WAR AND TRADE

Dominion, Volume 9, Issue 2862, 29 August 1916, Page 7

WAR AND TRADE

EFFORTS OF THE FOREIGNERS

POSITION IN N.Z,

BRITISH .MANUFACTURERS HANDICAPPED

•Is New Zealand allowing foreign traders to secure a footing in her markets while the British manufacturers aro busy winning ' the 1 : war? .. The question has been asked in commercial circles, lately, both hero and in the Mother Country, and the answer has. not always been comforting from tho point' of view of those who wish to- see trade retained within tho Empire. The representatives of foreign ilrmf undoubtedly, are very, active in the Dominion at tho presont timo, and though' nominally they may be merely bidding for business that Germany enjoyed before the war, they are competing, in •' fact, with the British manufacturers. They aro placing agencies and creating interests that will still exist when the war has ended, and they are even succeeding, in some instances,-in arranging 'contracts that' will'continue long - aftep the last shot has beeil fired, lie foreigner, in short, is showing an entirely legitimate desire to take full advantage of the openings that thei ,war has placed, in his way. ; . Tbo manufacturers of the' Mother Country, oil. the other hand, are conducting their business under a'serious handicap during the war. period. The War Office and the Admiralty have first call on their services, and the major part of their, resouroos are' devoted to the task of making possible ,the victory of the British Empire and its Allies. The British factories and workshops are produoirg' munitions and : supplies ■ not only - for > the mighty armies of-the Empire, but-.also for the forces of Russia, Belgium, and Serbia.,' The war work cannot wait; it takes precedence, all the time. The ■Imperial Government/moreover, has found it neccssaTy to prohibit the export of various products and articles required for war purposes, aiid there is no desire to appeal from its ruling. The British manufacturer, ; confronted with one. of these prohibitions, niust ' leave his foreign competitors- in • possession !of clear. ■ fields . . for .the, time 'toeing, while he willingly concentrates ; 'his . attention on the Leeds of . the armies. If his plant ,is not required for war contracts,' and if his products are'not taken by the State, he may. have to work short-handed, and perhaps.part with many of'his best workmen, because men aro needed in the ,+renohes. These aro some of the .difficulties that hamper.the manufacturers of the United Kingdom in their effort to supply the overseas markets. "There is no.doubt at all about the activity-of'the foreigners," 6aid a Wellington merchant' to whom the roattor was , mentioned by a Dominion reporter yesterday. "The Americans and the Japanese realise, that they ihave an opportunity' in thi3 country that is not likely to reour. _lThei war las out off German and Austrian trado. iand ! some' French trside ae well, arid has interfered with British trade with •New Zealand. But high' prices rule . for our produce, 'and tho people of .this country have plenty of money to spend, «s the tirade statistics, show. Frankly, ■they are not particularly? concerncd about the origin of the goods' they buy, -provided that tho' stuff has not tho German taint. Tho position issometimes difficult from the point of view the merchant \,\yko holds British' agencies, '.or' tho 'retailer'who is ao.customed to handling British goods, ■Tho manufacturers of the United EngIdom have performed and they continue, despite the' stupendous de. mands made upon them in connection with the war, to supply lis with many of tho articles, that wo require. But they cannot supply everything, and ■they cannot always deliver' as promptly es we would wish—or as they would •v.'ish .themselves. . They have not had timo to market' their . productions of lines imported previously from enemy countries, but these productions da exist. The Americans and the Japanese have seen their chance, and like •good business men they are. taking adVantage of it. "I ought to say, as a sepresentativo of British manufacturers, that many of the New Zealand traders display sound patriotism in their business relations. They recognise that tho factories and workhopß of the United Kingdom aro. engaged in the -most important task .of all at; the present time, and they will not transfer their custom because difficulties arise. They recogniso that tho manufacturer ■ is making sacrifices in the national cause, and they also aro prepared to'makesacrifices, pending the day when normal conditions are restored. Perhaps thero 'are other New-Zealand traders who' . are lending a' rather ready ear to the plausible .arguments of-tho" foreigners, who may bo quite sincere when tallc of supplanting the Germans, but who are just as ready to supplant their British competitors. Much depends upon the attitude of the general public. .If buyers resent-a little inconvenience, and demand to ho supplied in war-time with the goods they 'used to buy,' they add to the troubles of the British manufacturers and play into the hands of our trade rivals." ;

Other businoss men spoke in a similar strain. They admitted that New Zealand's actual needs must be supplied, and that goods must bo brought from without tno Empire' if ■ British firms, could not supply thorn. Ordors prohibiting exports from the -United Kingdom nave cut right across New Zealand trader in some instances, and imjwrters have had no option but to look elsewhere for supplies. "But that fact," "said one gentleman, '"is' scarcely a good reason for accepting foreign agencies ; that are , to take the place of connections with British, minufaoturersj now' temporarily engaged in war work .and therefore unable to protect their interests-in the Dominions ovor-so-1." Recently tho Imperial- Governmi it ha/S prohimted tho export of tin plates from tho United. Kingdom., The meat works and fruit-cajining factories of New Zealand must have tin plates, and since stocks aro not large, it may be assumed that orders will be sent to the United States, where the output of tin plates is large. This is an illustration of a.n unavoidable transfer of trade.' But there are other cases, it is stated, where foreign, firm's liavo received order's from this oountry simply because British manufacturers could not offer quite such favourable terms in 'war-time as their foreign competitors. -The British Trado Commissioner (Mr. It. W. Daltcn) told a Dominion repre. seiitative; when tho subjeot was monto him yesterday, that he did not wish at present to say nioro than lie had already specifically said regardiv,g foreign trading efforts in New, Zealand markets. Tno matter was governed by considerations of policy and patriotism, as well as of national interest, and these were .-publicly referred to by him soon atfer his arrival in New Zealand. "But I can say this," added Mr. Dalton: "The linos of trade in which foreign countries havo shown most activity during tho war period aro essentially the lines in whicn tho manufacturers of the United Kingdom will 6how the most rapid recovery whou tho war Is over. I make that state, ment with knowledge of what has happened sines the outbreak of war, and of developments that are proceeding.

Tho British manufacturer, as I said some time' ago, will bo prepared to iricet the demands of all liis customers after lie has helped the armed forces of the Allies to win the war. He is serving the Dominions as well as tho United Kingdom at the present time, and his concentration upon war work handicaps him to somo extent in handling ordinary trade. I feel sure the people of; this country recogniso that fact, and are prepared, to sea that the manufacturer of the United Kingdom is not prejudiced unfairly by anything that is occurring to-day.