The month opened with demand drafts on New York offered at 8% premium and telegraphic transfers at 9%. A fairly steady demand from merchants in the face of a scarcity of export business gradually pushed rates up until they reached 14% and 15% about the middle of the month.

At this level, as in former similar instances, exporters came strongly into the market and although the demand was fairly well maintained, rates gradually dropped away to 8% for demand and 9% for telegraphic transfer. This report closes on the 27th instant with the market at that level.

As indicated above, the Government has not been a factor in the market during the period, having not been in a position to sell exchange since June 24th.

The action of the United States Congress in granting permission for the increase of the

berth, no difficulty was experienced in filling all tonnage available. The Pacific Coast berth showed no signs of improvement over the previous month, either outward or homeward, while to make matters worse, more tonnage, in the form of high class passenger and cargo steamers of large capacity, are being constantly added.

Effective August 3rd, the overland rate on hemp to points East of Chicago will be reduced to 85c per 100 pounds, thus putting the Eastern rate on a par with that now in effect to Chicago and points West. The reduction operates to make a through rate of $3.33 per bale to practically all of the United States, and while this is slightly higher than the all-water rate to New York and Boston, it is cheaper to all other points, and it is hoped that it will speedily restore to the Pacific Coast the trade driven to the Atlantic on the inception of the high overland rates. It is also expected that proportionate reductions will shortly be made on other commodities listed in the Export and Import tariffs.

Passenger traffic Westbound is showing a considerable falling off, and, while homeward bookings are still brisk, reservations for future sailings are easing up. Although cargo rates have fallen to about pre-war figures, passenger rates have been fully maintained, but it is thought that the end of the year will witness some reduction.

NOTES

Mr.

The new Shipping Board, appointed to office the end of June, is made up of the following members:—A. D. Lasker, chairman, to hold office for six years; T. V. O'Conner of Buffalo, to hold office five years; G. E. Chamberlain of Oregon, four years; E. C. Plummer of Bath, Me., three years; F. I. Thompson of Mobile, two years; M. Lishner of Los Angeles, one year; Admiral Benson, one year. Lasker is an advertising man, Mr. O'Conner is president of the Longshoremen's Union, Mr. Chamberlain a former U. S. Senator, Mr. Plummer is attorney for the Atlantic Carriers Assn., a group of schooner owners, Mr. Thompson is a publicist, Mr. Lishner is a politician, and Admiral Benson, the former Chairman of the Board.

Immigration Law. Law. Only one twelfth of these numbers may be admitted any one month. The figures are:-United Kingdom, 77,206; Germany, 68,039; Sweden, 19,956; Norway, 12,116; Denmark, 5,644; Netherlands, 3,602; Belgium, 1,557; Luxemburg, 92; France, 5,692; Switzerland, 3,745; Danzig, 285; Finland, 3,890; Africa, 120; Portugal, 2,269; Spain, 663; Italy, 42,021; Russia, 34,247; Aus

tria, 7,444; Hungary, 5,635; Rumania, 7,414; Bulgaria, 301; Greece, 3,286; Czecho-Slovakia, 14,269; Jugo-Slavia, 6,405; Albania, 287; Fiume, 71; Poland, with Western Galicia, 25,800; Eastern Galicia, 5,781; Australia, 271; New Zealand, 50. These figures represent three per cent of the various nationalities now in the United States as shown by the 1920

census.

W preaved markets in the Hemp Trade. pressed

E have to again report a month of de

Things have steadily been going from bad to worse and conditions as they exist today are about as hopeless as they ever were in the history of the Hemp business. The American market has simply collapsed and prices ruling there are just about 3c per pound lower than they were during June. The London market, which throughout the month has ruled quiet, shows a decline of roughly £3 per ton. The drop in prices is perhaps best illustrated by the table below:

At writing, stocks in Manila and Cebu amount to 367,000 bales. The bulk of this Hemp has been in store for a year or more and has cost the holders very dearly. At a reasonable estimate, we should say that the stocks since a year ago have depreciated in value about 25,000,000.

There are very few things confronting this country at the present time of a more serious nature than the Hemp situation. The losses on stocks have been made and must be faced. The question arises, what is to be done to safeguard the future? In our opinion, there is only one thing that should be done, and that is curtail or entirely stop the production of Hemp until such time as existing stocks are reduced. There may be reasons, of course, why this is not feasible; but we venture our opinion believing that it is at least worth considering.

