NEW ZEALAND HEMP.

Press, Volume XLVI, Issue 7346, 26 June 1889, Page 5

NEW ZEALAND HEMP.

THE RISE IN PRICE. INFORMATION FROM THE AGENT GENERAL. The following correspondence from Messrs Weddel and Co., London, will be read with interest :— [Copy of correspondence between Agent. General for New Zealand and W, Weddel and Co.] 7 Westminster Chambers, S.W., London, 7th May, 1889. Dear Sirs,—l am directed by the AgentGeneral to request you to kindly give your attention, and, if possible, supply him with information as to the cause of the recent rise In the price of New Zealand hemp. The Agent-General is informed by his Government that the effect of this rise in the price of that commodity has been to induce numbers of the settlers in New Zealand to embark largely in its manufacture, and that therefore it Iβ very desirable to ascertain whether the advance in price is likely to be continuous. The Agent-General will therefore be much obliged if you could kindly furnish him with any information that n>ay tend to elucidate the cause ol this rise in price, and also do him the favor of adding your own opinion as to whether the rise is likely to be permanent.—l am, yours faithfully. (Signed) Walter Kennatvay, Secretary Agent-General. To Messrs W. Weddel and Co. To the Agent-General for New Zealand. 16 St. Helens place, E.C., London, 13th May, 1889.

"Dear Sfr,—We have now to acknowledge fully your lavor of 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 ie 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 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 is rather over £60 per ton here, and in the United States the latest quotation is per cwt., equal to £06 per ton. The principal use for hemp in America is lor the manufacture of binding twine for harvesters, bufc we are Informed that now for this purpose they are mixing jute with hemp so as to reduce the cost, and thie 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 out 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 hence had to b» sold ab relatively low prices, and have aleo 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 aoubt that the consumption of hemp is steadily increasing, but high prices are stimulating production, and our own Impression is that before many mouths are over prices will probably show a considerable drop; at the moment the value of well dressed, sound New Zealand hemp is &SI to £38 per ton, but we do not think it is 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. The following statistics show the imports, deliveries aud stocks of New Zealand hemp for the past five years, viz.-:— - ■ - ■■■-■•:' 1888. 18S7. ISSB. 1853. 1884. Tons Tons Tone TouaTon* Imports, Jan.—Dec. rZVA ",£& 4«* sou 1012 De£veSe» do I«i9 701 m 630 1016 say say say Bay Bay Stocks at 31st Dec. 303 45 2a 112 583 Tone Imports. Jaa.-Apri], 1838 .. Deliveries do - 1339 say Stocks at 30th April .. .. 302 —Yours faithfully, „, ■ _ (Signed) W. Weddel AND Co.