The Wairarapa Daily TUESDAY, MARCH 4, 1890. THE FLAX TRADE.

Wairarapa Daily Times, Volume XI, Issue 3450, 4 March 1890, Page 2

The Wairarapa Daily TUESDAY, MARCH 4, 1890. THE FLAX TRADE.

It is very much to be regretted that ' the.flax trade is now sustaining a t re'versb by a-murked fall in prices for ] dressed fib('o/iu the- Jj'ondon market. ( b'o many hands in this and other t districts of the Colony aro'dependeut t on this industry, so many other trades' aro indirectly istimulated-by. 1 its prjsperity, that any material or * permanent, I ' depression is a serious j calamity, ! During the past year the j industry has been, extremely profi- ( table, and high prices have had the i inevitable result- : of-increasing' the : output till it has- reached a point i when it has glutted the market. It ' is in tho nature of large profits that ] tlicy should bo shortlived, but we had hoped that, fhe high rotes in this instance would have been, maintained'< for some lime longer. It is probable that if no; further Idecline in values takes place, flax millers will still be able to produce at a small profit. They have still one satisfaction in knowing that in very many instances tho higher prices which recently' prevailed have enabled them to.pro; vidd for tho initial cost- of their mills, and that nowlheyare in a stronger position to cope with a falling market than they were a year ago. This perhaps is a poor consolation, but it is at least a reasonable ouo' which ought to reconcilo millers to face the poriod of depression which they now have to encounter, and to persevere in th°ir enterprise until ilie inevitable re-action sets in and prices again .advance. There can be but little doubt that in tho long run the demand for flax will overtake the supply, and that the abnormal quantities recently placed 'in the market cannot bo kept up foivany long period,, Max has come into such general, use, and for such a multitude of purposes, that it would be absurd to . imagine that, an ordinary demand for it js likely to cease. Probably a far greater quantity' of it will be .worked ■ up during tho current year than was ' used in the past one, and even the 1 fall in prices will have the effect of ] increasing the rate of consumption. ,' With flax at its present low values ' there is every inducement for rijan.u----i factors to use it freely, and it ought. riot to .take them.long to absorb the ' surplus stock which is now glutting 1 the home market; Eorthe.present; j no doubt, the flax miller's profits, . though not entirely swept away, are , cut down to less than half .of .what I they formerly amounted to; but oven K with this reduction they will, we '■ .trust, ; be able'to'.make a'fair.'living. | pi)t.of their enterprise.niore especially thosfl who have experienced tho full . benefit'of the good times',' It is i somewhat discouraging for the Coir , ony, at a period when it needs full '' prices for produce, to have to put up with a fall m values in so important I; aii industry, but we sincerely trust ■; .that those engaged iii it will not lose heart, and will still have confidence in the future compensating them for! • the temporary check, to whichithey now haVe'to submit.- Y : ; ■ ■)>'. ; j