THE HEMP INDUSTRY.

Manawatu Herald, Volume XXXIV, Issue 1005, 5 October 1912, Page 4

THE HEMP INDUSTRY.

bright prospects.

Auckland, October 2.

The prospects in regard to flax are apparently bright. From enquiries made by a Herald representative it was ascertained that quotations began to rise in the Home markets two months ago. The rise continued for a mouth, then steadied down when it was believed that the level had been reached, but another quick rise has been experienced within the past month, prices to-day averaging 5s for “ good fair.” This rise can be better appreciated when it is noted that prices for “ good fair ” in April worked out at ,£l7 10s. The first cause of the rise was the circulation of a rumour from Manila to the effect that the severe drought which was experienced recently had damaged the plants to such an extent that they anticipated a shortage of Manila in the near future, but so far there has beeu no apparent shortage in the Manila output. In the opinion of a leading merchant the demand has not entirely arisen from genuine manufacturing sources, but has been caused by speculators demands. While it suits them to keep up prices they will do so, and so force the manufacturers to pay. Still, in his opinion, the rise has been, and will be, beneficial to New Zealand, causing many mills to re-open. The only trouble which lies ahead is the shortage of labour to keep these mills at full pressure. An illustration of the previous fall in prices is afforded b\ the fact that in 1907-8 the exportation of flax went down from 25,471 tons, valued at .£686,597, to 14,196 tons, valued at .£310,364 in the following year, and the previous six years were akin to that of 1908. The prices continued to drop down till 1912, demands and prices being very indifferent. During the present year 18,094 tons, valued at .£310,884, have been exported. The tall in values is therefore, apparent, but the present boom is believed by another shrewd business man to be due to a desire to meet the genuine demands of the future. All the millers are accordingly being advised to sell at the present prices, which assures them of a good profit.