Refusal of Sir Cecil Clemen! to Make an Unilateral Agree" ment: Low Levels Anticipated in America London, Sept. 7.
The Governor of the Straits Settle ments, Sir Cecil Clementi, after consultation with the Governor-
General of the Dutch East Indies, has announced that neither govern-meat is prepared to support officially any scheme of rubber restriction.
Over-production in proportion to the world's requirements has caused 1 crisis in the industry, the price of the commodity falling substan below the cost of production, Dutch Opposition view of the Dutch opposition' the Straits Government has decided that unilateral action would be worse! than useless and has therefore reached the decision that "economic laws must take course in the hope that by this means stabilization of prices will be realized. The industry will then enter upon a normal period in which supply and demand will approximately balance} each other."
In London yesterday the price of] rubber dropped to a new low record, of 47 pence per pound—Wireless through Reuter, upon the likelihood that the present price of 4d, a Ib, will prove low enough to cause a natural restriction of tapping, even including the Dutch East Indies planter.—Reuter.
US, Anticipates Over-Productioa New York, Sept. 7
Rubber futures have reached new low level, following Singapore advices that the Straits Settlement Government has notified Malayan growers that no official restriction of rubber growing is planned, It is believed by the Government that economic laws must take their course, Artificial limitation of out put, it is felt, would do more harm than good.
The situation will, however, lead to considerable over-production en the immediate future before supply and demand have adjusted, it is felt, Thus prices have sunk and low levels for sometime are anticipated—
United Press.
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