RUBBER PRODUCTION AND TRADE OF BRAZIL.

The rubber-crop year for the season of 1902-3 closed June 30 under very satisfactory conditions. Estimates and preparations are now being made for the new season just begun. The crop of 1901–2 was the largest ever produced-29,998 tons. The crop of the season just closed was 29,890, a decrease of only 108 tons, or less than 1 per This is especially satisfactory to the trade. Of last season's crop Europe took 15,261 tons and the United States 14,566 tons, an increase in shipments to the United States over the previous year of 510 tons, while the shipments to Europe fell off correspondingly. The product was shipped as follows:

cent.

The stock on hand June 30 was 129 tons.

During the past year prices ruled fairly firm at good figures. The exceedingly high prices which prevailed formerly may never be restored, but producers as well as dealers find there is still a very handsome profit for them, once they have accommodated themselves to the new and more healthy conditions.

Never before has so much enthusiasm been shown in the trade, and never before have so many men been employed in the business. Thousands of laborers are pouring into the forests of the interior, and thousands more will follow. New rubber fields will be opened and old ones worked with improved methods and larger forces. As an example of this, I might quote the case of one of the largest rubber producers on the Madeira, who recently informed me that he would take out this year four times as much rubber as ever before.

Business is steadily improving here. One encouraging sign of the times is the fact that several new houses are preparing to embark in the export trade. It seems safe to predict that if there are no further political troubles on the upper river, the crop of this season will be far in advance of any ever before known.

PARA, BRAZIL, July 7, 1903.

K. K. KENNEDAY,

Consul.

ADVANCE IN PRICE OF GERMAN RUBBER GOODS.

A circular recently issued by the India Rubber Manufacturers' Association announces an advance of 10 per cent in the price of mechanical goods, which may be roughly described as packing, belting, and hose. This advance is due to the rise in price of raw rubber. Para rubber, which rules the market quotations, has seen some rather prominent fluctuations in recent years, and its purchase has come to be looked upon as a proceeding of a highly speculative nature. In 1900 the price reached $1.01 per pound. Since then it has touched 69 cents. Of late, however, contrary to general opinion, a steady rise has been perceptible, the present price being 95 cents per pound, with every prospect of the figures of three years ago being exceeded in the near future. Under the circumstances, therefore, it was imperative that stringent measures should be taken by manufacturers to insure that they should not, in taking contracts, lose money. It was not merely a consideration of greater or less profit, though this can not, of course, be looked upon as of subsidiary interest; it has obviated the alternative of a reduction in quality. Such reductions have been resorted to in the past much more freely than was to the ultimate advantage of either buyer or seller. OLIVER J. D. HUES,

COBURG, GERMANY, July 14, 1903.

Consul-General.

RUBBER-GOODS INDUSTRY OF GERMANY.

IMPORTS AND EXPORTS.

While in 1902 the rubber industry in Germany only held its own, no new plants having been constructed, it seems probable that the general tendency of steady expansion which has marked this industry for over a decade will be gradually resumed. The importations of rubber and gutta-percha rose steadily from 25,800,000 marks ($6,140,400) in 1892 to 73,800,000 marks ($17,564,400) in 1900, but dropped to 48,200,000 marks ($11,471,600) in 1901—a decline caused by the serious business depression prevailing in Germany during that year. In 1902 the import of raw rubber and gutta-percha increased to 60,935,000 marks ($14,502,530), and the three months of January, February, and March show an increase in the amount of rubber and gutta-percha imported and in the amount of rubber goods exported.

Although the business depression has been seriously felt by the rubber industry, it has not suffered from the serious failures that have affected other lines of manufacture. Decreased consumption in the home market and a tendency to unduly lower prices were the most serious difficulties contended with in the year 1902. In the first nine months of that year there was a decided increase of the amount of rubber consumed as compared with the corresponding period of 1901, and an increased export of rubber goods amounting to 3,500,000 marks ($833,000).

THE NEW TARIFF.

The most important factor that is likely to materially affect the manufacture of rubber goods in this country in the near future is the new tariff, which increases the duties on various classes of rubber goods and will affect to an important degree competition. from foreign countries. The most radical advances in duties relate to woven goods containing rubber and textiles, the duty being raised from 90 marks to 100 marks ($21.42 to $23.80) per 100 kilograms (220.46 pounds), except when silk is used with rubber, in which case it was raised to 180 marks ($42.84), and on rubber shoes, the duty on which is raised from 40 marks to 70 marks ($9.52 to $16.66) per 100 kilograms for unlacquered shoes and from 60 marks to 100 marks ($14.28 to $23.80) on lacquered shoes.

