A DECIDED SLUMP.

Otago Witness, Issue 2861, 13 January 1909, Page 66

A DECIDED SLUMP.

THE CONTRIBUTING CAUSES. (From Our O^n Correspondent.) GBEYMOUTH, January 9. In reference to a telegram from Palmerston North anent the timber industry, a Star reporter interviewed a local resident who is prominently connected with milling on the West Coast, and gleaned some interesting infoimation regarding the outlook from the local standpoint. I " The outstanding featuie of the situaj tion.' 1 remarked the miller, "in the fact that ever since the mills closed down before ! the Christmas holidays no New Zealandi ! oiders for red pine have been received. ; In effect the New Zealand ports are at I present closed to this class of timber. The 1 date for the lecommencement of operaj tions at the various mills is set down las Monday week, 18th inst., but it is j eomewnat difficult to see wheie the millers i are to get suificient orders to keep their j mills going. It is certain that full time ; will not be worked for some time to come. , The outlook," added the informant. i " caused him to believe that four days : would be the maximum average weekly working time for some months to come." In regard to the Australian markets, the miller stated that cutting for these would j remain at a minimum for the present, as I it would be late in February ere it was time jto fulfil orders. At present there was a j surplus stock of 1,250,000 superficial feet I for this market on the skids, whereof 300,000 superficial feet was now stocked near the new goods sheds. Last year the Australian markets lasted much longer than was expected, whilst this year he was hopeful of the demand being good from about March to October. Wtih regard to the labour aspect of the matter, the miller explained that the greater number of the men were employed on day wages, so that the short time which must inevitably be worked during the next few months would be felt by them. In view of the critical period through which the millers were now going, they were not likely to be able to afford a continuance of £20 going out weekly in wages, and a readjustment in this respect would have to be made in the near future with a view to the amount being reduced. The milder spoke hopefully of the outlook for the future, and seemed confident that within the next few months normal conditions would once again prevail. The harvest in Canterbury would most likely i prove an exceptionally good one, and wool prices Mere increasing, and theee were factors which would tend to impiove the situation and rebtore confidence. The miller added that Auckland was overstocked with Oregon pine, and the kaurj millers were feeling the pinch. Jarrah was also being extensively imported. In Wellington there was plenty of Oregon on hand, and it was sold at a lower rate than hitherto obtained. However, the merchants holding this class of timber were likely to receive a nasty '• bump,"' as some North Island millers had instructions to sell forthwith, so that a large quantity of the local article would be forced on the market. In conclusion, the miller added that if they were successful in getting a differential duty placed on Oregon, with the provision that it must be cut up in New Zealand into the same sizes as the New Zealand timber, this would piove of substantial assistance and assist materially in bringing back to the West Coast industry its wonted prosperity. CHRISTCHUECH, January 9. With a view of ascertaining the true significance of the Palmeraton North telegram to the effect that many of the sawmills in the North Island have been closed down indefinitely, a Truth representative waited on Mr Gobs (president of the North Canterbury Timber Merchants' Aesociation), and asked him for an explanation. Mr Goss replied that it was not a question of hoy/ the closing down of the mills would effect tlie local industry, but a- question of local industry affecting the mills. The timber trade was slacker now than it had been for four or five years, and •here was practically no demand for timber. That was particularly unfortunate at the present time, as owing to the building boom which occurred some time ago most 3f the sawmills put in extra plant, and |ust now, when no timber was required, >hey were capable of a greater output than previously. The sawmilLs on the West Joast, -which previously sent supplies to Wellington, as well ac supplying the local

market, besides losing the North Island trade were sending hardly any timber to Lyttelton. As demonstrating this fact, Mr Goss stated that, -whereas about 12 months ago some 3,000,000 feet of timber was coming from the West Coast to Lyttelton monthly, the imports last October and November "were under 1,000,000 feet each month. The mills on the coast which ■were woiking at all were confining their output to half the previous quantity, and, besides discharging half their men were working short time. On being interrogated as to the cause of this slackness, Mr Gcss remarked that the chief factor was the stringency of the money market— the lesult of the financial panic" in America. Another very important cau&e of the trouble was the flood- ' ing of the market with Oregon pine, which . could not have come at a more- inopportune time. As it was. there was a decided slump, and it naturally followed that outside importations made matters a great deal worse.