THE FUTURE OF HEMP.

Wairarapa Age, Volume XXXII, Issue 9568, 14 August 1909, Page 3

THE FUTURE OF HEMP.

SEVERE COMPETITION. PROSPECTS OF THE INDUSTRY. Tne condition of the hemp market during the jast year has euised raucfi keener anxiety than is usually occusioned by the periodic "slump" to which the unfortunate fibre is liable, "'rites a London correspondent under dare July 2nd, What has been done in the Philippii ea since they passed into America;* hands constitutes a greater menace thpn Manila fibre wa3 ever before capable of, and the position ot' INew Zealand hemp ia now one for serious consideration Dr. Chappie, who is largely interested in the Makerua swamp, I near Shannon, and Mr 1. VV. KayI mond, of Invercargill, who has :' Cfipital invested in Southerj flax- . mills, have been investigating the i position on independent, line ! Dr. Chappie says:—"l irnd a long I and interesting interview with the j head of one of the largtst Manlia I brokers in London. He expressed j the opinion t«a't Manila might rise ! a little, but that for the next few 1 years it would fluctuate between | £lB as a minimum and from £22 ; to £24 as a maximum, keeping, as ja rule between £2O and £22. He j professed his ir.atiility, however, to make any confident prediction. He declared that the consumption of fibre was increasing. He showed me somie German sisal that wss uelling at 1 £2B a ton, It was strong, vfirv, and very white, clean, and unirorm. He spoke in terms of unqualified praise of the uniformity of the New Zealand article, aad j praised the foresight of the uovern■meiit because ot iu introduction of ..(the grading system. In the case of 'Manila five or six different grades would come in the same bale, and manufacturers constantly complained and frequently compared the regular uniformity and trust vorchiness of New Zealand hemp. Our fibre had gained a fine reputation for binder twine and among manufacturers'generally." D-. Chappel has been looking up official figures regarding the cost of , producing Manila, and has concluded I that the present price 111 London will not pruve very satisfactory to Ameri|cm producers. There are. many other highly remunerative ii,dustries ■ connect- 1 ;! with tha soil that are attract)vu in the Philippines—sugar, tobacco, coffee, rice, cocoa, all yield ha.idsoine results and the general Conclusion seems to be that there will he no very extensive increase in the hemp plantation unless the price increases considerably. Mr Raymond has ako gone very minutely into the question and has discusntd it with plantars from all parts, fit* says; ""I have to confess that the Ntw Zealand hemp industry U ccrtanJy meriacwd, when it is realised that manufacturers in many of j th j f ountries have to pay no royalty

lon their green leaf, and that labour can be obtained at from 4d to Is per diem of 10 hoars, two of these men being quite equal to many men who insist on being paid 8s per diem at Mew Zealand mills-. Freight and other charges are also much leas than those our millers are confronted with; there are no graders to clip your 10ton consignments by a point and pa&s it into a lower grade; no army of inspectors to police every interest other than the man providing the wages. The above are weighty factors in determining the positon our industry occupies. On the other hand, u must not be forgotten that owing to impefect machinery a large percentage of the world's fibre supplies is r,he .product of hand dressing. The Philippine is a case in poot. The system there is a most primitive one. In Mexico and India the same system prevails. In Yucatan, Mexico, the industry is in a strong position. Some very large power machines are in active operation, but results are not too satisfactory owing to the waste. Our fibre is a strong favourite with the manufacturers for blending purposed, and I am fully convinced that at a price it can hold its own, buc it cannot under existing conditions. There is no reasonable prospect in meantime of the market advancing to even £2O f.o.b. I have no hesitation in asserting that [during the last five jears very few millers have produced fibre, after allowing for interest and depreciation, under that figure. "It is very evident, therefore," continued Mr Raymond, "that if there is no prospect of an improvement coming from without it must come from within. How can this be accomplished? I am satisfied that royalties should be reduced to at least 3s per ton, that rail, f.o.b. charges, and ocean freights should he reduced to the very minimum. A co-partner system should be introduced in connection with mill hands. The success of the industry is is dependent upon the reasonable and equitable return by the mill hand for the wages paid him that it seems to me .some such basis of employment must be arranged. There is no reason in the world why good fibre cannot be placed f o.b. at £l3 to £l4 by ths miller with reasonably accessible flax areas to draw upon. J f they have to face a price where ( little if any margin exists, after past experiences, they are going to continue shut down. This is a serious question for the Dominion. Three years arje the exports reached £700,000, thenl|nearly 1000 more men were employed than in the freezing industry,. Though a national asset, the utilisation of one of our waste products is fizzling out for want of some combination of forces to rise to the occasion and save the situation."