PAPER SHORTAGE

Dominion, Volume 13, Issue 153, 24 March 1920, Page 8

PAPER SHORTAGE

NEWSPAPERS THREATENED WITH

EXTINCTION

ALL MARKETS STRIPPED

PRICES SOARING

A cable message received in Wellington last evening' threw further light on tho seriousness of the situation confront--ins the newspaper proprietors of NewZealand concerning supplies of printing: paper for 1920. According to the message in Question, tho outlook is black indeed, it being impossible at the moment to arrange for expected deliveries. Some idea of .the gravity of .the situation may lie withered from the comments of an Australian journal:—

' Commenting on the present state of the nan-sprint (paper) market, this journal re= eentlv remarked, that nil,.over Australia nnd New Zealand there are newspapers threatened with extinction. They have reached the end of thi< newspaper supplies Tind replenishments are not in sieht. Some are eking out a hazardous existence for a'few weeks or months longer bv borrowing from competitors slightly better placed. These loans, however, have also ceased, because no office has any surplus left, and each is workin* on a hand-to-mouth system. - _■ '. The crisis'lias grown more acute during tho Inst few weeks. The' position was bad enough at tho beginning of December. To-dnv it is 50 por cent. , worse. The position during the war was that paper in abundance could ( be bought, but there was an increasing:' difficulty in finding ships to carry it. To-day the shipping is available, but there is no paper for-sale. . :

Looking to Canada. Australian and New Zealand newspapers, because of the war, became almost entirely dependent upon' the Canadian paper mills during 1919, and looked to them to provide supplies for 1920. Just when.contracts were ready for signature, however, tho shortage of newsprint in North America (which-had been concealed from general knowledge) became, apnaront. American papers, having largely increased their prices and their advertising rates, were ablq to pay ranch larger charges for their materials, and the exchange Tats further gave them an enormous advantage .over.,.Australnsian and British competitors. They had thus cut dcenly into Canadian stocks, so that even Canadian papers were confronted with a possible-famine, no matter what they might pay. The Canadian manufacturer, compelled to sell in 'Canada bv Government control at jCI7 per ton. naturally preferred to place his output in New York at £U, per ton.

The Cnnndinn market, because of these local oonditions. was suddenly closed against Australia and New Zealand. It is extremely improbable that tho Com-monwealth-and Dominion will draw from Canada even one-fourth of the newsprint which thev received from that Dominion Inst vear. In these circumstances Australian and New Zealand papers, like the great journals of New York, Shu Hi 'America. France. Italy, and Great Britain, had to turn to the paper-making countries of the Old .World, and chiefly to Scandinavia, in the hope of retrieving the situation. ■ >

Prices on the Jump. With all theso buyers in the market biddine' almost frantically for stocks, trices commenced to jump, and American Quotations followed in concert. In the rush some were lucky and some were not. Rome had reason to believe that they :were very lucky until it -was discovered that the output of the "mills had been considerably oversold, whereupon most unpleasant shocks were, received by buyers on this side. What they thought were firm contracts turned out to be waste paper, because they -were informed that larco parcels upon winch they had relied would not reach them, because, the mills could not produce tho paper. Tho scramble for what little is left has therefore been something of a panic, and a sent after agent in Australia has been forced, to inform prospective clients t that :'ho'cannot a'uote at any price, for'any Quantity for delivery at any time. . . Tho condition of the climbing market is best displosed in n table setting'forth actual Quotations during the .last few months, and its significance may not be realised unless it is tone in mind that paper was landed, duty paid, in Australian and .New Zealand ports' heforo the war nt 10s. per ton. These, aecord-' 'ing.to Australian reports, were the best prices offered!— ' ' ' Per ton. 1919. •« «■ Julv.7 32 10 October 3 33 0 October 5 33 10 October 87 37 5 Ocbber 29 ~ 40 0 December 2, ..;.;... 42 10 December 31 4410. 1920. January 15 47 10 ■ t January 18 '51 5, January 20 / 60 0 January 23 .'.. 72- 0 - February 1 75 0 There are no Quotations current so far as New Zealand is concerned. The prices . havo deterred proprietors from entering into contracts for 1921, and only small parcels are obtainable for delivery in 1920, the prices being more ,than double those •fuling last year. Under tbeso conditions it appears to be inevitable that tho size of papers will, bo everywhere reduced, and the "rationing of udve.rtiscis rill become universal. A sharp rise in advertisement, rates is also to be anticipated.