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Hokitika Guardian, 14 April 1928, Page 2

Tim removal of the hail on the free sale of rubljcr has been announced by Air Baldwin, the change to take client as from November Ist. next. Though it had been officially intimated that the restrictions on sales would in all probability he soon abolished. "the I’rinic .Minister’s statement seems to have taken the market by surprise. The effect of this “stunning blow" to

<lu*> t>■ the “.M urn i ii;.; l , o>(" lin> l.ccil to lower tile current, price of rubber to 10i(I per lll—ns :ittainst the iiornui! level of Is .'id in 1922 and Is 9d per II). in 192(1 -and to depreciute rublxT si in res in n day or two to the extent ot £70.()0(>,0!)<>. No douht .Air llaldwin will he subjected, says a critic, to much vehement criticism by ‘'the trade.” lint under the circumstances it is hard to see how the embargo could be maintained with advantage much longer. When the Stevenson scheme was adopted in 1922. Britain was producing over 70 iter cent, of the world's rubber, and last year the British Killin're produced less than o() per cent of Ihe total supply. The effect of the restriction, and the eonse*|uenl rise in prices, was inevitably to encourage outside competition and to promote the the n--o of substitutes for rubber. This was piedhted by many cionomists at the time, and their prophecies have been speedily fulfilled. 'Die only deha fable point is whether the proposed release has not been announced too suddenly, and lias therefore caused needle's commercial dislocation and loss. It may lie added that some English- critics are certain to connect this chance of policy with the violent attacks upon tin' Stevenson system that have emanated from America, and Afr Baldw in will he accused not so much of disregard for Britain’s commercial interests ns of subservience to the American Government and the “money power” that influences or controls it.