THE HEMP INDUSTRY.

Manawatu Herald, Volume XXXIV, Issue 1022, 23 March 1912, Page 3

THE HEMP INDUSTRY.

FEBRUARY GRADING RE-

TURNS

The total number of bales of hemp graded during the mouth of February was 9,291, as compared with 8,897 lor the corresponding month of last year, an increase ot 304 bales. For the twelve months ending 20th February, 1912, the number of bales graded was 85,512 as compared with 125,655 tor the previous twelve months, the decrease being 40,143 bales. During the month 2,737 bales of tow were dealt with, as compared with 3,476 for the corresponding mouth of last year, a decrease of 739 bales. hemp. The number of bales of hemp graded at the different ports was as follows :—Auckland 734, Napier 107, Foxtou 4224, Wellington 3661, Picton 165, Dunedin 92 and Bluff 308. The number of bales in each

la the High Commissioner’s market cable of the 13th January reference was made to the fact that the rise in value reported in the cable of the 7th January was due to a reported agreement made by the Mexican Government with regard to sis.il hemp. The High Commissioner amplifies this statement in a special report dated Eoudon, 17th January. He says : “The arrangement is generally referred to as a ‘valorisation scheme,’ but so far no definite particulars have come to hand, and opinions are only based upon cabled information, The root of the matter lies in the very low prices which have been ruling for sisal recently. This hemp is used chiefly in the United States of America for binder twine manufacture, and the greater part of the output is sold in New York. One of the largest buyers is the Harvester Trust—in fact, that organisation would seem to be the ruling factor on the market. Owing to their large business, the trust, and indeed the other purchasers of sisal in both New York and Eoudon, have for some time pursued the policy of holding off the markets as much as possible, thus depressing prices and causing sellers to accumulate large stocks, which at last the merchants were forced to sell at practically any price offered.

“During last year in New York the price of sisal was down below 4 cents per pound—this being equal to about £l7 10s per ton — and Loudon prices were correspondingly low. When it 's remembeicd that at the beginning ol 1910 10s was the ruling figure in London, and that the average lor the whole of 1909 was something near £2 B per ton, the extent of the drop will be apparent. Then; of course, the low prices helped to depress the value of Manila hemp and also that of New Zealand, and so the buyers could play one off against the other, as it were.

“Things seem to have gone to such an extent that many growers found themselves at last unable to bold out any longer, and they approached the Mexican Government in the matter. The outcome is the so-called ‘ valorisation scheme,’ and in the absence of definite details I can only give you an outline of the market opinion of this measure, which is known to have been agreed to by the Mexican Government by special Act of Parliament. “The idea seems to be that the Government, with the aid of the largest banks, will finance sellers with regard to their surplus hemp by making advances to them, and thus enabling them to wait for a favourable market, Apparently only sufficient hemp to meet the current demands will be marketed, and all growers are thought to be included in the scheme. A certain minimum selling price—5 cents per pound, New York (£23 ss) have been fixed, and, as a safeguard against overproduction, which these pi ices might otherwise induce, it is believed that some scheme ot restriction of output will be imposed on growers; in fact, the whole scheme would seem to be on the lines ot that of of the Brazilian Government in regard to coffee. “ The amount set aside by the Government for the purpose of financing the scheme is variously thought to be between hall a million and one million pounds sterling, and the expenses of working will be met by a special export duty on sisal hemp. “ Whether buyers found them selves short at the time ot the publication of the scheme—-about the midale of December—is not known, but at any rale the immediate effect was, as you are aware, fur quotations to rise, and

present rates show an advance of £% per ton on those ruling about five weeks ago—-to-day’s prices in New York being 5% cents per pound, equal to £25 15s. to £26 London. “ It remains to be seen whether the arrangement will work successfully, but Mexican planters are said to be hopeful of this result, and contend that sisal prices will remain higher for a considerable time.

“ From this point of view of New Zealand, this result is certainly to be hoped for, since values of Manila are more or less affected by sisal prices, and of course the Manila in turn affects New Zealand quotations. The rise to £22 5s and £2l 10s —today’s prices for good fair and fair respectively—from the and ,£l9 10s ruling two months ago is a welcome spurt, which doubtless New Zealand millers duly appreciate.”

grade was as under ; — Good ComPort. Fine. Fair. Fair. mon. Auckland — 193 502 35 Napier — 107 — — Foxton — 1583 2556 76 Wellington 84 2257 1187 IIO Picton 95 70 — — Dunedin 52 25 15 — Bluff 32 245 31 Niue bales at Foxton and 23 at Wellington were rejected and four bales at Auckland were condemned. TOWThe tow graded was distributed as follows ; 1st 2nd 3rd Port Grade Grade Grade G. Tl. Auckland — 199 78 12 289 Napier — 55 ~ — 55 Foxton l80 760 98 123 1038 Wellington 857 544 125 — 1049 Picton 46 — 9 — 55 Lyttelton 78 78 Waikuku 42 — 9 — 51 Dunedin 14 — — 14 Bluff — 24 83 1 108