RECOVERY FROM WAR CONDITIONS

Dominion, Volume 14, Issue 48, 20 November 1920, Page 9

RECOVERY FROM WAR CONDITIONS

: "UNEXAMPLED GROWTH AND DEVELOPMENT" . The history of British commerce (luring the 19 montl* onding July 31 is a record .of unexampled growth aiul development. A scrutiny of the export figures published •tor each of these 19 months shows clearly the reality of British reconstruction (says the Bulletin of the Department of Overseas Trade). It is, of course, difficult to compare either the total volume or value, of exports for different months during this • period, owing to tho great changes which. have taken place in . prices. JJy reducing tho quoted total value of exports in inverse, ratio,to the rise .in the. Board of Trade index' number of wholesale prices (which, is based on the quoted prices of imports and exports) it is, however, possible to make a rough comparison with any particular period. Calculations on this basis show, that during the-19 months, January, 1019,. to July, 1920, British cxporfe have practically doubled in volume—i.f., when the' quoted values are reduced to the average iovel of prices in . I'jl3, the resulting value for July, 1920, is approximately double that of January. 1919. ' / " In order to / Ascertain the relations which the imports and exports' of tho 'current" year bear to those of the prewar period, a calculation has b'cen made by the Boat;d of Tili'de of the approximate value of tlio trade of the' first half of 1920 on the basis of values'.in' 1 1913. Each class of 'commodity lhaSlng up the imports and exports this year has been taken at the same average value as re-' sulls from (ho comparison of the dc-, olnred quantities and values of the first •half of 1913. In. eases in which quantities aro not returned, or- tlio unit o! quantity has been'modified, the best. estimates available have licen used to complete the calculation. Js'o allowance is, of course, possible i'or cliangos of quality or character, whatever their effect on values, where.the, description of the commodity remains the name. The results nlifainedare, accordingly, only, approximate.. These slTow that during Ui'o.iirst quarter of this year, the export ol' British pro- ; duce'-equalled' 71.3 jjjsr cent, of ' the corresponding quarter in 1913.' find' for. the secdTrf quarter 73.5 per cent. During this period of reconstruction various difficulties have been experienced in connection with the distribution of exports to various markets, and from several areas complaints have been received that the needs of buyers were being neg : lected. Tho reduction in the proportion of British exports going to various territories was adduced as evidence that old friends woro being forgotten ill tho interest aroused by the new. While there la much which appears to show that tho reproach is not entirely unwarranted, a, move complete view of nil the facts shows that, it was not; lack of interest which deprived these territories of the supplies so' urgently needed,' but hard, economic facts, the strength .of which could only be overcome aftor a long period 'l'hat tho difficulties ol far-distant markets were fully appreciated, nnd were the cause of considerable anxiety to tuanufacturers and traders in the United Ivinsfdonij is abundantly shown by letters which the Department of Overseas Trade lias' received from trade associations and prominont business firms. The principal difficulty which Jay m the w<SV of a rapid growth in the exports to tlio moro distant markets was lack of shipping, 'owing to the losses suffered during the war, -nnd the large amount ot shipping which was employed lor many months after' the armistice was signed in repatriating . American, and Dominion troops.- ■ • ' , • For many months great difficulties were experienced in sending representatives to the distant markets, _ whereas, it was comparatively easy and inexpensive to get into infTmato toucu with the nearer mar-, kfts. Similarly, buyers in need of sup-. plies found more difficulty in travelling from far-distant markets to the United Kingdom ' than those on tlie Continent of Europe. ' . • '' During the period under review, jonsitioraVlo progress has been made in filling up tho gaps m shipping caused by losses Buffered during tho war, and the repatriation of froops has been practically com-' plete for some coiisitrerabTo time. The assail is plainly .vislole in *he statistics,, winch show not only tin increase in the total amount of exports, but a constantly increasing proportion going to the distant markets, until during the second quarter of 1920 most of flic important marKets were receiving approximately their pre».vnv proportion, of flic total Britisii exP °\no~cr difficulty which lias considering' .hiimpercd ..the growth of British exports to ilisfant markets, was that of quotijiS firm prices over a long period at a time wl-l'n prices were .vfalently lluetuatin<r' AJuiough this is sti'll a difficult}, it "has "o some extent been overcome by the custom of making provision in all contracts for price revisions in certain • eventualities.