BRITISH TRADE

Dominion, Volume 14, Issue 278, 18 August 1921, Page 6

BRITISH TRADE

HOW NEW ZEALAND CAN HELP A SURVEY OF THE SITUATION FOREIGN ATTACKS ON EMPIRE’S COMMERCE Interesting and important speeches wore made at a meeting of the New Zealand Association cf British Manufacturers and Agents in Wellington yesterday. The speakers, who included the British Trade Commissioner for New Zealand, urged that both self-in-terest and sentiment required that under present conditions the people of the Dominion should be loyal to the Motherland in trade matters. Britain’s commercial rivals, including Germany, were making strenuour efforts to secure trade advantages throughout the world, and statistics showed that an unnecessarily large amount of New Zealand money was being used to buy foreign goods. The Trade Commissioner gave some information about the progress of British industry since the war years. Mr. G. H. Scott, chairman of ti® association, said that the time was opi>ortane to arouse among merchants and citizens in New Zealand a deteimined loyalty aid enlarged sense of duty to the Empire and to tho industries of the Motherland. He proposed that the meeting should affirm: (a) Th.it in the interests of Empire trade and the protection of Empire industries, units of tho British Empire should carefully consider their position in regard to trading with foreign nations who, in consequence of existing policies, practically exclude Empire products. (b) That the time has arrived for the Motherland and tho overseas Dominions in conference to attempt to lay down a policy whereby inter-im-perial trade could best be consummated and conserved. (c) That at the present time the best interests of New Zealand will be served by the expansion of trade within the Empire with preference to Great Britain, and having this in mind, welcomes the Prime Minister’s expressed sympathy regarding the extension of preference. fighting for existence. "If over there was a time for us to focus serious eyes and brains on tho world, the British Empire, and our place in it, it is the present,” said Mr. Scott. "No period in the past life and history of the British Dominions overseas has produced a commercial period parallel with tho present, which is so pregnant with the urgent ncce-toty lor us individually and collectively to give either as citizens or traders in the Dominion serious thought to our position in relation to tho trade and industries of the Motherland. British industries are fighting for their very existence. They are putting up a fight against conditions that are abnormal, against competition and restricted trade arising out of war sacrifices. During the war trade competitors had a free hand in Englands oversea markets whilst she was inakin- the world a safer habitation for us and them. The years of war were years of exceptional prosperity to our Dominion, largely accounted for by England s purchases of our products. During these years we became used to the purchase of certain foreign goods, imported because England’s, war activities prevented her fully supplying us. A great danger confronts us if this increased support of foreign products is perpetuated. Hie time is therefore most opportune for our association to give the weight of its organisation to the service of British industries. There is also the duty at. present devolving upon us to show clearly that to the social and economic development and safety of thia Dominion prosperous British industries are an inseparable necessity. "We inust remind the people of tins Dominion that our individual, national, and economic safety depend enormously on tho trade support they give tho industries of the Homeland. New Zealanders nro proud of the fact that per head of our population we .have purchased more British goods than ally customer of the Motherland, but notwithstanding this splendid fact, we find that the expansion of our purchases from England has not kept pace with our progress and development, which all arc aware was made possible by British financial assistance and other support. The records show that while wo have continued to extend our loans from the United Kingdom for development purposes, concurrently we have not expanded our purchases from her. On the other hand, wo have steadily expanded our purchases elsewhere. In 1910 our loans from the United Kingdom stood at .£57,734,000. During the same years our purchases from the United Kingdom were 410,498,■OOO, a little below per cent, of our total imports. Our largest volume of imports from outside nations is from tho Unite;! States of America, amounting in 1919 to 41,399,000, about 8 per cent, of the total imports. . . . Our imports from the United States had grown "To 44,980,000 in 1918, and to 47,576,000 in 1919, an increase of 441 per cent, since 1910, whereas our imports from United Kingdom increased from 410,498,000 in 1910, to 411,839,000 in 1919. or only about 13 per cent. In the face of these facts can we claim to be expanding our support to our own Motherland and British industries in proportion to the financial aid we receive for our development ? WAR HANDICAPS.

