Evening star., 1951-06-24
RIGS Tin Price War
Near End After Slash
OF II Cents a Pound
BY the AssoeIa.ed Pres.


The hot price war the Recon-
struction Finance Corp. has been
waging with foreign tin markets
may be nearing an end - after
chopping the world price to
around $1.06 a pound from the
post-Korea peak of $1.83.
That appears likely from (l)
recent developments and ca COM
ments Of RIGS new boss. Stuart
Symington. who has been leading
the fight in an effort to stop the
"gouging of American taxpayers. -
One development: sales tags
have held steady for five days
after six rounds of price slasfes
in the first l8 days of this month.
The slashing was done first by
the RFC, which cut the price Of
its stockpiled tin to American in
dustry. and then by the Singa-
pore market, selling point for the
worlds largest tin producing area.
Another: RFC has offered Bo-
livia new contract to sell tin ore
to this country, and resume ship
ments which recently have come
to halt. Mr.. Symington said the
price offered the BolivionS was
"fair," but he isn't telling the
world what it was.
Indignant Over Singapore Rise.
He intimated to reporters that
the world price situation is get
ting toward q point-he did not
suggest it has been reached yet
where the RIG may end it "buyer
strike" in regard to Malayan and
other tin metal.
The RFC chief gave q clue to
his thinking In two ways:
1. He observed that old United
States tin-buying contracts gave
this country the right to stop buy
ing at prices above $1.03. although
he refused to say RFC would re-
sumo buying at that figure.
2. He said he doesn't expect
prices can go back to the pre-Ko-
rea mark of "a cents under pres
ent world conditions.
Mr.. Symington gets indignant
when he speaks of the Singapore
market price-which pretty much
sets the price over the world
jumping from "a cents. before Ko-
rea to $l.S3 a pound at one time
since.
He figures that increase could
have "coSt the American taxpayer
some $500 million over the period
of a few years" with this country
Stockpiling tin for strategic rea-
sons as well as buying it heavily
for industrial use.
Tin Symbol of Broader Issue.
Some of the same indignation
shows up when he talks about
natural rubber. tungsten and so
on, which he regards as paler
copies Of the tin situation. Noting
that the United States stockpiles
about 10 materials. he says tin is
just the symbol of a broader issue.
The natural rubber picture re-
Gently has been much like that in
tin: The Government, in both
cases, does all the importing for
this country and consequently
is the exclusive supplier to Ameri-
can industry under a ration-like
program it operates.
Just two days ago, the Govern
ment finally cut its sales price to
industry for natural rubber from
sc cents to So cents a pound
after Singapore prices. which
jumped from below 10 cents be-
fore Korea to nearly 80 cents
after, had gone down again as
low as 48.
Mr.. Symington indicated that
foreign producers of natural rub
ber ought to come down further,
permitting more cuts to United
States industry.
They haven't been wise" he
said They might find they have
worked themselves out of the rub
ber market. Synthetic rubber is q
lot cheaper to produce"
Tool to Push Down Prices.
The United States has in syn
thetic rubber a tool for pushing
down foreign natural rubber prices
which 1t lacks when it comes to
tin. The Government has a prac-
tical monopoly on synthetic pro-
duction, and now sells general
purpose synthetic at 24.5 cents q
pound. Some major United States
makers of tires are using as much
synthetic as natural rubber.
Since there is no such subSti-
tute product the United States
can use for forcing down the price
of tin-essential for food preser-
vation, aircraft, ships and count
less other products-practicaily its
only weapon is the buying strike
That can be powerful. however
for the United States accounts fo1
well over half of world consump-
ton of tin against A per cent
for natural rubber.
Psychological Pressure.
The RFC quit buying foreign
tin metal on March 8, following 9
suggestion Of Senator Lyndon