Cotton and Rubber The much-discussed Anglo-American barter deal in rubber
and cotton has now been concluded, though at present neither of the Governments concerned has legisla- tive power to carry through the transaction. Formal acquisition of these powers, however, will not be long delayed ; the British Government will get them under the Ministry of Supply Bill, now before the House, and the complications introduced by the rubber quota—the cotton stocks are already in the hands of the United States Govern- ment—are expected to be overcome without much difficulty. The deal constitutes less of a departure than appears at first sight from the principle, accepted by both Governments, of adherence to normal trading methods. Unlike the barter deals on which Germany so largely relies, it does not replace or supplant any ordinary commercial transaction ; it is a purely supplementary exchange of stocks for the specific purpose of forming a war-time reserve, and the agreement stipulates that the stocks shall not be otherwise used until at least seven years have elapsed. It is a sad comment on the state of the world, both politically and economically, that such a transaction should be wanted from any point of view ; but, apart from the natural uneasiness of the dealers in both commodities, it is likely to be generally welcomed as benefiting both the producers concerned and the cause of national security.
* * * *
Previous page
