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NEW ZEALAND.
NEW ZEALAND HEMP (PHORMIUM TENAX) (INFORMATION RESPECTING ITS RECENT ADVANCE IN PRICE, ETC.).
Presented to both Houses of the General Assembly by Command of His Excellency.
No. 1. The Hon. the Premier to the Agent-General. Sib,— Premier's Office, Wellington, N.Z., 21st March, 1889. I commend to your notice the enclosed cutting from the Lyttelton Times of the 16th March, in which it is suggested that you should procure and furnish information as to the cause of the recent rise in the price of New Zealand hemp. There is no doubt that the effect has been to induce numbers of our colonists to embark largely in the manufacture, and it would be well to ascertain if possible that the advance is likely to be continuous. I have therefore the honour to request that you will be good enough to make the necessary inquiries, and report as early as may be practicable. I have, &c, Sir F. Dillon Bell, K.C.M.G., C.8., Agent-General. H. A. Atkinson.
No. 2. The Hon. the Colonial Secretary to the Agent-General. g IB; Colonial Secretary's Office, Wellington, Ist April, 1889. I have the honour to inform you that two hundred copies of the second edition of the pamphlet " Phormium Tenax as a Fibrous Plant" will be forwarded to you by an early opportunity, for distribution in any manner you may think likely to promote interest and inquiry respecting the manufacture and supply of Phormium fibre. Three copies are forwarded to you by book-post per "Arawa." You will observe that the preface contains an interesting statement by Sir James Hector respecting the present condition of the Phormium industry and its possible development; and in connection therewith, I have to ask that you will endeavour to ascertain to what use the fibre shipped from New Zealand is put, and also to what cause the increased demand of the last year or two is due, and consequently whether such demand is likely to be permanent or not. I have, &c, (For the Colonial Secretary), The Agent-General for New Zealand, London. G. S. Cooper.
No. 3. The Agent-General to the Hon. the Premier. g IB; _ Paris, Ist May, 1889. I have to acknowledge the receipt of your letter of the 21st March, directing my attention to an article in the Lyttclton Times respecting the recent 2-ise in the price of New Zealand hemp. There is evidently some trade secret in the matter. When the Hon. Dr. Grace arrived in England he made some inquiry into the cause of the sudden demand, which it was suspected had arisen from the discovery of some process by which the hemp could be worked up in silk fabrics. Mr. "Kennaway has been engaged in making inquiries, which will be carried further, in accordance ■with your instructions ; and I will do my best to get such particulars as may be of service to our settlers. 1 haye > &c -> The Hon. the Premier, Wellington. F. D. Bell. mm—inri—TVTrni--iTn-ir—-- —~--~-—'"•mii hiihi ni—hm uiiii i ■■
No. 4. The Agent-General to the Hon. the Colonial Secretary. g IB) — Paris> 17th May, 1889. I have to acknowledge the receipt of your letter of the Ist April (No. 40), relating to the Phormium tenax, and the recent advance in its price. On receiving the Premieres previous instructions on the subject I made inquiries in the city from persons most likely to be" able to furnish the information you desire, and I now enclose copies of letters from the following firms : Messrs. Weddel and Co., Messrs. Eedfern, Alexander, and Co., Messrs. W. Binnie and Co., New Zealand Loan and Mercantile Agency Company, Messrs. Miles Brothers and Co., containing particulars which will be useful to growers in the colony.
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I had noticed in recent files that the sudden and remarkable rise in price was supposed in New Zealand to have been caused by some secret as to the uses to which it could be put in trade ; but there does not seem to be any foundation for that conjecture. The rise has taken place under one of the curious fluctuations which happen now and then in so many articles of commerce, and which baffle the keenest of the crowd of observers who are always on the watch in every centre of mercantile activity for chances of profit. The market for Manila hemp has not only been in a very excited condition lately, but is likely to continue so for a time. One of the trade circulars issued only a few days ago referred to it in these terms: " There has been an extraordinary change during the last fortnight; the advance has been £10 per ton, and a fair extent of business has been done at an advance of fully £8 per ton of fair current quality over prices at which very few would entertain offers made only two or three weeks ago." As the suddenness and extent of this advance has been caused by speculation in the United States, it will probably droop soon. But there is not any doubt that the consumption of all manufactures of hemp is increasing too largely everywhere not to press more heavily than was supposed only the other day on the known sources of supply; and, although I hesitate to express an opinion of my own on matters of trade, I have for a long time past been certain, as a constant student of statistical questions, that in both hempen and woollen products the demand of the world is so fast overtaking the ordinary production that a cycle of comparatively high prices in likely to be seen. The increased demand for hemp will, of course, stimulate new sources of supply, and bring down the market rate of to-day; but the Phormium tenax was always sure to find a strong place some day in the hempen trade, and it was only a question of time when it should do so. That place is now assured, if only the growers will take pains in the preparation of the hemp for the English and American markets. You will find this condition insisted upon in the letters I enclose, and nothing is more certain than that the growers in the colony have a reasonably profitable time before them if they will accept this condition, and send Home only properly-dressed hemp. . -1 have, &c, The Hon. the Colonial Secretary, Wellington. P. D. Bell.
