The Hokitika Guardian THURSDAY MARCH 2nd, 1922 THE PRICE OF TIMBER.

Hokitika Guardian, 2 March 1922, Page 2

The Hokitika Guardian THURSDAY MARCH 2nd, 1922 THE PRICE OF TIMBER.

Somk inquiries were made in Dunedin recently respecting the prices of timber, and the impression was gained in several quarters that the cost of local timber was being maintained at what is an unduly high level. It is pointed out, for instance, that timber can bo brought from the Pacific coast to these shores and after payment of freight charges, duty, and other incidental expenses, it can he sold at a> price enabling it to compete with the local timbers, thus indicating that there is some room for a reduction. Since April of last year, the price of Oregon timber has dropped by 15s :ii l(X)ft. equal to about 25 per cent., but there has been a limited quantity coming forward because (the local trade generally has been of the opinion that there would he a. further drop. However, there are no signs of an additional reduction at ; the present time, the latest quotations from the coast showing an advance, and xhe accompanying advices indicating that the latest prices are likely to remain unaltered for somo little time. There is at the moment a. fair amount of merchantable Oregon in stock in Dunedin, hut the importations for the last eight or ten months have now approached those of normal times, owing to the feeling that prices were going to recede. American redwoods have also experienced a considerable drop since last April, the reduction being in the vicinity of from 30 to 35 per cent. Th e local stocks are in short compass. In fact, most of the merchants are out of supplies. Since this drop prices have remained constant, and at the moment there is no indication of a change. On the Pacific coast the mills have formed a selling combination, and all • orders are distributed pro rata among the mills. As regards local timbers there is at present ai certain amount of slackness in the building trade, owing to th e impression that prices were going to recede. Should there be a further fall in the price of imported timbers it is difficult to seo how fhe local timbers ona

continue to maintain their present level of values. It is asserted that UtlloSS this reduction is made, they will be unable to compete with the imported woods. Another matter which win brought under Notice had relation to the effect of the new customs tariff in the ease of countries with a depreciated currency, it being pointed out that ilie increased duties made it almost impossible to import lines from these countries. A case in point is thnr of Russian plywood, which cannot be imported either direct or bought through the open market in London, without carrying an extra duty of 25 per cent., thus bringing the total duty payable up to tr!> per cent, ad valorem. The line quality of Russian plywood and its freedom from warping made it much sought- after before the war, and in view of the extra- duty which it now carries, an the product of a country where the curerticy has depreciated by over 90 per Cellti. it is impossible to sell it locallx iil competition with the Canadilau product. The duty on Canadian plywood is only 20 per cent. The Canadians obviously have a, great advantage over the Russians. It may be added that the

duty on Swedish is 35 per cent., The currency in this country being appreciated.