206 THE FLAX SUPPLY ASSOCIATION. 



big harvest is ensured, prices go down with a rush, the difference in the rate 

 between the opening months of the year and the end of the season is nearly 

 20 per cent. 



This is, perhaps, one of the most unfortunate events in connection with 

 the Irish flax industry which history will have to record ; and looking back 

 dispassionately at all the events which led up to it, and the critical position 

 of trade prospects at that immediate period, it is difficult to see how things 

 could have turned out otherwise. In the early months of 1864, prices were 

 at a fairly encouraging level, and the prospects of a supply of cotton were 

 so gloomy, that it is not surprising the Irish farmer over-estimated the 

 reasonable possibilities of an increased demand for flax. There is this much 

 to be said in their favour, the sowing-time was at hand, and the farmers of 

 one district, knowing little of what was going on in other districts, and having 

 no very clear data to guide them, made a very natural mistake ; one course 

 only could have helped to keep up the price of flax, viz., speculative buying 

 and storing up ; but this was evidently too risky to find favour with capi- 

 talists — a collapse of the war in the " States," or another crop in Ireland 

 approaching the one in question, would have led to a very great loss. 



The flax-grower did not, however, repeat his mistake, for in 1865 the 

 area sown with flax seed fell off 16 per cent., and the harvest-time being 

 unfavourable, the total production was still further reduced — the result was 

 a supply 23 per cent, smaller than the previous year's. The effect of this 

 was that prices again took a sharp turn upwards, and remained excep- 

 tionally high during 1866 and into the spring of 1867, notwithstanding that 

 the supply was fully equal to the demand. 



Enough has been written in relation to the raw material to indicate what 

 preceded and partly led up to the formation of the Flax Extension Asso- 

 ciation in 1867 ; but another side of the subject not yet touched upon has 

 still to be dealt with ; the business of the spinner and manufacturer is two- 

 sided — his wares have to find a profitable outlet, and the difficulties he has 

 to contend with in this direction are as pressing as the acquisition of raw 

 niaterial, if not more so. 



The export of linen manufactures of all kinds from the United Kingdom, 

 which had been steadily increasing from 1861 till 1866, began to flag. The 

 value of these exports in the first year named was ;£'3,852,34i ; in 1866 it 

 had risen to ;£^9,576,245, an increase of 148 per cent.; during 1867, how- 

 ever, there was a falling-off exceeding two millions sterling. This pressed 

 with telling force on the entire trade, and the idea spread rapidly that 

 something should be done to steady and, if possible, increase the supply of 

 home-grown flax. The following advertisement which appeared in the Bel- 

 fast papers brought the scheme into public notice : — 



" Having been requested to appoint a day of meeting to discuss the 

 desirability of forming an association for the extension of the growth 

 of flax, I hereby invite all who take an interest in the subject to meet 

 me at the Chamber of Commerce on Friday, the i6th inst., at i p.m. 



"1867." 



" John Lytle, 

 " President, Chamber of Commerce. 



