TRADE OUTLOOK

Wairarapa Times-Age, 21 January 1939, Page 5

TRADE OUTLOOK

HOPES OF IMPROVEMENT IN BRITAIN FALL IN PRICES CHECKED. RECOVERY ONLY IMPEDED BY UNCERTAINTY. (British Official Wireless.) RUGBY, January 19. Mr R. S. Hudson. Parliamentary Secretary for Overseas Trade, surveying trade prospects, said that unless war supervened the trade cycle now seemed definitely on the upgrade. The only thing that was really impeding recovery was the continued international uncertainty. The fall of prices seemed to have ceased, and many of Britain's chief customers were beginning io get better value for their products. Another hopeful sign was the high level of retail trade last year. It had increased by 7 per cent in 1937, compared with 1936. and 7 per cent in 1936, compared with 1935. In 1938 it continued to rise, though only lyThe wages level was maintained and the cost of living, after a rise, had started to fall again. The improvement in the United States of America, on which people in Britain were very dependent, also seemed to be real. i BRITISH INDUSTRY ACTION AGAINST ABNORMAL COMPETITION. URGED BY FEDERATION OF INDUSTRIES. By Telegraph—Press Association—Copyright. LONDON, January 20. The Federation of British Industries has sent a memorandum to the Board of Trade urging stronger Government action against subsidised competition from other countries, specially Germany.

It points out that the board’s suggestion for an industrial agreement between competing countries will never achieve the object desired unless the Govrnment possesses powers enabling it to penalise any country refusing to make a reasonable arrangement with British exporters.

It adds that abnormal methods of competition on the part of foreigners, specially Germans, may well necessitate Britain adopting wide and unprecedented defensive measures.

UNITY ESSENTIAL INDUSTRY MUST SPEAK WITH ONE VOICE. POSITION ALREADY MUCH STRENGTHENED. (British Official Wireless.) (Received This Day, 10.20 a.m.) RUGBY, January 20. The Parliamentary Secretary to the Board of Trade (Mr R. S. Hudson) in a speech, repeated his conviction that the only way of’meeting competition of the kind British industry was now encountering was co-operation within industry itself, so that British traders could

speak with one voice. “It is of no use blinking at the fact that some of our foreign competitors have their hands immensely strengthened by the intervention of their governments in economic matters,” he said. “Whether that intervention is theoretically desirable or in the long run economically sound, the fact remains that in totalitarian countries industries are organised to speak and act, not only individually but nationally. Against competition of this kind, the individual trader of this country is powerless. Within the last few weeks we have made considerable progress in getting various important industries to organise in a united way. When, in the next few days or weeks, we come to negotiate with the countries concerned, we shall be in a much stronger position than we were before. We were able to get our our industries to speak with one voice. Where our industries have been organised for export, encouraging progress has been made and I hope it may prove possible to arrive at agreements with our competitors to avoid uneconomic forms of competition. Once our industries are organised they can be assured of the fullest help from the Government.

“Ithink that if we succeed in avoiding war for the next eighteen months,” the Minister added, “we shall have no reason for undue pessimism in regard to our trade. I am hot concealing from you the magnitude of the difficulties of the situation and of the new economic problems continually arising, but no doubt our competitors are experiencing similar problems. What we have to do is to show our traditional initiative and enterprise in devising new methods of increasing our export trade in new conditions of international competition.”