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7 1921, stocks of raw rubber were heavy and relief seemed remote. 
United Kingdom Government had during 1920 been asked to regulate 
ments of rubber from Malaya and from Ceylon. State action was 
|. rst refused. But, in 1921, affairs in the Malay States were approaching 
feral crisis. Rubber was selling below. the cost .of production and the 
“market was depressed. Government revenues were dwindling; large 
1 ‘ons of the native population were faced with unemployment and ruin; 
tes were reaching the end of their financial resources. An American 
lcial combine, with a capital of £50,000,000, had been formed to buy 
tes at knock-out prices as opportunity offered. These dangers were 
ted by the introduction of the Stevenson Scheme. 
TeE STEVENSON SoHEME.* 
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e scheme established a minimum rate of export duty, and at the 
time provided that a duty rising to prohibitive rates should be 
sed on total exports if they exceeded the amount fixed in accordance 
the scheme. ' The scheme pivoted on a London price of 1s. 8d. a Ib. 
‘aw rubber, which permitted estates to be maintained in good order 
a moderate profit to the plantation owner. The Dutch refused to 
into the scheme, but the British estates in the Dutch East Indies— 
senting 25 to 30 per cent. of the output of the Dutch East Indies— 
iarily agreed to regulate their exports according to the scheme, if 
tre compulsorily applied in Malaya and Ceylon. Growers in Sarawak, 
bo and Southern India also agreed to a scheme of voluntary restriction. 
br the Stevenson scheme the productive capacity of each estate was 
ted by Committees in the East. This assessment, known as ‘ standard 
hetion,” gave originally a fair idea of the productive capacity of 
Istate on a moderately liberal system of tapping, and the assessments 
annually revised, The percentage of the ‘standard production 
each estate coyld export on payment of the minimum rate of export 
during any quarter was to be regulated by the average price of 
ndard quality, smoked sheet,”” in the London market during the 
ous quarter. The initial percentage was fixed at 60, that is, for the 
quarter in which the scheme was in operation, each estate was allowed 
port, at the minimum rate of duty, 60 per cent. of its * standard 
jogton, It was laid down in the scheme that if the average price 
bber were 1s. 3d, a lb. or over during any quarter, the percentage 
+; ‘could be exported at the minimum rate in the following quarter 
be increased by 5, If the price were 1s. 6d. or over, the percentage 
t be increased by 10. If the percentage was over 65 and the price 
«f ander 1s. 3d. but over 1s. the percentage in the following quarter 
| drop by 5 until it got down to 60 per cent., but the percentage 
> not fall below 60 unless the price fell to less than 1s. a lb. But 
1. price fell below 1s., no matter what the percentage for that quarter 
’ ie bercentage for the following quarter dropped to 55. This particular 
0 never came into force, The percentage rose to 65 during the 
| quarter of the operation of the scheme, and then again fell to 60 
[ereained at that figure for a year. In the May-July quarter, 1924, 
er, the price was below 1s., the percentage was reduced to 55, 
hereafter under the scheme it could fall by 5 each quarter until the 
got over ls. 34d. 
© Report of a Committee appoj i i i : 
© Repo ppointed fo investigate the Rubber Situation in 
x i ones and Protectorates—Cmd. 1678, and Supplementary Report— 
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