MODERN BUSINESS

Evening Star, Issue 21753, 22 June 1934, Page 8

MODERN BUSINESS

THE ROMANTIC ASPECT ADDRESS BY MR GERALD LANE The young farmers who are attending this week’s educational and cultural course heard an interesting address this morning by Mr Gerald Lane (secretary of the Mosgiel Woollen. Company Ltd.), who took as his subject * The Romance of Modern Business.’ “ In order that you may have a standard for comparison, I wish for a few minutes to deal with some points of historic interest,” began Mr Lane. “ I am pleased to be able to tell you that wool occupies first place in the history of textile manufactures as regards antiquity. It was the first fibrous' substance utilised by man for the covering of his body, and textiles existed prior to the Flood referred to in the Bible. The Romans during their invasion of Great Britain established their own woollen mills at Winchester to provide clothing for their troops. In the early stages of the Saxon era it was ruled that the price of one sheep and one lamb must bo Is, and a fleece of wool 2d.

‘ As regards Great Britain, wool appears to have been the foundation upon which her commercial fabric has been built, and in all the records dealing with the industries of the earliest civilisation we find this delicate fibre holding a prominent position. During the seventh century the peoples of Flanders and Brabant were famed for their skill in the manufactures of wool and flax. British wool was greatly used on the Continent and commanded high prices; hut. as British textiles developed, restrictions were placed on the sale of British wools to foreign Powers. Britain at this time was commercially backward, but William the Conqueror brought textile workers from Flanders and greatly improved the trade. “ From the fifth'to the fifteenth century the progress of manufactures was slow, the tide of commerce, such as it was, flowing from east to west, but was a long time in reaching the shores of England. At this time few men found their way to greatness through the avenues of commerce, war being the chief wealth creator. It was due to the monks that humanising influences were brought to bear on-the then turbulent times, and manufacturing and farming pursuits were greatly fostered. “ So much for the historic side of manufacturing until wo arrive at our somewhat complicated modern system, with Great Britain in 1925 exporting £67,000,000 worth of wool and wool manufactures alone,” continued Mr Lane. “ Briefly, business rnay be defined as ‘ any gainful occupation of which profit is the, goal, and in which there is risk of loss.’ As a farmer becomes more involved in his pursuits as necessitating his intesert_ in accounting, management, salesmanship, and credits, then does he become a business man, A business, to be successful, must satisfy human wants.” Mr Lane went on to say that in New Zealand they had three classes of business men—the manufacturer, the wholesaler, and the retailer. The oldfashioned way of doing business was for the manufacturer to sell to the wholesaler, who, in turn, would sell to the retailer. But nowadays the wholesaler was, to a large extent, being cut out, with the result that there was an increase in the unemployment figures. The raanuacturer, whether he was dealing directly with the public or with wholesalers, had to be alert in the matter of studying market conditions, or else the sellers of the goods would find on their shelves too many articles which were not wanted by purchasers. Mr Lane said that, whether the time payment system was right or wrong, it was serving a public need, for it enabled people, such as young couples, to acquire necessary things for the household much more > readily than would have been otherwise possible. In dealing with business psychology, the speaker touched on the romance of the growth of the big chain stores started in America, and stressed the value of advertising. He then outlined the phenomenal growth of Henry r ord s works, showing how this manufacturer studied the requirements of prospective purchasers. After telling his audience something about labour-saving devices Mr Lane went on to deal with stock records, stating that this work constituted a big problem with firms whose aim it was to get the checking strictly accurate. The task of budgeting was an important part of business life, as were those of planning and banking. In planning one had to study the market for perhaps a year ahead. The present banking system was really initiated in 1640 by Goldsmith, who started the system of"note'issue, the Bank of Eng-

land being founded in 1694 by a Scots* man named Paterson. Another interesting business concern touched on by the speaker was Lloyd] s* which, he said, was founded on practically an accidental beginning in a coffea shop in 1692, a few business men al that time getting together and, without any very serious intention, working out what was the. nucleus of the present tremendous organisation. In conclusion Mr Lane outlined some of the events in the lives of several great) business leaders of the world,_ taking the opportunity of emphasising the virtues of far-sightedness, determination, and courage. (Applause.) After a number of questions had been' answered Mr Lane, on the motion of Mr C. Rowley (Hawea Flat), was ac. corded a hearty vote of thanks.