
Our dominant desire has bnen To
get along with our neighbors without
engaging in the slightest friction. and
we would bear great deal TO avoid
involving our Government In CONNER
ciai chickering's. Deeply sensible of the
necessity for good viii as the founda-
ton OF all world commerce. the De-
partment Of Commerce has Been ex-
Temely loath TO raise these questions
and has done so only because IL fell
the weight Of responsibility which we
as a Government must have To our
citlzens on the one hand and To the
future OF wholesome world relations on
the other