The new German tariff will not go into effect before new commercial treaties are negotiated with foreign powers, and if these treaties fail to secure satisfactory conditions for the export of German rubber goods the product manufactured for export will be sold in Germany and will, it is feared, seriously congest the whole market, as in certain lines of goods-especially in belting-the inland trade is not large enough to give sufficient work to all factories.

WAGES IN GERMANY AND IN THE UNITED STATES.

In all lines of manufacture requiring hand labor Germany has the advantage of cheap wages, and it is only in machine-made articles that the United States can hope to compete successfully. It is estimated that the wages paid in Germany at present to workers in the manufacture of rubber goods vary from 40 cents to $1 for women and from 75 cents to $1 for men, the average wage for women being about 47 cents and for men 92 cents per day. Low as are the wages of the German laborers, the wage paid Russian laborers is only about one-half thereof, and the increased competition, especially in rubber shoes from Russia, was one of the factors in the increase of duties on rubber goods in the new tariff. With cheap skilled labor, adequate capital, and thoroughly scientific methods, it is likely that Germany will remain a keen competitor in the world's markets.

GERMANY'S CHEMICAL TALENT.

England and America have been the pioneers in inventing new processes in the manufacture of rubber goods and the development of this industry on a large scale, but the importance of Germany as a manufacturer of rubber goods is steadily increasing and she is at present one of the foremost producers in this line. One of the factors that have contributed notably to the success of this industry in Germany has been the high grade of chemical talent which has been employed. While it is not possible to reproduce an article exactly from the results of chemical analysis, the results of German investigations show that important savings in the expense of testing and experimenting on a product which it is desired to imitate can be achieved by having this work done by men of large scientific knowledge who are thorough chemists. It is especially through the ability of these men that a development in the industry is to be looked for in this country.

DEAN B. MASON,

Vice and Deputy Consul-General.

BERLIN, GERMANY, July 11, 1903.

SUGAR INDUSTRY OF AUSTRIA-HUNGARY.

EFFECTS OF OVERPRODUCTION.

In the year 1901 there was an excessively large crop of beets and an unusually large amount of unsold sugar on hand, prior to which time an overproduction of sugar seems to have taken place throughout the world, resulting in the unprecedented decline in price to 18 crowns per 100 kilograms ($3.62 per 220 pounds) f. o. b. Aussig, which is the principal shipping point of Bohemia by water transportation. The price further receded until it reached the quotation of 16.40 crowns per 100 kilograms ($3.33 per 220 pounds). Sugar factories, therefore, showed correspondingly bad results generally, and only those favored with exceptional yields or reduced working expenses escaped very heavy losses. The low prices of 1902 had, however, the beneficial effect of reducing the area of beet planting about 10 per cent.

DISCRIMINATION IN FAVOR OF FOREIGN BUYERS.

England is the largest buyer of Austrian sugar, and in consequence of the Austrian Government export bounty of 4.60 crowns per 100 kilograms (93 cents per 220 pounds) to refiners and exporters and the Government tax, together with the local consumers' tax, amounting to 38 crowns per 100 kilograms ($7.71 per 220 pounds), Austrian sugar is sold in England at less than half the price it is sold. to consumers in this country, where it is grown and manufactured,

f. o. b.

as shown as follows, per cwt. (112 pounds): Present price Hamburg, 9s. 6d. ($2.31); freight and insurance to England, 6d. (12 cents); English import duty, 4S. 2d. ($1.01); total cost of 112 pounds delivered in England, 14s. 2d. ($3.45). At the exchange rate of 24. crowns ($4.87) per pound sterling this is equal to 33.50 crowns ($6.74) per 100 kilograms (220 pounds), while the present selling price of refined sugar in Austria, fixed by the cartel, is 84 crowns ($17.05) per 100 kilograms (220 pounds), leaving the discrimination. in favor of England against the home market 50.50 crowns ($11.61).

AREA UNDER CULTIVATION.

The total area of sugar beets under cultivation in Austria-Hungary was stated in May as follows:

The reduction of the area under cultivation would not have sufficed to bring about the change for the better, but fortunately this year's beet crop in both Bohemia and Germany fell far below the average, being in many places 40 per cent below the preceding year.

CONSUMPTION AND PRODUCTION.

As the home consumption amounts to about one-third of the total beet production, the raw-sugar factories receive from the refiners 3.50 crowns per 100 kilograms (71 cents per 220 pounds) trust profit, which is of vital importance to them. The statistical figures for Austria-Hungary have been computed as follows: