ANOTHER SLUMP?

Waikato Times, Volume 121, Issue 20278, 21 August 1937, Page 5

ANOTHER SLUMP?

SLACKENING ANTICIPATED. but nothing lint: is>3l. BRITISH I'RKMIKIVS VIEW. (From a Correspondent.) 1.1 >.\'Oi >N, .1 uly 10. What will 1 f* tin' elT**'*t upon tra.l.* | peri''il Of Mrilish !«•;»I lilitlll* Ml | r , ;u .| |( . s ( >. 11111 • 11't i•> ti • W il! there !"• a n o I hop slump? Tims.' .pieMions wen' . referred 1.. !.y the Prime Minuter. Mr | dressed supporters of Hi.- \ati.ui.li I..i\*• tilri!• *nt at Ho* Mhert Hall. Of course. we know." hr said. “tll.it s. imh'Hi iMk.- f,. | I ■ its 111 aI• •■. Hut 1! v .1.., .1, ».■ Mli'lVlVd l.om in i ' A: that ini!-' we had not recovered |

from 1!io tremendous destruction of •apilal whit’ll I link place during the • rent War. ami our unprotected marvel was then a dumping ground for he surplus of the countries who found lionise I \ e-s unahle to s“ 11 their goods m their own markets. It must not he. bought for a moment that the (internment is not considering even now a Mai measures it should lake by way if public works or otherwise to provide emjdo\men! when the output of >ur factories begins to be relaxed. The Best Provision. “but nothing in the way of public a "rks that this or any other Clovernnent could do could provide more ban a mere fraction of the effect chicli would he produced by a comlarativel.v small variation in the genial trade ~f the country, and therefore the best way in which we can rovide against a slump is to encourage md assist mir traders to develop new narkets. and b\ research and by the •e cjuipment of their factories to reluce their costs." !! is a well known fact that the drilish ('lovenunenl is considering dans to safeguard the trade position Adieu the rearmament programme has "‘«'u completed. one of the prinei»a 1 objects in view is to ascertain ' ■l'd through trade agreements pin and foreign countries. Meanwhile trade returns continue > Lm satisfactory, and there is l very

confidence that the present boom conditions will continue over a considerable period. None the less, the r.overnment Is thinking ahead, and experts are now making a close analysis of trade prospects over the next few years to sec how far Ihe Home an I export trade can lm increased. The *lovermneiit has attached very little importance to a system of public, works as a faelor in assisting irade and employment, it is. in fad. looking towards more permanent measures through new outlets for Briti-sh products. Efforts to increase, overseas trade are assisted by the rise in the last two years in the price of primary commodities. This in turn is improving tlm purchasing power of some of the countries which, in former years, wore Britain's best customers, aiid f >r this reason the prospects id' trade expansion are more hopeful. Discussions Making Progress. Tim discussions which are proceeding with a view to formulating an economic policy among Ihe principal nations are, it is understood, making good progress, but it is not expected that a lormal conference of representatives of ihe nations concerned can !»•• ligation which ,M. Van Zeeland, the Belgian Prime Minister, is under-l-'khtg co\er a very wide Held, ami if ami new ee.inmiiic jirogramme i> to large measure of agreement should

first bo obtained on prneral principles. As a result of liis inter views with Mr Neville Chamberlain, the I'rimo Min is I or, ami Mr Anthony Kilen. Ih” Foreign Sorrelary. M. Van Zeeland is to ronliiuie liis in<|Uiries amoinr leading statesmen in oilier reunifies. He lias rereived considerable.! encouragenient lo tn ahead both in his talks with the Mrilisli Covorniiioiit mid in his prior ronversalions with President Ho,.sevelt and Mr Cordell Hull. I nited States Serretarv of Stale. The prospects for holdini: a ronferenre are, it is said, distinctly hopeful. It is generally emphasised that Hie moment political relalions—especially Kurope—ran he said lo have taken a real I urn for the heller, the way is practically open for an effort lo face the problem of getlini; rid of the more hind,rim: forms of trade reslrielions which have up during the , World trade recovery has not yet proceeded far. hut in Hie past year the movmeut has hem positive, it is pointed out by the Financial Times, in a review ~ T the position, Mho economic; position is in itself sutllcicntiy | ward by some, that trade forces may I yet ! ,, ad the way to political appeasement rather than wail upon Hie ,»111 - cone of the halite between rival ideologies. \s Sir .losiah Stamp pul Hie matter the other day. the psyeh.dmri eat baekuroiind is Ilia.l tin* count ric.-* am positively tumbling over tiiem

| selves to remove restrictions. The dissipa I inn of the wheat surj plus ami the advance in the prices of I i:rain and oilier primary commodities have meant ahilily to pay debts, resloralion of credit, and a higher purchasing power. These factors make, for a <|uiekeniug of the iidernational exchange of £oods. Hy entering into the tripartite monetary agreement of September last., it is generally agreed lliat France, ilie United Stales and Great Uritaiu have given evidence of their desire to end tlie sterile period of aggressive nal io nn I ism. Part of the United States. At the same time it is believed tint the outcome of the project for a trade I understanding with the railed Mates must play an important part in paving ‘ the way for a more widespread agrecl meat. The Dominion representatives Mr \V. Nash, have gone home to place the facts before their conslilmills. "1 util they have had lime t" weigh up tlu; posit;.m from ttic broad and permanent as well as I Mr* immediate ami sectional point of view, it is idle to “\pcrl useful action," -says the Financial Times. "Withoiil accepting that there is anv neress.my antagonism between the principle of Umpire preference and an Anglo-American agreement towards freer trailing, the task of Dominion Ministers on this luestioii is admittedly nut an easy ne.

“There no need to go Into detail | concerning the "ays In which new trade pacts would he advantageous. There is not a market in the world which Britain should neglect. There which hoth politically and economically lie nearer to her interests thin others. Politically there is no escaping the claim, both •sentimental and strategic, of the Dominions, hut there is a danger here of making her Imperial agreements 100 exclusive. The undoubtedly form a scuf-suflleieiit. bloc in time of need, but self-sullleieuey is the negation of trade and is a concept imposed entirely 1 by political, not by economic, ends. Con>o«iuently if world trade is to be genuinely more free, the Imperial ties must not he accentuated more than is absolutely necessary. Broadly speaking, the markets which "ill prove most valuable to British interests are those of the primary producing countries. These have passed through a depression of terrible severity, and with the rise in the prices of their produce they are now beginning to find themselves able to purchase the many things of which they have been deprived for so long. 'Their era of prosperity is only ju»t beginning, and the cultivation of their markets should giv6 a substantial and lasting return to the British manufacturer.”