THE Wairarapa Age MORNING DAILY WEDNESDAY, MARCH 24, 1920. THE EXCHANGE RATE.

Wairarapa Age, 24 March 1920, Page 4

THE Wairarapa Age MORNING DAILY WEDNESDAY, MARCH 24, 1920. THE EXCHANGE RATE.

Quite the most interesting subject, so far as New Zealand and other parts of the British Empire arc concerned, is, at the present time, that of tho rate of exchange with the United Statos. It is difficult to discover tho mentality of a country which, having loaded itself with tho assets of the world, refuses to accept any of tho liabilities. Yet, this is what America is attempting to do, with more or less indifferent success. The view of the United States is expressed in tho columns of its newspapers, but we have perhaps to look a little further afield for the truth. The Vancouver Daily World, for example, says that tho British manufacturer does not complain if his most serious trade rivpl forces his pound down till it is worth only fourteen shillings. The stabilising remedy for declining cxchango values of British currency in the United States, or, in other words, "The Great American Hold-up," is increased production at Home and improved Imperial trade with the Dominions overseas. Views along this line were placed before the grc<xt manufacturers of' Great Britain by Mr. Oswald M. Smith, of Dunpdin, Now Zealand, editor of tho New Zealand Shipping Gazette. Mr. Smith informed p, World representative that "he had great assurances from no less than U5 great manufacturing concerns in Britain that, in order to get back quickly the tr&le seized by Americans in New Zealand while Britons were at war, these concerns, despite the enormous pressure of homo orders, would guarantee immediate delivery of any orders for New Zealand. These firms have capital ranging from one million to sevenniillion pounds sterling each. There is a new spirit in British overseas trading methods, suid Mr. Smith. Britain is a hive o± industry. The demands for war material now pver, British manufacturers are organising with characteristic thoroughness to bepome supreme in world trade. Business policies of firms which scarcely varied in generations are becoming drastically revised. These industrial magnates are not saying much, but thoy have no fear of any competition, ho added. Tho labour troubles are superficial. Employer and employee are getting down to an understanding on great basic principles necessary to mutual prosperity, and in other ways the superhuman efforts which won tho war arc oxerting their influence to win out in tho trade war. Massed production, better marketing facilities, better living conditions for workers, direct representation with the Colonies—all these movements aro being carried on with tenfold energy. The chairman at a conference - of manufacturers in England addressed by Mr. Smith said in part: "Wo are making every effort to place the good name of British industry on a pedestal that will brook no opposition from dumpers and price putters in the avenues of commerce." Mr. Smith is convinced the British manufacturer feels the day not far distant when ho will bo able to take any competitor's challenge. For several months now, said Mr. Smith, tho newspapers of the Old Country had been almost a quarter occupied with prospectuses of old companies seeking new capital for development, and new companies seeking capital for establishment. Over £126,000,000 had been subscribed in these directions. Also, many huge concerns which for decades previously were run in a happy-go-lucky fashion, paying handsomely, but not producing anything up to capacity, had been brought out by big combines which-intended producing to' the limit. This, continued Mr. Smith, is exemplified by the change of ownership of almost every cotton spinning firm of Lancashire. Mills with millions of splindles were being absorbed by a new management which added more millions and found employment for thousands more workers and markets fpr .the increased population. Up-to-date machinery, saving labour, millions more capital, massed production, had •revolutionised the steel industry, and British steel was leaving nothing undone to produce as cheaply and market as capably as competitors overseas do. Mr. Smith urges upon Canadians what will be hardly necessary to urge upon Now Zealanders, for their links with Britain have been so much more strengthened that every shilling spent on tho foreign product lessens that shilling's purchasing power in the country producing that product, so this is certainly bad business. Besides increasing the cost of Hying, it is depreciating tho

country's currency, and it is an unjust libel on the business integrity of Great Britain. These sentiments, Mr. Smith insisted, actuated the whole of manufacturing Britain, and she would win the esteem of the world's customers by faithful, honest, efficient service through goods at fair prices.