THE FLAX CRISIS.

Dominion, Volume 1, Issue 151, 20 March 1908, Page 2

THE FLAX CRISIS.

A RECOVERY PREDICTED. Mr. I. W. Raymond, a gentleman greatly interested in tho flax industry in the South, speaking to a "Southland Times" reporter on the situation, said: "The alarming slump is brought about entirely by tho over-pio-duction of Manila. This product has reached tho lowest limit for the last 15 years, lho price in London to-day is about £22 per ton. When 0110 bears in mind that New Zealand fibre is not supposed to be comparable with Manila for ropo - and twine purposes, it tn not difficult to account for the great depreciation of the local production. I am satisfied tliat tho industry reached far too high a level two or throe years ago. Thero was absolutely nothing to warrant the phenomenal prices then being paid for New Zealand fibro. Tho explanation is, of course, that owing to the war in tho Philippines the industry there was quite neglected. It mustnot bo forgotten, then, that it takes a considerably' greater quantity of the raw material to produce a ton of Manila than'it does to produce a toil of Now Zealand fibre. Other conditions being equal, I do not.view with serious apprehension tho present condition of the fibre ■ industry, because I am convinced that many of those who took up Manila growing and production during the last year or so will find, beyond doubt., that it is impossible successfully to produce Manila, under; £30 a ton. That being so, thero is; no doubt that in the course of a year_ or: so there must be a recovery in' tho price of fibre. I should think that at least £24 or £25 per ton could, reasonably be looked for within that period. A Blessing in Disguise, " Tho slump may possibly, have been a blessing in disguise, for two r.easons: Firstly, it will convince those who have flax areas that they cannot oxpect to levy unreasonable royalties from the millers for their product. Secondly, the labour in connection.tfith flaxmills is of 1 tho, most unsatisfactory class. The men oxpect unreasonably high wages', and the majority of them givo tho poorest .return they can for such payment! Tho .resiilt has been that, although millers up till 'last. season wore receiving ' abnormally ' high; prices for their manufacture, a\id in some leases were not paying excessively high royalties, their ventures wero failures owing to the . utter disregard with which the : men' viewed, their employers' interests. ; I am hot usually optimistic, but being interested <in '■ the- raw material'-'and'in. fibre production, holding as I do several considerable areas, I am inclined to say that Southland has not by..any moans seen the last of the'flax industry. "I purpose visiting the Philippines within the • next six ,months, and' I will then bo; iii' a better position to gauge tho strength of our'greatest competitor.'' ;