"Whilst Great Britain was at war her chief competitors had almost a monopoly of our markets. At the close of the war wo find Great Britain is practically locked out. (by r.igh tariffs and prohibitions) of tho home markets of her competitors, all of whom use the British colonies nnd oversea Dominions as their best markets. Great Britain’s war sacrifices merit from the overseas Dominions assistance to regain nnd hold her former position. It is vital to producers in tho United Kingdom thaii they should .at least be given assistance and encouragement to get into the full swing of their post-war production, without being undermined during that process. AVe know that England’s production facilities are more than equal to tho demand of the Empire. What. is to bo our attitude to those nations whose tariffs practically lock out British manufactures and our products from their markets and colonies? Is our tariff against them to remain lower than theirs against us? Under any conditions we cannot agree to become tho dumping ground for the surplus productions of foreign nations whoso internal policy makes tho sale of our products and England's manufactures almost impossible in their markets. Little doubt tho people of this Dominion will quickly size up such a position, and will correctly express I heir resentment of the foreigners’ policy by specifying British productions. It is our duty under any circumstances, but especially is it our duty under these circumstances, to advocate at every opportunity ‘Empire trade.’

“Tariff revision will Ixi before Parliament next session. Opportunity will then arise for us to emphasise the claims of British industries, and to im-

press tho Government with tho advisability of collecting from foreign products any additional Customs revenue required. Notwithstanding any assistance granted in our Customs tariff, the most valuable assistance British industries can have is on extension of the sentiment and good-will already existing in New Zealand, brought about by a fuller appreciation of the needs of, and our duty to, tho Motherland. Our trade patriotism expressed in deeds should not fall below the standard of our war patriotism.” This motion was seconded by Mr. F. Moadowcroft and supported by Mr. W. W. Bruce. Both speakers urged warmly that the States of the British Empire, ought to stand together in trade matters They drew attention to tho advantages that Germany was enjoying owing to her depreciated currency, which meant low wages, low manufacturing costs, and cheap goods for export. The meeting was informed that tho Auckland, Christchurch, land Dunedin branches of the association had unanimously adopted tho motion. The motion was then put to the meeting and carried unanimously. H.M. TRADE COMMISSIONER. His Majesty’s Trade Commissioner, Mr. R. W. Dalton, then addressed the meeting. He explained that he could not express opinions regarding questions of Imperial politics, but he felt entitled to refer to certain aspects of the trading position of Great Britain. Although the. United Kingdom had a population of only about 50 millions its total trade prior to the war was greater than that of any other country in tho world. In view of cbnshint criticism of British methods during tho last 25 years or so, it was well to remember the fact that in spile of her alleged inefficiencies the United Kingdom still remained the greatest overseas trading Power in the world before the war made overseas trade of less importance to Great Britain than the safety of the world. British exports, in 1913 amounted in value to some 4525,066,006, and about 80 per cent, of the total consisted of manufactured goods. “You know that in spite of my knowledge of the overwhelming difficulties which the war created and which have continued since in almost greater decree, I have always been optimistic as to the ’possibility of our recovering the ground which had been unavoidably lost,” said Mr. Dalton. "Personally, I do not like to use war or post-war statistics too much for purposes of argument, because those years were abnormal, and I think we shall not reach quite normal years for some little time yet, but one cannot ignore the importance of the fact that in 1920 our total exports of manufactured goods were valued at 41 121 000,000, or nearly 4300,000,000 more than those of our greatest competitor. This was a truly magnificent achievement, and oven if one takes into account) ;the abnormality of the under review one cannot but admit that this fast in itself « wvoof that far from tho United Kingdom being in decay as an industrial and overseas trading Power, her capacity for production and export would seem to have greatly increased rather than diminished. . ■_ ■ The day of British commercial enterprise is not ‘past, nnd one of my reasons for dwelling on this matter is that I should like you and all New Zealand to feel confident that the undoubted preference which you show in all things British is not misplaced, that you are leaning pn no broken recd, but that your choico has been made where it is safest. "It is occasionally suggested that the theory of tho development of interImperial trade is unsound because the overseas Dominions and possessions could not absorb the exportablo productions of the United Kingdom. A reference to available statistics shows that the total imports of all classes of goods into tho Dominions and other British possessions in 1913 amounted in value to 4563,000.000, or about 440,000,000 more than the total exports from the Mother Country in that year; the imports from foreign countries into tho Dominions and British possessions in Hie same year amounted in value to about 4244,000.000. Ido not suggest for a moment that it would be possible, or even perhaps desirable for the United Kingdom or other parts of the Empire to secure the whole of this trade, but it will be seen from the figures that there is plenty of room for improvement on tho position as it existed immediately before the war. Ihe United Kingdom’s share of the trade ot New Zealand has declined as a result, of the war, and in other parts of the Empire a similar decline has taken place. inter-imperial relationships. "The spirit of your resolution shows that as an association of agents you are in favour of an increase of juter-Im-perial relationships, and I Relieve that this is a feeling which is, general throughout New Zealand. The point that wo are concerned with to-day, then, is whether, in fact, Great Britain, is able or likely to bo able in the near future to cope with the demands of Neu Zealand and other parts of the Empire on a competitive basis, and whether her manufacturers arc willing to put forward the effort which will be necessary to recover ground which has been lest. I have already shown that in the year 1920 our export's showed a most remarkable increase. The conditions under which the trade was done were certainly abnormal, and some of you in New Zealand, if not in this association, think, I am afraid, that the extent of the trade in that year was due to deliberate overshipment. I do not propose to deal with this aspect of the situation now, not because I have any fear in dealing with it, but because I have already dealt with the subject most exhaustively in a report which will shortly be published, and because it has really nothing to do with the mutter now under considera.tion. The fact that I want to bring out in connection with these figrares for 1920 is that in spite of the necessity for entire reconstruction after the war, in spite of an enormous home demand, in spite of unprecedented difficulties in the way of production of any kind, aud in spito of constantly recurring labour troubles, our exjwrts, in a year beginning less than fifteen months after the armistice, amounted in value to more than 41,100,000,600. This should be ample proof that dur capacity for production remains at least unimpaired; personally, believe, from my own experience of jxist-war conditions and from direct evidsnee, tliat our capacity for production has very largely increased. I think no one will contest that point. So that if my estimate of the position is correct, we’ are certainly able to cope with overseas trade, so far as supplies are concerned, to a greater extent aven than we ware before the war. BRITISH ACTIVITY.

