THE HEMP OUTLOOK.

New Zealand Times, Volume XXXII, Issue 7140, 30 May 1910, Page 12

THE HEMP OUTLOOK.

SATISFACTORY POSITION IN MANILA. DISCOURAGING FOR NEW ZEALAND While the business of milling New Zealand flax is proceeding with a fair degree of satisfaction, there is little to encourage the hope that prices will improve very much in either the immediate or the distant future. Manila, the king fibre, dominates the hemp position *, it depends almost entirely on the available supplies of this hemp whether there is a good demand for phomiium or not; and at the present moment everything points to the production of Manila expanding rather than declining. A past prediction which gave renewed hope to many New Zealand millers is apparent* ly being falsified, and what was regarded as a certain factor in bringing about a decline in Manila hemp production is more than likely going to prove the very reverse. The statement was made that when prices fell gome years ago the Philippine stripper demanded a larger share of the market returns, with the I'esult, so it was said, that owners of the plantations decided to discontinue planting further areas, a fact which naturally pointed to a reduced output in the future. Then, it was declared that the American development of the islands, in the direction of making roads and building bridges, would introduce the native to an easier occupation—stripping the abaca plant is one of the most strenuous undertakings in the world—and also lead to him demanding a higher standard of living. What is the actual position? Instead of the production of Manila declining, it is exhibiting remarkable expansion, and this in spite of the fact that its value is about i'lo a ton less than at the time when the reduced price waa declared to be the forerunner of a decline in production. Facts .to be remembered are that the construction of public works is not a continuous undertaking; that there is a vast native population in the islands which must live; ; that stripping the abaca, plant provides more employment than would probably any other rural industry suitable to the islands; and that while the employment on public works lias probably ceased by now, thereby throwing the Philippine back on to his old occupation, the modem roads, bridges, and railways have greatly reduced the transit charges and thereby led to the cost of production being materially lessened. From the above it will be admitted that the hope of a reduced output of Manila may be numbered among tlie several misconceptions formed of the Manila position. As is well known, Manila hemp is now admitted into the United States free of duty, while New Zealand hemp has to bear an impost of twenty per cent. The result is that not an ounce of our fibre is being imported into the United States. This is another reason for believing that notwithstanding lower values on British markets the producer of Manila hemp is finding it profitable to continue operations. While he has undisturbed control of the United States markets he can afford to dump his surplus on to British markets. This is but another reason why New Zealand millers have reason, to fear the/expanding Manila output. Taking the conflicting reports that have been published on the Manila hemp position, and the vast importance t”> Now Zealand millers of an understanding of the true state of affairs, it is more necessary ■ than ever that a thorough investigation should be made into . Manila hemp and «vnrything connected with it from the production view-point.