BIG STEEL COMBINE

Wanganui Chronicle, Volume LXXXIII, Issue 19722, 13 December 1926, Page 12

BIG STEEL COMBINE

THE CONTINENTAL MERGER. SHOULD BRITAIN JOIN? As' to the extent to which Britain should enter into European agreements the 44 New Statesman” says:— 4 4 There appears to be no great alarm in this country over the big steel combine' on the. Continent. Indeed, the combine, if it achieves the desired results, is more likely to lower them, and will thus do more good than harm to lhe, British export trade. It seems unlikely that British steel producers, despite Continental anxiety to secure their co-operation, will enter into the combine. They are more lively to stay outside, and endeavour to take advantage of the proposed reduction of production among their rivals. Their abstention may, however, make it impossible for the combine to work effectively, and is hound to limit its powers to raise prices. Dumping in British markets is hardly likely to be carried further than it has been already, and though there, will doubtless be a keen attempt to exclude British steel from the home markets of the combining countries, this is not very likely to have a serious effect. Even if British producers had been minded to join the combine, they could hardly have done so without first reorganising the industry at home. In each of the countries included in the new cartel, the home producers have been used to working toge’ther in common association. Hero there is no inclusive body capable of regulating output or prices for the trade as a whole. British producers could not well enter an international combination at present; but we shall not be surprised if the formation of the Continental cartel induces hem to adop new forms.” When the last mail left London, considerable interest was being shown in the proposed operations of the Continental steel combine, of which particulars have already been published. Week-end conferences of Anglo and German industrialists took place at Broadlands, the country home of Colonel Wilfred Ashley, Minister of Transport. a meeting which was hailed las an economic Locarno. Apparently no definite plans were formulated, but in a general exchange of ideas on the ' world’s industry the German and British delegates found themselves equally impressed with the bad position of trade to-day. Both were agreed, seemingly, that the capacity for output was rapidly outpacing that of consumption. This staggering and embarrasing fact was fully appreciated by both parties, who discussed at-length suggestions for its rectification.