The second period of regulation begins under more favourable auspices than the first. The burden of stocks, though considerable, is not to be compared with the 1934 total, which was some 200000 tons greater. Consumption is running at a higher rate. Dutch native output is now controlled with almost mathematical precision—in fact, in recent months it has been controlled noticeably more successfully than Malayan production. And the regulation agreement itself has sustained several major and many minor changes which should add materially io its efficiency. The Committee's basic aim will be to provide adequate supplies at reasonable prices at all times. The' reasonable price at any given time will depend upon the prosperity of the consuming areas, but might be between 9d. and 10d. a pound in times of normal prosperity such as may conceivably be seen by the summer of this year. But the Committee, though it is unlikely to take action which might interrupt the secular upward trend of consumption, may feel at liberty to adopt more aggressive tactics in its éffiorts to achieve and maintain reasonable levels for stocks and prices. The American business outlook suggests that world rubber consumption will improve to a sufficient extent'in the next twelve months to permit a satisfactory price level—provided thab the Committee exercises sufficiently rigorous control of stocks. If the 45 per cent: quota for the last half of 1938 was, in fact, a sign of the Committee's determination to-exercise that control, then the market's hopes of greater prosperity may well prove more substantial than on some past occasions.
Text read from the printed page and cleaned; old type leaves the occasional error.