PRICE OF NEWS PAPER.

Press, Volume LII, Issue 15657, 1 August 1916, Page 3

PRICE OF NEWS PAPER.

THE RECENT EISE.

In an article on the steady rise in the price of news paper, a London Trade journal for May says:— Notwithstanding all the precautions taken by manufacturers and by consum-

ers to prevent the unnecessary consumption of paper and conserve €tocks of raw materials, the demand still continues to be greater than the supply. Hence it has to be recorded that the

prices at which paper is purchasable today show increases which were never for a moment contemplated, even four months 2tgo* At tli© tim© of writing it may be considered thut tlie real paper famine has begun. How long will it last? 'io what heights will the price of supplies be driven? What will it mean to the business of many publishers? What will the end be? When writing last month, it was feared that the price of paper would then shortly reach 2id to 3d. per pound, but, serious as the outlook was then, events have proved that the position was much more serious. Purchases were absolutely neccssary to safeguard the interests of several prominent publishing firms during the past two weeks, and the prices paid for one hundred up to five hundred tons of paper reached 3Jd per pound _ net. This price, it should be noted, is ■ something like two hundred per cent, increase over that ruling only twelve months ago. It would be optimistic to say that before another month passes. the price of paper would be less than 3Jd to 4d per pound. In all likelihood it will reach sd. and even 6d per pound before many weeks pass, A.WORLD FAMINE. There has not been, nor is there anything w-hich points to a more hopeful view of the paper situation. On the contrary, not only do conditions remain just as bad as a month ago, but the difficulties which crop up from day to day in regard to paper supplies all over the world render the situation still more difficult for publishers in these islands. There is a paper famine throughout the whole world, and as it brings more and more enquiries into the British market, so prices, accentuated by the growing difficulties at home, bound upwards. The embarco which was put into operation prohibiting the exportation of sulphite pulp from Sweden has not been removed, as was in most quarters confidently hoped for and expected. Less coal than ever is being allowed to be sent to that country from En eland. There is a threat of a national lock-out in Norway, from which country, it

should be noted, large quantities .of mechanical pulp are exported. Next to no supplies of paper are comins: into this country from the United States and Canada. In fact, 'all the difficulties which the trade had to face a month are more than ever accentuated to day. THE QUESTION OF SHIPS. The question of ships, which, figures so largely in the supplies ana puce of paper, is even move uuuemi ijjan ever 'iiie Government goes on requisitioning them, and eaca vessei wmub is so taken ever semis up tne price of freight rates. Tnere is not, at the moment, any hope that snipping will be cheaper, but everything indicates that as tne number avaiiaoie ioi general tiado becomes fewer, so wih it have its efiect upon the prices ol paper and paper-making materials. As an instance of tne effect of the various difficulties in the p-iper-making business throughout the producing countries and tn© question ot snips, it. may be pointed out that between January and June the imports of pa]per aitf expected to fall to at least one hundred thousand tons below the quantity imported into this country lor the corresponding six months in 1915. lo consumers of paper who have not yet appreciated the full importance oi tlie paper difficulties which threaten, it may- be mentioned that several ol the far-seeing publishers who have closely studied the (situation have arlanged to charter ships in order to secure supplies from abroad. The cost which has to be faced is, of course, very great at first glance, but it is far better, they consider, to ma I:? certain of definite quantities at a. fixed price than to be at the mercy of the general trade for the time which might come, when price will not matter at all—but the question of getting it at all. Before many weeks are passed it would not be surprising to see several other of the tig consumers arranging to charter their own vessels to bring in supplies of the necessity without which their busmesse would cease. "RETURN'S" AND PRICE. The whole situation, as it appears at the present time, seems to indicate that the famine in paper is only starting. There is notning to suggest any thin jr to the "contrary. The time is coming l when consumers must prepare to pay almost oily price. It would seem, therefore, that the outlook afc present is such that consumers of paper, and publishers in particular, must again look very closely into two-main matters: (1) The absolute abolition of waste paper: (2) the increase of price to the public.

THE SHORTAGE OF SHIPPING. ~^ s f 13 ® bee ll so plainly and emphatically stated in these columns, the key of the whole paper situation is shipping. Were the trade on the seas as in normal tunes there would have been no paper difficulties. Dearth of ships has rendered impossible the business or bringing into this country paper and paper-making materials. Pulp would have been coming from Sweden as before but for the scarcity of ships. It is the lack of ships which has caused the restriction on the exportation of on ? that and other countries. There is no chance of the shipping situation becoming easier. So lon;z as the war lasts and other nations take P®rt in it, _ so will the scarcity of ves- . . still moro pronounced. The sinking of so many ships and the ever-increasing demands on those remaining for Government purposes threaten to make the situation still worse. The time may come when all | the available vessels wil! be required j to bring food to this country. If j that day should arrive, what would it i matter about bringing paper and pulp? There would not be any consideration given to anything beyond foodstuffs and munitions of war. And it is within the bounds of probability that this situation will arise before the end of the war is reached. What. then, wil] be the position of the many consumers of paper, whose whole business depends' upon this article? The real 'famine in paper is only just beginning. Compared with January last the situation is already very serious. In January the situation in May was never contemplated. Matters have developed very quickly during recent weeks, and are ~ going from bad to worse even more rapidly. What will be the position of the paper market in another four months? The output of the paper mills in this country has been reduced already by at least one-third to one-half. Rumours say that many more paper-mak-ing machines must close down before very long on account of the small stocks of materials.