The Daily News. THURSDAY, JUNE 1, 1922. BRITISH TRADE.

Taranaki Daily News, 1 June 1922, Page 4

The Daily News. THURSDAY, JUNE 1, 1922. BRITISH TRADE.

As the practical centre of the world’s trade, Britain denotes with unerring exactitude the general condition of trade, industries and commerce, and the state .of trade in the Motherland must always be of interest to the Dominions and the rest of the Empire. It is, therefore, satisfactory to note from the latest cabled news that there are increasing signs of trade revival, notwithstanding ad-! verse influences like the Irish unrest, labor difficulties, the >complieated European political situation, and the uncertainty regarding Germany’s reparation payments. The direct cause of this welcome revival is attributed to the cheapening of money and increased activity in the shipping trade, denoting a much greater inquiry for stocks, and as this movement is reflected in America there are good grounds for the assumption that it betokens a healthier state of affairs than has been the case for some time past. The most striking feature of the British Board of Trade returns for April was the small adverse balance of trade, amounting to only £865,612, exclusive of imports and exports of gold and silver which, if taken into account, would have shown a balance on the right side. How significant that achievement is may be deduced from th- fact that, Britain’s adverse balance of trade in 1913 amounted to nearly one hundred and thirty-four millions, while in 1920 it had grown to three hundred and seVenty-five and a half millions. It would almost seem as if there had been the waving of a magician’s wand in the first three months of the current year, as the result of which this adverse balance was practically extinguished. So considerable an improvement in this direction is of immense importance, not only because it helps to simplify the question of interest and amortisation charges on Britain’s external debt, but also because it will enable the Motherland, with less risk of dislocating exchanges, to extend still further facilities to foreign borrowers on the London market. There is, of- course, no assurance that these favorable conditions have that permanency which is so essential to economical rehabilitation, but it is gratifying evidence that the corner has been turned and that the future may be faced with confidence. As producers. whose goods find their way to British markets, the Dominions are keenly interested in the expansion of the Motherland’s trade, for the greater that trade and the more active are the industries, the better are likely to be the prices received by overseas producers. According to Barclay’s Monthly Review, there is evidence that, in spite of the depression of the past twelve months, the general trend of trade is in the right direction. At the same time the question of values of British exports has to be taken into consideration. In this connection it is satisfactory to overseas consumers to know that while the volume of British exports has increased by something like thirty per cent., the prices have declined. Apparently the chief need at present is encouragement of confidence in dealing. It is claimed beyond all doubt that the revolt from the high prices of 1920 was one of the contributory causes of the subsequent depression, and almost certainly the abstention from buying was greater than was justified by the actual curtailment of purchasing power. The abnormal prices acted as a scare at a time when money was not only scarce, but its purchasing power much reduced. Happily that stage has passed, but the moral remains. Prices muct be brought within the reach of the people, and to do that the cost of production must be lowered. It is considered that if the conviction is once established that prices have touched bottom, purchases will be stimulated. At present there is no definite data on which that conviction can . be based, though it is inferred that

the upward trend in the United States may influence price levels in Britain. The fact that unemployment is diminishing is certainly a hopeful sign, even though the figures are still appallingly large. It is obvious, however, that before trade can be restored as a whole, there must be prosperity in Europe. The agreement arrived at over Germany’s reparation payment should be a factor in stimulating trade. The main problems are finance, falling wages and the cost of living. Little by little these may be solved, but it must be some years before trade regains its full power and strength. Meanwhile it behoves the statesmen of all nations to exercise the strictest economy and prevention of waste in order that all the available money may be put into circulation for the benefit and welfare of the people.