TRADE OUTLOOK.

Taranaki Daily News, 21 January 1921, Page 5

TRADE OUTLOOK.

GROUNDS FOR OPTIMISM, approaching stability, MORE ATTENTION OVERSEAS. By Telegraph.—Press Assn.—Copyright. t- London, Jan. 19. Mr. F. Kellaway (Parliamentary Secretary to the Department of Overseas Trade) has issued a statement ifi which hei says that, despite the present depression, there are grounds for restrained optimism regarding the trade _ outlook, chiefly because we are leaving the period of abnormal values and finding real values leading to stability and progress. He emphasises the point that many of those voicing Labor aspirations viewed the situation superficially in claiming that the increased production preached since the war had led to over production and consequent unemployment, the fact being that production was still unequal to the world demand, but many countries were unable to provide the goods or services necessary. A shrinking of employment and a scarcity of profitable orders succeeded the boom that followed immediately upon the armistice, but the British credit system had weathered the worst of the storm, demonstrating its solidarity in a striking manner when collapse seemed possible. ; The coal output had suddenly overtaken the demand, which was lessened by the slump, but it was improbable that the American invasion of European markets would continue permanently.

The international credits scheme was a step in the right direction, but it was not likely to be ready to operate in time to relieve the present depression. Meanwhile Mr. Kellaway recommended the fullest use of the department’s export credits scheme. Discussing the trade outttook, Mr. Kellaway said that it was necessary to recognise that, while the values of ex*ports in 1920 showed a magnificent leap, the quantities had shown a big leeway compared with 1913. The goods exported from Britain in 1920 amounted to only 54 per cent, of the quantity sent out in 1913.

He hoped the manufacturers, despite the passing depression, would courageously prepare for an increased overseas demand, probably within a few months, particularly from the Dominions whose markets, serving wealthy populations of enormous purchasing power, offered Britons substantial advantages over .their competitors. It was not right that the United States should provide three-quarters of the Canadian imports. British exporters were hampered in Australia and New Zealand owing to .the exchange deadlock. Whatever reinredial measures were taken by the Governments, he feared that a substantial improvement was unlikely before March, when wheat would exert a beneficial influence.—Aus.-N.Z. Cable Assn*.. \ ,