Enclosure 1 in No. 4. Messrs. Weddel and Co. to the Agent-General. Dear Sic,— 16, St. Helen's Place, London, E.C., 13th May, 1889. We have now to acknowledge more fully your favour of the 7th instant. We have compared notes with the leading importers of the various hemps, with brokers and with manufacturers, and our opinion is that the market is at present at a dangerously high level, upon which it would not be safe to base calculations. The principal cause of the rise in New Zealand hemp is the heavy advance which has taken place in Manila. A New York company has been competing with a Boston company for Manila and Sisal hemp, and this has been the chief cause of the advance, the price of Manila having been driven up to rather over £60 per ton here, and in the United States the latest quotation is $16Jper hundredweight = £66 per ton. The principal use for hemp in America is for the manufacture of binding-twine for harvesters; but we are informed that now for this purpose they are mixing jute with hemp, so as to reduce the cost, and this will also tend to reduce the consumption of hemp. Cholera is at present epidemic in Manila, and this tends to reduce supplies from that quarter for the time being. High prices are stimulating supplies from various quarters of the world; and in India especially they are making efforts to increase the output, and large quantities of machinery have been sent there lately to improve the dressing of hemp. Consignments of New Zealand hemp have in recent years come forward very much better dressed than formerly, and manufacturers both in this country and in America who previously would not touch it have now been induced to use it; and hence, to a certain extent, the increased demand which has set in. Within the past few months, however, several shipments have come forward carelessly dressed, and have had to be sold at relatively low prices, and have also helped to damage the name of shipments from the colony. We cannot too strongly impress upon shippers the great desirability of keeping up the standard of quality. There is no doubt that the consumption of hemp is steadily increasing; but high prices are stimulating supplies, and our own impression is that before many months are over prices will probably show a considerable drop. At this moment the value of well-dressed sound New Zealand hemp is £37 and £38 per ton, but we do not think it safe for shippers to calculate on a higher basis than, say, £25 per ton, at which we fancy it would still leave them a very fair return. Enclosed we hand you a diagram, published in New York, showing the fluctuations in Manila and Sisal hemp from the year 1860 to 1886; the prices are given in dollars per hundredweight. Kindly return this after inspection as we have borrowed it from a Manila firm. Yours, &0., The Agent-General for New Zealand, 7, Westminster Chambers. Weddel and Co.
Enclosure 2 in No. 4. Messrs. Weddel and Co. to the Agent-Genebal. Dear Sic,— 16, St. Helen's Place, London, E.G., 16th May, 1889. Supplementary to oift letter of the 13th instant we now beg to hand you statistics showing the imports, deliveries, and stock of New Zealand hemp for the first five years ending the 31st Decembar in each year. Yours faithfully, The Agent-General for New Zealand. W. Weddel and Co.
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1888. 1887. 1886. 1885. 1884. Tons. Tons. Tons?. Tons. Tons. Imports ... 2,213 723 449 219 1,012 Deliveries ... 1,949 701 566 630 1,016 Stock ... 303 48 25 142 583 From the Ist January to the 30th April, 1889: Imports, 1,338 tons; deliveries, 1,339 tons; stock, 302 tons.
