THE KAURI GUM INDUSTRY. EFFECT OF THE FALL IN PRICES.

Te Aroha News, Volume V, Issue 265, 19 May 1888, Page 3

THE KAURI GUM INDUSTRY. EFFECT OF THE FALL IN PRICES.

Wl ("Star '') have received the following letters, by practical men, on the kauri gum industiy, which arc worthy of serious attention : Swanson, May 10. Sik,— Your article on "The Gum Trade,' May 7th, and your leader, " Export of Kauri Uum," May 9oh, have evoked a lot of interest on the various gumfields, and nightly ]>rovoke discussion in the usual meeting houses — the stores. But the general opinion is that the loss by the export of unsorled gum is a mere trifle compared with what Auckland is losing through the sacrifice of this valuable product at a ruinously low price. You estimate that 5 per cent, of the exported gum is sent away m the rough. Five per cent, is 350 tons. Say the difference between properly sorted gum and rough gum means a loss of £3 per ion to Auckland labour, and it tots up to t'1, 050 —a respectable figure, I admit— bub a mere flea - bite compared with the lo^-s now being experienced by Auckland consequent on the fall in price. About this time last year, or perhaps a little later, the digger in this locality received 45s per cwt. tor his gum ; now if he can pet 30& he is well off, and the opinion is that the lowest price has not vet been touched. Mark the difference: 7,000 tons at 45s the cwt, £315,000; 7,000 tons al 30s per cwt, C 210.000 ; a clear loss to Auckland of £105,000 per annum, just 100 timcb a* much as the loo* experienced by the non-sorting. The sorters' loss is too ii'wgnilicant to bj compared to the diggers' tUiecb lo&s, and the whole of Auckland's indirect loss. Fancy making the " Yank " a lirej-cnb of 1105,000 yearly, for that is really what it is tantamount to. There is, again, a danger threateningfrom thchc low prices that is really worth providing ai'ain.st. Out of tho ten thousand dipnoi-, fully three thousand cannot make tucker at the present prices ; it is therefore only a question of time when these unforl'unales shall have exhausted their credit, aiid diifted back into Auckland to be a burden on the Charitable Aid Board. And, Mr Editor, there is no gammon in this; it is quite within moasureable distance. In facfc, 1 heard the question seriously asked and dis-cutf-cd whether the Auckland Charitable Aid Hoard gave district relief, as it was more than probable some such assistance would have to be atked for to tide some of the men over until the gum rose in value. And how will Auckland provide extra relief with £105,000 le-s annually to do it with ? What is there to prevent the Government stepping in in this difficulty, and buying sui plus" stocks, maintaining the price ot gum at 40s, or even 455, per cwt.. by ex-preu-ing willingness to takeover gum whenever the market price fell to the figure agreed upon? Government could not lose by so doin£, but would most assuredly gain. It would always have full security for the money ad\ anced to the industry, and could never" be accuscd^of interfering with private enterprise. Such a course would benefit everyone, and give the trade the stability it han always lacked. A.s for taxing gum in any way, well— the digger will naturally have to pay the tax, anT the digger might as well give up trying to live at onoe, tor a tax of 3s per cwt. means living on bread, and cheese, and he will di°" precious little gum on that diet. — I am, etc., Gumdigger.

Papakura Flat, May 12th. I ask you to publish through the columns of your widely-spread paper the following letter relative to the gum industry and the effects of its present depressed state on those employed at it ? 1 need scarcely state thatthedepositsofgumhidden beneath the burface can never be replaced ; that those deposits, through the number now and hitherto employed, are rapidly drawing to a close. The gum merchants can have but little knowledge of what remains, or they would not be &o ready to cut down the prices or so indifferent about buying ; neither can the number of small storekeepers. The only person who can form any reliable opinion is the old, shrewd gumdio-ger. Therefore, having worked for. over 23 years on and oil", I flatter myself on, being capable of making a fair judgment. At present price one year will be about its limit, then up it must go to its highest price, and even at that a space of five or six years will limit the industry. The surface gum is almost gone, the root gum pretty nearly worked out, except in large swamps, which cannot be worked without drainage, such as those in the Waikato. This Hat may givo employment for some time yet, but not ab present prices. Men have nearly all left ; we aro only offered by storekeepers here 25s per cwt., they requiring 3s per cwt. for cartage. Men can only average 401bs per week, while bread is 3^d per 21b loaf, and other priebs in accordance. Surely capitalmust be very depressed if it cannot take ad--vantage of present prices, and put a little stir in the market before things come to aworse state, and poverty-stricken labour makes it " shell out" in another manner.— ouit,, cc., r Birmingham,