RUBBER MARKET GIVEN FREE RUN

Sun (Auckland), Volume II, Issue 322, 5 April 1928, Page 11

RUBBER MARKET GIVEN FREE RUN

RESTRICTIONS LIFTED WILD TRADING IN U.S. By l blc.—Press Association. — Copyright. Reed 11.5 a.m. LONDON. Wednesday. The Prime Minister, Mr. Baldwin, announces the removal of the restriction on the rubber output from November I.—A. and N.Z. Reed. 11.5 a.m. NEW YORK. Wed. THE wildest trading followed the London announcement that the rubber restrictions had been removed. All records were broken when the prices broke below 2? cents to a new low ground since establishment of the exchange. Sales totalling 3.594 lots set a record for all time in trading volume. The market closed off at 6.3 to 6 4 cents a pound. Congress regarded the London announcement as a victory for those sponsoring legislation to offset the monopoly. Mr Walter H. Newton. Republican member for Minneapolis, sponsor of a Bill for the establishment of buying pools, declared that legislation will, however, be proceeded with to provide against a future emergency. Mr. H. C. Hoover. Secretary of Commerce, who led the opposition to the British monopoly, refused to com mem. but some officials interpreted the British action as meaning that ihat kind of Governmental assistance to the industry had proved impracticable. —A. and N.Z. Reed. 9.5 a.m. NEW YORK. Wed Crude rubber declined 5 cents a pound on Wednesday, with the announcement of the British plan to remove export restrictions in Noveni ber. —A. and N.Z.-Sun. When the rubber market collapsed in 1922 a scheme for the restriction of output was initiated by the late Lord St* - venson. and was known as the Stevenson scheme. By this the output was regulated to maintain the price at a certain level. This provoked bitter hostility in the United States, which has been d« - pendent upon British supplies of rubbei . most of which comes from the Ma.la> States. Americans have since been a« lively working to establish rubber plantations in South America and elsewhert This rubber monopoly has been of great value to Britain in the making of hei debt payments to the United States.