THE HEMP MARKET.

New Zealand Herald, Volume XXXVIII, Issue 11840, 18 December 1901, Page 4

THE HEMP MARKET.

Reports of the London hemp market show that the high rates that have lately ruled for Manila have upset the calculations of those who expected a larger supply from the Philippines as a result of the more settled slate of affairs there. It is interesting and instructive to look back on the past three or four years to properly appreciate the changes that have taken place in the trade, owing to the Spanish-American war and the subsequent difficulties- between the Americans and their new subjects. Before the war hemp production was increasing, owing to the /work of a class of Spaniards who : were content to live in the country at small personal cost, aided by native labour, so cheap as to amount almost to a system of slavery. The war has driven most of these Spaniards away, and hemp has been left to the native, who not only has now a very large idea of himself, but commands fully ten times as much as he was wont to receive under the old regime. He collects all he can, not troubling about the future, and first quality and then quantity has suffered in consequence. No newblood has been introduced into hemp cultivation, and there is every prospect of production falling off considerably, although no trustworthy data can be obtained on this point, owing to the state of anarchy that has ruled in the Philippines for a long time past, so that few white men can venture far from the coast ports. But the trade, all over the world generally, was convinced that under American government there would follow an improved cultivation of hemp, a larger supply and cheaper prices. Buyers, therefore, for a long time refused to operate, except for actual requirements. The small production of this year has had the effect of convincing manufacturers of the error of their judgment, and instead of lower prices everything points to gradually increased scarcity and higher prices. The position of Manila hemp is very strong, seeing that manufactured and unmanufactured stocks were allowed to become depleted. The actual amount of Manila hemp required for the world's consumption is difficult to estimate, but shipments point to a minimum of 800,000 bales per annum, and the quantity required is probably far larger, whereas during the last four years the production has averaged only 750,000 bales. A London report under date October 1 says New Zealand was a negligible quantity at the end of 1896, but during the last three years a large amount has been shipped both to this country and to the United States. This has all been used up, as has the 750,000 bales of Manila per annum, for ropemakers started in 1901 bare of stocks, buying spot and early shipments at a considerable premium over forward shipments, and now that they realise the position they are greedily buying all they can at jumping prices." We know from cable advices since to hand that the price of New Zealand flax has receded considerably, but the strong position of Manila hemp has enabled our flaxmillers to contract for their output at a better range of prices than they have been getting since the phenomenal rise in 1890. A word of warning would not be amiss, lest they should spoil the market by forcing for too high prices. The present figures will allow for very remunerative work in our mills, and it does not follow that a miller has not placed his output satisfactorily if it happens that his price is 10s under the figure his neighbour has secured by being able to make his contract in the particular week when the London prospects appear brightest. The Agent-Gene-ral now reports the London market easier, and this will necessitate further caution on the part of exporters who have not sold their futures in London, so that millers would do well to secure sales at the present advantageous and payable rates.