5 SEPTEMBER 1925, Page 32

ACTIVITY IN RUBBER.

Some weeks ago when the speculative movement in Rubber shares reached its climax it was clear that there must be a considerable pause in activity. Such has, of course, proved to be the case, and for a time, and in some directions, the reaction was all the more marked because of the agitation against the Rubber Restriction of Output Scheme. In the intervening weeks, however, not only has there been a cleaning up of the position as regards speculative accounts, but a careful study of the statistical position of rubber has convinced most people that even if the present output were materially enlarged, the consumptive demands for rubber are likely to keep prices at a profitable level for most of the producing companies for some few years ahead. Indeed, the Editor of the Straits Times, who is an acknow- ledged authority on rubber, has expressed the opinion in a recent article " that three million more acres planted as quickly as is humanly possible may not be too large to meet the world's needs in 1932." The Editor of the Straits Times also criticizes the recent protest against the Stevenson Restriction Scheme on the part of certain American buyers. At the conclusion of his article, however, he urges an agreement between .producers and consumers for a stabilized price of, say, 2s., which, he maintains, would give to consumers rubber at a reasonable price at the same time insuring the development of the industry to keep pace with the world's growing demands.

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