• SET BACK IN RUBBER.
A teniporary scare was created in the market for Rubber shares on Monday by the somewhat indefinite and rather sensational cables from Colombo suggesting drastic modi- fications of the scheme for restricting rubber output within the Empire. Calmer—and more sensible—views soon pre- vaned, however, so far as the share market was concerned, although the price of rubber itself dropped sharply. For the most part, however, the buying of rubber shares has been of a thoroughly intelligent character ; that is to say, investors have never reckoned for a moment upon the - present prices for spot rubber being permanently maintained, and in the case-of most of the companies it is known that even if there were a much heavier fall in the price of rubber than seems at all likely at the moment, a handsome return is assured to shareholders. It is, perhaps, just as well, however, that intending buyers should have had a further reminder of the necessity for discrimination in the matter of purchases because the market had certainly reached a point when in addition to the intelligent buying to which I have referred, a good deal of indiscriminate purchases were also in evidence. It is quite possible that liquidation of some of these positions may keep the market back for a time, although the modifica- tion of the Restriction Scheme will have to be much more drastic than has been foreshadowed at present to warrant any material fall in the better-class shares.
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