WELLINGTON NEWS

Hokitika Guardian, 13 March 1928, Page 4

WELLINGTON NEWS

POSITION OF LEATHER. (Special to “ Guardian WELLINGTON, March 9. Tiie price of leather has tended upwards for some time because the output of hides has not been equal to the demand. Recently there was a world decline of IRI to lid per lb, but this is one of those fluctuations that is experienced in every market. The general trend, however, has been upwards, because for the past five or six years the world lias been using more leather than it has been aide to produce amt the number of cattle in the world is insufficient to meet the tremendous demand that has been able to produce and the number of cattle in the world is insufficient to meet the tremendous demand that has grown up since the war. Leather lias been cheap for some years but has since risen from 40 per cent to of) pei' cent. The economic position of the leather industry is somewhat peculiar, for it must be remembered that its raw material is a byproduct. Cattle will never be raised for the value of their skins alone, and therefore any increase in the demand for leather reacts slowly on supply. It is estimated that the post-war demand for leather has doubled that ol the pre-war period, and its increasing use in the motor industry and the increase in population are the principal factors. The United Kingdom is the principal importer and exporter, and bides and skins now take second place, giving pride of place only to cotton. For long it belief was and is still held that substitutes could adjust the balance of supply and demand. As far back as 1918 an inquiry into substitutes showed twenty varieties for footwear alone, and- over .'IOOO tons of rubber were being used annually for toe purpose. Tanners, however, believe that no substitute yet put forward lias the same qualities as leather or enjoyed the same demand. 'The demand runs somewhat as follows: Cattle hides, sheepskins, calfskins, goat skins and lamb skins. Horse skins and pig skins also enjoy a good demand, and there arc some other varieties, such as alligator skins, shark skins, porpoise skins, etc. So far as the demand in the broad aspect is concerned, it is obvious that tbe supply of leather depends upon the demand for meat. The Economic Conference of the League of Nations, in a report, stated that the available statistical data as to hides were too incomplete to allow tables of world’s production and consumption to be' drawn up. A general survey of the live stock situation shows that Great Britain’s cattle increased by b per cent in 1920, Germany’s decreased by nearly 7 per cent.. Franco decreased by (i. 3 per cent., India increased by nearly 7 per cent'., Canada increased by 37.6 per cent., and the United States increased by 1.6 per cent. The world total for 1926 is estimated at 9.3 per cent higher than the figure for 1913. The sheep figures show an increase-of 43 per cent on 1913. The Argentine is the greatest hide producing •country, and the Argentine and South America generally can increase the supply of beef cattle and thereby tbe supply of bides, provided there is a growing demand In meat. But though the supply may increase ill the aggregate, with an increase in population, it is scarcely doing so on a per capita basis. One of the market characteristics of the times is the comparative reduction in the consumption of meat. Unless the increasing demand for meat is greater both in the aggregate and on the [ter capita basis, which is very unlikely, it cannot ease the leather situation. In North America the number of beef cattle has decreased by 22 per cent since 1891. whereas its human population lias increased by 92 nor cent. The percentage increase in the population of Europe and tbe two Americas between 190') and 1920 is computed to be 30 per cent, .thus adding to tbe demand for leather. Even before Unwar the scarcity value of hides was apparent. From 1903 to 1913 the price of hides advanced by 70 per cent., while the general level of prices rose by 23 per cent. In 1920 hides were 31 per cent above tbe general level. It is said that there are two possible aids in increasing the supply of bides apart from increasing the supply of cattle. Science may be able to lessen tbe ravages of tbe warble fly and great skill and care may he taken in flaying, lor the number of spoilt skins is disproportionately large.