IMPROVEMENT IN BUSINESS

Nelson Evening Mail, Volume LXIV, 19 January 1931, Page 8

IMPROVEMENT IN BUSINESS

BRITAIN’S POSITION

NO SENTIMENT IN BUYING . Considerable evidence of a business recovery in England was found by Mr E. J. Parrott, of Christchurch, who returned last week from a trip abroad. Some of the manufacturing centres, he said in an interview with “The Press,” were very much better off than on his last visit to Great Britain a year before. He mentioned particularly the increased activities of the Leicester mills and the motoring industry. “There is no doubt that, on the whole, business in England is not as bad as it appears on paper,” said Mr Parrott. “There is a lot of unemployment, but in travelling one comes jinto contact with plenty of people spending money, and the hotels are well patronised. Little poverty is lo be seen on the streets, although there is actually, of course, a great deal of it.”

WOOL AT ITS LOWEST With Mr Bernard Tripp, Mr Parrott thinks that the price of wool has reached rock bottom. Stocks in the manufacturing districts, he said. were never lower than at present. The mills were working from hand to mouth, and would soon have to replenish their stocks. Further, wool at its present low price was pushing substitutes off the market. Many artificial wool companies had been forced into liquidation. “I honestly think that in regard to England our wool has touched bottom,” said Mr Parrott. The British farmers, he continued, had had a very bad time following an excess of wet weather, which prevented them from harvesting their crops. In fact, agriculture in England had never been in a worse state. Production was fair enough—he saw some good crops—but the price was too low. When he left London the farmers’ wheat was practically unsaleable, for Russian wheat was being dumped,on the market at prices under-selling the British.. The Russian wheat was dry and in suitable condition for the mills. FOREIGN PRODUCTS Mr Parrott has been very disappointed to find that the British public seem to have no sentiment in buying. Although the people of the Colonies were always being told to “buy British,” the British people, he found, did not make their return by buying within the Empire. They did not seem, to care, for instance, if they bought Danish butter or New Zealand. Since fully 40 per cent, of the goods displayed in England were of foreign manufacture, their apathy had a serious effect on Empire trade. „

“From what I have seen, of New. Zealand since my return, I think she is on a much better wicket than any other. of the Dominions,’’ he continue. “America is in a had way, Australia in a very bad way. While in Australia the. country itself has never looked better, its financial position has never been worse. The chief difficulty is that the people will not realise what serious troubles they have to face. At present, if the policy of inflation continues, there seems some danger of the value of the pound falling almost as the value of the franc did, not many years ago. Yet the people can’t realise'it: they sav ‘Give us. time,’ and expect everything to be all right.” PROSPERITY OF NATAL Mr Parrott was astounded to find that drafts for taking money out of the country were being refused by the Australian banks unless for legal or business purposes. “We have the resources in New Zealand,” he said, “and with judicious government I think we can pick up and restore prosperity.” Of all the countries which he visited the prosperity of Natal impressed him most. Business there seemed quite normal. for it was governed by the mining industry in gold and precious stones—products of which the world value had not fallen.

Since his retirement from farming Mi Parrott lias been travelling a great deal in all parts of the world. He lias passed through the Suez Canal no fewer than twenty-four limes already, and expects to return again to England before very long.