THE FLAX INDUSTRY.

Te Aroha News, Volume VI, Issue 371, 25 May 1889, Page 2

THE FLAX INDUSTRY.

Onio of thfi most important and interesting questions affecting this Colony just now i.s comprised in the problem : — Will New Zealand flax keep nt its present price of £36 a ton ? In the Wellington province there are about fifty flaxmills hard at work, and as each mill employs on an average 25 men, it follows that some 1300 men are engaged in this industry, and that if flux prices collapsed those 1300 handy would be thrown out of employment and glut seriously the labour market. Not only are the numerous work people and the capitalists interested, but so >ire the shipping companies which ju^t no.v are coining money over carrying flax. To each and all of these classes, and to flaxowners as well, the question is of deep importance. The answer is difficult to seek. If one inquires in the best-in-formed mercantile circles in Wellington, Auckland, Dunedin or Christchurch, one gathers nothing certain for or against. One exporter says " Flax is high because there is a big American corner in sisal or Mexican hemp." Another pooh-poohs this theory, and says emphatically there has been a disease which attacked and injured the Mexican hemp plant ; there is a large shortage in the crop, and prices have run up. A third sneera at >>o 2*B ignorance, and emphatically asserts that "Prices have risen because the Manilla crop lias failed " — which it has not. A fourth learnedly declares it is due to a general world-wide improvement in trade with a univeisal upward movement of prices A fifth thinks that Russian hemp 'is in short supply. A sixth is confident that New Zealand flax will come into universal use as binder twine for reapers and bindeis, and that consequently there is a new demand in the United States alone for 32,000 tons of phormium ten.ix fibie. A seventh asciibes the rise in price to the fact that fl'tx is being moie finally subdivided by improved machinery, and that consequently it is now used for various stuffs with a mixture of silk for fine linen goods. Amid so ninny councillors and such diverse counsel it is difficult to find where the truth really lies. It is probable that each tells a part of the truth, but not all ; that the rise in fl.x is due not to any one single cause ; that the price has gone up because all of these causes have come into play. No man can give, perhaps, an absolutely certain answer to the question ; but careful consideration must leid to a beliet that flax will maintain a high price in London for severel months, perhaps for several years. Everything points that way, an-J nothing appear* against it. Flax has gone up from £22 a ton to £06, because (1) there is an mc easad demand ; and (2) also, because its rivals are more scarcely supplied of late. To consider the latter first, the chief rivals of New Zealand flax are manilla hemp and sisal. If either of these is in short crop and goes up in price, then manufacturers eagerly seek flax as a substitute. Now as regards Manilla, there is no evidence to show, as some authoiities assert, that there has been a failure in the crop ; but there is evidence to show that the Philippine islanders are slow to develop the trade ; and, moreover, the manilla cannot be produced in ononnous quantities to me°t a sudden demand. It is not like wheat or potatoes;, which ciiii be sown and ciopped in a few month* vrheienone i»rew befoie. The manilla plant tikes a lony; while to grow, and though short leaves might be cut and thereby the crop somewhat increased, there cannot in the next two years be an}' large increased output of manilla. From this rival we probably need not for two or three years fear any extra severe competition. Turning next to New Zealand flax's other great rival, hennequen, or sisal, or Mexican hemp, we find that it is chiefly produced in that quuint land of 'indent deserte.l cities and magnificent ruins, Yucatan. The agave, from which the fibre is extracted, grows wild, like flax, and grows best near tho sea, but is also found on hill sides, as is the phormium tenax. Yucatan suffers terribly from insect pest, anil locusts especially commit great rtvfiues on all green crops excepting this paiticnlar plant. As the Yucataneso therefore caanot grow grain crops they cultivate fl ix, and with its pro cpeds buy themselves food. The plant grows on tho poorest soils and takep about eiiiht years to come to full maturity ; but if the plant is judiciously pruned the new leaves will be ready in about thieu years. As the sisal trade h»is been steady for years, and there are no large stores upon which to draw, the annual output cannot be greatly increased. Thus it is clear that New Zealand flax need not fear any heavy new output of either of its rivals for at least three > ears. Fm ther, in October last a devastating tornado blew powerfully against the sis il plant and crushed the cells near the root of each leaf, the consequence being that th^ lenves were very hug -ly destroy ed,and the American Consul lej or tod that one quarter of: the whole number of si-<al hemp plant-* were u.-eies*. We have learnt from olhei sources that the sisal crop had fai ed towaid the end of last year — this in the explanation. A rumour is cm rent in Wellington that the wisal i-rop is again hhoit this your. The American Consul supplies the reason. As the agav« take.s from three to eight years to grow its leaves, and as one quarter of the leaves are des-troyed, it is clear that sisal hemp will be in short crop for at least three years, and accounts from the date of the tornado, tor the new rumour as to this year's sisal oulput, and would lead to the belief that next year also it would bd below the line. In New Zealand for the last 15 years flax has been growing uudistui bed, and is in fine supply, because uncut; but five jears hence, when those whb*"§&p* ply the mills have cut down the growth oft years, and the yearly output has settled

