THE HEMP MARKET.

Manawatu Herald, Volume XXXVIII, Issue 1495, 11 January 1916, Page 2

THE HEMP MARKET.

On the outbreak o£ war there was a slump in the hemp market, and the price dropped to per ton for good fair. At that time the outlook for the industry was anything but bright. In order to meet anticipated distress caused to those engaged in the industry who would be without employment, a local fund was inaugurated called the Helping Hand Fund. The price just prior to the war was £22 1 os for good fair. From January of last year, however, there has been a rising market, until to-day good fair has reached ,£32 10s (we quote New Zealand prices). Since the war there has been an increase of £2 per ton on freights and other charges. Naturally, one remarks the boom prices are good for the miller. Are they ? Investigation proves that the millers, practically without exception, entered into contracts for forward delivery at a time before the abnormal demand set in, with the result that some of them, who mill on a royalty basis fixed on the Home quotations, have fallen in—and fallen in badly. The profits will drop into the lap of the royalty man and merchant. Millers are worse off now than if the market had remained at £26 per ton. “Serve them right,” you say, “for entering into long period contracts and gambling on the market!” Yes, that’s alright, but owing to the mistrust among flaxmillers—let us speak plainly, they don’t trust each other —they are compelled to act on their own initiative, whereas if they were properly organised and controlled their output from the mill to the consumer on a cooperative basis —as is done in connection with butter, cheese, and frozen meat—they would eliminate the machinations ot outside and Inside speculators, and call to their

support necessary legislation equitable to all concerned, i The industry awaits a strong man to formulate a policy that will safeguard it against the existing drawbacks.