The Daily News WEDNESDAY, APRIL 5, 1922. THE OUTLOOK AT HOME.

Taranaki Daily News, 5 April 1922, Page 4

The Daily News WEDNESDAY, APRIL 5, 1922. THE OUTLOOK AT HOME.

The latest review of British trade strikes a quietly confident note. Markets are slowly recovering, the stock investment market is buoyant, and money is becoming easier. The belief is expressed that if the labor troubles are soon settled the tide will have turned and the outlook become brighter. English papers to hand by the last mail contain reports of the speeches of the chairmen of the great hanks, and as usual they give a good insight into both financial and economic conditions. On some points there was practical unanimity among the bankers—the extent and severity of the trade depression, the urgent need for a reduction in the national expenditure, the deplorable economic conditions in Europe, and the indications of a better feeling with regard to the Labor situation. As regards the first of these points there was little to choose between the tones of emphasis used about the past trade depression by the various bank ehairmen, and all the speakers were similarly sure that the continued extravagance in national expenditure has been an important contributory cause of the depression. Equal stress was laid upon the effect of the war on the economic conditions of Europe as a whole, so that, as Mr. F. C. Goodenough, the chairman of Barclay’s Bank, said: “At present it is computed that the total volume of international trade does not exceed one-half of its pre-war volume. Tn these circumstances it is easy to understand why industry has received a severe set-back and is depressed, and why it is essential to make a determined effort to restore the financial stability of Europe as a first step towards better markets.” When dealing with the trade depression itself perhaps the strongest note of hopefulness was struck by Sir Harry Gosehen, who. in the course of his address to the shareholders of the National Provincial and Union Bank of England, said: “I cannot help feeling that there is some break in the cloud of depression which has been hanging over our trade for so long, and that the worst of our troubles are over.” It was reserved, however, for Mr. McKenna, chairman of the London Joint City and Midland Bank, to insist more strongly than anyone that economy in the national expenditure was the only hope of any real improvement in the financial situation. Mr. McKenna’s views on this matter command attention, not only because he happens to be an ex-Chaneellor of the Exchequer, but because for the last three years he has been insistent both at the meetings of his bank and on other occasions in maintaining that the only safe method of deflation is to be found in the deflation arising from the redemption of debt through actual Exchequer savings and in increased production, due to the resources now utilised for public unproductive expenditure being set free for industrial expenditure and fresh production. A particularly telling part of Mr. McKenna’s address was that in which he showed' the extent to which the industrial and financial situation was prejudiced by the disregard alike by Government and Labor of certain economic facts and principles. Thus, in its tradiness to reduce the national expenditure, with a view to relieving industry from the burden of excessive taxation, the Government had shown itself’ incapable of discerning the true path which leads to the financial welfare of the country as a whole, and therefore to the prosperity of the Exchequer itself. Having enunciated that fact, however, Mr. McKenna, with adroitness,’ applied the same friendly reproof to those representatives of Trade Unionism who persist in believing that the true interests of Labor are served by restrietion of

output. Examining this fallacy, the chairman of the London Joint City and Midland Bank explained in language easily to be comprehended by the wage-earners themselves that in thus endeavoring to restrict output, Labor was inflicting punishment upon its own class and that the prosperity of Labor even more, perhaps, than of Capital, depended upon enlarged and cheapened production. A further point on which, however, there was also unanimity between the chairmen of the leading banks related to the indications of a better atmosphere in the Labor world. Underlying all the speeches of the bank chairmen, however, was a clear recognition of the extent io which the whole trade position in England must necessarily be affected by the present deplorable conditions on the Continent of Europe. On this matter, Sir Richard Vassar Smith, chairman of Lloyd’s Bank, was particularly outspoken. While in no way belittling or prejudging in advance the impending Economic Conference in Genoa, Sir Richard emphasised the regrettable fact that the sound recommendations of the delegates to the Brussels Conference more than eighteen months ago, though universally approved by the banking and business world, had borne so little fruit. “One would have thought,” he said, that the unanimous advice of delegates representing thirty-nine countries, whose inhabitants comprised three-quarters of the world’s population, would have demanded immediate attention and action. . • • But what do we find? Despite an appeal of bankers in the United Kingdom in May of 1921, resolutions passed at a public meeting of business men at the Mansion House in the same month, the same questions are now being debated at recent meetings and conferences as ,if they were quite-novel and only now demanding attention.” Moreover, as Sir Richard affirmed, we all know what are the chic" measures required in more than one country —including our own—to bring order out of chaos, namely, the curtailment of national expenditure, decreased taxation, and the cessation of State interference with commerce and industry. Most ot these remedial measures might be applied immediately by the respective Governments with regard to the affairs of their country without a pilgrimage to Genoa.