WAR AND TRADE.

Taranaki Daily News, 1 September 1916, Page 2

WAR AND TRADE.

•HOMip MANUFACTORIES' 4 lIANDIi CAPS. UNITES STATES IMPROVING THE SHINING HOUR. (From Our Own Correspondent) .■ Wellington, August 29. Interesting and important comments upon New Zealand trade during the war period are contained in a report prepared for the Imperial Government by Mr. W, G. Wickham, late 'British Trade Commissioner in this country. The document makes a general survey of the conditions prevailing in 1815 and diseases the disabilities indicted upon British manufacturers by the war, in comparison with their foreign competitors, The organisation of the industrial forces of the United Kingdom for the manufacture of munitions, and the prohibition of export in some lines, handicapped British firms in maintaining their New Zealand trade, and Mr. Wickham emphasises the fact that foreign countries are taking advantage of the opportunity thus offered to them. "The war has effectively stimulated trade with America and Japan," he says. 'From the former, travellers in searck of business and offering new agencies have come to New Zealand in unusual numbers. . . . . Almost all orders for electrical machinery from public bodies and Government have during the year gone to America, A large part of the trade in motor-cycles, -hitherto an entirely British preserve, have gone across the Pacific, while orders for motor-car; which could have gone to the United Kingdom and other parts of Europe have similarly been.shared by makers on the American continent. also was early in the field.' •• Importers have been inundated with samples and offers of business in all clases of textiles, fancy goods, glass, china, earthenware, leather good, etc., particularly in goods previously supplied from Germany." The Trade Commissioner has no doubt that the position of the British manufacturer in the New Zealand market is ' being prejudiced by the activity of the foreigners -at a time when the workshops and factories of the United Kingdom aro concentrating their efforts on the winning of the war. "The facts I must bo faced and as far as possible made known," he writes. "Some importers have transferred their custom to foreign countries in a purely commercial spirit, buying their requirement? from the most obvious and cheapest available source. Others, again,, ha-ve done so from sheer necessity and with the utmost reluctance. In either, cfise they have made the acquaintance of new-sup-pliers, and have at least temporarily severed eld connections and established new ones. The leeway which will have to be made up after the war before British manufacturers can get 'back even their normal pre-war share of the trade of the Dominion will be serious, and it behoves them to do all in their power now to minimise this."

The British manufacturers, in the opin- < ion of Mr, Wickham., can assist thera--1 selves materially by letting the people of New Zealand know the actual facts of the situation and so'appealing to the patriotic sentiment that the Dominion has shown on many occasions. The firms now occupied entirely with the production of munitions, and so precluded from exporting, should make known the fact to their New Zealand customers, not only to importer's but also to consumers. "Those manufacturers whose goods are still available, but whose prices are seriously enhanced, should take care to give ample explanation of the reasons," adds Mr. Wickiiam. "Unreasonable buyers and trade rivals between them have done ample mischief already in explaining advances in prices as 'extortionate,' 'trading on the patriotism of the Dominion,' etc.. and it is a matter of importance that manufacturers should give the actual facts in as much detail' as possible; for example, the actual advance in price of raw material, number of staff enlisted, increased freights, war taxation, and so on. . . . Few people not directly connected with military supplies realise in the least the multiplicity and variety of things required for the Army and Navy." The importance of the point raised by Mr. .Wickham is emphasised by information which is Ending its way into commercial publications in the United Kingdom. It is a fact that many British manufacturers, who under normal conditions would be exporting goods to New Zealand ami other parts of the Empire, have sacrificed .their oversea trade for the time being in order to accept orders from the War Council at a fixed percentage above the cost of production. The profits on these war orders are cut very fine, and the firms would be much better off in a financial sense if they, served their ordinary customers. But they willingly play their part in the mobilise' tion of the industrial forces of the nation for war. The case might be cited of a big toyifactory, which is devoting all its plant to the production of parts of shells. Meanwhile foreign manufacturers are bidding not merely for the toy trade that used to belong to Germany, but also for the share enjoyed by the United Kingdom. The British firm owning that toy factory is not compelled to manufacture munitions; it has simply enlisted itsell for national service, and must count upon the patriotism of its customers for the iuai"l.ciw)'ce of its trade • connections.