17

H.—2B

Hemp.

The general conditions ruling in the hemp-market during the twelvemonth may be briefly summed up by saying that the market has mostly been " quiet but steady " at the reduced rates prevailing. While prices have been down to £18 ss. for fair grade, and £19 10s. for good fair, however, there has been almost an entire absence of anything in the nature of spurts, quotations generally keeping within remarkably narrow limits, and remaining for weeks at about the same level. For the first five months of the period under review quotations for fair current Manila hemp ruled from 10s. to 355. per ton below those for New Zealand good fair, and for a good many weeks our fair hemp was fetching from ss. to 10s. more than Manila. One fact that stands out prominently in reviewing the events of the year is that sellers in New Zealand have not, as a general rule, been at all keen to do business—indeed, on occasions offers from the Dominion have been practically impossible to obtain. There is no doubt that this firmness on the part of shippers has, in a great measure, helped to keep the market together. The total shipments from the Dominion to the United Kingdom for 1911 were 19,370 tons, as compared with 20,750 tons arriving in 1910. At the beginning of April the market was very quiet, and little business was doing, hemp from the Dominion selling at £20 for good fair and £19 ss. for fair. Dull conditions continued with very little change in values until the end of May, when the Manila market firmed up owing to an improved American demand and an advance in sisal-hemp prices. This improvement was reflected on New Zealand values, which by the first week in June had reached £20 15s. for good fair and £19 15s. for fair, while Manila was fetching £20, on spot. Forward shipments all round were higher. By the beginning of July another ss. advance had been gained on New Zealand hemps, which just about managed to hold their own, the market being still on the quiet side. During the month the article was practically neglected, and accordingly the beginning of August saw a decline of about 10s. all round. Offers for forward shipments ranged nominally about £19 to £19 15s. for fair, and £20 15s. to £21 for good fair. Holidays and the labour troubles interfered with trade in general, and early in September, £19 10s. and £18 ss. were the average values of good fair and fair respectively, prices recovering ss. the following week. Millers in the Dominion were not at all keen for forward business, preferring to stand out for higher prices, but in the middle of October some small business was done on the basis of £20 10s. to £20 15s. for good fair and £19 10s. to £19 15s. for fair, for shipment from November to January and December to February respectively, spot quotations being about 10s. to 15s. below these rates. November opened with demand extremely dull, but towards the middle of the month there was rather more inquiry, and a fair business was done, values being £20 for good fair and £19 to £19 ss. for fair. The difficulty of getting offers from shippers in the Dominion continued through December, and somewhat restricted business. There was a fair demand for parcels in dock or near at hand, and the tendency before Christmas was firmer, with prices at £19 10s. for good fair and £18 15s. to £19 for fair grade. At that time it was reported that the Mexican Government's valorization scheme in connection with sisal hemp had been successfully arranged, and on confirmation reaching this country both New Zealand and Manila hemp experienced a sharp advance of from £1 to £1 10s. per ton, a good business passing at about £21 ss. to £21 10s. for good fair and £20 15s. for fair on spot. The quotation for fair current was then about £21, and during January a further advance of about 10s. to 15s. per ton was noted both in manila and sisal values, New Zealand also appreciating, though the high prices somewhat restricted business in the latter. Towards the end of the month the market became rather less active all round, and quiet but steady conditions continued into February, quotations sagging about ss. per ton. Offers from New Zealand were still difficult to obtain, and forward-shipment prices were slightly in advance of those on spot. The demand was chiefly on account of American and Canadian, buyers, consumers in this country still holding back; and these conditions continued till about the middle of March. A slightly firmer tone was noticeable then, and quotations were fractionally higher, chiefly owing to the continued demand from America. According to one firm, nearly five thousand bales of New Zealand hemp were imported into New York since the beginning of January. The close of the official year witnesses demand again quiet, with very little business doing, and am inclination on the part of sellers in the Dominion to meet the market. It is interesting to note that the average prices for the year, as cnbled to Wellington weekly, work out at slightly over £20 10s. for good fair, £19 for fair, and £20 ss. for manila. Early in the year, as instructed by the Department, inquiries were made as to the likelihood of a demand for fine or superior hemp, if sent forward from the Dominion, at remunerative prices; but the general opinion amongst merchants and others here was that unless these grades could be obtained at relatively small advances over good-fair grade it would not pay millers to send to this market, as higher prices could invariably be secured locally under present conditions. Inquiry was also made as to the future prospects of the manila-hemp industry, and, although opinions are very divided on the point, it is generally believed that as long as there is sufficient labour to carry it on the industry will thrive. As regards the effect of the present low prices on production, there was found to be an equally great divergence of opinion. Full information was embodied in a report and duly forwarded to the Government. In November last a new form of contract for use in the manila trade was drawn up, containing new clauses governing the weight upon which hemp was to be invoiced and paid for. Copies of the new form were obtained and sent to Wellington, together with full explanation. In the same month the leaflets containing particulars of the Government's offer of a bonus of £12,000 in connection with improvements in the dressing and preparation of New Zealand hemp were received, and copies are being circulated as widely as possible amongst those likely to be interested.

3—H. 28,