down to a steady rate, it will be quite impossible to increase the product suddenly. The dwellers in the Philippines and the Yucatanese cannot enormously increase their output at a moment's notice to meet a sudden demand. For these reasons it seoms to'us highly prohahle that the present high prices for manilla flax, and sisal must be maintained. The other reasons why the price of flax is so high are' the new uses to which it i», put and ibo strengthened demand on old / lines. As illustrating other new uses to which flax has been applied, we may mention the expqrt to Spain o£ 50 tons in one lot to tie up oranges. This opens up a newdemand, It has also baerr ascertained that Novv Zealand flax has been bought and shipped to France and to Italy for tying up the vines, and that until the price goes higher there will be u constant demand" for it for this purpose. In England, also,, flux hiia recently been' put to new n-ses — such as backing for certain kitidrf of curpets; and its fibres having Leea recently subdivided by new machinery so finely asto be used in making delicate Fabrics, heneagain there is increased demand , But the most important use oi all rs that as binder twine. Sisal and ni.inilla hempare not satisfactory, and are too costlySisal also does not stand the machinery hoist and strain, but New Zealand flax acts perfectly. It is used now largely ia this country, and experts predict its almost universal employment presently in theUnited States, which at present require 32,000 tons a year for this purpose To> this will presently be added a denund for it on behalf of Canada's vast wheat areas, the laigest in all the world. Apparently confirming this statement is the fact that much of the flax shipped away from New Zealand is to fill American orders, Tho flax that caught fire on board the Mariposu was going to California. If there is as much in this reaper and binder twine demand as some people think, then rosy indeed seems the outlook for flaxmill owners, and the industry is assured for many years. Added to the foregoing" reas-ons for the rise in price are others also of a more sound and stable character. At Home and in. the United States there is a great revival of all trades ; a " boom " hasset in, and all round there is an upwnrd movement of prices r in which movement flax shares. Though steel wire has largely replaced ropes for ships' standing rigging,, yet all vessels, even steamers, require more or leas rope for running rigging, and the recent activity in shipping, the putting into commission and re-rigging of olci hulks, and the ne t v gear for new vesselshas absorbed much rope. And as the shipping yards are filled with orders, twelve and eighteen mouths ahead, thi-s-demand will nut slacken for that time. English papers int'oitns us that the rop& factories have no rope on hand, that stocks are almost bare, and hence, though reluctant to pay high prices, the manijractiirers. have been compelled to buy largely, nmJ as oidersare coining in tluy mu-<t go out to buy tho raw material. For tjie past two or three months croakers have cried out, " There will be a collapse in June."" We are half way through May, and there; is no sign of a collapse yet; no now thecroaker says, " Wait till August." Piobubly he will then bay, '• Wail til noxt year." To sum up, an impartial, careful sludy of the leasons which have led to a rise in price must lead .strongly to the conclusion thai fl.ix will kne { ) nt a hi^li price i't.r another t\\ el\ c months at least . Of euurf-o we do not mean to say it will kcip at £3G; must certainly it u ill rise ami tall. Tlio niiinufactuieis wanting flax will try to '' bear" prices. Shrewd Yankees, knowing there is a shortage in sisal have formed a corner, and are "bulling" it. We know sit>al is, and must be bhort, and the Manilla output no larger than usual. Flax is in demand for many new purposep, and is employed in many new ways. Its rival*, sisal and manilla, aie high in price, and must keep up. Manufacturers' made-up goods are largely sold out, and new orders are large and frequent. Though flax inny be the sport of bulls and bears ; though, prices maj' go still higher, and may be dupiessed much below their present level, it seems- likely that a high average will be maintained, and that, for the next twelve months shippers of New Zealand flix will receive mostremuneiative returns. — From N.Z. Mail, May 17tli.

The "corner" in sisal which has caused an enoimouB demand for New Zealand flax in America is referred to as follows by the " St. Louis Republic ": — " A gigantic trust, which %ill probably cost the people of America about 20,000,000d015.. this year, bas been formed in tho raw . materials from which binders' twine, ropoand coidage are manufactured. It is u combination of 32 Eastern manufacturers of binders' twine for the purpose of cornering and controlling the raw materials out of which twine, roping and cordage am made. They have bought up all the sisal fibre in the world, and all the manilia iibro obtainable, the two fibres being the raw material from which these articles are made. Manilla fibre is grown only in the Philippine Islands, and sisal fibre only in Yucatan, and in 1 oi\G or two other portions of Mexico. The t''ust has a capital of from 15,000.000d015. to 20,000,000d015.,and sofar has successfully carried out its aimu. Ropes and cordage have advanced in tho past three months about 4 cents per pound,, and are steadily advancing. Iso maw knows to what price the trust will raise them. During the year 1889 it has the power in its own hands, the country will be squeezed for several millions on rope and cordage. All that the country can do, for the present at least, is to dance to the music of theNatioiiul Cordage Company, or go without rope, cordage and twine."