PAPER SHORTAGE.

Oamaru Mail, Volume XLIV, Issue 14026, 7 April 1920, Page 2

PAPER SHORTAGE.

~ A SERIOUS POSITION.

I . (Evening Post.) ' Recent cable messages received in Wellington emphasige the seriousness of the situation confronting the newspaper proprietors of New Zealand concerning supplies of printing paper for 1920. It is impossible at the moment to arrange for expected, and in some instances sorely-needed, deliveries. Some idea of the gravity of the situation may be gathered from the comment of an Australian journal: — Commenting on the present State of the newsprint (paper) market, thisjournal recently remarked that all over Australia and 'New Zealand there are newspapers threatened with extinction. They have reached'tlie end of the newspaper supplies and replenishments are not in sight. Some are eking out a hazardous existence for a few weeks or mouths longer by borrowing from competitors slightly better placed. These loans, however, have also ceased, because no office has any surplus left, and each is working on a hand-to-mouth svstem. ' The crisis has grown more acute during the last few weeks. The position was bad enough at the beginning of December. To-day it is 50 per cent, worse. The position during the war was that paper in abundance could be bought- but there was an increasing difficulty in finding ships to carry it. To-day 'the shipping is available, but there is no paper for sale. Australian and New Zealand newspapers, because of the war, became almost entirely dependent upon the Canadian paper mills during 1019, and look<d to them to provide supplies for 1920. Just when contracts were ready tor signature. however, the shortage of newsprint in North America (which had been concealed from general knowledge) became apparent. American papers, having largely increased their prices and their advertising rates, were able to pay much larger charges for their jnateriaK and the exchange rate further gave them an enormous advantage over Australasian and British competitors. Tliev bad thus cut deeply into''Canadian stocks, so that even Canadian papers were confronted with a possible famine, no matter what they might say. The Canadian manufacturer, compelled to sell in Canada by Government control at £l7 per ton, naturally preferred to place his output in New York at £34 per ton. The Canadian market, because of these local conditions, was suddenly cloifd asrainst Australia and New Zealand. It is extremely improbable that the Commonwealth and Dominion wiil draw from Canada even one-fourth of the newsprint which they received from that Dominion last year. In these circumstances Australian and New Zenland papers, like the great, of New York, South America, France, Italy, and Great Britain, had to turn to the paper-making countries of tho Old World, and chiefly to Scandinavia., in tlie.-hone of retrieving the situation.

With ail" these buyers in the market bidding almost frantically for stocks, prices commenced to jump., and American quotations followed in concert. In the rush some were .lucky and some were not. Some had reason to believe that, they were very lucky untiL it was discovered that the output of the mills had been considerably oversold, whereupon most unpleasant shocks were received by buyers on this side. What they thought were firm contracts turned out to be waste paper, because they were informed that- large parcels upon which they had relied would not reach them, because the. mills could not produce the paper. The scramble for what little is left has therefere been something of a panic, and agent after agent in Australia has been forced to inform prospective clients that he .cannot .quote at. any price for any quantity for delivery at any time. .<■*

The condition of the climbing market is best disclosed in a table setting forth actual quotations during the last few months, and its significance may not be realised unless it is borne in mind that paper was landed, dunpaid. in Australian and New Zealand ports before the war at £ll 10s per ton. These, according to Australian reports, were the best prices offered: Per ton.

There are no qnotations cufrent so far as New Zealand is concerned. The prices have deterred proprietors from entering into contracts lor 1921. and only small parcels are obtainable for delivery in 1920, the prices being more than double those ruling last year. Lnder these conditions it appears to bo inevitable, that the size ot papers will be everywhere reduced, ana the "rationing" of advertisers will become universal. A sharp, rise in advertisement rates is also to be anticipated.

1019. 4s d •Jilly 7 ... 32 10 0 October 3 ... 33 .0 0 October o ... :v.) 10 0 October 27 ... 37 •J 0 October 2!) ... 40 0 0 December 2 ... 42 10 0 December 31 ... ... 44 10 0 1920. January 1.5 ... -47 10 0 January J8 ... ol o 0 January 20 ... 00 0 0 January 23 72 0 0 February 1. • 7o 0 0