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I had noticed in recent files that the sudden and remarkable rise in price was supposed in New Zealand to have been caused by some secret as to the uses to which it could be put in trade ; but there does not seem to be any foundation for that conjecture. The rise has taken place under one of the curious fluctuations which happen now and then in so many articles of commerce, and which baffle the keenest of the crowd of observers who are always on the watch in every centre of mercantile activity for chances of profit. The market for Manila hemp has not only been in a very excited condition lately, but is likely to continue so for a time. One of the trade circulars issued only a few days ago referred to it in these terms: " There has been an extraordinary change during the last fortnight; the advance has been £10 per ton, and a fair extent of business has been done at an advance of fully £8 per ton of fair current quality over prices at which very few would entertain offers made only two or three weeks ago." As the suddenness and extent of this advance has been caused by speculation in the United States, it will probably droop soon. But there is not any doubt that the consumption of all manufactures of hemp is increasing too largely everywhere not to press more heavily than was supposed only the other day on the known sources of supply; and, although I hesitate to express an opinion of my own on matters of trade, I have for a long time past been certain, as a constant student of statistical questions, that in both hempen and woollen products the demand of the world is so fast overtaking the ordinary production that a cycle of comparatively high prices in likely to be seen. The increased demand for hemp will, of course, stimulate new sources of supply, and bring down the market rate of to-day; but the Phormium tenax was always sure to find a strong place some day in the hempen trade, and it was only a question of time when it should do so. That place is now assured, if only the growers will take pains in the preparation of the hemp for the English and American markets. You will find this condition insisted upon in the letters I enclose, and nothing is more certain than that the growers in the colony have a reasonably profitable time before them if they will accept this condition, and send Home only properly-dressed hemp. . -1 have, &c, The Hon. the Colonial Secretary, Wellington. P. D. Bell.

Enclosure 1 in No. 4. Messrs. Weddel and Co. to the Agent-General. Dear Sic,— 16, St. Helen's Place, London, E.C., 13th May, 1889. We have now to acknowledge more fully your favour of the 7th instant. We have compared notes with the leading importers of the various hemps, with brokers and with manufacturers, and our opinion is that the market is at present at a dangerously high level, upon which it would not be safe to base calculations. The principal cause of the rise in New Zealand hemp is the heavy advance which has taken place in Manila. A New York company has been competing with a Boston company for Manila and Sisal hemp, and this has been the chief cause of the advance, the price of Manila having been driven up to rather over £60 per ton here, and in the United States the latest quotation is $16Jper hundredweight = £66 per ton. The principal use for hemp in America is for the manufacture of binding-twine for harvesters; but we are informed that now for this purpose they are mixing jute with hemp, so as to reduce the cost, and this will also tend to reduce the consumption of hemp. Cholera is at present epidemic in Manila, and this tends to reduce supplies from that quarter for the time being. High prices are stimulating supplies from various quarters of the world; and in India especially they are making efforts to increase the output, and large quantities of machinery have been sent there lately to improve the dressing of hemp. Consignments of New Zealand hemp have in recent years come forward very much better dressed than formerly, and manufacturers both in this country and in America who previously would not touch it have now been induced to use it; and hence, to a certain extent, the increased demand which has set in. Within the past few months, however, several shipments have come forward carelessly dressed, and have had to be sold at relatively low prices, and have also helped to damage the name of shipments from the colony. We cannot too strongly impress upon shippers the great desirability of keeping up the standard of quality. There is no doubt that the consumption of hemp is steadily increasing; but high prices are stimulating supplies, and our own impression is that before many months are over prices will probably show a considerable drop. At this moment the value of well-dressed sound New Zealand hemp is £37 and £38 per ton, but we do not think it safe for shippers to calculate on a higher basis than, say, £25 per ton, at which we fancy it would still leave them a very fair return. Enclosed we hand you a diagram, published in New York, showing the fluctuations in Manila and Sisal hemp from the year 1860 to 1886; the prices are given in dollars per hundredweight. Kindly return this after inspection as we have borrowed it from a Manila firm. Yours, &0., The Agent-General for New Zealand, 7, Westminster Chambers. Weddel and Co.

Enclosure 2 in No. 4. Messrs. Weddel and Co. to the Agent-Genebal. Dear Sic,— 16, St. Helen's Place, London, E.G., 16th May, 1889. Supplementary to oift letter of the 13th instant we now beg to hand you statistics showing the imports, deliveries, and stock of New Zealand hemp for the first five years ending the 31st Decembar in each year. Yours faithfully, The Agent-General for New Zealand. W. Weddel and Co.

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