THE HEMP INDUSTRY.

Manawatu Herald, Volume XXXVI, Issue 1296, 12 September 1914, Page 3

THE HEMP INDUSTRY.

EFFECTS OF THE WAR ON PRICES. Practically all the flax mills outside the Wellington-Manawatu districts are closed, and in that area not all the mills are running, says Thursday’s Wellington Post. A week ago the demand from London and elsewhere warranted a price to millers of xos per ton for good fair grade and £lB per ton for high point fair grade. Today offers to sell on a basis (to millers) of ,£xß xos for good fair and £l7 5s for high point fair failed to elicit any replies from London. These prices can, therefore, only be regarded as nominal. Work is being done only on part time at some of the mills now manufacturing, and they are keeping on in the hope of an expected improvement of the market. It is not yet clear that the fall in prices is likely to continue for any length of time, but it all depends upon an early improvement in the general tone whether the mills will continue, many,of them not having sold the flax already in the paddocks. The war risks for outwards was cabled from London on Monday as at 8 per cent., which is equivalent to a burden of £1 per ton on flax. It is not clear whether this rate applies to cargo from New -Zealand. The surcharge of 25 per ■cent, on current freight rates is also a handicap upon flax, the rate Homewards for which is 5s per ton. That rate is for shipment up to October, when the slightly higher summer rates are usually fixed. It is understood that the summer rate on flax would be £4. per ton this, season. With increased charges for freights, insurance and exchange and a weak and falling market, the prospects for the New Zealand flaxmiller are not very bright at the moment.