“Are we then ready to become more active in our search lor overseas trade? I have told yon in previous speeches that I believe that the allegations of lack of interest, which we had to meet before tho war, wore due, in tho main, to the fact that British trade overseas had become almost automatic. The war has altered all that. In addition to having a greater output to dispose of, bringing with it a need for greater markets our overseas trade has suffered a set-back owing to our comparative absence from overseas markets for a period of six or seven years. Even during tho lost two years of abnormal demand from all home and export markets, we have had ample evidence that many British firms disregarding the abnormal conditions, and not deceived by them, have b<-en carefully planning, and to some extent carrying out their plans for a more assiduous canvassing of export markets. And in addition to all this, the Imperial Government is taking a much greater interest, in the development of export business. Those of you who have bren Home since the war have seen for yourselves the activities of the Department of Overseas Trade in Loudon and their anxiety to help the development of export business. You have also been able to gather from cable information something of the extent of the interest

which the Imperial Government is taking bv organising the British Industries Fair by developing overseas organisations’, and in oilier ways, with a view to giving every opportunity to British films to recover lost ground and keep it. Jho work of niv office increased by 100 per cent, last year, and this year, in spite of restricted trade, it shows a further increas?. All this must be to the good. “While on this subject, may I say that 1 should like you all to realise that in helping you when you think 1 can, I am helping on that purpose for which I urn here, viz., the development of Bnt-L-h toede with New Zealand, and I sk-.uld like vou to come to me freely when vou Have anything to say, believing that; I am only too glad to be able to help you so far as I properly can In ex-inin'ng economic conditions of trade we are r.nt to regard trade as an inanimate thing, whereas, as a matter ot fact, it is’ supt’-mely animate, because it depends so much on the personality and psveliolcgy of individuals. Every order which you receive, every new association with British firms which you as individuals and as firms establish, means a further step on, the road towards the achievement of the ideals expressed in your resolution. If we all bear this fact in mind, and if wo all believe, as 1 think we do, in the desirability of the extension of British trade, it will not be long before Great Britain s share cf the trade of New Zealand is even greater than it was before the war. The meeting accorded 1 Mr. Dalton a hearty vote of thanks for his address.