RUBBER QUOTA UNCHANGED
The International Rubber Regulation Committee ha' cheered a large number of rubber shareholders, and a smalls; number of Mincing Lane traders, by making no change in th_ exportable release of rubber for the April-June quarter. Wha' is more, they have probably acted wisely. Faced with a rapid decline in stocks, the Committee might well have thought that an increase from 5o per cent. to 55 per cent. would be justified. It would still, on paper, have allowed stocks to decline slowly though it would have encouraged neither consumers ne:
(Continued on page 284)
FINANCIAL NOTES
(Continued from page 282) speculators to hold rubber. By leaving the quota at 5o per cent. the Committee have made it clear that a price of around 7.1d. per lb. is not their objective. They enforce a fairly rapid further reduction in the world-stock, and unless renewed re- cession overtakes the industry, they leave themselves the alternative of choosing later in the year, either a further advance in prices, or more generous releases of rubber. An immediate jump of !,d. to 8d. per lb. was the market's reaction to the decision.
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