Beginning September 1st the Government has ruled that grades J and below will be abolished. The law was apparently created and passed with a view of protecting existing excessive stocks of U. K. grades. We, ourselves, fail to see how this can possibly result. It is a well known fact and no secret-that from 40% to 50% of the Hemp lying in warehouses here and in Cebu is of such a quality as to make it entirely unfit for either roping purposes or for the manufacture of binder twine. This fiber, which has deteriorated in strength and color owing to long storage, can be used for paper making. All those so unfortunate as to be interested in this rotten Hemp should make up their minds to face their losses and relieve the present very unhealthy situation.

Among exporters the opinion prevails that the Government did not act wisely in doing away with lower grades. They are wanted by English ropemakers who have used them for years past. If they cannot get a cheap Manila fiber there is a possibility that they will look elsewhere for their supply of raw material. These Islands have enjoyed a monopoly denied every other country in the world; but we must not deceive ourselves and come to the conclusion that the world cannot get on without Manila Hemp.

Sisal in the New York market is nominally quoted at 6c.

The price of rope was recently reduced from 121⁄2c per pound to 11c per pound.

Freight rates on Hemp from Cebu to the Pacific Coast have been lowered from $1.50 per bale to $1.00 per bale, which is the same rate as from Manila. The market is quiet with plenty of tonnage available.

This decrease in the domestic consumption is of course due to the consumers' lessened purchasing capacity. "The great destruction of wealth during the world war" has been worked to death. The probable cause of today's stringency is our failure to conserve our wealth during the past few years of prosperity. Local business is improving-June sales show an increase of 43% over the previous month.

While the average decrease in the consumption of cigarettes during the months from January to May is 16.5%, this in reality does not all represent decreased demand, as during the months of March and April the decrease (which can only be calculated from the output of the factories) is accounted for partially by the labor disputes which restricted the output during those months. The month of June, 1921, shows an increase of 9.4% over the consumption during June, 1920, the first ray of sunshine this year.

STATEMENT OF CIGARettes Consumed

Value Increase 13,871,390 P 148,623.00 1917.. 32,796,723 1918.. 59,150,200

253,602.00 137% 460,246.00 80% 1919.. 71,919,152 654,793.00 22% 1920.. 128,747,849 1,217,353.00 79% Jan.-June 1921.. 130,146,481 1,299,716.00 202% From the above it will be seen that the consumption of imported cigarettes has nearly doubled each year since 1916. During the first half of the present year, imports have already exceeded the imports for 1920. Assuming that the imports during the last half of the present year equal the imports during the first six months, the increase will be 202% over 1920.

The average decrease in cigar export shipments made during the first half of 1921, as compared with the first half of 1920, is 76%, as shown by the following: COMPARATIVE STATEMENT OF CIGARS FOR EXPORT 1920 1921 Per cent 32,747,196 8,511,743 74% 26,496,829 9,245,963 65% 40,540,796 6,622,560 83% 33,340,450 5,176,825 81% 34,981,007 9,987,135 69% 37,098,004 5,752,831 84%

January. February.. March.

April...

May...

June..

While these figures are alarming, it is gratifying to know that the bottom has been reached. That the millions of cigars in the United States which were thrown back on the manufacturers during the early part of this year are gradually being absorbed is conclusively proven by the fact that importers are again making inquiry, and that some orders are being placed.

Local manufacturers are in part responsible for the existence of that damaged stock by their failure to exact irrevocable letters of credit covering the orders accepted, or to satisfy themselves in regard to the responsibility of the importers from whom they accepted business. American importers in turn are also partially responsible, because the majority of them not only placed orders far in excess of their requirements, but were guided entirely by the question of price in placing their orders-brand names and factory labels meaning practically nothing. During the year 1920 importers placed orders in millions of cigars-the number of millions being governed entirely by the degree of modesty displayed by the manufacturers in estimating their output. On a whole, however, although the tobacco industry has received a tremendous set back, the lessons taught will in the end react to the benefit of all legitimate operators, both here and in America.

That the present demand in America is for Class "A" cigars is clearly shown by analyzing the shipments made during June.