THE KAURI GUM INDUSTRY.

Auckland Star, Volume XIX, Issue 114, 15 May 1888, Page 2

THE KAURI GUM INDUSTRY.

EFFECT OF THE FALL IN PRICES

LOSS OF £105,000 A-YEAR TO

AUCKLAND.

We have received tho following interesting letters, by practical men, on tho kauri gum industry, which are worthy- of eorious attention:

Swanson, May 10. Sir,—Your article on "The Gum Trade," May 7th, and your lcador, " Export of Kauri Gum," May 9th, have evoked a lot of interest on the various gumfields, and nightly provoke discussion in the usual meeting houses — the stores. But the goneral opinion is that tho loss by the export of unsorted gum is a mere trifle compared with what Auckland is losing through the sacrifice of this valuable product at a ruinously low price. You estimato that 5 per cent, of tho exported gum is sent away in the rough. Five per cent, is 350 tons. Say the difference between properly sorted gum and rough gum means a loss of £3 per ton to Auckland labour, and it tots up to £1,050—a respectable figure, I admit—but a mere flea - bite compared with the loss now being experienced by Auckland consequent on tho fall in price. About this time last year, or perhaps a little later, the digger in this locality received 45s per cwt. for his gum ; now if he can get 30s he is well off, and the opinion is that the lowest price has not yet been touched. Mark the difl'erence: 7,000 tons at 45s the cwt, £315,000; 7,000 tons at 30s per cwt, £210,000 ; a clear loss to Auckland of £105,000 per annum, just 100 times as much as tho loss experienced by the non-sorting. The sorters' loss is too insignificant to bo compared to the diggers' direct loss, and the whole of Auckland's indirect loss. Fancy making the " Yank " a present of £105,000 yearly, for that is really what it is tantamount to.

There is, again, a danger threateningfrom these low prices that is really worth providing against. Out of the ten thousand diggers, fully three thousand cannot make tucker at the present prices ; it is therefore only a question of time when these unfortunates shall have exhausted their credit, aod drifted back into Auckland to be a burden on the Charitable Aid Board. And, Mr Editor, there is no gammon in this; it is quite within measureable distance. In fact, 1 heard the question seriously asked and discussed whether the Auckland Charitable Aid Board gave district relief, as it was more than probable some such assistance would have to bo asked for to tide some of the men over until the gum rose in value. And how will Auckland provide extra relief with £105,000 less annually to do it with ?

What is there to prevent the Government stepping in in this difficulty, and buying surplus stocks, maintaining the price of gum at 40s, or even 45e, per cwt., by expressing willingness to take over gum whenever the market price fell to the figure agreed upon? Government could not lose by so doing, but would most assuredly gain. It would always have full security for the money advanced to the industry, and could never be accusod'of interfering with private enterprise. Such a course would benefit everyone, and give the trade the stability it has always lacked. As for taxing gum in any way, well —the digger will naturally have to pay the tax, and the digger might as well give up trying to live at onoe, for a tax of 3s per cwt. means living on bread and cheese, and he ■will dig precious little gum on that diet.— i am, etc., Gumdig«kk.

Papakura Flab, May 12fcb. Sik, —May I ask you bo publish through bhe columns of your widely-spread paper bhe following letter relative bo bhe gum industry and the effects of its present depressed state on bhose employed at ib ? I need scarcely sbate thabthedepositsof gum hidden beneath bhe surface can never be replaced ; that those deposits, through the number now and hitherto employed, are rapidly drawing' to a close. The gum merchants can have but little knowledge of what remains, or they would not be so ready to cut down the prices or so indifferent about buying ; neither can the number of small storekeepers. The only person who can form any reliable opinion is the old, shrewd gumdigger. Therefore, having worked for over 23 years on and off, I flabter myself on being capable of making a fair judgment. At present price one year will be about its limit, then up it must go to its highest price, and even at that a space of five or six years will limit the industry. The surface gum is almost gone, the root gum pretty nearly worked out, except in large swamps, which cannot be worked without drainage, such as those in the Waikato. This flab may give employment-for some time yet, but not at present prices. Men have nearly all left; we are only offered by storekeepers here 25s per cwt., they requiring 3s per cwt. for cartage. Men can only average 401bs per week, while bread is 3£d per 2lb loaf, and

other prices in accordance Surely capital must be very depressed if it cannot take advantage of present prices, and put a little stir in the market before things come to a worse state, and poverty-stneken labour makes it " shell out" in another manner.— Yours, etc., r g IBMINGHAM(