FLAX INDUSTRY.

Manawatu Herald, Volume XXIX, Issue 3777, 5 November 1907, Page 3

FLAX INDUSTRY.

[Contributed.] With its entire dependence on the market values of Manila, when the latter is scarce, as has been the case since the war between America and the Philippines, onr fibre has become a substitute for Manila. This is really what it amounts to, whatever we otherwise try to believe. The two fibres are entirely different in thennature. and no manufacturer would buy phormiura tenax in place of Manila. Much has been said as to what can be done with our fibre if only properly prepared, but no matter how it is prepared, it is, after all, only a number of short fibrils held together by different gums, so as to make what appears at first sight to be a long fibre, but expose it wet in the sun for a few days, and the gum holding the the fibrils looses its adhesiveness, and the fibrils become brittle and break. Thus the use of our fibre is unsuited for ropes lor sea purposes. The all-important question agitating the minds of all directly or indirectly engaged in this great industry is, whether fibre-growing will remain at its present low price, and what is the cause of so sudden a drop ? The cause is the same as with every other article of commerce, namely, supply and demand. Yet, you say, we did not supply much more last year than we did the year before —a little over a thousand tons, which is comparatively fractional in the fibre market. No, we must look for some*other cause. What of the Manila supplies, for, after all, it is this fibre which rules our prices, and we find the quantity of Manila which is going into the London market this year in excess of last year, is more than our total output. That is, at least, one of the reasons of the low prices obtaining, and unless the Philippines be again visited by a cyclone, as they were four , years ago, next year will find a still greater output of Manila. At the present time, the state of the money market and restricted purchasing power of the large consumers, is another reason for low prices, but this applies to Manila to a much greater extent than to our fibre, as America uses two-thirds of the Manila, and practically controls it. Our prices are not going to improve until stocks of Manila are reduced. Further, the harvest prospects in Australia are very poor, consequently, large stocks of bindertwine will be carried over, and the same state of things applies to at least three of the largest wheatgrowing states in America. This makes millers apprehensive. One short year has elapsed since flax and flax land reached almost prohibitive prices. Everyone imbibed inflated ideas, never dreaming that in such a short time the wheel would take a turn back. If fibre maintains its present price, and owners of flax land reduce royalties to meet the fall, every miller would do his best to keep going for the sake of an industry which employs thousands of men, many of whom are physically unfitted for more laborious work. If mills have to be closed down here, as they have already done in the South, many employees will regret that they are shackled by the Arbitration Court Award, as many would be willing to meet the present crisis by accepting somewhat less wages until prices improved. No miller can deliver fibre apart from royalties, in Wellington, under per ton, and he knows he can never reckon, under the most favourable circumstances, on obtaining more than 75 per cent of good fair hemp, and that he has also to contend with floods, and often sustains great loss in this way, so that all has to be provided against. Therefore, the flaxmiller, instead of being envied is between the royalty man on the one hand, and the employees on the other, and occupies an unenviable position. May the tide soon turn !