HARD FIBRE TRADE

New Zealand Herald, Volume LXXIII, Issue 22353, 26 February 1936, Page 9

HARD FIBRE TRADE

POSITION OF FLAX REGULAR SUPPLY ESSENTIAL RECAPTURING LOST MARKETS To restore tlio European market for New Zealand hemp to a normal consumption of this fibre, it is essential that supplies be available in regular quantities for shipment any month of < the year, at prices competitive with 1 sisal and Manila. Without these conditions it will be difficult for exporters ' to recapture lost markets. These conclusions are reached in the annual review of the world's hard fibres issued by Wigglesworth and Company, Limited, London. "We have every reason to believe," the firm adds, "that producers in the Dominion realise this, and that the encouragement which is being given by Government to improve strains of phormiurn and to tune up production and grading gives promise of a revival of this industry." The review refers to the rise of prices of all hard fibres, "bringing them into closer relation with the soft fibre group." For five years, it is remarked, producers of sisal, Manila, New Zealand and Mauritius fibres have been compelled to sell when they sold at all at figures that penalised the industry, reducing wages to starvation point, and piling up deficits. However, "adversity has promoted improved organisation and has begotten methods designed to reduce prime costs, particularly in East Africa." Dealing specifically with New Zea- ; land hemp, the firm reports that after j a long period of severe depression re- j suiting in a further reduction in last j year's output to a quantity of 4500 | tons the rise in hard fibres has brought j about a very acceptable change in the '■ outlook of this Empire product. The : low price caused many New Zealand mills to close down, but in September the subsidy was renewed for a further six months, Government retaining the right to modify or cancel the amount in the event of a substantial rise in the price of material. It | is anticipated that at the present value j other mills will reopen, thus increas- J ing the output sufficiently to permit i shipments to Europe. Yearly averages for Manila, New Zealand high point fair grade fibre and African No. 1 sisal over a period of years compare as follows: —

It is noted that the carry-over of twine in the United States and Canada from previous seasons had been absorbed and necessitated substantial purchases of raw material to replace twine consumed. BRITISH WAR LOAN British Wireless RUGBY, Feb. 24 War Loan, 3J per cent, is quoted today at £lO7 6s 3d, same as on February 21.

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