The Hemp Trade.

Manawatu Herald, 21 July 1898, Page 2

The Hemp Trade.

The position of the hemp market is somewhat unintelligible to flaxmillers and others. The marked i and sudden improvement in price* of. a few weeks ago has been succeeded almost as suddenly by a de oline in values which is very puzzling. The activity in the market was due to the unexpected outbreak of hostilities between Spain and America. The users of hemp and sisal in Europe are in the habit of contracting for supplies covering a period of from six to twelve months with deliveries by steamer at short intervals. The sudden outbreak of war took the manufactures by surprise, and, finding that supplies of sisal fiom America and hemp from Manila could not be delivered with any guarantee of regularity, the} were obliged to look to New Zealand, with the result that shipping agents in the colony were instructed to send forward as much as possible bj steamer, regardless of price. In thV first few weeks after the declaration of war New Zealand hemp, as W: know, rose rapidly in price, a9 much as £20 per ton being paid to local producers. Heavy shipments hav been made, and the Home manufac

turers have thus been furnished with supplies sufficient, according to their calculation?, to tide them over several month?, by which time the war no doubt will have ended. Their uiual supply of sisal and Manila hemp are still available at ports of shipment, and will be delivered as soon as peace is restored. In the meantime they have contracted for enough New Zealand hemp to keep % them going, and there is therefore no inducement to buy more with the pro -pec >.s of ppace so encouraging. Th • ce«: ation ot buying orders has caused a slump in the price, and orders cannot be booked just now at more thin from £14 103 to £15 per ton. The war was answerable for the great advance in prices, and as there is a very strong probability of -* poaco being restored very shortly, " anrl as manufacturers have enough of the mw material on hand and to arrive, bu3tnes3 in the hemp market is slack. If by any means the war is c»n'inued and the sttppliw from Manila prevented front reaching the Loul >n market, there is riot' the lc!u:t d -übfe that the New Zealand pjfvlufti will again advance in price, h Th» absence of quotations from L -odou market by cable is probably due to the scarcity of supplies on the spot, an I no sales being, effected to afford a quotation. The 1 excitement in the h >mp market is at an end, and if there is to be any advance in the price, ir. will apparently depend upon the < ff.-efc of the war on the sources of supply. The prospect, however, is not very encouraging.- Pott.