Show England Is Alarmed as Rubber Prices Drop t S 6 5 6 SS S rl SS SS Tables Are Turned After Attempts Are Made to Restrict Market t t r V a V s ac T t Fj t This map show shoes the Important rubber Holds of the world with England and Holland controlling the orient while Ford In Brazil and Firestone in Liberia offer threats to their markets Insets show Henry Ford at rl right ht and Hancy S. S Firestone By y NiLTON TR TREA EA Service Writer 1 DON Ol Oct 20 Early Early in 1923 LONDON L it vi was as America Now it I Is Eng- Eng England England land and that has become becom alarmed about rubber Again there is too much of oC It on the market prices have ha dropped profits of the British companies have lave become smaller and dividends have therefore been cut Worse yet jet the future presents even a less rosy picture to the th British rubber growers gro ers Here are the he facts The United States Is the worlds world's greatest consumer of crude rubber The he bulk of the rubber comes from Malaysia Ceylon and the Dutch East Indies With the free and un un- unrestricted unrestricted un- un unrestricted restricted growing of all the rubber that hat the plantations could produce there here was this market condition More lore production than consumption low ow prices for crude rubber But in 1923 tho the Stephenson scheme was put into practice Un- Un Under Under der er thIs tills all aU the British rubber plan- plan plantations plantations were to restrict their out out- output output output put to a percentage of the average growth This was to bring about about- Less production than consumption tion tion high prices for tor crude rubber BRITISH DEBT REPAID At first this worked beautifully America paid the piper It has been said aid that the th Increase In prices America had to pay for rubber equaled what the British govern govern- government government government ment Is paying us in squaring up Its ts war debts How well the Stephenson scheme worked can be shown by a few figures 1923 1923 Consumption Consumption tons production average a price 31 2 1 cents per pound 1924 Consumption 1924 Consumption tons production average price 29 cents 1925 1925 Consumption Consumption tons production average aH rage price 68 2 1 cents 1926 Consumption 1926 Consumption tons production average price 50 cents It I will be b seen that last las year ear for forthe forthe forthe the first time the tho rubber freshly produced exceeded consumption This was caused by two things the high percentage figure allowed the pro pro- producers producers producers and the success of the plan proposed by Secretary of Commerce Hoo er whereby hereby America used a great deal of worked over rubber BIG DIG STOCK OV ON o HAND BAND To meet this the production of ot rubber in ire British possessions was cut to 60 per cent of oC total capacity But In spite of this there are 01 over o er tons of oC rubber stocks in the London market and the price Is only 33 2 1 cents There are two main reasons for this this- First Smuggling First Smuggling about tons t ns annually Second The Second The constantly Increasing IncreasIng Increasing ing amount of rubber produced inthe in inthe Inthe the Dutch East Indies to meet the American market Thus in 1923 when the British restriction scheme was as put Into effect the Dutch pro pro- produced produced only tons Last year jear ear earthey they produced tons The British market has further further- furthermore furthermore more been made nervous by the scheme of Harvey Firestone to grow rubber In hi Liberia and that of Henry Ford to have huge hug rubber rubber planta planta- plantations in Brazil Papers here pro pro- profess fess less to make light lIgh of oC these Amen Ameri can plans to free the United States from the British rubber monopoly Nevertheless they devote ote columns to writing about them If It Firestone tone Ford and other plo plo- pioneers ne rs succeed sur suc eed in getting big rubber plantations of their own going they will IU make America free from the semi British monopoly It will be Important not only because it will bring prices down to the army of auto owners but also because It will help make America sustaining self in rubber in case of oC war mar The last great war showed that no nation could make up-to-date up war without a plentiful supply of two ho commodities not greatly used in former contests gasoline contests gasoline and rubber I |