THE POSITION OF FLAX

Evening Post, Volume LXXXVIII, Issue LXXXVIII, 10 September 1914, Page 8

THE POSITION OF FLAX

EFFECTS OF THE WAR ON PRICES. Practically all^ the flax mills outside tho Wellington-Manawatu districts are closed, and in that area not all the mills are running. A week ago the demand from London and elsewhere -warranted a price to millers of £19 10s per ton. for good fair grade and £18 per ton for high point fair grade. To-day offers to sell on a basis (to millers) of £18 10s for good fair and £17 5S5 S for high point fair failed to elicit any re- ' plies from London. These prices can, therefore, only be regarded as nominal. .Work is being done only on part timo at some of the mills now manufacturing, and they are keeping on in the hope of an expected, improvement of the market. It is not yet clear that the fall in prices is likely to continue for any length of time, but it all depends upon ,an early improvement in the general tone -whether the mills will continue, many of them not having sold the flax already in their paddocks. The war risks for outwards was cabled from London on Monday as at 8 per cent., which is equivalent to a burden of "£l per ton on flax. It is noi clear whether this rate applies to cargo- from j New Zealand. The surcharge of '25 ! per cent, on current freight rates is also a handicap upon flax, the rate Homewards for which is £3 5s per ton. That' rate is for shipment up to October, when the slightly higher summer rates are usually fixed. It is* understood that the summer rate on flax would be £i per ton tlm season. With increased charges for freight*, insurance, and exchange and a weak and falling market,' the prospects for the New Zealand flaxmiller are not very bright at the moment.