THE HEMP MARKET.

Manawatu Herald, Volume XXXVII, Issue 1358, 9 February 1915, Page 3

THE HEMP MARKET.

BRIGHTER PROSPECTS,

ROYALTY & THE ORIGINAL CONTRACTS. The market for New Zealand hemp, which on the outbreak of war slumped badly, prices falling about six pounds per ton in less than a month, has hardened very considerably during the last few weeks, and the prices now being offered for spot, and also for forward delivery, are equal to those ruling prior to the outbreak of hostilities in Europe, and as a consequence, practically the whole of the mills in this district are again in lull swing. There is now a good inquiry for our hemp by buyers at a price which places milling on a good payable basis, but unfortunately a number ot millers are unable to take advantage of the good prices now being offered on account of having sold their output for some time ahead at the lower prices ruling a month or so back. Some of these millers are faced with a very serious loss, as the royalty on the green leaf used by them is based on the High Commissioner’s report of the prices ruling in England for good fair in the first week of each month. When the industry was threatened, the royalty men generally made a concession to the millers in order that hemp production could go on, and this worked very well, and is still iu operation in some cases. Ou the other hand, there are owners ot green leaf who have gone back to the conditions as to royalty ruling before the outbreak of war, and the millers drawing their supplies of green leaf from these sources are forced to pay for their blade ou a basis several pounds in advance ot the prices at which their hemp has been sold, in some cases for several months ahead. Whilst it is generally recognised that flaxmilling, under normal conditions, offers a profit at least equal to that ot most commercial undertakings, millers placed as above are in a very unenviable position, and every increase in the price ot hemp on the London market under such conditions is a very serious matter to them. On the top of all this they have also to face the application by the Employees’ Union tor an increase in wages, which comes before the Arbitration Court some time during the current month.