THE FLAX INDUSTRY.

Dominion, Volume 1, Issue 281, 20 August 1908, Page 3

THE FLAX INDUSTRY.

THE PRICES AND PROSPECTS. FINANCIAL STRINGENCY. In view of the near approach of tho flaxmilling season, and having in mind the low prices obtainable at present, a roporter mado some inquiries yostcrday as to the prospects of the millers.

Mr. G. Shirtcliffe, resident partner in tho firm of A. S. Paterson and Co., said: "The time is approaching for . the mills to commence the new campaign, but it remains to be seen to what extent operations will be resumed owing to tho stagnation of the market and the low prices caused by the excessivo supplies of Manila bomp, coupled with tho high cost of production and tho high royalties and wages. Thero has been some modification of tho royalties, but as yet thoy' do not seem to ho low enough to onablo tho millers to produce at a profit. As a matter of fact, those millers ■ who are working on royalty flax cannot have any margin, at tho present price, to cover contingencies, such as fires, floods, etc., apart altogether, from profit to themselves." What is tho outlook, Mr. Shirtcliffe ?

■ "So far as wo can judgo," he replied, "Manila supplies will continue heavy, and tho speculative element in the world's markets has practically disappeared owing to the general financial stringency,. and wo cannot say that the prospects_ for higher prices aro at all hopeful. It is. only a few years ago, 1900, that g.f.a.q. hemp was quoted at £13 10s. per ton hero, but we. do not think for a moment that tho prico will again recede to that low level, but it is an indication of the violent fluctuations to which the fibre markets aro subject. It may bo that history will repeat itself, but we, however, are inclined to think that prices will remain at about the present level, which is not payable, and those mills which can produce at a profit will continuo to do so, and those who. cannot will have to close down for the time being._ The only suggestion that wo can make is that millers should use their utmost endeavours to reduce the cost of production and. to improve the quality."