The Manawatu Herald. Saturday, June 19, 1909. NEW ZEALAND HEMP.

Manawatu Herald, Volume XXXI, Issue 462, 19 June 1909, Page 2

The Manawatu Herald. Saturday, June 19, 1909. NEW ZEALAND HEMP.

About a fortnight or three weeks ago those engaged in the hemp trade were elated because an Amarican demand had sprung up for the fibre, and it was therefore assumed that prices would continue to improve, says this week’s Mercantile Gazette. The trade is anxious to seize upon any excuse for taking an optimistic view of the situation, but in this instance their optimism has been of shorf duration. Millers and merchants failed to understand the American demand, and made no effort to investigate the matter; it was, however, a simple affair. The Americans ran short of Manila hemp, and a demand for this fibre became urgent, with the result that the London prices advanced from 10s to per ton for hemp on spo v . This brought the value of Manila up to the level of good fair New Zealand hemp, and the latter was consequently quite as acceptable to the American buyer, there being no difference in price. But the moment the special demand was satisfied the price of Manila receded. The following quotations, which were the spot prices in London, as cabled to New Zealand by the High Commissioner, will explain the position:—

The transfer of the American demand was probably intended to check the advance in Manila, and it the desired effect. By June 5, two-thirds of the advance registered in the previous week was lost, and more recent cable messages received by merchants record a further heavy decline in Manila prices. As Jar as can be seen, there is little hope of New Zealand hemp showing any immediate recovery. The output of fibre at the Philippines continues large, and other fibres are coming on to the market. Producers here must closely study improved methods of production, so as to cheapen the prime cost.

New Zealand Manila. £ s d £ s d May 15 23 0 0 2150 May 22 22 15 0 21 10 0 May 29 23 0 0 23 0 0 June 5 23 0 0 22 0 0