The Dominion FRIDAY, NOVEMBER 19, 1920. TRADE WITHIN THE EMPIRE

Dominion, Volume 14, Issue 47, 19 November 1920, Page 6

The Dominion FRIDAY, NOVEMBER 19, 1920. TRADE WITHIN THE EMPIRE

It is mentioned in one of to-day's cablegrams from London that the Tariff Commission, in a memorandum dealing with quantities rather than values of British exports, has emphasised the decline from pre-war volume. There is no doubt that both in this respect and in regard to the direction of British export trade, existing conditions leave a great deal of room for improvement. Although tho adverse balance has been substantially reduced this year, the progress of the United Kingdom in trade recovery is, on the whole, slow. Its total exports (measured in nioncy values) have to some extent declined in recent months, and the accompanying decline in imports, though it improves the balance of trade, is not an unmixed cause for_ congratulation—it points to a diminishing call for some of the most important raw materials of industry. A.t the same time, there is no sign as yet of the pronounced development of export trade to the Dominions which offers British manufacturers their readiest and most certain means of getting back to conditions of normal prosperity. Tho tables which follow give in summary particulars supplied recently by the Economist of British import and export trade during "the first six months of this year, and in the corresponding periods of 1914 and 1919:— UNITED KINGDOM IMPORTS—JANUARY ' TO JUNE (OOO's OMITTED). 1914. 1919. 1920. From. £ £ £ European countries 148,778 90.674 220,097 United States and other non-European foreign countries 120,619 368,506 499,350 British Dominions and possessions... 106,487 261,899 313,887 UNITED KINGDOM EXPORTS—JANUARY. TO JUNE (OOO's OMITTED). 1914. 1919. 1930. From. £ £ £ European countries 88,940 182,791' 253,465 United- States and other non-European foreign countries 67.V512 64,137 160,474 British Dominions.

and possessions... 99,176 87.828 223,528 On these figures the United' .Kingdom is obtaining a somewhat greater share of its imports from the Dominions than it did in pre-war days, but-while the proportion of its exports sent to other parts of the Empire was approximately' 38 ' per cont. for the first six months of 1914, it was little more than 35 per cent, in .the corresponding period this year.

The position, of course, is materially affected by the groat inflation of money values since 1914. Figures issued some time ago by the British Board of Trade show that United Kingdom exports during the. April-June quarter this ycaT, while they amounted in volume to less thaii three-quarters of the exports for the corresponding quarter in 1913, were valued at nearly three times as much. On this basis of comparison the price of "articles wholly or mainly manufactured" was shown to be three and one-third times as much as in 1913. Two important facts already established,, and no doubt brought out in clearer detail in the Tariff Commission memorandum mentioned in the news to-day, are that in volume as distinct from value, British exports arc'still at a considerably lower level than before the war, arid that pfthis diminished total the proportion consigned to destinations within the Empire is somewhat less than it was in 1914. So far as New Zealand is concerned, imports from the United Kingdom (as well as from some other countries) have shown a considerable increase during the last few months, but it has yet to appear .that this is more than a 'temporary fluctuation, due to the filling of orders long delayed, or that it has any material bearing on the general outlook in the field of inter-Imperial trade. It is clear, in any case, that at a very ■recent date British exporters were considerably short of reoccupying the place they held before the war in Imperial oversea markets. The decline in the total volume of United Kingdom exports hardly admits of any_ speedy remedy, but the falling-off in the relative .proportion of exports to the Dominions points to a departure from sound policy'which the Mother Country and the Dominions are alike interested in remedying. The (exceptional difficulties by which British manufacturing industries are now beset emphasise the necessity of doing everything 'that is possible to foster and develop inter-Imporial trade. There is no doubt that.some of those difficulties would have been averted if British exporters had mado the most of their opportunities in opening up an extended trade with the Dominions. By. this time the

United Kingdom might easily have been disposing within the Empire of a considerably larger proportion, of its total exports than in pre-war days, and in these circumstances it would have been better safeguarded than it is at present against the arrival of bad times. Greater enterprise in extending trade with the Dominions offers Britain decidedly her most promising route of return to normal prosperity, and the Dominions, for the reason that they find their best market in Britain, as. well as on wider grounds, are strongly interested in facilitating and assisting trade development on these lines.