Singapore Grip - J. G. Farrell [49]
Walter’s predicament stemmed indirectly from the successful operation of the Restriction scheme’s tap for controlling the flow of rubber on to the market, of which he had originally been one of the chief plumbers. As a result of the recession of 1938 and the fall in price to five pence a pound the Committee had given the tap a savage twist, shutting down the flow to forty-five per cent of capacity. Thereafter in the reservoir of rubber stocks the level began to sink and the price to creep up again. By the beginning of 1939 the level had fallen once more below the danger mark which had released the previous boom, but the Committee still showed no sign of opening the tap.
As it had turned out, it was neither the idleness of the native smallholders nor the lack of capacity of the producing countries which had now set the price of rubber on its long, steady climb, but the declaration of war in Europe. At the end of 1939 with the level in the reservoir very low (a mere two months’ absorption) the price had been standing at a gratifying shilling a pound. This, patriotism apart, had been a tense period for Walter and his colleagues. What effect would war have on the use of rubber? Their experience during the Great War had been of little help: in those days the industry had hardly got under way. But they had not had long to wait. Despite a grudging increase in the amount released to the market the level continued to sink. Rubber was being used more than ever.
At this point the Committee began to come under heavy pressure, not just from the manufacturers but from the United States Government and the British Ministry of Supply. More rubber must be released! And it was, but still not enough. The German attack on France and the Low Countries the preceding spring (May 1940) had alarmed the Americans about their future supplies: they wanted to build up a reserve in case it should be needed for their defence programme. And so they had established the Rubber Reserve Company to buy the 150,000 tons they thought they would need at a decent price of up to twenty US cents a pound; the Committee had agreed to increase the flow so that there would be enough rubber on the market for them to buy. Presently the Americans had decided to make it 330,000 tons.
Alas, against all expectations the amount of rubber used by private manufacturers continued to rise and, despite the increased rate of release, there was still not enough to go round. The United States Government’s twenty cents, which at one time would have been considered bountiful, was being resolutely outbid by private manufacturers who, often as not (Walter had to smile at the thought of it) were themselves the chaps who had been appointed as buying agents for the Government and who were now in the satisfactory position of bidding against (and naturally outbidding) their official selves! How poignant it was when the Reserve Company found that after six months of effort its cupboard was still almost as bare as it had been at the beginning! Even when the Committee had at last reluctantly agreed to raise the rate of release to one hundred per cent for the first quarter of 1941 there was still no sign of the market reaching saturation point. The spreading Japanese influence, moreover, was diverting rubber from Indo-China and Siam away from Britain and the United States. There could no longer be any serious doubt about it, in Walter’s view: the producers’ wildest dreams were being realized. This time they had a genuine shortage of rubber, not just the wishful thinking of a fast-talking London broker.
Now in February 1941 while he was chatting idly with Ehrendorf about Japan’s need for raw materials and the powerful grip that this gave the Western nations on her wind-pipe (where on earth had Joan got to, by the way, she surely hadn’t stood him up again!) the young man happened to remark that his countrymen were planning to acquire a further 100,000 tons of rubber for the Reserve Company.
‘What did you say?’ asked Walter casually, doing his best to conceal his surprise: this was the