Evening star., 1934-05-20
America Interested in
Rubber Restrictions
BY HARDEN COLFAX.

As consumer of more than half
the worlds annual crude rubber pro-
duction. the United States is very
much interested in the new restric-
ton scheme, signed in London. which
will go into effect the first of next
month. The new scheme is the sue
cessor of the much discussed Steven
son plan of 1922 to 1928. This plan
was effective only between the plant
ers Of British Malaga and Ceylon,
which then produced from 65 per
cent to rs per cent of the worlds
supply of crude. 1t broke down
because of the limited area in which
it operated and encouraged planting
in outside territories, principally those
of the Dutch East Indies. Under the
Stevenson plan. moreover, native
growers we're not subject to the same
restrictions as were the large planters.
The new scheme covers all the
plantation areas in the East. Like
the Stevenson plan. it has to do with
export quotas. although not so largely.
1t also includes proposals TO curtail
further planting and to control ware
house stocks of rubber in the pro-
ducing areas. These provisions, not
in the Stevenson plan, are row re-
garded as important.
X \
Under the new arrangement a
gradual restriction of rubber exports,
averaging 1912. per cent, between
January and December 81, 1884, is
agreed upon as affecting all native
growers. as well as the owners of the
large plantations. The amount that
each rubber producing area may ex-
port is fixed at 100 per cent of its
basic quota for June and July. 80
per cent of that for August and
September, and further decreasing
ratios for the remaining months of
the year.
New planting will be prohibited and
replanting limited to 20 per cent OF
existing area. Moreover, in order
to discourage planting in territories
outside the. agreement-South and
Central America, Africa and the
Philippine Islands-the expectation
of planting material is forbidden.
The new scheme, formulated after
much wrangling by a committee OF
producers which has been meeting
for several years, is now recommended
to the legislative bodies of the coun-
tries concerned, for action on June l.
1t is expected to be effective from
June l, 1884, to December 81, 1888.
x x
While the plan does not deal
minutely with prices, it has already
had an effect on them. During the
first week after the signing of the
agreement. the spot price for crude
in New York rose from l212 to l5A
cents a pound and London plantation
the exchange.
The immediate task before the
International Rubber Regulation Com
mittee will be a progressive reduction,
not only in the quotas of production,
but also in the surplus stocks now
available on world markets. World
consumption during 1884, it is esti-
mated. will be between 950,000 and
100000 tons, as compared with
consumption of 100000 tons last year
and $4,000 in 1929. American con-
sumption during 1894 will be approx
mately 500, 900 tons as compared with
some 100000 in 1888.
American rubber companies with
branches abroad are cutting down our
percentage of world consumption, yet,
in general, the effect Of the new
scheme will inevitably be to raise
prices. Therefore. the activities of
this new committee are of prime
interest to all Americans who use
rubber-which means. first of all,
every owner of an automobile.
American exports of rubber manu-
factured goods during the first quar-
ter of the present year registered a
decided improvement over those for
the corresponding periods of the two
preceding years. Figures compiled in
the Commerce Department show that
tire exports, particularly, increased
substantially in January. February
and March.
Copyright, 1034)