Rubber’S Fall

From 12/- to 3d. per lb. in 20 Years

Serious Over-Supply

Rubber, once regarded as the magic talisman to the wealth of the East, has been deprived of all its glamour. From a price of 12/- per lb. in 1910, it has now reached the record low figure of 3½d. per lb. for Para and 2½d. for plantation smoked.

This essential product has during the past 20 years fluctuated remarkably. At one time its cultivation was held to be a means of quickly acquiring great A Native Rubber-tapper at work in Papua.

wealth, and investment in reputable rubber companies was much sought after. The price, after reaching its peak in 1910, dropped during the war, and, after the war period, declined even more rapidly until crepe rubber fell to 6d. and Para to 6d. per lb. In 1922, the average price was 6¾d. per lb.

Then Lord Stevenson’s scheme, in volving a voluntary restriction of out put, was agreed to by most of the growers in the British Empire. The price rose to 4/8 per lb. by 1925. The Stevenson scheme, however, had to be suddenly abandoned in 1928, owing to the Dutch expansion of planting and output. From that year the price has gradually declined to its present de pressed level.

Position In The Pacific

The main groups in the Pacific where rubber is being cultivated, are Papua —which has over 9,000 acres planted— Fiji, Western Samoa, and the British Solomons.

When the price fell to 9½d. in London in 1929, it was officially stated in Fiji that it did not pay planters there to tap their trees.

Nevertheless production continued in Fiji on a small scale and, for 1929, 6,855 lbs. »were exported. Exports for previous years were: 1922 9,142 lbs. 1923 89,753 lbs. 1924 159,995 lbs. 1925 144,313 lbs. 1926 233.999 lbs. 1927 221,238 lbs. 1928 94,661 lbs.

Exports from Western Samoa for 1930 were 116 tons, valued at £9,655, as compared with 167 tons, valued at £17,268, for 1928.

Papua’s annual production has remained around 600 tons during the

past five years. The exports, which in 1925 were valued at nearly £200,000, were last year worth only £50,000.

Planters in the Territory seem to consider 7d. per lb. almost sufficient to cover out of pocket expenses. Therefore when the price continued its downward trend past this figure, many contemplated closing down.

Towards the end of last year the Australian Government imposed a duty of 4d. per lb. on all foreign rubber entering the Commonwealth. This, giving as it did a definite preference to rubber produced in Papua, allowed tapping to continue there.

The future of rubber remains obscure. Restriction of output throughout the world is undoubtedly necessary.

As stated in a London trade report a couple of months ago, the only scheme of restriction that has a chance of being of any use is an international one. It would have to adjust supply to demand and allow the price to adjust itself.

It has been estimated that the world consumption of rubber for 1931 would show a decrease of nearly 100,000 tons on the previous year. ... ===