BRITAIN'S TRADE

Evening Post, Volume CXXIII, Issue 129, 2 June 1937, Page 21

BRITAIN'S TRADE

NEXT YEAR'S PROSPECT

LORD iV!CGOWAN ( 'S OPINION

(From "The Post's" Representative.)

LONDON, May I.'

"With; the world-wide teridency to rising commodity prices, a policy of rearmament, and with.no likelihood of any serious setback in general building activity, there seems to be no reason to anticipate any decline in 1937 in the general level of Britain's activity. It does not, of course, follow that profits will show the same tendency. We have to face notable rises in the prices of our raw materials, and the increases in wages will add substantially to our costs." This is the prospect for Great Britain in 1937 as expressed by Lord McGowan, chairman of the' Imperial Chemical Industries, who recently visited New Zealand, at the annual meeting of shareholders this week. After noting that "the rising trend in the price of raw materials and the additional cost of wages may shortly make it necessary for us to review our present range of selling prices," he continued:—

"While we have little doubt of the volume of home trade, we find it difficult to contemplate the situation in export markets with equal confidence. However, much as we may disapprove of economic nationalism, it is a tide we cannot stem. The world will always conduct a considerable volume of international trade, But, cojupled with that necessity, we must recognise and meet fon many years the natural desires, of great nations, and even.small ones, to use their powers in such a manner that their national life presents fairly well-balanced industrial and agricultural activities.

"It is /not unnatural!' that agricultural :;nations should seek to establish within their boundaries such manufacturing industries as appear suitable. National pride is not slow to foster this ambition. , With a greater home production of .foodstuffs and almost a stationary population, some of our Dominions —Australia and New Zeai land, for instance—may have reached their maximum export of primary products to this country. .-.They; 'them-, selves^may'.ih'ereforeAHaye : .td^rpduce : goods they now .-'buy J;; from* ;Great Britain. ' ■.'- / -''; ';' ,iiVJ;.;.:-^' ;

"If, in the consequential industrial development old haphazard methods go by the board, and a due, regard is paid to science and economics, these countries will enjoy a greater prosper^ ity over a wider front, thus giving thjenif a better purchasing power,-from wliich in:; due course r Great Britain ■^should 'benefit. As Ministers and- eminent.-bankers' ; that. it would be a mistake to abandon our strenuous efforts to maintain export trade, and take the easier", course, of concentrating entirely upon; requirements of domestic industry, we shall continue every effort to hold and extend export business. These ifacts, apart from liability to the. ne.Wj, .national defence contribution, lead -me'; to' a cautious view of" the outcome of the year 1937."