Wairarapa Age MORNING DAILY. SATURDAY, JANUARY 7, 1911. THE HEMP INDUSTRY.

Wairarapa Age, Volume XXXII, Issue 10131, 7 January 1911, Page 4

Wairarapa Age MORNING DAILY. SATURDAY, JANUARY 7, 1911. THE HEMP INDUSTRY.

Another decline in the piice of hemp in the Home market has proved disastrous to the industry in New Zealand, and, unless there is a revival in prices, those mills in the Dominion which have to pay'royalties for their flax will be compelled to close down. In the early part of the season the figures were equal to £l9 for "fan:," and £2l 15s for "good . fair." . At .these prices several of the.millers have made serious losses during' the past few months. An unfortunate feature of these prices, says the New. Zealand Herald, is that they have synchronised with an improvement in the quality of the hemp coming into Auckland. Ttij' , the* early part of the,season millers could hold oft" closing contracts' at current rates, but now fair stocks:/' are on hand, and this has. made the position more acute. The reason" given by merchants for the low prices offering for hemp is that there is:,'; over-production, especially in Manila. ;In 1905 the output of fibre froija Manila was -904,000 bates. It has/ steadily ' risen' until 'during the - past year".it. must have been about bales., In" addition' to the large output of Manila ', New Zea-: land hemp lias suffered from the

competition of sisal, a Mexican fibre which is being placed on the London market in increasing quantities. Merchants appear to be pessimistic as to the immediate prospect of the hemp industry in New Zealand. The first thing that would bring better prices would be a reduction in the output from Manila, and there is no reason to anticipate this. The prospects would be improved by the introduction of labour-saving machinery that would lower the cost of production in New Zealand, and earnest attention is being given by to this aspect. It is suggested that a capable man should be sent to Manila to study the conditions there, and report for the benefit of the New Zealand manufacturer, who is mucn in the dark as to what is the lowest price at which profitable production in the Philippines is possible.