The World Rubber Agreement The rubber agreement is a momentous
event in the sphere of international economic planning, and reflects credit on the British, Dutch and French representatives on the Rubber Growers' Association who have been able to decide on joint action. The trouble has been the familiar one of over-production, a world glut, and ruinously low prices. Previous attempts at restriction of output, applied only in British areas, have been defeated by expansion of production in Dutch and other areas. Only a plan of regulation for all the main rubber-growing coun- tries would meet the case. That is what has been ar- ranged. Quotas of production and export have been allotted to all the territories concerned, and an Inter- national Rubber Regulation Committee with delegates appointed by territorial governments will from time to time fix the percentages. In view of the existing super- abundance of stocks the export for the present year will be comparatively small ; it is projected that it should rise gradually year by year until 1938. The policy of the Committee will be to achieve equilibrium between output and demand on a basis likely to yield reasonable prices, the interests of consumers being represented on the corn- mittee—a, point of first-rate importance to Americans. The agreement is a model of voluntary international action for avoiding• senseless competition in the pro- duction of a prime commodity.
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