The chief basis of government control is the introduction forthwith of an import monopoly in rubber except liquid latex, balata, gutta rercha and sole crêpe under he Ministry of Supply, Changing the method used in the recent monopolization of cotton, the Ministry of Supply uses regular trade channels for the purchase of rubber on f. oh. terms in producing countries and for the distribution to manufacturers within the United Kingdom, Requi-sirioning of British rubber stocks has not taken place, as it did in cotton, but sales are possible only to the ed genuine trade and consumers, Mar-Ket outsiders must liquidate their open positions and cannot enter new contracts, Speculation thus is ended, The terms of the Ministry's sales prices of rubber to dealers for distribution still are unsettled, It is obvious, however, that the import monopoly secure: for the Ministry of Supply complete control of prices in the United Kingdom, so that market quotations have little representative value, The new system virtually reduces market transactions to a commission. business and ends interest in the futures market, It is surprising, under the conditions, that the London rubber market has been kept open, The reason prefably is the adverse experience of the recent establishment of a cotton monopoly which dislocated distribution at least temporarily, System Still An Experiment For the present, the rubber control stem remains an experiment, If it proving unsatisfactory, further stiffening of government control is expected soon, Vice versa, good experience may prove a decisive influence on general British ra material control and may lead to readmission to trade of products now solely dealt in through the government at official maximum prices.
International business of British rubber dealers and shipments from British producing areas to non-British countries, are unaffected by the new control, It is believed likely in London that the British Government's rubber-import monopoly even mey reduce British demand in the Fastern markets, thus assuring larger potential supplies for tte United States, Meanwhile, official statistics reveal a favourable' supply position World exports of rubber by producing countries in the first quarter of 194i amounted to 381,576 long tons, against 338,689 a year ago, while world absorption declined' simultaneously from 301,798 to 281,062 long tons, Maintenance of record shipments deely is expected, The International Rubber Regulation Committee is to meet here on May 20, The general belief is that the 100 per cent export quota will be extended through the third quarter or even through the second half of 1941, This would assure world exports from producing countries at the record annual rate of 1,600,000 long tons, which is more than 500,000 tons more than the probable consumption in 1941, If war in the Pacific is averted, the surplus supply should reduce current quotations materially.
Text read from the printed page and cleaned; old type leaves the occasional error.