WAR AND TRADE

Dominion, Volume 9, Issue 2864, 31 August 1916, Page 9

WAR AND TRADE

DUTY OP PATRIOTISM HOW N.Z. IS AFFECTED A TRADE COMMISSIONER'S , ' REPORT Interesting and important comments upon New Zealand trade during ' the war period aro contained In a, report prepared for tlie Imperial Government by Mr. W. G. Wickham, late British Trade Commissioner in this country. Copies of the report have been received by Mr. R. W. Dalton, the present Trade Commissioner. The document makes a general survey of the conditions prevailing in 1915, and discusses the disabilities inflicted upon British manufacturers by the war, in comparison with their foreign competitors. Mr Wickham draws attention to th« profits derived by New Zealand from the war. "So far as New Zealand is concerned, the year 1915 has been, speaking generally, one of overwhelming prosperity," ho writes. "The cost of production of the staple exports oi the Dominion has not been materially increased by the war, while all the more important products have been maintained at price levels which have in many cases multiplied profits many fold. This fact is obvious from the most superficial study of the export statistics, the quantities of meat, wool, and dairy produce being about normal, while the values are greater by aB much as twenty or even thirty per cent. . . . There has been little or no sign of private retrenchment, all the luxury trades, as well as those in necessities, being fully normal. . . The most important direction in which public retrenchment has, been evidenced is_ railway development, particularly in connection with the urgently required terminal facilities at tlie chief ports."' The organisation of the industrial forces of the United Kingdom for the manufacture of munitions, and the prohibition of export in some lines, have handicapped British firms in maintaining their New Zealand trade, and Mr. Wickliam emphasises the fact that foreign countries are taking advantage of the opportunity thus .afforded to _ them. _ "The. war has effectively stimulated trado with America and Japan," he ,says. ."From,the former,- travellers in search of business and offering new agencies have come to New Zealand in unusual numbers. . . . Almost all orders for electrical machinery from publio bodies and Government have during the year gone to America. A large part of the trade in _ motor-cycles, hitherto an entirely British preserve, has gone across the Pacific, while orders for motorcars which' would have gone to the United Kingdom or other parts of Europe have similarly been shared by makers on the American continent. Japan also was early in the field. Importers have been inundated with samples-and offers of business in all classes of textiles, fancy goods, glass, china, earthenware, leather goods, etc., particularly in goods previously supplied ' from Germany."

The Trade Commissioner has no doubt that ..the position of the British manufacturer in the New Zealand market is being prejudiced by the activity of tho foreigners at a time when the workshops and factories of the United Kingdom are concentrating their efforts on the winning of the war. . "Tho facts must be faced, and, as far as possible, made krlown," he writes." "Some importers have transferred their custom to foreign countries in a purely commercial spirit, buying their requirements from the most obvious and cheapest available source. Others, again, have done so from sheer necessity, and with the utmost reluctance. In either case they have made the acquaintance of new suppliers, and have at least temporarily severed old connections and established new ones. The leeway which will have to be made up after the war before British manufacturers can get back oven their normal pre-war share of the trade of the Dominion will be serious, and it behoves them to do all in their power now to minimise this."

The British manufacturers, in the opinion of Mr. Wickham, can assist themselves materially by letting the people of New Zealand know the actual lacts of:tho situation, and bo appealing to the patriotic- sentiment that tho Dominion has shown on many occasions. Firms now occupied entirely with the production of munitions, and so precluded from exporting, should make known the fact to their New Zealand customers, not only to importers, but also to consumers. "Those manufacturers whose goods are still available, but whose prices are seriously enhanced, should take care to give ample explanation of the reasons," adds Mr. Wickliam. "Unreasonable buyers and trade rivals betwoeni them havo done ample mischief already- in explaining advances in prices as 'extortionate,' 'trading on the patriotism of the Dominion,' etc., and it is a matter of importance that- manufacturers should give the actual facts in as much detail as possible, e.g., tho actual advance in price of raw material, number of staff enlisted, increased freights, war taxation, and so on. ... Few people not directly connected with militarr. .supplies realiso in the least tlio multiplicity. and variety of things required for the Army and Navy."

The importance of the point raised by Mr. Wickham is emphasised by information which is finding its way into commercial publications in 'the United Kingdom. It is a fact that faiany British manufacturers, who under normal conditions would bo .exporting goods to. New Zealand and other parts of tho Empire, have sacrificed their oversea trade for the time being in order to accept orders from tho War Council at a fixed percentage above the cost of production. The profits on those war orders are cut very lino, and the firms would be much better off in a financial sense if they served their ordinary customers. But they willingly play their part in the mobilisation of the industrial forces of the nation for war. The case might be cited of a big toy factory, which is devoting all its plant to the production of parts of shells. Meanwhile foreign manufacturers are bidding not merely for tho toy trade that used to bolong to Germany, but also for the share enjoyed by the United Kingdom. Tho British firm owning that toy factory is not compelled to manufacture munitions; it has simply enlisted itself for national serviee, and must count upon the patriotism of its customers for the maintenance of its trade connections.