Phormium Tenax

Feilding Star, Volume XI, Issue 14, 18 July 1889, Page 3

Phormium Ten ax

The Agent-General to the Hon. the Colonial Secretary. Paris 17th May, 1889. Sib, — I have to acknowledge the receipt of your letter of the lst April (No. 40), relating" to the Phormium tenax, and the recent .advance in its price. I had noticed in recent files that th* sudden and remarkable rise in price was supposed in New Zealand to have been caused by . some secret as to the uses to which it could be put in trade ; but there does not seem to be any foundation for that conjecture. The rise has taken place under one of the curious fluctuations which happen now and then in so many articles of commerce, and which baffle the keenest of the crowd of observers who are always on the watch in every centre of mercantile activity for chance of profit The market for Manilla has not only been in a very excited condition lately, but is likely to continue so far a time. One of the trade circulars issued only a few days ago referred to it in these terms : " There has been an extraordinary change during the last fortnight, the advance has been £10 per ton and a fair extent of business has been done at an advance of fully £8 per ton of fair current quality over prices at which very few would entertain offers made only two or three weeks ago." As the suddenness and extent of this advance has been caused by speculation in the United States, it will probably droop soon. But there is not any doubt that the consumption of all manufacturers of hemp 1S increasing too largely everywhere not to press more heavily than was supposed only the other day on the known sources of supply ; and, although I hesitate to express an opinion of toy own on matters of trade, I have for a long tl me P aat t)een certain, a 8 a constant student of statistical auestions, that ia both hempen and woollen products the demand of the world is so fast overtaking the ordm- ] r rv production that a cycle of comparatively high prices is likely to be en The increased demand for femp will, of course, stimulate new iources of supply, and bring down the Market rate of to-day; but the PhorSitt tenax was always sure to find a Srong place- some, day in the hemp jSae * a nd it was only, ft. question of

time when it should do so. That place is how assured if, only growers will take pains in tbe preparation of tho hemp for the Euglish and Ameti can markets. You wili find this con dition insisted upon in the letters I enclese, and nothing is more certain than that the growers iv the colony have a reasonably profitable time before them if they #ill accept this condition, and send Home only properly dressed hemp— l have, &c, F. D Bell. The hon, the Colonial Secretary, Wellington.