Enclosure 3 in No. 4. Messrs. Bedfemn, Alexander, and Co. to the Agent-Genekal. Deae Sic, — 3, Great Winchester Street, London, E.C., 13Qi May, 1889. We have now the pleasure of replying to your inquiry of the 7th instant respecting New Zealand hemp, and we trust the following information may be of some interest to you:— The recent rise in the price of this article has been brought about by the demand for t\sine which has sprung up in America for binding sheaves by the new machinery instead of using wire as formerly. This led to a great increase in the consumption, and the bulk of the Manila production has, we understand, been absorbed by "direct shipments of hemp from Manila to the United States. To make up some of this deficiency the ropemakers in this country have laid in stocks of similar materials—such as New Zealand, Mauritius, &c. The New Zealand hemp has also taken the place of Sisal, of which there has been no supplies for some time, though in previous years there have been some stocks in this market of perhaps about twenty thousand bales. The market for New Zealand hemp is ruled mainly by Manila, but the fluctuations have not been so great as in the latter article. In 1888 prices opened at £30 per ton on an average, landed terms, and fell in June to £26 per ton, rising in December to £32. Stock in January, 1888, was 48 tons ; on the Ist May, 1888, 126 tons; in September, 1888, 504 tons; on the Ist May, 1889, 303 tons. Deliveries from the Ist January to the Ist May, 1889, 1,339 tons ; against same period, 1888, 316 tons. Imports for the Ist January to the Ist May, 1889, were 1,338 tons ; against same period, 1888, 404 tons. Prices have been as follows : 1884 (January average), £25 ; 1885 (January average), £19 ; 1886 (January average), £23; 1887 (January average), £24 10s.; 1888, (January average) £28 to £29 (average for year) ; 1889, January-May average £34 10s., and is now £34 15s. on an average of qualities. The following statistics of Manila may be of interest : Present stock (6th May) in London and Liverpool, 18,500 bales; against 6,100 in 1888. Deliveries since the Ist January, 101,200 bales ; against 108,600 in 1888. Afloat to United Kingdom, 12,000 bales ; against 43,000 in 1888. Shipments to the United Kingdom this season, 98,000 bales ; against 119,000 in 1888. Shipments to the United States of America this season, 105,000 bales ; against 70,000 in 1888. Prices in 1888, from January to December, ranged from £28 15s. to £37, rising in December to £45 ; in January, 1889, they were £56 10s.; they fell in April to £47 and £48, and are now £50 to £51, all c.f.i. We some time ago heard that the effect of this important rise in the price of hemp has induced numbers of settlers in New Zealand to embark largely in its manufacture, and if present prices continue it will probably be a satisfactory industry ; but it remains to be seen how far the market will bear increased production, for with the present high prices we shall doubtless see supplies increase from various quarters, and, as is generally the case, prices will fall to nearly their old level. We remain, &c, The Agent-General for New Zealand. Eedpeen, Alexandee, and Co.
P.S.—We hear that Americans are trying to buy in New Zealand, and we should think there is a likelihood of an important trade being developed by direct shipments from the colony to the United States.
Enclosure 4 in No. 4. Messrs. W. Binnie and Co. to the Seceetaby, Agent-General's Department. Deab Sic, — Dunster House, 9th May, 1889. In reply to your letter of the 7th instant, we beg to say that the rise in value of New Zealand hemp has been in sympathy with other descriptions, especially Manila, which have advanced in the same proportion. This rise, we believe, has been brought about to a great extent by speculation, both in Manila and in America, which has been stimulated by a larger consumptive demand in the States than previously. It is impossible to say how long the present values will be maintained, but at present there is no sign of weakness. The effect of it has been to bring New Zealand hemp more into notice, and the business transacted during the past nine months has been very much larger than during any previous period. Most of the rope manufacturers now use it; and it will be the fault of the shippers if the hold it has obtained on our markets is in any way relaxed or lost. Too much stress cannot be laid on the caution which we venture to give—that if badly-dressed hemp is sent, or only partly dressed, the manufacturers will cease to buy it when the markets become dull and prices recede. Of course, when the market is high and firm, any quantity can be sold, but this cannot always be the case ; and therefore it is necessary to send it in a state in which it will compete under all circumstances with Manila— i.e., well dressed, with all the straw got rid of, as soft as possible, and-even in colour. If this quality is maintained we think the price we could obtain for it would be about £10 under that for Manila, which is much less difference than that at which it has been sold lately. Today's price for good cleaned New Zealand is £37 per ton. We are, &c, William Binnie and Co. Walter Kennaway, Esq., Secretary, Agent-General's Department.
