Manawatu Herald. TUESDAY, FEB. 4, 1902. Flax.

Manawatu Herald, 4 February 1902, Page 2

Manawatu Herald. TUESDAY, FEB. 4, 1902. Flax.

The flaxmiller has had a very good innings during the last ten to twelve months, and the prospaet is very satisfactory, as he has learnt by the advance buying that has been done. This has not always been their happy state, and unfortunately millers have been too easily disturbed by the interested report of buyers, and by wild estimates of some financial genius who provides the market reports for the daily papers. It has bean our aim to carefully weigh every item of information concerning our important industry and have been fortunate in making correct anticipations.

It will be remembered that in the latter part of the year 1900 the millers began to dread a re-action and neglected opportunities for securing areas of green flax for which now they would be willing to pay twice the sum they would have had to pay then. They had got unhappy enough to doubt the stability of their industry and thus created mistrust in the minds of holders of crop needed by them. In October we went fully into the position and stated " Under whatever restrictions cheap labour may hereafter be permitted to work in the Philippines, we may feel tolerably assured they will not be such as was permitted by the Spaniards, and thus Manila must consequently rise to - a price which will afford a margin to allow flaxmilling to be carried on in this colony at a paying price. , . .

We would not like to induce men to embark capital on. our speculations of the reason for the past dearth of Manila, but still we confidently present them to those who have mills and who at present feel doubtful on the outlook, to consider and ponder over, so that they may not rashly leave what bids fair to be an industry which has come to stay." It is extremely satisfactory to all to find our predictions fulfilled to the letter, and we now will draw attention to the present state of the Manila market. The shock occasioned in 1900 was partly owing to the accumulation of hemp at Manila, which on the Ist January, 1901, had 250,950 bales on hand, but owing to the courtesy of the Agriculture Department supplying us regularly with the Manila broker’s reports, and by sending ua their regular weekly cables, we were enabled to see clearly that the total receipts kept decreasing month by month, and thus denoting a possible shortage at the end of the year. The report for the 16th December last, is to hand, and shows on that date there were only 65,838 bales on hand at Manila, pointing as we learnt by cable to a greater shortage on the first of January of this year. The total number of bales received this past year were 729,816, a deficiency of 156,807 for the corresponding period of 1900; this would however appear to justify the rise in price owing to shortage of material, but the point to the advantage of the miller lies in the fact that with stock on hand and what has come forward during the year, Manila has exported to all countries 909,478 bales, as against 684,476 bales of the previous .year, which clearly shows there has been a demand for 275,000 bales than there was in 1900. This extra quantity is distributed by Great Britain taking 229,427 extra bales, and the United States nearly 60,000 extra, and we know that N.Z. Hemp is 2.7 much required by the extra tonnage shipped. In September last Manila was quoted at £B7 16a sd, in November it was quoted at £46 15s lid and the same price in December, at Manila, and the broker’s remarks are, "dealers are still asking more than buyers care to pay." Millers in this coinpy have bad firm offers at guja xor hemp up to the end

of June, so it appears as though London buyers had little hope of Manila being produced in extra quantity until then, and to our view prices will hold very firm the year through, if the millers do.