The Manawatu Herald. SATURDAY, MARCH 14, 1908. THE HEMP INDUSTRY.

Manawatu Herald, Volume XXX, Issue 389, 14 March 1908, Page 2

The Manawatu Herald. SATURDAY, MARCH 14, 1908. THE HEMP INDUSTRY.

Tins week’s Mercantile Gazette publishes au article on the above subject, which should be interesting to those engaged in the industry. It states that “it is now being generally recognised that the hemp milling industry has entered itpon a critical period. There has been a tremendous fall in values, and New Zealand hemp is to-day per ton lower than it was a year ago, so that our readers may appreciate the position we give below. The quotations for the past six weeks in comparison with those for the corresponding periods of last year are as under : 1908 1907. £ s £ s January 25 28 o 40 o February 1 28 o 40 0 February 8 28 o 39 10 Februaryis 27 15 39 10 February 22 27 o 38 xo February 29 26 0 39 0 Hemp is 33/3 per cent lower than it was a year ago, but the worst feature is that it has declined £2 1 os per ton duriug the past .three weeks. Fong ago we predicted that hemp would not maintain its position, and gave our reason, increased production. The immediate causes of the decline are various, but mainly rest with the Philippine , production and its manipulation by the Yankees! Manila hemp, prepared in the native methods, was remarkable for its tensile strength and fine quality, but the output was necessarily limited, being dependent upon the monetary needs and the disposition of the natives to work. The Yankees have made a remarkable change in the position. Manila hemp is now prepared by machinery, and although the quality may not be quite up to the standard produced by native

methods, it is nevertheless good enough for all practical purposes, while the output is larger, and the cost of production less. Thus, while Manila hemp invariably made £2 to per ton more than New Zealand, it is now selling at 20s per ton less. Our best markets hitherto have been the United States and Canada, but we are likely to be shut out of these by the grasping Yankees. It seems that there is an export duty of 30s per ton on Manila hemp, but this duty is rebated in the case of shipments to the United States ; that is, the American manufacturer secures Manila hemp at about 30s 1 per ton less than his competitors. It is a great advantage, and we may be sure the best use will be made of it. The binder-twine trade of North and South America will be captured by the Yankees, and it will be the Manila hemp that will get the preference unless we can afford to sell the New Zealand product at a price as will allow the users to compete with some degree of success with the Americans. This line of argument leads us to the belief that New Zealand hemp will recede further in value, and it therefore becomes imperative to inquire into the question of cost of production. Where the millers are paying royalties we have no doubt arrangements for . concessions, fair to both parties, can be made. But it becomes another matter when we look into the labour problem. The mill hands are working under an award of the Arbitration Court. They have a definite legal status, and whether they recede from that remains to be seen. Naturally they will not readily assent to a curtailment of their wages, and they are short-sighted enough to ‘ kill the goose that lays the golden egg.’ The temper of the unionist dees not promise much hope of a settlement of this question, and yet, it is obvious that unless the cost of production is very materially reduced the industry will go perilously near extinction-”