For the July/Sept. term, production at 45 per cent. will amount to 175,800 tons, an average of 58,600 tons monthly against current absorption of 68300 tons. Hence, without any improvement at all in world conditions, we may confidently look forward to a monthly reduction of 10.000 tons from then on.
The I.R.R.C. having now adopted a firm policy may be expected to hold to it and to extend the 45 per cent. release to the end of the year, unless indeed there is a complete change for the better. In either event stocks at the end of the year should not be much higher than at the beginning and quite possibly markedly lower. The spur would have to come from the United States and knowing the very unstable character of business there we cannot rule out the possibility of such a change. But until there is visible evidence of it the rubber investor must make up his mind that patience is a salutary virtue, The present Restriction Scheme expires "at the end of the year and "will be replaced by a new scheme, with modifications suggested by perience and circumstances, to cover the next five years. It has been submitted to the governments concerned and must be approved by the end of the month. It is highly unlikely that approval will be withheld'by any of the parties to it, especially as considerable concessions have been made to Java and to the smaller producing countries.
Text read from the printed page and cleaned; old type leaves the occasional error.