- 11. - cuinin Sir, tans.
Despite modifications of the restrictions of rubber output in territories in the Empire, and notwithstanding the talk of America acquiring huge tracts to develop her own rubber plantations, the setback in Rubber shares has not gone very far. Nor, indeed, was any important decline anticipated by those who have followed with attention the statistical position, for the one thing that seems to be reasonably certain is that even with a removal of restrictions the demands for rubber for some years to come are likely to outrun the supplies and, so far from the Companies showing a disposition to force up the price of rubber, the aim seems to be rather fo Maintain a fairly reasonable level of prices, but a level caleulated to give shareholders in Rubber Companies a reasonable return on capital invested. It is true that during the paSt week the spot price of rubber has been rushed up by, speeulative operators, but-holders of rubber shares for the mbst part are sufficiently instructed to know that it is upon 'the price of forward sales that the earning power of the coinpanies is based and for the most part it will be found that these forwaid prices, while good, are, of course, greatly below ';current quotations for stock rubber. Several new Rubber- Conipanies have been formed during the past few weeks and the shares have been quickly ..absorbed, .while the. prices of the older Asia, after a temporary decline, have shoWn a sharp upward tendency dnriti‘the past few days! w. -K.
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