A.—6.

figures of what would be the effect if America increased by 5 per cent, the proportion of the total production which she exports :—

Exports of United Kingdom and United States of America in 1924 showing a Supposed Increased Export from the United States to the Extent of 5 per Cent, of her Production.

I would like to stress one fact, and that is that if America, who to-day is exporting only 4-1 per cent, of her manufactured machinery, increased that by 5 per cent, to 9-1 per cent., it would mean that she would be exporting £60,000,000 worth of machinery, against £39,000,000 worth which is exported from Great Britain. I think that fact is one we have to bear in mind. I would again stress that what we are trying to see to-day is where the markets for Britain in the future are, since the development and progress of the Dominions —certainly of Australia—depend upon the purchasingpower of Britain, and that purchasing-power can only be ensured if Britain is maintaining her commercial position, if her people are in employment, and if her purchasing-power is increasing in relation to the increase of the production that we have to dispose of. Competition Irom European Countries. Then there is the position in Europe. There are many significant things with regard to it, but the one fact that is driven home is that there has been a very big expansion in the export trade of most of the manufacturing countries of Europe during the last three years. Germany, I have indicated, was not on a really competitive basis in 1923, but her trade has expanded greatly, and, to give one example, her export of iron and steel has increased since 1923 by over 100 per cent., and, though her textile trade is not yet re-established, in machinery and metals she is regaining her pre-war position. There are a number of significant facts with regard to France, Italy, and Czecho-slovakia which I will not delay to give, but there is a table which I would like to put in.

Export of Manufactured Goods from various European Countries.

This lias extraordinary significance with regard to European trade. I will refer only to one amongst the countries I have taken —namely, Germany. In 1923 she was exporting manufactured goods to the extent of £270,000,000 ; in 1925 she exported £326,000,000, an increase of 20 per cent. Britain's figures in 1923 were £579,000,000, and in 1925 £616,000,000, an increase of 6-3 per cent. only. The point I would stress is that in the European market all these competing countries are extending their trade and becoming much greater competitors with Britain. It may be said that France, Italy, and Belgium have depreciated currencies and that has affected the position, but the same thing cannot be said with regard to Germany, the Netherlands, and Czecho-slovakia in the past three years: their increase cannot be explained away by depreciated currencies. Nor can it be explained by saying that Britain, having returned to the gold standard, has placed herself at a disadvantage in competition! Taking Europe generally, the position since 1923 has changed in this way : In 1923 Britain, owing to the temporary eclipse of Germany, had a greater share of the market in Northern Europe than she had before the war, but, whereas her export trade to Europe in 1923 was £250,000,000, in 1925 it had been reduced to £228,000,000, notwithstanding the fact that there had been a considerable expansion

66

United States of TX . United States America Export , nl e . 1 es 0 United Kingdom of America as recorded. 1C j Article. „ _ _ . , with additional Export. Export as Estimated per- - . recorded. centage of p • per cen . o n j , ■ rroduction added. Production. Iron and steel .. .. Tons 3,851,435 1,805,000 5-0 3,610,000 Machinery (a) (b) .. .. £ 39,495,176 27,000,000 4-1 60,000,000 Motor-cars.. .. ..No. 15,659 178,730 5-1 353,903 Cotton manufactures (a) .. £ 199,162,166 24,500,000 5-6 46,500,000 Woollen manufactures (a) .. £ 67,797,314 1,300,000 0-45 15,600,000 Wearing apparel (a) (c) .. £ 18,387,000 3,000,000 0-5 33,000,000 Boots and shoes .. .. Pairs 11,973,336 8,504,000 0-27 ; 24,165,000 Rubber tires .. .. £ 2,729,838 4,500,000 3-3 , 11,300,000 (a) 1923 figures throughout, as United States of America production figures for 1924 are not available. (b) These figures exclude agricultural, dairying, and electrical machinery. (c) Excludes knitted goods and boots and shoes.

Percentage i 1923. j 1925. I Increase, 1925 over 1923. (£1,000.) (£1,000.) Germany .. .. .. .. 270,858 326,599 20-5 Netherlands .. .. .. 41,905 52,091 24-2 Belgium .. .. .. .. 60,938 79,396 30-2 France .. .. .. .. 214,403 262,974 22-7 Czecho-slovakia .. .. .. 41,434 71,006 71-5 Great Britain .. .. .. 579,950 616,279 6-3