WELLINGTON NEWS

Hokitika Guardian, 29 March 1928, Page 4

WELLINGTON NEWS

IMPROVING BRITISH TRADIJ

(Special to “ Guardian ”•> WELLINGTON, March 20. The -state of Britain’s foreign trade, whether it he active or depressed, is of considerable importance to us because we market from 80 to 85 per cent of our export products in the Mother C.'oumr.y. When British trade is flourishing it must he reflected in our economic condition. A big and a profitable trade means greater spending power and less unemployment. According to the most trustworthy information British trade is steadily improving. The lending hankers* of the ['idled Kingdom, who speak with care and caution, have given it ns their considered opinion that the trade outlook is very favourable. Thus the . hairman of the Westminster Bank Mr R. U. Tnimanti in a comprehensive survey of the position says: “ One vital thing that can safely be said (bout 1927 is that the recovery from the set-hack of |i!2ii has been sufli•ientlv quick and sustained to lie in itself a testimony to the economic stamina of the country. To-day we may. say that the business f the country has recovered beyond [he level it bad reached before the coal iispute began and that the curve ol industrial activity is still trending slowly upward. The country’s economic activity is greater to-day than in nv year since lfie post-war slump, and s probably greater also than in the active pre-war year 1913.” Week by week table messages inform us Unit .tnomploymenl is decreasing, and that in itself is the best evidence of the improve deeonomie condition. Many of Britain's older industries are still much depressed, such as agriculture, coal mining and cotton. Erilaiii. however, aas gained in newer industries and imoiig these are the electric and the motor <ur industries and chemical and riliiicial silk manufacture.

Chemicals no doubt have been a long •tasblished industry in the country, but it has undergone such a great ie-u-ganisation that it almost amounts to a re-birth, and it is day by day [flaying a more and more important role in the industrial life of the country. The Chairman of Barclay’s Bank (.Mr F. G. 'Uoodenougli) in his review said : "Looking to the future there is every ground for confidence. Both industry and ■rade in this country are showing indi•ations of a substantial revival at- the present moment, and although there have been similar signs of improvement it intervals for the last few years, which proved, however, to ho only temporary, yet on each successive revival the duration has been somewhat extended and was only rut short in 102 U by the coal dispute and labour difficulties.

Except for tin? fact that competition anil the rules of supply and demand must necessarily affect future values, the continuous process of stabilisation of currencies and world prices which is taking plate affords a reasonable expectation that the trade improvement which we now are experiencing may ho more permanent. The recent recovery in the shipbuilding industry seems to point the way to improved conditions in many directions. .With respect to the shipbuilding industry "Lloyd's Register" shows that the tonnage building at the close of the past year was greater than for some time past. The shipbuilding industry may be ■'■hissed as a key industry and activity hi the shipbuilding industry means activity in numerous other industries. Sir Harry Goschcn. Chairman of the National Provincial Bank, in reviewing the trade situation, said: " ‘Looking back over the period under review we (tinnot fail to recognise that an in.Toa.se in the volume of business throughout the country is apparent. Thu tide lias turned, and is moving steadily towards better times. Indications appear to (joint to the fact that people as a whole have money to spend. We sec theatres, kinemas and other places of amusement crowded with every evidence of prosperity. Retail establishments never appeared to be more attractive nor better supported by their customers, and, indeed, it may he justly claimed that the general standard of living seems to he higher and implies increased expenditure and we may assure an increased earnings.”

The Board of Trade makes an annual investigation anti deals comprehensively with the visible and invisible exports and imports of the country, and it estimates that for 1927 the net surplus or trade balance amounted to £90.000 as compared with a debit balance of £7,000,000 for 1920. With all this evidence of improvement in British trade it justifies us in taking an optimistic view of our own trade, for Britain’s prosperity is bound to be reflected in New Zealand and other parts of the Empire.