THE HEMP MARKET

Manawatu Herald, Volume XLIII, Issue 2294, 25 June 1921, Page 2

THE HEMP MARKET

N RELATION TO THE CORDAGE

TRADE,

SURPLUS OF SISAL AND"

MANILA

The following letter, received by a local miller from a New Zealand merchant, under date June 20th, will be read with interest by local millers, as indicating the present poor demand for N.Z. hemp: ’ “Reports from the United Kingdom show that the cordage trade is in a depressed state, very little demand being experienced for ropes and cordage.” “It was the opinion expressed by cable a fortnight or so ago by one of our oldest friends in London that we might expect a succession of strikes right through this Vear, until the wages generally were much reduced in all trades. “We find that the coal strike is still unsettled, after attempts being made to settle it that were looked upon as very likely to bring about a .settlement. The scarcity and dearness of coal is very detrimental to manufacturing interests.

“Manila fibre is quoted lower each week, and buyers of New Zealand have reduced their limits given us during the first twelve days of this month.

“Reports from the U.S.A. to hand by last mail give interesting information as to the outlook of the cordage trade there, from a manufacturers’ point of view:—‘For several months now, Mexican sisal has been the best value of any fibre in the world for binder twine, and as the supply has been plentiful, we could hardly afford to use anything else in 500 twine, although we do require some longer fibres for the 'onger lengths of twine, of which we aiake considerable quantities. As vou know, the old Comisiqn Regu-

adorn finally went out of existence, ind their holdings were acquired by i group of bankers, known as the Srie Corporation. They have been vorking for the last twelve months o make some sort of a deal so that .Ley might gel out whole with reqiecl lo the money they advanced to

the old Reguladora, and we are reiably informed that they still hold : i little over 400,000 bales of this old -lock, which stands them at some;iiing over se. per pound (£2B- per (on) in this country. Fresh sisal •as been selling for some months at ic to 6:]c (£33 10s). and most manufacturers prefer to pay the uglier price and get the new stock.

Aithin the past month some kind if an arrangement Ims been made

>y the Erie Corporation with the Mexican Government so that the mice lias now advanced to 71c Gulf

’orts, and 7c (£43 10s) New York,

ind we believe they hope to put pries still higher. In our opinion they

>rc doomed to failure, as this puts heir fibre above the parity of some ■ompeling fibres, and practically everything required for our 1921

larvest has already been bought, su ,ve cannot see where any demand ran develop for some time. Altlirngli the production of Yucatan dsal has decreased considerably

luring the last two or three years, ■till what there is, plus the old Eeruladora stock, makes a surplus above requirements, and this is always a hear argument, and while ihe old stock particularly is in exstence it is a menace over the mar-

ket. If the hanks should throw this Pock over now, it may knock the bottom out of the price, and oven break Yucatan, which would be a

■disaster and not to the advantage »f consumers in this country in the mug run. You, of course, understancLfully the conditions regarding foreign credits and the difliculty of doing an export business. As a inatter of fact, we are selling practically nothing abroad now, and even if we could, at a price which would enable us to get a new dollar

for an old one, we would hesitate .at account of the credits. The loss of this business also curtails our

fibre requirements and, all in all, we are sailing as close-hauled as posable, and trying to conduct our

business on a very conservative basis. General business in this country has been very dull, and the demand for rope exceptionally small. The aggregate of our sales for the first nine months of our fiscal year, which commences on the first of August, is something less than 50 per cent, of the corresponding period a year ago, and this is the reason why there is no more demand for Manila fibre in this country. The Filippinos seem to feel lhiß. we are combined to discriminate'against them, and, in fact, arc very much disturbed about it, but it is simply a natural development of the situation, and nothing that can be avoided. The only consolation we see just now is that every day that passes brings us so much nearer to better times, which cannot he postponed indefinitely. IVc shall watch the fibre situation very closely, and if the Eric Corporation shows a disposition to keep sisal where it is now, as compared with

other fibres, or put it higher, there would appear to be good reason to believe that opr requirements of New Zealand may be larger for 1922 twine season than they have been this year.’ ”