Detroit evening times. (Detroit, Mich) 1921-1958, 1941-01-14
u. S. Puzzled
BY Price
Of Rubber
Costs Up Despite Cut II
Market by Blockade
BY PAUL MALLON

" pulling experience with the
British-Dutch rubber monopoly
has been encountered by the de-
Tense commission. state and war
departments. 1t may furnish
contribution 10 congressional
thought in considering the lend
lease credit bill
This government officially an
nounced ii was terminating rub
Der purchases a few days back
because prices were getting too
high. but the announcement was
not very revealing of what hap
pened. Here's the story:
Our defense experts calculated
the security of this country re-
quires a stock pile of upwards
of 100000 tons of rubber. This
government made a barter deal
with Britain, trading cotton for
Tubber-S5 600 ions of it-and
about 10000 tons has been de-
livered.
There is no complaint in the
government about that deal. But
thereafter. rubber reserve
company was set up within the
RFC to complete the accumula-
ton of 100000 more tons. The
. state department made an agree
ment with the international
rubber control committee Top
Grated as a world rubber mo-
nopoly by British and Dutch
growers and shippers).
The arrangement was that we
would buy as long as the price
remained below certain level,
and when it went above that
figure we would stop until it
came down again.
MUCH of the world market for
1'1 rubber has been closed by
the British blockade around
Europe. The /. r. c. was not
even allowing normal production
of rubber -the-tinae pre-
gram started Why the price
should go up, therefore, is not
quite clear to authorities here.
The /. r. C. now claims TO he
producing its limit 10 meet de-
mandS, but there is a feeling
around in the government that
the monopoly could produce
much more if it were not trying
to protest the high price.
The conclusion has naturally
developed that this government
has been stalemated in this de-
Tense effort by the action of the
monopoly.
Something will have to be
done about il, and soon.
TT is true private American
L rubber companies have been
continuing to buy more than
they need. because the govern
H7pnt requested them to store
additional stocks. They are not
protected on price. and must
meet /. r. C's figure for their
commercial needs. MAYBE this
is one reason /. R. c. decided the
price should be higher.) But the
accumulation of these private
stock piles has Just about
reached limit. When the COM
panles stop increasing their re-
serves, this nations defense pro-
gram. insofar as rubber is con-
cerned, will stop, half-completed.
ONE perfect solution is avail
" able. If. under this new
lend-lease bill, the secretaries of
war and navy could get payment
from Britain Immediately in
rubber tin and other raw de-
Tense materials. our defense re-
quirements could be met as
well as Britain'S.
The value of what we need is
only a fraction of the unlimited
billions of dollars of war ma
terials that will 90 TO Britain.
but under such an arrangement
Britain would not have to wait
until after the war. to start pay
ing something in kind" Her
government could buy things We
need from her own commercial
producers and turn them over
to us.
This would get completely
away from the dollar mark that
Mr.. Roosevelt wished to avoid
with his plan. As il stands now
the silly old dollar sign" is only
avoided as far as the British
arc concerned The United
States Treasury is going TO pay
out good dollars in cash for
everything that is sent to
Britain.
EEDERAL direction Of produc-
-4-tleff---- = RI word
they use for in is going. 10 start
sooner than YOU may have
thought The reorganization
which Mr. Stettinms has di-
rected 10 set up a prioriiies
control board is not window
dressing this time. First action
IS expected within a few weeks
This will initiate the govern.
ment use of lis powers 10 direct
manufacturers on what 10 pro-
duce. Full use Of this great
control is expected before md
summer.
LIVERY once IN a while son1c-
II thing crops up TO suggest
what We are preparing for
Navy Secretary Knox has asked
Congress. to pass a bill remoY-