The Problem of Rubber Supply

January 30, 1926

Report Outline
Development of the Rubber Industry
Range of Crude Rubber Prices
The British Control Scheme
The Question of Future Supply
Proposed Measures of Relief

A branch of the American rubber manufacturing industry - tires - attained the billion dollar class in 1925. The value of its output for the year set a record which appeared only a short time before to be at least ten years distant. There was a notable increase in the output of tires, but the increase in value during the year was due principally to the price movement in crude rubber.

Until recently crude rubber prices have been advancing. During the last twelve months they reached extraordinary, although not unprecedented, levels. Higher prices for crude rubber have been reflected in increased prices for tires and some other rubber goods. Prices for the types of tires in common use have risen from 60 to 65 per cent within the year and the cut-throat competition between tire companies, heretofore manifested in competitive price cutting, has tended to disappear.

The upward movement in crude rubber prices has been attributed principally to the operation of the plan for restricting the output of crude rubber in territory under British dominance, from which the greater part of the world's crude rubber supply has been drawn in the recent years. The scheme was devised and inaugurated, and has been administered in operation by the British colonial authorities.

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