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Enclosure 5 in No. 4. The Manag-ee, New Zealand Loan and Mercantile Agency Company, to the Agent-General. New Zealand Loan and Mercantile Agency Company, Deab Sib, —■ London, Bth May, 1889. Beplying to your favour of yesterday, we would point out that New Zealand hemp is essentially a "sympathetic" article, and that its value in this market is to a very large extent controlled by the current price of other leading descriptions, but principally by the quotations for Manila. The Manila market, in turn, is in great measure under control of speculators in America, and wide fluctuations in value frequently occur, for which the position of supply and demand affords no adequate explanation. - Under these circumstances it is obvious that extreme uncertainty must attach to the course of prices for New Zealand fibre; but, in connection with its present and probable future position in the market, the following considerations are worthy of note : —(a.) The extended use of New Zealand hemp as a substitute for Manila, Sisal, and other descriptions, is well calculated to give it a recognised position in the market, and the rapidity with which recent (comparatively heavy) supplies have gone into consumption shows that the present openings for it are numerons and considerable, (b.) The future position of the article must necessarily in a measure depend upon the care with which it is prepared for shipment. If care be not taken with respect to dressing, &c, present consumers will doubtless revert to the better known sorts, should a decline in values bring them nearer their reach ; whereas, if New Zealand deliveries continue to be satisfactory, there is a reasonable prospect of such consumers continuing to use an article to which they have become accustomed, and which they find meets their requirements. Thus, with care on the part of shippers, we think it may at least be said that, whatever may be the future course of values, the friction in price between New Zealand and the better-known sorts is likely to be less marked in the future than in the past. With respect to our market-circular, we may mention that the issue is now four-weekly, not fortnightly, and that more or less extended reference to this article is made in each issue. We beg to hand you herewith the four numbers published this year (Nos. 354-7), and in Nos. 354 and 357 you wili observe that attention is called to the futures of the market above mentioned. We may add that any extension of telegraphic-cable construction will have an important bearing on the future course of the market for Manila, and sympathetically for New Zealand hemp. Yours, &c, The Agent-General for New Zealand. Heney M. Paul, Manager.
Enclosure 6 in No. 4. Messrs. Miles Bbothebs and Co. to the Secketaby, Agent-General's Department. Deab Sib,— 79, Gracechurch Street, London, E.C., Bth May, 1889. We are in receipt of your letter of yesterday's date re New Zealand hemp, and have much pleasure in advising you that this fibre has advanced in price in sympathy with the increased value of Manila, which ran up from something like £19 to £50 per ton. This great rise was in no way due to short supplies, as the imports of Manila hemp have been quite as large, if not larger, than heretofore ; and therefore it mast be attributed to increased consumption. Considerable shipments of New Zealand hemp have lately been made to this country ; indeed, during the last six months the shipments have equalled those of the previous two years. We believe that £32 to £34 has been lately obtained for New Zealand, but the market at present is not quite so strong. We think, however, that it will probably keep steady for some time to come. We hope to address you again on this subject shortly. Yours, &c, Miles Beothebs and Co. Walter Kennaway, Esq., Secretary, Agent-General's Department, 7, Westminster Chambers.
Enclosure 7 in No. 4. Messrs. Miles Bhothebs and Co. to the Secketaey, Agent-General's Department. Deab Sib,— 79, Gracechurch Street, London, E.G., 9th May, 1889. In continuation of our letter of yesterday's date re New Zealand hemp, we beg to state that both supply and consumption have very largely increased, and prices now range from £31 for very common to £34 for good Wellington, while for fair to good Auckland as much as £36 to £38 has been paid. Any further information we may be able to obtain on the subject we shall be very pleased to furnish, if desired. Yours, &c, Miles Bbotheks and Co. Walter Komiaway, Esq., Secretary, Agent-General's Department, 7, Westminster Chambers, S.W. [Approximate Cost of Paper.— Preparation, nil; printing {1,350 copies), £2 2s.]
By Authority: Geokcse Didsbuby, Government Printer, Wellington.—lBB9.
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Bibliographic details
NEW ZEALAND HEMP (PHORMIUM TENAX) (INFORMATION RESPECTING ITS RECENT ADVANCE IN PRICE, ETC.)., Appendix to the Journals of the House of Representatives, 1889 Session I, H-17
Word Count
3,406NEW ZEALAND HEMP (PHORMIUM TENAX) (INFORMATION RESPECTING ITS RECENT ADVANCE IN PRICE, ETC.). Appendix to the Journals of the House of Representatives, 1889 Session I, H-17
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