THE RUBBER DECISION.
The market for. Rubber shAie's does not appear to have been very much elated by the publication of the Rubber Scheme regulation to be in force for the next. twelve months. For the quarterly period beginning on-November 1st it is 'clear that the standard production will be at 80 per cent., making a reduction of 20 per cent. on the present figure. This, however, was pretty much in accordance with expectations, and while the market is pleased with the decision to declare a policy extending over an entire twelvemonth, there are points in connexion with the decision which are regarded as less satisfactory. The position is not yet clear with regard to the problem of what is known as coupon rubber, while cables from the East stating that the standard output is to be re- stricted to 300 lbs. per acre have also puzzled the market and have raised the question of whether those companies capable of turning out larger amounts of rubber will be placed at a disadvantage. All the same, I am inclined to think that the whole spirit of the decision is to provide for rubber being sold on profitable terms to the producers and, if that view is correct, it would not be surprising if there-were to be some improvement in share values, especially if, as has always been predicted, there is to be scarcity of the commodity a year or two hence.
A. W. K.
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